Key benchmark indices hovered in positive terrain in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 61.24 points or 0.27%, off close to 100 points from the day's high and up about 45 points from the day's low. The market breadth, indicating the overall health of the market, was strong. The BSE Mid-Cap index and the BSE Small-Cap index, both, outperformed the Sensex.
PTC India Financial Services jumped on strong Q4 results. Cairn India declined after the company said that Mr. P Elango, interim CEO & Wholetime Director has decided to step down for personal reasons.
The market edged higher in early trade. It trimmed initial gains and hit fresh intraday low in morning trade. It hovered in positive terrain in mid-morning trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Wednesday, 30 April 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 454.48 crore on Wednesday, 30 April 2014, as per provisional data from the stock exchanges.
At 11:25 IST, the S&P BSE Sensex was up 61.24 points or 0.27% to 22,479.04. The index rose 157.82 points at the day's high of 22,575.62 in early trade. The index gained 15.75 points at the day's low of 22,433.55 in morning trade.
The CNX Nifty was up 17.30 points or 0.26% to 6,713.70. The index hit a high of 6,737.65 in intraday trade. The index hit a low of 6,698.70 in intraday trade.
The BSE Mid-Cap index rose 50.34 points or 0.69% to 7,373.80. The BSE Small-Cap index rose 69.44 points or 0.93% to 7,559.31. Both these indices outperformed the Sensex.
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The market breadth, indicating the overall health of the market, was strong. On BSE, 1,218 shares gained and 817 shares fell. A total of 114 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks gained and rest of them fell. Infosys (up 1.28%), Tata Power Company (up 1.28%) and ICICI Bank (up 1.26%) edged higher from the Sensex pack.
PTC India Financial Services jumped 13.88% after net profit surged 91% to Rs 46.36 crore on 94% growth in total revenue to Rs 149.44 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Wednesday, 30 April 2014. The stock market was closed on Thursday, 1 May 2014, on account of May Day.
PTC India Financial Services (PFS)'s net interest income (NII) surged 56% to Rs 65.06 crore in Q4 March 2014 over Q4 March 2013. Net interest margin (NIM) and spread stood at 6.91% and 4.49% respectively for Q4 March 2014.
PFS' net profit jumped 99% to Rs 207.72 crore on 91% growth in total revenue to Rs 546.16 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
NII rose 39% to Rs 213.22 crore in FY 2014 over FY 2013. NIM and spread stood at 6.92% and 4.57% respectively for FY 2014.
PFS' total debt disbursements during FY 2014 stood at Rs 3071 crore, higher than Rs 1322 crore in FY 2013.
As of 31 March 2014, PFS reported nil net non-performing assets (NPAs). Total outstanding loan assets spurted 117% to Rs 4974 crore as on 31 March 2014, from Rs 2296 crore as of 31 March 2013. Total debt sanctioned stood at Rs 10303 crore as on 31 March 2014.
Cairn India declined 1.24% after the company said during market hours that Mr. P Elango, interim CEO & Wholetime Director has decided to step down for personal reasons. . The Board has accepted his resignation. Mr. Sudhir Mathur, CFO, has taken over the additional responsibility of leading the organization in the interim. Tom Albanese, CEO Vedanta Resources plc and Mike Yeager, Chairman, Operations Review Board, Cairn India, will continue to work closely with the leadership team in managing the business under the guidance of the Board.
The Board expressed its appreciation for Mr. Elango's significant contribution during his nearly 18 years' association with the company. Under Elango's leadership, Cairn delivered 200,000 boepd from the Rajasthan block and achieved record levels of financial revenue & profitability.
Cairn India remains focused on realizing the full potential from the Rajasthan block. Our immediate and medium -term priorities therefore are efficient execution of the key projects in hand, company said.
Mr. Navin Agarwal, Chairman, Cairn India, said: "Elango has had a successful stint at Cairn. He leaves Cairn India in the hands of a strong technical and business organization. Cairn India has a terrific future and I am confident that Sudhir Mathur and the team will steer the organization to realize its true potential".
JSW Energy lost 2.15% after consolidated net profit fell 47.91% to Rs 175 crore on 10.56% decline in total income from operations to Rs 2058 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Wednesday, 30 April 2014. The stock market was closed on Thursday, 1 May 2014, on account of May Day.
JSW Energy attributed the decline in net profit in Q4 March 2014 to higher charge of interest and depreciation on capitalization of units.
The company's consolidated EBITDA (before exceptional items) declined 13.05% to Rs 746 crore in Q4 March 2014 over Q4 March 2013, primarily due to lower generation, even though the margins improved at EBITDA level.
JSW Energy's consolidated net profit fell 16.48% to Rs 755 crore on 2.56% decline in total income from operations to Rs 8705 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
EBITDA (before exceptional items) rose 15% to Rs 3454 crore in FY 2014 over FY 2013. The increase in EBITDA is despite a lower generation during the year which was offset by improved realizations, JSW Energy said in a statement.
JSW Energy's consolidated net worth stood at Rs 6571 crore as of 31 March 2014. Consolidated debt as of 31 March 2014 stood at Rs 10106 crore. Debt equity ratio works out to 1.54 as on 31 March 2014.
With regard to its future business outlook, JSW Energy said that in the power sector, while on the one hand generation capacities are getting added, on the other hand issues on demand, adequate fuel availability and transmission continue to persist. The recent decisions of the regulatory bodies indicate a trend for grant of compensatory tariffs of projects rendered unviable, JSW Energy said. However, the sector continues to reel under the low off-take, falling tariff and fuel uncertainty, the company added. Accordingly, the merchant prices are expected to be under pressure primarily due to low demand and no signs of a pick-up in the economic growth outlook in the near term, JSW Energy said in a statement.
