Key benchmark indices edged higher as slowing wholesale price inflation raised rate cut expectations. The barometer index, the S&P BSE Sensex, advanced 115.24 points or 0.63%, off close to 65 points from day's high and up about 215 points from the day's high. Index heavyweight Reliance Industries (RIL) edged higher ahead of the company's Q4 results tomorrow, 16 April 2013. Another index heavyweight and cigarette major ITC also gained. The market breadth, indicating the overall health of the market, was positive.
The Sensex has fallen 477.97 points or 2.53% in this month so far (till 15 April 2013). The Sensex has declined 1,068.91 points or 5.5% in calendar 2013 so far (till 15 April 2013). From a 52-week high of 20,203.66 on 29 January 2013, the Sensex has declined 1,845.86 points or 9.13%. From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 2,608.82 points or 16.56%.
Coming back to today's trade, bank stocks edged higher as slowing wholesale price inflation raised rate cut expectations. PSU OMCs rose as crude oil prices declined. Infosys gained in volatile trade on bargain hunting after Friday's slump triggered by the company issuing tepid revenue guidance at the time of announcing Q4 March 2013 and the year ended 31 March 2013 results. Tata Steel hit 52-week low. Shares of pharma major Lupin reversed direction after scaling a record high. Shares of another pharma firm Wockhardt extended Friday's steep slide in volatile trade.
Key benchmark indices cut losses after a weak opening triggered by lower Asian stocks. The Sensex hit its lowest level in more than 7 months. Key benchmark indices hovered in red in morning trade. Key benchmark indices turned positive in mid-morning trade. Key benchmark indices advanced to intraday high in early afternoon trade after data released by the government today, 15 April 2013, showed that inflation based on the wholesale price index slowed in March 2013. The market surged to hit fresh intraday high in afternoon trade. A bout of volatility was witnessed as key benchmark indices trimmed gains after hitting fresh intraday high in mid-afternoon trade. The Sensex further trimmed gains in late trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 28.59 crore on Friday, 12 April 2013, as per provisional data from the stock exchanges.
The S&P BSE Sensex was up 115.24 points or 0.63% to 18,357.80, its highest closing level since 11 April 2013. The index jumped 181.84 points at the day's high of 18,424.40 in mid-afternoon trade. The index fell 98.34 points at the day's low of 18,144.22 at the onset of the trading session, its lowest level since 13 September 2012.
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The CNX Nifty was up 39.85 points or 0.72% to 5,568.40, its highest closing level since 11 April 2013. The index hit a high of 5,592.85 and a low of 5,500.30 in intraday trade.
The BSE Mid-Cap index rose 0.15% and the BSE Small-Cap index gained 0.43%. Both these indices underperformed the Sensex.
The BSE Oil & Gas index (up 2.37%), BSE FMCG index (up 1.45%), BSE PSU index (up 1.38%) and BSE Bankex (up 0.96%), outperformed the Sensex.
The BSE Consumer Durables index (down 2.08%), BSE Metal index (down 1.21%), BSE Auto index (down 0.98%), BSE HealthCare index (down 0.77%), BSE Power index (down 0.65%), BSE IT index (down 0.43%) and BSE Realty index (up 0.11%) underperformed the Sensex.
The total turnover on BSE amounted to Rs 1923 crore, lower than Rs 1937.63 crore on Friday, 12 April 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,266 shares advanced and 1,042 shares declined. A total of 123 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks declined while rest of them advanced.
Index heavyweight Reliance Industries (RIL) advanced 2.44% at Rs 794.25. The scrip hit high of Rs 799 and a low of Rs 773.25. RIL announces Q4 results tomorrow, 16 April 2013.
ONGC jumped 3.44% and was the top gainer from the Sensex pack.
PSU OMCs rose as crude oil prices declined. BPCL (up 5.25%), HPCL (up 5.08%) and Indian Oil Corporation (up 4.3%) edged higher. US crude oil futures for May 2013 delivery were down $2.64 a barrel at $88.88 a barrel in the electronic trading today, 15 April 2013. The contract had tumbled $2.22 a barrel or 2.37% to settle at $91.29 a barrel on the New York Mercantile Exchange on Friday, 12 April 2013.
Lower crude oil prices will reduce under-recovery of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at government controlled prices. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers.
Index heavyweight and cigarette major ITC rose 1.5% to Rs 297.50. The scrip hit high of Rs 301 and a low of Rs 289.40 so far during the day. The stock had hit record high of Rs 310.75 on 4 February 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.
Bank stocks edged higher as slowing wholesale price inflation raised rate cut expectations.
