Indian markets close at highest level in 2013

Friday turned out to be a tremendous session of trade for the Indian equity markets with both the domestic bourses ending not only near their high point of day’s trade but also closed to their highest level in 2013. After a flat opening, key domestic benchmarks gained some strength after India’s annual industrial output growth measured by index of industrial production (IIP) grew by 2.5% for the month of March 2013, not only higher than the previous month’s figure of 0.6%, but also higher than street’s expectation, mainly on the back of manufacturing sector. Manufacturing, which constitutes about 75.53% of industrial production, grew 3.2% from a year earlier. Meanwhile, electricity sector too expanded 3.5% from a year earlier. However, mining sector, continuing to show contraction stood at 2.9% for the reporting month.  Capital goods production, an indicator for investments in the economy, also grew an annual 6.9% from a year earlier.

Local markets extended their rally in second half supported by positive opening in European counters which hit fresh five-year highs on Friday, continuing to draw support from central bank stimulus, and with steelmaker ArcelorMittal and telecoms group BT jumping on strong earnings. Asian markets too exhibited a decent close with most of the indices closing in green led by Japanese equities, which soared to fresh five-year highs as the dollar breaks above the symbolic 100 yen level.

Back home, the up-move was also supported by stellar Q4 numbers reported by NTPC. The company reported a rise of 68.93% in its net profit at Rs 4381.16 crore in Q4FY13 as compared to net profit of Rs 2593.44 crore in the same quarter previous year. Total income of the company has increased by 6.03% to Rs 17349.09 crore as compared to Rs 16361.51 crore in corresponding quarter last year. Some support also came in from buying in software and technology counters after the rupee depreciated by 37 paise to 54.62 against the dollar on the Interbank Foreign Exchange market due to appreciation of the US currency against other currencies overseas.

Meanwhile, shares of state owned oil marketing companies (OMC) viz. IOC, BPCL and HPCL too remained on the buyers’ radar on report that they may hike prices of diesel by Rs 0.90-1 per liter later today. Additionally, shares of media mainly those engaged in broadcasting business were in demand after New Delhi Television (NDTV) reported a robust earnings for the fourth quarter ended March 31, 2013 (Q4). The company reported a consolidated net profit of Rs 27.8 crore for Q4 against a net loss of Rs 41.30 crore in the corresponding quarter of the previous financial year.

The NSE’s 50-share broadly followed index Nifty rose by about forty five points to hold its psychological 6,050 support level, while Bombay Stock Exchange’s Sensitive Index - Sensex surged by over fifty and ended tad below its psychological 20,100 mark. The broader markets too traded in-line with benchmarks and snapped the session in green terrain.

The overall volumes stood at over Rs 1.54 lakh crore, which remained on the higher side as compared to that on Thursday. The market breadth was evenly divided as there were 821 shares on the gaining side against 885 shares on the losing side, while 69 shares remain unchanged.

Finally, the BSE Sensex gained 143.58 points or 0.72% to settle at 20,082.62, while the CNX Nifty rose by 44.60 points or 0.74% to end at 6,094.75.

The BSE Sensex touched a high and a low of 20,119.14 and 19,908.80, respectively. The BSE Mid cap index up by 0.19% and Small cap index was down by 0.22%.

The top gainers on the Sensex were, Maruti Suzuki up by 3.99%, Tata Motors up by 2.92%, Hindalco up by 2.71%, ITC up by 2.47% and Mahindra & Mahindra up by 2.33%, while Coal India down by 2.96%, Jindal Steel down 2.00%, Sun Pharma down 1.40%, NTPC down 0.83% and Reliance down by 0.73% were the top losers on the index. 

The top gainers on the BSE Sectoral space were Auto up 2.20%, Consumer Durables up 2.03%, FMCG up 1.42%, Bankex up 1.23% and PSU up 0.41%, while Power down 0.30% and Metal down 0.22% were the top losers on the sectoral space.

Meanwhile, the proposed Mines Act 1952 (amendments) has been referred to the Group of Ministers (GoM) for consideration following members of the Cabinet expressed different views on making the Chief Executive or the Chairman responsible for mishaps as proposed in the Labour Ministry's bill.

As per the Mining Act 1952, in case of an accident, a clause in the Mining Act provides for heavy fines and long term imprisonment of managers of the mines for violation of safety norms. Therefore, the members are of the view that the issue should be left to the board to decide on whom to nominate for liability in case of an accident.  

The Bill also proposes to amend and consolidate the law relating to regulation of condition of work and welfare of persons employed in mines and for the matter connected therewith. The Act was last amended in 1983 and subsequent to the amendments, several developments in the area of technology, scale of operations, working environment and work practices in coal, non-coal and oil sector have taken place and thus forced the government to further amend it.

The CNX Nifty touched a high and a low of 6,105.30 and 6,045.60 respectively. 

The top gainers on the Nifty were Maruti up by 4.41%, IndusInd Bank up 3.14%, Tata Motors up 2.93%, ITC up 2.79% and ACC up by 2.46%.

On the flip side, the top losers of the index were, Coal India down 2.90%, Jindal Steel down 2.16%, PNB down 1.92%, NTPC down 1.82% and Ultratech Cement down by 1.59%.

The European markets were trading in green, France’s CAC 40 up by 0.82%, the United Kingdom’s FTSE 100 up by 0.62% and Germany’s DAX up by 0.66 points.

Asian equity markets ended mostly up with Japanese stocks jumped to their highest level in over five years after the dollar surged above the 100 yen mark and US jobs data boosted sentiment. Bucking the trend Seoul market closed lower amid worries among South Korean automakers about the weak yen cheapening Japan's exports. Chinese market ended higher as heavyweight bank and real estate stocks gained on expected solid profit growth. Hong Kong shares finished trade on firm note, following impressive gains of other bourses.