Key benchmark indices edged higher as slowing wholesale price inflation raised rate cut expectations. The barometer index, the S&P BSE Sensex, was provisionally up 92.07 points or 0.5%, off 89.77 points from day's high and up 190.41 points from the day's high. Index heavyweight Reliance Industries (RIL) advanced ahead of the company's Q4 results tomorrow, 16 April 2013. Another index heavyweight and cigarette major ITC also moved higher. The market breadth, indicating the overall health of the market, was positive.
Bank stocks edged higher as slowing wholesale price inflation raised rate cut expectations. PSU OMCs rose as crude oil prices declined. Infosys gained in volatile trade on bargain hunting after Friday's slump triggered by the company issuing tepid revenue guidance at the time of announcing Q4 March 2013 and the year ended 31 March 2013 results. Tata Steel hit 52-week low. Shares of pharma major Lupin reversed direction after scaling a record high. Shares of another pharma firm Wockhardt extended Friday's steep slide in volatile trade.
Key benchmark indices cut losses after a weak opening triggered by lower Asian stocks. The Sensex hit its lowest level in more than 7 months. Key benchmark indices hovered in red in morning trade. Key benchmark indices turned positive in mid-morning trade. Key benchmark indices advanced to intraday high in early afternoon trade after data released by the government today, 15 April 2013, showed that inflation based on the wholesale price index slowed in March 2013. The market surged to hit fresh intraday high in afternoon trade. A bout of volatility was witnessed as key benchmark indices trimmed gains after hitting fresh intraday high in mid-afternoon trade. The Sensex further trimmed gains in late 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.
As per provisional closing, the S&P BSE Sensex was up 92.07 points or 0.5% to 18,334.63. The index jumped 181.84 points at the day's high of 18,424.40 in mid-afternoon trade, its highest level since 11 April 2013. The index fell 98.34 points at the day's low of 18,144.22 at the onset of the trading session, its lowest level since 13 September 2012.
The CNX Nifty was up 28.95 points or 0.52% to 5,557.50. The index hit a high of 5,592.85 in intraday trade, its highest level since 11 April 2013. The index hit a low of 5,500.30 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,292 shares advanced and 1,094 shares declined. A total of 130 shares were unchanged.
The total turnover on BSE amounted to Rs 1923 crore, lower than Rs 1937.63 crore on Friday, 12 April 2013.
Among the 30-share Sensex pack, 16 stocks declined while rest of them advanced.
Index heavyweight Reliance Industries (RIL) advanced 2.44% at Rs 794.25. The scrip hit high of Rs 799 and a low of Rs 773.25. RIL announces Q4 results tomorrow, 16 April 2013.
ONGC jumped 3.44% and was the top gainer from the Sensex pack.
PSU OMCs rose as crude oil prices declined. BPCL (up 5.25%), HPCL (up 5.08%) and Indian Oil Corporation (up 4.3%) edged higher. US crude oil futures for May 2013 delivery were down $2.62 a barrel at $88.85 a barrel in the electronic trading today, 15 April 2013. The contract had tumbled $2.22 a barrel or 2.37% to settle at $91.29 a barrel on the New York Mercantile Exchange on Friday, 12 April 2013.
Lower crude oil prices will reduce under-recovery of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at government controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers.
Index heavyweight and cigarette major ITC rose 1.67% to Rs 298. The scrip hit high of Rs 301 and a low of Rs 289.40 so far during the day. 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.
Bank stocks edged higher as slowing wholesale price inflation raised rate cut expectations.
State-run State Bank of India (SBI) rose 3.07%. SBI on 20 March 2013 said that the Executive Committee of the Central Board of the Bank, in its Meeting held on 20 March 2013, approved the issuance and allotment of 1.29 crore equity shares at Rs 2,312.78 per share to the Government of India (GoI) by way of preferential allotment.
Among other PSU bank stocks, Canara Bank (up 5.06%), Union Bank of India (up 3.07%), Bank of India (up 3.47%), Bank of Baroda (up 3.15%) and Punjab National Bank (up 2.71%) gained.
ICICI Bank advanced 0.48%. ICICI Bank announces Q4 results on 26 April 2013.
