Key benchmark indices hovered in red in morning trade. The barometer index, the S&P BSE Sensex, was down 67.18 points or 0.37%, off 40.53 points from day's high and up 31.16 points from the day's low. Index heavyweight Reliance Industries (RIL) edged higher ahead of the company's Q4 results tomorrow, 16 April 2013. Another index heavyweight and cigarette major ITC reversed initial losses.
Infosys extended Friday's slump triggered by the company issuing tepid revenue guidance at the time of announcing Q4 March 2013 and the year ended 31 March 2013 results. Other IT stocks were mixed. Gold financing companies dropped after prices of the yellow metal declined sharply on Saturday, 13 April 2013. IndusInd Bank rose after a large bulk deal was executed on the counter in early trade on BSE today, 15 April 2013.
Key benchmark indices cut losses after a weak opening triggered by lower Asian stocks. The Sensex hit its lowest level in more than 7 months. Key benchmark indices hovered in red in morning trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 28.59 crore on Friday, 12 April 2013, as per provisional data from the stock exchanges.
At 10:18 IST, the S&P BSE Sensex was down 67.18 points or 0.37% to 18,175.38. The index fell 98.34 points at the day's low of 18,144.22 at the onset of the trading session, its lowest level since 13 September 2012. The index declined 26.65 points at the day's high of 18,215.91 in morning trade.
The CNX Nifty was down 20.85 points or 0.38% to 5,507.70. The index hit a low of 5,500.30 in intraday trade. The index hit a high of 5,521.65 in intraday trade.
The market breadth, indicating the overall health of the market, turned negative from positive in morning trade. On BSE, 776 shares declined and 710 shares advanced. A total of 87 shares were unchanged.
The total turnover on BSE amounted to Rs 386 crore by 10:20 IST compared to Rs 125 crore by 09:30 IST
Among the 30-share Sensex pack, 17 stocks declined while rest of them gained.
Index heavyweight Reliance Industries (RIL) rose 0.68% at Rs 780.50. The scrip hit high of Rs 783.60 and a low of Rs 773.25 so far during the day. RIL announces Q4 results tomorrow, 16 April 2013.
Index heavyweight and cigarette major ITC rose 0.55% to Rs 294.70, reversing early decline. The scrip hit high of Rs 294.80 and a low of Rs 289.40 so far during the day. The stock had hit record high of Rs 310.75 on 4 February 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.
Infosys extended Friday's slump triggered after the company issuing tepid revenue guidance at the time of announcing Q4 March 2013 and the year ended 31 March 2013 results. The stock was off 3.08%. The scrip had tumbled 21.33% on Friday, 12 April 2013. Infosys' consolidated net profit as per International Financial Reporting Standards (IFRS) rose 1.1% to Rs 2394 crore on 0.3% growth in revenue to Rs 10454 crore in Q4 March 2013 over Q3 December 2012. Net profit rose 13.3% to Rs 9421 crore on 19.6% growth in revenue to Rs 40352 crore in the year ended March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The company announced the results before market hours on Friday, 12 April 2013.
The company has forecast a tepid 6% to 10% growth in revenue in both rupee terms and dollar terms for the year ending 31 March 2014 (FY 2014) as the company says that global economic uncertainties remain challenging for the IT industry. The revenue growth outlook is lower than industry body Nasscom's projection of 12% to 14% growth in IT exports in the current fiscal year. Infosys has not given full year earnings guidance this time. Infosys had earlier stopped offering quarterly guidance in July 2012.
Tata Consultancy Services (TCS) fell 1.53%. TCS announces Q4 results on 17 April 2013. TCS on 9 April 2013 said that it has signed definitive agreements for the acquisition of 100% equity shares in Alti SA, an IT services company in France, for a value of euro 75 million in an all cash transaction. The transaction will strengthen TCS's ability to service its customers in France and other regions in Europe. Alti SA is a privately held company owned by its management and two private equity funds, CM-CIC LBO Partners and IDI, which supported its growth from a revenue base of euro 64 million in 2007 to euro 126 million in 2012.
Wipro rose 1%. Wipro announces Q4 results on 19 April 2013. Wipro is now a company focused on the IT business following the demerger of non-IT businesses viz. consumer care products, the infrastructure engineering business and medical diagnostic product and services business. Following the demerger, which took effect on the bourses recently, the non-IT business of the company will be transferred to a separate company to be called Wipro Enterprises.
HCL Technologies rose 0.37%. The company on 3 April 2013 said that it is collaborating with North Carolina New Schools -- a statewide public-private catalyst for education innovation -- to create and promote science, technology, engineering and math (STEM) programs and get college students ready for the 21st century workforce.
IndusInd Bank rose 0.86% to Rs 403.30. The private sector bank rose on high early volume after a bulk deal of 13.40 lakh shares was executed on the counter at Rs 403 per share at 09:32 IST on BSE today, 15 April 2013.
Gold financing companies dropped after prices of the yellow metal declined sharply on Saturday, 13 April 2013. Muthoot Finance (down 17.16%) and Manappuram Finance (down 9.84%) declined.
