Key benchmark indices extended gains to hit fresh intraday high in mid-morning trade. Rally was triggered on bargain hunting after domestic bourses had suffered declines in prior seven trading days. Firm Asian stocks also boosted sentiment. The S&P BSE Sensex was up 365.15 points or 1.81%. The market breadth, indicating the overall health of the market, was strong.
Index heavyweight and cigarette major ITC rose. Reliance Industries also gained. Tata Steel surged after the company reported strong Q2 result. Coal India lost on weak Q2 result. Cipla also slipped on weak Q2 result. ONGC gained after declaring Q2 result
At 11:16 IST, the S&P BSE Sensex was up 365.15 points or 1.81% to 20,559.55. The index hit day's high of 20568.99 and day's low of 20348.27 so far during the day.
The CNX Nifty was up 108.50 points or 1.81% to 6,098.10. The index hit a high of 6,101.65 in intraday trade. The index hit a low of 6,036.65 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,195 shares gained and 437 shares fell. A total of 57 shares were unchanged.
The total turnover on BSE amounted to Rs 663 crore by 11:20 IST.
Among the 30-share Sensex pack, 27 stocks gained and rest of them declined.
Index heavyweight and cigarette major ITC rose 0.75%.
Reliance Industries gained 1.92%.
ONGC gained 2.24%. The company's net profit rose 2.83% to Rs 6063.86 crore on 9.69% growth in total income to Rs 23897.64 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
ONGC's gross subsidy discount rose 11.9% to Rs 13796 crore in Q2 September 2013 over Q2 September 2012. The subsidy discount impacted the profit before tax (PBT) by Rs 11545 crore and profit after tax (PAT) by Rs 7621 crore. ONGC shares the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PSD kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.
Tata Steel surged 3.94% after the company reported strong Q2 result. The company posted a consolidated net profit of Rs 916.77 crore in Q2 September 2013 as against net loss of Rs 363.93 crore in Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
Tata Steel's consolidated revenue rose 7.35% to Rs 36645 crore in Q2 September 2013 over Q2 September 2012. EBITDA (earnings before interest, taxation, depreciation and amortization) jumped 54.26% to Rs 3784 crore in Q2 September 2013 over Q2 September 2012.
Tata Steel attributed the turnaround in Q2 September 2013 to steady ramp-up of the Indian operations and improved performance at the European and South East Asian operations.
Mr T V Narendran, Managing Director of Tata Steel India and South East Asia, said: Overall market conditions weakened during the last quarter, exacerbated by heavy monsoons and the credit slowdown affecting our customers. Despite these difficult conditions, we were able to increase deliveries by 18% over last year and increase market share on the back of strong customer relationships, our superior product portfolio and the strength of our distribution network. The rolling facilities of the brownfield expansion at Jamshedpur ramped up to full capacity towards the end of the second quarter. Our greenfield project in Odisha continues to make good progress though there have been some weather related disruptions due to the Phailin cyclone and the subsequent floods. The South East Asian operations have stabilised and should deliver strong performance over coming quarters.
Dr Karl-Ulrich Kler, MD & CEO of Tata Steel in Europe said: The improvement in production continued into the second quarter as our operations stabilised following the restart of the Port Talbot blast furnace. This fed through to a stronger financial performance in the first half, despite margins being squeezed in the September quarter. The investments in our asset base are proving their worth in what continues to be a challenging market. We are focused on maintaining our momentum and will continue to strengthen partnerships with customers by offering them more premium products and services.
Mr Koushik Chatterjee, Group Executive Director (Finance and Corporate) said: The Tata Steel Group continued to maintain its earnings momentum in spite of seasonal weakness in Europe. The year-on-year improvement is evident with a 300 basis points increase in the Group EBIDTA compared to the corresponding quarter of the previous year. The Group cash flows from operations for the quarter were also very strong as we continued to focus on internal initiatives including working capital and spend management. Capital expenditure on the greenfield capacity in Odisha remains the key priority for the Group's capital deployment and we have spent around Rs 4500 crore in the first half on this project. We continue to maintain adequate liquidity levels backed by project financing for the planned capex and track the currency movements to calibrate our hedging policy accordingly.
Tata Steel's cash and cash equivalents as on 30 September 2013 stood at Rs 12779 crore and net debt was Rs 64334 crore. Total liquidity including undrawn credit lines was Rs 17500 crore.
Coal India lost 2.75% on weak Q2 result. The company's consolidated net profit declined 0.83% to Rs 3052.36 crore on 5.57% growth in total income to Rs 17594.28 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
Cipla shed 1.06% on weak Q2 result. The company's consolidated profit after tax (PAT) declined 26.6% to Rs 358 crore on 14% growth in revenue to Rs 2463 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
Cipla Medpro South Africa (Medpro), a pharmaceutical company, incorporated in South Africa became a wholly owned subsidiary of Cipla on 15 July 2013. Accordingly, the Q2 September 2013 result includes the relevant results of Medpro and its subsidiaries from the date Medpro became subsidiary of the company and therefore the corresponding figures for the previous period are not comparable, Cipla said.
The Q2 September 2012 revenue includes one-time profit share revenues from Escitalopram through the company's US partner. EBITDA (earnings before interest, taxation, depreciation and amortization) declined 19.6% to Rs 564 crore in Q2 September 2013 over Q2 September 2012.
Cipla's domestic revenue rose 11.6% to Rs 1040 crore in Q2 September 2013 over Q2 September 2012. The growth in domestic revenues was largely on account of growth in anti-asthma, urology and COPD therapy segments, Cipla said in a statement.
Cipla's revenue from exports of formulations grew 14.9% to Rs 1219 crore in Q2 September 2013 over Q2 September 2012. Exports of APIs grew 17.7% to Rs 204 crore in Q2 September 2013 over Q2 September 2012. The growth in export revenue was primarily due to growth in anti-retroviral, anti-malaria and anti-allergic segments, Cipla said in a statement.
Rural Electrification Corporation (REC) rose 2.53%. The company's net profit rose 16.43% to Rs 1110.67 crore on 27.47% growth in total income to Rs 4224.25 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Wednesday, 13 November 2013.
Asian stocks climbed the most in a month on Thursday while metals gained after Federal Reserve chairman nominee Janet Yellen signaled stimulus will be maintained until the U.S. economy improves. Key benchmark indices China, Hong Kong, Indonesia, Japan, Taiwan, Singapore, and South Korea rose by 0.43% to 2.55%.
Trading in US index futures indicated that the Dow could rise 27 points at the opening bell on Thursday, 14 November 2013. US stocks rose on Wednesday, sending benchmark indexes to records, as Macy's Inc. led a rally among retailers and investors speculated the Federal Reserve's Janet Yellen will continue the central bank's stimulus policy as chairman.
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