Markets end higher, HUL hits lifetime high

Benchmark share indices ended higher, amid a volatile trading session, led by strong upmove in FMCG major HUL, following a stake hike by parent company, Unilever PLC.

The Bombay Stock Exchange’s 30-share Sensex closed at 19,504 up 117 points. The National Stock Exchange’s 50-share S&P CNX Nifty closed up 26 points at 5,930.

On the global front, Asian stock indices ended higher on Tuesday amid hopes of aggressive monetary policy easing by the European Central Bank and US Federal Reserve to stimulate global growth.

MSCI's broadest index of Asia-Pacific shares outside Japan climbed as much as 1.1 percent to a seven-week high, putting the index on course for a monthly rise of 2.3 percent.

The US Federal Reserve starts a two-day policy meeting today and may consider renewing its commitment to bond-buying, according to economists.

Back home, the Lok Sabha Tuesday passed the Finance Bill for the 2013-14 fiscal with minor amendments, even as the main opposition Bharatiya Janata Party (BJP) walked out of the house protesting against Coalgate.

CBI Director Ranjit Sinha had last week filed an affidavit in the court saying that its probe report on coal allocation scam was shared with the law minister and joint-secretary level officials of Prime Ministerial Office and coal ministry, news report suggests.

The Chief Economic Advisor, Raghuram Rajan today said that Current Account Deficit (CAD) in the fourth quarter (Jan-March) 2012-13 would be below 4%. He also said that for the full financial year, 2013-14 it is likely to be below 5%.

On the sectoral front, BSE FMCG index surged by almost 5% followed by counters like Metal, Healthcare and IT, all gaining by 1%

each. However, BSE Realty index declined by 1%.

FMCG major Hindustan Unilever (HUL) surged over 17% to hit record high of Rs 585 after the company's foreign parent, Unilever PLC announced open offer to acquire 48.70 crore shares, or 22.52% stake in Hindustan Unilever at substantial premium to the ruling market price.

“Unilever PLC along with Unilever N.V. is making a voluntary open offer to acquire 487 million equity shares representing 22.52% of the total voting share capital from the public shareholders of Hindustan Unilever Limited at a price of Rs 600 per share,” HSBC Securities and Capital Markets (India), the manager of the open offer said on behalf of the company.

The open offer to buy stake in HUL may start in June. Currently, the promoters held 52.48% stake in HUL. Foreign Institutional Investors (FIIs) held 22.11% stake, followed by individual shareholders (13.94%) and domestic institutional investors (8.06%), while the remaining 3.41% stake are with bodies corporate and others.

Other notable gainers were Sterlite, M&M, Wipro, Wipro, CIL and DRL.

On the losing side, HDFC, HDFC Bank, Hindalco, L&T and Bajaj Auto fell between 1-2%.

Among other shares, KPIT Cummins Infosystems ended higher by 6% after the company forecasted about 16-20% growth in its net profit for the current financial year 2013-14 (FY14).

In the broader market, the mid-cap and small-cap indices ended mixed.

The overall market breadth ended weak as 1,271 stocks declined while 1,067 were advancing ones.