Weakness persisted on the bourses in mid-afternoon trade as weakness in European markets weighed on sentiment. The barometer index, the S&P BSE Sensex, was down 84.81 points or 0.42%, off 140.48 points from the day's high and up 31.27 points from the day's low. The market breadth, indicating the overall health of the market was negative.
Metal stocks declined after the International Monetary Fund (IMF) cut its growth forecast for China citing a weak world economy and exports. Hindalco Industries fell on poor Q4 result announced after market hours on Tuesday, 28 May 2013. Sun Pharmaceutical Industries surged after good Q4 result and a liberal 1:1 bonus issue announced after market hours on Tuesday, 28 May 2013. NHPC fell on poor Q4 result announced after market hours on Tuesday, 28 May 2013. Wockhardt was locked at 10% lower circuit. Aditya Birla Nuvo slipped after announcing Q4 results during market hours today, 29 May 2013.
Key benchmark indices reversed direction after a positive start. The barometer index, the BSE Sensex, hit its highest level in a week at the onset of the trading session. Key benchmark indices cut losses in morning trade. Key benchmark indices hovered in red in mid-morning trade. A bout of volatility was witnessed in early afternoon trade as key benchmark indices trimmed losses after hitting fresh intraday low in early afternoon trade. The market extended losses to hit fresh intraday low in afternoon trade. Weakness persisted on the bourses in mid-afternoon trade.
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 May 2013 series to June 2013 series. The May 2013 derivatives contracts expire tomorrow, 30 May 2013.
At 14:16 IST, the S&P BSE Sensex was down 84.81 points or 0.42% to 20,076.01. The index gained 55.67 points at the day's high of 20,216.49 in early trade, its highest level since 22 May 2013. The index fell 116.08 points at the day's low of 20,044.74 in afternoon trade.
The CNX Nifty was down 31.60 points or 0.52% to 6,079.65. The index hit a low of 6,069.80 in intraday trade. The index hit a high of 6,125.05 in intraday trade.
The market breadth, indicating the overall health of the market was negative. On BSE, 1,343 shares declined and 915 shares gained. A total of 139 shares were unchanged.
The total turnover on BSE amounted to Rs 1282 crore by 14:20 IST
Among the 30-share Sensex pack, 20 stocks declined and the rest of them gained.
Metal stocks declined after the International Monetary Fund (IMF) cut its growth forecast for China this year to 7.75% from 8%, citing a weak world economy and exports, adding to concerns that the world's second-largest economy is losing momentum. China is the world's largest consumer of copper and aluminum.
Sterlite Industries (India) (down 2.37%), JSW Steel (down 2.18%), Tata Steel (down 2.38%), Sail (down 2.46%), National Aluminium Company (down 0.06%), Hindustan Zinc (down 0.91%), Jindal Steel & Power (down 2.48%) edged lower.
Hindalco Industries lost 1.14% after net profit fell 24.68% to Rs 482 crore on 8.53% decline in revenue from operations to Rs 6994 crore in Q4 March 2013 over Q4 March 2012. The Q4 result was announced after market hours on Tuesday, 28 May 2013.
Hindalco Industries said that the operational results for Q4 March 2013 showed significant improvement over Q3 December 2012, with EBITDA rising over 10% on sequential basis. The company said it delivered sequentially an improved EBITDA in every quarter during the year ended 31 March 2013 (FY 2013). The operating margin of the company grew by 72 basis points on sequential basis in Q4 March 2014 due to operational efficiencies. Net profit rose 11.05% to Rs 482 crore in Q4 March 2013 over Q3 December 2012.
Hindalco Industries said the company's ongoing projects with cumulative investment of about Rs 28000 crore have either been commissioned or at advanced stages of commissioning/implementation.
Sun Pharmaceutical Industries galloped 7.53% to Rs 1,070.50 after striking a record high of Rs 1,079.90 in intraday trade today, 29 May 2013. The company's consolidated net profit rose 23.3% to Rs 1011.56 crore on 31.8% rise in net sales to Rs 3071.49 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results after market hours on Tuesday, 28 May 2013.
Sun Pharmaceutical Industries said that the board of directors of the company at its meeting held on Tuesday, 28 May 2013, has recommended a liberal 1:1 bonus issue.
Sun Pharmaceutical Industries' consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 32% to Rs 1260 crore in Q4 March 2013 over Q4 March 2012, while sustaining EBITDA margin at 41%.
Sun Pharmaceutical Industries said that branded generic sales in India were at Rs 780 crore. Adjusted for the extra sales recorded in the Q4 March 2012, as well as the change in treatment of expected sales returns and treatment of discounts, the underlying sales growth of the domestic formulation business is 16%.
