Market opens higher on positive Asian stocks

Key benchmark indices cut initial gains triggered on positive Asian stocks. Index heavyweight and cigarette major ITC rose in early trade. Reliance Industries edged higher in early trade. The S&P BSE Sensex was up 106.92 points or 0.56%, off 70.08 points from the day's high and up 35.99 points from the day's low. The market breadth, indicating the overall health of the market, was strong.

Foreign institutional investors (FIIs) sold shares worth a net Rs 705.06 crore on Wednesday, 3 July 2013, as per provisional data from the stock exchanges.

At 9:30 IST, the S&P BSE Sensex was up 106.92 points or 0.56% to 19,284.68. The index gained 177 points at the day's high of 19,354.76 in early trade. The index rose 70.93 points at the day's low of 19,248.69 in early trade.

The CNX Nifty was up 33.50 points or 0.58% to 5,804.40. The index hit a high of 5,831.50 in intraday trade. The index hit a low of 5,791.35 in intraday trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 655 shares gained and 247 shares fell. A total of 39 shares were unchanged.

The total turnover on BSE amounted to Rs 129 crore by 09:30 IST.

Among the 30-share Sensex pack, 26 stocks gained and rest of them declined.

Index heavyweight and cigarette major ITC rose 0.93% to Rs 329.30

Reliance Industries (RIL) rose 0.7% to Rs 856.25. The government on 27 June 2013 agreed to double natural gas prices to industrial and retail consumers to help fund investment in exploration and reverse declining domestic gas output. The price of gas could go up to $8.4 per million metric British thermal units (mmBtu), effective 1 April next year, from current $4.2 mmBtu.

Mahindra & Mahindra (M&M) rose 0.20%. The company on Wednesday, 3 July 2013 announced that it has successfully placed a NCD series of 50-year maturity for Rs 500 crore on private placement basis. The NCDs will be unsecured, rated, listed, redeemable at the end of 50th year and will carry a coupon of 9.55% per annum payable annually. This is the first ever INR-denominated NCD issue with a 50-year bullet maturity offered by an Indian corporate. The successful placement of the NCDs is testimony to the unassailable reputation and credit worthiness of M&M. The proceeds of this issue will be used for capex, long term working capital requirements and refinancing of loans taken for capital expenditure. Credit Rating agencies, CRISIL and ICRA have assigned AA+/stable rating to the issue.

Bajaj Auto shed 0.82% as the stock turned ex-dividend today, 4 July 2013, for dividend of Rs 45 per share for the year ended 31 March 2013 (FY 2013).

Bank of India rose 0.79%. The state-run bank said after market hours on Wednesday, 3 July 2013, that it has decided to reduce its base rate from the existing 10.25% per annum to 10% per annum with effect from 8 July 2013.

Bajaj Finserv fell 1.12% as the stock turned ex-dividend today, 4 July 2013, for dividend of Rs 1.50 per share for the year ended 31 March 2013 (FY 2013).

Bajaj Holdings & Investment declined 2.09% as the stock turned ex-dividend today, 4 July 2013, for dividend of Rs 25 per share for the year ended 31 March 2013 (FY 2013).

Bajaj Finance fell 0.86% after the stock turned ex-dividend today, 4 July 2013, for dividend of Rs 15 per share for the year ended 31 March 2013 (FY 2013).

Canara Bank lost 2.57% after turning ex-dividend today, 4 July 2013, for dividend of Rs 13 per share for the year ended 31 March 2013 (FY 2013).

Kotak Mahindra Bank rose 0.75%. The stock turned ex-dividend today, 4 July 2013, for dividend of 70 paise per share for the year ended 31 March 2013 (FY 2013).

Ashok Leyland slipped 1.24% as the stock turned ex-dividend today, 4 July 2013, for dividend of 60 paise per share for the year ended 31 March 2013 (FY 2013).

Mahindra & Mahindra Financial Services rose 1.63%. The stock turned ex-dividend today, 4 July 2013, for total dividend of Rs 3.60 per share for the year ended 31 March 2013 (FY 2013).

United Phosphorus shed 0.56% as the stock turned ex-dividend today, 4 July 2013, for dividend of Rs 2.50 per share for the year ended 31 March 2013 (FY 2013).

Meanwhile, the government finally cleared an ambitious Rs 1.25 trillion food security plan, promising subsidized food to two out of every three Indians. The move is expected to help it gain significant political support in the run-up to the 2014 general election, although it may stretch the fiscal deficit.

Asian stocks edged higher on Thursday, 4 July 2013, after better-than-expected US economic data spurred gains on Wall Street, while a strengthened yen dragged on Japanese shares. Key benchmark indices in Hong Kong, Indonesia, South Korea, China, Taiwan and Singapore were up 0.09% to 1.81%. Japan's Nikkei 225 index shed 0.03%.

US stocks closed higher Wednesday in advance of the Independence Day holiday, as positive jobs data countered international concerns in the abbreviated trading session.

Meanwhile, the European Central Bank is widely expected to keep interest rates on hold after a monetary policy review today, 4 July 2013. The Bank of England also holds its monetary policy review today, 4 July 2013.