Indian Markets advance - AXIS DIRECT

Local markets advanced in the week ended Friday, 8 March 2013 as world stocks rose on bullish economic data in the US and China, the world's no 1 and 2 economies. The barometer index, the 30-share S&P BSE Sensex, attained its highest closing level in more than 4-1/2 weeks. The 50-unit CNX Nifty attained its highest closing level in more than 4 weeks. Indian stocks gained in four out of five trading sessions in the week ended Friday, 8 March 2013. The BSE Mid-Cap and the BSE Small-Cap indices underperformed the Sensex during the week.

In the week ended Friday, 8 March 2013, the 30-share S&P BSE Sensex advanced 764.71 points or 4.04% to 19,683.23. The 50-unit CNX Nifty gained 226 points or 3.95% to 5,945.70.

The S&P BSE Mid-Cap index gained 2.63% and the S&P BSE Small-Cap index advanced 2.23%. Both these indices underperformed the Sensex.

From 30-share Sensex pack, 27 stocks gained and only three of them declined in the week ended Friday, 8 March 2013.

Hindustan Unilever (down 3.25%) and NTPC (down 0.43%) edged lower from the Sensex pack.

Cipla (up 5.93%), Dr Reddy's Laboratories (up 4.74%) and HDFC (up 4.55%) edged higher from the Sensex pack.

Index heavyweight and cigarette major ITC advanced 2.37% to Rs 297.80. The government raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14 which was unveiled on Thursday, 28 February 2013.

The Ministry of Health & Family Welfare has suggested to the Department of Revenue, Ministry of Finance to increase taxes on all tobacco products and also to impose 'sin tax' on tobacco products, the proceeds of which can be used for tobacco control. The Ministry of Health & Family Welfare, alongwith WHO Country Office for India, also organized a 'National Consultation on Economics of Tobacco' in December 2012. This information was given by Minister for Health & Family Welfare Shri Ghulam Nabi Azad in written reply to a question in the Lok Sabha on Friday, 8 March 2013.

Bank stocks advanced. ICICI Bank rose 7.79%. The private sector bank on 5 March 2013 said that it has received aggregate capital repatriation of $100 million from ICICI Bank UK PLC -- its wholly owned banking subsidiary in the United Kingdom. HDFC Bank gained 5.7%. The bank said on Thursday, 7 March 2013, that it has raised $500 million by way of Fixed Rate Senior Unsecured Notes (Notes) under its $1 billion Medium Term Note Programme on 6 March 2013. The Notes carry a coupon of 3% per annum payable semi annually and will mature on 6 March 2018. The Notes will be listed on the Singapore Stock Exchange, HDFC Bank said. PSU banking giant State Bank of India rose 5.49%. The Finance Minister on 28 February 2013 said that the government will provide Rs 14000 crore for capital infusion in public sector banks in FY 2014.

L&T surged 6.86%. The company during trading hours on Friday, 8 March 2013, said that its strategic business unit viz. L&T Integrated Engineering Services (L&T IES) recently inaugurated its offshore development centre (ODC) for Calsonic Kansei (CK) at Chennai. This partnership initiative called Calsonic Kansei Engineering Centre India-L&T (CECI-L&T) will extend CK's presence in India by replicating their engineering function to support project development, L&T said in a statement. Over the initial phase of five years, CECI-L&T will focus on expansion and optimisation of activities in this facility.

IT stocks rose on positive economic data in the United States, the biggest outsourcing market for the Indian IT firms.

TCS rose 5.64% to Rs 1,584.15. The stock had hit record high of Rs 1,598 in intraday trade Thursday, 7 March 2013. India's third largest software services exporter by revenues Wipro rose 5.66% to Rs 445.05. The stock hit a 52-week high of Rs 455.80 in intraday trade on Friday, 8 March 2013.

Infosys gained 2.12% to Rs 2,970.20. The stock had hit 52-week high of Rs 3,009.90 in intraday trade on Thursday, 7 March 2013. The company on Thursday, 7 March 2013, said that Accor, the world's leading hotel operator and market leader in Europe, has deployed the Infosys' CommerceEdge platform to provide its customers with a social travel shopping experience.

Mahindra & Mahindra (M&M) rose 1.78%. The company said before market hours on Friday, 8 March 2013, that the tool down strike by employees of the company's Nashik plant which started on 5 March 2013 as well as the proposed strike from 11 March 2013 has been called off. Operation in all shifts is expected to be normal soon, M&M said in a statement. The management and union will continue their ongoing dialogue so as to reach a mutual agreement, M&M said. The management expects the production loss to be made good, M&M said.

Tata Motors rose 5.23%. Tata Motors on Wednesday, 6 March 2013, announced a scheme whereby customers can swipe their credit card and drive out in a Tata Nano on the same day. Making the offer irresistible, customers can also convert the entire amount in monthly installments at 0% interest, over a period of 12 months, at an EMI of Rs 8,333 per lakh, Tata Motors said in a statement on 6 March 2013.

The Reserve Bank of India (RBI) on 5 March 2013 said that companies which are being investigated by law enforcement agencies no longer need to get its approval to raise money overseas. Previously, companies being investigated by the Directorate of Enforcement, for instance, needed to get their external commercial borrowing proposals cleared by the RBI.

Finance Minister P. Chidambaram on Monday, 4 March 2013, said that the government will soon announce more measures -- including sops for exporters -- to boost economic growth. Some of these steps will be announced in parliament during the debate on the Budget, Chidambaram told industry representatives at a customary address held on Monday, 4 March 2013, after the budget announcement on 28 February 2013.

Source : Equity Bulls

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