Tuesday 1 July 2014

Auto, metal stocks edge higher - Business Standard

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Key benchmark indices edged higher after provisional data showed that foreign investors made substantial purchases of Indian stocks on Monday, 30 June 2014. The barometer index, the S&P , settled at two week-high. The 50-unit CNX finished at its highest level in almost 3 weeks. Firmness in European stocks and the result of a private survey showing that growth in the 's manufacturing sector was maintained in June 2014 also supported domestic bourses. The BSE garnered 102.57 points or 0.4%, up 49.68 points from the day's low and off 55.55 points from the day's high. The market breadth indicating the overall health of the market was strong. The BSE Small-Cap index was up more than 1%, outperforming the Sensex.


Maruti Suzuki India surged to record high after the company reported robust sales in June. hit record high. Mahindra & Mahindra (M&M) surged after reporting increase in tractor and auto sales for the month just gone by. Gas utility stocks surged.


Metal and mining stocks gained after the latest data showed China's manufacturing expanded in June at the fastest pace this year. Hindalco Industries jumped almost 7% after an upgrade in the stock's rating from a foreign brokerage. ABB India, Bajaj Finserv and Bajaj Holdings & Investment hit 52-week high. Bharti Infratel scaled record high after a foreign brokerage maintained 'outperform' rating on the stock. Container Corporation of India and Tata Sponge Iron scaled record high. Auto components maker Motherson Sumi Systems also scaled a record high. Realty stocks gained on renewed buying. IT stocks declined as the rupee edged higher against the dollar.


The S&P BSE Sensex garnered 102.57 points or 0.4% to 25,516.35 to settle at, its highest closing level since 17 June 2014. The index jumped 158.12 points at the day's high of 25,571.90 in late trade. The index rose 52.99 points at the day's low of 25,466.67 in mid-morning trade.


The CNX Nifty garnered 23.35 points or 0.31% to settle at 7,634.70, its highest closing level since 12 June 2014. The index hit a high of 7,649.50 in intraday trade. The index hit a low of 7,618.15 in intraday trade.


The total turnover on BSE amounted to Rs 3649 crore, higher than Rs 3550.80 crore on Monday, 30 June 2014.


The market breadth indicating the overall health of the market was strong. On BSE, 1,905 shares gained and 1,146 shares fell. A total of 108 shares were unchanged.


The BSE Mid-Cap index was up 54.79 points or 0.58% at 9,433.74. The BSE Small-Cap index was up 118.44 points or 1.16% at 10,321.63. Both these indices outperformed the Sensex.


The S&P BSE Auto index (up 3.24%), the S&P BSE Metal index (up 2.03%), the S&P BSE Capital Goods index (up 1.27%), the S&P BSE Realty index (up 1.03%), the S&P BSE Consumer Durables index (up 0.98%) and the S&P BSE Bankex (up 0.48%) outperformed the Sensex.


The S&P BSE FMCG index (up 0.34%), the S&P BSE Power index (up 0.27%), the S&P BSE Healthcare index (down 0.38%), the S&P BSE Oil & Gas index (down 0.54%), the S&P BSE Teck index (down 0.55%) and the S&P BSE IT index (down 0.93%) underperformed the Sensex.


Index heavyweight and cigarette major ITC rose 0.12% to Rs 352.30. The company said after market hours on Monday, 30 June 2014, that the Scheme of Arrangement between Wimco and the company and their respective shareholders for demerger of the non-engineering business comprising Safety Matches Business and Agri (Forestry) Business of Wimco into the company has been sanctioned by the High Court of Judicature at Bombay and the High Court at Calcutta. Consequent to the above, the Scheme of Arrangement has become effective from 27 June 2014, ITC said.


Metal and mining stocks gained after the latest data showed China's manufacturing expanded in June at the fastest pace this year. China is the world's largest consumer of copper and aluminum. Hindustan Zinc (up 1.59%), (Sail) (up 3.69%), Sesa Sterlite (up 1.27%), Jindal Steel & Power (up 1.39%), NMDC (up 1.18%), National Aluminum Company (up %) edged higher. Hindustan Copper fell 1.3%.


