Key benchmark indices hovered in negative terrain in morning trade. The barometer index, the S&P BSE Sensex, was down 74.49 points or 0.38%, up close to 15 points from the day's low and off about 50 points from the day's high. Index heavyweight and cigarette major ITC hovered in red. Another index heavyweight Reliance Industries (RIL) reversed initial gains. The market breadth, indicating the overall health of the market, was positive.
Bank stocks fell on profit booking after recent gains triggered by expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost economic growth. IDBI Bank declined on weak Q4 results. Idea Cellular surged nearly 8% to hit 52-week high after strong Q4 results. Shares of other telecom firms rose after Idea Cellular's good Q4 results.
The market edged lower in early trade. The Sensex hovered in negative terrain in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1449.70 crore on Thursday, 25 April 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was down 74.49 points or 0.38% to 19,332.36. The index declined 89.14 points at the day's low of 19,317.71 in early trade. The index fell 21.90 points at the day's high of 19,384.95 in early trade.
The CNX Nifty was down 28.70 points or 0.49% to 5,887.60. The index hit a high of 5,907.05 in intraday trade. The index hit a low of 5,883.10 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 655 shares advanced and 583 shares declined. A total of 61 shares were unchanged.
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Among the 30-share Sensex pack, 16 stocks declined while rest of them rose.
Index heavyweight Reliance Industries (RIL) fell 0.82% to Rs 814.20. The scrip hit high of Rs 824.85 and a low of Rs 813.90 in intraday trade today, 26 April 2013. The company's telecom arm -- Reliance Jio Infocomm -- and Bharti Airtel on Tuesday, 23 April 2013, signed an agreement for international data connectivity under which Bharti will provide Reliance Jio data capacity on its i2i submarine cable. i2i connects India to Singapore and is wholly owned by Bharti. Reliance Jio will utilize a dedicated fiber pair on i2i. The high speed link will enable Reliance Jio to extend its network and service reach to customers across Asia Pacific region.
Earlier, at the time of announcement of its Q4 results, RIL in mid-April 2013 said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the net 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
Shares of Bharti Airtel surged 4.42%, with the stock gaining for the second straight day.
Idea Cellular surged 7.57% to Rs 125.35 on strong Q4 results. The stock hit 52-week high of Rs 128.70 in intraday trade today, 26 April 2013. The company said after market hours on Thursday, 25 April 2013, that consolidated net profit rose 28.95% to Rs 308.18 crore on 12.88% rise in total income to Rs 6061.38 crore in Q4 March 2013 over Q4 March 2012.
On standalone basis, the net profit rose 33.78% to Rs 254.16 crore on 12.67% growth in total income to Rs 5965.46 crore in Q4 March 2013 over Q4 March 2012.
The company said that it has returned strongly to its upwards revenue trajectory, with 8.6% sequential quarterly growth in Q4 March 2013 on the back of 5% QoQ growth in Q3 December 2012, reaffirming the increasing consumer preference for brand Idea. The company said it maintains its enviable track record of being the 'fastest growing large Indian mobile operator' with gross revenue of Rs 22594.90 crore for the year ended 31 March 2013 (FY 2013), an annual growth of 14.8%.
The high revenue growth is led by sharp expansion of Voice Minutes at 8.5% to 143.4 billion, on sequential quarterly basis, indicating consumer demand for mobile telephony is robust, Idea said in a statement. The VLR growth is back with the company clocking 8.3 million incremental quarterly growth and delivering over 40% of industry incremental VLR in first 11 months of FY 2013 (as per TRAI February 2013 report). Idea now serves 121.6 million quality customers.
Contrary to expectations, the ARPM (Average Realised Rate per Minute) was nearly flat at 41.2p against 41.1p in Q3 December 2012. While the challenges on Voice ARPM continue, the company improved 'Non Voice Revenue' to 15.2% (14.6% in Q3) led by data growth.
The Q4 March 2013 had the highest data adoption by Idea customers with 4.5 million sequential quarter addition, as the EoP base of data users grew to 26.2 million, now contributing 6.6% to service revenue, Idea said. The data volume expanded by 13.8% to 11.4 billion MB (10 billion MB in Q3) and data realised rate improved by 9.5% to 33.9p per MB in Q4 (31p in Q3). The active 3G subscriber base for the company stands at 5.1 million, helping overall 2G+3G data revenue growth on sequential quarterly basis by 24.6% and data ARPU reaching to Rs 55.
The overall exponential revenue growth has translated into EBITDA of Rs 1503.70 crore, margin improvement by 1.2% to 24.7%, inspite of accounting for one-off regulatory charge of Rs 76 crore reflecting in 'License and WPC Charges'. The EBITDA increased 23.8% to Rs 5371.40 crore in FY 2013 over FY 2012.
Idea Cellular said that that company generated healthy cash profit of Rs 4696.80 crore in FY 2013, registering a growth of 30.2% over FY 2012. After 16 years of start of operations, the board of Idea has recommended its maiden dividend of 3%.
The company said that it continues to strengthen its competitive standing by investing in long term value creators -- the company launched 2,432 GSM sites and 1,595 3G sites, expanded optical fibre network to 74,000 km and strengthened its presence in NLD, ILD, ISP, Data Services and Smartphone Device business. Idea Cellular said that the company is the biggest net gainer nationally in the Mobile Number Portability program, a strong indicator of the popular appeal of Idea mobile services.
Shares of other telecom firms rose after Idea Cellular's strong Q4 results. MTNL, Tata Teleservices (Maharashtra) and Reliance Communications rose by 0.49% to 5.21%.
