Key benchmark indices once again regained strength in mid-afternoon trade as firm European and Asian stocks boosted sentiment. The S&P BSE Sensex was up 103.66 points or 0.55%, off close to 25 points from the day's high and up close to 130 points from the day's low. Index heavyweight Reliance Industries (RIL) edged higher in choppy trade. Another index heavyweight and cigarette major ITC was marginally higher after hitting record high at the onset of the trading session. The market breadth, indicating the overall health of the market, was positive.
Cement stocks were mostly lower. Telecom stocks gained. Wipro slumped nearly 9% after the company said at the time of announcing Q4 results that it expects revenue from IT services business to remain flat on sequential basis in Q1 June 2013. Education stocks gained on renewed buying.
The market edged higher in early trade on firm Asian stocks. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their hitting their highest level in almost five weeks. The market pared gains after hitting fresh intraday high in morning trade. The market hovered in positive terrain in mid-morning trade. The market continued to hover in green in early afternoon trade. Key benchmark indices pared gains in afternoon trade. The Sensex once again regained strength in mid-afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 18 April 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 940.07 crore on Thursday, 18 April 2013, as per provisional data from the stock exchanges.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month April 2013 series to May 2013 series. The May 2013 F&O contracts expire on Thursday, 25 April 2013. The stock market remains shut on Wednesday, 24 April 2013, on account of Mahavir Jayanti.
At 14:20 IST, the S&P BSE Sensex was up 103.66 points or 0.55% to 19,120.21. The index jumped 128.01 points at the day's high of 19,144.47 in morning trade, its highest level since 19 March 2013. The index fell 26.68 points at the day's low of 18,989.78 in early trade.
The CNX Nifty was up 39.95 points or 0.69% to 5,823.05. The index hit a high of 5,833.45 in intraday trade, its highest level since 19 March 2013. The index hit a low of 5,789.80 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,201 shares advanced and 989 shares declined. A total of 133 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks advanced while rest of them declined.
Index heavyweight Reliance Industries (RIL) rose 1.14% to Rs 790.70. The scrip hit high of Rs 793 and a low of Rs 778.65 so far during the day. On the back of a surge in refining margins, RIL's net profit jumped 31.9% to Rs 5589 crore on 1.4% fall in turnover to Rs 86618 crore in Q4 March 2013 over Q4 March 2012. On sequential basis, RIL's net profit rose 1.58% to Rs 5589 crore on 10.06% decline in turnover to Rs 86618 crore in Q4 March 2013 over Q3 December 2012. The company reported Q4 March 2013 results on 16 April 2013.
At the time of announcement of the results, RIL said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the net 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
Index heavyweight and cigarette major ITC rose 0.16% to Rs 315.80. The stock hit record high of Rs 317.30 in intraday trade today, 22 April 2013. The stock hit low of Rs 312.55 in intraday trade today, 22 April 2013. The government raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14, which was unveiled on 28 February 2013.
Telecom stocks gained. MTNL, Cellular and Bharti Airtel gained by 0.18% to 2.51%. But, Tata Teleservices (Maharashtra) declined 0.72%.
Reliance Communications (RCom) rose 1.22%. The company before trading hours today, 22 April 2013, said that Samena Capital in a proposed consortium with certain other global PE funds is at an advanced stage of the process of due diligence and completion of definitive documents in relation to the acquisition of the company's global communications services business unit -- Reliance Globalcom. The intended time line for completion of the transaction is end May 2013. At this point, there can be no certainty that this will lead to a transaction, RCom said. A further announcement will be made in due course, if and when appropriate, the company said.
RCom also said that it has discontinued discussions with Batelco Group for selling its sake in Reliance Globalcom. RCom had earlier said in March 2013 that it was in discussions with Batelco Group with respect to Reliance Globalcom.
Cement stocks were mostly lower. Ambuja Cement fell 0.9%. ACC rose 0.27%.
UltraTech Cement lost 2.87% ahead of its Q4 results today, 22 April 2013.
Education stocks gained on renewed buying. Educomp Solutions, Aptech, NIIT, MT Educare, Zee Learn, Edserv Softsystems and Everonn Education gained by 0.79% to 12.79%.
Wipro slumped 8.63% after the company said at the time of announcing Q4 results that it expects revenue from IT services business to remain flat on sequential basis in Q1 June 2013. Wipro expects a between 0.63% fall to a growth of 1.57% in revenue from IT services business at between $1.575 billion to $1.61 billion in Q1 June 2013 over Q4 March 2013. At a post-result conference call, Wipro's management indicated that Q1 for Wipro will be the traditionally weak quarter on account of softness from the India business. The management expects Q2 September 2013 to be better than Q1 June 2013 for the company.
Wipro's IT services revenue rose 0.5% to $1.585 billion in Q4 March 2013 over Q3 December 2012. On year on year basis, IT services revenue rose 3.2% to $1.585 billion in Q4 March 2013 over Q4 March 2012. Wipro announced the fourth quarter results on Friday, 19 April 2013, when the stock market was closed on account of Ram Navmi.
The focus of the market is on Q4 results. HDFC Bank announces Q4 results tomorrow, 23 April 2013. Axis Bank will announce its Q4 March 2013 results on 24 April 2013. Jindal Steel & Power declares its Q4 results on 25 April 2013. Hero MotoCorp, ICICI Bank and Maruti Suzuki unveil Q4 results on 26 April 2013. IDFC announces Q4 results on 1 May 2013.
Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on 3 May 2013. Grasim announces Q4 March 2013 results on 4 May 2013. HDFC unveils Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Dr. Reddys Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013.
The Reserve Bank of India (RBI) will announce the Monetary Policy Statement 2013-14 on 3 May 2013. The RBI cut its key policy rate viz. the repo rate by 25 basis points to 7.5% after a mid-quarter monetary policy review on 19 March 2013. Inflation based on the monthly wholesale price index (WPI) eased the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed.
The India Meteorological Department will issue its initial forecast of 2013 southwest monsoon in this month.
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.
Parliament reconvened for the second half of the Budget Session today, 22 April 2013. The session ends on 10 May 2013.
European stock markets edged higher on Monday, taking inspiration from a strong session in Asia, where markets rallied as the yen tumbled after a statement from the Group of 20 major economies. Key benchmark indices in UK, Germany and France were up by 0.48% to 0.58%.
Asian stocks rose for the second day in a row on Monday led by Japanese exporters as the yen slid to a four-year low against the US dollar after the Bank of Japan's stimulus policies were unopposed at a Group of 20 meeting. Key benchmark indices in Japan, South Korea, Hong Kong, Singapore and Taiwan rose by 0.14% to 1.89%. Key benchmark indices in China and Indonesia shed by 0.11% to 0.46%.
Bank of Japan (BOJ) Governor Haruhiko Kuroda emerged from the G-20 meeting saying he was emboldened to press ahead with the campaign to defeat deflation. The central bank holds a policy meeting this week after pledging on 4 April 2013 to double the monetary base in two years.
The G-20 leaders refrained from criticizing Japan for policies that recently sent the yen to multiyearr lows, which was widely interpreted as the international community offering its support for Tokyo's monetary stimulus.
Trading in US index futures indicated that the Dow could gain 49 points at the opening bell on Monday, 22 April 2013. US stocks rose on Friday as earnings from Google and other companies lifted tech shares.
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