Market may open slightly lower

The market may open lower on weak Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 13.50 points at the opening bell. Bharti Airtel and Kotak Mahindra Bank unveil Q4 results today, 2 May 2013.

PSU OMCs and auto stocks will be in focus as PSU OMCs on Tuesday, 30 April 2013, announced cut in petrol price by Rs 3 a litre, marking the fourth - and the steepest - reduction since December 2008, on the back of a continuous fall in international oil prices and a strengthening rupee. The government has already freed pricing of petrol.

 

Meanwhile, the Ministry of Petroleum and Natural Gas on Wednesday, 1 May 2013, said that the under-recovery on High Speed Diesel (HSD) applicable for first fortnight of May 2013, effective from 1 May 2013, has declined to Rs 3.80 per litre from Rs 6.42 per litre during the second fortnight of April 2013. In the case of PDS Kerosene, the under-recovery for the month of May 2013 stands at Rs 27.93 per litre. In case of domestic LPG, the under-recovery for May 2013 stands at Rs 378.38 per cylinder. The under-recovery for diesel is calculated on fortnightly basis whereas the under-recovery for both PDS Kerosene and domestic LPG is calculated on monthly basis. PSU OMCs are currently incurring daily under-recovery of about Rs 256 crore on the sale of Diesel, PDS Kerosene and Domestic LPG at government controlled prices.

Further, PSU OMC have reported gross under-recoveries of Rs 161029 crore for the fiscal 2012-13, which was significantly higher than the under-recoveries of Rs 1 38541 crore during previous fiscal 2011-12.

Car maker Maruti Suzuki India's total sales fell 3.1% to 97,302 units in April 2013 over April 2012. The company's domestic sales rose 0.3% to 90,523 units in April 2013 over April 2012. Exports fell 33.3% to 6,779 units in April 2013 over April 2012. The company announced its sales figures on Wednesday, 1 May 2013.

Mahindra & Mahindra (M&M), India's leading SUV manufacturer, on 1 May 2013, announced its auto sales numbers for April 2013 which stood at 41,432 units as against 40,715 units during April 2012. The Passenger Vehicles segment (which includes the UVs and Verito) registered a growth of 1%, having sold 20,748 units in April 2013, as against 20,554 units during April 2012. The company's domestic sales stood at 39,902 units during April 2013, as against 39,295 units during April 2012.

The 4 wheeler commercial segment which includes the passenger and load vehicles registered a 10% growth, having sold 14,414 units, while the 3 wheeler segment clocked 4,036 units in April 2013. Exports for the month of April 2013 stood at 1,530 units, a growth of 8%.

Mahindra & Mahindra's Farm Equipment Sector (FES), further reiterated its leadership position in the tractor industry in April 2013 by achieving an impressive 38% year on year growth to 23,202 units.

Tata Motors' total sales fell 15% to 51,160 in April 2013 over April 2012. Total domestic sales fell 17% to 47,595 in April 2013 over April 2012. Exports rose 28% to 3,565 during the period.

Hero MotoCorp's total sales fell 9.5% to 4.99 lakh in April 2013 over April 2012.

TVS Motor Company's total sales fell 5.3% to 1.65 lakh in April 2013 over April 2012. Total two-wheeler sales fell 6.4% to 1.60 lakh in April 2013 over April 2012. Exports fell 2.5% to 21,714 units.

Marico's consolidated net profit rose 20% to 84 crore on 9% growth in revenue from operations to Rs 999 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results after market hours on Wednesday, 1 May 2013.

Marico said net profit before considering some one time accounting adjustments rose 1% to Rs 72 crore on 9% growth in revenue from operations to Rs 999 crore in Q4 March 2013 over Q4 March 2012.

The top line growth during the quarter was predominantly volume led, Marico said. Domestic FMCG business recorded a volume growth of 14% during the quarter. The company continues to focus on new consumer acquisition across its portfolios as against maximizing margins in the short term. The company believes that this is a sounder way of operating in developing and emerging markets that would lead to reaping dividends in the long run, Marico said.

Infrastructure financing firm IDFC's consolidated net profit jumped 57% to Rs 525.70 crore on 28.89% growth in total income from operations to Rs 2217.51 crore in Q4 March 2013 over Q4 March 2012. The result was announced on Wednesday, 1 May 2013.

Key benchmark indices edged higher in volatile trade on Tuesday, 30 April 2013, after the Lok Sabha passed the Finance Bill for the 2013-14 fiscal year. The S&P BSE Sensex jumped 116.68 points or 0.6% to 19,504.18 on that day, its highest closing level since 14 March 2013. The stock market was closed on Wednesday, 1 May 2013, on account of Maharashtra Day.

Foreign institutional investors (FIIs) bought shares worth a net Rs 876.93 crore on Tuesday, 29 April 2013, as per provisional data from the stock exchanges.

The focus of the market is on Q4 results. ACC and Ambuja Cements announce Q1 March 2013 results tomorrow, 3 May 2013. Grasim and Jaiprakash Associates unveil Q4 results on Saturday, 4 May 2013. HDFC and Lupin unveil Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints and Punjab National Bank unveil Q4 results on 9 May 2013. NTPC announces Q4 results on 10 May 2013. Dr Reddys Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. BPCL announces Q4 results on 29 May 2013. M&M announces Q4 results on 30 May 2013.

Slowing wholesale price inflation has raised expectations that the Reserve Bank of India (RBI) will cut its key policy rate viz. the repo rate to boost economic growth. The (RBI) will announce the Monetary Policy Statement 2013-14 tomorrow, 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.

Inflation based on the monthly wholesale price index (WPI) eased to the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed.

Asian shares were edged lower on Thursday, weighed by a fall in US equities overnight and caution before the European Central Bank's interest rate decision later in the session. Key benchmark indices in China, Hong Kong, Indonesia, Japan and South Korea fell by 0.19% to 0.51%. Key benchmark indices in Taiwan and Singapore rose by 0.21% to 0.46%.

China's factory-sector growth eased in April as new export orders fell for the first time this year, a private survey showed on Thursday, suggesting the euro zone recession and sluggish US demand may be reining in China's economic recovery. The final HSBC Purchasing Managers' Index (PMI) dropped to 50.4 in April from March's 51.6 and was largely in line with a flash reading last week of 50.5. China's official PMI on Wednesday painted a similar picture, falling to 50.6 in April from an 11-month high of 50.9 in March as new export orders fell.

US stocks dropped on Wednesday after the latest economic data in the United States and China cast doubts about the strength of the global economy. The ADP National Employment Report on Wednesday said the US private sector added 119,000 jobs in April, far fewer than forecast, raising apprehension over the key government nonfarm payrolls data for April due on Friday, 3 May 2013. Also on Wednesday, the US Institute for Supply Management said its index of national factory activity fell to 50.7 from 51.3 in March and its employment index fell to 50.2 from 54.2.

The Federal Reserve gave few indications of any new response to worsening economic data in a statement released after its two-day meeting that ended on Wednesday. The US central bank cited risks to growth from recent budget tightening in Washington and reiterated that unemployment is still too high for policymakers' comfort.

In Europe, the European Central Bank's (ECB) Governing Council meets in Bratislava later in the global day today, 2 May 2013, to review euro area interest rates. The ECB is seen cutting euro area interest rates by 25 basis points to a record low of 0.5% as economic conditions continue to deteriorate across the euro zone and as inflation remains well below the bank's target.

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