Sensex hits one-week high; ITC scales record high

The key benchmark indices surged, snapping four days' losses as world stocks rose and as a slide in crude oil prices from 2-1/2-year peak helped ease macroeconomic concerns. The barometer index BSE Sensex struck one-week high. The Sensex was provisionally up 466.34 points or 2.42%, up close to 635 points from the day's low. The market breadth, indicating the health of the market, was strong.

Bank shares rose across the board on expectation of good Q4 results. Capital goods and auto stocks rose on renewed buying. IT stocks rose ahead of IT bellwether Infosys' Q4 result on Friday, 15 April 2011. Cigarette maker ITC scaled a record high.

The market recovered after hitting 2-week low at the onset of the trading session, tracking recovery in Asian stocks. The market moved into the positive zone to hit fresh intraday high in morning trade. The market extended initial gains to hit fresh intraday high in mid-morning trade. The market trimmed gains in early afternoon trade. The market struck a fresh intraday high in afternoon trade. The Sensex extended gains in mid-afternoon trade. The barometer index surged to hit one-week high in late trade.

As per provisional figures, the BSE 30-share Sensex was up 466.34 points or 2.42% to 19,728.88. The Sensex rose 468.83 points at the day's high of 19,731.37 in late trade, its highest level since 6 April 2011. The Sensex shed 168.91 points at the day's low of 19,101.63 in early trade, its lowest level since 29 March 2011.

The S&P CNX Nifty was up 136.80 points or 2.36% to 5,922.50 as per provisional figures. The Nifty hit high of 5923.60 in late trade, its highest level since 8 April 2011. The Nifty hit low of 5,735.55 in early trade, its lowest level since 29 March 2011.

The market breadth, indicating the health of the market, was strong. On BSE, 1,941 shares advanced while 977 shares declined. A total of 93 shares remained unchanged. The breadth was negative at the onset of the trading session.

Among the 30-member Sensex pack, 28 advanced while only two of them declined.

BSE clocked turnover of Rs. 3373 crore, higher than Rs. 2588.21 crore on Monday, 11 April 2011.
Index heavyweight Reliance Industries (RIL) rose 1.36% to Rs. 1020.80, off the day's low of Rs. 998 as refining margins are seen rising on the back of high crude oil prices. RIL recently bagged two blocks in the ninth round of oil and gas block auctions held by the government.

ONGC gained 1.78% after chairman A. K. Hazarika was quoted by the media as saying that the company will sign an agreement during the week-end to purchase a 25% stake in the Satpayev exploration block in Kazakhstan. The government has approved a total investment plan of $400 million. This includes a signature bonus of $13 million and $80 million as a fee for taking the stake in the block. The rest will be spent on exploration activities.

IT stocks rose ahead of IT bellwether Infosys' Q4 result on Friday, 15 April 2011. India's second largest software services exporter Infosys Technologies rose 2.29%, with the stock gaining for the second straight day. The market has been abuzz with talks Infosys will give encouraging guidance for the year ending March 2012 (FY 2012) given underlying strong demand for offshore outsourcing. Infosys will give annual guidance for FY 2012 at the time of announcing Q4 March 2011 results on Friday.

India's largest software services exporter TCS advanced 2.23%. The company will announce Q4 result on 21 April 2011. India's third largest software services exporter Wipro gained 3.19%. The company will announce Q4 result on 27 April 2011.

Cigarette maker ITC rose 2.81% to Rs. 190.15 on expectations of good Q4 results. The stock hit record high of Rs. 190.50 today.

India's largest dam builder by sales Jaiprakash Associates surged 7.58% after executive chairman Manoj Gaur was quoted as saying the company aims to maintain a growth rate of 40% and aims to scale down debt significantly in the year ending March 2012 (FY 2012). It was the top gainer from the Sensex pack.

Bank shares rose across the board on expectation of good Q4 results. India's second largest private sector bank by net profit HDFC Bank rose 3.65%. The bank will announce Q4 result on 18 April 2011. India's largest private sector bank by net profit ICICI Bank gained 2.68%. The bank will announce Q4 result on 28 April 2011.

