Key benchmark indices cut losses after a weak opening triggered by lower Asian stocks. The barometer index, the S&P BSE Sensex, was down 46.20 points or 0.25%, up 52.14 points from day's low and off 59.19 points from the day's high. Index heavyweight Reliance Industries (RIL) rose in early trade ahead of its Q4 results tomorrow, 16 April 2013. Another index heavyweight and cigarette major ITC slipped in early trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 28.59 crore on Friday, 12 April 2013, as per provisional data from the stock exchanges.
At 9:28 IST, the S&P BSE Sensex was down 46.20 points or 0.25% to 18,196.36. The index fell 98.34 points at the day's low of 18,144.22 at the onset of the trading session. The index declined 39.15 points at the day's high of 18,203.41 in early trade.
The CNX Nifty was down 17.35 points or 0.31% to 5,511.25. The index hit a low of 5,500.30 in intraday trade. The index hit a high of 5,514.70 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 520 shares advanced and 444 shares declined. A total of 44 shares were unchanged.
The total turnover on BSE amounted to Rs 125 crore by 09:30 IST.
Among the 30-share Sensex pack, 22 stocks declined while rest of them gained.
Index heavyweight Reliance Industries (RIL) rose 0.22% at Rs 777. RIL announces Q4 results tomorrow, 16 April 2013.
Index heavyweight and cigarette major ITC fell 0.92% to Rs 290.40. 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.
State Bank of India shed 0.19%. The state-run bank after market hours on Friday, 12 April 2013, said it has concluded the issue of $1 billion Fixed Rate Senior Unsecured Notes having a maturity of 5 years at a coupon of 3.25% per annum payable semi-annually, under a standalone bond issue under Rule 144A/Regulation-S of US Securities Exchange Commission (SEC), in the form of 144A/Regulation-S Notes. The Bonds will be issued through its London branch as of 18 April 2013 and shall be listed on Singapore Stock Exchange (SGX).
Sun Pharmaceutical Industries rose 0.72%. The company before market hours today, 15 April 2013, announced that the USFDA has granted its subsidiary, two tentative approvals for its Abbreviated New Drug Applications (ANDA) for generic version of Januvia, Sitagliptin Tablets and generic version of Glumetza, Metformin HCl Extended-release tablets.
Sitagliptin tablets, 25 mg, 50 mg and 100 mg are therapeutic equivalents of Merck Sharp & Dohme Corporation's Januvia tablets. Sitagliptin tablets have annual sales of approximately $2.7 billion in the US. Sitagliptin tablets are indicated as an adjunct to diet and exercise to improve glycemic control in adults with type-2 diabetes mellitus.
Metformin HCl Extended-release tablets, 500 mg and 1000 mg are therapeutic equivalents of Santarus Inc.'s Glumetza tablets. Metformin HCl Extended-release tablets have annual sales of approximately $140 million in the US. Metformin HCl Extended-release tablets are indicated as an adjunct to diet and exercise to improve glycemic control in adults with type-2 diabetes mellitus.
Lupin rose 1%. The company after market hours on Friday, 12 April 2013, said that its subsidiary Lupin Pharmaceuticals Inc. (collectively Lupin) has received final approval for its Daysee Tablets (Levonorgestrel and Ethinyl Estradiol Tablets, USP, 0.15 mg/0.03 mg and Ethinyl Estradiol Tablets, USP, 0.01 mg) from the United States Food and Drugs Administration (US FDA) to market a generic version of Teva Branded Pharm's Seasonique Tablets. Lupin has already commenced shipping the product. Lupin's Daysee tablet is indicated for use by women to prevent pregnancy. According to IMS MAT December 2012 data, the total sales for Branded and generic sales for the product stood at $161 million in US.
L&T fell 1.07%. The company after market hours on Friday, 12 April 2013, said that it would acquire 50% stake in L&T-Komatsu (LTK) held by Komatsu Asia & Pacific Pte, a wholly owned subsidiary of Komatsu, Japan. With this buy-out, LTK will become a wholly owned subsidiary of L&T. LTK will continue to manufacture construction equipment and hydraulic components. Komatsu will be responsible for the production of Komatsu equipment including hydraulic excavators, L&T said in a statement.