State-run State Bank of India (SBI) rose 3.07%. SBI on 20 March 2013 said that the Executive Committee of the Central Board of the Bank, in its Meeting held on 20 March 2013, approved the issuance and allotment of 1.29 crore equity shares at Rs 2,312.78 per share to the Government of India (GoI) by way of preferential allotment.
Among other PSU bank stocks, Canara Bank (up 5.06%), Union Bank of India (up 3.07%), Bank of India (up 3.47%), Bank of Baroda (up 3.15%) and Punjab National Bank (up 2.71%) gained.
ICICI Bank advanced 0.48%. ICICI Bank announces Q4 results on 26 April 2013.
HDFC Bank rose 0.16%. HDFC Bank announces Q4 results on 23 April 2013.
Kotak Mahindra Bank (KMBL) rose 0.67%. KMBL said on Friday, 12 April 2013, that the board of directors of the bank at its meeting held on 11 April 2013 has given its consent for issue of 2 crore equity shares of Rs 5 each amounting to approximately 2.6% shareholding in the bank (as of 31 March 2013) on a post-issue basis to Heliconia, an affiliate of Government of Singapore Investment Corporation Pte (GIC), at a price of Rs 648 per share aggregating to Rs 1296 crore on preferential basis. This transaction augments the Tier I capital of the bank for pursuit of growth opportunities, KMBL said in a statement. It will also be a step towards dilution of promoter stake in the bank, it said.
IndusInd Bank rose 0.51% to Rs 401.90. Shares of the private sector bank rose on high volume of 14.20 lakh shares after a bulk deal of 13.40 lakh shares was executed on the counter at Rs 403 per share at 09:32 IST on BSE today, 15 April 2013.
Infosys gained in volatile trade on bargain hunting after Friday's slump triggered by the company issuing tepid revenue guidance at the time of announcing Q4 March 2013 and the year ended 31 March 2013 results. The stock was up 0.99% to Rs 2,318.10. The scrip hit high of Rs 2,354.95 and low of Rs 2,206. The scrip had tumbled 21.33% on Friday, 12 April 2013. Infosys' consolidated net profit as per International Financial Reporting Standards (IFRS) rose 1.1% to Rs 2394 crore on 0.3% growth in revenue to Rs 10454 crore in Q4 March 2013 over Q3 December 2012. Net profit rose 13.3% to Rs 9421 crore on 19.6% growth in revenue to Rs 40352 crore in the year ended March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The company announced the results before market hours on Friday, 12 April 2013.
The company has forecast a tepid 6% to 10% growth in revenue in both rupee terms and dollar terms for the year ending 31 March 2014 (FY 2014) as the company says that global economic uncertainties remain challenging for the IT industry. The revenue growth outlook is lower than industry body Nasscom's projection of 12% to 14% growth in IT exports in the current fiscal year. Infosys has not given full year earnings guidance this time. Infosys had earlier stopped offering quarterly guidance in July 2012.
Other IT stocks declined on weak US economic data. United States is the biggest outsourcing market for the Indian IT firms. Tata Consultancy Services (TCS) fell 2.38%. TCS announces Q4 results on Wednesday, 17 April 2013. TCS on 9 April 2013 said that it has signed definitive agreements for the acquisition of 100% equity shares in Alti SA, an IT services company in France, for a value of euro 75 million in an all cash transaction. The transaction will strengthen TCS's ability to service its customers in France and other regions in Europe. Alti SA is a privately held company owned by its management and two private equity funds, CM-CIC LBO Partners and IDI, which supported its growth from a revenue base of euro 64 million in 2007 to euro 126 million in 2012.
Wipro declined 0.85%. Wipro announces Q4 results on 19 April 2013. Wipro is now a company focused on the IT business following the demerger of non-IT businesses viz. consumer care products, the infrastructure engineering business and medical diagnostic product and services business. Following the demerger, which took effect on the bourses recently, the non-IT business of the company will be transferred to a separate company to be called Wipro Enterprises.
HCL Technologies fell 1.34%. The company on 3 April 2013 said that it is collaborating with North Carolina New Schools -- a statewide public-private catalyst for education innovation -- to create and promote science, technology, engineering and math (STEM) programs and get college students ready for the 21st century workforce.
Gold financing companies dropped after prices of the yellow metal declined sharply for the second straight day today, 15 April 2013. Muthoot Finance (down 13.13%) and Manappuram Finance (down 9.84%) declined.
Gold finance companies run the risk of rising defaults on gold loans amid falling gold prices. Gold prices have seen a steep slide in the past two days. Gold prices in the spot market were down by about Rs 1,300 per 10 grams at Rs 26,450. Gold had lost Rs 1,250 per 10 grams on Saturday, 13 April 2013.
