Market drifts lower in early trade

Key benchmark indices edged lower in early trade on weak Asian stocks. The S&P BSE Sensex was down 100.64 points or 0.5%, up close to 10 points from the day's low and off about 85 points from the day's high. Index heavyweight and cigarette major ITC edged lower in early trade. Another index heavyweight Reliance Industries (RIL) also dropped. The market breadth, indicating the overall health of the market, was positive.

Bank of Baroda declined ahead of its Q4 results today, 13 May 2013. Dena Bank tumbled on weak Q4 results. DLF declined after the company set price band for qualified institutional placement.

At 9:30 IST, the S&P BSE Sensex was down 100.64 points or 0.5% to 20,021.68. The index declined 110.29 points at the day's low of 20,012.03 in early trade. The index declined 13.24 points at the day's high of 20,109.08 in early trade.

The CNX Nifty was down 27.55 points or 0.45% to 6,079.70. The index hit a high of 6,104.95 in intraday trade. The index hit a low of 6,076.25 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 457 shares advanced and 427 shares declined. A total of 40 shares were unchanged.

Among the 30-share Sensex pack, 20 stocks fell while rest of them rose. Tata Consultancy Services (TCS), Coal India and Bajaj Auto shed by 0.93% to 1.19%. Dr Reddy's Laboratories, Cipla and Tata Steel rose by 0.52% to 2.55%.

Index heavyweight Reliance Industries (RIL) fell 0.28% to Rs 810.

Index heavyweight and cigarette major ITC shed 1.61% to Rs 349 on profit booking. The stock had hit record high of Rs 355 in intraday trade during the special trading session held on Saturday, 11 May 2013. The Uttar Pradesh state government on 7 May 2013 slashed VAT on cigarette/cigar from existing 50% to 25%. The state government had last year increased VAT on cigarette/cigar and tobacco products from 12.5% to 50%.

The Centre 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.

Bank of Baroda declined 0.84% ahead of its Q4 results today, 13 May 2013.

DLF declined 0.51% to Rs 235.50. The company on Saturday, 11 May 2013, said that the equity issuance committee of the board of directors of the company at its meeting held on 11 May 2013 finalised 14 May 2013 as the issue opening and closing date for the proposed issue of up to 8.1 crore shares to eligible qualified institutional buyers. The floor price for the qualified institutional placement has been finalised at Rs 222 per equity share, with price band of Rs 222 to Rs 233 per share. The announcement was made after market hours on Saturday, 11 May 2013, when the stock exchanges held a special trading session for a short duration as the BSE was testing its disaster recovery software.

Siemens declined 1.05%. The company said on Saturday, 11 May 2013, that the company has fixed 15 May 2013, as the record date for the purpose of determining the members of Winergy Drive Systems India to whom the equity shares will be issued and allotted by the company consequent upon the amalgamation of Winergy Drive Systems with the company with effect from 31 March 2013.

Dena Bank dropped 3.41% on weak Q4 results. The bank's net profit declined 50.67% to Rs 125.67 crore on 17.23% growth in total income to Rs 2539.74 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 0.9% to Rs 810.38 crore on 29.53% growth in total income to Rs 9554.85 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result was announced after market hours on Saturday, 11 May 2013.

Dena Bank's ratio of gross non-performing assets (NPAs) to gross advances increased to 2.19% as on 31 March 2013, from 2.09% as on 31 December 2012 and 1.67% as on 31 March 2012. The ratio of net NPAs to net advances increased to 1.39% as on 31 March 2013, from 1.31% as on 31 December 2012 and 1.01% as on 31 March 2012.

Dena Bank's capital adequacy ratio (CAR) as per Basel II norms stood at 11.03% as on 31 March 2013, as against 11.47% as on 31 December 2012 and 11.51% as on 31 March 2012.

Dena Bank's provision and contingencies rose 17.46% to Rs 341.95 crore in Q4 March 2013 over Q4 March 2012. The bank's provision coverage ratio stood at 69.58% as on 31 March 2013.

Dena Bank raised Rs 850 crore by way of subordinated debts for Tier II capital during FY 2013.

Dena Bank's board of directors at a meeting held on Saturday, 11 May 2013, proposed dividend of Rs 4.70 per share for FY 2013.

The focus of the market is on Q4 results. Dr Reddy's Laboratories and Reliance Infrastructure unveil Q4 results tomorrow, 14 May 2013. Bajaj Auto announces Q4 results on Thursday, 16 May 2013. ITC unveils Q4 results on Friday, 17 May 2013. Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Bharat Heavy Electricals (Bhel) announces Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.

The government will unveil data on the consumer price index of rural and urban India for April 2013 today, 13 May 2013. The combined consumer price inflation for rural and urban India stood at 10.39% in March 2013, lower than 10.91% in February 2013.

The government will unveil data on the wholesale price index (WPI) for April 2013 tomorrow, 14 May 2013. WPI eased to the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013.

Asian stocks edged lower on Monday, with sentiment hit by selling in commodities triggered by a strong dollar, which rose to a fresh 4-1/2-year peak against the yen on the back of growing confidence in the US economy. Key benchmark indices in China, Hong Kong, Indonesia, Singapore and Taiwan fell by 0.18% to 1.02%. South Korea's Kospi rose 0.03%.

Japanese stocks on Monday jumped to their highest level in more than five years, boosted by an improved profit outlook and further yen weakness after the Group of Seven major economies refrained from criticizing Tokyo's easing policies. The Nikkei Average rose 1.47%.

China is set to unveil data on industrial production and retail sales for April 2013 today, 13 May 2013.

Meanwhile, the US Federal Reserve has reportedly sketched out a plan for winding down its stimulus program of buying $85 billion in bonds each month. As per reports, the Fed intends to clarify the strategy so that the financial markets don't overreact to the Fed's announcements in this regard.

The US Commerce Department unveils monthly report on retail sales for April 2013 later in the global day today, 13 May 2013.

Group of Seven finance officials agreed on Saturday to redouble efforts to deal with failing banks and gave a green light to Japan's drive to galvanize its economy.

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