Key benchmark indices edged higher after the latest data showed that core inflation or non-food manufacturing inflation eased further in June 2013. The barometer index, the S&P BSE Sensex, moved past the psychological 20,000 level and the 50-unit CNX Nifty pierched the psychological 6,000 mark. The Sensex was provisionally up 80.30 points or 0.4%, up 155.58 points from the day's low and off 33.67 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Gains in Asian and European stocks underpinned sentiment.
Index heavyweight and cigarette major ITC edged higher in choppy trade. Another index heavyweight Reliance Industries (RIL) also edged higher. Metal and mining stocks were in demand after data showed China's economy grew in line with expectations in the second quarter, belying some fears of a sharper slowdown. Realty stocks gained.
A bout of volatility was witnessed in early trade as key benchmark indices once again turned negative after turning positive after a lower start triggered on weak macroeconomic data announced after trading hours on Friday, 12 July 2013. Key benchmark indices moved in a narrow range in mid-morning trade. Key benchmark indices reversed direction and moved into positive terrain after the latest data showed that rise in inflation based on the wholesale price index (WPI) in June 2013 was more or less in with market expectations. The CNX Nifty regained the psychological 6,000 level. The S&P BSE Sensex breached the psychological 20,000 mark as the market extended gains in afternoon trade. The market remained firm in mid-afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Friday, 12 July 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 644.82 crore on Friday, 12 July 2013, as per provisional data from the stock exchanges.
As per provisional closing, the S&P BSE Sensex was up 80.30 points or 0.4% to 20,038.77. The index jumped 113.97 points at the day's high of 20,072.44 in afternoon trade, its highest level since 31 May 2013. The index fell 75.28 points at the day's low of 19,883.19 in morning trade.
The CNX Nifty was up 21.15 points or 0.35% to 6,030.15. The index hit a high of 6,038.20 in intraday trade, its highest level since 31 May 2013. The index hit a low of 5,980.95 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,374 shares gained and 996 shares fell. A total of 145 shares were unchanged.
The total turnover on BSE amounted to Rs 1646 crore, higher than Rs 1557.91 on Friday, 12 July 2013.
Among the 30-share Sensex pack, 19 stocks gained and rest of them declined.
Index heavyweight and cigarette major ITC gained 0.63% to Rs 352.
Reliance Industries (RIL) rose 0.74% to Rs 896.20. The Cabinet Committee on Economic Affairs (CCEA) on 27 June 2013 approved new gas pricing formula from 1 April 2014. The price of gas as per the formula is likely to be about $8.4 mmBtu as opposed to $4.2 mmBtu currently.
Metal and mining stocks were in demand after data showed China's economy grew in line with expectations in the second quarter, belying some fears of a sharper slowdown. China is the world's largest consumer of copper and aluminum. Sterlite Industries (India) (up 3.62%), Sail (up 1.68%), Hindustan Zinc (up 1.77%), Jindal Steel & Power (up 0.77%), Sesa Goa (up 3.40%), NMDC (up 0.7%), Hindalco Industries (up 3.39%), Nalco (up 3.54%) and Hindustan Copper (up 0.08%) edged higher.
Tata Steel lost 2.32%. The stock turned ex-dividend today, 15 July 2013, for dividend of Rs 8 per share for the year ended 31 March 2013 (FY 2013).
JSW Steel fell 2.14%. The stock turned ex-dividend today, 15 July 2013, for dividend of Rs 10 per share for the year ended 31 March 2013 (FY 2013).
Realty stocks gained. Indiabulls Real Estate (up 4.24%), Sobha Developers (up 0.31%), HDIL (up 7.93%), Unitech (up 5.43%), Godrej Properties (up 1.56%), Oberoi Realty (up 1.88%) gained.
DLF rose 0.54%. The company said on Friday, 12 July 2013, that it has entered into definitive Business Transfer Agreement with Goyal MG Gases for transferring of an unit comprising of 11.2 megawatts (MW) capacity wind turbines situated at Gadag, Karnataka on 'as is where is basis' by way of slump-sale for a lump sum consideration of Rs 29.52 crore subject to adjustment for net working capital. Upon fulfilment of the terms and conditions by both the parties in accordance with the said agreement, the entire unit, including related assets and liabilities along with relevant long term loans would be vested to Goyal MG Gases. The shareholders of the company had approved the sale of the unit on 20 July 2012.
