Gains in Asian stocks helped Indian stocks extend initial gains in morning trade. The barometer index, the S&P BSE Sensex, hit its highest level in over 13 weeks. The CNX Nifty moved past the psychological 6,000 level. The Sensex was up 105.04 points or 0.53%, up 81.35 points from the day's low and off 27.38 points from the day's high. Index heavyweight and cigarette major ITC extended initial gains. Another index heavyweight Reliance Industries (RIL) retained positive zone. The market breadth, indicating the overall health of the market, was strong.
Bank stocks edged higher. Glaxosmithkline Pharma scaled record high ahead of its Q1 results today, 7 May 2013.
Key benchmark indices edged higher in early trade on positive Asian stocks. Key benchmark indices extended gains to strike fresh intraday high in morning trade.
At 10:23 IST, the S&P BSE Sensex was up 105.04 points or 0.53% to 19,778.68. The index jumped 132.42 points at the day's high of 19,806.06 in morning trade, its highest level since 4 February 2013. The index rose 23.69 points at the day's low of 19,697.33 in opening trade.
The CNX Nifty was up 34.20 points or 0.57% to 6,005.25. The index hit a high of 6,011.10 in intraday trade, its highest level since 2 May 2013. The index hit a low of 5,982.95 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,012 shares advanced and 630 shares declined. A total of 96 shares were unchanged.
The total turnover on BSE amounted to Rs 472 crore by 10:20 IST compared with Rs 131 crore by 09:25 IST.
Among the 30-share Sensex pack, 21 stocks gained while rest of them declined.
Index heavyweight Reliance Industries (RIL) rose 0.96% to Rs 829.40. The scrip hit high of Rs 835.65 and a low of Rs 821 so far during the day.
Index heavyweight and cigarette major ITC rose 0.98% to Rs 329.50. The scrip hit high of Rs 330.60 and a low of Rs 325.15 so far during the day. The stock had hit record high of Rs 335.90 in intraday on 30 April 2013. 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.
Bank stocks were in demand. HDFC Bank gained 0.35%. ICICI Bank rose 1.91%. Axis Bank rose 1.02%.
Among PSU banks, Canara Bank (up 1.56%), Union Bank of India (up 1.66%), Bank of India (up1.17%), Bank of Baroda (up 1.15%) and Punjab National Bank (up 0.59%) gained.
Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), rose 0.81%.
The government has directed Chairman cum Managing Directors of public sector banks and LIC to initiate immediate action against those employees exposed by Cobrapost, Red Spider 2 Expose. Online portal Cobrapost on Monday, 6 May 2013, claimed that its sting operation showed that a total of 23 major Indian banks, both public and private, and insurance companies are running a nation-wide money laundering racket. Financial Services Secretary Rajiv Takru, said in a letter directed to PSU banks and LIC, "Any officer/employee of your bank/institution who clearly appears to be advising potential customers along lines that would be an infringement of the legal process/could facilitate money laundering/could defeat the KYC norms or the norms of due diligence prescribed by RBI and the law from time to time, may be placed under suspension with immediate effect pending inquiry. The bank may initiate a detailed scrutiny of such officer's work and institute a special audit, if necessary, for this purpose. The inquiry must be initiated and completed expeditiously". The letter added, "Any officer/employee of your bank/institution who clearly appears to be advising potential customers along lines that would be an infringement of the legal process/could facilitate money laundering/could defeat the KYC norms or the norms of due diligence prescribed by RBI and the law from time to time, may be placed under suspension with immediate effect pending inquiry. The bank may initiate a detailed scrutiny of such officer's work and institute a special audit, if necessary, for this purpose. The inquiry must be initiated and completed expeditiously".
Cobrapost said its undercover investigation conducted for more than half a year, and spanning many states including Uttar Pradesh, Rajasthan, Delhi, Haryana, Andhra Pradesh and Karnataka, shows that money laundering practices are part and parcel of banking and insurance business across the board. Money laundering services are being offered by banks and insurance companies openly as a standard product across the board, Cobrapost said. The second round of secret videos have revealed violation of several provisions of the Income Tax Act, FEMA, RBI regulations, KYC norms, the Banking Act and Prevention of Money Laundering Act (PMLA), said Cobrapost in a press release.
