Key benchmark indices pared gains in morning trade. The S&P BSE Sensex was up 38.68 points or 0.21%, off 39.14 points from the day's high and up 78.23 points from the day's low. Index heavyweight Reliance Industries (RIL) reversed initial gains. Another index heavyweight and cigarette major ITC hit fresh record high. The market breadth, indicating the overall health of the market, was strong.
Interest rate sensitive realty stocks edged higher as slowing wholesale price inflation has raised rate cut expectations. Capital goods stocks gained on renewed buying. IT major TCS slipped after reporting Q4 earnings after trading hours on Wednesday, 17 April 2013.
Key benchmark indices turned positive after a negative start triggered by mostly lower Asian stocks. The market pared gains in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 206.68 crore on Wednesday, 17 April 2013, as per provisional data from the stock exchanges.
At 10:15 IST, the S&P BSE Sensex was up 38.68 points or 0.21% to 18,769.84. The index gained 77.82 points at the day's high of 18,808.98 in morning trade. The index fell 39.55 points at the day's low of 18,691.61 in early trade.
The CNX Nifty was up 10.60 points or 0.19% to 5,699.30. The index hit a high of 5,711.35 in intraday trade. The index hit a low of 5,681.85 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 963 shares advanced and 496 shares declined. A total of 80 shares were unchanged.
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The total turnover on BSE amounted to Rs 449 crore by 10:20 IST compared to Rs 159 crore by 09:30 IST.
Among the 30-share Sensex pack, 16 stocks advanced while rest of them declined.
Index heavyweight Reliance Industries (RIL) shed 0.05% to Rs 773.80, with the stock reversing initial gains. The scrip hit high of Rs 782.85 and a low of Rs 773 so far during the day. The stock had dropped 3.77% on Wednesday, 17 April 2013, after the company reported muted sequential growth in net profit in Q4 March 2013 after trading hours on Tuesday, 16 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).
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.
Index heavyweight and cigarette major ITC rose 0.75% to Rs 315.50. The stock hit record high of Rs 316.35 in intraday trade today, 18 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.
IT major TCS was off 0.7% to Rs 1,449.30. The stock hit high of Rs 1,485 and low of Rs 1,429. The company after trading hours on Wednesday, 17 April 2013, said its consolidated net profit rose 1.9% to Rs 3616 crore on 2.2% growth in revenue to Rs 16430 crore in Q4 March 2013 over Q3 December 2012. The company clocked volume growth of 4.4% on sequential basis in the fourth quarter.
Net profit jumped 33.6% to Rs 13917 crore on 28.8% growth in revenue to Rs 62989 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The company clocked volume growth of 16.8% in FY 2013 over FY 2012.
TCS said there was balanced growth across markets and industries in FY 2013. All industry verticals grew in double digits in FY 2013, it said. TCS' full service capabilities continue to be leveraged by customers with new service lines growing at a fast pace. The infrastructure services segment grew 47%, Business Process Outsourcing grew 46% while Assurance Services, Enterprise Solutions and Global Consulting grew by 33%, 25% and 52% respectively, TCS said.
Commenting on the FY 2013 results, Mr. N. Chandrasekaran, CEO and MD, TCS, said: "TCS has delivered a year of strong growth with all markets and industry segments growing in double digits. Our ability to co-create with customers, remain relevant to their business and our investments in digital technologies are delivering tangible value as customers optimize, transform and growth."
With regard to the outlook for the current year ending 31 March 2014 (FY 2014), Mr. Chandrasekaran said: "We remain confident that 2013-14 will bring greater opportunities as technology plays an increasing role in reimagining business globally. We continue to identify new growth engines and are investing ahead of the curve in products, platforms and intellectual property that is of great relevance to our customers and their business growth. As an industry leader, we remain focused on sustaining our momentum."
Rajesh Gopinathan, Chief Financial Officer, TCS, said: "Our growth has been well-rounded in FY 2013 and we have endeavored to maintain our profitability despite stiff headwinds and increased volatility through the year. We continue to ensure cost discipline at an operational level while supporting diversified business growth."
Capital goods stocks gained on renewed buying. ABB (up 0.94%), Bhel (up 0.85%), Bharat Electronics (up 0.88%), Siemens (up 1.51%) and Thermax (up 1.2%) edged higher.
L&T advanced 1.23%. The company on 12 April 2013 said that it would acquire 50% stake in L&T-Komatsu (LTK) held by Komatsu Asia & Pacific Pte, a wholly owned subsidiary of Komatsu, Japan. With this buy-out, LTK will become a wholly owned subsidiary of L&T. LTK will continue to manufacture construction equipment and hydraulic components. Komatsu will be responsible for the production of Komatsu equipment including hydraulic excavators, L&T said in a statement.
As a result of this transaction, the companies expect to able to provide premium products and services to customers, and maintain leadership position in construction & mining equipments business, offering state-of-the-art machines with highest level of quality and latest designs from Komatsu, L&T said. L&T will continue to be responsible for marketing, sales and product support in India for the Komatsu range of products, assuring customers of the highest level of Support, L&T said in a statement.
Realty stocks gained as slowing wholesale price inflation has raised rate cut expectations. Purchases of both residential and commercial property are largely driven by finance. DLF (up 0.43%), D B Realty (up 0.09%), HDIL (up 0.51%), Unitech (up 0.74%), and Sobha Developers (up 0.44%) gained.
The stock market remains closed tomorrow, 19 April 2013, on account of Ram Navmi.
The focus of the market is on Q4 results. Wipro announces Q4 results tomorrow, 19 April 2013. Cairn India announces Q4 results on 22 April 2013. UltraTech Cement announces Q4 results on the same day. 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. ABB and HDFC unveil 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.
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. 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.
Asian stocks were mostly down on Thursday as sentiment took hits from falling commodity prices and weak US corporate results, with some technology stocks dropping after a sharp fall in Apple Inc. Key benchmark indices in Hong Kong, China, South Korea, Japan and Indonesia were down by 0.05% to 0.75%. Key benchmark indices in Singapore and Taiwan were up by 0.04% to 0.13%.
Trading in US index futures indicated that the Dow could gain 11 points at the opening bell on Thursday, 18 April 2013. US stocks fell sharply on Wednesday, 17 April 2013, led by a sharp drop in Apple shares on worries about slowing demand for its products and weaker-than-expected results from Bank of America.
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