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M&M, Maruti Suzuki hit record high

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Last Updated : May 20 2014 | 5:26 PM IST

Key benchmark indices snapped four-day winning streak today, 20 May 2013. The barometer index, the S&P BSE Sensex, was down 62.14 points or 0.31%, off 219.64 points from the day's high and up 37.32 points from the day's low. Index heavyweight and cigarette major ITC settled flat in choppy trade. Another index heavyweight Reliance Industries (RIL) reversed intraday gains in late trade. The market breadth, indicating the overall health of the market, turned negative from positive in late trade.

Indian stocks snapped four-day winning streak today, 20 May 2013. From a recent low of 19,691.67 on 13 May 2013, the Sensex had gained 594.45 points or 3.01% in four trading sessions to 20,286.12 on Friday, 17 May 2013. The Sensex has gained 719.80 points or 3.69% in this month so far (till 20 May 2013). The Sensex has gained 797.27 points or 4.1% in calendar 2013 so far (till 20 May 2013). From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 4,475 points or 28.41%.

Coming back to today's trade, capital goods stocks reversed intraday gains. IT stocks rose on good economic data in the US. Pharma stocks edged lower on profit booking. Shares of private banks declined. Auto stocks rose on expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013. Mahindra & Mahindra (M&M) and Maruti Suzuki India hit record high. Coal India rose ahead of its standalone earnings for the year ended 31 March 2013 today, 20 May 2013.

Realty stocks edged lower on profit booking after recent gains triggered by expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013. Adani Enterprises jumped on strong Q4 results.

The market edged higher in early trade on firm Asian stocks. The barometer index, the S&P BSE Sensex hit highest level in over 28 months. The 50-unit hit over 30 month high. It held firm in morning trade. It trimmed gains after hitting fresh intraday high in mid-morning trade. It further pared intraday gains in early afternoon trade. Key benchmark indices held firm in afternoon trade. It hovered in positive terrain in mid-afternoon trade. It trimmed losses after slipping into the red to hit fresh intraday low in late trade.

Foreign institutional investors (FIIs) bought shares worth a net Rs 867.93 crore on Friday, 17 May 2013, as per provisional data from the stock exchanges.

The S&P BSE Sensex was down 62.14 points or 0.31% to 20,223.98, its lowest closing level since 15 May 2013. The index rose 157.50 points at the day's high of 20,443.62 in mid-morning trade, its highest level since 5 January 2011. The index fell 99.46 points at the day's low of 20,186.66 in late trade.

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The CNX Nifty was down 30.40 points or 0.49% to 6,156.90, its lowest closing level since 15 May 2013. The index hit a high of 6,229.45 in intraday trade, its highest level since 11 November 2010. The index hit a low of 6,146.05 in intraday trade.

The total turnover on BSE amounted to Rs 1999 crore, lower than Rs 2135.20 crore on Friday, 17 May 2013.

The market breadth, indicating the overall health of the market, turned negative from positive in late trade. On BSE, 1,303 shares declined and 1,114 shares rose. A total of 131 shares were unchanged.

The BSE Mid-Cap index shed 0.39% and the BSE Small-Cap index fell 0.2%.

The BSE Auto index (up 0.82%), BSE IT index (up 0.61%), BSE Teck index (up 0.15%), BSE Metal index (down 0.01%) and BSE FMCG index (down 0.18%), outperformed the Sensex.

The BSE HealthCare index (down 1.79%), BSE Consumer Durables index (down 1.19%), BSE Bankex (down 0.92%), BSE Oil & Gas index (down 0.86%), BSE Realty index (down 0.7%), BSE PSU index (down 0.64%), BSE Capital Goods index (down 0.53%), BSE Power index (down 0.51%) underperformed the Sensex.

Among the 30-share Sensex pack, 18 stocks fell and the rest of them rose.

Index heavyweight Reliance Industries (RIL) fell 0.29% to Rs 832. The stock hit high of Rs 854.80 and low of Rs 828.55.

Index heavyweight and cigarette major ITC rose 0.03% to Rs 334.80. The stock hit high of Rs 342.20 and low of Rs 334.05. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced during market hours on Friday, 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.

On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.

ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.

Coal India rose 0.99% ahead of its standalone earnings for the year ended 31 March 2013 today, 20 May 2013. Along with the year ended 31 March 2013 results, Coal India' board of directors will also consider recommendation of final dividend, if any. Coal India unveils consolidated results for the year ended 31 March 2013 on 27 May 2013.

