Key benchmark indices sharply pared gains after hitting fresh intraday highs in afternoon trade. The S&P BSE Sensex wiped off all gains and turned negative, while the CNX Nifty managed to hover in the positive zone. The barometer index, the S&P BSE Sensex, was down 10.71 points or 0.06%, off close to 138 points from the day's high and up about 9 points from the day's low. Index heavyweight and cigarette maker ITC edged lower in choppy trade. Index heavyweight Reliance Industries (RIL) hovered in negative zone. The market breadth was positive. Auto stocks were mostly higher. Many pharma stocks gained on renewed buying.
A bout of volatility was witnessed in early trade as key benchmark indices trimmed gains after a firm start triggered by firm Asian stocks. The market further pared intraday gains to hit fresh intraday low in morning trade. The market regained positive zone after slipping into the red for a brief period in mid-morning trade. The market extended intraday gains to hit fresh intraday high in early afternoon trade. Key benchmark indices sharply pared gains after hitting fresh intraday highs in afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 163.95 crore on Monday, 8 April 2013, as per provisional data from the stock exchanges.
At 13:15 IST, the S&P BSE Sensex was down 10.71 points or 0.06% to 18,427.07. The index jumped 128 points at the day's high of 18565.56 in afternoon trade, its highest level since 4 April 2013. The index fell 20 points at the day's low of 18,418.21 in afternoon trade.
The CNX Nifty was up 22.35 points or 0.40% to 5,565.30. The index hit a high of 5,603.05 in intraday trade, its highest level since 4 April 2013. The index hit a low of 5,555.45 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,102 shares rose and 915 shares fell. A total of 128 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks gained while rest of them fell. Jindal Steel & Power (up 2.92%), Larsen & Toubro (up 2.28%), ICICI Bank (up 1.86%), NTPC (up 1.35%), TCS (up 1.35%), HDFC (up 1.33%), Tata Steel (up 1.29%) and Sterlite Industries (India) (up 1.03%), edged hgiher from the Sensex pack.
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Wipro (down 11.48%), Bharti Airtel (down 1.51%), ONGC (down 1.10%), Dr. Reddy's Laboratories (down 1.04%), Infosys (down 0.84%), Hindustan Unilever (down 0.73%), Bhel (down 0.69%) and GAIL (India) (down 0.50%), edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) fell 0.58% at Rs 784.60. The scrip hit high of Rs 795.35 and a low of Rs 782.65 so far during the day. Shares of Reliance Communications fell 0.61%. Reliance Jio Infocomm and Reliance Communications (RCom) on 2 April 2013 announced the signing of a definitive agreement for approximately Rs 1200 crore as one time indefeasible right to use (IRU) fees for sharing RCom's nationwide inter-city fiber optic network infrastructure. Reliance Jio Infocomm will utilize multiple fiber pairs across RCom's 1.2 lakh kilometres inter-city fiber optic network to provide a robust and future proof backbone for rolling out its state-of-the-art 4G services. As per the agreement, RCom will in turn have reciprocal access to optic fiber infrastructure to be built by Reliance Jio Infocomm in the future.
The agreement provides for joint working arrangements to be put in place immediately for upgradation of the optic fiber network to ensure seamless delivery of next generation services.
Index heavyweight and cigarette major ITC fell 0.94% to Rs 290.15. The scrip hit high of Rs 295.30 and a low of Rs 289.50 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.
Auto stocks were mostly higher. Maruti Suzuki India rose 1.20% on hopes that a recent weakness in yen currency would improve the company's margins by reducing the costs of importing auto parts from Japan.
The yen pushed deeper into multi-year lows against the dollar and euro on Tuesday, 9 April 2013. The dollar rose to as high as 99.67 yen on trading platform EBS, the greenback's strongest level versus the yen since May 2009. The dollar later pulled back on profit-taking and last stood at 99.23 yen, down 0.2% on the day. The euro hit its highest since January 2010 against the yen of 129.935 yen.
Maruti Suzuki imports raw materials from its Japanese parent Suzuki Motor. It also pays annual royalty on sales to the Japanese parent.
Maruti announced during market hours on Tuesday, 2 April 2013, 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
Tata Motors rose 2.69%. The company's total sales (including exports) of Tata commercial and passenger vehicles in March 2013 were 72,712 vehicles. The company's domestic sales of Tata commercial and passenger vehicles for March 2013 were 69,160 units. Cumulative sales (including exports) for the company were 8.10 lakh units in FY 2013. Tata Motors announced the monthly sales data on 1 April 2013.
Ashok Leyland rose 0.90%. The company reported a 2% decline in total sales at 14,020 units in March 2013 over March 2012. However, sales of small commercial vehicle 'DOST' spurted 96% to 4,325 units in March 2013 from 2,211 units sold in March 2012.
Mahindra & Mahindra (M&M) rose 1.07%. M&M's total automobile sales rose 11% to 51,904 units in March 2013 over March 2012. The company's domestic sales rose 11% to 49,225 units in March 2013 over March 2012. Exports for the month of March 2013 stood at 2,679 units. Sales of passenger vehicles (which includes UVs and Verito) rose 13% to 25,847 units in March 2013 over March 2012. Sales of 4 wheeler commercial segment, which includes the passenger and load vehicles, jumped 17% to 17,212 units in March 2013 over March 2012. Sales of 3-wheelers declined 5% to 4,831 units in March 2013 over March 2012. M&M announced the monthly sales data during trading hours Monday, 1 April 2013.
