A bout of volatility was witnessed in early afternoon trade as key benchmark indices trimmed losses after hitting fresh intraday low in early afternoon trade. The S&P BSE Sensex was down 57.83 points or 0.29%, off 113.50 points from the day's high and up 40.10 points from the day's low. Realty stocks declined. The market breadth, indicating the overall health of the market, once again turned negative from positive in early afternoon trade.
Sun Pharmaceutical Industries galloped nearly 8% to strike a fresh record high on good Q4 result and a liberal 1:1 bonus issue announced after market hours on Tuesday, 28 May 2013. Cipla fell ahead of its Q4 results today, 29 May 2013. GlaxoSmithkline Consumer Healthcare (Glaxo CHL) advanced to strike a record high ahead of its inclusion in MSCI India index from close of Thursday, 31 May 2013.
Hindalco Industries fell on poor Q4 result announced after market hours on Tuesday, 28 May 2013. Power Grid Corporation of India rose after Q4 result announced after market hours on Tuesday, 28 May 2013. Pidilite Industries gained on robust Q4 result declared after market hours on Tuesday, 28 May 2013.
Key benchmark indices reversed direction after a positive start. The barometer index, the BSE Sensex, hit its highest level in a week at the onset of the trading session. Key benchmark indices cut losses in morning trade. Key benchmark indices hovered in red in mid-morning trade. A bout of volatility was witnessed in early afternoon trade as key benchmark indices trimmed losses after hitting fresh intraday low in early afternoon trade.
The market may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near-month May 2013 series to June 2013 series. The May 2013 derivatives contracts expire tomorrow, 30 May 2013.
At 12:23 IST, the S&P BSE Sensex was down 57.83 points or 0.29% to 20,102.99. The index gained 55.67 points at the day's high of 20,216.49 in early trade, its highest level since 22 May 2013. The index fell 97.93 points at the day's low of 20,062.89 in early afternoon trade.
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The CNX Nifty was down 19.35 points or 0.32% to 6,091.90. The index hit a high of 6,125.05 in intraday trade. The index hit a low of 6,077.35 in intraday trade.
The market breadth, indicating the overall health of the market, once again turned negative from positive in early afternoon trade. On BSE, 1,170 shares declined and 941 shares gained. A total of 150 shares were unchanged. The breadth has alternately swung between positive and negative zone so far during the day.
The total turnover on BSE amounted to Rs 851 crore by 12:20 IST compared to Rs 667 crore by 11:20 IST.
Among the 30-share Sensex pack, 22 stocks declined and the rest of them gained.
Sun Pharmaceutical Industries galloped 7.78% to Rs 1,073 after striking a record high of Rs 1,079.90 in intraday trade today, 29 May 2013. The company's consolidated net profit rose 23.3% to Rs 1011.56 crore on 31.8% rise in net sales to Rs 3071.49 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results after market hours on Tuesday, 28 May 2013.
Sun Pharmaceutical Industries said that the board of directors of the company at its meeting held on Tuesday, 28 May 2013, has recommended a liberal 1:1 bonus issue.
Sun Pharmaceutical Industries' consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 32% to Rs 1260 crore in Q4 March 2013 over Q4 March 2012, while sustaining EBITDA margin at 41%.
Sun Pharmaceutical Industries said that branded generic sales in India were at Rs 780 crore. Adjusted for the extra sales recorded in the Q4 March 2012, as well as the change in treatment of expected sales returns and treatment of discounts, the underlying sales growth of the domestic formulation business is 16%.
US finished dosage sales grew by 63% to $330 million in Q4 March 2013 over Q4 March 2012. International formulation sales grew by 13% to $73 million in Q4 March 2013 over Q4 March 2012.
Consolidated research and development (R&D) expense for Q4 March 2013 was Rs 203 crore, at 6.6% of sales. For the year ended March 2013 (FY 2013), R&D spend was Rs 676 crore, at 6% of sales.
Dilip Shanghvi, managing director of the company said, "I am very pleased to announce that, our sales for FY 2013 have crossed the $2 billion mark. While it took us almost 27 years to record $1 billion in revenues, the next billion was added in just 3 years."
He further said, "All our businesses continue to perform in-line with our expectations. We continue to focus on building a differentiated and specialty product portfolio and enhancing our international presence. Overall, we shall strive to remain focused on execution and building a business with consistent performance."
Meanwhile, Sun Pharma has declined to comment on market speculation that the company may acquire Germany-based Stada.
Cipla fell 0.06% ahead of its Q4 results today, 29 May 2013.
Glaxo CHL gained 3.76% to Rs 5,250.65 after scaling a record high of Rs 5,360 in intraday trade today, 29 May 2013. The stock advanced ahead of its inclusion in MSCI India index from close of Thursday, 31 May 2013.
Hindalco Industries lost 1.09% after net profit fell 24.68% to Rs 482 crore on 8.53% decline in revenue from operations to Rs 6994 crore in Q4 March 2013 over Q4 March 2012. The Q4 result was announced after market hours on Tuesday, 28 May 2013.
Hindalco Industries said that the operational results for Q4 March 2013 showed significant improvement over Q3 December 2012, with EBITDA rising over 10% on sequential basis. The company said it delivered sequentially an improved EBITDA in every quarter during the year ended 31 March 2013 (FY 2013). The operating margin of the company grew by 72 basis points on sequential basis in Q4 March 2014 due to operational efficiencies. Net profit rose 11.05% to Rs 482 crore in Q4 March 2013 over Q3 December 2012.
Hindalco Industries said the company's ongoing projects with cumulative investment of about Rs 28000 crore have either been commissioned or at advanced stages of commissioning/implementation.
Power Grid Corporation of India rose 0.62%. The company's net profit rose 7.5% to Rs 1109.44 crore on 8.8% rise in net sales to Rs 3373.76 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results after market hours on Tuesday, 28 May 2013.
Pidilite Industries rose 1.27%. The company's consolidated net profit rose 27.1% to Rs 81.31 crore on 16.5% rise in net sales to Rs 833.40 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results after market hours on Tuesday, 28 May 2013.
Realty stocks declined. DLF fell 0.87% ahead of its Q4 results tomorrow, 30 May 2013.
Indiabulls Real Estate (down 3.34%), HDIL (down 0.19%), Unitech (down 2.49%), Godrej Properties (down 0.42%), Oberoi Realty (down 1.23%) fell.
The Q4 March 2013 earnings season gets over this week. DLF, M&M and Tata Power unveil Q4 results tomorrow, 30 May 2013.
On the macro front, the government will announce Q4 March 2013 gross domestic product (GDP) data on Friday, 31 May 2013. India's GDP grew 4.5% in Q3 December 2012, sharply slower than the 5.3% expansion reported for Q2 September 2012.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
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.
Asian shares were mostly higher on Wednesday as US stocks rallied to record highs overnight. Key benchmark indices in Japan, Taiwan, Indonesia, South Korea, and China rose by 0.1% to 0.91%. Key benchmark indices in Singapore and Hong Kong fell by 0.38% to 1.19%.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 29 May 2013. US stocks climbed on Tuesday, bouncing back from last week's losses after data showed consumer confidence rising in May and the real-estate market picking up speed.
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