Key benchmark indices gained for the second straight day as firm European stocks and mostly higher Asian stocks supported domestic bourses. The barometer index, the S&P BSE Sensex settled above the psychological 20,000 mark. The S&P BSE Sensex was up 326.44 points or 1.66%, up close to 350 points from the day's low and off about 50 points from the day's high. Index heavyweight Reliance Industries (RIL) surged over 5% after the company along with partners announced huge gas discovery in KG-D6 block. Another index heavyweight and cigarette major ITC also gained. The market breadth, indicating the overall health of the market, was positive.
From a recent low of 19,674.33 on 23 May 2013, the Sensex has gained 356.44 points or 1.81% in two trading sessions. The Sensex has gained 526.59 points or 2.69% in this month so far (till 27 May 2013). The Sensex has gained 604.06 points or 3.1% in calendar 2013 so far (till 27 May 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 412.85 points or 2.01%. From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 4,281.79 points or 27.18%.
Coming back to today's trade, shares of mortgage lender HDFC hit record high. Coal India rose ahead of its consolidated FY 2013 results today, 27 May 2013. Sun Pharmaceutical Industries scaled record high ahead of Q4 results tomorrow, 28 May 2013. Shares of Britannia Industries galloped to record high after announcing strong Q4 results after market hours on Friday, 24 May 2013. Telecom stocks were in demand on reports that Reliance Communications (RCom) has raised basic rates for prepaid mobile-to-mobile calls by 33%.
Volatility ruled the roost in early trade as the key benchmark indices rose to intraday high after sliding in the red following a positive start. The CNX Nifty regained the psychological 6,000 mark in early trade. Key benchmark indices hit fresh intraday high in mid-morning trade. Key benchmark indices pared gains after striking fresh intraday high in early afternoon trade. It regained strength in afternoon trade. Key benchmark indices extended gains to strike fresh intraday high in mid-afternoon trade. Key benchmark indices pared gains after striking intraday high in late trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 238.56 crore on Friday, 24 May 2013, as per provisional data from the stock exchanges.
The S&P BSE Sensex was up 326.44 points or 1.66% to 20,030.77, its highest closing level since 22 May 2013. The index jumped 379.14 points at the day's high of 20,083.47 in late trade. The index fell 26.02 points at the day's low of 19,678.31 in early trade.
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The CNX Nifty was up 99.60 points or 1.66% to 6,083.15, its highest closing level since 22 May 2013. The index hit a high of 6,099.90 and a low of 5,975.55 in intraday trade.
The BSE Mid-Cap index rose 1.14% and the BSE Small-Cap index gained 0.79%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 1881 crore, lower than Rs 1981.93 crore on Friday, 24 May 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,364 shares rose and 981 shares fell. A total of 140 shares were unchanged.
Among the 30-share Sensex pack, 27 stocks gained and only three of them fell.
Index heavyweight Reliance Industries (RIL) advanced 5.12% and was the top gainer from the Sensex pack. RIL after market hours on Friday, 24 May 2013 said that the company and its partners BP and NIKO on 24 May 2013 announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of India.
RIL said that the discovery, named 'D-55', has been notified to the Government of India (GoI) and the Management Committee of the block. This discovery is expected to add to the hydrocarbon resources in the KG D6 block. Appraisal will now commence to better define the scale and quality of the field, RIL said in a statement.
RIL is the operator of KG D6 with 60% equity. BP has a 30% share and NIKO the remaining 10%.
Index heavyweight and cigarette major ITC rose 1.14% to Rs 333.75. 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 on 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.
Britannia Industries galloped 15.91% to Rs 665.85 after striking a record high of Rs 680 in intraday trade today, 27 May 2013. The company's net profit jumped 65.7% to Rs 87.85 crore on 13.5% growth in net sales to Rs 1486.63 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Friday, 24 May 2013.
Britannia Industries' net profit rose 25.2% to Rs 233.87 crore on 12.5% growth in net sales to Rs 5564.38 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
On consolidated basis, Britannia Industries' net profit rose 30% to Rs 259.50 crore on 12.4% growth in net sales to Rs 6135.91 crore in FY 2013 over FY 2012.
