Key benchmark indices edged lower in what was a choppy trading session as weakness in European and Asian stocks dampened sentiment. Investors were also worried that the Reserve Bank of India (RBI) may further hike policy rates in its next policy meet after the latest data showed consumer price inflation quickened in October. The S&P BSE Sensex hit lowest level in nearly five weeks. The 50-unit CNX Nifty hit its lowest level in five weeks below the psychological 6,000 mark. The Sensex was provisionally down 66.74 points or 0.33%, up close to 55 points from the day's low and off about 150 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
Index heavyweight and cigarette major ITC dropped. Banking giant State Bank of India (SBI) gained in volatile trade after declaring Q2 result. Realty stocks declined on concerns the central bank may further hike policy rates after the latest data showed consumer price inflation quickened in October. M&M rose on decent Q2 result. BPCL dropped on weak Q2 result. Shares of two-wheeler makers dropped.
Indian stocks declined for the seventh day in a row today, 13 November 2013.
The market regained positive terrain after opening lower. The S&P BSE Sensex and the 50-unit CNX Nifty, both, recovered after hitting their lowest level in nearly five weeks. It alternately hovered between gains and losses in morning trade. It slipped into the red after hitting fresh intraday high in mid-morning trade. It once again regained positive terrain in early afternoon trade. Key benchmark indices extended gains to hit fresh intraday high in afternoon trade. It weakened and hit fresh intraday low in mid-afternoon trade. It weakened once again after trimming intraday losses in late trade.
The domestic bourses will remain shut tomorrow, 14 November 2013, on account of Moharram.
As per provisional figures, the S&P BSE Sensex was down 66.74 points or 0.33% to 20,215.17. The index fell 120.27 points at the day's low of 20,161.64 in mid-afternoon trade, its lowest level since 10 October 2013. The index rose 83.68 points at the day's high of 20,365.59 in afternoon trade.
The CNX Nifty was down 23.55 points or 0.59% to 5,994.50, as per provisional figures. The index hit a low of 5,972.45 in intraday trade, its lowest level since 9 October 2013. The index hit a high of 6,042.25 in intraday trade.
The total turnover on BSE amounted to Rs 1901 crore, lower than Rs 1969.70 crore on Tuesday, 12 November 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,388 shares fell and 1,051 shares rose. A total of 158 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks fell and rest of them rose. Sesa Sterlite (down 1.9%), Cipla (down 2.24%) and GAIL (India) (down 2.2%), declined.
Index heavyweight and cigarette major ITC dropped 1.5%.
Another index heavyweight Reliance Industries fell 0.96%.
State Bank of India (SBI) rose 1.41% to Rs 1699, with the stock shrugging off company's weak Q2 result. The stock was volatile. It high a high of Rs 1735 and low of Rs 1653.40. The bank's net profit fell 35.08% to Rs 2375.01 crore on 12.89% increase in total income to Rs 37,199.92 crore in Q2 September 2013 over Q2 September 2012. The result was announced during trading hours today, 13 November 2013.
State Bank of India's ratio of net non-performing assets (NPA) to net advances stood at 2.91% as on 30 September 2013, compared with 2.83% as on 30 June 2013 and 2.44% as on 30 September 2012.
The bank's ratio of gross NPA to gross advances stood at 5.64% as on 30 September 2013, compared with 5.56% as on 30 June 2013 and 5.15% as on 30 September 2012.
Provisions and contingencies rose 65.90% to Rs 3028.74 crore in Q2 September 2013 over Q2 September 2012. The provisioning coverage ratio as on 30 September 2013 stood at 60.16%.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 11.69% as on 30 September 2013, compared with 11.85% as on 30 June 2013.
BPCL dropped 1.65% on weak Q2 result. The company's net profit slumped 81.5% to Rs 931.13 crore on 8.53% rise in total income to Rs 62241.32 crore in Q2 September 2013 over Q2 September 2012. The company announced result during market hours.
M&M rose 1.68% on decent Q2 result. The company's net profit rose 9.72% to Rs 989.50 crore on 8.34% fall in total income to Rs 9290.20 crore in Q2 September 2013 over Q2 September 2012. The company announced result during market hours.
In its outlook, M&M said that the Indian economy continues to struggle. With domestic demand weakening and manufacturing activity stagnating, growth in the first quarter of F2014 dropped to 4.4% and is likely to see only marginal improvement, if at all, in the second quarter. At the same time, inflation remains high and rising, limiting the space for growth supportive monetary policy action.
