Key benchmark indices pared gains after hitting fresh intraday high in morning trade. The barometer index, the S&P BSE Sensex, was up 63.73 points or 0.33%, up close to 70 points from the day's low and off about 35 points from the day's high. Index heavyweight and cigarette major ITC was slightly higher. Index heavyweight Reliance Industries (RIL) reversed initial losses. The market breadth, indicating the overall health of the market, was strong.
Pharma stocks rose on renewed buying with Dr Reddy's Laboratories hitting record high. Realty stocks gained as slowing wholesale price inflation has raised rate cut expectations. Two-wheeler major Hero MotoCorp jumped after the company said at the time of announcement of the Q4 results that it has hiked prices of its products, ranging from Rs 500 to Rs 1,500 with immediate effect.
The market edged higher amid initial volatility. The market pared gains after hitting fresh intraday high in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 224.75 crore on Friday, 26 April 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 63.73 points or 0.33% to 19,350.45. The index rose 101.18 points at the day's high of 19,387.90 in morning trade, its highest level since 25 April 2013. The index gained 7.88 points at the day's low of 19,294.60 in early trade.
The CNX Nifty was up 16.80 points or 0.29% to 5,888.25. The index hit a high of 5,899.15 in intraday trade. The index hit a low of 5,871.15 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 794 shares advanced and 478 shares declined. A total of 56 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks rose while rest of them fell.
Index heavyweight Reliance Industries (RIL) rose 0.25% to Rs 795.15. The scrip hit high of Rs 799 and a low of Rs 789, so far during the day. At the time of announcement of its Q4 results, RIL in mid-April 2013 said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the net 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
Index heavyweight and cigarette major ITC rose 0.25% to Rs 319.75. The scrip hit high of Rs 320.50 and a low of Rs 316.70, so far during the day. The stock had hit record high of Rs 323.85 in intraday trade on 25 April 2013. West Bengal chief minister Mamata Banerjee on 24 April 2013, announced a 10% hike in the value-added tax (VAT) on cigarettes to 25% from 15% to raise money for a relief fund for those depositors who have lost money in the Saradha chit fund scam.
Earlier, the Centre raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14, which was unveiled on 28 February 2013.
Realty stocks gained as slowing wholesale price inflation has raised rate cut expectations. Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance. DLF, HDIL, D B Realty, Sobha Developers and Unitech rose by 0.53% to 2.26%.
Pharma stocks rose on renewed buying. Cipla and Ranbaxy Laboratories gained by 0.5% to 0.55%.
Dr Reddy's Laboratories rose 0.99% to Rs 2009.80. The stock hit record high of Rs 2018.75 in intraday trade today, 29 April 2013.
Sun Pharmaceutical Industries gained 0.38% to Rs 959.50. The stock had scaled a record high of Rs 980.30 in intraday trade on 25 April 2013.
Lupin rose 1.82%. The company announced after market hours on Friday, 26 April 2013, that its subsidiary Lupin Pharmaceuticals Inc. (collectively Lupin) has received final approval for its Pirmella 7/7/7 (Norethindrone and Ethinyl Estradiol Tablets USP, 0.5 mg/0.035 mg, 0.75 mg/0.035 mg and 1mg/0.035 mg) and Pirmella 1/35 Tablets (Norethindrone and Ethinyl Estradiol Tablets USP, 1 mg/0.035 mg) from the United States Food and Drugs Administration (US FDA) to market a generic version of Janssen Pharmaceuticals, Inc.'s Ortho-Novum 7/7/7 Tablets and Ortho-Novum 1/35 tablets. Lupin would commence shipping the product shortly. Lupin's Pirmella 7/7/7 and Pirmella 1/35 Tablets is indicated for the prevention of pregnancy in women who elect to use the product as a method of contraception. The combined annual sales of Ortho Novum 7/7/7 and Ortho Novum 1/35 Oral Contraceptive Tablets stands at $96.5 million (as per IMS MAT December 2012 data).
Two-wheeler major Hero MotoCorp jumped 4.66% after the company said at the time of announcement of the Q4 results that it has hiked prices of its products, ranging from Rs 500 to Rs 1,500 with immediate effect. The company's net profit fell 4.86% to Rs 574.23 crore on 1.79% rise in total income to Rs 6250.26 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results after market hours today, 26 April 2013.
