Intraday volatility continued as key benchmark indices recovered from lower level after giving away almost entire intraday gains in mid-morning trade. The market breadth, indicating the overall health of the market, turned negative from positive in mid-morning trade. The barometer index, the S&P BSE Sensex, was up 38.83 points or 0.19%, up about 35 points from the day's low and off close to 50 points from the day's high.
Pharma stocks edged lower. Shares of power generation firm JSW Energy declined on weak Q2 result. Essar Oil edged higher after announcing Q2 results after trading hours on Friday, 25 October 2013. Shares of local search engine services firm Just Dial rose on strong Q2 result.
The market trimmed initial gains triggered by firm Asian stocks. A bout of volatility was witnessed as key benchmark indices recovered from lower level after giving almost entire initial gains in morning trade. Intraday volatility continued as key benchmark indices recovered from lower level after giving away almost entire intraday gains in mid-morning trade.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month October 2013 series to November 2013 series. The near month October 2013 derivatives contract expire on Thursday, 31 October 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 626.99 crore on Friday, 25 October 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 38.83 points or 0.19% to 20,722.35. The index rose 87.84 points at the day's high of 20,771.36 in early trade. The index rose 5.26 points at the day's low of 20,688.78 in mid-morning trade.
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The CNX Nifty was up 6.80 points or 0.11% to 6,151.70. The index hit a high of 6,168.75 in intraday trade. The index hit a low of 6,145.45 in intraday trade.
The market breadth, indicating the overall health of the market, turned negative from positive in mid-morning trade. On BSE, 978 shares dropped and 954 shares advanced. A total of 132 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks rose and rest of them fell. Reliance Industries (up 1.81%), L&T (up 2.3%) and ICICI Bank (up 1.7%), gained.
Pharma stocks edged lower. Cipla (down 0.26%), Lupin (down 1.68%), Ranbaxy Laboratories (down 0.81%) and Sun Pharmaceutical Industries (down 1.34%), dropped. Dr Reddy's Laboratories rose 0.04%.
Bharti Infratel shed 1.88% as net profit fell on sequential basis in Q2 September 2013. Consolidated net profit dropped 22.42% to Rs 277.40 crore on 2.35% growth in revenue to Rs 2683.70 crore in Q2 September 2013 over Q1 June 2013. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 2.82% to Rs 1075.90 crore in Q2 September 2013 over Q1 June 2013. EBITDA margin edged higher at 40.1% in Q2 September 2013, from 39.9% in Q1 June 2013. The company announced Q2 result during market hours.
Essar Oil rose 0.72% after Q2 result. The company reported net loss of Rs 71 crore in Q2 September 2013 as against net profit of Rs 105 crore in Q2 September 2012. Gross revenue rose 19% to Rs 27392 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Friday, 25 October 2013.
Essar Oil said that the gross revenue in Q2 September 2013 is its all-time high. During the quarter, Vadinar Refinery processed 5.18 MMT of crude, up 2% over Q2 September 2012, indicating a capacity utilization of 104%. It is its highest-ever throughput, the company said.
During Q2 September 2013, Essar Oil reported Current Price Gross Refining Margin of $6.93 per barrel, compared to $7.86 per barrel in Q2 September 2012, mainly due to sharp reduction in benchmark IEA margins by $3.76/bbl during the quarter (IEA margins for Sep 2013 quarter was negative $1.30/bbl against positive $2.46/bbl). Negative diesel demand growth in domestic market on the back of heavy, timely, and extended monsoon this year led to substantial increase in diesel exports, further impacting margins adversely, Essar Oil said.
The EBITDA (earnings before interest, taxation, depreciation and amortization) declined 11.63% to Rs 1033 crore in Q2 September 2013 over Q2 September 2012. EBITDA was impacted due to lower gross refining margin (GRM).
Mr LK Gupta, MD & CEO, Essar Oil said, We continue to operate our refinery in a highly optimized manner and this is the fifth consecutive quarter post expansion that the refinery is operating at over its nameplate capacity. Despite a sharp reduction in benchmark margins by about $3.8/bbl, our GRMs have been only marginally impacted. Our GRM premium over the IEA benchmark expanded to $8.23/bbl during the quarter, against $5.4/bbl in Q2 September 2012. With clarity emerging on deregulation of diesel, we are now looking at expanding our retail network, which going forward will be a big value booster for the company".
Mr Suresh Jain, CFO, Essar Oil said, We have maintained strong operating performance with record throughput and revenue. EBITDA has been impacted due to lower refinery margins. Benefits of debt dollarization, along with rationalisation of other financial charges like hedging and working capital has begun reflecting in our lower interest and financial charges.
JSW Energy lost 2.27% on weak Q2 result. The company's net profit fell 35.82% to Rs 163 crore on 2.5% decline in total income from operations to Rs 2025 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced on Saturday, 26 October 2013.
