Key benchmark indices edged higher in early trade on positive Asian stocks. The S&P BSE Sensex was up 123.49 points or 0.6%, up 36.33 points from the day's low and off 21.68 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
GAIL (India) declined ahead of its Q3 results today, 29 January 2014. ICICI Bank rose ahead of its Q3 results today, 29 January 2014. NTPC rose after the company declared good Q3 result after market hours on Tuesday, 28 January 2014. Sesa Sterlite gained after reporting strong Q3 result after market hours on Tuesday, 28 January 2014. Maruti Suzuki India (MSIL) jumped on bargain hunting after sliding 8.12% on Tuesday, 28 January 2014 triggered by the company saying at the time of announcing Q3 December 2013 result during market hours on Tuesday, 28 January 2014 that the company's board has approved implementing the expansion project in Gujarat through a 100% subsidiary of Suzuki Motor Corporation, Japan. Bharti Airtel gained after reporting strong Q3 result during market hours today, 29 January 2014. Pidilite Industries lost after weak Q3 result announced after market hours on Tuesday, 28 January 2014.
Foreign institutional investors (FIIs) sold shares worth a net Rs 1267.35 crore on Tuesday, 28 January 2014, as per provisional data from the stock exchanges.
The market may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month January 2014 series to February 2014 series. The January 2014 F&O contracts expire tomorrow, 30 January 2014.
Asian markets edged higher on Wednesday after Turkey stunned investors with a huge hike in interest rates, stirring hopes the drastic action would short-circuit a vicious cycle of selling in emerging markets and revive risk appetite generally.
At 9:25 IST, the S&P BSE Sensex was up 123.49 points or 0.6% to 20,807. The index gained 145.17 points at the day's high of 20,828.68 in early trade. The index rose 87.16 points at the day's low of 20,770.67 in early trade.
The CNX Nifty was up 39.20 points or 0.64% to 6,165.45. The index hit a high of 6,169.40 in intraday trade. The index hit a low of 6,156.80 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 647 shares gained and 160 shares fell. A total of 34 shares were unchanged.
The total turnover on BSE amounted to Rs 87 crore by 09:20 IST.
Among the 30-share Sensex pack, 28 stocks gained and only two of them declined.
GAIL (India) declined 0.71% ahead of its Q3 results today, 29 January 2014.
ICICI Bank rose 1.35% ahead of its Q3 results today, 29 January 2014.
NTPC rose 1.36%. The company's net profit rose 10.2% to Rs 2861.28 crore on 19% increase in net sales to Rs 18779.39 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Tuesday, 28 January 2014.
Meanwhile, NTPC's board of directors at its meeting held on 28 January 2014 recommended an interim dividend of Rs 4 per share for the financial year ending 31 March 2014. The date of payment/dispatch of dividend shall be 10 February 2014, NTPC said.
Sesa Sterlite gained 1.13%. On a consolidated basis, Sesa Sterlite's net profit surged 276.12% to Rs 1868.29 crore on 7802.57% spurt in total income to Rs 19912.90 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Tuesday, 28 January 2014.
The Q3 December 2013 figures are non comparable with Q3 December 2012 as the merger of copper producer Sterlite Industries (India) and iron-ore miner Sesa Goa, to form Sesa Sterlite took effect in August 2013.
Mr. Anil Agarwal, Chairman: "The Sesa Sterlite merger was completed a few months ago, and the merged company has delivered a strong set of results, benefiting from its scale and diversification. We have record production of oil & gas and copper. We continue to focus on driving value-accretive growth across our portfolio of long-life assets and this, combined with efficient cost management has positioned us well to deliver superior returns for our shareholders".
Bharti Airtel gained 2.12%. On consolidated basis, Bharti Airtel's net profit jumped 115.08% to Rs 610.20 crore on 13.34% rise in total income to Rs 21960.70 crore in Q3 December 2013 over Q3 December 2012. The result was announced during market hours today, 29 January 2014.
In a statement, Mr. Gopal Vittal, JMD and CEO, India Operations, Bharti Airtel, said: "Our efforts over the last 12 months to improve the quality of customer acquisitions have resulted in significant reduction in customer churn. Our focus on superior internet experience has resulted in increased data adoption and usage. Data is now a huge source of revenue growth."
In a statement, Mr. Manoj Kohli, MD and CEO, International Operations, Bharti Airtel Limited, said: "The International operations continued to achieve steady revenue growth. Africa had another quarter of strong growth from the 3G/Data and Airtel Money services across all its markets and we expect this trend to sustain due to large investments in brand & network. The market growth came back in Nigeria which is the largest telecom market in the continent"
Meanwhile, Bharti Airtel after market hours on Tuesday, 28 January 2014 said that the board of directors of the company at its meeting held on Tuesday, 28 January 2014 has approved the changes in its top management. Mr. Manoj Kohli will become Chairman of Bharti Airtel International (Netherlands) B.V. that owns telecom operations in Africa, relinquishing the position of Managing Director & CEO (International) in Bharti Airtel. Mr. Manoj Kohli will continue on the Board of Bharti Airtel as Non-executive Director.
Mr. Christian de Faria has been appointed as the Managing Director and CEO (Africa) of Bharti Airtel International (Netherlands) B.V. and will assume full operational responsibility of the company's operations across 17 African geographies. Mr. Gopal Vittal has been appointed as the Managing Director and CEO (India & South Asia) and will also be responsible for Bangladesh and Sri Lanka operations.
