Key benchmark indices extended intraday losses and hit fresh intraday low in early afternoon trade. The S&P BSE Sensex was down 83.84 points or 0.4%, off 171.87 points from the day's high and up 1.62 points from the day's low. The market breadth, indicating the overall health of the market, was positive. In the foreign exchange market, the rupee edged lower against the dollar, tracking mild weakness of Asian currencies against the dollar.
Index heavyweight and cigarette major ITC edged lower in volatile trade. IT stocks dropped. Shares of engineering and construction major L&T extended intraday surge after the company reported a strong growth in order inflow in Q2 September 2013 at the time of announcing its Q2 results after market hours on Friday, 18 October 2013. Auto stocks edged higher on fresh buying.
Ranbaxy Laboratories edged higher after the company today, 21 October 2013, said it has received approval from the Central Drugs Standard Control Organisation (CDSCO), Government of India to manufacture and market Synriam in India for the treatment of uncomplicated malaria in adults caused by Plasmodium vivax parasite.
Key benchmark indices edged higher in early trade on firm Asian stocks. A bout of volatility was witnessed as key benchmark indices reversed initial gains in morning trade. The barometer index, the S&P BSE Sensex, reversed direction after hitting its highest level in more than 35 months. The 50-unit CNX Nifty reversed direction after hitting 22-week high. Key benchmark indices extended intraday losses in early afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1752.98 crore on Friday, 18 October 2013, as per provisional data from the stock exchanges.
At 12:18 IST, the S&P BSE Sensex was down 83.84 points or 0.4% to 20,799.05. The index gained 88.03 points at the day's high of 20,970.92 in morning trade, its highest level since 9 November 2010. The index fell 85.46 points at the day's low of 20,797.43 in early afternoon trade.
The CNX Nifty was down 17.25 points or 0.28% to 6,172.10. The index hit a high of 6,218.95 in intraday trade, its highest level since 20 May 2013. The index hit a low of 6,171.45 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,224 shares gained and 873 shares fell. A total of 158 shares were unchanged.
The total turnover on BSE amounted to Rs 959 crore by 12:20 IST compared to Rs 739 crore by 11:20 IST.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined.
Index heavyweight and cigarette major ITC lost 1.69% to Rs 348. The stock was volatile. The scrip hit high of Rs 355.40 and low of Rs 346.50 so far during the day. The company unveils Q2 result on Friday, 25 October 2013.
Auto stocks edged higher on fresh buying. M&M gained 1.11%. Maruti Suzuki India surged 3.23%. Ashok Leyland rose 0.89%.
Tata Motors advanced 2.11% to Rs 386.75. The stock had hit record high hit of Rs 393 in intraday trade on 15 October 2013.
Bajaj Auto rose 0.13%. The company, last week, reported better-than-expected Q2 results. Bajaj Auto's net profit rose 13% to Rs 837 crore on 3% growth in turnover to Rs 5299 crore in Q2 September 2013 over Q2 September 2012.
Among other two-wheeler makers, Hero MotoCorp (up 0.49%) and TVS Motor Company (up 1.75%) edged higher.
IT stocks edged lower. TCS lost 2.71% to Rs 2,063. The stock had hit record high of Rs 2,258.05 in intraday trade on 15 October 2013. The company last week said its consolidated net profit rose 20.7% to Rs 4633 crore on 16.6% growth in revenue to Rs 20977 crore in Q2 September 2013 over Q1 June 2013.
Infosys lost 1.17% at Rs 3,277.20. The scrip had hit 52-week high of Rs 3,360 in intraday trade on 11 October 2013.
Wipro shed 0.4% to Rs 504.60. The stock had hit 52-week high of Rs 519.50 in intraday trade on 15 October 2013. The company unveils Q2 result tomorrow, 22 October 2013.
HCL Technologies lost 3.38% to Rs 1,065.85. The stock had hit record high of Rs 1,177 in intraday trade on 15 October 2013. The company last week said its consolidated net profit as per US accounting standards jumped 18.7% to Rs 1416 crore on 14% growth in revenue to Rs 7961 crore in Q1 September 2013 over Q4 June 2013.
Tech Mahindra shed 2.29% to Rs 1,500.95. The stock had hit a 52-week high of Rs 1,594 on 17 October 2013.
Engineering and construction giant L&T surged 5.94%, with the stock extending intraday gains. The company after market hours on Friday, 18 October 2013, said its recurring profit after tax rose 7% to Rs 978 crore on 10% growth in gross revenue at Rs 14648 crore in Q2 September 2013 over Q2 September 2012. The company attributed top line growth to pick-up in execution of various jobs.
L&T said that the upward trend in order inflow was sustained in the second consecutive quarter of the year. Order inflow rose 27% to Rs 26533 crore in Q2 September 2013 over Q2 September 2012. L&T said that its order book at Rs 1.76 lakh crore as on 30 September 2013, increased 11% on year-on-year basis. International order book constituted 15% of the total order book.
L&T said that the macro-economic environment continues to remain weak and uncertain on account of the twin deficits, tight liquidity, persistent inflation and heightened volatility in the financial markets. Investment climate in the economy is yet to show sign of recovery. Deferral of new projects and delayed decision making/execution features the weak performance of the core sector this far, L&T said. The recent government measures such as improved allocation of resources to kick-start the stalled projects are, however, a welcome move to improve the investment sentiment, L&T said.
The company said its strategy of business development in select international markets has started yielding results as is evident from the increased share of international business. The company continues to focus on emerging prospects in the Middle East and other select international markets as part of its twin strategy to hedge against domestic slowdown and attain global competitiveness, L&T said in a statement. With its growing order book, increased international presence, and improved competiveness, the company is hopeful of meeting its growth aspirations in the near and medium term, L&T said.
