Volatility continued in late trade as the key benchmark indices trimmed losses after hitting fresh intraday low and provisionally settled almost unchanged for the day. The barometer index, the S&P BSE Sensex, was provisionally down 0.79 points, up 36.41 points from the day's low and off 88.99 points from the day's high. The market breadth, indicating the overall health of the market, was positive.
Shares of HDFC Bank edged higher after good Q4 March 2014 results. MRF dropped in choppy trade after weak Q2 March 2014 results. Shares of other tyre makers also edged lower after MRF's weak Q2 results.
Sesa Sterlite dropped after the company during market hours today, 22 April 2014, said that consequent to the Supreme Court order dated Monday, 21 April 2014, all mining leases in the state of Goa, including those of Sesa Sterlite, have expired in 2007 and that no mining operations can be carried out until renewal/execution of mining lease deeds by the state government.
Key benchmark indices edged higher amid initial volatility. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high. Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. Key benchmark indices trimmed intraday gains in mid-morning trade. Key benchmark indices moved in a narrow range in positive zone in early afternoon trade. A bout of volatility was witnessed as key benchmark indices regained positive zone after reversing intraday gains in afternoon trade. Volatility continued in late trade as the key benchmark indices trimmed losses after hitting fresh intraday low.
Indian stocks may remain volatile tomorrow, 23 April 2014, as traders roll over positions in the futures & options (F&O) segment from the near month April 2014 series to May 2014 series. The April 2014 F&O contracts expire tomorrow, 23 April 2014. The stock market remains closed on Thursday, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
As per provisional closing, the S&P BSE Sensex was down 0.79 points to 22,764.04. The index gained 88.20 points at the day's high of 22,853.03 in morning trade, a lifetime high for the barometer index. The index fell 37.20 points at the day's low of 22,727.63 in late trade.
The CNX Nifty was down 2 points or 0.03% to 6,815.65. The index hit a high of 6,838 in intraday trade, a lifetime high for the index. The index hit a low of 6,806.25 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,521 shares gained and 1,328 shares fell. A total of 125 shares were unchanged.
The BSE Mid-Cap index was down 11.24 points or 0.15% at 7,386.17, underperforming the Sensex. The BSE Small-Cap index was up 1.13 points or 0.01% at 7,629.10, outperforming the Sensex.
The total turnover on BSE amounted to Rs 2492 crore, higher than Rs 2384.20 crore on Monday, 21 April 2014.
Bank stocks were mixed. Among private sector banks, Kotak Mahindra Bank (up 0.09%) and Axis Bank (up 0.05%) gained. Yes Bank fell 0.18%.
ICICI Bank rose 0.35% at Rs 1,286.05. The stock hit 52-week high of Rs 1,295.90 in intraday trade. The stock hit a low of Rs 1,270.30.
HDFC Bank rose 1.63% after net profit rose 23.1% to Rs 2326.52 crore on 14.94% increase in total income to Rs 12789.98 crore in Q4 March 2014 over Q4 March 2013. The company made the announcement during trading hours today, 22 April 2014.
HDFC Bank's net profit rose 26.05% to Rs 8478.40 crore on 17.03% increase in total income to Rs 49055.18 crore in the year ended March 2014 over the year ended March 2013.
On a consolidated basis, HDFC Bank's net profit rose 27.28% to Rs 8743.49 crore on 18.28% increase in total income to Rs 50852.52 crore in the year ended March 2014 over the year ended March 2013.
HDFC Bank's ratio of net non-performing assets (NPA) to net advances stood at 0.3% as on 31 March 2014, compared with 0.3% as on 31 December 2013 and 0.2% as on 31 March 2013.
The bank's ratio of gross NPA to gross advances stood at 1% as on 31 March 2014, compared with 1% as on 31 December 2013 and 1% as on 31 March 2013.
