Key benchmark indices regained positive terrain in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 48.09 points or 0.24%, off about 110 points from the day's high and up close to 155 points from the day's low. Index heavyweight and cigarette major ITC edged lower. Another index heavyweight Reliance Industries (RIL) edged higher in volatile trade. The market breadth, indicating the overall health of the market, was negative. Realty stocks fell for the fifth straight day. IT stocks declined.
In a bout of initial volatility, key benchmark indices pared entire gains after opening higher tracking mostly firm Asian stocks. The CNX Nifty slipped below the psychological 6,000 mark after regaining that mark at the onset of the trading session. It weakened to hit fresh intraday low in morning trade. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their lowest level in 2-1/2 weeks. It regained positive terrain in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 316.23 crore on Thursday, 23 May 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 48.09 points or 0.24% to 19,722.42. The index declined 105.84 points at the day's low of 19,568.49 in morning trade, its lowest level since 6 May 2013. The index jumped 158.81 points at the day's high of 19.833.14 in early trade.
The CNX Nifty was up 23.95 points or 0.4% to 5,991. The index hit a high of 6,015.30 in intraday trade. The index hit a low of 5,936.80 in intraday trade, its lowest level since 6 May 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 842 shares fell and 795 shares rose. A total of 93 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks rose and the rest of them fell. Sun Pharmaceutical Industries, Cipla and Bhel shed by 1.86% to 2.28%. Tata Steel, L&T and NTPC rose by 1.58% to 4.17%.
Index heavyweight Reliance Industries (RIL) rose 0.87% to Rs 792. The stock hit high of Rs 794 and low of Rs 780 so far during the day.
Index heavyweight and cigarette major ITC fell 0.41% to Rs 330.95. The stock hit high of Rs 335.70 and low of Rs 329.50 so far during the day. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.
On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.
ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.
Realty stocks fell for the fifth straight day. Godrej Properties, Sobha Developers, Unitech, and HDIL dropped by 0.12% to 2.76%.
DLF declined 1.59% to Rs 207.70, with the stock extending recent losses. The company said on 20 May 2013 that the Equity Issuance Committee of the board of directors of the company has, by a resolution dated 20 May 2013, allotted 8.1 crore shares to successful applicants at an issue price of Rs 230 per share, aggregating to Rs 1863.42 crore, under the institutional placement programme.
IT stocks declined. Infosys, TCS and Wipro dropped by 0.54% to 1.05%. But, HCL Technologies rose 0.03%.
GAIL (India) declined 1.02%. The company clarified on Thursday, 23 May 2013 that GAIL has not stopped supply of natural gas to Haryana City Gas Distribution (HCGDL) and is even currently supplying 0.025 MMSCMD of natural gas (RLNG) to HCGDL. The company was also being supplied 0.25 MMSCMD of natural gas by Indraprastha Gas (IGL) under Administered Pricing Mechanism (APM) through the pipeline network of GAIL.
However, on 17 May 2013, IGL informed GAIL that it would not be procuring any natural gas under APM to be supplied to HCGDL from 18 May 2013 till further notice as HCGDL has stopped making payments to it against the gas supplied to it. In view of this, the APM gas supply to HCGDL has been stopped from 20 May 2013. However, GAIL continues to supply 0.025 MMSCMD RLNG for which it has a separate contract with HCGDL, it added. In view of the factual position as above, it is once again reiterated that GAIL has not stopped supply of natural gas to HCGDL but only restricted it to the extent of stopping supply of APM gas as per the requirements of IGL.
As per the Q4 results calendar, Coal India unveils consolidated FY 2013 results on Monday, 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, Cipla, NMDC and BPCL unveil Q4 results on 29 May 2013. DLF, M&M and Tata Power unveil Q4 results on 30 May 2013.
Global credit rating agency Standard & Poor's (S&P) on 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.
The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on 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.
Asian stocks were mixed on Friday as the yen strengthened after Bank of Japan Governor Haruhiko Kuroda said the central bank had announced sufficient stimulus. Key benchmark indices in Japan, South Korea and Taiwan shed by 0.01% to 1.91%. Key benchmark indices in China, Hong Kong and Indonesia rose by 0.02% to 0.57%. Markets in Singapore, Thailand, Malaysia and Sri Lanka are closed today for holidays.
Trading in US index futures indicated that the Dow could fall 19 points at the opening bell on Friday, 24 May 2013. U.S. stocks fell modestly on Thursday, substantially paring intraday losses after upbeat U.S. economic reports and gains for Hewlett-Packard Co. countered worries about the Federal Reserve potentially tapering its bond-buying program.
Economic data on Thursday showed the number of Americans filing new claims for unemployment benefits fell last week, while new single family home sales rose.
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