A bout of volatility was witnessed as key benchmark indices hit fresh intraday low in mid-afternoon trade as weakness in European markets weighed on sentiment. The barometer index, the S&P BSE Sensex, was down 75.53 points or 0.37%, up close to 15 points from the day's low and off about 135 points from the day's high. Index heavyweight and cigarette major ITC dropped in choppy trade after reporting strong Q4 results. Another index heavyweight Reliance Industries (RIL) extended intraday losses. The market breadth, indicating the overall health of the market, was negative.
Cement stocks rose after the Competition Appellate Tribunal (COMPAT) today, 17 May 2013, passed an order granting a stay on the penalty imposed by the Competition Commission of India on 11 cement firms on allegations of cartelization.
The market reversed direction after a positive start. The 50-unit CNX Nifty reversed direction after hitting over 30-month high. Key benchmark indices were a tad lower in morning trade, having alternately swung between gains and losses so far during the day. The Sensex hovered in negative terrain in mid-morning trade. The market trimmed losses after hitting fresh intraday low in early afternoon trade. The market hovered in red in afternoon trade. The market extended losses to hit fresh intraday low in mid-afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1070.33 crore on Thursday, 16 May 2013, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was down 75.53 points or 0.37% to 20,171.80. The index rose 61.64 points at the day's high of 20,308.97 in early trade. The index fell 92.32 points at the day's low of 20,155.01 in mid-afternoon trade, its lowest level since 15 May 2013.
The CNX Nifty was down 21.60 points or 0.35% to 6,148.30. The index hit a high of 6,188.60 in intraday trade, its highest level since 12 November 2010. The index hit a low of 6,146.15 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,260 shares declined and 992 shares rose. A total of 142 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks fell and the rest of them rose. Bharti Airtel, Wipro and Sterlite Industries shed by 2.18% to 2.73%.
Index heavyweight Reliance Industries (RIL) fell 1.67% to Rs 826.15. The stock hit a high of Rs 844.70 and low of Rs 823.50 so far during the day.
Index heavyweight and cigarette major ITC fell 0.62% to Rs 334.70 after announcing Q4 results. The stock hit a high of Rs 341.20 and low of Rs 333.45 so far during the day. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced during market hours today, 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.
On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.
ITC's board of directors at its meeting held today, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.
Cement stocks rose after the Competition Appellate Tribunal (COMPAT) today, 17 May 2013, passed an order granting a stay on the penalty imposed by the Competition Commission of India on 11 cement firms on allegations of cartelization. ACC and UltraTech Cement rose 0.73% to 0.97%.
The COMPAT has asked 11 cement companies, which were together asked to pay a penalty of Rs 6300 crore by the Competition Commission of India in June 2012 to pay Rs 630 crore as penalties within the next four weeks. The final hearing in the case will take place in August, 2013
Ambuja Cements gained 2.01%. The company said during market hours today, 17 May 2013, that the Competition Appellate Tribunal (COMPAT) has passed an order granting the stay on a penalty of Rs 1163 crore imposed by the Competition Commission of India on the company relating to the competition law proceedings started in 2010 which aimed at investigating the conduct of several leading cement manufacturers in India including Ambuja Cements. The stay on order was with condition that company will deposit 10% of the penalty amounting to Rs 116.30 crore within 4 weeks.
As per the Q4 results calendar, Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Tata Steel, State Bank of India and Bharat Heavy Electricals (Bhel) unveil Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. Sun Pharma, Power Grid Corporation of India, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. Tata Motors, ONGC, NMDC and BPCL unveil Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on Wednesday, 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts.
The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
European stock markets nudged lower on Friday, although most indexes were still looking at weekly gains after solid performances earlier in the week. Key benchmark indices in UK, France and Germany were down by 0.16% to 0.48%.
Most Asian stocks edged higher on Friday, 17 May 2013. Key benchmark indices in China, Indonesia and Japan were up by 0.67% to 1.39%. Key benchmark indices in Singapore and Taiwan shed by 0.05% to 0.26%. Stock markets in Hong Kong and South Korea were closed for holidays.
Trading in US index futures indicated that the Dow could gain 13 points at the opening bell on Friday, 17 May 2013. US stocks fell on Thursday, 16 May 2013, after a Federal Reserve official tipped a pullback in the central bank's easing programs could come as soon as this summer. Media reports had last week suggested that Fed officials have mapped out a strategy for winding down quantitative easing, although the timing hasn't been decided.
Meanwhile, the data from the Philadelphia Federal Reserve showed factory activity in the mid-Atlantic region contracted, while the Commerce Department reported that US housing starts plummeted 16.5% in April. New claims for jobless benefits unexpectedly jumped last week.
Powered by Capital Market - Live News