The consolidated profit after tax (PAT) of Rs 163 crore in Q2 September 2013 was after taking into account a foreign exchange (forex) loss of Rs 168 crore which has been considered as an exceptional item during the quarter due to continued and steep depreciation of the rupee against the dollar in Q2 September 2013.
EBITDA (earnings before interest, taxation, depreciation and amortization) surged 43% to Rs 893 crore in Q2 September 2013 over Q2 September 2012, primarily due to improved realisation and reduced fuel cost.
JSW Energy achieved an average plant load factor (PLF) of 69.38% in Q2 September 2013 and a net generation of 4,352 million units during the quarter on an installed capacity of 3,140 megawatts (MW). PLF during the quarter was significantly lower primarily due to frequent back down by the load dispatch centre mainly due to heavy monsoon, slackness in power procurement by utilities and annual overhauling & maintenance shutdowns of units, the company said in a statement.
The merchant sales in Q2 September 2013 were 1,507 million units, the sales under long term PPA were 2,268 million units and the balance units were banked during the quarter, JSW Energy said.
JSW Energy's total net worth and net debt as on 30 September 2013 were Rs 6598 crore and Rs 10335 crore respectively resulting in a debt equity ratio of 1.57.
On project updates, JSW Energy said that all the requisite environmental approvals for the 240 MW power project at Kutehr, Himachal Pradesh (HP), have been received. The land acquisition process for the project is progressing satisfactorily and the tendering process for the project construction has been initiated. The cost incurred till 30 September 2013 was Rs 231 crore, the company said in a statement.
The possession of land for Jalipa mines and transfer to lessee is awaited, JSW Energy said. The project cost is estimated at Rs 1800 crore (comprising both Kapurdi & Jalipa mines) and cost incurred till 30 September 2013 was Rs 1457 crore, the company said in a statement.
With regard to future business outlook, JSW Energy said that with sharp depreciation of rupee in the current fiscal and imported coal prices beginning to firm up sharply, the fuel costs are expected to go up. In the event weak demand for power persists with an anticipated increase in fuel costs, margins are expected to be under pressure, JSW Energy said in a statement.
Just Dial rose 2.58% on strong Q2 result. The company's net profit rose 97.93% to Rs 28.66 crore on 28.56% rise in net sales to Rs 112.66 crore in Q2 September 2013 over Q2 September 2012. The result was announced on Saturday, 26 October 2013.
Just Dial announced on Saturday, 26 October 2013, that its board at the meeting held on 25 October 2013, took note of an order received from Government of Karnataka permitting the company to establish an IT/ITES - BPO and software development centre at IT/ITES park in Bangalore. The board has constituted a committee of directors and officers of the company to evaluate the proposal.
The board also discussed new business opportunities and has decided to seek shareholders' approval through postal ballot to enable the company to undertake such new businesses.
In the foreign exchange market, the rupee edged lower against the dollar on caution ahead of the Reserve Bank of India's (RBI) monetary policy review tomorrow, 29 October 2013. The partially convertible rupee was hovering at 61.525, compared with its close of 61.46/47 on Friday, 25 October 2013.
The Reserve Bank of India (RBI) announces Second Quarter Review of Monetary Policy 2013-14 tomorrow, 29 October 2013. Market men expect RBI to hike its main lending rate viz. the repo rate by 25 basis points to rein in inflation. The wholesale price and consumer price inflation, both, accelerated in September 2013. WPI inflation accelerated to 6.46% in September 2013, from 6.1% in August 2013. The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India rose 9.84% in September 2013, from 9.52% in August 2013.
The RBI will release its macroeconomic policy review at about 17:00 IST today, 28 October 2013, a day ahead of the Second Quarter Review of Monetary Policy 2013-14.
Asian stocks rose on Monday, 28 October 2013, after weaker than forecast US consumer confidence spurred bets the Federal Reserve will maintain stimulus. Key benchmark indices in Taiwan, Hong Kong, Singapore, Japan, Indonesia and South Korea rose 0.21% to 1.82%. China's Shanghai Composite fell 0.43%.
A Bank of Korea survey showed consumer sentiment rose this month to the highest level since May 2012.
Trading in US index futures indicated that the Dow could gain 59 points at the opening bell on Monday, 28 October 2013. US stocks rose on Friday, 25 October 2013, sending the Standard & Poor's 500 Index to a record, as Amazon.com Inc. and Microsoft Corp. sales beat estimates while a drop in consumer confidence added to speculation the Federal Reserve will delay scaling back monetary stimulus.
Data on US industrial production for September 2013 is due for release later in the global day today, 28 October 2013.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting tomorrow, 29 October and Wednesday, 30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
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