Key benchmark indices gained for third day in a row 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, attained 6-1/2-week closing high above the psychological 20,000 level. The 50-unit CNX Nifty attained 6-1/2-week closing high above the psychological 6,000 level. The Sensex advanced 76.01 points or 0.38%, up 151.29 points from the day's low and off 37.96 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.
Indian stocks gained for the third straight day today, 15 July 2013. From a recent low of 19,294.12 on 10 July 2013, the Sensex has gained 740.36 points or 3.84% in three trading sessions. The Sensex has risen 638.67 points or 3.29% so far in July 2013 (till 15 July 2013). The Sensex has gained 607.77 points or 3.13% in calendar 2013 so far (till 15 July 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 409.14 points or 2%. From a 52-week low of 16,598.48 on 26 July 2012, the Sensex has surged 3,436 points or 20.7%.
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.
Bank stocks rose, shrugging off the Reserve Bank of India's announcement that it has imposed monetary penalty on the 22 banks for violating rules for customer identification and anti-money laundering. Capital goods pivtoals saw divergent trend. Pharmaceutical stocks gained on renewed buying. Lupin scaled record high. Shares of Dr Reddy's Laboratories reversed gains after striking record high.
IT stocks were mostly higher after Infosys retained its revenue growth guidance in dollar terms for the year ending 31 March 2014 (FY 2014) at the time of announcing Q1 June 2013 result on Friday, 12 July 2013, belying fears that it may lower the guidance. TCS and HCL Technologies scaled record high. However, Infosys fell on profit booking after Friday's rally. Tech Mahindra reversed gains after striking 52-week high.
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Shares of public sector oil marketing companies (PSU OMCs) were mostly higher after raising petrol price. Car major Maruti Suzuki slipped following petrol price hike announced over the weekend. Two-wheeler makers slipped shrugged off petrol price hike announced over the weekend. Opto Circuits (India) galloped on high volume.
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.
The S&P BSE Sensex was up 76.01 points or 0.38% to 20,034.48, its highest closing level since 30 May 2013. The index jumped 113.97 points at the day's high of 20,072.44 in afternoon trade. The index fell 75.28 points at the day's low of 19,883.19 in morning trade.
The CNX Nifty was up 21.80 points or 0.36% to 6,030.80, its highest closing level since 31 May 2013. The index hit a high of 6,038.20 in intraday trade. 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.
The BSE Mid-Cap index gained 0.9% and the BSE Small-Cap index advanced 0.8%. Both these indices outperformed the Sensex.
The BSE Realty index (up 1.94%), BSE FMCG index (up 1.19%) BSE Capital Goods index (up 0.89%), BSE Oil & Gas index (up 0.72%), BSE Bankex (up 0.72%), BSE Auto index (up 0.6%), BSE Teck index (up 0.54%), BSE Healthcare index (up 0.46%), BSE Metal index (up 0.46%), and BSE Consumer Durables index (up 0.4%), outperformed the Sensex.
The BSE PSU index (up 0.02%), BSE IT index (down 0.03%) and BSE Power index (down 0.78%) underperformed the Sensex.
Among the 30-share Sensex pack, 19 stocks gained and rest of them declined.
Capital goods pivtoals saw divergent trend. L&T gained 1.3%. Bhel fell 1.2%.
Index heavyweight and cigarette major ITC gained 0.63% to Rs 352.
Hindustan Unilever (HUL) rose 1.84% to Rs 612.45. HUL's parent Unilever PLC on 11 July 2013 said that pursuant to the voluntary open offer to increase its stake in HUL, the shareholders of HUL tendered a total of 31.99 crore shares, out of which 31.95 crore shares have been accepted by Unilever PLC on completion of the verification of the shares tendered. Based on the shares tendered which represent 14.78% of HUL, the Unilever Group will increase its stake in HUL from 52.48% to 67.26%.
Godrej Consumer Products rose 2.44% to Rs 870.15. The stock clocked high volume of 17.13 lakh shares after a bulk deal of 15.80 lakh shares was executed on the scrip at Rs 840 per share in opening trade on the BSE today, 15 July 2013.
Tata Global Beverages rose 4.3%. The company before market hours today, 15 July 2013, said that it has entered into an agreement with Tata Realty and Infrastructure for the development of the company's property in Bangalore through a special purpose vehicle (SPV). The consideration for the transfer of the company's property is Rs 195 crore which will be discharged by a mix of cash, equity/other securities in the SPV and constructed space in the developed property. The necessary transaction documents have been executed by the parties in this regard, Tata Global Beverages said.
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.
Public sector oil marketing companies (PSU OMCs) were mostly higher after they announced hike in price of petrol by Rs 1.55 a litre as the falling rupee made imports costlier. Actual increase will be higher and will vary from city to city depending on local taxes. The new price is effective from midnight Sunday. Meanwhile, the price of diesel was kept unchanged. HPCL (up 0.24%) and Indian Oil Corporation (up 1.48%) rose. BPCL fell 0.93%.
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).
Pharmaceutical stocks gained on renewed buying. Cipla (up 0.37%), Ranbaxy Laboratories (up 0.24%) and Wockhardt (up 5.42%) gained.
Lupin gained 0.73% to Rs 874.80 after striking a record high of Rs 892 in intraday trade today, 15 July 2013.