Nevertheless, we expect the economy to perform better in the second half of this fiscal, M&M said. First, as a result of both domestic policy actions and the US Fed maintaining status quo, near term balance of payments risks facing the Indian economy have eased, stabilizing the rupee and thus limiting cost-push inflationary pressures on the economy. Second, the robust agricultural harvest expected in the coming months is likely to dampen inflation while simultaneously boosting rural output, incomes & demand and thereby, productive activity in other segments of the economy.
Finally, with the advanced economies recovering, and the rupee no longer over-valued, exports should pick up speed in the coming quarters. Given these encouraging pointers, our current outlook on the economy is one of cautious optimism, M&M said.
Shares of two-wheeler makers dropped. Hero MotoCorp (down 1.85%) and Bajaj Auto (down 0.12%), declined.
Realty stocks declined on concerns the central bank may further hike policy rates after the latest data showed consumer price inflation quickened in October. DLF (down 1.18%), HDIL (down 2.12%), Sobha Developers (down 2.6%) and Unitech (down 1.53%), declined.
Gujarat Gas Company rose 2.79% on good Q2 result. The company's consolidated net profit rose 19.70% to Rs 119.08 crore on 0.23% fall in net sales to Rs 828.30 crore in Q3 September 2013 over Q3 September 2012. The result was announced after market hours on Tuesday, 12 November 2013.
Gujarat Gas Company (GGCL) said total volume of gas sold during the quarter was 247 million metric standard cubic metre (mmscm) compared with 239 mmscm in Q2 June 2013.
The company connected more than 7,600 new residential customers during the quarter, taking the total residential connections to more than 36,000 in nine months till date in the year 2013, higher than 34,600 connections made in the twelve months of 2012. The company also commissioned more than 67,500 standard cubic meters per day (scmd) of new volumes in the industrial sector during the quarter.
Speaking on the occasion of the results, Mr. Sugata Sircar, managing director, said "Our endeavour has been to anticipate movements in input costs to the extent possible and to prepare for the same through pricing and volume optimisation. This is showing results. Quarterly variations remain due to variability in certain factors. The results for the nine months ended 30 September 2013 also show a positive trend. The Board, considering the performance, cash balances and capital expenditure plans, declared an interim dividend of Rs 9 per equity share."
In the foreign exchange market, the rupee recovered against the dollar in choppy trade. The partially convertible rupee was hovering at 63.50, stronger compared with its close of 63.71 on Tuesday, 12 November 2013. The rupee was weak in early deals.
On macro front, index of industrial production (IIP) rose 2% in September 2013, showing increase in growth from 0.4% growth recorded in August 2013. The entire growth in IIP was mainly driven by 12.9% surge in electricity generation in September 2013. The mining output also witness rise in output, while the manufacturing sector output showed a marginal rise in September 2013. The industrial production growth for the month of August 2013 has been revised downwards to 0.4% from 0.6% reported earlier, while the growth for the month of June 2013 has undergone final revision, registering growth of (-1.8%). The data was announced after market hours on Tuesday.
The annual consumer price inflation quickened more than expected to 10.09% in October from 9.84% in September, driven by food prices, government data showed on Tuesday. Food prices for consumers last month rose 12.56% from a year earlier, faster than September's 11.44% rise. The data was announced after market hours on Tuesday.
European stocks retreated on Wednesday as investors weighed corporate earnings and awaited data that may show euro-area industrial output fell. Key benchmark indices in France, Germany and UK dropped 0.36% to 1.01%.
Asian stocks fell on Wednesday after China's leaders failed to outline steps to curb state dominance of the economy and amid bets the Federal Reserve may start reducing U.S. stimulus next month. Key benchmark indices in China, Taiwan, Japan, South Korea, Singapore, Hong Kong and Indonesia shed 0.15% to 1.91%.
China elevated the role of markets while maintaining the state's dominance in the nation's economic strategy, seeking to balance finding new sources of growth with sustaining the Communist Party's grip on power. The nation will make markets "decisive" in allocating resources, according to yesterday's communique from the third full meeting, or plenum, of the party's 18th Central Committee in Beijing, which stopped short of unveiling detailed policy shifts. The state will remain "dominant" in the economy, indicating limits on reducing government involvement. China will set up a party panel to coordinate and supervise policies under the updated principles and more specific measures may follow in the coming weeks or months. The communique also announced the party's determination to draw a red line to protect the environment, after years of economic expansion have polluted China's soil, water and air. China will also reform its judicial system to protect people's rights, it said.
Trading in US index futures indicated that the Dow could fall 25 points at the opening bell on Wednesday, 13 November 2013. US stocks fell on Tuesday, with the Dow Jones Industrial Average retreating from a record, as corporate earnings and an improving economy fueled speculation the Federal Reserve will reduce stimulus next month.
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