Sensex snaps five-day losing streak

Key benchmark indices edged higher in a choppy trading session. Data showing that foreign funds remained net buyers of Indian stocks on Friday, 2 May 2014 offset weakness in European stocks and lower US index futures. The barometer index, the S&P BSE Sensex, was provisionally up 36.41 points or 0.16%, off close to 150 points from the day's high and up about 85 points from the day's low. The market breadth, indicating the overall health of the market, was negative.

Indian stocks snapped five-day losing streak today, 5 May 2014.

Index heavyweights, Reliance Industries (RIL) and ITC, both, rose. Canara Bank jumped as the bank's gross non-performing assets to gross advances declined to Rs 7570.21 crore as on 31 March 2014, from Rs 8073.92 crore as on 31 December 2013. Most auto stocks rose.

Key indices hovered between gains and losses near the flat line in early trade. It regained strength after trimming gains after hitting fresh intraday high in morning trade. It trimmed gains in mid-morning trade. It regained strength in early afternoon trade. Key benchmark indices firmed up to hit fresh intraday high in afternoon trade. It pared gains in mid-afternoon trade. It further trimmed gains in late trade as weakness in European stocks weighed on sentiment.

The market sentiment was supported by data showing that foreign funds remained net buyers of Indian stocks on Friday, 2 May 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 386.95 crore on Friday, 2 May 2014, as per provisional data from the stock exchanges.

As per provisional figures, the S&P BSE Sensex was up 36.41 points or 0.16% to 22,440.30. The index rose 188.14 points at the day's high of 22,592.03 in mid-afternoon trade, its highest level since 30 April 2014. The index shed 49.44 points at the day's low of 22,354.45 in early trade, its lowest level since 30 April 2014.

The CNX Nifty was up 1.35 points or 0.02% to 6,696.15, as per provisional figures. The index hit a high of 6,741.05 in intraday trade, its highest level since 30 April 2014. The index hit a low of 6,680.45 in intraday trade, its lowest level since 30 April 2014.

The BSE Mid-Cap index fell 9.40 points or 0.13% to 7,348.06. The BSE Small-Cap index dropped 34.72 points or 0.46% to 7,498.09. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 2417 crore, higher than Rs 2313.62 crore on Friday, 2 May 2014.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,489 shares fell and 1,255 shares rose. A total of 127 shares were unchanged.

Among the 30-share Sensex pack, 16 stocks gained and rest of them fell. Hindalco Industries (up 4.42%), ONGC (up 2.1%), and L&T (up 1.73%), edged higher from the Sensex pack.

Most Auto stocks gained. Mahindra & Mahindra (M&M) (up 0.23%) Maruti Suzuki India (up 0.77%), Bajaj Auto (up 0.75%) and Hero MotoCorp (up 1.16%) gained. TVS Motor Company fell 1.09%.

Ashok Leyland was flat after the company reported weak sales in April. The company reported 21% decline in total sales to 5897 units in April 2014 over April 2013. Total sales of medium and heavy commercial vehicle (M&HCV) fell 14% to 4523 units in April 2014 over April 2013. Total sales of light commercial vehicles (LCV) declined 39% to 1374 units in April 2014 over April 2013.

Tata Motors rose 0.15% in volatile trade after the company reported dismal sales figures in April. The company's total sales (including exports) of Tata commercial and passenger vehicles fell 34% to 33,892 vehicles in April 2014 over April 2013. The company's domestic sales of Tata commercial and passenger vehicles declined 36% to 30,670 units in April 2014 over April 2013. The company's sales of commercial vehicles in the domestic market fell 36% to 23,229 units in April 2014 over April 2013. LCV sales fell 43% to 14,804 units in April 2014 over April 2013, while M&HCV sales declined 16% to 8,425 units in April 2014 over April 2013. Sales of passenger vehicles were lower by 36% to 7,441 units in April 2014 over April 2013. Sales of the Nano/ Indica/ Indigo range were down 37% to 5,653 units in April 2014 over April 2013. The Sumo/ Safari/ Aria/ Venture range sales fell 33% to 1,788 units in April 2014 over April 2013. The company's sales from exports registered a decline of 10% to 3,222 units in April 2014 over April 2013. Tata Motors announced sales figures after market hours on Friday, 2 May 2014.