Metal stocks edged lower on weak economic data in China, the World's largest consumer of copper and aluminum. Sterlite Industries, JSW Steel, Sail, Bhushan Steel, Hindalco Industries and Hindustan Zinc shed by 0.44% to 3.53%. Jindal Steel & Power rose 0.56%.
Tata Steel fell 1.82% to Rs 293.90 after hitting a 52-week low of Rs 293.85 in intraday trade today, 15 April 2013.
Realty stocks edged higher on rate cut expectations after data released by the government today, 15 April 2013, showed that inflation based on the monthly wholesale price index (WPI) slowed in March 2013. Purchases of both residential and commercial property are largely driven by finance. D B Realty, HDIL, Unitech and Sobha Developers rose by 0.43% to 2.58%. But, realty major DLF fell 1.74%.
Lupin slipped 0.99% to Rs 653.10, with the stock reversing gain after scaling a record high of Rs 669.50 in intraday trade today, 15 April 2013. The company after market hours on Friday, 12 April 2013, said that its subsidiary Lupin Pharmaceuticals Inc. (collectively Lupin) has received final approval for its Daysee Tablets (Levonorgestrel and Ethinyl Estradiol Tablets, USP, 0.15 mg/0.03 mg and Ethinyl Estradiol Tablets, USP, 0.01 mg) from the United States Food and Drugs Administration (US FDA) to market a generic version of Teva Branded Pharm's Seasonique Tablets. Lupin has already commenced shipping the product. Lupin's Daysee tablet is indicated for use by women to prevent pregnancy. According to IMS MAT December 2012 data, the total sales for Branded and generic sales for the product stood at $161 million in US.
Shares of pharma firm Wockhardt lost 2.78% in volatile trade, with the stock extending Friday's near 10% slide. The stock fell on reports that the US drug regulator has sought clarifications on the company's injectables facility in Aurangabad.
Sun Pharmaceutical Industries was flat. The company before market hours today, 15 April 2013, announced that the USFDA has granted its subsidiary, two tentative approvals for its Abbreviated New Drug Applications (ANDA) for generic version of Januvia, Sitagliptin Tablets and generic version of Glumetza, Metformin HCl Extended-release tablets.
Sitagliptin tablets, 25 mg, 50 mg and 100 mg are therapeutic equivalents of Merck Sharp & Dohme Corporation's Januvia tablets. Sitagliptin tablets have annual sales of approximately $2.7 billion in the US. Sitagliptin tablets are indicated as an adjunct to diet and exercise to improve glycemic control in adults with type-2 diabetes mellitus.
Metformin HCl Extended-release tablets, 500 mg and 1000 mg are therapeutic equivalents of Santarus Inc.'s Glumetza tablets. Metformin HCl Extended-release tablets have annual sales of approximately $140 million in the US. Metformin HCl Extended-release tablets are indicated as an adjunct to diet and exercise to improve glycemic control in adults with type-2 diabetes mellitus.
Aviation stocks were mostly higher on fall in crude oil prices. SpiceJet (up 6.38%) and Jet Airways (India) (up 5.59%) surged. But, Kingfisher Airlines dropped 5%.
PSU OMCs revise jet fuel prices on the 1st and 16th of every month based on the average international crude price in the preceding fortnight. Aviation turbine fuel or jet fuel constitutes more than 50% of operating cost for airliners. Prices of jet fuel are directly linked to crude oil prices
Auto stocks were mostly lower. Tata Motors lost 2.25%. The company during market hours on Friday, 12 April 2013, said that its global wholesales, including Jaguar Land Rover were 116,521 units in March 2013. Cumulative wholesales for the year ended 31 March 2013 (FY 2013) were 1,196,416 units.
Tata Motors' British luxury car unit Jaguar Land Rover (JLR) on Wednesday, 10 April 2013, said its global sales rose 16% to a record 53,772 units in March 2013 over March 2012. JLR's global sales rose 17% to a record 115,504 units in Q1 March 2013 over Q1 March 2012. JLR said the Jaguar brand demonstrated strong growth with sales of 9,856 in March up 28% and sales for the quarter of 20,210 up 31%. Land Rover, meanwhile, delivered the best single month and quarter in its 65 year history with March sales of 43,916, up 14% and quarter one sales of 95,294, up 15% versus 2012, JLR said.
Mahindra & Mahindra (M&M) declined 1.26%. The company after market hours on Friday, 12 April 2013, announced that its new Sub 4 metre Verito will be named the 'Verito Vibe'. The much awaited launch of the 'Verito Vibe' is scheduled next month. The 'Verito Vibe' is indigenously designed and developed by M&M and is smartly packaged in a sub-4 metre length on the proven Verito platform, M&M said.