Provisions and contingencies fell 4.79% to Rs 286.13 crore in Q4 March 2014 over Q4 March 2013.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 16.1% as on 31 March 2014, compared with 14.7% as on 31 December 2013.
Net interest income (interest earned less interest expended) for the quarter ended 31 March 2014 accounted for 71.2% of net revenues and grew by 15.3% to Rs 4952.60 crore from Rs 4295.30 crore for the quarter ended 31 March 2013, driven by average asset growth of 20.3% and a net interest margin for the quarter of 4.4%.
Total deposits as on 31 March 2014 were Rs 367337 crore, an increase of 24% over 31 March 2013. Savings account deposits grew 16.9% over the previous year to reach Rs 103133 crore. Current account deposits grew 17.5% over the previous year to reach Rs 61488 crore. CASA deposits were 44.8% of total deposits as on 31 March 2014.
Advances as of 31 March 2014, were Rs 303000 crore, an increase of 26.4% over 31 March 2013. The domestic load mix between retail:wholesale is 53:47. Total advances in overseas branches as of 31 March 2014 were at 8% of the total advances as against 4% as of 31 March 2013. Adjusted for the one time increase in FCNR deposits swapped with RBI under the special window in the quarter ended 31 December 2013, and the related foreign currency loans, core deposits and advances growth for the year was 16.9% and 21.8% respectively.
The bank added 341 branches in the year ended 31 March 2014, of which 230 of these branches are in unbanked locations. As of 31 March 2014, the bank's distribution network was at 3,403 branches and 11,256 ATMs in 2,171 cities / towns as against 3,062 branches and 10,743 ATMs in 1,845 cities / towns as of 31 March 2013. 55% of the total branches are now in semi-urban and rural areas.
IndusInd Bank fell 1.33%, with the stock sliding on profit taking after recent gains. Shares of IndusInd Bank had risen 4.46% in three trading sessions to settle at Rs 505.75 on Monday, 21 April 2014, from a recent low of Rs 484.15 on 15 April 2014.
IndusInd Bank's net profit rose 28.83% to Rs 396.05 crore on 23.35% rise in total income to Rs 2702.19 crore in Q4 March 2014 over Q4 March 2013. The result was announced on 16 April 2014. IndusInd Bank said that the bank is targeting 25% to 30% annual loan growth during 2014-17. IndusInd Bank announced Q4 result on 16 April 2014.
South Indian Bank rose 0.81% after the central bank allowed foreign investors to buy shares in South Indian Bank as the foreign shareholding in the bank has gone below caution limit stipulated under the extant FDI policy. The Reserve Bank of India (RBI) on Monday, 21 April 2014, notified that the aggregate share holding by foreign institutional investors (FIIs)/non-resident indians (NRIs)/persons of Indian origin (PIOs)/foreign direct investment (FDI)/American depository receipt (ADR)/global depository receipts (GDRs) under the portfolio investment scheme (PIS) in South Indian Bank have gone below the prescribed threshold caution limit stipulated under the extant FDI policy. Hence the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect.
Equity shares of South Indian Bank can now be purchased through primary market and stock exchanges, RBI said in a statement.
Currently, FIIs are allowed to invest upto 49% of the paid-up capital of South Indian Bank under the portfolio investment scheme (PIS). As on 31 March 2014, FIIs held 41.69% stake in South Indian Bank.
Among PSU bank stocks, State Bank of India (SBI) (down 0.99%), Union Bank of India (down 2.65%), Bank of India (down 0.13%), Canara Bank (down 0.75%), Bank of Baroda (down 0.63%) and Punjab National Bank (down 2.24%) declined.
Sesa Sterlite dropped after the company during market hours today, 22 April 2014, said that consequent to the Supreme Court order dated Monday, 21 April 2014, all mining leases in the state of Goa, including those of Sesa Sterlite, have expired in 2007 and that no mining operations can be carried out until renewal/execution of mining lease deeds by the state government. The stock lost 4.04%. The Supreme Court in its order dated Monday, 21 April 2014, lifted the ban on mining in the state of Goa, subject to certain conditions. The Supreme Court has imposed an interim restriction on the maximum annual excavation from the mining leases in Goa at 20 million tonnes subject to determination of final capacity by Expert Committee appointed by the Supreme Court.