India's largest state run bank by net profit and branch network State Bank of India (SBI) edged up 1.46%. Pratip Chaudhuri has taken over as the new chairman of State Bank of India the state-run bank said on 7 April 2011. Chaudhuri, 57, has been working with State Bank for 37 years and takes over from O.P. Bhatt. Before taking up the top role, Chaudhuri was deputy managing director in the international banking division of thebank.

Capital goods stocks rose on renewed buying. Punj Lloyd, ABB, Larsen & Toubro, BEML and Bhel rose by between 0.85% to 5.38%.

Auto stocks rose on strong domestic demand. India's top small car maker by sales Maruti Suzuki rose 3.41%, with the stock snapping last four days' losses. The company announced last week that it would recall 13,157 diesel engine cars. The company said it would inspect the 'connecting rod bolt' for units of its Swift and Ritz model diesel cars with engines manufactured between 13 November 2010 and 4 December 2010.

Maruti Suzuki increased the prices of its products by 0.2% to 2.4% from 4 April 2011, depending on the models to offset rising costs of key inputs viz. steel, aluminum, copper and natural rubber.
India's largest truck maker by sales Tata Motors gained 2.61%, with the stock snapping last three days' slide. The company had hiked prices of some car models by Rs. 7,000 to Rs. 36,000 from 1 April 2011.

India's top tractor and utility vehicles maker by sales Mahindra & Mahindra rose 2.73% with the stock snapping last two days' fall. The company has reportedly raised prices on most of its models by 1.5% to 2% recently to offset higher commodity prices.

India's largest bike maker by sales Hero Honda Motors gained 6.34% with the stock snapping last two days' losses after company today declared an interim dividend of Rs. 70 per equity share for the year ended March 2011. Hero Honda's total sales rose 24.4% to 5.15 lakh units in March 2011 over March 2010. The monthly sales in March 2011 were record monthly sales.

India's second largest bike maker by sales Bajaj Auto rose 1.6% with the stock snapping last three days' losses. The company's total vehicle sales increased 12% to 3.07 lakh units in March 2011 over March 2010. The company announced its March 2011 sales figures on 4 April 2011.
The market was closed on Tuesday, 12 April 2011, on account of Ram Navmi. The near term major trigger for the market is Q4 March 2011 results which will start trickling in starting this week when IT bellwether Infosys unveils earnings on Friday, 15 April 2011. Investors will scrutinize post-result management commentary to gauge outlook on earnings at a time when rising salaries, raw materials prices and interest rates are pressurizing profit margins of India Inc.

European stocks rose Wednesday, boosted by strength in the auto sector and tracking gains in Asia, as investors looked to the next round of US earnings reports. The key benchmark indices in UK, Germany and France were up by between 0.78% to 0.84%.

Japanese stocks led recovery in Asian markets on Wednesday on reports Japan's Renesas Electronics Corp. would restart a key factory that was hit by last month's quake in June 2011, a month earlier than expected. The key benchmark indices in Japan, China, South Korea, Indonesia, Singapore, Hong Kong and Indonesia rose by between 0.55% to 1.56%.

Meanwhile, Japan's government on Wednesday downgraded its assessment of the economy for the first time in six months, saying it is showing weakness after a devastating earthquake and tsunami last month battered the northeast coast.

US stocks dropped on Tuesday on worries falling oil prices could set off a reversal in the high-flying energy sector, while Alcoa's leaner-than-expected revenue disappointed. US trade deficit shrank in February as a slowdown in demand both at home and abroad hit imports and exports. The trade gap totaled $45.8 billion, down 2.6% from January despite another monthly rise in oil prices to their highest since October 2008, the Commerce Department said on Tuesday.
Trading in US index futures indicated that the Dow could gain 45 points at the opening bell on Wednesday, 13 April 2011.

Back home, high global commodity prices will add to pressure on profit margins of Indian firms caused by rising salaries and higher interest rates. Investors can take some solace in a recent slide in crude oil prices from 2-1-/2-year highs.