Sun Pharmaceutical Industries was unchanged at Rs 1,108. The stock reversed direction after striking a record high of Rs 1,124 in intraday trade today, 15 July 2013. The company last week said that USFDA has granted its subsidiary final approval for its Abbreviated New Drug Applications (ANDA) for generic version of Prandin, Repaglinide tablets. Repaglinide tablets, 1 mg and 2 mg are therapeutic equivalents of Novo Nordisk's Prandin tablets. These tablets have annual sales of approximately $200 million in the US. Repaglinide tablets are indicated as an adjunct to diet and exercise to improve glycemic control in adults with type-2 diabetes mellitus. Sun Pharma's subsidiary, being the first-to-file an ANDA for generic Prandin with a para IV certification, is eligible for a 180-day marketing exclusivity in the US.
Glenmark Pharmaceuticals rose 0.72%. The company after market hours on Friday, 12 July 2013, confirmed that its subsidiary, Glenmark Generics, has filed abbreviated new drug applications (ANDAs) for Lacosamide Tablets, and Oral solution with the United States Food and Drug Administration (USFDA) with a Paragraph IV Certification for the Orange-Book listed patent. Glenmark's ANDA products are generic versions of VIMPAT, which are indicated for an adjunctive therapy in the treatment for partial-onset seizures in adults with epilepsy.
According to IMS Health data, the VIMPAT tablets and solution had annual sales of approximately $353 million in the United States for the twelve months ended 31 March 2013.
On 10 July 2013, UCB, INC., UCS Pharma GmbH, Research Corporation Technologies, Inc. and Harris FRC Corporation filed suit against Glenmark Generics and Glenmark Generics Inc. in the United States District Court for the District of Delaware, seeking to prevent Glenmark from commercializing its ANDA product prior to the expiration of US Patent. This lawsuit was filed under the provisions of the Hatch-Waxman Act. If Glenmark is successful in its challenge of the patent, it will garner 180-day exclusivity for its products.
Dr Reddy's Laboratories shed 0.42% to Rs 2,340 after striking a record high of Rs 2,400.75 in intraday trade today, 15 July 2013. The company on Friday, 12 July 2013, announced the launche of Decitabine for Injection (50 mg), a therapeutic equivalent generic version of Dacogen (Decitabine for Injection), in the US market on 11 July 2013, following the approval by the United States Food & Drugs Administration (USFDA) of Dr Reddy's ANDA for Decitabine for Injection. The Dacogen brand had sales of approximately $260 million for twelve months ending July 2013 in the US according to IMS Health data.
Piramal Enterprises shed 0.22%. The stock turned ex-dividend today, 15 July 2013, for dividend of Rs 17.50 per share for the year ended 31 March 2013 (FY 2013).
Opto Circuits (India) galloped 34.07% to Rs 30.50 on high volume of 1.14 crore shares as against average daily volume of 13.89 lakh shares in the past one quarter.
IT stocks were mostly higher after Infosys retained its revenue growth guidance in dollar terms for the year ending 31 March 2014 (FY 2014) at the time of announcing Q1 June 2013 result on Friday, 12 July 2013, belying fears that it may lower the guidance. Wipro rose 1.81%.
TCS gained 2.11% to Rs 1,640 and was the top gainer from the Sensex pack. The stock hit record high of Rs 1,647 in intraday trade today, 15 July 2013.
HCL Technologies gained 1.5% to Rs 873. The stock hit record high of Rs 882.60 in intraday trade today, 15 July 2013.
Tech Mahindra shed 1.36% to Rs 1,106.95. The stock hit 52-week high of Rs 1,132.85 in intraday trade today, 15 July 2013. Tech Mahindra on Friday, 12 July 2013, announced that it has completed the process of allocating shares of the company to the shareholders of erstwhile Mahindra Satyam. The issued capital of the company has gone up from earlier 12.9 crore shares to 23.2 crore shares. Subsequent to the scheme of amalgamation between Tech Mahindra and Mahindra Satyam becoming effective, the board of directors fixed 5 July 2013 as record date for Mahindra Satyam shareholders. The new shares were admitted for trading on the stock exchanges on 12 July 2013.
Infosys fell 2.02% on profit booking after Friday's 10.92% rally. Infosys retained its guidance of 6% to 10% growth in revenue in dollar terms for the year ending 31 March 2014 (FY 2014) at the time of announcing Q1 June 2013 result on Friday, 12 July 2013. The company has raised the guidance in rupee terms due to a steep depreciation of the rupee against the dollar. The company has forecast 13% to 17% growth in revenue in rupee terms for FY 2014, higher than its earlier guidance of 6% to 10% growth which the company had given at the time of announcement of Q4 March 2013 results.
Infosys said that compensation increases for FY 2014 which will become effective from July 2003, will adversely impact the company's profit margins in the future quarters. The company's management is cautiously optimistic about rest of the year.
Bank stocks rose, shrugging off the Reserve Bank of India's announcement that it has imposed monetary penalty on the 22 banks for violating rules for customer identification and anti-money laundering. It may be recalled that the RBI had carried out a scrutiny of books of accounts, internal control, compliance systems and processes of these banks at their offices during April 2013. The scrutiny of these banks revealed violation of certain regulations and instructions issued by the RBI, it said in a statement.
Andhra Bank (up 2.1%), Yes Bank (up 2.44%), Oriental Bank of Commerce (up 3.18%), Federal Bank (up 1.06%), State Bank of India (up 1.4%), Canara Bank (up 2.56%), Union Bank of India (up 3.79%), Bank of India (up 2.22%), Kotak Mahindra Bank (up 0.63%), Bank of Baroda (up 4.33%) and Punjab National Bank (up 5.39%) edged higher. ING Vysya Bank fell 2.31%.
Car major Maruti Suzuki shed 0.27% following petrol price hike announced over the weekend.
Two-wheeler makers shrugged off petrol price hike announced over the weekend. Bajaj Auto (up 2.11%) and Hero MotoCorp (up 1.79%) gained.
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 0.03% to 0.32%.
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 19 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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