Indian stocks rose for the third day in a row today, 16 May 2013, as losses in index heavyweight ITC were offset by gains in another index heavyweight Reliance Industries (RIL). A small increase pushed the barometer index, the S&P BSE Sensex, to hit its highest closing level in over 28 months. The 50-unit CNX Nifty attained its highest closing level in over 30 months. The Sensex gained 34.37 points or 0.17%, off close to 80 points from the day's high and up about 85 points from the day's low. The market breadth, indicating the overall health of the market, was negative.
Key benchmark indices rose for the third straight day today, 16 May 2013. From a recent low of 19,691.67, the Sensex has gained 555.66 points or 2.82% in three trading sessions. The Sensex has gained 743.15 points or 3.81% in this month so far (till 16 May 2013). The Sensex has gained 820.62 points or 4.22% in calendar 2013 so far (till 16 May 2013). From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 4,498.35 points or 28.56%.
Coming back to today's trade, index heavyweight and cigarette major ITC dropped ahead of its Q4 results tomorrow, 17 May 2013. Auto stocks fell. Bajaj Auto declined on reporting weak Q4 results. Pharma stocks rose on renewed buying, with Lupin hitting record high and Glenmark Pharmaceuticals hitting 52-week high. Reliance Capital turned volatile after reporting weak Q4 results.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1700.90 crore from the secondary equity markets on Wednesday, 15 May 2013, as per data from Securities & Exchange Board of India.
The S&P BSE Sensex advanced 34.37 points or 0.17% to 20,247.33, its highest closing level since 5 January 2011. The index rose 113.52 points at the day's high of 20,326.48 in morning trade. The index fell 50.84 points at the day's low of 20,162.12 in opening trade.
The CNX Nifty advanced 23.15 points or 0.38% to 6,169.90, its highest closing level since 11 November 2010. The index hit a high of 6,187.30 in intraday trade. The index hit a low of 6,128.25 in intraday trade.
The BSE Mid-Cap index rose 0.42% and the BSE Small-Cap index gained 0.23%. Both these indices outperformed the Sensex.
The BSE Realty index (up 1.81%), BSE Oil & Gas index (up 1.64%), BSE HealthCare index (up 1.53%), BSE Bankex (up 1.11%), BSE Capital Goods index (up 0.84%), BSE Metal index (up 0.61%), BSE Power index (up 0.32%) and BSE PSU index (up 0.27%), outperformed the Sensex.
The BSE FMCG index (down 1.06%), BSE IT index (down 0.99%), BSE Teck index (down 0.87%), BSE Auto index (down 0.6%) and BSE Consumer Durables index (down 0.49%), underperformed the Sensex.
The total turnover on BSE amounted to Rs 2379 crore, higher than Rs 2277.27 crore on Wednesday, 14 May 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,032 shares declined and 952 shares advanced. A total of 96 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and the rest of them rose.
Index heavyweight Reliance Industries (RIL) gained 2.61% to Rs 840.15. The stock hit a high of Rs 843.34 and low of Rs 816.
Index heavyweight and cigarette major ITC fell 1.71% to Rs 336.80. The stock hit a high of Rs 343.50 and low of Rs 332.90. The company announces its Q4 results tomorrow, 17 May 2013. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013.
The Centre 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.
Realty stocks rose for the second straight day on 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. HDIL, Sobha Developers, Unitech and D B Realty rose by 0.21% to 3.89%.
DLF rose 0.5% to Rs 242.85. The company said after market hours on Wednesday, 15 May 2013, that the equity issuance committee of the board of directors of the company on 15 May 2013 finalised an issue price of Rs 230 per share for the qualified institutional programme (IPP), which was held through the stock exchanges mechanism on 14 May 2013. The company has raised Rs 1863.42 crore from the issue of 8.10 crore shares to institutions.
Adani Ports and Special Economic Zone jumped 6.34% to Rs 161.90 after reporting strong Q4 results. The stock hit 52-week high of Rs 167 in intraday trade today, 16 May 2013. The company's consolidated net profit jumped 196.63% to Rs 710.31 crore on 53.7% growth in total income to Rs 1081.69 crore in Q4 March 2013 over Q4 March 2012. The Q4 result was announced after market hours on Wednesday, 15 May 2013.