JSW Energy's board of directors at its meeting held on Wednesday, 30 April 2014, recommended dividend of Rs 2 per share for FY 2014 out of distributable profits of the company, subject to approval of members. The board has considered providing dividend higher than the threshold of 20% of the distributable profits of the company in the current year as well, as no major capital expenditure is envisaged in the short term.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.21, compared with its close of 60.34 on Wednesday, 30 April 2014. Financial markets remained closed on Thursday, 1 May 2014 on account of May Day.
Factories across India continued to report improving operating conditions in April. That said, growth of both production and new orders moderated in the latest month. On the price front, input costs and charges rose at softer rates that were weaker than their respective long-run averages.
Unchanged from March's reading of 51.3, the seasonally adjusted HSBC India Purchasing Managers' Index (PMI) indicated a further improvement in operating conditions during April. Nonetheless, growth remained modest and historically muted.
Manufacturing production rose for the sixth successive month in April, amid reports of improved new business inflows. Nonetheless, growth of output waned on the back of competitive pressures and power outages. Sector data highlighted higher production in two of the three monitored categories, namely consumer and intermediate goods.
Amid reports of stronger demand, new orders received by Indian manufacturers grew further in April. That said, the overall pace of expansion eased slightly since March, as increased competition for new work and the elections reportedly hampered growth. Incoming new business rose at consumer and intermediate goods producers, while a reduction was noted in the investment goods sub-sector.
Growth of new export orders eased from March's 35-month peak to the slowest since January. Overseas demand improved at consumer and intermediate goods firms, whereas capital goods producers recorded lower foreign orders in April.
Indian manufacturers indicated that staffing levels rose for the seventh month running in April. The rate of employment growth was, however, fractional overall as the majority of survey participants (around 97%) indicated no change in employee headcounts since March.
April data highlighted purchasing activity growth for the sixth month in succession. Furthermore, the rate of expansion accelerated to the strongest in one year. Panellists commented that a combination of stronger demand and efforts to build-up inventories had been behind the rise in input buying.
Both pre-and post-production stocks rose in April. Holdings of raw materials and semi-manufactured goods increased for the first time in five months, although modestly. Inventories of manufactured goods expanded at a solid rate that was the quickest since September 2012.
Average purchase costs increased in April, amid evidence of higher prices paid for metals, chemicals, plastics, paper, textiles and energy. However, the rate of cost inflation softened to the slowest since last May. Additional cost burdens were partly passed on, as tariffs rose further. Nevertheless, the rate of charge inflation was only marginal and the joint-weakest in the current eleven-month inflationary sequence.
Commenting on the India Manufacturing PMI survey, Leif Eskesen, Chief Economist for India & ASEAN at HSBC said: "The momentum in the manufacturing sector held broadly steady, with domestic demand countering a slowdown in export orders. However, a build-up in finished goods inventories could weigh on output growth in coming months in the absence of a pick-up in demand. Encouragingly, inflation pressures eased, but that does not mean that the RBI can take down its inflation guards.
Eight core sector industries increased 2.5% in March as against 7% in the same month in 2013. On account of higher outputs from coal, petroleum, steel and electricity, the eight key infrastructure industries grew by 2.5% in March. The eight core sector grew by 4.5% in February, while in January, the industries had grown by 1.6%. Overall, the core sector industries grew by 2.6% in FY14 compared to the 6.5% in FY13. Coal production grew by 0.7% in March 2014 compared to the same month in 2013. Steel production and electricity generation also grew by 5.4% each in March 2014 compared to March 2013.
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 stocks were mixed on Friday as investors weighed corporate earnings before the release of US non-farm payrolls later in the global day today, 2 May 2014. Key benchmark indices in Taiwan, Hong Kong, and Indonesia rose 0.24% to 0.74%. Key benchmark indices in Japan, Singapore and South Korea were off 0.13% to 0.47%.
China's official manufacturing purchasing managers' index rose to 50.4 in April.
Trading in US index futures indicated that the Dow could fall 1 point at the opening bell on Friday, 2 May 2014. US stocks ended little changed on Thursday, with the Dow Jones Industrial Average falling from a record, as data showed an increase in jobless claims before the government's monthly labor report.
The Federal Reserve after a two-day meet on Wednesday, 30 April 2014 said it would continue to trim the pace of bond purchases as the economy gains momentum. The central bank cut its monthly asset purchases to $45 billion and said further reductions in measured steps are likely.
Fed Chairwoman Janet Yellen is winding down record stimulus as the world's largest economy shows signs of rebounding from a first-quarter standstill.
Data showed applications for US unemployment benefits unexpectedly climbed to a nine-week high last week, while consumer spending surged in March by the most in almost five years as warmer weather brought shoppers back to auto-dealer lots and malls.
The US non-farm payrolls data for April due later today.
The Institute for Supply Management's factory index rose to 54.9 in April from 53.7 in the prior month, the Tempe, Arizona-based group's report showed today. Readings above 50 indicate expansion. The ISM's factory gauge averaged 53.9 for all of last year.
The US economy barely grew in the first quarter as the severe winter hampered exports and led businesses to curtail investment spending, but activity already appears to be bouncing back. Gross domestic product expanded at a 0.1% annual rate, the slowest since the fourth quarter of 2012, the Commerce Department said on Wednesday.
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