Key benchmark indices edged higher as the market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Wednesday, 30 October 2013. The market breadth, indicating the overall health of the market, was positive. The barometer index, the S&P BSE Sensex hit highest level in more than five years and was within a striking distance of hitting record high in late trade. The 50-unit CNX Nifty hit highest level in almost three years in late trade. The Sensex was provisionally up 107.83 points or 0.51%, off close to 65 points from the day's high and up about 150 points from the day's low.
Indian stocks gained for the third straight day in a row today, 31 October 2013.
Dr Reddy's Laboratories fell on profit booking after reporting strong Q2 result. Most bank stocks gained. State Bank of India (SBI) rose after the bank announced reduction in interest rates on bulk deposits (Rs 1 crore and above) across maturities. Bank of Baroda shrugged off weak Q2 result. Bank of India surged after strong Q2 earnings. Shares of realty major DLF edged higher in choppy trade after reporting Q2 result.
A bout of initial volatility was witnessed as key benchmark indices alternately swung between positive and negative zone. The Sensex regained the psychological 21,000 mark, after falling below that level in initial trade. Intraday volatility continued as key benchmark alternately moved between positive and negative zone in morning trade. The Sensex trimmed gains after hitting fresh intraday high in mid-morning trade. Key benchmark indices moved in a narrow range in positive zone in early afternoon trade. Key benchmark indices pared gains after hitting fresh intraday high in afternoon trade. The Sensex hit its highest level in more than five years and the 50-unit CNX Nifty hit its highest level in almost three years. The Sensex hovered in positive terrain in mid-afternoon trade. It trimmed gains after surging to hit fresh intraday high in late trade.
The market was volatile as traders rolled 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 contracts expired today, 31 October 2013.
The market sentiment was boosted by data showing that foreign funds made substantial purchases of Indian stocks on Wednesday, 30 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1016.77 crore on Wednesday, 30 October 2013, as per provisional data from the stock exchanges.
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As per provisional figures, the S&P BSE Sensex was up 107.83 points or 0.51% to 21,141.80. The index jumped 171.47 points at the day's high of 21,205.44 in late trade, its highest level since 10 January 2008. The index fell 41.99 points at the day's low of 20,991.98 in early trade.
The CNX Nifty was up 43.95 points or 0.7% at 6,295.65, as per provisional figures. The index hit a high of 6,309.05 in intraday trade, its highest level since 9 November 2010. The index hit a low of 6,235.90 in intraday trade
The total turnover on BSE amounted to Rs 2474 crore, higher than Rs 1951.05 crore on Wednesday, 30 October 2013.
The market breadth, indicating the overall health of the market, once again turned positive from negative. On BSE, 1,318 shares rose and 1,168 shares fell. A total of 171 shares were unchanged. The breadth has alternatively swung between positive and negative terrain since early afternoon trade.
Among the 30-share Sensex pack, 18 stocks rose and rest of them fell. Tata Steel (up 2.97%), Tata Power Company (up 2.42%) and GAIL (India) (up 2.01%), edged higher from the Sensex pack.
DLF rose 1.74% in choppy trade after reporting Q2 result. The company's consolidated net profit declined 28.05% to Rs 100 crore on 3% growth in revenue to Rs 2225 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Wednesday, 30 October 2013.
DLF's consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) almost remained flat at Rs 863 crore in Q2 September 2013 as against Rs 864 crore in Q2 September 2012.
DLF's consolidated net profit declined 45% to Rs 100 crore on 9% fall in revenue to Rs 2225 crore in Q2 September 2013 over Q1 June 2013. EBITDA declined 18% to Rs 863 crore in Q2 September 2013 over Q1 June 2013.
DLF said it has witnessed an enthusiastic response to its luxury development-Camellias in DLF 5, Gurgaon. In Q2 September 2013, the company sold approximately 0.09 million square feet (msf) of the project at an average realization of Rs 28,055 per sq. ft.
