Key benchmark indices edged higher after swinging alternately between positive and negative terrain in mid-morning trade. The market breadth was negative. The barometer index, the S&P BSE Sensex, was up 48.58 points or 0.27%, up about 55 points from the day's low and off close to 105 points from the day's high. Index heavyweight and cigarette maker ITC extended intraday losses. Another index heavyweight Reliance Industries (RIL) edged lower in choppy trade. Auto stocks edged lower. Shares of bike makers rose.
The market edged higher amid initial volatility. Key benchmark indices regained positive zone after slipping into the red for a brief period in morning trade. Key benchmark indices edged higher after swinging alternately between positive and negative terrain in mid-morning trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 664.90 crore on Tuesday, 9 April 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 48.58 points or 0.27% to 18,275.06. The index jumped 155.78 points at the day's high of 18,382.26 in early trade. The index fell 6.01 points at the day's low of 18,220.47 in mid-morning trade.
The CNX Nifty was up 12.30 points or 0.22% to 5,507.40. The index hit a high of 5,536.40 in intraday trade. The index hit a low of 5,488.60 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 974 shares fell and 695 shares rose. A total of 97 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose while rest of them fell.
Index heavyweight Reliance Industries (RIL) declined 0.11% at Rs 777.20. The scrip hit high of Rs 783.70 and a low of Rs 772.15 so far during the day. Shares of Reliance Communications rose 2.95%. RIL's telecom unit Reliance Jio Infocomm and Reliance Communications (RCom) on 2 April 2013 announced the signing of a definitive agreement for approximately Rs 1200 crore as one time indefeasible right to use (IRU) fees for sharing RCom's nationwide inter-city fiber optic network infrastructure. Reliance Jio Infocomm will utilize multiple fiber pairs across RCom's 1.2 lakh kilometres inter-city fiber optic network to provide a robust and future proof backbone for rolling out its state-of-the-art 4G services. As per the agreement, RCom will in turn have reciprocal access to optic fiber infrastructure to be built by Reliance Jio Infocomm in the future.
The agreement provides for joint working arrangements to be put in place immediately for upgradation of the optic fiber network to ensure seamless delivery of next generation services.
Index heavyweight and cigarette major ITC fell 0.85% to Rs 284.80. The scrip hit high of Rs 290.20 and a low of Rs 282.10 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.
Auto stocks edged lower. Maruti Suzuki India fell 0.71%. Maruti announced during market hours on Tuesday, 2 April 2013, that its total sales declined 4.8% to 1,19,937 units in March 2013 over March 2012. The company's domestic sales fell 4.3% to 1,07,890 units in March 2013 over March 2012. The company's exports dropped 8.9% to 12,047 units in March 2013 over March 2012
Tata Motors declined 0.51%. The company's total sales (including exports) of Tata commercial and passenger vehicles in March 2013 were 72,712 vehicles. The company's domestic sales of Tata commercial and passenger vehicles for March 2013 were 69,160 units. Cumulative sales (including exports) for the company were 8.10 lakh units in FY 2013. Tata Motors announced the monthly sales data on 1 April 2013.
Mahindra & Mahindra (M&M) dropped 0.82%. M&M's total automobile sales rose 11% to 51,904 units in March 2013 over March 2012. The company's domestic sales rose 11% to 49,225 units in March 2013 over March 2012. Exports for the month of March 2013 stood at 2,679 units. Sales of passenger vehicles (which includes UVs and Verito) rose 13% to 25,847 units in March 2013 over March 2012. Sales of 4 wheeler commercial segment, which includes the passenger and load vehicles, jumped 17% to 17,212 units in March 2013 over March 2012. Sales of 3-wheelers declined 5% to 4,831 units in March 2013 over March 2012. M&M announced the monthly sales data during trading hours Monday, 1 April 2013.
The company's domestic tractor sales declined 2.31% to 15,551 units in March 2013 over March 2012. The company's total tractor sales declined 0.43% to 17,330 units in March 2013 over March 2012. Exports jumped 20% at 1,779 units in March 2013 over March 2012. M&M announced the monthly tractor sales data during trading hours Monday, 1 April 2013. M&M said that the company maintained its leadership position in the Indian tractor industry during the year ended 31 March 2013 (FY 2013).
Ashok Leyland was flat. The company reported a 2% decline in total sales at 14,020 units in March 2013 over March 2012. However, sales of small commercial vehicle 'DOST' spurted 96% to 4,325 units in March 2013 from 2,211 units sold in March 2012.
Shares of bike makers rose. Bajaj Auto gained 0.6%. The company announced during market hours on 2 April 2013, that its total sales fell 10% to 3.01 lakh units in March 2013 over March 2012. Motorcycles sales declined 11% to 2.67 lakh units in March 2013 over March 2012. Commercial vehicles sales fell 1% to 34,194 units in March 2013 over March 2012. Exports declined 6% to 1,01,374 units in March 2013 over March 2012.
Shares of Hero MotoCorp rose 0.09%.
Tata Consultancy Services (TCS) rose 1.32% after the company said during market hours today, 10 April 2013 that the High Court of Judicature at Bombay has approved the Scheme of Amalgamation between Computational Research Laboratories (CRL) and Retail Fullserve (RFL) and Tata Consultancy Services (TCS). The formalities connected with filing of the Order with Registrar of Companies (ROC) have been completed, TCS said in a statement.
TCS on Tuesday, 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.
TCS announces Q4 results on 17 April 2013.
The upside on the domestic bourses may be capped as 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 will 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 Q4 March 2013 corporate earnings season will begins this week. Infosys announces Q4 results on Friday, 12 April 2013. Reliance Industries (RIL) announces Q4 results on 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. 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. 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.
On the macro front, the government will unveil industrial production data for February 2013 on Friday, 12 April 2013. Industrial production had risen 2.4% in January 2013, as against a contraction of 0.5% in December 2012.
The government will unveil data on the combined consumer price index for urban and rural India for March 2013 on 12 April 2013. Inflation based on the combined consumer price index for urban and rural India had edged up to 10.91% in February 2013, from 10.79% in January 2013.
The government will unveil data on the wholesale price index (WPI) for March 2013 on 15 April 2013. The annual rate of inflation, based on the monthly wholesale price index (WPI), edged up to 6.84% in February 2013 from 6.62% in January 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 rose on Wednesday pushing the benchmark regional equities gauge higher for a third day, as commodity producers advanced and a report showed China's imports jumped. Key benchmark indices in South Korea, Hong Kong, Japan and Taiwan rose by 0.11% to 0.75%. Key benchmark indices in China, Indonesia and Singapore shed by 0.26% to 0.54%.
China's imports rose by an above-forecast 14.1% in March while shipments abroad increased 10% from a year earlier, the customs administration said today in Beijing.
Trading in US index futures indicated that the Dow could fall 9 points at the opening bell on Wednesday, 10 April 2013. US stocks rose on Tuesday, lifting the Dow Jones Industrial Average to a record high, as Wall Street embraced the start of first-quarter earnings. The Federal Open Market Committee releases minutes of its March 19-20 meeting later in the global day today.
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