Hindalco Industries jumped 6.58% to Rs 174.90. A foreign brokerage house has reportedly upgraded the stock to 'buy' from 'sell'. According to the brokerage house, aluminium demand from global auto companies is at an inflection point and Hindalco's attempt to de-leverage its balance sheet in last few years will boost its equity value.


Tata Steel rose 2.59%. Tata Steel today, 1 July 2014, announced restructuring proposals to improve the competitiveness of its South Wales steelmaking business. The proposed changes would enable the UK Strip Products business to compete in Europe's lower market demand era by reducing costs equivalent to the loss of about 400 jobs in Port Talbot. The announcement was made after market hours today, 1 July 2014.


Tata Sponge Iron spurted 7.4% to Rs 700.45 after scaling a record high of Rs 721.80 in intraday trade.


JSW Steel rose 2.46%. In clarification to a TV report on 30 June 2014 that JSW Steel may ink deal with Welspun Maxsteel for Maharashtra unit, JSW Steel today, 1 July 2014, said that the company does not offer any comments on market rumours and speculation. JSW Steel further said that as a long term strategy, the company would like to expand both organically by means of brownfield and greenfield expansions and inorganically by acquiring some existing assets. In that perspective, the company keeps scanning suitable opportunities, which have a strategic fit.


L&T rose 1.49% after the company said that its construction division has won a major contract worth Rs 2442 crore from Bharat Sanchar Nigam, the project implementation agency for the Ministry of Defence. The contract is for supply, trenching, laying, installation, testing and commissioning of optical fiber cable network which will establish exclusive optical national long distance backbone and optical access routes for the defence network. The project is scheduled to be completed within 18 months.


Auto stocks gained. Tata Motors (up 4.98% to Rs 452.60), Ashok Leyland (up 0.96% to Rs 36.85), Hero MotoCorp (up 0.56% to Rs 2,642) and TVS Motor Company (up 0.83% to Rs 163.90) gained.


Mahindra & Mahindra (M&M) rose 3.93% to Rs 1,193 after the company said its total tractor sales rose 8% to 29,884 units in June 2014 over June 2013. The company made the announcement during trading hours today, 1 July 2014. M&M's domestic tractor sales rose 8% to 28,893 units in June 2014 over June 2013. Total tractor exports fell 3% to 991 units in June 2014 over June 2013.


In a separate announcement, M&M reported 1% rise in total automobile sales to 38,471 units in June 2014 over June 2013. Total domestic automobiles sales rose 1% to 36,457 units in June 2014 over June 2013. Total automobiles exports rose 7% to 2,014 units in June 2014 over June 2013.


Maruti Suzuki India jumped 5.93% to Rs 2,583, with the stock extending intraday gains in late trade. The company said during market hours that its total sales rose 33.5% to 1.12 lakh units in June 2014 over June 2013. The stock hit record high of Rs 2.603.25 in intraday trade. Maruti's domestic sales rose 31.1% to 1 lakh units in June 2014 over June 2013. Exports jumped 58.4% to 11,809 units in June 2014 over June 2013.


Bajaj Auto rose 0.94% to Rs 2,335 after hitting record high of Rs 2,350 in intraday trade.


Shares of Bharat Forge jumped 4.54% at Rs 654.10. The stock hit record high of Rs 672.65 in intraday trade. Bharat Forge is a metal forging company, serving several sectors including automotive, power, oil and gas, construction and mining, locomotive, marine and aerospace.


Motherson Sumi Systems jumped 5.97% to Rs 343.60 after scaling a record high of Rs 351.80 in intraday trade.


Shares of public sector oil marketing companies fell. BPCL (down 1.79% to Rs 588.65), HPCL (down 1.06% to Rs 411.55) and Indian Oil Corporation (IOC) (down 0.65% to Rs 342.90) edged lower.