Index heavyweight Reliance Industries (RIL) rose 1.58% to Rs 943. The stock hit high of Rs 957.65 and low of Rs 925.

Index heavyweight and cigarette maker ITC gained 1.28%.

Canara Bank jumped 6.95% as the bank's gross non-performing assets to gross advances declined to Rs 7570.21 crore as on 31 March 2014, from Rs 8073.92 crore as on 31 December 2013. Canara Bank's gross non-performing assets (NPAs) to gross advances declined to Rs 7570.21 crore as on 31 March 2014, from Rs 8073.92 crore as on 31 December 2013 but increased from Rs 6260.16 crore as on 31 March 2013. The ratio of gross NPAs to gross advances stood at 2.49% as on 31 March 2014 as against 2.79% as on 31 December 2013 and 2.57% as on 31 March 2013.

The bank's net NPAs to net advances declined to Rs 5965.46 crore as on 31 March 2014, from Rs 6869.87 crore as on 31 December 2013 but increased from Rs 5278.07 crore as on 31 March 2013. The ratio of net NPAs to net advances stood at 1.98% as on 31 March 2014 as against 2.39% as on 31 December 2013 and 2.18% as on 31 March 2013.

Canara Bank's net profit declined 15.79% to Rs 610.83 crore on 22.57% growth in total income to Rs 11609.72 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours today, 5 May 2014.

Canara Bank's provisions and contingencies surged 45.04% to Rs 1091.27 crore in Q4 March 2014 over Q4 March 2013.

The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 10.63% as on 31 March 2014 as against 9.83% as on 31 December 2013.

Canara Bank's net profit declined 15.1% to Rs 2438.19 crore on 16.78% growth in total income to Rs 43480.37 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

A sum of Rs 370.72 crore has been charged to profit & loss account during the year ended March 2014 on proportionate basis towards unamortized liability of Rs 1853.57 crore (being amortized over 5 years beginning from 31 March 2011) on account of reopening of pension option for existing employees who had not opted for pension earlier. The balance amount of Rs 370.72 crore will be dealt with as per guidelines of Reserve Bank of India, Canara Bank said.

A sum of Rs 135.91 crore has been charged to profit & loss account during the year ended March 2014 on proportionate basis towards unamortized liability of Rs 679.52 crore (being amortized over 5 years beginning from 31 March 2011) on account of the enhancement of gratuity limit. The balance amount of Rs 135.91 crore will be dealt with as per guidelines of Reserve Bank of India, Canara Bank said.

Canara Bank's board of directors at its meeting held today, 5 May 2014, recommended final dividend of Rs 4.50 per share for FY 2014, subject to the approval of shareholders at the Annual General Meeting.

Ajanta Pharma spurted 8.53%after profit after tax jumped 159% to Rs 70 crore on 25% growth in revenue from operations to Rs 311 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced during trading hours today, 5 May 2014.

Ajanta Pharma's EBITDA (earnings before interest, taxation, depreciation and amortization) surged 63% to Rs 112 crore in Q4 March 2014 over Q4 March 2013.

Exports contributed 66% of the total operating income in Q4 March 2014, Ajanta Pharma said.

Ajanta Pharma's profit after tax surged 118% to Rs 221 crore on 32% growth in revenue from operations to Rs 1110 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).

EBITDA jumped 65% to Rs 346 crore in FY 2014 over FY 2013.

Exports contributed 63% of the total operating income for FY 2014, Ajanta Pharma said.

On consolidated basis, Ajanta Pharma's profit after tax jumped 109% to Rs 234 crore on 30% growth in revenue from operations to Rs 1208 crore in FY 2014 over FY 2013.

EBITDA jumped 64% to Rs 369 crore in FY 2014 over FY 2013.