The expose was the second by Cobrapost after the online portal had on 13 March 2013 alleged that HDFC Bank, ICICI Bank and Axis Bank were involved in money laundering.
GlaxoSmithKline Pharmaceuticals surged 5.75% to Rs 2451.50 after striking a record high of Rs 2,522 in intraday trade today, 7 May 2013. The pharma company announces its Q1 March 2013 results today, 7 May 2013.
Tata Teleservices (Maharashtra) jumped 4.49% after the Securities and Exchange Board of India provided some relaxation to the offer for sale norms to help the company achieve minimum public shareholding. The announcement was made after market hours on Monday, 6 May 2013.
Tata Teleservices (Maharashtra) (TTML) had sought relaxation from the market regulator the Securities and Exchange Board of India (Sebi) from certain condition applicable to offer for sale (OFS) of shares by promoters through the stock exchange mechanism. Sebi has relaxed the maximum allocation limit of 25% of the size of the OFS to a single investor. It has also permitted TTML to undertake two successive offers with a gap of minimum three days and has also relaxed restrictions with respect to the twelve week cooling off period. Promoters of TTML, who currently own 77.73% stake (as on 31 March 2013), are planning to sell their shares using the OFS route.
The promoter group of the company is allowed to sell the shares of the company up to 1% of the total paid-up share capital of the company on the floor of the stock exchange, subject to certain conditions prescribed in the letter, TTML said in a filing.
Sebi has mandated minimum public shareholding of 25% for private companies and 10% for state-run firms. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 30 June 2013, while the deadline for state-run firms is August 2013.
The stock exchanges have decided to conduct a special trading session for a short duration on Saturday, 11 May 2013, as the Bombay Stock Exchange (BSE) is testing its disaster recovery software. Trading will start at 11:15 IST and end at 12:45 IST.
The focus of the market is on Q4 results. HDFC and Lupin unveil Q4 results tomorrow, 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints and Punjab National Bank unveil Q4 results on Thursday, 9 May 2013. NTPC announces Q4 results on Friday, 10 May 2013. Bank of Baroda unveils Q4 results on 13 May 2013. Dr Reddy's Laboratories and Reliance Infrastructure unveil 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 and Tata Power unveil Q4 results on 30 May 2013.
Indian services sector growth eased sharply during April as new orders came in at a much slower pace, a business survey showed on Monday, 6 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to 50.7 in April 2013 from 51.4 in March 2013. Services make up over 60% of India's economy.
The Central Statistics Office (CSO) will issue data on industrial production for March 2013 on Friday, 10 May 2013. Industrial production rose 0.6% in February 2013.
The Budget session of the Parliament ends on Friday, 10 May 2013.
The RBI on Friday, 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 that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The central bank said that with upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from MSP increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures. 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.
Asian stocks climbed for a second day today, 7 May 2013, dominated by Japanese shares, on optimism central banks will continue to revive growth. Key benchmark indices in Hong Kong, Singapore, Japan, Taiwan, China and Indonesia were up by 0.02% to 3.22%. South Korea's KOSPI Composite index shed 0.19%.
China is due to release a slew of economic data this week. The trade data for April 2013 will be out tomorrow, 8 May 2013. On Thursday, 9 May 2013, attention will shift to China's consumer and producer inflation figures for April 2013.
Trading in US index futures indicated that the Dow could fall 14 points at the opening bell on Tuesday, 7 May 2013. US stocks mostly advanced on Monday, with S&P 500 index extending its record run above 1,600 after the April jobs report exceeded expectations. US nonfarm payrolls rose by 165,000 last month and the jobless rate fell to a four-year low of 7.5%, the Labor Department had said on Friday, 3 May 2013.
Powered by Capital Market - Live News