DLF has appointed the construction major L&T as the general contractor to build the luxury residential development - The Crest and Leighton Welspun, an Australian construction major as the general contractor to build luxury residential development - The Camellias. The execution of both the projects Crest and Camellias has commenced, DLF said.
With regard to the divestment of the non-core assets, DLF said it has closed the divestiture of the Wind business and Star Alubuild to Lixil. The company has also signed a share purchase agreement with Dewan Housing Finance for sale of shareholding in DLF Pramerica Life Insurance, which is currently awaiting regulatory approvals. Given the pipeline of divestitures, the company remains committed to reduce its net debt to Rs 17500 crore by end of FY 2014, DLF said.
DLF said it expects a slow absorption of product in the market amid current economic and high interest rate environment. Despite these adverse conditions, the company has managed to more than double it sales bookings in first half of FY 2014 compared to corresponding period of last year, DLF said. The company said it remains hopeful in achieving its sales booking target for the year. On the leasing front, the company has achieved leasing of 1 msf in first half of FY 2014 compared to 1.14 msf for the entire FY 2013.
Most bank stocks gained. ICICI Bank rose 1.96%. But, HDFC Bank fell 0.13%..
Bank of Baroda surged 10.76%, with the stock shrugging off weak Q2 result. The bank's net profit declined 10.24% to Rs 1168.10 crore on 9.38% increase in total income to Rs 10447.31 crore in Q2 September 2013 over Q2 September 2012. The bank announced the result during market hours.
Bank of Baroda (BoB)'s ratio of gross non-performing assets (NPAs) to gross advances increased to 3.15% as on 30 September 2013, from 2.99% as on 30 June 2013 and 1.98% as on 30 September 2012. The ratio of net NPAs to net advances increased to 1.86% as on 30 September 2013 from 1.69% as on 30 June 2013 and 0.82% as on 30 September 2012.
BoB's provisions and contingencies jumped 33.17% to Rs 860.83 crore in Q2 September 2013 over Q2 September 2012. Provision coverage ratio stood at 61.68% as on 30 September 2013.
BoB's deposits grew 18.81% to Rs 484931 crore as on 30 September 2013 from Rs 408149.50 crore as on 30 September 2012. Advances rose 16.31% to Rs 339855.30 crore as on 30 September 2013 from Rs 292180.90 crore as on 30 September 2012.
The bank's Capital Adequacy Ratio (CAR) as per Basel II norms stood at 12.32% as on 30 September 2013 as against 12.7% as on 30 June 2013 and 12.91% as on 30 September 2012. CAR as per Basel III norms stood at 12.07% as on 30 September 2013.
Allahabad Bank jumped 13.34% on decent Q2 result. The bank's net profit rose 17.76% to Rs 275.81 crore on 15.72% growth in total income to Rs 5303.06 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced during trading hours today, 31 October 2013.
Allahabad Bank's operating profit surged 43.78% to Rs 1154 crore in Q2 September 2013 over Q2 September 2012. Net interest income rose 11.49% to Rs 1309 crore. Net interest margin (NIM) stood at 2.75% in Q2 September 2013.
Allahabad Bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 4.94% as on 30 September 2013 as against 4.78% as on 30 June 2013 and 2.95% as on 30 September 2012. The ratio of net NPAs to net advances stood at 3.83% as on 30 September 2013 as against 3.87% as on 30 June 2013 and 2.1% as on 30 September 2012.
The bank's Capital Adequacy Ratio (CAR) as on 30 September 2013 stood at 11.07%.
Provision coverage ratio as on 30 September 2013 works out to 45.99%.
The bank's total deposits grew 11.38% to Rs 180396 crore as on 30 September 2013 from Rs 161957 crore as on 30 September 2012.
Bank of India vaulted 21.26% after net profit surged 105.98% to Rs 621.77 crore on 16.18% increase in total income to Rs 10339.55 crore in Q2 September 2013 over Q2 September 2012. Net interest income rose 15.07% to Rs 2527 crore and non-interest income rose 23.04% to Rs 1100 crore in Q2 September 2013 over Q2 September 2012. The result was announced during trading hours.
