Key benchmark indices were a tad lower in mid-afternoon trade after alternately moving between positive and negative zone in afternoon trade. The barometer index, the S&P BSE Sensex, was down 12.23 points or 0.06%, off 47.52 points from the day's high and up 69.27 points from the day's low. Index heavyweight and cigarette major ITC extended intraday gains on defensive buying. Many other FMCG stocks gained on expectations of normal monsoon rains this year. The market breadth, indicating the overall health of the market was negative.
Auto major Tata Motors gained after announcing Q4 earnings after market hours on Wednesday, 29 May 2013. Pharma major Cipla dropped after the company declared weak Q4 result after market hours on Wednesday, 29 May 2013. MphasiS galloped to 52-week high after announcing Q2 result after market hours on Wednesday, 29 May 2013.
Key benchmark indices edged lower in early trade on weak Asian stocks. The market recovered in morning trade. Intraday recovery proved short lived as weakness in Asian stocks pulled Indian stocks lower again in mid-morning trade. Intraday volatility continued as the key benchmark indices once again trimmed losses in early afternoon trade. The Sensex trimmed gains after hitting fresh intraday high in afternoon trade. Key benchmark indices were a tad lower in mid-afternoon trade after alternately moving between positive and negative zone in afternoon trade.
The market may continue to remain volatile today, 30 May 2013, as traders roll over positions in the futures & options (F&O) segment from the near-month May 2013 series to June 2013 series. The May 2013 derivatives contracts expire today, 30 May 2013.
At 14:24 IST, the S&P BSE Sensex was down 12.23 points or 0.06% to 20,135.41. The index rose 35.29 points at the day's high of 20,182.93 in mid-afternoon trade. The index fell 81.50 points at the day's low of 20,066.14 in early trade.
The CNX Nifty was down 8.50 points or 0.14% to 6,095.80. The index hit a high of 6,111.30 in intraday trade. The index hit a low of 6,072.15 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,332 shares declined and 982 shares rose. A total of 148 shares were unchanged.
The total turnover on BSE amounted to Rs 3432 crore by 14:25 IST
Among the 30-share Sensex pack, 19 stocks declined and the rest of them gained.
Index heavyweight and cigarette major ITC was up 2.28% at Rs 350.05 on defensive buying. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013.
FMCG stocks gained on expectations of normal monsoon rains this year. FMCG firms derive substantial revenue from rural India.
Britannia Industries (up 2.3%), Godrej Consumer Products (up 1.39%), Hindustan Unilever (up 0.06%) and Tata Global Beverages (up 1.68%) gained.
Nestle India (down 0.61%), Marico (up 0.81%), Hindustan Unilever (down 0.19%) and Colgate-Palmolive (India) (up 1.95%) declined.
ICICI Bank fell 3.34% after turning ex-dividend today, 30 May 2013 for dividend of Rs 20 per share for the year ended 31 March 2013.
Auto major Tata Motors gained 4.31% to Rs 316.90 and was the top gainer from the Sensex pack. The company's consolidated net profit declined 36.71% to Rs 3945 crore on 10% growth in revenue to Rs 56002 crore in Q4 March 2013 over Q4 March 2012. The fall in bottom line was due to base effect. Tata Motors had accounted for a large tax credit in Q4 March 2012. Tata Motors' British luxury car unit Jaguar Land Rover (JLR) had accounted for tax credit of 225 million pounds (Rs 1794 crore) in Q4 March 2012 for past income tax losses. Tata Motors' profit before tax (PBT) rose 6.1% to Rs 4694 crore in Q4 March 2013 over Q4 March 2012. Tata Motors attributed revenue growth to strong demand, growth in volumes and favourable market mix at JLR and favourable operating foreign exchange at the British luxury car unit. The result was announced after market hours on Wednesday, 29 May 2013.
Due to weak operating environment in the commercial vehicles and passenger car business in India, the board of Tata Motors pruned dividend to Rs 2 per share for the year ended 31 March 2013 (FY 2013) from Rs 4 per share for the year ended 31 March 2012 (FY 2012).
