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Key benchmark indices pared gains in afternoon trade as European stocks reversed initial gains. The barometer index, the S&P BSE Sensex, was up 24.05 points or 0.13%, off 100.90 points from the day's high and up 65.72 points from the day's low. Index heavyweight Reliance Industries (RIL) extended intraday losses after the company reported muted sequential growth in net profit in Q4 March 2013 after trading hours on Tuesday, 16 April 2013. Another index heavyweight and cigarette major ITC hit record high. The market breadth, indicating the overall health of the market, was positive.

FMCG stocks gained on reports of likely normal monsoon this year. Interest rate sensitive auto stocks edged higher as slowing wholesale price inflation has raised rate cut expectations. NTPC rose after bulk deal.

The market edged higher in early trade. The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit two-week highs. The market regained positive terrain after slipping into the negative terrain for a brief period in morning trade. The Sensex trimmed gains after hitting fresh intraday high in mid-morning trade. The market surged to hit fresh intraday high in early afternoon trade. Key benchmark indices pared gains in afternoon trade as European stocks reversed initial gains.

Foreign institutional investors (FIIs) bought shares worth a net Rs 591.76 crore on Tuesday, 16 April 2013, as per provisional data from the stock exchanges.

At 13:20 IST, the S&P BSE Sensex was up 24.05 points or 0.13% to 18,768.98. The index jumped 124.95 points at the day's high of 18,869.88 in early afternoon trade, its highest level since 3 April 2013. The index fell 41.67 points at the day's low of 18,703.26 in early trade.

The CNX Nifty was up 6.60 points or 0.12% to 5,695.55. The index hit a high of 5,732.15 in intraday trade, its highest level since 3 April 2013. The index hit a low of 5,682.25 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,173 shares advanced and 938 shares declined. A total of 126 shares were unchanged.

The total turnover on BSE amounted to Rs 1423 crore by 13:20 IST.

Among the 30-share Sensex pack, 21 stocks advanced while rest of them declined.

Index heavyweight Reliance Industries (RIL) extended intraday losses after the company reported muted sequential growth in net profit in Q4 March 2013 after trading hours on Tuesday, 16 April 2013. The stock was off 3.03% at Rs 780.10. The scrip hit high of Rs 810 and a low of Rs 779.80 so far during the day. Ahead of Q4 results, the RIL stock had gained 4.32% in three trading days to Rs 804.50 on 16 April 2013 from a recent low of Rs 771.15 on 11 April 2013.

RIL's net profit jumped 31.9% to Rs 5589 crore on 1.4% fall in turnover to Rs 86618 crore in Q4 March 2013 over Q4 March 2012. On sequential basis, RIL's net profit rose 1.58% to Rs 5589 crore on 10.06% decline in turnover to Rs 86618 crore in Q4 March 2013 over Q3 December 2012.

Net profit rose 4.8% to Rs 21003 crore on 9.2% growth in turnover to Rs 371119 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result hit the market after trading hours on Tuesday, 16 April 2013.

RIL's gross refining margin (GRM) edged up to $10.1 a barrel in Q4 March 2013 from $9.6 a barrel in Q3 December 2012 and $7.6 a barrel in Q4 March 2012. The GRM edged up to $9.2 a barrel in FY 2013 from $8.6 a barrel in FY 2012.

RIL said its retail business achieved cash breakeven with earnings before depreciation, finance cost and tax expense of Rs 78 crore in FY 2013. Turnover of the retail business jumped 42% to Rs 10800 crore in FY 2013 over FY 2012.

RIL is debt free on a net basis as at 31 March 2013.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries said: "Reliance has delivered another year of strong operating performance in an environment of continued volatile economic conditions. The growth in earnings was largely driven by strong and improved refining margins during the year. Production growth from our investments in unconventional liquids-rich resource plays in North America has reinforced our confidence in creating long term value for our shareholders from this diversification. We are delighted to see our retail business achieving a milestone of annual revenue crossing Rs 10000 crore and will further strengthen our position in this sector. We are working on projects that form the foundation of our aspirations to become one of the world's most competitive producers of petroleum and petrochemical products while developing consumer centric businesses in India".

Index heavyweight and cigarette major ITC rose 1.09% to Rs 311.60. The stock hit record high of Rs 312.25 in intraday trade today, 17 April 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.

FMCG stocks gained on reports of likely normal monsoon this year. FMCG companies derive a substantial revenue from rural markets. Britannia Industries (up 1.01%), Colgate-Palmolive (India) (up 0.16%), Dabur India (up 0.06%), Godrej Consumer Products (up 0.29%), Marico (up 0.75%), Nestle India (up 0.81%) and Tata Global Beverages (up 2.02%) gained. Hindustan Unilever shed 0.22%.

Auto stocks edged higher as slowing wholesale price inflation has raised rate cut expectations. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.