Bank of India (BoI)'s operating profit rose 13.43% to Rs 2103 crore in Q2 September 2013 over Q2 September 2012. Net interest income (NII) rose 15.07% to Rs 2527 crore in Q2 September 2013 over Q2 September 2012. Non-interest income grew 23.04% to Rs 1100 crore.
Global net interest margin (NIM) improved to 2.39% in Q2 September 2013 from 2.35% in Q2 September 2012. Domestic NIM improved to 2.93% in Q2 September 2013 from 2.7% in Q2 September 2012.
Global deposits grew 29.93% to Rs 432282 crore as on 30 September 2013 from Rs 332694 crore as on 30 September 2012. Advances rose 29.36% to Rs 336823 crore as on 30 September 2013 from Rs 260379 crore as on 30 September 2012.
CASA deposits rose 13.85% to Rs 95828 crore as on 30 September 2013 from Rs 84170 crore as on 30 September 2012.
Gross non-performing assets (NPA) ratio improved to 2.93% as on 30 September 2013 from 3.04% as on 30 June 2013 and 3.42% as on 30 September 2012. Net NPA ratio improved to 1.85% as on 30 September 2013 from 2.1% as on 30 June 2013 and 2.04% as on 30 September 2012.
Provision coverage ratio improved to 63.29% as on 30 September 2013 from 60.96% as on 30 September 2012.
The bank's Capital Adequacy Ratio (CAR) under Basel II norms stood at 11.3% as on 30 September 2013. CAR as per Basel III norms stood at 10.77% as on 30 September 2013 (including additional capital infusion of Rs 1000 crore approved by Government of India).
Canara Bank jumped 10.82%.
State Bank of India (SBI) rose 4.33%. The bank announced during trading hours today, 31 October 2013, that it has decided to revise its interest rates on bulk (Rs 1 crore and above) and retail term deposits (below Rs 1 crore) with effect from Friday, 1 November 2013. The bank has revised interest rate downwards on bulk deposits of all tenors. Interest rate on bulk term deposits for the period 1 year to less than 2 years has been reduced to 8.25% from 8.75%.
The bank has decided to increase interest rate on retail term deposits of maturity period of 180 days to 210 days to 7% from 6.8%.
SBI announced after market hours on Wednesday, 30 October 2013, that its central board has approved raising upto Rs 2000 crore through preferential allotment of equity shares in favour of the Government of India.
Dr Reddy's Laboratories fell 2.64% on profit booking after reporting strong Q2 result. The company's consolidated net profit jumped 76% to Rs 690.30 crore on 17% increase in revenue to Rs 3357.50 crore in Q2 September 2013 over Q2 September 2012. The result hit the market during trading hours.
Consolidated EBITDA (earnings before interest taxes depreciation and amortization) rose 27% to Rs 950 crore in Q2 September 2013 over Q2 September 2012.
The company said revenues from global generics segment rose 32% to Rs 2650 crore in Q2 September 2013 over Q2 September 2012, driven by growth in North America, Russia and other emerging markets. Revenues from the pharmaceutical services and active ingredients (PSAI) segment fell 19% to Rs 640 crore in Q2 September 2013 over Q2 September 2012.
Selling, general & administrative (SG&A) expenses, including amortization, rose 21% to Rs 970 crore in Q2 September 2013 over Q2 September 2012. The increase was primarily towards select brand building activities in the emerging market territories. SG&A expenses accounted for 29% to revenues in Q2 September 2013 compared with 27.8% to revenues in Q2 September 2012.
Research & Development (R&D) expenses rose 71% to Rs 300 crore, which is 9% to revenues in Q2 September 2013 compared with 6.1% to revenues in Q2 September 2012.