Commenting on the company's performance, Ms. Vinita Bali, MD, Britannia Industries said, "Our results are a reflection of our focus on driving consumer off-take & operational efficiencies to generate sustainable and profitable growth, which has resulted in a standalone revenue growth of 12.5% and net profit increase of 25.2% for the year. We have also seen a 100 bps increase in operating margin".
Britannia Industries' board of directors at a meeting held on Friday, 24 May 2013, recommended dividend of Rs 8.50 per share for FY 2013.
Coal India rose 1.01% ahead of its consolidated FY 2013 results today, 27 May 2013.
Shares of mortgage lender HDFC rose 2.24% to Rs 927.85. The stock hit record high of Rs 929.70 in intraday trade today, 27 May 2013.
Metal stocks were in demand on renewed buying. Sterlite Industries (India) (up 2.46%), JSW Steel (up 0.76%), Tata Steel (up 1.04%), Sail (up 1.17%), National Aluminium Company (up 2.23%), Hindustan Zinc (up 2.01%), Jindal Steel & Power (up 3.54%) and Hindalco Industries (up 3.13%) edged higher.
Telecom stocks were in demand on reports that Reliance Communications (RCom) has raised basic rates for both GSM and CDMA prepaid mobile-to-mobile calls by 33% to 2 paise per second from 1.5 paise per second.
RCom will reportedly charge base rate of 2 paise per second for mobile-to-mobile calls. The base rate, or the headline tariff, applies to customers not covered under any special scheme offered by their telecom operator.
Bharti Airtel (up 3.66%), Idea Cellular (up 3.96%), MTNL (up 2.41%), and Reliance Communications (up 5.36%) gained. Tata Teleservices (Maharashtra) was unchanged at Rs 8.12.
Capital goods pivotals gained on renewed buying. L&T rose 0.58%. The company reported 6.9% fall in net profit to Rs 1787.94 crore on 9.9% rise in total income to Rs 20686.93 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 22 May 2013.
Bharat Heavy Electricals (Bhel) gained 2.02% on bargain hunting after previous two sessions of losses triggered by weak Q4 results. The company reported Q4 results during market hours on Thursday, 23 May 2013. Bhel reported 4.2% fall in net profit to Rs 3237.54 crore on 2.2% decline in net sales to Rs 18850.16 crore in Q4 March 2013 over Q4 March 2012.
Auto stocks were mixed. India's largest utility vehicle maker by sales, M&M shed 1.6%.
India's largest car maker by sales, Maruti Suzuki India declined 1.09%.
Tata Motors rose 2.2%. The company said on 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.
Two wheeler makers gained. Bajaj Auto rose 0.72%. 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 on 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 rose 1.62%. The company after market hours on Thursday, 23 May 2013 said that it has fixed 30 May 2013 as record date for ascertaining the names of the equity shareholders of Hero Investments (HIPL) in proportion of their holdings in HIPL for considering their entitlement for the purpose of issuance and allotment of equity shares in HMCL in the ratio of 1:1 i.e. one equity share for every one existing equity share held in HMCL by HIPL.
Aviation stocks were mostly lower. Jet Airways (India) lost 2.99% after the company reported net loss of Rs 495.53 crore in Q4 March 2013, higher than net loss of Rs 298.12 crore in Q4 March 2012. Jet Airways (India)'s revenue declined 2.49% to Rs 3990.50 crore in Q4 March 2013 over Q4 March 2012. The Q4 result was announced after market hours on Friday, 24 May 2013.
Revenues from domestic operations in Q4 March 2013 stood at Rs 1602.80 crore, accounting for 40.2% of total revenue. Seat factors remained at around 74.8% for Q4 March 2013, as against 77.1% for Q4 March 2012.
Revenues from international operations in Q4 March 2013 stood at Rs 2387.70 crore, accounting for 59.8% of total revenue. Achieved seat factor of 84.4% in Q4 March 2013, compared with 86% in Q4 March 2012.