Shares of private banks declined. Axis Bank fell 0.18% to Rs 1,530.05. The stock reversed direction after hitting 52-week high of Rs 1,549 in intraday trade today, 20 May 2013.

Kotak Mahindra Bank shed 1.33% to Rs 781.10. The stock had hit record high of Rs 796.30 in intraday trade today, 20 May 2013. The bank said during market hours on 16 May 2013, that at the meeting of the Preferential Issue and Allotment Committee of the bank held on Thursday, 16 May 2013, the Committee has allotted 2 crore equity shares on preferential basis to Heliconia Pte, an affiliate of Government of Singapore Investment Corporation, on the terms approved by the shareholders of the bank at the Extraordinary General Meeting of the bank held on 9 May 2013.

ICICI Bank declined 1.4% to Rs 1,211.40. The stock reversed direction after hitting 52-week high of Rs 1,233.90 in intraday trade today, 20 May 2013. The bank after trading hours on Thursday, 16 May 2013, said it has received an aggregate equity capital repatriation of Canadian dollar 75 million from ICICI Bank Canada, its wholly owned banking subsidiary in Canada. Post the repatriation, the share capital of ICICI Bank Canada is Canadian dollar 857 million and its capital adequacy ratio continues to be strong, ICICI Bank said in a statement.

ICICI Bank said it already has a strong capital adequacy ratio, and the return of capital by the subsidiary will enhance the bank's ability to optimise capital deployment and return on equity. .

HDFC Bank declined 0.38% to Rs 716. The stock's intraday high of Rs 724 matched with a record high hit in intraday trade on 17 May 2013.

Yes Bank fell 2.19% to Rs 530.40. The stock reversed direction after hitting record high of Rs 547.15 in intraday trade today, 20 May 2013.

Dhanlaxmi Bank shed 0.32%. The bank reported net profit of Rs 28.66 crore in Q4 March 2013, as against net loss of Rs 86.51 crore in Q4 March 2012. Total income rose 1% to Rs 369.25 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Friday, 17 May 2013.

The bank's ratio of net non-performing assets (NPAs) to net advances increased to 3.36% as on 31 March 2013, from 2.93% as on 31 December 2012 and 0.66% as on 31 March 2012. The ratio of gross NPAs to gross advances increased to 4.82% as of 31 March 2013, from 4.19% as on 31 December 2012 and 1.18% as on 31 March 2012.

The bank's capital adequacy ratio (CAR) as per Basel II norms stood at 11.06% as on 31 March 2013, as against 11.58% as on 31 December 2012 and 9.49% as of 31 March 2012.

Dhanlaxmi Bank's provisions and contingencies jumped 177% to Rs 32.88 crore in Q4 March 2013 over Q4 March 2012.

Dhanlaxmi Bank reported net profit of Rs 2.62 crore in the year ended 31 March 2013 (FY 2013), as against net loss of Rs 115.63 crore in the year ended 31 March 2012 (FY 2012). Total income declined 7.5% to Rs 1422.30 crore in FY 2013 over FY 2012.

Bajaj Finance jumped 4.91% to Rs 1,581.35, with the stock extending recent gains triggered by the company reporting strong Q4 earnings.

Shares of Bajaj Finance have risen 14.59% in four trading sessions from Rs 1,380 on 14 May 2013, after the company during trading hours on Wednesday, 15 May 2013, reported strong Q4 March 2013 earnings. The stock had risen 1.45% to settle at Rs 1,399.95 on Wednesday, 15 May 2013. Bajaj Finance's net profit surged 52% to Rs 164 crore on 35% growth in total income to Rs 843 crore in Q4 March 2013 over Q4 March 2012. The stock hit a high of Rs 1,590 so far during the day, which is also a record high for the counter.

Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), fell 0.31%.

Shriram City Union Finance rose 3.32% to Rs 1,107.75 ahead of the company's result announcement today, 20 May 2013.

Capital goods stocks reversed intraday gains. BEML, Thermax, Siemens and L&T shed by 0.27% to 3.47%. But, Bhel rose 0.27%.

ABB rose 0.31%, extending Friday's 21.01% surge. The company on Saturday, 18 May 2013 denied market rumors that it is planning to delist from the stock exchanges after it checked with its majority shareholder who has confirmed to the company there is no intention to buy additional shares and thus commence the de-listing process.

Pharma stocks edged lower on profit booking. Cipla, Dr Reddy's Laboratories, Lupin, Ranbaxy Laboratories and Wockhardt fell by 1.45% to 5.79%.

Auto stocks rose on expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013. Lower interest rates may help revive demand for vehicles. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.

