Key benchmark indices were a tad lower in morning trade, having alternately swung between gains and losses so far during the day. The barometer index, the S&P BSE Sensex, was down 18.39 points or 0.09%, up close to 25 points from the day's low and off about 80 points from the day's high. Index heavyweight and cigarette major ITC edged higher ahead of its Q4 results today, 17 May 2013. Another index heavyweight Reliance Industries (RIL) edged lower. The market breadth, indicating the overall health of the market, was positive.
IT stocks rose on a weak rupee. Mahindra Satyam rose after Q4 results. In cement pack, Shree Cement hit record high.
The market reversed direction after a positive start. The 50-unit CNX Nifty reversed direction after hitting over 30-month high. Key benchmark indices were a tad lower in morning trade, having alternately swung between gains and losses so far during the day.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1070.33 crore on Thursday, 16 May 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was down 18.39 points or 0.09% to 20,228.94. The index rose 61.64 points at the day's high of 20,308.97 in early trade. The index fell 43.57 points at the day's low of 20,203.76 in morning trade.
The CNX Nifty was down 6.40 points or 0.1% to 6,163.50. The index hit a high of 6,188.60 in intraday trade, its highest level since 12 November 2010. The index hit a low of 6,153.85 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 652 shares advanced and 617 shares declined. A total of 65 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks fell and the rest of them rose. Tata Motors, NTPC and Tata Power Company rose by 0.64% to 1.27%.
Index heavyweight Reliance Industries (RIL) fell 0.35% to Rs 836.95. The stock hit a high of Rs 844.70 and low of Rs 834.25 so far during the day.
Index heavyweight and cigarette major ITC rose 0.5% to Rs 338.50. The stock hit a high of Rs 341.20 and low of Rs 337.50 so far during the day. The company announces its Q4 results today, 17 May 2013. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013.
The Centre 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.
Yes Bank fell 0.74% to Rs 538.60. The stock reversed direction after hitting record high of Rs 547.10 in intraday trade today, 17 May 2013.
Shree Cement rose 1.32% to Rs 4865. The stock hit record high of Rs 4870 in intraday trade today, 17 May 2013.
IT stocks rose on a weak rupee. The rupee was hovering at 54.90/91 per dollar, versus its close of 54.7750/7850 on Thursday. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Tata Consultancy Services (TCS) rose 1.35%.
HCL Technologies gained 1.46%. The company on Wednesday, 15 May 2013, announced that it has been selected by Husqvarna Group, a global leader in products and solutions for garden, park and forest care as well as construction, as a global strategic partner. HCL will provide comprehensive business transformation services to Husqvarna.
Infosys rose 1.39%. The company after trading hours on Wednesday, 15 May 2013, said that Turkland Bank (T-Bank), one of Turkey's leading private banks, has deployed Infosys' Finacle core banking, CRM and treasury solutions. This deployment empowers T-Bank to meet the needs of retail and corporate customer segments with faster product rollout and improved customer service, Infosys said.
Wipro rose 0.5%. The company on 9 May 2013 said that the Securities & Exchange Board of India (Sebi) has approved its proposal to meet the minimum public shareholding requirement through a transfer of equity shares by the promoter group to an 'Irrevocable Independent Trust' with trustees either from public sector banks or public financial institutions for advancing philanthropic activities through its beneficiaries. Wipro said that the company and the promoter group have undertaken multiple steps to fulfill the minimum public shareholding requirement including Offer for Sale (OFS). The demerger of the 'diversified' business is also expected to increase public shareholding. Any shortfall to meet public shareholding prior to due date of meeting the minimum public shareholding requirement would be transferred to the 'Irrevocable Independent Trust' and the trust shall effect a sale of such equity shares forming part of the trust funds within a period of two years from the date of such settlement, Wipro said.
Tech Mahindra gained 0.82%.
Mahindra Satyam rose 0.32% after Q4 results. The company's consolidated profit after tax jumped 467.5% to Rs 454 crore on 0.2% decline in revenue to 1936 crore in Q4 March 2013 over Q3 December 2012. The sharp surge in net profit on sequential basis was due to exceptional items. There was a one-time exceptional expense reversal of Rs 134 crore in Q4 March 2013. On the other hand, in Q3 December 2012, the company had incurred exceptional one-time loss of Rs 294.04 crore pertaining to the Aberdeen UK claim settlements. Mahindra Satyam's earnings before interest, taxation, depreciation and amortization (EBITDA) declined 7% to Rs 389.23 crore in Q4 March 2013 over Q3 December 2012. EBITDA margin declined to 20.1% in Q4 March 2013 from 21.6% in Q3 December 2012. The company announced the result after trading hours on Thursday, 16 May 2013.
Speaking on the occasion, CP Gurnani, CEO, Mahindra Satyam said, "The large deal win during the quarter is of particular significance and vindicates our investment of time and effort in this area. Our preparedness with Connected Solutions for a Connected World remains positive and we are hopeful of similar wins, which will help us accelerate our growth in the ensuing quarters".
Vineet Nayyar, Chairman, Mahindra Satyam said that the merger of Mahindra Satyam with Tech Mahindra is at its penultimate phase. He added that the merger will embark a new chapter for Mahindra Satyam.
As per the Q4 results calendar, Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Tata Steel, State Bank of India and Bharat Heavy Electricals (Bhel) unveil Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. Sun Pharma, Power Grid Corporation of India, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. Tata Motors, ONGC, NMDC and BPCL unveil Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on Wednesday, 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year.
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.
Asian stocks edged higher on Friday, 17 May 2013. Key benchmark indices in China, Indonesia and Japan were up 0.13% to 0.39%. Singapore's Strait's Times was flat. Taiwan's Taiwan Weighted fell 0.07%. Stock markets in Hong Kong and South Korean were closed for holidays.
Trading in US index futures indicated that the Dow could gain 20 points at the opening bell on Friday, 17 May 2013. US stocks fell on Thursday, 16 May 2013, after a Federal Reserve official tipped a pullback in the central bank's easing programs could come as soon as this summer. Media reports had last week suggeested that Fed officials have mapped out a strategy for winding down quantitative easing, although the timing hasn't been decided.
Meanwhile, the data from the Philadelphia Federal Reserve showed factory activity in the mid-Atlantic region contracted, while the Commerce Department reported that US housing starts plummeted 16.5% in April. New claims for jobless benefits unexpectedly jumped last week.
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