The 'Verito Vibe' will be packaging the well acclaimed strengths of class-leading space and comfort, robust build and the ever reliable 1.5 Litre dCi Diesel Engine. The Verito Vibe will sport some first in class styling elements in this younger and sportier avatar. M&M has decided on the name 'Vibe' for its newest offering, with the aim of conveying a distinctive youthful and vibrant imagery. 'Vibe' targets the socially aware, young consumer of today, M&M said.
Speaking on the 'Verito Vibe', Pravin Shah, Chief Executive, Automotive Division, M&M, said: "Customer centric innovation has always been at the heart of any product development at the Mahindra Group. The Verito Vibe marks our entry in the high volume sub 4 metre segment. While developing this product we have paid particular attention to making this car look different and we are sure that it will appeal to customers with its young and sporty looks and that too without compromising the benefits which our existing Verito has to offer."
Maruti Suzuki India rose 0.97%. Maruti on 2 April 2013 said that its total sales declined 4.8% to 1,19,937 units in March 2013 over March 2012. The company's domestic sales fell 4.3% to 1,07,890 units in March 2013 over March 2012. The company's exports dropped 8.9% to 12,047 units in March 2013 over March 2012
Shares of bike makers were mixed. Bajaj Auto rose 0.31%. The company announced on 2 April 2013 that its total sales fell 10% to 3.01 lakh units in March 2013 over March 2012. Motorcycles sales declined 11% to 2.67 lakh units in March 2013 over March 2012. Commercial vehicles sales fell 1% to 34,194 units in March 2013 over March 2012. Exports declined 6% to 1,01,374 units in March 2013 over March 2012.
Shares of Hero MotoCorp slipped 1%.
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 today, 15 April 2013, showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the latest 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, another data showed. Inflation under the category 'food and beverages' stood at 12.42%, the data showed.
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. The key macroeconomic priorities are to raise the growth rate, restrain inflation pressures and mitigate the vulnerability of the external sector, RBI said at that time. Even as the policy stance emphasises addressing the growth risks, the headroom for further monetary easing remains quite limited, the RBI said. The RBI said it will continue to actively manage liquidity through various instruments, including open market operations (OMO), so as to ensure adequate flow of credit to productive sectors of the economy.
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 near term focus of the market is on Q4 results. Reliance Industries (RIL) announces Q4 results tomorrow, 16 April 2013. TCS announces Q4 results on 17 April 2013. IndusInd Bank announces Q2 results on 18 April 2013. Wipro announces Q4 results on 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. ICICI Bank and Maruti Suzuki unveil Q4 results on 26 April 2013. IDFC announces Q4 results on 1 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on 3 May 2013. HDFC announces 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.
The index of industrial production rose 0.6% in February 2013, data released by the government on Friday, 12 April 2013, showed. Manufacturing sector recorded a growth of 2.2%. The mining sector registered a decline of 8.1% and electricity sector declined 3.2%. As per use-based classification, production of basic goods declined 1.8% and that of intermediate goods fell 0.7%. Capital goods production rose 9.5%. Production of consumer non-durables rose 2.9% whereas that of consumer durables shrunk 2.7%.
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.
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 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.
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.
European stock markets edged lower on Monday, with miners leading the drive south after weaker-than-expected Chinese growth figures and slumping metals prices. Key benchmark indices in France, Germany and UK fell by 0.87% to 1.18%.
Asian stocks edged lower on Monday as the latest Chinese economic data came in weaker than expected. Key benchmark indices in Hong Kong, Singapore, South Korea, Japan, China, Taiwan and Indonesia were down by 0.2% to 1.55%.
Chinese economic data came in weaker than expected, as the nation reported first quarter gross domestic product, March industrial output and other statistics today, 15 April 2013. GDP for the January-March quarter rose 7.7% from a year earlier, weakening from 7.9% growth in the fourth quarter. Industrial production for March increased 8.9% from the year-earlier period, the weakest in more than a year and slowing from a 9.9% average rise for the January-February period, which China's statistics bureau reports in one figure due to seasonal distortions from the Lunar New Year holiday. March retail sales rose 12.6%, improving from 12.3% year-on-year growth in the January-February 2013 period, but far less than the 15.2% gain in December 2012.
Trading in US index futures indicated that the Dow could fall 52 points at the opening bell on Monday, 15 April 2013. US stocks closed slightly lower on Friday, 12 April 2013 after weak retail sales and consumer sentiment data indicated that the world's largest economy is losing momentum. US retail sales slid 0.4% in March 2013, the biggest decline since June 2012, Commerce Department figures showed on Friday, 12 April 2013.
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