Key benchmark indices edged higher in early trade. The S&P BSE Sensex was up 97.75 points or 0.43%, up 89.84 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Index heavyweight Reliance Industries gained after declaring Q4 result on Friday, 18 April 2014. Wipro lost after the company gave subdued revenue forecast for Q1 June 2014 at the time of announcing result after market hours on Thursday, 17 April 2014. Tata Consultancy Services (TCS) rose after the company before market hours today, 21 April 2014 announced that it has signed definitive agreements with Mitsubishi Corporation (MC) to merge ICS Japan, ITF and NTSC.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month April 2014 series to May 2014 series. The near month April 2014 F&O contracts expire on Wednesday, 23 April 2014. The stock market remains closed on Thursday, 24 April 2014, on account of Parliamentary elections in Mumbai constituency.
Foreign institutional investors (FIIs) bought shares worth a net Rs 433.40 crore on Thursday, 17 April 2014, as per provisional data from the stock exchanges. The stock market remained closed on Friday, 18 April 2014, on account of Good Friday.
At 9:25 IST, the S&P BSE Sensex was up 97.75 points or 0.43% to 22,726.59. The index gained 98.02 points at the day's high of 22,726.86 in early trade. The index rose 7.91 points at the day's low of 22,636.75 in early trade.
The CNX Nifty was up 23.15 points or 0.34% to 6,802.55. The index hit a high of 6,805.50 in intraday trade. The index hit a low of 6,787.90 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 881 shares gained and 277 shares fell. A total of 50 shares were unchanged.
The BSE Mid-Cap index rose 49.21 points or 0.67% to 7,388.50 and the BSE Small-Cap index rose 73.43 points or 0.98% to 7,597.44. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 184 crore by 09:30 IST.
Among the 30-share Sensex pack, 27 stocks gained and only three of them declined.
Reliance Industries (RIL) rose 0.53% to Rs 963.80. RIL on Friday, 18 April 2014, said its net profit rose 0.8% to Rs 5631 crore on 12.9% growth in turnover to Rs 97807 crore in Q4 March 2014 over Q4 March 2013. RIL's non-operational income dropped 9.22% to Rs 2036 crore in Q4 March 2014 over Q4 March 2013.
RIL's net profit rose 2.2% to Rs 5631 crore on 8.1% decline in turnover to Rs 97807 crore in Q4 March 2014 over Q3 December 2013. RIL's non-operational income dropped 11.67% to Rs 2036 crore in Q4 March 2014 over Q3 December 2013.
RIL's gross refining margin (GRM) dropped to $9.3 a barrel in Q4 March 2014, from $10.1 a barrel in Q4 March 2013. The GRM, however, rose on sequential basis from $7.6 a barrel in Q3 December 2013.
RIL's net profit rose 4.7% to a record Rs 21984 crore on 8.1% growth in turnover to a record Rs 401302 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013). Non-operational income rose 11.72% to Rs 8936 crore in FY 2014 over FY 2013. RIL said that the increase in non-operational income in FY 2014 was mainly on account of higher liquid investments.
The company's outstanding debt as on 31 March 2014 was Rs 89968 crore, higher than Rs 72427 crore as on 31 March 2013. RIL had cash and cash equivalents of Rs 88190 crore as on 31 March 2014. These were in bank deposits, mutual funds, CDs and Government securities/bonds.
The net addition to fixed assets for the year ended 31 March 2014 was Rs 35210 crore including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej, Silvassa and Hazira, RIL said in a statement.
RIL's consolidated net profit rose 7.7% to Rs 22493 crore on 9.3% growth in revenue to Rs 446339 crore in FY 2014 over FY 2013.
Commenting on the company's financial performance, Mukesh D. Ambani, Chairman and Managing Director, RIL said: "FY 2013-14 was a satisfying year for RIL. Refining business delivered the highest ever profits with a sharp recovery in GRMs towards the end of the year. Petrochemical earnings grew sharply with margin expansion across polymers and downstream polyester products. While we continue to face technical challenges in growing domestic upstream production, the US shale gas business grew significantly during the year and has become a material contributor to our earnings. Retail business has turned around and is now India's largest retail chain. We have also accelerated efforts to roll-out our state-of-the-art 4G services across the country which will add an exciting new dimension to our consumer facing service offerings".
In a separate announcement on Sunday, 20 April 2014 RIL said that its synthetic rubber business group, Relflex Elastomers, inaugurated a elastomers customer support center (ECSC) at its petrochemicals complex in Vadodara. This initiative is in line with RIL's endeavor to become not only a significant synthetic rubber supplier but also to provide intangible technical support to its customers and play a catalytic role in helping them grow their business, increase value additions and reduce import dependence, RIL said in a statement.
Relflex ECSC would serve as a springboard for mutual collaborative efforts, value additions and joint product development between Relflex Elastomers and its customers. The facility will service tyre as well non tyre industry. Reliance Elastomer supplies polybutadiene rubber (PBR) to the tyre industry and enjoys excellent relationship with Indian tyre manufacturers across all segments, the company said.
Wipro lost 4.36% to Rs 560 after the company gave subdued revenue forecast for Q1 June 2014 at the time of announcing result after market hours on Thursday, 17 April 2014.