A surge in crude oil prices over the past few months has sparked inflation and interest rate worries. The Reserve Bank of India (RBI) is seen raising key short term policy rates by 25 basis points at its annual 2011-2012 monetary policy review on 3 May 2011.

India imports majority of its crude oil requirements and high oil prices have raised concerns about widening account deficit. High oil prices have also raised concerns about higher oil subsidy bill for the government and its negative impact on the government's fiscal position. US crude futures were up 29 cents or 0.27% at 106.54 a barrel.

Industrial production rose 3.6% in February 2011, lower than market expectations of a 4.8% growth, data released by the government on Monday showed. Manufacturing output, which constitutes about 80% of the industrial production, rose an annual 3.5% in February 2011. January's industrial output annual growth rate was revised upwards to 3.9% from 3.7%.
The data of Wholesale Price Index for the month of March 2011 is due on Friday, 15 April 2011. A Capital Market poll pegs a median rate of rise in inflation at 8.4% in March 2011, higher than an annual rise of 8.3% in February 2011.

The International Monetary Fund has marginally cut its 2011 economic growth forecast for India to 8.2% from 8.4% as persistent inflation pressure forced aggressive monetary tightening.
Good monsoon this year could help ease food inflation and boost rural income. Recent reports indicate that India will receive good rains during the July-September monsoon season this year.

The India Meteorological Department (IMD) will give its first official forecast for the June to September monsoon on 19 April 2011.

India Infoline

Sensex, Nifty strike 9-week highs on revival of FII inflow

The key benchmark indices surged extending rally into the seven days on revival in foreign equity inflows and on firm Asian stocks. The barometer index BSE Sensex and the 50-unit S&P CNX Nifty struck 9-week highs. The market breadth was strong. Shares of PTC India Financial Services were trading at about 10% discount to its initial public offer price on debut.

As per provisional figures, foreign institutional investors (FIIs) bought shares worth Rs.1291.54 crore on Tuesday, 29 March 2011. FII inflow totaled Rs. 4483.95 crore in six trading sessions from 22 March 2011 to 29 March 2011 as per data from the stock exchanges.

Cooling of oil prices from recent 2-1/2-year high has helped ease inflation worries, aiding rally in Indian stocks. Oil declined as signs of rising US crude supplies stoked speculation that demand may falter in the world's biggest consumer of the commodity. US crude futures were down 43 cents a barrel or 0.41% to $104.36 a barrel. Oil rose in New York on Tuesday, 29 March 2011, as troops loyal to Muammar Qaddafi dug in to block rebels advancing on his hometown of Sirte. Prices have climbed 23 percent since anti-government protests began on 15 February 2011 in Libya, cutting output in Africa's third-largest producer by two-thirds.

India imports majority of its crude oil requirements and a surge in crude oil prices to 2-1/2-year highs recently had sparked inflation and interest rates worries.

At 09:20 IST, the BSE 30-share Sensex was up 126.29 points or 0.66% to 19,247.09. The Sensex gained 152.80 points at the day's high of 19,273.60 in early trade, its highest level since 25 January 2011. The index rose 57.97 points at the day's low of 19,178.77 in early trade.

The S&P CNX Nifty was up 38.20 points or 0.67% to 5,774.55. The Nifty a high of 5,779.95, its highest level since 25 January 2011.

The market breadth, indicating the health of the market, was strong. On BSE, 950 shares advanced while 252 shares declined. A total of 36 shares remained unchanged.

The total turnover on BSE amounted to Rs. 153 crore by 09:25 IST.

All the 30 members from the Sensex pack logged gains. DLF (up 1.44%), TCS (up 1.22%), and Hero Honda Motors (up 1.14%), edged higher from the Sensex pack.

Index heavyweight Reliance Industries (RIL) rose 0.49% to Rs. 1027.70 on reports the firm was awarded two blocks in the ninth round of oil and gas block auctions closed on Monday, 28 March 2011.

India's largest oil exploration firm ONGC rose 1.31% on reports a consortia led by ONGC won 10 blocks in the ninth round of oil and gas block auctions closed on Monday.