Maruti Suzuki India (MSIL) jumped 7.02% on bargain hunting. The stock had tumbled 8.12% on Tuesday, 28 January 2014 after the company said at the time of announcing Q3 December 2013 result during market hours on Tuesday, 28 January 2014 that the company's board has approved implementing the expansion project in Gujarat through a 100% subsidiary of Suzuki Motor Corporation, Japan.
The board of MSIL had, on 29 October 2011, approved the purchase of land in Mehsana district of Gujarat for further expansion of manufacturing facilities. Following this decision, MSIL acquired approximately 640 acres of land in Becharaji and approximately 550 acres in Vithalapur. The expansion of facilities was kept on hold due to market conditions.
MSIL said its board recently received a proposal from Suzuki Motor Corporation (SMC) for implementing the expansion project through a 100% Suzuki subsidiary. The Suzuki subsidiary would always remain a 100% Suzuki owned company, MSIL said. MSIL said its board, on Tuesday, 28 January 2014, decided that the time was now appropriate to expand production facilities in Gujarat. The board approved implementing the expansion through a 100% Suzuki subsidiary because it would result in substantial financial benefits to MSIL, and its minority shareholders, MSIL said in a statement. MSIL would enter into a contract with this subsidiary company under which all production in the subsidiary company would be in accordance with the requirements of MSIL, and the vehicles would be sold to MSIL. The Suzuki subsidiary would not sell vehicles to anybody else.
The price of the vehicles to MSIL would include only the cost of production actually incurred by the subsidiary plus just adequate cash (net of all tax) to cover incremental capital expenditure requirements. The return on this investment for SMC would be realized only through the growth and expansion of MSIL's business, the company said.
MSIL said that the company would financially benefit from the interest earnings resulting from not investing its money in this project directly. It would also benefit because the vehicles would be sold to MSIL by the Suzuki subsidiary without any return on capital employed. MSIL would be able to avoid all risk inherent in any investment. MSIL would also retain the option of investing its own funds for strengthening its marketing network, product development, R&D and any other opportunity of growth or building strength for market leadership.
MSIL would render all required assistance to the subsidiary company for implementing this project on an arms' length basis. The land for the project would be leased by MSIL to the subsidiary company to establish the production and related facilities. The rent would be determined on an arms' length basis, the company said.
MSIL's net profit rose 35.9% to Rs 681.10 crore on 3% fall in net sales (net of excise) to Rs 10619.70 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced during market hours on Tuesday, 28 January 2014. Higher localization, favorable foreign exchange and cost reduction initiatives by the company contributed significantly to the growth in bottom line in Q3 December 2013, Maruti Suzuki India.
Maruti Suzuki India's total sales fell 4.4% to 2.88 lakh units Q3 December 2013 over Q3 December 2012. Exports dropped 38.6% to 19,966 units in Q3 December 2013 over Q3 December 2012. Maruti said that the company's market share in domestic market stood 42.8% in Q3 December 2013, registering a gain of 2.5% from Q3 December 2012.
Pidilite Industries lost 3.44%. On a consolidated basis, the company's net profit fell 18.27% to Rs 97.24 crore on 13.15% rise in total income to Rs 1075.87 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Tuesday, 28 January 2014.
Reliance Power rose 0.94%. The company after market hours on Tuesday, 28 January 2014 said that commercial operation has commenced at the second 660 megawatt unit of the 3,960 megawatt (6X660 megawatt) Sasan Ultra Mega Power Plant (UMPP) being developed by Sasan Power, a wholly owned subsidiary of the company.
Bharat Electronics rose 1.83%. The stock turned ex-dividend today, 29 January 2014, for the interim dividend of Rs 6 per share for the year ending 31 March 2014.
Asian markets edged higher on Wednesday after Turkey stunned investors with a huge hike in interest rates, stirring hopes the drastic action would short-circuit a vicious cycle of selling in emerging markets and revive risk appetite generally. Key benchmark indices in Hong Kong, China, Japan, Indonesia and South Korea rose by 0.31% to 2.18%. In Singapore, the Straits Times index fell 0.55%.
US stocks ended Tuesday, 28 January 2014 with the best gains in two weeks, as indexes rebounded from heavy losses in the previous three sessions. Rising emerging markets, upbeat earnings from Pfizer Inc. and Ford Motor Co., and a rise in consumer confidence lifted sentiment.
Consumer confidence climbed in January, with assessments of both the present situation and expectations improving, the Conference Board said Tuesday. The surprise rise took the index to the 80.7 level.
Orders for big-ticket US goods sank 4.3% in December and posted the biggest drop since midsummer, largely because of fewer bookings for autos, large aircraft and military hardware, the government said Tuesday.
US home prices ticked down 0.1% in November, the first decline in a year, with nine of 20 tracked cities posting price drops as winter approached, according to data released Tuesday.
A two-day monetary policy meeting of the Federal Open Market Committee (FOMC) concludes today, 29 January 2014. Federal Reserve officials have been scrutinizing US economic data to determine the timing and pace of reductions to asset purchases. The central bank decided at its December gathering to begin cutting its monthly bond buying by $10 billion to $75 billion.
Turkey's central bank hiked all of its key interest rates in dramatic fashion at an emergency midnight policy meeting on Tuesday, 28 January 2014, ignoring opposition from Prime Minister Tayyip Erdogan as it battles to defend the country's crumbling lira currency.
The bank raised its overnight lending rate to 12% from 7.75%, its one-week repo rate to 10% from 4.5%, and its overnight borrowing rate to 8% from 3.5%.
In a statement, the bank said it would maintain tight monetary policy until the inflation outlook showed a clear improvement. That could have a marked impact on Turkey's economic growth, which the government has forecast at 4% this year.
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