Realty stocks extend recent gains

Key benchmark indices trimmed losses after hitting fresh intraday low in early afternoon trade. The barometer index, the S&P BSE Sensex, was down 37.57 points or 0.19%, up close to 25 points from the day's low and off about 100 points from the day's high. Index heavyweight and cigarette major ITC edged lower ahead of its Q4 results. Another index heavyweight Reliance Industries (RIL) also edged lower. The market breadth, indicating the overall health of the market, turned negative from positive in early afternoon trade.

Shares of Apollo Hospitals Enterprise, GlaxoSmithkline Consumer Healthcare and Oil India extended Thursday's gains triggered by an announcement of their inclusion in MSCI India Index from close of 31 May 2013. Apollo Hospitals Enterprise and GlaxoSmithkline Consumer Healthcare hit record high. Realty stocks rose for the third straight day on expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013.

 

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.

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 12:20 IST, the S&P BSE Sensex was down 37.57 points or 0.19% to 20,209.76. The index rose 61.64 points at the day's high of 20,308.97 in early trade. The index fell 62.06 points at the day's low of 20,185.27 in early afternoon trade.

The CNX Nifty was down 7.85 points or 0.13% to 6,162.05. 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 6,149.30 in intraday trade.

The market breadth, indicating the overall health of the market, turned negative from positive in early afternoon trade. On BSE, 1,049 shares declined and 966 shares rose. A total of 132 shares were unchanged.

Among the 30-share Sensex pack, 16 stocks fell and the rest of them rose. ICICI Bank, ONGC and NTPC rose by 0.93% to 2.56%. Dr Reddy's Laboratories, Bharti Airtel and Wipro shed by 1.37% to 1.47%.

Index heavyweight Reliance Industries (RIL) fell 0.97% to Rs 832. The stock hit a high of Rs 844.70 and low of Rs 830 so far during the day.

Index heavyweight and cigarette major ITC fell 0.46% to Rs 335.25. The stock hit a high of Rs 341.20 and low of Rs 333.50 so far during the day. The company announces its Q4 results today, 17 May 2013. The stock had hit record high of Rs 355 in intraday trade on 11 May 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.

Shares of Apollo Hospitals Enterprise, GlaxoSmithkline Consumer Healthcare and Oil India extended Thursday's gains triggered by an announcement of their inclusion in MSCI India Index from close of 31 May 2013.

Apollo Hospitals Enterprise rose 2.75% to Rs 1,076.85 after striking a record high of Rs 1,096.15 in intraday trade today, 17 May 2013.

GlaxoSmithkline Consumer Healthcare surged 5.34% to Rs 5,039, after striking a record high of Rs 5,049 in intraday trade today, 17 May 2013.

Oil India gained 0.11%.

But, Wockhardt fell 0.45%. Wockhardt will also be included in MSCI India Index from close of 31 May 2013.

Realty stocks rose for the third straight day on expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013. Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance. HDIL, Sobha Developers, Unitech and D B Realty rose by 0.01% to 2.3%.

DLF rose 0.6% to Rs 244.30. The realty major raised Rs 1863.42 crore from the issue of 8.10 crore shares to institutional investors at Rs 230 per share on 14 May 2013. The share sale was undertaken as an institutional placement programme (IPP) via an auction through the stock exchanges mechanism.

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.

Most Asian stocks edged higher on Friday, 17 May 2013. Key benchmark indices in China, Indonesia and Japan were up 0.47% to 1.32%. Key benchmark indices in Singapore and Taiwan fell by 0.02% 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 35 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 suggeested 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.

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