PSU OMCs have raised petrol prices by Rs 1.69 a litre and diesel prices by Rs 0.50 a litre excluding state levies effective from 1 July 2014. While the hike in diesel prices was a continuation of small increase in prices every month, the hike in petrol price was due increase in international prices of petrol and rupee depreciation.


The movement of prices in international oil market and the rupee dollar exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes, Indian Oil Corporation said on Monday, 30 June 2014, while announcing the latest fuel price hike.


Meanwhile, as per reports, PSU OMCs today, 1 July 2014, hiked the price of non-subsidised LPG by Rs 16.50 per 14.2-kg cylinder.


PSU OMCs suffer under-recovery on domestic sales of diesel, kerosene and LPG at government controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals. The government has already freed pricing of petrol.


IT stocks declined as the rupee edged higher against the dollar. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.


Tata Consultancy Services (TCS) (down 1.08%), Infosys (down 0.81%), Wipro (down 1.2%), Tech Mahindra (down 1.77%) declined. HCL Technologies rose 0.16%.


Oracle Financial Services Software fell 1.01%. In clarification to a TV media report on 30 June 2014 indicating buzz of major corporate announcement by the company, Oracle Financial Services Software during market hours said it is not aware of any such development and there is no such communication received or issued by the company in this regard.


Gas utility stocks surged. Gujarat Gas Company (up 20% to Rs 495.35), Gujarat State Petronet (up 7.56% to Rs 96.70) and Indraprastha Gas (up 5.16% to Rs 377.10) surged. On 25 June 2014, the Cabinet Committee on Economic Affairs (CCEA) deferred a decision on revision of natural gas pricing for three months.


ABB India gained 1.96% to Rs 1,144 after hitting a 52-week high of Rs 1,166 in intraday trade.


Bajaj Finserv advanced 1.87% to Rs 953 after hitting a 52-week high of Rs 971.10 in intraday trade.


Bajaj Holdings & Investment surged 9.24% to Rs 1,380.85 after hitting a 52-week high of Rs 1,391.65 in intraday trade.


Container Corporation of India gained 5.46% to Rs 1,253 after scaling a record high of Rs 1,292.55 in intraday trade.


Bharti Infratel rose 2.18% to Rs 260.70 after scaling a record high of Rs 274.50 in intraday trade. As per reports, a foreign brokerage has maintained 'outperform' rating on the stock. The brokerage believes that the company's earnings per share may increase 6-17% over FY 2016-17, led by better tenancy of its towers. The company will be a beneficiary of competition in the telecom sector, the foreign brokerage said.


Realty stocks gained on renewed buying. DLF (up 0.88%), Housing Development & Infrastructure (HDIL) (up 1.54%), Unitech (up 3.25%) and Oberoi Realty (up 1.46%) gained.


Airline stocks shrugged off a small hike of jet fuel prices. Jet Airways (India (up 1.75% and SpiceJet (up 0.52%) gained. The price of jet fuel or aviation turbine fuel (ATF), at Delhi was increased by Rs. 413.78 per kilolitre (kl), or 0.6%, to Rs. 70,161.76 per kl effective 1 July 2014. Jet fuel constitutes over 40% of an airline's operating costs.


Shree Cement fell 0.94%. The company said during market hours that it has commissioned a grinding unit of 2 million tons per annum (MTPA) capacity at Aurangabad in Bihar on 30 June 2014.


Separately, the company said it has lighted up its clinker manufacturing unit having capacity of 6,000 ton per day (TPD) at Bangur City, Ras in Pali District of Rajasthan on 30 June 2014.


Key benchmark indices edged higher in early trade after provisional data showed that foreign investors made substantial purchases of Indian stocks on Monday, 30 June 2014. The Sensex hovered in positive terrain in morning trade. The Sensex regained strength after paring intraday gains in mid-morning trade. IT extended gains and hit fresh intraday high in early afternoon trade. A bout of volatility was witnessed as key benchmark indices pared gains after hitting fresh intraday high in afternoon trade. Firmness continued on the bourses in mid-afternoon trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost two weeks.