India's largest power utility firm by capacity NTPC rose 0.72%. After market hours on Tuesday, 29 March 2011, NTPC said that the unit number 3 of 500 megawatt of Simhadri Super Thermal Power Project has been successfully synchronised with grid on 29 March 2011 on coal firing.

Shares of PTC India Financial Services were trading at Rs. 25.25, a 9.82% discount to the initial public offer price of Rs. 28 on their debut.

Volatility may remain high on the bourses in the near term ahead of the expiry of derivative contracts for the near-month March 2011 series on Thursday, 31 March 2011. The near term major trigger for the market is Q4 March 2011 results which will start trickling in from about mid-April 2011

Billionaire investor and international investment icon Warren Buffett who was in his maiden visit to India last week said that he hopes to spend some money in India. His firm Berkshire Hathaway is looking to park funds in large investment destinations and India fits the bill perfectly, he said. India, according to him, is not an emerging market but a very big country with a large number of significant businesses. He said that Berkshire Hathaway would look at possible acquisitions in India as and when there were opportunities.

Asian stocks rose on Wednesday as Japanese companies resumed production following the 11 March 2011 earthquake and on speculation economic recovery in the US will boost earnings. The key benchmark indices in Hong Kong, Taiwan, South Korea Singapore, Japan and Indonesia were up by between 0.64% to 1.37%. China's Shanghai Composite slipped 0.45%.

US markets closed higher on Tuesday on gains in telecom and energy companies. The Dow Jones Industrial Average finished with a gain of 81.13 points, or 0.67%, to 12279.01, while the Standard & Poor's 500-stock index gained 9.25 points, or 0.71%, to finish at 1319.44 and the Nasdaq Composite gained 26.21 points, or 0.96%, to 2756.89.

Trading in US index futures indicated that the Dow could rise 10 points at the opening bell on Wednesday, 30 March 2011.

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Asia Stocks Fall, Japan Bonds Gain on Growth, Nuclear Concerns

Asian stocks fell for a second day as Japan struggled to contain a meltdown at a nuclear power plant. Japanese government bonds advanced and crude oil declined on concern growth will cool in the world’s third-largest economy.

The MSCI Asia Pacific Index was 0.2 percent lower at 133.34 as of 1:14 p.m. in Tokyo, having earlier retreated as much as 0.9 percent. The Nikkei 225 (NKY) Stock Average fell 0.4 percent. The yield on Japan’s benchmark 10-year debt dropped from a one-week high. The S&P GSCI Index of 24 raw materials slid for a third day as oil slid to a one-week low in New York. Standard & Poor’s 500 Index futures added 0.2 percent.

Stocks are retreating after Goldman Sachs Group Inc. cut its forecast for economic growth in Japan, where radiation levels that can prove fatal were detected outside the Fukushima Dai-Ichi plant’s reactor buildings. In the U.S., data is forecast to show consumer confidence fell this month for the first time since September. President Barack Obama defended his decision to commit U.S. forces in Libya as rebels advanced on leader Muammar Qaddafi’s hometown of Sirte.

“The situation at the nuclear plant isn’t getting better,” said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co., which oversees about $104 billion. “We still don’t know how much of a negative effect it’ll have on the economy. The uncertainty is very negative for stocks.”

Losses on MSCI’s Asian index were capped as companies including Brilliance China Automotive Holdings Ltd. (1114) and Anhui Conch Cement Co. reported profits that topped analyst estimates. Brilliance China, the Chinese partner of Bayerische Motoren Werke AG, jumped 7.8 percent in Hong Kong trading, while Anhui Conch, China’s biggest cement maker, rallied 5.6 percent.

Japan’s Economy

Mizuho Financial Group Inc. (8411), Japan’s third-largest bank by market value, sank 2.8 percent. Goldman Sachs said today the country’s economy will shrink next quarter and lowered its growth forecast for the fiscal year starting April 1 to 0.7 percent from 1.3 percent.