Jet Airways (India) reported net loss of Rs 485.50 crore in the year ended 31 March 2013 (FY 2013), lower than net loss of Rs 1236.10 crore in the year ended 31 March 2012 (FY 2012). Revenue rose 13.8% to Rs 17068.70 crore in FY 2013 over FY 2012.
On consolidated basis, Jet Airways (India) reported net loss of Rs 779.28 crore in FY 2013, lower than net loss of Rs 1420.13 crore in FY 2012. Total income from operations rose 12.79% to Rs 18840.56 crore in FY 2013 over FY 2012.
Jet Airways (India) said that the performance of the company in Q4 March 2013 was impacted due to high fuel prices, rupee depreciation and increase in cost of operations. Temporary slowdown in demand has resulted into capacity reduction, the company said. This has resulted in aircraft on ground. Few of them were redeployed to profitable international routes, Jet Airways (India) said in a statement.
The impact of aircraft on ground for the quarter was Rs 90.30 crore. There were instances of aircraft on ground during the year (FY 2013); the impact of this for the year was Rs 188.90 crore, Jet Airways (India) said. The result also includes onetime exceptional items amounting to Rs 310.20 crore. This is mainly due to maintenance events, payroll arrears, SFIS reversal on account of expiry of licence and loss on exchange fluctuation. Additionally the company also had certain credits on account of compensation credit and profit on sale and lease back of London slots, Jet Airways (India) said.
With regard to its future business outlook, Jet Airways (India) said that the rupee depreciation and increase in cost of operations, especially landing & navigation cost continues to be a cause of concern. Significant increases in landing & navigation charges at key metros will lead to airlines passing on the costs to the passenger, which may affect the passenger growth in short term, the company added.
Jet Airways (India) said that the demand growth is expected to climb up to a 10-12% range. As against this, capacity increases are expected to be moderate in the industry. Airlines are regaining pricing power and industry load factors are starting to go up, the company said.
Jet Airways (India) said it continues with its endeavor in cutting costs and improving productivity. Initiatives such as enhancing ancillary revenues, discontinuing loss making routes, sale/sale and lease back of aircraft will help the company in the medium to long term, the company said.
Jet Airways (India) said that the proposed Jet-Etihad deal will bring immediate revenue growth and cost synergy opportunities for both the airlines and will help strengthen Jet Airways balance sheet. The company said that the key cost benefits and synergies in fleet acquisition, maintenance, joint purchasing opportunities for fuel, spare parts, equipment and catering supplies, as well as external services such as insurance and technology support will come through. Other areas of co-operation will include joint training of pilots, cabin crew and engineers, as well as maintenance of common aircraft types and consolidation of guest loyalty programs, the company added. The alliance will bring significant guest benefits with expanded code sharing, creating a combined network of 140 destinations. All of the above will result in accelerated return to sustainable profitability, Jet Airways (India) said in a statement.
SpiceJet lost 4.89% after the company reported net loss of Rs 186 crore in Q4 March 2013, as against net loss of Rs 249 crore in Q4 March 2012. SpiceJet's revenue rose 31% to Rs 1456 crore in Q4 March 2013 over Q4 March 2012. The Q4 result was announced after market hours on Friday, 24 May 2013.
SpiceJet's average passenger yield rose 8% to Rs 3,739 in Q4 March 2013 over Q4 March 2012.
SpiceJet said that the continued weakness of Indian Rupee, high fuel prices and significant tax burden continued to hurt the entire domestic aviation sector. However, SpiceJet said it was in Q4 March 2013 successfully able to grow passenger traffic by around 20%, outperforming the domestic industry passenger growth. However, the increase in fares was inadequate to fully absorb the impact of higher costs of operation, SpiceJet said in a statement.
SpiceJet reported net loss of Rs 191 crore in the year ended 31 March 2013 (FY 2013), as against net loss of Rs 606 crore in the year ended 31 March 2012 (FY 2012). Revenue rose 43% to Rs 5714.55 crore in FY 2013 over FY 2012.
Mr. Neil Mills, Chief Executive Officer, SpiceJet said, "The past twelve months have continued to be difficult and the Indian aviation industry witnessed increasing cost challenges particularly relating to airport charges as well as the adverse impact of the weakness of the rupee. We continue to be confident of the future, particularly as we have launched numerous international routes and this will improve the mix and performance in the future".