India's largest car maker by sales, Maruti Suzuki India rose 1.91% to Rs 1,742. The stock hit record high of Rs 1,773.45 in intraday trade today, 20 May 2013. The stock surged recently on the back of a weakening yen. Weak yen could boost earnings of Maruti Suzuki as it imports raw materials from its Japanese parent Suzuki Motor Corporation. It also pays annual royalty on sales to the Japanese parent.

Mahindra & Mahindra (M&M) advanced 1.63% to Rs 1,001.60. The stock hit a record high of Rs 1,026.45 in intraday trade today, 20 May 2013.

Tata Motors fell 0.15%, reversing intraday gain. The company said on Saturday, 18 May 2013 that TML Holdings, a wholly owned subsidiary of the company, issued and allotted S$350 million in principal amount of 4.25% senior notes due 2018. The net proceeds from the issue will be used for the redemption of preference shares issued to Tata Motors and for general corporate purposes. Australia and New Zealand Banking Group, Citigroup Global Markets Singapore, Deutsche Bank AG, Singapore Branch and Standard Chartered Bank acted as joint lead managers and joint bookrunners for the issue.

This announcement does not constitute nor form a part of any offer or solicitation to purchase or subscribe for securities in Singapore, the United States, India or elsewhere, company said. The Notes, when offered, will not be sold or made the subject of an invitation for subscription or purchase, whether directly or indirectly, to any person in Singapore other than (i) to an institutional investor pursuant to Section 274 of the Securities and Futures Act (Chapter 289 of Singapore) (SFA), (ii) to a relevant person pursuant to Section 275(1), or any person pursuant to Section 275(1A), and in accordance with the conditions specified in Section 275, of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA.

The Notes have not been and will not be sold or made the subject of an invitation for subscription or purchase, whether directly or indirectly, to any person in India. The Notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the Securities Act), or the laws of any state of the United States. Consequently, the Notes may not be offered, sold or otherwise transferred within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws. No public offering of the Notes is being or will be made in the United States.

Two wheeler markers also gained. Bajaj Auto rose 0.3%. The company's net profit fell 1% to Rs 766 crore on 4% rise in turnover to Rs 4990 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 1% to Rs 3044 crore on 3% growth in turnover to Rs 20793 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result was announced during trading hours on Thursday, 16 May 2013.

Bajaj Auto said that the company's performance in FY 2013 was good in a very difficult year for the automobile industry. The company's strategy to build strong brands and offer differentiated products in the front-end, and focus on cost and productivity improvements in the back-end, has yielded desired results, Bajaj Auto said.

India's largest motorcycle maker by sales, Hero MotoCorp gained 0.84%. The company said on 1 May 2013 its total sales fell 9.5% to 4.99 lakh in April 2013 over April 2012.

Motherson Sumi Systems galloped 5.43% to Rs 215.50. Motherson Sumi Systems' consolidated net profit rose 0.49% to Rs 195.80 crore on 3.9% growth in total income from operations to Rs 6675.84 crore in Q4 March 2013 over Q4 March 2012. The company announced Q4 results during trading hours on Friday, 17 May 2013. The stock fell 4.11% to Rs 204.40 on that day.

IT stocks rose on good economic data in the US, the biggest outsourcing market for the Indian IT firms. Tata Consultancy Services (TCS) rose 0.34%.

HCL Technologies gained 1.31%. The company on Wednesday, 15 May 2013, announced that it has been selected by Husqvarna Group, a global leader in products and solutions for garden, park and forest care as well as construction, as a global strategic partner. HCL will provide comprehensive business transformation services to Husqvarna.

Infosys rose 1.16%. The company announced during market hours today, 20 May 2013 that Robinsons Bank, a growing commercial bank to the Philippines has selected Infosys Finacle as its transformation partner to support its branch network expansion and business growth.

Wipro shed 1.74%. The company on 9 May 2013 said that the Securities & Exchange Board of India (Sebi) has approved its proposal to meet the minimum public shareholding requirement through a transfer of equity shares by the promoter group to an 'Irrevocable Independent Trust' with trustees either from public sector banks or public financial institutions for advancing philanthropic activities through its beneficiaries. Wipro said that the company and the promoter group have undertaken multiple steps to fulfill the minimum public shareholding requirement including Offer for Sale (OFS). The demerger of the 'diversified' business is also expected to increase public shareholding. Any shortfall to meet public shareholding prior to due date of meeting the minimum public shareholding requirement would be transferred to the 'Irrevocable Independent Trust' and the trust shall effect a sale of such equity shares forming part of the trust funds within a period of two years from the date of such settlement, Wipro said.