Mahindra & Mahindra (M&M) surged 3.23%. M&M on Tuesday, 16 April 2013, said Mahindra USA (MUSA), a part of Mahindra Group, closed the fiscal year 2013 with record billings and record retail sales, gaining over 2% points, delivering its highest ever market share in the US. The company was ranked No. 2 in the 2013 North American Equipment Dealers Association (NAEDA) Annual Dealer/Manufacturer Relations Survey for Overall Satisfaction, indicating a high degree of customer satisfaction. NAEDA is the apex dealer association in the USA. MUSA is also the No. 3 tractor manufacturer in the USA in the Under 80 HP category, M&M said.

Tata Motors rose 0.44%. The company on 12 April 2013 said that its global wholesales, including Jaguar Land Rover were 116,521 units in March 2013. Cumulative wholesales for the year ended 31 March 2013 (FY 2013) were 1,196,416 units.

Tata Motors' British luxury car unit Jaguar Land Rover (JLR) on 10 April 2013 said its global sales rose 16% to a record 53,772 units in March 2013 over March 2012. JLR's global sales rose 17% to a record 115,504 units in Q1 March 2013 over Q1 March 2012. JLR said the Jaguar brand demonstrated strong growth with sales of 9,856 in March up 28% and sales for the quarter of 20,210 up 31%. Land Rover, meanwhile, delivered the best single month and quarter in its 65 year history with March sales of 43,916, up 14% and quarter one sales of 95,294, up 15% versus 2012, JLR said.

Small-car maker Maruti Suzuki India rose 0.58%.

Shares of two-wheeler makers rose after PSU OMCs reduced petrol prices by Rs 1 per litre on Monday. Hero MotoCorp (up 0.58%) and Bajaj Auto (up 1.49%) gained.

PSU OMCs announced cut in petrol price by Re 1 per litre, excluding value added tax (VAT), effective midnight Monday because of fall in international oil prices. The recent cut in petrol price comes on the back of 85 paise a litre reduction in rates on 2 April 2013 and Rs 2 a litre decrease effected on 16 March 2013.

Ranbaxy Laboratories shed 1.07%. Ranbaxy Laboratories and Daiichi Sankyo today, 17 April 2013, announced synergy in Brazil to expand the business of both companies in the country. As part of this synergy, Ranbaxy will support Daiichi Sankyo's Brazilian subsidiary, Daiichi Sankyo Brasil Farmaceutica Ltda. (hereafter, Daiichi Sankyo Brazil), to enter the branded generics market, in addition to its established business of providing innovative products. Ranbaxy's Brazilian subsidiary, Ranbaxy Farmaceutica Ltda. (hereafter, RFL) would continue to independently promote Ranbaxy's generic products and also enter into branded generics in Brazil.

With the announced synergistic collaboration, the Daiichi Sankyo Group will expand its presence in Brazil through its hybrid business model promoting innovative, branded generic and generic pharmaceuticals. The pharmaceutical market in Brazil is the biggest in Latin America, and it is expected to become the fourth biggest in the world in 2016. In Brazil, Daiichi Sankyo has built up its market presence with innovative pharmaceuticals through Daiichi Sankyo Brazil. On the other hand, Ranbaxy markets its generic products in Brazil through its subsidiary, Ranbaxy Farmaceutica Ltda.

The near term focus of the market is on Q4 results. TCS announces Q4 results today, 17 April 2013. IndusInd Bank announces Q2 results tomorrow, 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.

NTPC rose 0.63% to Rs 144.75 after a bulk deal of 8.88 lakh shares was executed on the counter at Rs 144.80 per share at 11:39 IST on BSE today, 17 April 2013. The bulk deal saw 0.01% equity of NTPC changing hands.

HDFC Bank announces Q4 results on 23 April 2013. Axis Bank will announce its Q4 March 2013 results on 24 April 2013. Jindal Steel & Power declares its Q4 results on 25 April 2013. Hero MotoCorp, ICICI Bank and Maruti Suzuki unveil Q4 results on 26 April 2013. IDFC announces Q4 results on 1 May 2013. Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on 2 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. Bajaj Auto announces Q4 results on 16 May 2013.

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 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 at that time. 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.

Inflation based on the monthly wholesale price index (WPI) eased the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the 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, recent data showed. Inflation under the category 'food and beverages' stood at 12.42%, the data showed.

The index of industrial production rose 0.6% in February 2013, data released by the government on 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.

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.

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 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 markets reversed initial gains on Wednesday. Key benchmark indices in UK and France were down by 0.1% to 0.3%. Germany's DAX rose 0.15%.

Asian stocks were mostly higher on Wednesday as US stocks rose on Tuesday on strong increase in US housing starts and better-than-expected corporate earnings. Key benchmark indices in Hong Kong, South Korea, Taiwan, Singapore, Japan, and Indonesia were up by 0.03% to 1.22%. China's Shanghai Composite fell 0.05%.

Trading in US index futures indicated that the Dow could fall 22 points at the opening bell on Wednesday, 17 April 2013. US stocks edged higher on Wednesday as gold prices rebounded and earnings from Coca-Cola and Johnson & Johnson improved the outlook for first-quarter results.

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