Key benchmark indices extended gains to strike fresh intraday high in mid-afternoon trade as the government's gas and energy sector reforms. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit over one-week high. The Sensex was up 446.38 points or 2.36%, up 229.15 points from the day's low and off 23.77 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Metal stocks edged higher on renewed buying. Coal India jumped after the government on Thursday, 27 June 2013, approved setting up of a coal regulator in a bid to further liberalize the energy sector and revitalize economic growth.
The Cabinet Committee on Economic Affairs (CCEA) on Thursday, 27 June 2013, approved a hefty increase in gas prices by clearing a proposal for fixation of price of domestic natural gas according to the recommendations of the committee constituted under the Chairmanship of Dr. C. Rangarajan on Production Sharing Contract (PSC) mechanism in the petroleum industry. In another decision, the government on Thursday approved setting up of a coal regulator in a bid to further liberalize the energy sector and revitalize economic growth.
Key benchmark indices rallied in early trade on the government's gas and energy sector reforms, with market sentiment also lifted by higher Asian stocks. The barometer index, the S&P BSE Sensex, hit over one-week high above the psychological 19,000 mark. Key benchmark indices regained strength after paring gains after an initial surge. Key benchmark indices extended gains to strike fresh intraday high in mid-morning trade. Key benchmark indices held firm in early afternoon trade. The market extended gains to hit fresh intraday high in afternoon trade. Key benchmark indices extended gains to strike fresh intraday high in mid-afternoon trade.
At 14:16 IST, the S&P BSE Sensex was up 446.38 points or 2.36% to 19,322.33. The index jumped 470.15 points at the day's high of 19,346.10 in mid-afternoon trade, its highest level since 18 June 2013. The index gained 217.23 points at the day's low of 19,093.18 in opening trade.
The CNX Nifty was up 130.10 points or 2.29% to 5,812.45. The index hit a high of 5,819.25 in intraday trade, its highest level since 19 June 2013. The index hit a low of 5,749.50 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,433 shares gained and 803 shares fell. A total of 134 shares were unchanged.
The total turnover on BSE amounted to Rs 1378 crore by 14:20 IST.
Among the 30-share Sensex pack, 24 stocks gained and only six of them declined.
Sun Pharmaceutical Industries jumped 3.8% to Rs 1,010.90, with the stock extending Thursday's 3.5% rally.
Coal India jumped 7.13% to Rs 307.40 after the government on Thursday, 27 June 2013, approved setting up of a coal regulator in a bid to further liberalize the energy sector and revitalize economic growth. The coal ministry today, 28 June 2013, said that the Union Cabinet has approved the proposal for setting up of an independent regulatory authority for the coal sector and also approved the introduction of the Coal Regulatory Authority Bill, 2013 in Parliament. The coal ministry said that the setting up of an independent regulatory body for the coal sector shall help in the regulation and conservation of coal resources and will benefit all stakeholders; that is coal companies, coal consuming industries such as power, steel, cement and coal bearing states and people, directly or indirectly associated with the coal industry.
The Union Cabinet also approved that pending enactment of the legislation, the regulator will be set up through an executive order. The coal regulatory authority will specify methods of testing for declaration of grades or quality of coal, monitor and enforce closure of mines, specify principles and methodologies for price determination of raw coal and washed coal and any other by-produce generated during the process of coal washing, adjudicate upon disputes between parties and discharge other functions as the Central Government may entrust to it.
Metal stocks edged higher on renewed buying. Sterlite Industries (India) (up 3.28%), JSW Steel (up 2.01%), Sail (up 4.02%), National Aluminium Company (up 1.05%), Hindustan Zinc (up 4.79%), Tata Steel (up 3.12%), Hindalco Industries (up 3.6%), Jindal Steel & Power (up 6.11%) edged higher.
Cipla rose 0.92% after the company said today, 28 June 2013 that the company received approval from the takeover regulation panel of South Africa on 27 June 2013 regarding the proposed acquisition of 100% of issued shares of Medpro by the company and that all conditions precedent to the scheme have now been fulfilled or waived and accordingly on 27 June 2013 scheme has become unconditional.