Mr. Yogesh Agrawal, MD, Ajanta Pharma said, "We are pleased with the execution of our strategy during the year which is reflected in healthy results. All our geographies have performed inline with our expectations. Our India speciality business continues to post robust growth much above the industry growth. We continue to build branded generic business in select overseas markets and lay foundation for sustained growth in coming years".

Ajanta Pharma's board of directors at its meeting held today, 5 May 2014, recommended dividend of Rs 10 per share, subject to approval of shareholders at the ensuing Annual General Meeting to be held in 2014.

In the foreign exchange market, the rupee was unchanged against the dollar in choppy trade. The partially convertible rupee was hovering at 60.165, compared with its close of 60.16 on Friday, 2 May 2014.

The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.

A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.

European shares were lower on Monday as the European Commission trimmed its economic growth forecast for the euro area in 2015. Key benchmark indices in France and Germany fell 1.07% ot 1.3%. Stock markets in UK were closed for a public holiday.

The European Commission trimmed its economic growth forecast for the euro area and predicted low inflation to remain a threat to expansion for at least the next two years. The 18-nation euro zone's gross domestic product will rise 1.7% in 2015, compared with a February prediction of 1.8%, the Brussels-based commission said today. The inflation rate will be 0.8% this year and 1.2% in 2015, both lower than previously forecast and well below the European Central Bank's target of just below 2%.

A monthly meeting of the Monetary Policy Committee of the Bank of England's (BoE) for monetary policy review is scheduled on Thursday, 8 May 2014.

The European Central Bank (ECB) will hold monetary policy meeting on Thursday, 8 May 2014, in Brussels, Belgium.

Most Asian stocks rose on Monday in choppy trade. Key benchmark indices in China, Indonesia and Taiwan were up 0.04% to 0.08%. Key benchmark indices in Singapore and Hong Kong declined 0.34% to 1.28%. Markets in Japan and South Korea are closed today and tomorrow for holidays.

China's manufacturing contracted in April for a fourth month, according to a private survey, signaling the risk of a deeper slowdown in an economy already projected to expand this year at the slowest pace since 1990. A purchasing managers' index was at 48.1, HSBC Holdings Plc and Markit Economics said in a statement today. That compared with 48 the previous month. Numbers below 50 indicate contractions.

Growth in China's services sector accelerated slightly in April as new orders held steady, an official survey showed, an encouraging sign of strength in an economy that otherwise faces a cloudy outlook. The purchasing manufacturing index (PMI) for the services industry edged up to 54.8 last month, the National Bureau of Statistics said on Saturday, up marginally from 54.5 in March. A reading above 50 in PMI surveys indicates growth on a monthly basis, while a number below that threshold points to a contraction in activity.

Indonesia's economic growth missed economists' estimates in the first quarter after interest-rate increases last year curbed lending and foreign investment. Gross domestic product rose 5.21% in the three months ended March 31 from a year earlier, the Central Bureau of Statistics said in Jakarta today.

Trading in US index futures indicated that the Dow could fall 70 points at the opening bell on Monday, 5 May 2014. US stocks eased on Friday as concerns about more violence in Ukraine prompted profit-taking ahead of the weekend and offset optimism about the fastest job growth in more than two years.

The labor market shifted into a higher gear in April with payroll gains showing the most widespread advance in two years, a sign the US economic expansion is on the verge of speeding up. The 288,000 increase in employment marked the biggest upside surprise since February 2012 and followed a 203,000 rise the prior month, Labor Department figures showed in Washington. An index measuring the share of industries hiring climbed to 67, the highest level since January 2012. The jobless rate dropped to 6.3%, the lowest since September 2008.

The Federal Reserve will likely bring its massive bond-buying program to an end in October, and only after that will it consider when to raise rates, a top Fed official said on Sunday. "I personally expect us to end that program in October," Dallas Federal Reserve Bank President Richard Fisher said in an interview on Fox News. "Then we have to see how the economy is doing, including these broader measures of unemployment and where we stand before we can talk about how we might move the short-term rate," he added.

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