Bajaj Finserv declined 4.17% after reporting muted growth in net profit in Q4 March 2013. The company's consolidated net profit rose 3.64% to Rs 912.86 crore on 15.17% growth in total income from operations (net) to Rs 2017.29 crore in Q4 March 2013 over Q4 March 2012. Bajaj Finserv's consolidated gross revenue rose 2.6% to Rs 5116.82 crore in Q4 March 2013 over Q4 March 2012. The Q4 result was announced after market hours on Wednesday, 15 May 2013.
Bajaj Finserv's consolidated net profit rose 17.63% to Rs 1573.64 crore on 29.96% growth in total income from operations (net) to Rs 5072.43 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). Gross revenue rose 9% to Rs 15814 crore in FY 2013 over FY 2012. Bajaj Finserv said that the company has performed well in FY 2013 in a challenging economic environment.
Bajaj Finserv's board of directors at a meeting held on Wednesday, 15 May 2013, recommended dividend of Rs 1.50 per share for FY 2013.
Bank stocks rose for the second straight day on 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. A rate cut would boost credit offtake.
ICICI Bank rose 1.15%.
Axis Bank rose 1.41% to Rs 1,530.10. The stock hit 52-week high of Rs 1,539 in intraday trade today, 16 May 2013.
Kotak Mahindra Bank rose 1.25% to Rs 775.25 after the bank said during market hours today, 16 May 2013, that at the meeting of the Preferential Issue and Allotment Committee of the bank held today, 16 May 2013, the Committee has allotted 2 crore equity shares on preferential basis to Heliconia Pte, an affiliate of Government of Singapore Investment Corporation, on the terms approved by the shareholders of the bank at the Extraordinary General Meeting of the bank held on 9 May 2013. The stock hit record high of Rs 779 in intraday trade today, 16 May 2013.
HDFC Bank gained 1.11% to Rs 722.70. The stock hit record high of Rs 724 in intraday trade today, 16 May 2013.
Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), rose 1.27%.
Other PSU bank stocks declined. Bank of Baroda, Bank of India, Union Bank of India, and Punjab National Bank shed by 0.52% to 1.68%.
HDFC fell 0.2% to Rs 907.95. The stock reversed direction after hitting record high of Rs 916.65 in intraday trade today, 16 May 2013.
United Spirits rose 0.44%. The company's net profit jumped 459.44% to Rs 56 crore on 14.15% growth in total income to Rs 2141.31 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Wednesday, 15 May 2013. The company's net profit fell 6.41% to Rs 320.79 crore on 12.19% growth in total income to Rs 8709.91 crore in the year ended March 2013 over the year ended March 2012.
On a consolidated basis, United Spirits' posted a net loss Rs 101.24 crore for the year ended 31 March 2013 as compared to net profit of Rs 187.92 crore for the year ended 31 March 2012. Total income dropped 45.11% to Rs 10625.25 crore in the year ended 31 March 2013 over the year ended 31 March 2012.
L&T rose 0.85% after the company announced during market hours today, 16 May 2013 that its construction division won new orders valued at Rs 2542 crore across various business segments in April and May 2013.
Cairn India gained 0.44%. The company during market hours today, 16 May 2013, announced the results of its annual review of its reserves and resources. The comprehensive review of reserve and resources potential in all the blocks where company has interests was estimated at 1,286 million barrels of oil equivalent as on 31 March 2013. DeGolyer and MacNaughton (D&M), the leading independent reserves auditors, have estimated it to be a tad higher at 1,296 mmboe.
IT stocks fell on weak economic data in the US, the biggest outsourcing market for the Indian IT firms. Tech Mahindra and Tata Consultancy Services (TCS) fell by 1.02% to 1.33%.
HCL Technologies dropped 1.1%. The company announced after market hours on Wednesday, 15 May 2013, that it has been selected by Husqvarna Group, a global leader in products and solutions for garden, park and forest care as well as construction, as a global strategic partner. HCL will provide comprehensive business transformation services to Husqvarna. The engagement covers Europe, Asia Pacific and US operations. As per the engagement, HCL will impact Husqvarna Group's key business operations bringing in enhanced efficiencies in their key business process areas. HCL will be using its proprietary MASCoT framework, a managed service model to provide application support and maintenance, application life cycle management, application operation through 24x7 call support and services to support Husqvarna Group's business. The agreement scope also includes legacy & custom applications and ERP systems covering key business processes at Husqvarna including future business transformation projects and services.