Titan Industries surged 4.15% after Q2 result. The company's net profit rose 3.7% to Rs 186.65 crore on 1.4% growth in income from operations to Rs 2258.29 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced during trading hours today, 31 October 2013.
Titan Industries said that the Watch and Eyewear businesses of the company, with a decent import content, continued to be affected by input cost increases and adverse currency movements. Despite the import cost challenge, the margins were well managed, Titan said.
The income for Watches was Rs 442.36 crore in Q2 September 2013 as compared to Rs 471.79 crore a year ago. On the other hand, jewellery business recorded an income growth of 4.3% to Rs 1798.07 crore in Q2 September 2013 over Q2 September 2012. Other businesses of the company comprising Precision Engineering, a B2B business, the Eyewear business and accessories grew by 17.2% in Q2 September 2013 over Q2 September 2012. The combined income of these businesses was Rs 114.07 crore in Q2 September 2013 as against Rs 97.37 crore in Q2 September 2012.
Mr. Bhaskar Bhat, MD, Titan Industries said, "This was a challenging quarter on account of weak consumer sentiments, particularly for discretionary purchase categories like Watches and Jewellery. The continued inflation and the weak rupee are affecting demand as well as costs and interest rates that continued to be at high levels. Regulatory issues on gold created a high demand supply gap in the market. The first half numbers for Titan Company looks healthy on the back of a good first quarter. Given the good monsoon across the country and a likely change in consumer sentiment driven by stock market movement, we are hopeful of a good second half".
In the foreign exchange market, the rupee edged lower against the dollar, hurt by broad gains in the dollar. The partially convertible rupee was hovering at 61.3850, compared with its close of 61.235/245 on Wednesday, 30 October 2013. The dollar rose against a basket of six major currencies after the Federal Reserve fueled bets it may start paring stimulus sooner than previously forecast.
European stocks edged lower on Thursday, 31 October 2013, after the Federal Reserve fueled bets it may start paring stimulus sooner than previously forecast. Key benchmark indices in France, Germany and UK shed 0.01% to 0.39%.
Asian stocks fell on Thursday, 31 October 2013, after the Federal Reserve fueled bets it may start paring stimulus sooner than previously forecast. Key benchmark indices in China, Japan, Hong Kong, Taiwan, Indonesia, Singapore, and South Korea shed 0.18% to 1.43%.
The Bank of Japan stuck with its campaign of unprecedented monetary easing as Prime Minister Shinzo Abe seeks to jolt the nation out of a 15-year deflationary malaise. Governor Haruhiko Kuroda's board maintained a pledge to expand the monetary base by 60 trillion to 70 trillion yen ($711 billion) a year, in a decision released in Tokyo today.
Trading in US index futures indicated that the Dow could fall 30 points at the opening bell on Thursday, 31 October 2013. US stocks fell on Wednesday, 30 October 2013, as investors assessed a Federal Reserve statement that largely matched forecasts, but also had some Fed watchers saying a policy change could come sooner than expected.
The Federal Reserve decided to press on with $85 billion in monthly bond purchases, saying it needs to see more evidence that the economy will continue to improve. "The recovery in the housing sector slowed somewhat in recent months," the Federal Open Market Committee (FDTR) said Wednesday at the end of a two-day meeting in Washington. "Fiscal policy is restraining economic growth. Taking into account the extent of federal fiscal retrenchment over the past year, the committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program as consistent with growing underlying strength in the broader economy," the committee said. The Fed repeated that it will "await more evidence that progress will be sustained before adjusting the pace of its purchases." The Fed's purchases will remain divided between $40 billion a month of mortgage bonds and $45 billion in Treasury securities.
US private-sector employers hired the fewest workers in six months in October while tepid domestic demand kept inflation benign last month, suggesting the economy was still in need of stimulus from the Federal Reserve. Employers in the private sector added 130,000 new jobs to their payrolls this month, the ADP National Employment Report showed on Wednesday. That was the lowest reading since April.
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