Index heavyweight and cigarette major ITC declined 0.64% to Rs 318.10 on profit booking. The scrip hit high of Rs 319.75 and a low of Rs 317 in intraday trade today, 26 April 2013. The stock had hit record high of Rs 323.85 in intraday trade on Thursday, 25 April 2013. West Bengal chief minister Mamata Banerjee on Wednesday, 24 April 2013, announced a 10% hike in the value-added tax (VAT) on cigarettes to 25% from 15% to raise money for a relief fund for those depositors who have lost money in the Saradha chit fund scam.
Earlier, 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, which was unveiled on 28 February 2013.
Bank stocks fell on profit booking after recent gains triggered by expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost economic growth at a time when wholesale price inflation is slowing. Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI) declined 1.41%.
Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank shed by 0.56% to 1.48%.
Axis Bank fell 1.29% on profit booking after Thursday's 4.13% rally triggered by strong Q4 results. The bank's net profit rose 21.75% to Rs 1555.15 crore on 18.39% growth in total income to Rs 9054.72 crore in Q4 March 2013 over Q4 March 2012. The bank announced Q4 results on Wednesday, 24 April 2013. Axis Bank said that the bank is well capitalised with equity capital of Rs 5537 crore raised in Q4 March 2013. The bank said that it is well positioned for growth with a healthy capital adequacy ratio (CAR) of 17%, and Tier-I CAR at 12.23% as on 31 March 2013.
HDFC Bank declined 0.69% to Rs 684.60, with the stock declining for the third straight day on profit booking after the private sector bank reported strong Q4 results during trading hours on Tuesday, 23 April 2013. The stock had witnessed pre-result rally. The stock jumped 12.68% to settle at Rs 699.25 on BSE on Monday, 22 April 2013, from a recent low of Rs 620.55 on 9 April 2013.
HDFC Bank's net profit rose 30.06% to Rs 1889.84 crore on 21.08% increase in total income to Rs 11127.54 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 30.18% to Rs 6726.28 crore on 24.54% increase in total income to Rs 41917.49 crore in the year ended March 2013 over the year ended March 2012.
ICICI Bank dropped 2.03% ahead of its Q4 results today, 26 April 2013.
IDBI Bank fell 0.11% on weak Q4 results. The bank said after market hours on Thursday, 25 April 2013, that its net profit fell 28.15% to Rs 554 crore on 9.87% growth in total income to Rs 7544 crore in Q4 March 2013 over Q4 March 2012.
IDBI Bank's operating profit rose 32.39% to Rs 1594 crore in Q4 March 2013 over Q4 March 2012. Net interest income (NII) grew by 18.92% to Rs 1440 crore in Q4 March 2013 over Q4 March 2012. Fee based income rose 34% to Rs 875 crore in Q4 March 2013 over Q4 March 2012.
Total business (deposits and advances) as of 31 March 2013 stood at Rs 423423 crore as against Rs 391065 crore as of 31 March 2012, registering a growth of 8.27%. Deposits increased to Rs 227116 crore at end-March 2013 from Rs 210493 crore at end-March 2012, with a growth of 7.9%. Advances increased by 8.71% to Rs 196306 crore at end March 2013 from Rs 180572 crore as at end March 2012. As of 31 March 2013, aggregate assets stood at Rs 322769 crore as against Rs 290316 crore as on 31 March 2012, registering a growth of 11.18%
The focus of the market is on Q4 results. 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. Grasim announces Q4 March 2013 results on 4 May 2013. HDFC unveils Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints announces Q4 results on 9 May 2013. Dr. Reddys Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. BPCL announces Q4 results on 29 May 2013. M&M announces Q4 results on 30 May 2013
The Prime Minister's Economic Advisory Council (PMEAC) in a report released on Tuesday, 23 April 2013, projected 6.4% growth in India's GDP for the current fiscal year 2013/14, higher than an estimated 5% growth for the fiscal year 2012/13. In 2013-14, the headline WPI inflation is expected to be around 6%, compared with provisional figure at 5.96% at the end of 2012-13, the PMEAC said. The net FDI inflow is expected at $24 billion in 2013-14 from an estimated $18 billion in 2012-13. In contrast, FII inflows are seen sliding to $18 billion in 2013-14 from an estimated $24 billion in 2012-13, the PMEAC said.
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. 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 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 government has lined up a number of key bills for consideration and passing during the ongoing 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.
Most Asian stocks rose on Friday as gold headed for its biggest weekly gain since October 2011 as companies from Bank of China to Japan Tobacco Inc. reported earnings. Key benchmark indices in Hong Kong, Indonesia, Taiwan, Japan and Singapore rose by 0.13% to 0.88%. Key benchmark indices in China and South Korea fell by 0.39% to 0.49%.
The Bank of Japan held off on any new policy moves after a monetary policy meeting today, 26 April 2013, in the wake of major new easing initiatives at its previous meeting. In an unusually terse, two-sentence statement, the Japanese central bank only said that it "will conduct money-market operations so that the monetary base will increase at an annual pace of about 60 [trillion]-70 trillion yen," or roughly $610 billion to $710 billion, unchanged from its previous target.
Trading in US index futures indicated that the Dow could fall 20 points at the opening bell on Friday, 26 April 2013. US stocks edged higher on Thursday, buoyed by corporate-earnings reports and data showing a sharp drop in weekly jobless claims.
In Europe, the European Central Bank's (ECB) Governing Council meets in Bratislava on 2 May 2013 to review euro area interest rates. The ECB is seen cutting euro area interest rates by 25 basis points to a record low of 0.5% amid the euro zone's worsening economic outlook and subdued inflation.
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