Infosys declined 1.19%. The company after trading hours on Wednesday, 15 May 2013, said that Turkland Bank (T-Bank), one of Turkey's leading private banks, has deployed Infosys' Finacle core banking, CRM and treasury solutions. This deployment empowers T-Bank to meet the needs of retail and corporate customer segments with faster product rollout and improved customer service, Infosys said.
Wipro rose 0.33%. The company on 9 May 2013 said that the Securities & Exchange Board of India (Sebi) has approved its proposal to meet the minimum public shareholding requirement through a transfer of equity shares by the promoter group to an 'Irrevocable Independent Trust' with trustees either from public sector banks or public financial institutions for advancing philanthropic activities through its beneficiaries. Wipro said that the company and the promoter group have undertaken multiple steps to fulfill the minimum public shareholding requirement including Offer for Sale (OFS). The demerger of the 'diversified' business is also expected to increase public shareholding. Any shortfall to meet public shareholding prior to due date of meeting the minimum public shareholding requirement would be transferred to the 'Irrevocable Independent Trust' and the trust shall effect a sale of such equity shares forming part of the trust funds within a period of two years from the date of such settlement, Wipro said.
Metal stocks gained on renewed buying. Sterlite Industries (India), JSW Steel, Tata Steel, Sail and Hindustan Zinc rose by 0.32% to 2.58%.
Hindalco Industries advanced 2.68%, with the stock extending Wednesday's 2.7% gains post Novelis results. Novelis, Hindalco's US subsidiary, reported net income attributable to its common shareholders of $202 million for the year ended 31 March 2013 (FY 2013). Excluding tax-effected certain items, net income for FY 2013 was $241 million, compared to a net income of $218 million for the year ended 31 March 2012 (FY 2012). Net sales declined 11% to $9.8 billion in FY 2013 over FY 2012. This decline was due to lower average aluminum prices and lower shipments when compared to last year, Novelis said.
Adjusted EBITDA for FY 2013 was $961 million, compared to $1.053 billion for FY 2012. The year-over-year decrease was mostly due to disruptions related to the ERP implementation in two North American plants in the third quarter, pricing pressures in several operating regions, lower average aluminum prices, an impact from a fire at a North American plant in the fourth quarter and higher pension expense.
Net income for Q4 March 2013, excluding tax-effected certain items, was $80 million, representing a $55 million increase when compared to the same period in the prior year, Novelis said. For the fourth quarter, sales were $2.5 billion compared to $2.6 billion reported for the fourth quarter of fiscal 2012. Adjusted EBITDA for the fourth quarter of fiscal 2013 was $240 million, representing a 3% increase when compared to the $233 million reported for the same period a year ago, due primarily to stronger demand and good cost control.
Jindal Steel and Power (JSPL) fell 1.33%.
Reliance Capital turned volatile after reporting weak Q4 results. The stock fell 0.19% to Rs 371.70. The scrip hit high of Rs 383.40 and low of Rs 370.10. The company's consolidated net profit fell 19.45% to Rs 265 crore on 14.78% fall in total income from operations (net) to Rs 1666 crore in Q4 March 2013 over Q4 March 2012. The company's consolidated net profit rose 77% to Rs 812 crore on 13.58% rise in total income from operations (net) to Rs 7470. The company announced its Q4 results during market hours today, 16 May 2013.
Pharma stocks rose on renewed buying. Cipla, Dr Reddy's Laboratories, and Ranbaxy Laboratories rose by 2.3% to 3.04%. Sun Pharmaceutical Industries fell 0.39%.
Lupin rose 3.08% to Rs 806.60. The stock hit record high of Rs 810.80 in intraday trade today, 16 May 2013.
Glenmark Pharmaceuticals gained 3.54% to Rs 578, with the stock extending Wednesday's gain. The stock hit 52-week high of Rs 580 in intraday trade today, 16 May 2013. The company said before market hours on Wednesday, 15 May 2013, that Glenmark Generics Inc., USA, a subsidiary of Glenmark Generics has been granted final abbreviated new drug approvals (ANDAs) from the USFDA for two generic drugs for the treatment of migraine headache in adults. Glenmark will commence distribution of the products immediately. According to IMS Health data, the products garnered annual sales of $176 million in the United States for the 12 months ended 31 December 2012.
ABB jumped 4.6%. The company's net profit fell 10.7% to Rs 42.56 crore on 10.2% rise in net sales to Rs 1953.36 crore in Q1 March 2013 over Q1 March 2012. The company announced its Q1 results on 8 May 2013.
