Key benchmark indices recovered in morning trade. The barometer index, the BSE Sensex turned positive. The CNX Nifty was marginally lower. The S&P BSE Sensex was up 6.29 points or 0.03%, up 87.79 points from the day's low and off 2.09 points from the day's high. Index heavyweight Reliance Industries (RIL) hovered in red. Jet Airways (India) rose on massive early volume after a staggering 36.85% equity stake of the air carrier changed hands in two block deals executed on the counter in opening trade on BSE today, 30 May 2013. The market breadth, indicating the overall health of the market was negative.
Auto stocks were in demand on renewed buying. Tata Motors gained after announcing Q4 earnings after market hours on Wednesday, 29 May 2013. Bike markets fell.
Key benchmark indices edged lower in early trade on weak Asian stocks. Key benchmark indices recovered in morning trade.
The market may remain volatile today, 30 May 2013 as traders roll over positions in the futures & options (F&O) segment from the near-month May 2013 series to June 2013 series. The May 2013 derivatives contracts expire today, 30 May 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 643.81 crore on Wednesday, 29 May 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 6.29 points or 0.03% to 20,153.93. The index fell 81.50 points at the day's low of 20,066.14 in early trade. The index rose 8.38 points at the day's high of 20,156.02 in morning trade.
The CNX Nifty was down 8.25 points or 0.14% to 6,096.05. The index hit a high of 6,103.40 in intraday trade. The index hit a low of 6,072.15 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 871 shares rose and 710 shares fell. A total of 103 shares were unchanged.
The total turnover on BSE amounted to Rs 2493 crore by 10:20 IST on BSE compared to Rs 2213 crore by 09:30 IST.
Among the 30-share Sensex pack, 16 stocks gained and the rest of them declined.
Index heavyweight Reliance Industries (RIL) shed 0.57% to Rs 842.40. The stock hit a high of Rs 846.50 and low of Rs 839.75 so far during the day. RIL and its partners BP and NIKO on 24 May 2013 announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of India. RIL is the operator of KG D6 with 60% equity. BP has a 30% share and NIKO the remaining 10%.
Meanwhile, ratings agency Standard & Poor's (S&P) on Wednesday, 29 May 2013, raised the long term corporate credit rating on RIL to "BBB+" from "BBB", with a "negative" outlook. RIL's articulation of its growth strategy removes the uncertainty regarding the company's use of its high cash balance, S&P said. RIL is planning to spend more than $30 billion on expansion over the next three years in core businesses such as refining, petrochemical, and exploration and production (E&P).
Auto stocks were in demand on renewed buying. Auto major Tata Motors gained 3.31%. The company's consolidated net profit declined 36.71% to Rs 3945 crore on 10% growth in revenue to Rs 56002 crore in Q4 March 2013 over Q4 March 2012. The fall in bottom line was due to base effect. Tata Motors had accounted for a large tax credit in Q4 March 2012. Tata Motors' British luxury car unit Jaguar Land Rover (JLR) had accounted for tax credit of 225 million pounds (Rs 1794 crore) in Q4 March 2012 for past income tax losses. Tata Motors' profit before tax (PBT) rose 6.1% to Rs 4694 crore in Q4 March 2013 over Q4 March 2012. Tata Motors attributed revenue growth to strong demand, growth in volumes and favourable market mix at JLR and favourable operating foreign exchange at the British luxury car unit. The result was announced after market hours on Wednesday, 29 May 2013.
Due to weak operating environment in the commercial vehicles and passenger car business in India, the board of Tata Motors pruned dividend to Rs 2 per share for the year ended 31 March 2013 (FY 2013) from Rs 4 per share for the year ended 31 March 2012 (FY 2012).
India's largest car maker by sales, Maruti Suzuki India gained 0.52%.
India's largest utility vehicle maker by sales, M&M advanced 2.51%.
Two wheeler makers slipped. Bajaj Auto fell 0.63%. The company's net profit fell 1% to Rs 766 crore on 4% rise in turnover to Rs 4990 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 1% to Rs 3044 crore on 3% growth in turnover to Rs 20793 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result was announced on 16 May 2013.
Bajaj Auto said that the company's performance in FY 2013 was good in a very difficult year for the automobile industry. The company's strategy to build strong brands and offer differentiated products in the front-end, and focus on cost and productivity improvements in the back-end, has yielded desired results, Bajaj Auto said.
India's largest motorcycle maker by sales, Hero MotoCorp shed 0.23%. The company after market hours on 23 May 2013 said that it has fixed 30 May 2013 as record date for ascertaining the names of the equity shareholders of Hero Investments (HIPL) in proportion of their holdings in HIPL for considering their entitlement for the purpose of issuance and allotment of equity shares in HMCL in the ratio of 1:1 i.e. one equity share for every one existing equity share held in HMCL by HIPL.
Jet Airways (India) rose 1.66% to Rs 544 on massive early volume of 3.19 crore shares. A block deal of 1.59 crore shares was struck on the counter at Rs 525 per share in opening trade on BSE today, 30 May 2013. Another block deal of 1.59 crore shares was executed on the counter at Rs 527.65 per share in opening trade on BSE today, 30 May 2013. The block deals saw a staggering 36.85% equity stake of Jet Airways (India) changing hands.
Tail Winds, a promoter of Jet Airways (India), is selling 43.17 lakh shares of the company representing approximately 5% of the total paid up equity share capital of today 30 May 2013 via Offer for Sale (OFS) through a separate window provided by the stock exchanges for this purpose. The floor price for the offer for sale has been fixed at Rs 510. The company announced the floor price for the OFS after trading hours on Wednesday, 29 May 2013.
The OFS got bids for 1,001 crore shares, compared with 43.17 lakh shares on offer, as per data from the stock exchanges. The OFS was subscribed 0.02% at an indicative bid price of Rs 515 per share.
On the macro front, the government will announce Q4 March 2013 gross domestic product (GDP) data tomorrow, 31 May 2013. India's GDP grew 4.5% in Q3 December 2012, sharply slower than the 5.3% expansion reported for Q2 September 2012.
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 declined on Thursday, undermined by an overnight pullback in global equities as investors assessed the implications of a potential softening of the Federal Reserve's massive monetary stimulus programme. Key benchmark indices in Hong Kong, Singapore, China, Taiwan and Indonesia were down by 0.29% to 1.42%. Japan's Nikkei 225 dropped 3.31% as tech and auto exporters, retailers and real-estate firms all fell sharply, with the exporter names suffering from the dollar's drop below the 101-yen mark. South Korea's Kospi Composite index rose 0.11%.
Trading in US index futures indicated a flat opening of US stocks on Thursday, 30 May 2013. US stocks fell sharply on Wednesday, with Wall Street giving back the prior day's gains, amid worries over global-growth prospects and fears the Federal Reserve will begin to scale back its bond-buying program.
In remarks prepared for a speech in Minneapolis, Federal Reserve of Boston President Eric Rosengren on Wednesday reiterated testimony last week by Federal Reserve Chairman Ben Bernanke, saying "significant accommodation remains appropriate at this time."
The Organization for Economic Cooperation and Development on Wednesday cautioned that global growth could get hit as governments pare back easy-money programs, and it gave a bleaker forecast for the euro-zone economy this year. Also, the International Monetary Fund on Wednesday cut its estimate for China's economic growth in 2013 and 2014.
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