Hindalco slips in volatile trade after Novelis' Q2 result

Soon after extending intraday losses in early afternoon trade, key benchmark indices regained positive zone in afternoon trade as index heavyweight Reliance Industries (RIL) moved into green from red. The market breadth indicating the overall health of the market once again turned positive from negative in afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 22.68 points or 0.08% at 27,897.41. Global crude oil prices fell.

Data this week is likely to show growth in industrial production remaining muted in September 2014 and inflation falling further in October 2014. Foreign portfolio investors (FPIs) bought shares worth a net Rs 355.30 crore yesterday, 10 November 2014, as per provisional data.

Index heavyweight Reliance Industries (RIL) edged higher in volatile trade. Most metal and mining stocks declined. Hindalco Industries slipped in immensely volatile trade after the announcement of results by its US subsidiary Novelis yesterday, 10 November 2014. Cairn India fell as crude oil price declined. Cadila Healthcare and Shriram Transport Finance Corporation scaled record high. DCB Bank hit 52-week high.

Earlier, key benchmark indices had reversed intraday gains in early afternoon trade. Before that the benchmark indices had extended initial gains in morning trade.

In overseas markets, Japanese stocks led gains in Asian stocks on speculation Japan's Prime Minister Shinzo Abe will delay a sales-tax increase in the country. US stocks finished a thinly-traded day with modest gains yesterday, 10 November 2014, that sent the S&P 500 and Dow Jones Industrial Average to close at record levels for the fourth straight session.

In the foreign exchange market, the rupee edged lower against the dollar.

Brent crude futures dropped, with a firm dollar and robust production from US shale oil fields offsetting a drop in output in Libya.

At 13:13 IST, the S&P BSE Sensex was up 22.68 points or 0.08% at 27,897.41. The index lost 84.33 points at the day's low of 27,790.40 in early afternoon trade. The index jumped 122.19 points at the day's high of 27,996.92 in morning trade.

The CNX Nifty was up 7.30 points or 0.09% at 8,351.55. The index hit a low of 8,321.85 in intraday trade. The index hit a high of 8,378.70 in intraday trade.

The BSE Mid-Cap index was up 38.28 points or 0.38% at 10,051.55. The BSE Small-Cap index was up 12.81 points or 0.12% at 11,147.62. Both these indices outperformed the Sensex.

The market breadth indicating the overall health of the market once again turned positive from negative in afternoon trade. On BSE, 1,392 shares advanced and 1,378 shares declined. A total of 106 shares were unchanged. Earlier, the breadth had turned negative from positive in early afternoon trade.

The total turnover on BSE amounted to Rs 1912 crore by 13:15 IST.

Index heavyweight Reliance Industries (RIL) gained 1.63% to Rs 985.30. The stock was volatile. The stock hit high of Rs 987.20 and low of Rs 967 so far during the day.

Metal and mining stocks edged lower. Jindal Steel & Power (down 1.09%), Steel Authority of India (down 0.84%), Hindustan Copper (down 1.45%), National Aluminium Company (down 0.68%), NMDC (down 1.41%) declined. Tata Steel (up 1.45%) and Sesa Sterlite (up 0.14%) gained.

JSW Steel rose 0.8% to Rs 1,242. The stock was volatile. The stock hit high of Rs 1,245.80 and low of Rs 1,223 so far during the day. The company during market hours today, 11 November 2014, said its total crude steel production declined 2% to 10.46 lakh tonnes in October 2014 over October 2013. The company said crude steel production declined due to planned shutdown of blast furnace at Dolvi for about 7 days in October 2014. JSW Steel's production of flat rolled products fell 5% to 8.28 lakh tonnes in October 2014 over October 2013. Production of long rolled products rose 3% to 1.53 lakh tonnes in October 2014 over October 2013.

Hindalco Industries slipped in immensely volatile trade after the announcement of results by its US subsidiary Novelis yesterday, 10 November 2014. The stock was off 0.33% at Rs 151.85. The stock hit a high of Rs 154.85 and a low of Rs 150 so far during the day. Hindalco's US subsidiary Novelis Inc. yesterday, 10 November 2014, said its consolidated net profit jumped 65% to $38 million on 17% increase in net sales to $2.8 billion in Q2 September 2014 over Q2 September 2013. Novelis said its net profit excluding certain tax-effected items rose 14% to $42 million in Q2 September 2014 over Q2 September 2013. Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) rose 1% to $230 million in Q2 September 2014 over Q2 September 2013. The increase was primarily driven by higher shipments and cost benefits from using recycled metal inputs. These favorable drivers were partially offset by continued pricing pressures in the Asian markets, a higher fixed cost base due to expansions ahead of revenue generation, and unfavorable currency fluctuations late in the second quarter. "It's an exciting time at Novelis as we continue to transform our business with a more sustainable focus on growing high recycled content premium products," said Phil Martens, President and Chief Executive Officer for Novelis.