US finished dosage sales grew by 63% to $330 million in Q4 March 2013 over Q4 March 2012. International formulation sales grew by 13% to $73 million in Q4 March 2013 over Q4 March 2012.
Consolidated research and development (R&D) expense for Q4 March 2013 was Rs 203 crore, at 6.6% of sales. For the year ended March 2013 (FY 2013), R&D spend was Rs 676 crore, at 6% of sales.
Dilip Shanghvi, managing director of the company said, "I am very pleased to announce that, our sales for FY 2013 have crossed the $2 billion mark. While it took us almost 27 years to record $1 billion in revenues, the next billion was added in just 3 years."
He further said, "All our businesses continue to perform in-line with our expectations. We continue to focus on building a differentiated and specialty product portfolio and enhancing our international presence. Overall, we shall strive to remain focused on execution and building a business with consistent performance."
Meanwhile, Sun Pharma has declined to comment on market speculation that the company may acquire Germany-based Stada.
Bhel fell 0.17% to Rs 202.90 on profit booking after the stock jumped 5.39% in the preceding two trading sessions to Rs 203.25 on 28 May 2013, from a recent low of Rs 192.85 on 24 May 2013.
NHPC fell 4% after net profit fell 27.28% to Rs 583.26 crore on 25.1% decline in net sales to Rs 1037.71 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Tuesday, 28 May 2013.
Wockhardt was locked at 10% lower circuit at Rs 1121.80. The stock will be included in MSCI India index from close of Thursday, 31 May 2013.
The pharmaceutical company on 24 May 2013 said that the company has received an 'import alert' from the United States US Food and Drug Administration (USFDA) on one of its manufacturing units located in Waluj near Aurangabad. The impact of the import alert on the revenues is estimated to be in the range of $100m on an annualised basis, Wockhardt said at that time. The company is taking all steps to address the concerns raised by USFDA and shall put all efforts to resolve the issue at the earliest, it had said.
Aditya Birla Nuvo slipped 0.89%. The company during market hours today, 29 May 2013 reported 17% rise in consolidated net profit to Rs 199 crore on 17% rise in revenue to Rs 6996 crore in Q4 March 2013 over Q4 March 2012.
Sun TV Network gained 5.01% to Rs 431.70. The company's promoter Kalanithi Maran is selling 78.81 lakh shares representing 2% of the equity share capital of the company via Offer for Sale (OFS) through the the separate window provided by the stock exchanges for this purpose. The OFS will take place today, 29 May 2013. The floor price for the OFS has been fixed at Rs 403 per share.
The OFS got bids for 68.78 lakh shares till 14:15 IST, compared with 78.81 lakh shares on offer. The OFS was subscribed 87.28% at an indicative bid price of Rs 408.36 per share.
Container Corporation of India (up 5.84%), Piramal Enterprises (up 4.73%), IPCA Laboratories (up 4%), Motherson Sumi Systems (up 3.44%) and MphasiS (up 3.55%), were the top gainers in BSE's 'A' group.
The Q4 March 2013 earnings season gets over this week. DLF, M&M and Tata Power unveil Q4 results tomorrow, 30 May 2013.
On the macro front, the government will announce Q4 March 2013 gross domestic product (GDP) data on Friday, 31 May 2013. India's GDP grew 4.5% in Q3 December 2012, sharply slower than the 5.3% expansion reported for Q2 September 2012.
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 stocks retreated on Wednesday as encouraging US economic data overnight sparked worries that it could trigger the US Federal Reserve to taper its aggressive bond-purchasing program. Key benchmark indices in France, Germany and UK dropped by 0.83% to 1.15%.
Asian shares were mostly higher on Wednesday as US stocks rallied to record highs overnight. Key benchmark indices in Japan, Taiwan, Indonesia, South Korea, and China rose by 0.1% to 0.91%. Key benchmark indices in Singapore and Hong Kong fell by 0.93% to 1.61%.
The International Monetary Fund (IMF) cut its growth forecast for China this year to 7.75% from 8%, citing a weak world economy and exports, adding to concerns that the world's second-largest economy is losing momentum.
Trading in US index futures indicated that the Dow could fall 46 points at the opening bell on Wednesday, 29 May 2013. US stocks climbed on Tuesday, bouncing back from last week's losses after data showed consumer confidence rising in May and the real-estate market picking up speed.
Last week, Fed Chairman Ben Bernanke said the central bank could start to reduce its stimulus program in coming months if data continue to improve, stoking fears of market turmoil.
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