But, Kingfisher Airlines jumped 4.97%.
Sun Pharmaceutical Industries surged 4.66% to Rs 1,014.85 after striking a record high of Rs 1,024.75 ahead of Q4 results tomorrow, 28 May 2013.
Fortis Healthcare rose 1.15% after the company said that one of its step-down subsidiaries will complete the divestiture of its entire holding in Dental Corporation Holdings by 31 May 2013, in favour of Bupa. The announcement was made after market hours on Friday, 24 May 2013.
Wockhardt jumped 3.89% after the company reported turnaround in Q4 results. Wockhardt reported consolidated net profit of Rs 334.76 crore in Q4 March 2013, as against net loss of Rs 191.64 crore in Q4 March 2012. Wockhardt's consolidated total income from operations rose 26.36% to Rs 1485.50 crore in Q4 March 2013 over Q4 March 2012. The company announced Q4 results during trading hours today, 27 May 2013.
Wockhardt reported an exceptional item loss of Rs 10.72 crore in Q4 March 2013, as against loss of Rs 396 crore in Q4 March 2012.
Wockhardt's consolidated net profit galloped 365.15% to Rs 1594.12 crore on 28.93% growth in total income from operations to Rs 5609.42 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
There was an exceptional item gain of Rs 61.52 crore in FY 2013, as against loss of Rs 473.77 crore in FY 2012.
Wockhardt's board of directors at a meeting held today, 27 May 2013, recommended dividend of Rs 5 per share for FY 2013.
Bank stocks gained. State Bank of India (SBI) gained 0.49%. The bank reported 18.54% fall in net profit to Rs 3299.22 crore on 6.98% rise in total income to Rs 36330.87 crore in Q4 March 2013 over Q4 March 2012. The result was announced during market hours on Thursday, 23 May 2013.
SBI's ratio of net non-performing assets to net advances stood at 2.10% as on 31 March 2013, compared with 2.59% as on 31 December 2012 and 1.82% as on 31 March 2012.
The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 4.75% as on 31 March 2013, compared with 5.30% as on 31 December 2012 and 4.44% as on 31 March 2012.
HDFC Bank gained 1.92% to Rs 715.05. The stock had hit a record high of Rs 724 hit in intraday trade on 20 May 2013.
ICICI Bank rose 1.25% to Rs 1,219. The stock had hit 52-week high of Rs 1,234 in intraday trade on 21 May 2013. The bank after trading hours on 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.
As per the Q4 results calendar, Sun Pharmaceutical Industries, Power Grid Corporation of India, GAIL (India) and Hindalco Industries unveil Q4 results tomorrow, 28 May 2013. Tata Motors, ONGC, Cipla, NMDC and BPCL unveil Q4 results on 29 May 2013. DLF, M&M and Tata Power unveil Q4 results on 30 May 2013.
The market may remain volatile 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 on Thursday, 30 May 2013.
On a 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.
Global credit rating agency Standard & Poor's (S&P) on 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 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 stocks rose on Monday as Chinese Premier Li Keqiang said his country will rely on Germany to lead the euro out of its crisis and boost the global economy as European leaders begin to tackle soaring unemployment after three years of budget cuts. Key benchmark indices in France and Germany rose by 0.59% to 0.69%. UK markets remain closed today, 27 May 2013 for a holiday.
Asian stocks were mostly higher today, 27 May 2013. Key benchmark indices in China, Taiwan, Hong Kong and South Korea rose by 0.2% to 0.86%. Key benchmark indices in Singapore and Indonesia fell by 0.06% to 1.36%. Japan's Nikkei 225 slumped 3.22% on the yen's strength and further profit-taking after concerns about a rise in bond-market volatility helped stoke extreme swings late last week.
US financial markets remain closed today, 27 May 2013 for Memorial Day. US markets were mixed on Friday, 24 May 2013 as prospects of the Federal Reserve starting to reduce its bond-buying stimulus rattled a market trading at historic highs.
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