Market opens on firm note on positive Asian stocks
DATE: 12/09/2012
Key benchmark indices edged higher in opening trade on positive Asian stocks. The BSE Sensex was up 68.23 points or 0.38% to 17,921.18. Index heavyweight Reliance Industries (RIL) rose. Index heavyweight and cigarette maker ITC gained. The market breadth was strong.
July's industrial output data to be released today, 12 September 2012 will be closely watched. Industrial production is seen rising 0.4% in July 2012 as per the median estimate of poll carried out by Capital Market.
At 09:27 IST, the BSE Sensex was up 68.23 points or 0.38% to 17,921.18. The index gained 86.42 points at the day's high of 17,939.37 at the onset of the trading session. The index rose 56.18 points at the day's low of 17,909.13 in early trade.
The S&P CNX Nifty was up 14.30 points or 0.27% to 5,404.30. The index hit a high of 5,412.45 and a low of 5,403.95 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 978 shares rose and 346 shares fell. A total of 45 shares were unchanged.
The total turnover on BSE amounted to Rs 207 crore by 09:25 IST
Among the 30-share Sensex pack, 23 gained while the rest declined. Tata Motors (up 1.72%), Sterlite Industries India (up 1.17%) and Coal India (up 1.20%) edged higher from the Sensex pack.
Jindal Steel & Power (down 2.29%), Bhel (down 0.75%) and Bharti Airtel (down 0.63%) edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) rose 0.33% to Rs 792. RIL has bought back 3.9 crore shares for about of Rs 2793.51 crore till 4 September 2012 under its 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.
Indian Bank rose 0.73%. After market hours on Tuesday, the state-run bank said that lndfund Management has been merged with the bank. Earlier, the bank had announced on 2 February 2012 that the board of directors of the bank have accorded approval for a scheme of amalgamation of lndfund Management, a wholly owned subsidiary of the bank with Indian Bank.
The Reserve Bank of India (RBI) on Tuesday eased the external commercial borrowing (ECB) rules and hiked the maximum limit to $3 billion for one company. RBI also hiked the overseas borrowing cap to 75% of the company's last three-year average forex earnings. The foreign loan cap has also been raised to 75% of last three-year average forex earnings. ECB refers to commercial loans in the form of bank loans, buyers' credit, suppliers' credit, securitised instruments availed of from non-resident lenders with a minimum average maturity of three years. Last month, the Finance Ministry had liberalised the norms for raising funds through ECBs by domestic firms, particularly those in the realty sector. The High Level Committee on ECBs also permitted FIIs to invest up to $5 billion in rupee bonds within the overall corporate bond limit of $45 billion
+POWERED BY: CAPITAL MARKET NEWS
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