Indian stocks rose for the third day in a row today, 1 July 2014. The Sensex has risen 453.68 points or 1.81% in three trading days from recent low of 25,062.67 on 26 June 2014. The Sensex has gained 4,345.67 points or 20.52% in calendar year 2014 so far (till 1 July 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 8,067.64 points or 46.23%. From a record high of 25,725.12 hit on 11 June 2014, the Sensex is off 208.77 points or 0.81%.


Foreign portfolio investors (FPIs) bought shares worth a net Rs 1288.16 crore on Monday, 30 June 2014, as per provisional data from the stock exchanges.


In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.0850, compared with its close of 60.17/18 on Monday, 30 June 2014.


A survey from Markit Economics showed that growth in India's manufacturing sector was maintained in June 2014. Adjusted for seasonal variations, the seasonally adjusted HSBC India Purchasing Managers' Index (PMI) rose marginally to 51.5 in June from 51.4 in May. Greater domestic and foreign demand led companies to increase production levels further. Buying activity expanded at a faster rate, while employment continued to rise. Input cost and output price inflation accelerated over the month, although in both cases the rates of increase were below their respective long-run averages, the survey showed today, 1 July 2014.


Manufacturing production rose for the eighth successive month in June 2014. There was a moderate expansion of incoming new orders, with growth in export orders at three-month high, the survey showed.


Data released by the government after trading hours on Monday, 30 June 2014, showed that the government's fiscal deficit for the period April-May 2014 at Rs 2.40 lakh crore amounted to 45.6% of the budget estimates (BE) compared with 33.3% of BE during the same period last year. In the Interim Budget for 2014-15 presented in February this year, the previous government estimated that the fiscal deficit will fall to 4.1% of gross domestic product in the year through March 2015 from 4.6% the previous year.


The output of eight core industries, having a combined weight of 37.90% in the Index of Industrial Production (IIP) recorded an increase of 2.3% in May 2013. The output has shown an increase of 3.3% for April-May 2014, data released by the government after trading hours on Monday, 30 June 2014, showed.


European stocks edged higher on Tuesday, 1 July 2014, as investors awaited reports on American and euro-area manufacturing. Key benchmark indices in UK, France and Germany were up 0.33% to 0.67%.


The euro-area unemployment rate was unchanged in May as the currency bloc struggled to shake off the legacy of the debt crisis. The jobless rate remained at 11.6% after the April number was revised down from 11.7%, the European Union's statistics office in Luxembourg said today.


German unemployment unexpectedly increased for a second month amid signs of a slowdown in Europe's largest economy. The number of people out of work rose a seasonally adjusted 9,000 to 2.916 million in June, the Nuremberg-based Federal Labor Agency said today.


UK manufacturing growth unexpectedly accelerated to the fastest pace in seven months as demand surged, adding to signs of a broadening recovery. An industry index rose to 57.5 in June from 57 in May, Markit Economics said today.


Asian stocks were mixed on Tuesday, 1 July 2014. Key benchmark indices in Indonesia, China, Japan and Taiwan rose 0.1% to 1.08%. Key benchmark indices in South Korea and Singapore were off 0.16% to 0.4%. Stock markets in Hong Kong and Thailand were closed for holidays.


China's manufacturing expanded in June at the fastest pace this year, adding to signs that the government's efforts to arrest a slowdown are helping to stabilize the world's second-biggest economy. The Purchasing Managers' Index was at 51, increasing from May's 50.8, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing.


A similar index from HSBC Holdings Plc and Markit Economics rose to 50.7 in June from the previous month's 49.4. Numbers above 50 signal expansion.


Trading in US index futures indicated that the Dow could gain 44 points at the opening bell on Tuesday, 1 July 2014. Most US stocks edged lower on Monday, 30 June 2014. The number of contracts to purchase previously owned US homes jumped 6.1% in May, the most in more than four years. Another data showed that the Institute for Supply Management-Chicago Inc.'s business barometer fell to 62.6 in June from 65.5 in May.


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