Sesa Sterlite said that the company is working towards securing the necessary permissions for commencement of mining operations in Goa at the earliest.
MRF lost 3.58% to Rs 22,720 on weak Q2 results. The stock witnessed immense volatility after the result hit the market in mid-afternoon trade. The stock hit high of Rs 23,660 and low of Rs 21,400. MRF's net profit declined 18.86% to Rs 170.87 crore on 13.66% growth in total income to Rs 3309.66 crore in Q2 March 2014 over Q2 March 2013.
MRF's operating profit margin (OPM) declined sharply to 12.5% in Q2 March 2014, from 15.28% in Q2 March 2013. On sequential basis, the OPM declined from 13.08% in Q1 December 2013.
Shares of other major tyre makers dropped after MRF's weak Q2 results. Apollo Tyres (down 4.71%), CEAT (down 2.97%), Goodyear India (down 2.03%), JK Tyre & Industries (down 5.85%) and TVS Srichakra (down 3.77%) declined.
In the foreign exchange market, the rupee edged lower against the dollar on the back of heavy dollar demand from oil importers. The partially convertible rupee was hovering at 60.785, compared with its close of 60.59/60 on Monday, 21 April 2014.
An El Nino will probably start as soon as July, according to the Australian government forecaster, adding to predictions for the event that can affect weather patterns worldwide and roil farm-commodity prices. All the climate models surveyed indicated that an El Nino was likely this year, with six of seven models suggesting that thresholds for the event may be exceeded as early as July, the Bureau of Meteorology said in a statement today, 22 April 2014. A warming of the Pacific Ocean, which drives the changes by affecting the atmosphere above it, will probably continue in the coming months, the Melbourne-based bureau said.
The chances of an El Nino have increased to 65% from 52%, the US Climate Prediction Center said on 10 April 2014. There are signs that an El Nino is imminent, presaging changes to global weather patterns, the UN's World Meteorological Organization said on 15 April 2014.
An El Nino phenomenon is associated with above-average water temperatures in the central and eastern Pacific and can in its worst form bring drought to West Africa (the world's largest cocoa producing region), less rainfall to India during its vital monsoon season and drier conditions for the cultivations crops such as sugar and cotton in major grower Australia.
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 stocks edged higher on Tuesday, 22 April 2014, aided by strength from a number of pharmaceutical shares following reports that Pfizer Inc. will bid for British drug maker AstraZeneca PLC and after Novartis AG outlined changes in its portfolio lineup, including plans to buy GlaxoSmithKline PLC's oncology unit for about $14.5 billion. Key benchmark indices in France, Germany and UK were up 0.78% to 1.07%.
Asian stock markets edged higher in choppy trade Tuesday, 22 April 2014, after Wall Street stocks rallied into a fifth session overnight. Key benchmark indices in Taiwan, China, Singapore, Indonesia and South Korea were up 0.12% to 0.67%. Key benchmark indices in Hong Kong and Japan were off 0.13% to 0.85%.
A provisional reading of HSBC Holdings Plc and Markit Economics Ltd.'s China manufacturing purchasing managers' index is due tomorrow, 23 April 2014.
Trading in US index futures indicated a flat opening of US stocks on Tuesday, 22 April 2014. US stocks closed modestly higher on Monday, 21 April 2014, helping the S&P 500 to extend its winning streak to the longest in six months. Estimate-beating results from a number of companies on Monday boosted sentiment amid thin volumes on Wall Street.
In economic news, the Chicago Fed National Activity Index decreased slightly in March. However, the Conference Board's leading economic index rose in March and February, signaling that growth could accelerate in coming months.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
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