Ranbaxy Laboratories fell 2.24%. The Supreme Court of India on 25 June 2013, dismissed a public interest lawsuit against the company for allegedly manufacturing and selling substandard medicines due to lack of evidence against the company.
NTPC rose 2.06% to Rs 143.35 after a block deal of 10 lakh shares was executed on BSE at Rs 142 per share at 11:13 IST. The block deal constitutes 0.01% of NTPC's equity.
Crompton Greaves jumped 8.36%. The company said its board of directors at its meeting held today, 28 June 2013, approved buy-back of equity shares from the open market through the stock exchanges, at a price not exceeding Rs 125 per share. The company has set aside Rs 265.70 crore for share buyback, being 10% of the total paid-up equity capital plus free reserves as per the audited balance sheet of the company for the year ended 31 March 2012 (FY 2012).
IFCI (up 10.36%), PTC India (up 7.17%), Indiabulls Power (up 6.96%), HDIL (up 6.54%) and UCO Bank (up 5.92%), were the top gainers from the BSE Mid-Cap index.
GTL Infrastructure (up 10.07%), NCC (up 9.38%), KEC International (up 9.17%), BF Utilities (up 7.56%) and Ganesh Housing (up 7.09%), were the top gainers from the BSE Small-Cap index.
European stock markets were mostly in red on Friday, 28 June 2013, ahead of US sentiment data and ahead of speeches by some Federal Reserve officials later in the global day. Key benchmark indices in Germany and France dropped 0.07% to 0.32%. In UK, the FTSE 100 was up 0.08%.
German retail sales were better than expected in May, as consumers returned to the shops after being kept away for months by the cold and rainy weather, data from the Federal Statistics Office showed on Friday. Retail sales in May increased 0.8% from April, following three consecutive months of declines, beating economists' forecasts of a 0.3% drop in sales. The data are inflation-adjusted and also consider calendar effects.
Asian stocks edged higher on Friday, 28 June 2013, tracking an overnight rise in global equities on easing fears of an early end to US monetary stimulus. Key benchmark indices in China, Hong Kong, Indonesia, Taiwan, Singapore and South Korea were up 1.3% to 2.26%.
In Japan, the Nikkei 225 index jumped 3.51% as a weakened yen combined with upbeat industrial-production data to lift sentiment.
Japan's industrial production showed a surprise jump in May, while retail sales for the same month also gained, though the largest retailers saw a decline. Industrial output rose 2% during the last month, the Ministry of Economy, Trade and Industry said Friday, accelerating from a 0.9% gain in April.
Trading in US index futures indicated that the Dow could gain 43 points at the opening bell on Friday, 28 June 2013. US stocks surged for a third session on Thursday on upbeat economic data and reiterations from Federal Reserve officials that monetary policy depends on the economic outlook. In a speech on Thursday, Federal Reserve Bank of New York President William Dudley played down the possibility that rate hikes are in the cards anytime soon. Atlanta Fed President Dennis Lockhart said that the markets had mistaken Bernanke's framework for tapering central-bank asset purchases, and reiterated the Fed's approach would be flexible, and based on economic conditions. On Wednesday, Fed Bank of Richmond President Jeffrey Lacker said he believes the economic recovery will remain lackluster for a few more years.
The US Department of Labor reported the number of Americans filing for state unemployment benefits fell by 9,000 to 346,000 last week. The National Association of Realtors reported that pending home sales jumped to a six-year high in May.
Federal Reserve Chairman Ben Bernanke on 19 June 2013 said that the central bank may taper the pace of its bond purchases, currently set at $85 billion a month, as early as this year if the economy continues to improve in line with its forecasts.
Data on Wednesday had gross domestic product expanding at a less-than-estimated 1.8% annualized pace in the first quarter, bolstering the view that the Fed would continue the rate of its quantitative easing until late this year or early in 2014.
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