Pharma major Cipla lost 3.98% to Rs 385.55 and was the top loser from the Sensex pack. The company's net profit fell 8.3% to Rs 268 crore on 4.9% growth in revenue to Rs 1982 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Wednesday, 29 May 2013. Cipla's revenue from India operations rose 5.2% to Rs 793 crore in Q4 March 2013 over Q4 March 2012.
The growth in revenue from the domestic business was largely on account of growth in anti-asthma, anti-biotics/infectives, and cardiovascular therapy segments. Exports of formulations rose 11.5% to Rs 954 crore in Q4 March 2013 over Q4 March 2012. Exports of active pharmaceutical ingredients (APIs) fell 24% to Rs 175 crore in Q4 March 2013 over Q4 March 2012. The company attributed growth in overall export revenue to growth in anti-asthma, anti-allergic, anti-depressants, and anti-retroviral segments.
MphasiS jumped 9.74% to Rs 490.60 after striking a 52-week high of Rs 513 in intraday trade today, 30 May 2013. The company's consolidated net profit declined 4.3% to Rs 177 crore on 11.8% growth in revenue to Rs 1405 crore in Q2 April 2013 over Q1 January 2013. The Q2 result was announced after market hours on Wednesday, 29 May 2013.
MphasiS said that the net profit in Q2 April 2013 was lower, both on QoQ and YoY basis, on account of lower other income during the quarter as the company deployed funds towards the acquisition of Digital Risk as well as towards the payment of dividend. Further, effective tax rates increased to 25.1% due to higher tax rates applicable on Digital Risk profits, increase in tax surcharge in India and expiry of the initial five-year tax holiday in some of the company's delivery centers located in Special Economic Zones, MphasiS said in a statement.
Ganesh Ayyar, Chief Executive Officer, MphasiS said, "We are witnessing good traction in the Direct business in the US with a growing pipeline testimony to our hyper-specialization approach. The acquisition of Digital Risk has gone well; we have won a large $60 million TCV contract from a BFSI client with potential upside of $40 million based on further volume. We are enthused by growth prospects going forward".
Cadila Healthcare slipped 0.79%. The company during market hours today, 30 May 2013, reported 54% rise in consolidated net profit to Rs 263 crore on 16% rise in gross sales to Rs 1599 crore in Q4 March 2013 over Q4 March 2012.
On the macro front, the government will announce Q4 March 2013 gross domestic product (GDP) data tomorrow, 31 May 2013. India's GDP grew 4.5% in Q3 December 2012, sharply slower than the 5.3% expansion reported for Q2 September 2012.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
European stock markets edged higher on Thursday, 30 May 2013 ahead of a deluge of US data that could strengthen the case for the Federal Reserve to consider reducing its bond purchases. Key benchmark indices in Germany, France and UK rose by 0.03% to 0.33%.
Asian stocks declined on Thursday, undermined by an overnight pullback in global equities as investors assessed the implications of a potential softening of the Federal Reserve's massive monetary stimulus programme. Key benchmark indices in Hong Kong, South Korea, Singapore, China, Taiwan and Indonesia were down by 0.05% to 1.59%.
Japan's Nikkei 225 dropped 5.15% amid concerns about market volatility as the yen strengthened against the dollar.
Trading in US index futures indicated that the Dow could slide 20 points at the opening bell on Thursday, 30 May 2013. US stocks fell sharply on Wednesday, with Wall Street giving back the prior day's gains, amid worries over global-growth prospects and fears the Federal Reserve will begin to scale back its bond-buying program.
Data on tap on Thursday from the US include weekly jobless claims, the second report on first-quarter gross domestic product and pending-home-sales figures.
Fed Chairman Ben Bernanke said last week that an improvement in data could trigger the central bank to start tapering its asset purchases in coming months, stoking fears that the $85-billion-a-month liquidity injection will soon come to an end.
The Organization for Economic Cooperation and Development (OECD) on Wednesday cautioned that global growth could get hit as governments pare back easy-money programs. The OECD gave a bleaker forecast for the euro-zone economy this year. Also, the International Monetary Fund on Wednesday cut its estimate for China's economic growth in 2013 and 2014.
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