Market snaps four-day winning streak

Key benchmark indices trimmed losses after slipping into the red to hit fresh intraday low in late trade. The barometer index, the S&P BSE Sensex, was provisionally down 50.15 points or 0.25%, up close to 50 points from the day's low and off about 210 points from the day's high. Index heavyweight and cigarette major ITC settled flat in choppy trade. Another index heavyweight Reliance Industries (RIL) reversed intraday gains in late trade. The market breadth, indicating the overall health of the market, turned negative from positive. Capital goods stocks reversed intraday gains. Pharma stocks edged lower on profit booking.

 

Indian stocks snapped four-day winning streak today, 20 May 2013. Realty stocks edged lower on profit booking after recent gains triggered by expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013. Adani Enterprises jumped on strong Q4 results.

The market edged higher in early trade on firm Asian stocks. The barometer index, the S&P BSE Sensex hit highest level in over 28 months. The 50-unit hit over 30 month high. It held firm in morning trade. It trimmed gains after hitting fresh intraday high in mid-morning trade. It further pared intraday gains in early afternoon trade. Key benchmark indices held firm in afternoon trade. It hovered in positive terrain in mid-afternoon trade. It trimmed losses after slipping into the red to hit fresh intraday low in late trade.

Foreign institutional investors (FIIs) bought shares worth a net Rs 867.93 crore on Friday, 17 May 2013, as per provisional data from the stock exchanges.

As per provisional figures, the S&P BSE Sensex was down 50.15 points or 0.25% to 20,235.97. The index rose 157.50 points at the day's high of 20,443.62 in mid-morning trade, its highest level since 5 January 2011. The index fell 99.46 points at the day's low of 20,186.66 in late trade.

The CNX Nifty was down 25.55 points or 0.41% to 6,161.75, as per provisional figures. The index hit a high of 6,229.45 in intraday trade, its highest level since 11 November 2010. The index hit a low of 6,146.05 in intraday trade.

The total turnover on BSE amounted to Rs 1999 crore, lower than Rs 2135.20 crore on Friday, 17 May 2013.

The market breadth, indicating the overall health of the market, turned negative from positive in late trade. On BSE, 1,303 shares declined and 1,114 shares rose. A total of 131 shares were unchanged.

Among the 30-share Sensex pack, 18 stocks fell and the rest of them rose. Bharti Airtel, ONGC and Wipro shed by 1.74% to 2.36%. M&M, Maruti Suzuki India and Bajaj Auto rose by 1.63% to 2.15%.

Index heavyweight Reliance Industries (RIL) fell 0.29% to Rs 832. The stock hit high of Rs 854.80 and low of Rs 828.55.

Index heavyweight and cigarette major ITC rose 0.03% to Rs 334.80. The stock hit high of Rs 342.20 and low of Rs 334.05. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced during market hours on Friday, 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.

On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.

ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.

Capital goods stocks reversed intraday gains. BEML, Thermax, Siemens and L&T shed by 0.27% to 3.47%. But, Bhel rose 0.27%.

Pharma stocks edged lower on profit booking. Cipla, Dr Reddy's Laboratories, Lupin, Ranbaxy Laboratories and Wockhardt fell by 1.45% to 5.79%.

Realty stocks edged lower on profit booking after recent gains triggered by expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013. Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance. D B Realty, Godrej Properties and Sobha Developers and Unitech dropped by 0.63% to 3.61%.

DLF fell 0.56% to Rs 248.05. The realty major raised Rs 1863.42 crore from the issue of 8.10 crore shares to institutional investors at Rs 230 per share on 14 May 2013. The share sale was undertaken as an institutional placement programme (IPP) via an auction through the stock exchanges mechanism.

Adani Enterprises jumped 3.32% on strong Q4 results. The company's consolidated net profit jumped 53.4% to Rs 474 crore on 8.25% rise in revenues to Rs 11513 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results during market hours today, 20 May 2013.

As per the Q4 results calendar, L&T unveils Q4 results on 22 May 2013. Tata Steel, State Bank of India and Bharat Heavy Electricals (Bhel) unveil Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. Sun Pharma, Power Grid Corporation of India, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. Tata Motors, ONGC, NMDC and BPCL unveil Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.

Global credit rating agency Standard & Poor's (S&P) on Friday, 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.

The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year.

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.

European stock markets on Monday tracked another record close for U.S. stocks last week and an overnight rally in Asia, with banks leading most indexes higher. Key benchmark indices in UK, France and Germany were up by 0.25% to 0.56%.

Asian stock markets edged higher on Monday boosted by US equities hitting record closing highs on Friday as encouraging economic data prompted investors to buy into growth companies. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore and Taiwan rose by 0.11% to 1.78%. South Korea's Kospi fell 0.22%.

Thailand's growth was slower than economists estimated in the first quarter as exports cooled, boosting the case for the central bank to cut interest rates. Gross domestic product increased 5.3% in the three months through March from a year earlier, after expanding a revised 19.1% in the previous quarter, the National Economic and Social Development Board said in Bangkok today.

Trading in US index futures indicated a flat opening of US stocks on Monday, 20 May 2013. US stocks rose on Friday, advancing to a fourth weekly gain, with both the Dow Jones Industrials Average and the S&P 500 at their all-time closing high as gauges for leading indicators and consumer sentiment advanced more than estimated.

The index of U.S. leading indicators climbed in April, a rebound from March that suggests the world's largest economy may be poised for further expansion. The Conference Board's gauge of the outlook for the next three to six months climbed 0.6% last month after falling a revised 0.2% in March that was steeper than previously reported, the New York-based group said. Americans' confidence in the economy climbed in May to the highest level in almost six years as rising real estate values and record stock prices boosted household wealth.

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