HDFC Bank rose 0.16%. HDFC Bank announces Q4 results on 23 April 2013.
Kotak Mahindra Bank (KMBL) rose 0.67%. KMBL said on Friday, 12 April 2013, that the board of directors of the bank at its meeting held on 11 April 2013 has given its consent for issue of 2 crore equity shares of Rs 5 each amounting to approximately 2.6% shareholding in the bank (as of 31 March 2013) on a post-issue basis to Heliconia, an affiliate of Government of Singapore Investment Corporation Pte (GIC), at a price of Rs 648 per share aggregating to Rs 1296 crore on preferential basis. This transaction augments the Tier I capital of the bank for pursuit of growth opportunities, KMBL said in a statement. It will also be a step towards dilution of promoter stake in the bank, it said.
IndusInd Bank rose 0.51% to Rs 401.90. Shares of the private sector bank rose on high volume of 14.20 lakh shares after a bulk deal of 13.40 lakh shares was executed on the counter at Rs 403 per share at 09:32 IST on BSE today, 15 April 2013.
Infosys gained in volatile trade on bargain hunting after Friday's slump triggered by the company issuing tepid revenue guidance at the time of announcing Q4 March 2013 and the year ended 31 March 2013 results. The stock was up 0.99% to Rs 2,318.10. The scrip hit high of Rs 2,354.95 and low of Rs 2,206. The scrip had tumbled 21.33% on Friday, 12 April 2013. Infosys' consolidated net profit as per International Financial Reporting Standards (IFRS) rose 1.1% to Rs 2394 crore on 0.3% growth in revenue to Rs 10454 crore in Q4 March 2013 over Q3 December 2012. Net profit rose 13.3% to Rs 9421 crore on 19.6% growth in revenue to Rs 40352 crore in the year ended March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The company announced the results before market hours on Friday, 12 April 2013.
The company has forecast a tepid 6% to 10% growth in revenue in both rupee terms and dollar terms for the year ending 31 March 2014 (FY 2014) as the company says that global economic uncertainties remain challenging for the IT industry. The revenue growth outlook is lower than industry body Nasscom's projection of 12% to 14% growth in IT exports in the current fiscal year. Infosys has not given full year earnings guidance this time. Infosys had earlier stopped offering quarterly guidance in July 2012.
Tata Steel fell 1.82% to Rs 293.90 after hitting a 52-week low of Rs 293.85 in intraday trade today, 15 April 2013.
Lupin slipped 0.99% to Rs 653.10, with the stock reversing gain after scaling a record high of Rs 669.50 in intraday trade today, 15 April 2013. 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.
Shares of pharma firm Wockhardt lost 2.78% in volatile trade, with the stock extending Friday's near 10% slide. The stock fell on reports that the US drug regulator has sought clarifications on the company's injectables facility in Aurangabad.
Inflation based on the monthly wholesale price index (WPI) eased the lowest level in 40 months at 5.96% in March 2013, sharply lower than 6.84% in February 2013, data released by the government today, 15 April 2013, showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the latest data showed. The government revised upwards WPI inflation for January 2013 to 7.31% from 6.62% reported earlier. Build up inflation rate in the financial year so far was 5.96% compared to a build up rate of 7.69% in the corresponding period of the previous year, the Ministry of Commerce & Industry said in a statement.
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.
The Reserve Bank of India (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.
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 and Ambuja Cements announce 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.
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.
European stock markets edged lower on Monday, with miners leading the drive south after weaker-than-expected Chinese growth figures and slumping metals prices. Key benchmark indices in France, Germany and UK fell by 0.67% to 0.97%.
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 0.2% to 1.55%.
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, the weakest in more than a year and slowing from a 9.9% average rise for the January-February period, which China's statistics bureau reports in one figure due to seasonal distortions from the Lunar New Year holiday. March retail sales rose 12.6%, improving from 12.3% year-on-year growth in the January-February 2013 period, but far less than the 15.2% gain in December 2012.
Trading in US index futures indicated that the Dow could fall 39 points at the opening bell on Monday, 15 April 2013. 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. US retail sales slid 0.4% in March 2013, the biggest decline since June 2012, Commerce Department figures showed on Friday, 12 April 2013.
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