As a result of this transaction, the companies expect to able to provide premium products and services to customers, and maintain leadership position in construction & mining equipments business, offering state-of-the-art machines with highest level of quality and latest designs from Komatsu, L&T said. L&T will continue to be responsible for marketing, sales and product support in India for the Komatsu range of products, assuring customers of the highest level of Support, L&T said in a statement.
Mahindra & Mahindra (M&M) declined 1.08%. The company after market hours on Friday, 12 April 2013, announced that its new Sub 4 metre Verito will be named the 'Verito Vibe'. The much awaited launch of the 'Verito Vibe' is scheduled next month. The 'Verito Vibe' is indigenously designed and developed by M&M and is smartly packaged in a sub-4 metre length on the proven Verito platform, M&M said.
The 'Verito Vibe' will be packaging the well acclaimed strengths of class-leading space and comfort, robust build and the ever reliable 1.5 Litre dCi Diesel Engine. The Verito Vibe will sport some first in class styling elements in this younger and sportier avatar. M&M has decided on the name 'Vibe' for its newest offering, with the aim of conveying a distinctive youthful and vibrant imagery. 'Vibe' targets the socially aware, young consumer of today, M&M said.
Speaking on the 'Verito Vibe', Pravin Shah, Chief Executive, Automotive Division, M&M, said: "Customer centric innovation has always been at the heart of any product development at the Mahindra Group. The Verito Vibe marks our entry in the high volume sub 4 metre segment. While developing this product we have paid particular attention to making this car look different and we are sure that it will appeal to customers with its young and sporty looks and that too without compromising the benefits which our existing Verito has to offer."
The government will unveil data on the wholesale price index (WPI) for March 2013 today, 15 April 2013. WPI inflation is projected to ease to 6.4% in March 2013 from 6.84% in February 2013, as per the median estimate of a poll of economists carried out by Capital Market. WPI inflation had edged up to 6.84% in February 2013 from 6.62% in January 2013.
The combined consumer price inflation for rural and urban India stood at 10.39% in March 2013, lower than 10.91% in February 2013, another data showed. Inflation under the category 'food and beverages' stood at 12.42%, the data showed.
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 could 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 near term focus of the market is on Q4 results. Reliance Industries (RIL) announces Q4 results tomorrow, 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. UltraTech Cement announces Q4 results on the same day.
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. ACC announces Q1 March 2013 results on 3 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.
The index of industrial production rose 0.6% in February 2013, data released by the government on Friday, 12 April 2013, showed. Manufacturing sector recorded a growth of 2.2%. The mining sector registered a decline of 8.1% and electricity sector declined 3.2%. As per use-based classification, production of basic goods declined 1.8% and that of intermediate goods fell 0.7%. Capital goods production rose 9.5%. Production of consumer non-durables rose 2.9% whereas that of consumer durables shrunk 2.7%.
Industrial production rose 0.9% during the period April 2012 to February 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 edged lower on Monday as the latest Chinese economic data came in weaker than expected. Key benchmark indices in Hong Kong, Singapore, South Korea, Japan, China, Taiwan and Indonesia were down by 0.3% to 1.52%.
Chinese economic data came in weaker than expected, as the nation reported first quarter gross domestic product, March industrial output and other statistics today, 15 April 2013. GDP for the January-March quarter rose 7.7% from a year earlier, weakening from 7.9% growth in the fourth quarter. Industrial production for March increased 8.9% from the year-earlier period, and slowing from a 9.9% average rise for the January-February period, which China's statistics bureau reports in one figure. March retail sales rose 12.6%, however, improving from 12.3% year-on-year growth in the January-February period.
US stocks closed slightly lower on Friday, 12 April 2013 after weak retail sales and consumer sentiment data indicated that the world's largest economy is losing momentum.
In economic data, March retail sales fell 0.4% following a 1.1% surge in February.
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