Benchmarks end higher; HUL earnings cheer

Indian equity indices made a jubilant start to the holiday shortened week with both the frontline indices recapturing their crucial 5,900 (Nifty) and 19,350 (Sensex) levels ahead of the Reserve Bank of India’s (RBI) monetary policy review later this week. The frontline gauges started the session on a positive note supported by firm regional peers but pared almost all of their gains in noon deals as uncertainty on the political front kept traders in check. Sentiments turned positive and both the gauges started gaining strength in late noon trade after International Monetary Fund (IMF), indicating India’s declining growth has bottomed out, said the country’s GDP is likely to improve to 5.7% in 2013 and further to 6.2% a year after. Adding to the optimism, there was a breakthrough in Govt-Opposition deadlock in Parliament and the Finance Bill is likely to be passed tomorrow.

The domestic markets, in the last leg of trade, picked up speed supported by firm opening in European markets as sentiments remained jubilant on expectation that central banks will continue their loose monetary policy stance. Meanwhile, the formation of a new government in Italy at the weekend, ending two months of political stalemate, added to the stronger sentiment with Milan's main stock index, the FTSE MIB, gaining over 1 per cent in early trade. Asian markets too ended the session mostly in green ahead of slew of economic data and central bank policy meetings in the euro zone and United States.

Back home, buying interest was visible in FMCG sector after FMCG major, HUL unveiled its annual results. The company has reported a rise of 41.06% in net profit for FY13 at Rs 3796.67 crore as compared to Rs 2691.40 crore in FY12. Company’s total income has increased by 17.96% at Rs 26417.11 crore for the year under review as compared to Rs 22394.68 crore for the previous year. Buying in software and technology stocks too supported the up-move with both the sectoral indices on the BSE rising by over a percentage point after rupee depreciated 15 paise to close at 54.37 on April 26, 2013 on month-end dollar demand from importers and heavy capital outflows. Realty and infra stocks too remained on the buyers’ radar as the government is considering a relaxation in external commercial borrowing (ECB) norms for raising funds through the ECB window, particularly for low-cost housing and infrastructure sectors like telecom and ports.

The NSE’s 50-share broadly followed index Nifty gained by over thirty points to regain its psychological 5,900 support level, while Bombay Stock Exchange’s Sensitive Index - Sensex rose by one hundred points to finish over its psychological 19,350 mark. The broader markets too traded with traction and ended the session with a gain of about half a percent.

The overall volumes stood at over Rs 0.96 lakh crore, which remained on the higher side as compared to that on Friday. The market breadth remained in favour of advances as there were 1,288 shares on the gaining side against 1,070 shares on the losing side, while 132 shares remain unchanged.

Finally, the BSE Sensex gained 100.78 points or 0.52% to settle at 19,387.50, while the CNX Nifty rose by 32.65 points or 0.56% to end at 5,904.10.

The BSE Sensex touched a high and a low of 19,428.94 and 19,284.40, respectively. The BSE Mid cap index up by 0.68% and Small cap index was up by 0.27%.

The top gainers on the Sensex were, Hindustan Unilever up by 6.98%, Wipro up by 3.57%, Hero MotoCorp up by 3.24%, Sterlite Industries up by 2.29% and ITC up by 1.69%, while Jindal Steel down by 4.24%, Coal India down 1.74%, Sun Pharma down 1.50%, HDFC down 0.99% and Tata Steel down by 0.80% were the top losers on the index.

The top gainers on the BSE Sectoral space were Consumer Durables up 2.43%, FMCG up 2.30%, Realty up 1.53%, Power up 1.44% and TECk up 1.04%, while Metal down 0.79% and Health Care down 0.08% were the top losers on the sectoral space.

Meanwhile, to find out whether bank employees are mis-selling gold-related investment products to customers, the Reserve Bank of India (RBI) is looking into sale of gold coins and gold-related investment products of around 30 banks. The central bank’s move follows the complaints of customers being induced by bank employees and non-staff members within bank premises for purchase of gold related products.

Further, the central bank is also examining whether such products are being sold as a pre-condition for offering the regular banking services. The central bank is also looking into complaints that bank staff is being pressurized by their senior officers to sell gold-related products in lieu of incentives.

Earlier, the RBI, in its successive Financial Stability Reports, highlighted the serious concerns over bank branches selling gold coins, mutual funds and insurance products. However, it has already proposed slew of measures like mandatory quoting of PAN numbers for high-value gold purchases, restriction on gold loans and check on NBFC branches dealing with gold loans.

Last month, the RBI had ordered an investigation into three private sector banks, ICICI Bank, HDFC Bank and Axis Bank, for alleged violation of money-laundering norms after a sting operation by a news portal claimed major lapses on this front at these banks.

The CNX Nifty touched a high and a low of 5,918.65 and 5,868.80 respectively. 

The top gainers on the Nifty were HUL up by 7.11%, Reliance Infra up 4.35%, IndusInd Bank up 3.68%, JP Associates up 3.00% and Hro MotoCorp up by 2.70%.

On the flip side, the top losers of the index were, Jindal Steel down by 3.95%, NMDC down by 2.33%, Coal India down by 1.93%, Sun Pharma down 1.63% and SBI down by 1.04%.

Most of the European markets were trading mixed, France’s CAC 40 up by 0.71%, the United Kingdom’s FTSE 100 down by 0.04% and Germany’s DAX up by 0.36%.

Asian shares ended mostly higher following a flat lead from Wall Street, where stocks ended on a subdued note on Friday on the back of disappointing report on US economic growth. South Korea's Kospi Composite market went home with red mark, ignoring gains in automakers stocks. Meanwhile, investors will focus on Thursday's ECB meeting for news of any rate cuts amid a slew of dismal economic numbers out of the euro zone.

Markets in mainland China and Japan were closed for holidays.