Wipro's consolidated net profit from continuing operations surged 41% to Rs 2230 crore on 22% growth in revenue from continuing operations to Rs 11700 crore in Q4 March 2014 over Q4 March 2013. The results are as per International Financial Reporting Standards (IFRS). The result was announced after market hours on Thursday, 17 April 2014.
Non-GAAP adjusted net profit from continuing operations rose 42% to Rs 2230 crore in Q4 March 2014 over Q4 March 2013.
IT Services revenue in rupee terms rose 24% to Rs 10620 crore in Q4 March 2014 over Q4 March 2013. IT Services earnings before interest and tax (EBIT) rose 51% to Rs 2610 crore in Q4 March 2014 over Q4 March 2013. IT Services operating margins improved 150 basis points (bps) sequentially to 24.5% in Q4 March 2014.
Wipro's consolidated net profit from continuing operations rose 27% to Rs 7800 crore on 16% growth in revenue from continuing operations to Rs 43760 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Non-GAAP adjusted net profit from continuing operations rose 28% to Rs 7800 crore in FY 2014 over FY 2013.
IT Services revenue in rupee terms rose 18% to Rs 39950 crore in FY 2014 over FY 2013. IT Services EBIT rose 29% to Rs 9030 crore in FY 2014 over FY 2013. IT Services operating margins expanded 195 bps to 22.6% in FY 2014.
Commenting on the company's financial performance, Azim Premji, Chairman of Wipro said, The steady improvement in global economy, coupled with the exciting pace of technological advancements, presents us with opportunities to create innovative solutions to help our customers differentiate, compete and succeed in their respective markets.
T K Kurien, Executive Director & Chief Executive Officer of Wipro said, Our focus on process simplification, automation and platform-based delivery continues to deliver results and we are seeing the benefits through improved productivity, reduced timelines in execution and greater business agility. It is also gratifying to see that this focus has enabled improved win ratios and has also enhanced customer satisfaction.
Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro said, We continue to systematically work on improving our operational efficiencies resulting in expansion of full year IT Services operating margins by 195 basis points.
Wipro has given a forecast of between 0.3% decline to a growth of 2.02% in revenue from IT Services business at between $1.715 billion to $1.755 billion in Q1 June 2014 over Q4 March 2014.
Wipro's board of directors at its meeting held on Thursday, 17 April 2014, declared final dividend of Rs 5 per share for FY 2014.
Tata Consultancy Services (TCS) rose 0.88%. TCS before market hours today, 21 April 2014 announced that it has signed definitive agreements with Mitsubishi Corporation (MC), one of Japan's largest integrated business enterprises to merge ICS Japan, ITF and NTSC. TCS will hold 51% in the merged entity, MC to hold 49%. The merged entities to be operational from July 2014.
Commenting on the transaction N Chandrasekaran, CEO and Managing Director, TCS, said, "This strategic transaction signifies our serious commitment to the Japan market. TCS will now have the scale, strong local presence and our full range of global capabilities to serve the Japanese corporations effectively and accelerate our growth in Japan market. He added: "We deeply value the partnership with Mitsubishi Corporation and look forward to leveraging our mutual strengths in the Japan market."
The transaction will create a new IT Services company of significant scale in the Japanese market. ITF brings its long standing relationships with Japanese corporations, talented workforce and competencies in industries like retail, distribution and trading. This will complement TCS' deep domain knowledge, technology expertise and strong execution track record. TCS' Global Network Delivery Model (GNDM) capabilities will also enable the Japanese corporations' globalization ambitions. The company will provide tremendous additional value to clients in Japan; while employees will secure the advantages of building their careers in a global organization, TCS said in a statement.
Infosys rose 0.36%. Infosys announced that on 15 April 2014, its board appointed Mr. Parvatheesam Kanchinadam, an executive officer of the company, as the Chief Compliance Officer. In this role, Mr. Kanchinadam also acts as the ombudsman to the whistleblower policy. This is following the resignation of Mr. Nithyanandan Radhakrishnan, as the Chief Compliance Officer.
Bajaj Auto rose 0.33%. Bajaj Auto said it received a notice dated 14 April 2014 from Vishwa Kalyan Kamgar Sanghatana, the workmen's union of its Chakan plant, stating that they propose to call for a stoppage of work by all the workmen employed in the plant from the morning shift of 28 April 2014 as per notice. The Notice mentions that the stoppage is not a strike.
Oil India (OIL) rose 0.84%. OIL on Friday, 18 April 2014 said that OIL has entered into an agreement with PetroNeft Resources Plc, a Company Registered in Ireland, in respect of 50% non-operating interest in License 61, Tomsk Oblast, Russian Federation with a total investment of up to $85 million.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Asian markets were trading mixed on Monday, 21 April 2014. Key benchmark indices in Singapore, Japan and Indonesia rose by 0.1% to 0.63%. Key benchmark indices in China, South Korea and Taiwan fell by 0.19% to 0.45%. Markets in Hong Kong, Australia and New Zealand are closed today, 21 April 2014 for Easter holiday.
US markets remained closed on Friday, 18 April 2014 in observance of Good Friday.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
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