Auto stocks declined. Tata Motors fell 1.69%. The company's British luxury car unit Jaguar Land Rover (JLR) reported 12% increase in sales to 28,503 units in April 2013 over April 2012. During the first four months of the year, Jaguar Land Rover sold 143,974 vehicles, up 16%.
India's largest car maker by sales, Maruti Suzuki India fell 0.71% to Rs 1726.60 on profit booking. The stock had hit record high of Rs 1756 in intraday trade on Wednesday, 15 May 2013. The stock surged recently on the back of a weakening yen. Weak yen could boost earnings of Maruti Suzuki as it imports raw materials from its Japanese parent Suzuki Motor Corporation. It also pays annual royalty on sales to the Japanese parent.
Mahindra & Mahindra (M&M) rose 0.06% to Rs 985.25. The stock hit record high of Rs 997 in intraday trade today, 16 May 2013.
Two wheeler markers declined. Bajaj Auto declined 0.77% after net profit fell 1% to Rs 766 crore on 4% rise in turnover to Rs 4990 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 1% to Rs 3044 crore on 3% growth in turnover to Rs 20793 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result was announced during trading hours today, 16 May 2013.
Bajaj Auto said that the company's performance in FY 2013 was good in a very difficult year for the automobile industry. The company's strategy to build strong brands and offer differentiated products in the front-end, and focus on cost and productivity improvements in the back-end, has yielded desired results, Bajaj Auto said.
India's largest motorcycle maker by sales, Hero MotoCorp dropped 0.5%. The company said on 1 May 2013 its total sales fell 9.5% to 4.99 lakh in April 2013 over April 2012.
As per the Q4 results calendar, ITC unveils Q4 results tomorrow, 17 May 2013. Coal India unveils standalone FY 2013 results on 20 May 2013. 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.
The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on Wednesday, 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 annual rate of inflation, based on monthly wholesale price index (WPI), eased sharply to 4.89% in April 2013, from 5.96% in March 2013, data released by the government on Tuesday, 14 May 2013, showed. Core inflation or non-food manufacturing inflation declined further to 2.74% in April 2013 from 3.41% in March 2013.
The consumer price inflation fell below the 10% mark in April 2013. The combined consumer price inflation for rural and urban India eased to 9.39% in April 2013 from 10.39% in March 2013, data released by the government on 13 May 2013, showed.
Reserve Bank of India Governor D Subbarao on Tuesday, 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 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 were mostly lower on Thursday, after rising to multi-year highs the prior day. Key benchmark indices in France and Germany were down by 0.02% to 0.14%. UK's FTSE 100 rose 0.16%.
Euro-area exports increased for a third month in March as the currency bloc's four largest economies all shipped more goods, adding to signs the region is beginning to emerge from a record-long recession. Exports rose a seasonally adjusted 2.8% from February, when they increased 0.2%, the European Union's statistics office in Luxembourg said today. Imports decreased 1% after a 2.2% drop a month earlier. The trade surplus widened more than economists estimated to 18.7 billion euros ($24 billion) from 12.7 billion euros.
Asian shares rose on Thursday after data showed Japan's economy accelerated in the first three months of the year. Key benchmark indices in China, South Korea, Singapore, Hong Kong and Taiwan rose by 0.17% to 1.21%. Key benchmark indices in Indonesia and Japan shed by 0.22% to 0.39%.
Japan's economy grew 0.9% in the first quarter, speeding up from a 0.3% pace in the previous quarter.
Foreign direct investment in China lagged behind analysts' estimates in April, highlighting concern at the growth outlook for the world's second-biggest economy after an unexpected slowdown last quarter. Investment rose 0.4% from a year earlier to $8.4 billion, the Ministry of Commerce said in a statement today in Beijing.
Trading in US index futures indicated a flat opening of US stocks on Thursday, 16 May 2013. US stocks rose on Wednesday, with the Dow Jones Industrial Average and S&P 500 hitting new all-time highs in a broad market rally as the recent upward momentum persisted. In the latest reads on the economy, activity in New York state's manufacturing sector unexpectedly contracted in May. Another report showed that US industrial production fell more than expected in April. In other data released on Wednesday, the US Producer Price Index recorded its largest drop in three years in April, falling a seasonally adjusted 0.7%.
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