Realty stocks edged lower on profit booking after recent gains triggered by expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013. Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance. D B Realty, Godrej Properties and Sobha Developers and Unitech dropped by 0.63% to 3.61%.

DLF fell 0.56% to Rs 248.05. The realty major raised Rs 1863.42 crore from the issue of 8.10 crore shares to institutional investors at Rs 230 per share on 14 May 2013. The share sale was undertaken as an institutional placement programme (IPP) via an auction through the stock exchanges mechanism.

ACC fell 1.39%. The company said after market hours on Friday, 17 May 2013, that the Competition Appellate Tribunal (COMPAT) has passed an order granting the stay on a penalty of Rs 1147.59 crore imposed by the Competition Commission of India on the company relating to the competition law proceedings started in 2010 which aimed at investigating the conduct of several leading cement manufacturers in India including ACC. The stay on order was with condition that company will deposit Rs 114.76 crore which is 10% of the penalty amount within 4 weeks.

Adani Enterprises jumped 3.32% on strong Q4 results. The company's consolidated net profit jumped 53.4% to Rs 474 crore on 8.25% rise in revenues to Rs 11513 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results during market hours today, 20 May 2013.

Apollo Hospitals Enterprise lost 8.21% to Rs 980.10 on profit booking triggered after reporting good results for Q4 and year ended 31 March 2013. The result was announced during trading hours today, 20 May 2013.

Shares of Apollo Hospitals Enterprise have been on a roll recently, surging 18.76% in four trading days to Rs 1,067.75 on 17 May 2013 from a recent low of Rs 899.10 on 13 May 2013. The rally was triggered ahead of the stock's inclusion in MSCI India index with effect from close of 31 May 2013.

Apollo Hospitals Enterprise reported 27.31% rise in net profit to Rs 75.52 crore on 13.56% increase in total income to Rs 852.85 crore in Q4 March 2013 over Q4 March 2012.

Apollo Hospitals Enterprise's reported 33.82% rise in net profit to Rs 309.12 crore on 18.42% increase in total income to Rs 3348.82 crore in the year ended 31 March 2013 over the year ended 31 March 2012.

On a consolidated basis, Apollo Hospitals Enterprise's reported 38.75% rise in net profit to Rs 304.35 crore on 19.71% increase in total income to Rs 3798.88 crore in the year ended 31 March 2013 over the year ended 31 March 2012.

Apollo Hospitals Enterprise's board of directors at its meeting held today, 20 May 2013, recommended a dividend of Rs 5.50 per share for the year ended 31 March 2013.

As per the Q4 results calendar, L&T unveils Q4 results on 22 May 2013. Tata Steel, State Bank of India and Bharat Heavy Electricals (Bhel) unveil Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. Sun Pharma, Power Grid Corporation of India, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. Tata Motors, ONGC, NMDC and BPCL unveil Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.

Global credit rating agency Standard & Poor's (S&P) on Friday, 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.

The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year.

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.

European stock markets on Monday tracked another record close for U.S. stocks last week and an overnight rally in Asia, with banks leading most indexes higher. Key benchmark indices in UK, France and Germany were up by 0.24% to 0.51%.

Asian stock markets edged higher on Monday boosted by US equities hitting record closing highs on Friday as encouraging economic data prompted investors to buy into growth companies. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore and Taiwan rose by 0.11% to 1.78%. South Korea's Kospi fell 0.22%.

Thailand's growth was slower than economists estimated in the first quarter as exports cooled, boosting the case for the central bank to cut interest rates. Gross domestic product increased 5.3% in the three months through March from a year earlier, after expanding a revised 19.1% in the previous quarter, the National Economic and Social Development Board said in Bangkok today.

Trading in US index futures indicated a flat opening of US stocks on Monday, 20 May 2013. US stocks rose on Friday, advancing to a fourth weekly gain, with both the Dow Jones Industrials Average and the S&P 500 at their all-time closing high as gauges for leading indicators and consumer sentiment advanced more than estimated.

The index of U.S. leading indicators climbed in April, a rebound from March that suggests the world's largest economy may be poised for further expansion. The Conference Board's gauge of the outlook for the next three to six months climbed 0.6% last month after falling a revised 0.2% in March that was steeper than previously reported, the New York-based group said. Americans' confidence in the economy climbed in May to the highest level in almost six years as rising real estate values and record stock prices boosted household wealth.

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First Published: May 20 2013 | 4:58 PM IST

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