IT major Infosys rose ahead of its Q2 September 2012 earnings tomorrow, 12 October 2012. Realty major DLF rose on bargain hunting after recent steep slide. Unitech galloped over 17% on massive volumes after the realty major said it has reached an agreement with Telenor to amicably settle all disputes with Telenor. Bank stocks edged higher in volatile trade. Suzlon Energy dropped on high volume as the company failed to get a four-month extension of the maturity dates of the two series of Foreign Convertible Currency Bonds (FCCBs) due in October 2012.
FMCG stocks rose on favourable outlook for Rabi or winter crop following wide-spread rains in August and September, with FMCG giant Hindustan Lever hitting record high. Tata Global Beverages scaled record high. Capital goods pivotals were in demand. Metal stocks edged higher as metal prices rose on the London Metal Exchange.
Key benchmark indices reversed initial gains on weak Asian stocks. The share market Sensex alternately swung between positive and negative zone in morning trade. Key benchmark indices hovered in red in mid-morning trade as weakness in Asian shares dampened investor sentiment. Key benchmark indices remained in negative zone in early afternoon trade. The Sensex reversed intraday losses in afternoon trade as European stocks edged higher in early trade there. The market surged in mid-afternoon trade. The market extended gains in late trade.
Provisional data showing that foreign institutional investors (FIIs) remained buyers of Indian stocks on Wednesday, 10 October 2012, boosted sentiment. Foreign institutional investors (FIIs) bought shares worth a net Rs 407.60 crore on Wednesday, 10 October 2012, as per provisional data from the stock exchanges.
As per provisional closing, the BSE Sensex was up 198.97 points or 1.07% to 18,830.07. The index jumped 216.71 points at the day's high of 18,847.81 in late trade, its highest level since 9 October 2012. The index lost 49.61 points at the day's low of 18,581.49 in morning trade, its lowest level since 27 September 2012.
The S&P CNX Nifty was up 55.90 points or 0.99% to 5,708.05. The index hit a high of 5,721.10 in intraday trade, its highest level since 9 October 2012. The index hit a low of 5,636.95 in intraday trade, its lowest level since 5 October 2012.
The market breadth, indicating the overall health of the share market, was positive. On BSE, 1,693 shares rose and 1,202 shares fell. A total of 139 shares were unchanged.
The total turnover on BSE amounted to Rs 2463 crore, higher than Rs 2054 crore on Wednesday, 10 October 2012.
From the 30-share Sensex pack, 26 stocks rose while only four of them fell.
Index heavyweight Reliance Industries (RIL) rose 0.53% to Rs 820.50. The scrip hit a high of Rs 821.80 and low of Rs 809.05 so far during the day. RIL last week signed a 15 year heavy crude oil supply contract and a memorandum of understanding with Venezuelan state-run oil company Petroleos de Venezuela SA (PDVSA) for further development of Venezuelan heavy oil fields. PDVSA will supply between 300,000 to 400,000 barrels per day of Venezuelan heavy crude oil to RIL's two refineries in Jamnagar under a 15 year crude oil supply contract. As per the MoU with PDVSA, RIL is to explore upstream options for joint participation in heavy oil projects of the Orinoco Oil Belt. RIL will also co-operate with Petroleos by providing technical assistance in areas of offshore upstream, refining and other downstream projects.
Meanwhile, RIL has purchased 3.9 crore shares and spent Rs 2794.73 crore (excluding brokerage, service tax, Securities Transaction Tax, Stamp Duty, Exchange Transaction Charges and Sebi fees) till 18 September 2012 under the company's ongoing share buyback program. RIL has set maximum buyback price of Rs 870 per share. The company has set aside Rs 10440 crore for share buyback. The buyback program opened on 1 February 2012 and closes on 19 January 2013. RIL chairman Mukesh Ambani said at the company's Annual General Meeting in June 2012 that the company's buyback program represents a highly accretive use of cash by the company and it will supplement earnings growth from operations, for higher EPS (earnings per share), in the near future.
FMCG stocks rose on favourable outlook for Rabi or winter crop following wide-spread rains in August and September. FMCG firms derive substantial revenue from rural India. Winter crops will gain from high soil moisture and brimming water reservoirs.
India's largest FMCG company by sales Hindustan Unilever (HUL) rose 0.7% to Rs 568.25. The stock hit record high of Rs 571.50 in intraday trade today, 11 October 2012.
Tata Global Beverages rose 2.47% to Rs 160 after striking a record high of Rs 161.25 in intraday trade today, 11 October 2012. Tata Starbucks -- an equal joint venture between Tata Global Beverages and Starbucks Coffee Company -- on 27 September 2012 confirmed that the first store in India will open in Mumbai by the end of October 2012. The store will also be the first Starbucks location to feature espresso sourced and roasted locally from India through the coffee sourcing and roasting agreement with Tata Coffee, Tata Global Beverages said at that time. Tata Starbucks will own and operate Starbucks cafés in India.