Commenting on the company's financial performance, Mr. Pawan Munjal, Managing Director and Chief Executive Officer, Hero MotoCorp said: "FY 2013 has been a rough year for the overall Indian auto sector. Weak macroeconomic sentiment coupled with subdued consumer confidence adversely impacted the industrial growth and sales volumes. Considering the current environment, these are tough times for the auto sector in India and we remain cautiously optimistic about the growth prospects in the near term. However, having sold over 60 lakh two-wheelers in just 12 months, we have sustained our performance during the period. Being the industry leader, we have planned major initiatives to boost the industry sentiment and accelerate growth in the new financial year, mainly through new launches, campaigns, capacity addition and network expansion. In a significant step working towards our global vision, we have commenced dispatches to half a dozen new markets last fiscal and will add a few more to that tally very soon".
The stock market remains closed on Wednesday, 1 May 2013, on account of Maharashtra Day.
The focus of the market is on Q4 results. IDFC announces Q4 results on Wednesday, 1 May 2013. Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on Thursday, 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on Friday, 3 May 2013. Grasim and Jaiprakash Associates unveil Q4 results on Saturday, 4 May 2013. HDFC unveils Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints announces Q4 results on 9 May 2013. NTPC announces Q4 results on 10 May 2013. Dr Reddys Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. BPCL announces Q4 results on 29 May 2013. M&M announces Q4 results on 30 May 2013.
The Prime Minister's Economic Advisory Council (PMEAC) in a report released on 23 April 2013 projected 6.4% growth in India's GDP for the current fiscal year 2013/14, higher than an estimated 5% growth for the fiscal year 2012/13. The net FDI inflow is expected at $24 billion in 2013-14 from an estimated $18 billion in 2012-13, the PMEAC said. In contrast, FII inflows are seen sliding to $18 billion in 2013-14 from an estimated $24 billion in 2012-13, the PMEAC said.
Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for April 2013 on Wednesday, 1 May 2013. The HSBC India Manufacturing PMI fell to 52 in March 2013, after a surge to 54.2 in February 2013. Markit Economics will unveil the result of a monthly survey on the performance of India's services sector for April 2013 on Friday, 3 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to a 17-month low of 51.4 in March from 54.2 in February. Services make up over 60% of India's economy.
Slowing wholesale price inflation has raised expectations that the Reserve Bank of India (RBI) will cut its key policy rate viz. the repo rate to boost economic growth. The (RBI) will announce the Monetary Policy Statement 2013-14 on Friday, 3 May 2013. The RBI cut its key policy rate viz. the repo rate by 25 basis points to 7.5% after a mid-quarter monetary policy review on 19 March 2013.
Inflation based on the monthly wholesale price index (WPI) eased to the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed.
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.
The government needs to pass many crucial bills, including the finance Bill in the last two weeks of the Budget Session which ends on 10 May 2013. Neither House transacted any business last week after Parliament reconvened for the rest of the Budget session that saw adjournments and uproar over various issues such as 2G scam, coal scam and the Delhi minor rape.
Most Asian stocks rose on Monday. Key benchmark indices in Hong Kong, Indonesia and Singapore rose by 0.09% to 0.24%. South Korea's Kospi fell 0.23%. Taiwan's Taiwan Weighted was flat. Markets in China and Japan were closed today, 29 April 2013 for a holiday.
Trading in US index futures indicated a flat opening of US stocks on Monday, 29 April 2013. Most US stocks dipped in thin volume on Friday amid a mixed bag of earnings and weak economic figures. Gross domestic product expanded at a 2.5% rate in the first quarter, below estimates of 3%, heightening fears the US economy could struggle to cope with deep government spending cuts and higher taxes that kicked in earlier this year.
A two meeting of the Federal Open Market Committee on US interest rates begins tomorrow, 30 April 2013.
In Europe, the European Central Bank's (ECB) Governing Council meets in Bratislava on Thursday, 2 May 2013, to review euro area interest rates. The ECB is seen cutting euro area interest rates by 25 basis points to a record low of 0.5% as economic conditions continue to deteriorate across the euro zone and as inflation remains well below the bank's target.
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