Cairn India fell 1.1% as crude oil price declined. Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like Cairn India.

Cadila Healthcare surged 4.99% to Rs 1561.60 after scaling a record high of Rs 1,571.25 in intraday trade.

DCB Bank jumped 4.74% to Rs 98.40 after hitting a 52-week high of Rs 98.60 in intraday trade.

Shriram Transport Finance Corporation surged 6.12% to Rs 1,027 after scaling a record high of Rs 1,047.65 in intraday trade.

Redington (India) rose 6.89% to Rs 104.65 after Reliance mutual fund bought 1.63 crore shares, or 4.07% equity at Rs 97.50 per share through bulk deals on BSE on Monday, 10 November 2014. Shares were acquired from Harrow Investment Holding, which sold 2 crore shares of Redington (India) at Rs 97.55 per share.

TV Today Network slumped 17.59%. The company's net profit rose 2.88% to Rs 13.20 crore on 21.78% rise in total income from operations (net) to Rs 111.68 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced after market hours on Monday, 10 November 2014.

Dredging Corporation of India fell 3.63% after net profit fell 67.23% to Rs 3.24 crore on 7.71% fall in total income from operations (net) to Rs 168.96 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Monday, 10 November 2014.

Jyoti Structures lost 11.95% after the company reported net loss of Rs 69.37 crore in Q2 September 2014 as against net profit of Rs 14.63 crore in Q2 September 2013. The company's net sales declined 2.55% to Rs 631.49 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Monday, 10 November 2014.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.5825, compared with its close of 61.505 during the previous trading session yesterday, 10 November 2014.

Brent crude futures dropped, with a firm dollar and robust production from US shale oil fields offsetting a drop in output in Libya. Brent for December delivery was off 27 cents at $82.07 a barrel. The contract touched a low of $81.87 a barrel in intraday trade, just above the $81.63 seen last week, which was the lowest since October 2010. The contract had fallen $1.05 a barrel to settle at $82.34 a barrel during the previous trading session on Monday, 10 November 2014, the lowest level since October 2010. Brent for January 2015 delivery was off 34 cents at $82.61 a barrel.

Indian government's decision last month to decontrol diesel prices and a sharp decline in global crude oil prices recently will help India in containing its fiscal deficit. The fall in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement. A slump in Brent crude since the end of June contributed to consumer-price index slowing to 6.46% in September 2014, the least since 2012. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent.

Data this week is likely to show growth in industrial production remaining muted in September 2014 and inflation falling further in October 2014.

Industrial production is seen rising a muted 0.4% in September 2014, matching the growth in August 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil industrial production data for September 2014 at 17:30 IST tomorrow, 12 November 2014.

The rate of inflation based on the combined consumer price indices (CPI) for urban and rural India is seen easing further to 5.7% in October 2014, from 6.46% in September 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will release consumer price inflation data for October 2014 at 17:30 IST tomorrow, 12 November 2014.

The rate of inflation based on wholesale price index (WPI) is seen easing further to 2.1% in October 2014, from 2.38% in September 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil WPI inflation data for October 2014 at 12:00 noon on Friday, 14 November 2014.

Japanese stocks led gains in Asian stocks today, 11 November 2014, on speculation Japan's Prime Minister Shinzo Abe will delay a sales-tax increase in the country. Key indices in Hong Kong, South Korea and Indonesia were up 0.24% to 1.43%. Key benchmark indices China, Taiwan and Singapore were off 0.16% to 0.18%

In Japan, the Nikkei 225 Average jumped 2.05% after a newspaper report that Abe may call a snap election if he decides to scrap the sales-tax increase.

China yesterday, 10 November 2014, said that the Stock Connect program, which allows individual investors outside of China to buy Shanghai-listed shares for the first time ever, will start on 17 November 2014.

Trading in US index futures indicated that the Dow could rise 17 points at the opening bell today 11 November 2014. US stocks finished a thinly-traded day with modest gains yesterday, 10 November 2014, that sent the S&P 500 and Dow Jones Industrial Average to close at record levels for the fourth straight session. The Nasdaq Composite index attained its highest closing level since March 2000. The index was helped by big gains in the biotech and internet stocks.

Federal Reserve Bank of Boston President Eric Rosengren said yesterday, 10 November 2014, the US central bank should refrain from raising short-term term interest rates until there is stronger evidence price pressures are beginning to rise. Monetary policymakers should remain patient about removing accommodation until it is clear that we are on the path to achieving both our 2% inflation target and maximum sustainable employment, Mr. Rosengren said.

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