Gold prices recorded their biggest ever fall of Rs 1,250 per 10 grams to hit a one-year low on Saturday, 13 April 2013. Gold finance companies run the risk of rising defaults on gold loans amid falling gold prices.
On the macro front, the government will unveil data on the wholesale price index (WPI) for March 2013 today, 15 April 2013. WPI inflation is projected to ease to 6.4% in March 2013 from 6.84% in February 2013, as per the median estimate of a poll of economists carried out by Capital Market. WPI inflation had edged up to 6.84% in February 2013 from 6.62% in January 2013.
The combined consumer price inflation for rural and urban India stood at 10.39% in March 2013, lower than 10.91% in February 2013, another data showed. Inflation under the category 'food and beverages' stood at 12.42%, the data showed.
Reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms could result in supply of equity in the market over the next few months. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 30 June 2013, while the deadline for state-run firms is 31 August 2013. PSU divestment will also add to share sale glut in FY 2014. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014.
The near term focus of the market is on Q4 results. Reliance Industries (RIL) announces Q4 results tomorrow, 16 April 2013. TCS announces Q4 results on 17 April 2013. IndusInd Bank announces Q2 results on 18 April 2013. Wipro announces Q4 results on 19 April 2013. Cairn India announces Q4 results on 22 April 2013. UltraTech Cement announces Q4 results on the same day.
HDFC Bank announces Q4 results on 23 April 2013. Axis Bank will announce its Q4 March 2013 results on 24 April 2013. ICICI Bank and Maruti Suzuki unveil Q4 results on 26 April 2013. IDFC announces Q4 results on 1 May 2013. ACC announces Q1 March 2013 results on 3 May 2013. HDFC announces 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.
The index of industrial production rose 0.6% in February 2013, data released by the government on Friday, 12 April 2013, showed. Manufacturing sector recorded a growth of 2.2%. The mining sector registered a decline of 8.1% and electricity sector declined 3.2%. As per use-based classification, production of basic goods declined 1.8% and that of intermediate goods fell 0.7%. Capital goods production rose 9.5%. Production of consumer non-durables rose 2.9% whereas that of consumer durables shrunk 2.7%.
Industrial production rose 0.9% during the period April 2012 to February 2013.
The India Meteorological Department will issue its initial forecast of 2013 southwest monsoon in this month.
The Reserve Bank of India (RBI) Governor D. Subbarao on 6 April 2013 said that the high fiscal deficit is a problem because it exacerbates inflation and impedes monetary policy transmission. The 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. The key macroeconomic priorities are to raise the growth rate, restrain inflation pressures and mitigate the vulnerability of the external sector, RBI said at that time. Even as the policy stance emphasises addressing the growth risks, the headroom for further monetary easing remains quite limited, the RBI said. The RBI said it will continue to actively manage liquidity through various instruments, including open market operations (OMO), so as to ensure adequate flow of credit to productive sectors of the economy.
On the political front, the Congress led UPA government has been reduced to a minority government, with DMK removing support to the government in March this year citing differences on the issue of atrocities on Tamils in Sri Lanka. Earlier, the Trinamool Congress withdrew support to the government in September last year as it opposed economic reforms. The Samajwadi Party (SP) along with its regional rival in Uttar Pradesh Bahujan Samaj Party (BSP) provide outside support to the UPA government. SP has 22 MPs in Lok Sabha and BSP has 21 MPs.
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.
The second half of the Budget session of the Parliament begins on 22 April 2013. The government has lined up a number of key bills for consideration and passing during the Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008. The Budget Session of the Parliament ends on 10 May 2013.
Assembly elections will be held in Karnataka on 5 May 2013 and the counting of votes and results of the election will be declared on 8 May 2013.
Asian stocks edged lower on Monday as the latest Chinese economic data came in weaker than expected. Key benchmark indices in Hong Kong, Singapore, South Korea, Japan, China, Taiwan and Indonesia were down by 0.17% to 1.52%.
Chinese economic data came in weaker than expected, as the nation reported first quarter gross domestic product, March industrial output and other statistics today, 15 April 2013. GDP for the January-March quarter rose 7.7% from a year earlier, weakening from 7.9% growth in the fourth quarter. Industrial production for March increased 8.9% from the year-earlier period, the weakest in more than a year and slowing from a 9.9% average rise for the January-February period, which China's statistics bureau reports in one figure due to seasonal distortions from the Lunar New Year holiday. March retail sales rose 12.6%, improving from 12.3% year-on-year growth in the January-February 2013 period, but far less than the 15.2% gain in December 2012.
Trading in US index futures indicated that the Dow could fall 37 points at the opening bell on Monday, 15 April 2013. US stocks closed slightly lower on Friday, 12 April 2013 after weak retail sales and consumer sentiment data indicated that the world's largest economy is losing momentum. US retail sales slid 0.4% in March 2013, the biggest decline since June 2012, Commerce Department figures showed on Friday, 12 April 2013.
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