Markets end higher on strong HUL, Hero Moto results

FMCG shares lead gains, IT, realty also end in green

Markets ended higher, helped by FMCG shares after HUL came out with its annual results. The Nifty crossed 5,900 levels in late trades, ending finally at 5,904 - up 33 points. Sensex ended up 101 points at 19,388.

Broader markets were also in the green. The BSE mid-cap index added 0.6% at 6,318. Small-cap index added 0.2% at 6,040.

On the global front, Asian shares inched ahead while the dollar lost ground as investors counted on easy money from central banks in the euro zone and United States to offset the risk of further disappointment from global economic data. Activity was sporadic with Japanese markets closed for a holiday and China off until Thursday. The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.3%, but off a six-week high touched on Friday. European markets were trading higher in early trade. Key benchmark indices in UK, France and Germany were up by 0.23% to 1.01%.

Foreign institutional investors (FIIs) bought shares worth a net Rs 224.75 crore on Friday as per provisional data from the stock exchanges.

Back home, there was a breakthrough in Govt-Opposition deadlock in Parliament, government sources said today, adding that the Finance Bill will likely be passed tomorrow.

BSE FMCG index surged 2.5% at 7,252 after Hindustan Unilever reported the annual results earlier in the day. BSE consumer durables, realty, power and IT indices added 1-2.3% each. BSE auto index added 0.5% at 10,905.

"Auto stocks have been rallying smartly since last couple of weeks. Though the short term trend is up it is highly vulnerable to reversal as the medium term trend for the Auto sector is down. Heromotocorp, Maruti Suzuki & Tata Motors have achieved their short term targets; so one should avoid aggressive long position in these stocks," said Gaurav Ratnaparkhi, technical analyst, Sharekhan.

On the other hand, BSE metal index shed 0.8% at 8,569. Capital goods and healthcare indices also traded on a subdued note.

Hindustan Unilever (HUL) moved higher by 7% to Rs 498, bouncing back 7.4% from its intra-day low, after reporting a better-than-expected 18% year-on-year (yoy) jump in standalone net profit at Rs 787 crore for the quarter ended March (Q4), on back of strong volume growth. Income from operations grew 12% at Rs 6,466 crore on yoy basis. Analysts on an average had expected sales of Rs 6,360 crore and profit of Rs 770 crore from fast moving consumer goods (FMCG) major.

“HUL delivered healthy set of numbers for 4QFY2013.  The most positive aspect of the result is the 6% yoy volume growth posted by the company for the quarter. HUL managed to revive the volume growth, by passing on some benefits of reduction in raw material costs to customers by way of price cuts and increased A&P expenditure.  HUL also posted a 85bp expansion in its OPM aided by reduction in raw material costs. We maintain our neutral rating on the stock,” said V Srinivasan, Research Analyst – FMCG, Angel Broking.

Meanwhile, Hero MotoCorp rallied 3.2% to Rs 1,649 after the world largest two-wheeler manufacture reported a better-than-expected net profit of Rs 574 crore for the fourth quarter ended March 2013 (Q4). Analyst on an average had expected profit of Rs 502 crore.

However, the company's net income during the fourth quarter of FY2012-13 went up by 1.84% to Rs 6,146 crore from Rs 6,035 crore in the year-ago period, Hero MotoCorp said in a statement.

On the other hand, Jindal Steel shed 4.2% at Rs 301.Coal India showed weakness and ended down 1.7% at Rs 314. Sun Pharma, HDFC, Larsen & Toubro and Tata Steel also ended in red.

Indian Overseas Bank (IOB) tanked over 5% to Rs 63.70, on reporting a sharp 89% year-on-year (yoy) drop in its net profit at Rs 59 crore for the quarter ended March due to higher provisioning bad loans. The state-owned bank had profit of Rs 529 crore in a year ago quarter.

Hexaware Technologies shed 0.5% at Rs 82.40 after reporting a 20% quarter-on-quarter jump in its consolidated net profit at Rs 79.28 crore for the quarter ended March due to lower operating expenses and foreign exchange gain of Rs 2.25 crore.

BSE market breadth was positive. Out of 2,490 stocks traded, 1,289 shares advanced while 1,070 shares declined in trades.