The transaction is expected to be consummated by 31 December 2013, subject to regulatory approvals. The transaction is in line with the DLF's objective of divesting its non core assets.
SpiceJet jumped 7.94% to Rs 29.90 on reports that Kuwait Airways is looking to pick up a nearly 25% stake in the budget airline. The stock rose on high volumes. On BSE, 69.13 lakh shares changed hands in the counter, compared with average daily volume of 33.01 lakh shares during the past one quarter. In a clarification to the Bombay Stock Exchange, SpiceJet said it reiterates that few investors have evinced interest in the company post the Government of India allowing foreign direct investment (FDI) in civil aviation sector to foreign airlines. SpiceJet said it will be very pre-mature to comment on the possibilities of any fresh equity issuance to such interested parties or confirm/deny names of any specific entity. The company said that it reiterates that these are speculative media reporting.
Inflation based on the wholesale price index (WPI) accelerated in June 2013 due to increase in food prices and prices of non-food primary articles, data released by the government today, 15 July 2013, showed. WPI inflation increased to 4.86% in June 2013, from 4.7% in May 2013. Fuel and manufactured products inflation eased in June 2013, the latest data showed. Core inflation or non-food manufacturing inflation eased further to 2.1% in June 2013, the latest data showed. Meanwhile the government revised downwards WPI inflation for April 2013 to 4.77% from 4.89% reported earlier.
Consumer price inflation accelerated in June 2013, data released by the government after trading hours on Friday, 12 July 2013, showed. The combined consumer price index (CPI) for urban and rural India edged up to 9.87% in June 2013 from 9.31% in May 2013.
Industrial production declined 1.6% in May 2013, as against a downwardly revised 1.9% growth in April 2013, data released by the government after trading hours on Friday, 12 July 2013, showed. The continuous decline in the output of mining sector remained the major drag on the growth of industrial production, while the output of manufacturing sector also declined in May 2013. The output of the mining sector declined 5.7% and that of the manufacturing sector declined 2% in May 2013. However, the electricity generation grew 6.2% in May 2013, restricting further decline in the output of industrial production in May 2013.
The industrial production growth for the month of April 2013 has been revised downwards to 1.9% from 2.3% reported earlier, while the growth for the month of February 2013 has been scaled up slightly to 0.6% from 0.5% reported earlier.
European stocks rose after data showed China's economy grew in line with expectations in the second quarter, belying some fears of a sharper slowdown. Key benchmark indices in UK, France and Germany were up by 0.4% to 0.53%.
Asian stocks edged higher after data showed China's economy grew in line with expectations in the second quarter, belying some fears of a sharper slowdown. Key benchmark indices in Indonesia, Hong Kong, China, South Korea, Singapore and Taiwan were up 0.02% to 0.98%. Japanese markets were closed for a holiday.
China's economy grew 7.5% in the second quarter compared to a year earlier, while industrial production for June rose 8.9% from year-ago levels, slowing from May's 9.2% growth, the National Bureau of Statistics said Monday. The gross domestic product result was down from the first quarter's 7.7% advance. June retail sales rose 13.3% on an annual basis, beating May's 12.9% increase to extend an upward trend for the data point.
Urban fixed-asset investment -- watched as an indicator of construction spending -- grew an average 20.1% in the January-June period, down from 20.4% in January-May. Fixed-asset investment is reported on a year-to-date basis.
Unlike during other recent slowdowns, China's new government has indicated it plans to focus more on economic reforms than on short-term stimulus.
Trading in US index futures indicated that the Dow could gain 29 points at the opening bell on Monday, 15 July 2013. US stocks on Friday, 12 July 2013, recorded a third week of gains, with the Dow industrials and the S&P 500 tallying record closes following upbeat earnings from two major banks.
Federal Reserve Chairman Ben Bernanke is due to deliver testimony on monetary policy in Washington on 17 and 18 July 2013. The minutes of the Fed's June meeting released on 10 July 2013 showed that while "several members judged that a reduction in asset purchases would likely soon be warranted," many want to see further improvement in the labor market before reducing the central bank's $85 billion-a-month quantitative easing program. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth. At a press conference following the June 18-19 meeting, Bernanke said the central bank could start reducing its $85 billion in monthly bond purchases later this year if the economy continues to improve in line with its forecasts.
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