Japanese data released today showed unemployment fell and retail sales rose in February, before the nation’s biggest earthquake on record and an ensuing tsunami left 28,000 people dead or missing, flattened homes and crippled the nuclear plant. The ruling party may scrap a proposed corporate-tax cut and boost levies on individuals to pay for earthquake reconstruction and reduce the need to step up bond sales, officials said.

The yield on Japan’s benchmark 10-year bond declined 1.5 basis points to 1.23 percent at Japan Bond Trading Co. A basis point is 0.01 percentage point.

Government Spending

“It remains to be seen how the nuclear issue will affect stocks, and the extent of the earthquake damage is still unknown,” said Keiko Onogi, a Tokyo-based fixed-income strategist at Daiwa Securities Capital Markets Co. “We hear talk about how much the government may need to spend, but nothing has been finalized.”

The yen weakened against most of the 16 most actively traded currencies, slipping 0.1 percent to 115.15 per euro. It traded at 81.75 against the dollar, after yesterday touching 81.85, the weakest level since March 18.

Treasury five-year notes snapped an eight-day decline before the release of the Conference Board’s consumer confidence index, which is forecast to fall to 65 from 70.4 in February, according to the median estimate in a Bloomberg survey of economists. A separate survey showed the S&P/Case-Shiller index of property values in 20 U.S. cities probably fell 3.2 percent in January from a year earlier.

U.S. index futures fluctuated after the S&P 500 fell 0.3 percent yesterday, snapping a three-day gain. Halliburton Co. (HAL) dropped 2.1 percent in late trading after the world’s second- largest oilfield-services provider said disruptions in the Middle East and North Africa will “severely” affect first- quarter results, reducing earnings to a range of 3 cents to 4 cents a share.

Libya Offensive

Oil for May delivery slipped 0.6 percent to $103.41 a barrel on the New York Mercantile Exchange, extending a three- day, 1.7 percent slump. Brent crude oil declined 0.4 percent to $114.31 a barrel on the London-based ICE Futures Europe exchange.

The advance by Libyan rebels on Sirte extends their offensive along the coast, where over the weekend they recaptured the oil ports of Brega and Ras Lanuf, helped by the U.S.-led aerial bombardment of government positions. Obama said the decision to take military action was necessary to avert “a massacre that would have reverberated across the region and stained the conscience of the world.”

The S&P GSCI index declined 0.4 percent. Immediate-delivery platinum declined 0.3 percent to $1,739.35 an ounce and gold slid 0.1 percent to $1,418.50 an ounce, after earlier dropping to $1.417. Silver lost 0.5 percent to $36.9450 an ounce.

To contact the reporters on this story: Shiyin Chen in Singapore at schen37@bloomberg.net; Anna Kitanaka in Tokyo at akitanaka@bloomberg.net

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net

bloomberg.com

Asia stocks rise on Japan progress; yen softer

Japanese stocks jumped nearly 4% on Tuesday amid reports of progress in containing radiation from an earthquake-damaged nuclear plant, and the yen was broadly softer on the possibility of further intervention by major central banks.

Shares elsewhere in Asia posted modest gains, after bouncing on Monday when Tokyo markets were closed for a holiday.

US stocks rose around 1.5% on Monday, buoyed by AT&T's move to buy Deutsche Telecom.

Oil prices were steady, following a 1% rise in the previous session as widening unrest in the Middle East intensified fears of supply disruptions.

Tokyo's Nikkei share average was up 3.9% in early trade, while Nikkei futures on the Osaka Stock Exchange leapt 3.4%.

The Nikkei remained down around 7% on its close on March 11, the day northeastern Japan was struck by a massive 9.0 magnitude earthquake and tsunami that left at least 21,000 people dead or missing and crippled a nuclear power plant.

Benchmark 10-year Japanese Government Bond futures fell 0.28 point to 139.46.

The yen traded around 81.20 to the dollar and eased against the euro to around 115.45.

Last week, expectations of massive repatriations to pay for quake reconstruction drove the Japanese currency to a record 76.25 to the dollar before a rare intervention by the Group of Seven rich nations on Friday to curb its appreciation.

US crude oil futures edged up 8 cents to USD 102.41 a barrel and Brent crude rose the same amount to USD 115.04.

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