Ranbaxy Laboratories advanced 2.93%. The company today, 21 October 2013, said it has received approval from the Central Drugs Standard Control Organisation (CDSCO), Government of India to manufacture and market Synriam in India for the treatment of uncomplicated malaria in adults caused by Plasmodium vivax parasite. Phase III clinical trials for the drug conducted in India, successfully demonstrated the efficacy and tolerability of Synriam as comparable to chloroquine.
Last year on World Malaria Day, April 25, Ranbaxy had launched India's first new drug, Synriam for the treatment of uncomplicated Plasmodium falciparum malaria in India. Since its launch, Synriam has successfully treated around one million patients, Ranbaxy said in a statement. The company has also received permission to conduct Phase III clinical trials for the pediatric formulation in pediatric patients of uncomplicated Plasmodium falciparum malaria, Ranbaxy said.
Commenting on the latest development, Arun Sawhney, CEO & Managing Director, Ranbaxy, said: "Synriam is a new age cure for malaria and is fast emerging as the preferred option in the hands of doctors. This approval makes Synriam one of the few therapies in the world that successfully treats both, Plasmodium vivax and Plasmodium falciparum malaria. Ranbaxy remains committed in its fight against malaria and we are making all efforts to make this new therapy accessible to patients around the world".
Ranbaxy is working to make this new treatment available in African, Asian and South American markets where malaria is rampant. The company has filed New Drug Applications (NDAs) for marketing Synriam in some African countries and will be filing more applications during the year. Once approved, the product will be launched in these markets, Ranbaxy said.
Synriam provides quick relief from most malaria-related symptoms, including fever, and has a high cure rate of over 95%. It conforms to the recommendations of the World Health Organization (WHO) for using combination therapy in malaria.
Federal Bank surged 9.6% after net profit rose 4.97% to Rs 225.81 crore on 11.57% growth in total income to Rs 1857.84 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced on Saturday, 19 October 2013.
Federal Bank's ratio of gross non-performing assets (NPAs) to gross advances decreased to 3.39% as on 30 September 2013, from 3.51% as on 30 June 2013 and 3.83% as on 30 September 2012. The ratio of net NPAs to net advances stood at 0.98% as on 30 September 2013, as against 0.91% as on 30 June 2013 and 0.68% as on 30 September 2012.
The bank's deposits grew 14.69% to Rs 56793.74 crore as on 30 September 2013, from Rs 49518.07 crore as on 30 September 2012. Borrowings rose 82.73% to Rs 5032.89 crore as on 30 September 2013, as against Rs 2754.25 crore as on 30 September 2012.
Federal Bank's provisions and contingencies declined 63.94% to Rs 10.98 crore in Q2 September 2013 over Q2 September 2012.
The bank's capital adequacy ratio (CAR) as per Basel III norms stood at 15.35% as on 30 September 2013.
Federal Bank said that the Investment and Capital Raising Committee of the board of the bank has decided to allot 85.53 crore shares of Rs 2 each in place of shares of Rs 10 each.
CRISIL rose 0.65%. The company's consolidated net profit surged 95.6% to Rs 116.81 crore on 5.7% increase in income from operations to Rs 286.40 crore in Q3 September 2013 over Q3 September 2011. The result was announced after market hours on Friday, 18 October 2013.
CRISIL reported an exceptional profit of Rs 65.88 crore on a consolidated basis on sale of 6.37 lakh equity shares of India Index Services & Products (IISL) representing 49% of holding in IISL. During the quarter, CRISIL sold its entire equity stake in IISL, a joint venture with National Stock Exchange of India (NSE), for a total consideration of Rs 100 crore. The stake represented 49% of the equity share capital of IISL.
CRISIL said the quarter saw extreme volatility in the Indian financial markets, coupled with high interest rates and a decline in economic growth. It resulted in a virtual halt to any type of issuance, whether equity or bonds. This affected CRISIL's bond ratings and India research businesses, leading to muted revenue growth. Ratings revenues were driven by the Bank Loan Ratings and SME Ratings businesses. The Global Analytical Centre (GAC) business of CRISIL continues to see good demand from the analytical team of S&P Ratings, driven by a pick-up in business volumes across the global corporate and structured finance domains, the company said in a statement.
In the foreign exchange market, the rupee edged lower against the dollar, tracking mild weakness of Asian currencies against the dollar. The partially convertible rupee was hovering at 61.46, weaker than its close of 61.27/28 on Friday, 18 October 2013. The rupee had hit two-month high of 60.94 in intraday trade on Friday, 18 October 2013. The Reserve Bank of India on Friday, 18 October 2013, said that its dollar window for oil marketing companies remains open, adding that any tapering would be done in a calibrated manner.
Asian markets rose on Monday, 21 October 2013, as traders continued buying spree that began last week on bets the US Federal Reserve will continue its monetary stimulus for the US economy. Key benchmark indices in South Korea, Singapore, Hong Kong, China, Indonesia and Japan rose by 0.03% to 1.47%. Taiwan's Taiwan Weighted fell 0.26%.
Trading in US index futures indicated that the Dow could advance 15 points at the opening bell on Monday, 21 October 2013. US stocks rose on Friday, 18 October 2013, with the S&P 500 index continuing its record run, as investors applauded quarterly results from Internet-search titan Google Inc. and investment bank Morgan Stanley.
Federal Reserve officials largely avoided the topic of tapering in a series of speeches on Friday, 18 October 2013. Charles Evans, the president of the Chicago Fed, disputed the notion that interest rates have to normalize to bring stability to the financial system.
The US government will release the influential nonfarm-payroll data for September 2013 tomorrow, 22 October 2013. The data has been delayed due to the 16-day partial shutdown of the US government this month.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
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