The company's domestic tractor sales declined 2.31% to 15,551 units in March 2013 over March 2012. The company's total tractor sales declined 0.43% to 17,330 units in March 2013 over March 2012. Exports jumped 20% at 1,779 units in March 2013 over March 2012. M&M announced the monthly tractor sales data during trading hours Monday, 1 April 2013. M&M said that the company maintained its leadership position in the Indian tractor industry during the year ended 31 March 2013 (FY 2013).
Bike makers were mixed. Bajaj Auto was down marginally by 0.06% at 1,703.05. The company announced during market hours on 2 April 2013, that 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.
However, shares of Hero MotoCorp rose 1.01%.
TVS Motor Company fell 9.16% on profit booking. Shares of TVS Motor had surged 24.92% in the preceding four trading sessions to Rs 39.85 on 8 April 2013 from a recent low of Rs 31.90 on 2 April 2013. The rally caught momentum after the company during market hours on Monday, 8 April 2013, announced signing a long-term cooperation agreement with BMW Motorrad to develop and produce a new series of motorcycles that will cater to the segment below 500 cubic centimeters (cc).
Many pharma stocks gained on renewed buying. Glenmark Pharmaceuticals (up 2.01%), Divi's Laboratories (up 1.50%), Aurobindo Pharma (up 1.44%), Biocon (up 1.39%), Cipla (up 1.27%), Strides Arcolab (up 0.85%), Lupin (up 0.66%), Wockhardt (up 0.63%), Sun Pharmaceutical Industries (up 0.62%), Ipca Laboratories (up 0.51%), GlaxoSmithKline Pharmaceuticals (up 0.18%) and Cadila Healthcare (up 0.15%), edged higher.
L&T Finance Holdings was down 0.47% at Rs 73.50. The company announced during market hours today, 9 April 2013, that a meeting of the respective boards of directors of the material subsidiaries of the company i.e. L&T Finance and L&T Infrastructure Finance Company will be held on 23 April 2013 and 24 April 2013 respectively, inter alia, to consider and approve the audited financial results for the financial year ended 31 March 2013.
The upside on the domestic bourses may be capped as 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 will 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 next major trigger for the market is Q4 March 2013 results. The Q4 March 2013 corporate earnings season will begin around mid-April 2013. Infosys announces Q4 results on Friday, 12 April 2013. Reliance Industries (RIL) announces Q4 results on 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. 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. HDFC announces Q4 results on 8 May 2013. Dr. Reddys Laboratories announces Q4 results on 14 May 2013.
On the macro front, the government will unveil industrial production data for February 2013 on Friday, 12 April 2013. Industrial production had risen 2.4% in January 2013, as against a contraction of 0.5% in December 2012.
The government will unveil data on the combined consumer price index for urban and rural India for March 2013 on 12 April 2013. Inflation based on the combined consumer price index for urban and rural India had edged up to 10.91% in February 2013, from 10.79% in January 2013.
The government will unveil data on the wholesale price index (WPI) for March 2013 on 15 April 2013. The annual rate of inflation, based on the monthly wholesale price index (WPI), edged up to 6.84% in February 2013 from 6.62% in January 2013.
The India Meteorological Department will issue its initial forecast of 2013 southwest monsoon in this month.
The Reserve Bank of India (RBI) Governor D. Subbarao on 6 April 2013 said that the high fiscal deficit is a problem because it exacerbates inflation and impedes monetary policy transmission. The 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.
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 Budget Session of the Parliament ends on 10 May 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.
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 markets were trading higher, adding to the previous session's gains, as a strong start of the US earnings season and softer Chinese inflation data lifted investor sentiment. Key benchmark indices in UK, France and Germany were up by 0.30% to 0.57%.
Most Asian markets advanced Tuesday to cheer benign inflation data from China and a solid start to the U.S. earnings season. Key benchmark indices in China, South Korea, Hong Kong, Indonesia and Singapore rose by 0.11% to 0.81%. Taiwan's Taiwan Weighted fell 0.31%. Japan's Nikkei Average was flat.
A report in China showed consumer prices last month in the world's second-largest economy rose less than economists forecast. China's consumer price index rose 2.1% in March 2013 from a year earlier. The result was significantly lower than February's rise of 3.2%, but was above January's 2% inflation rate.
Growth in developing Asia is seen gaining momentum this year, powered by rising domestic consumption and intra-regional trade, but authorities need to ward off risks of inflation and asset bubbles arising from strong capital inflows, the Asian Development Bank (ADB) said. Tensions over long-standing border disputes in Asia, deepening austerity fatigue in the euro zone and political risks linked to wrangling over the US debt ceiling are the main threats to the region's near-term outlook, the Manila-based development lender said on Tuesday in its latest regional outlook report for 2013.
The region needs to put up safeguards against the buildup of asset bubbles and possible withdrawal of huge liquidity that has spilled over to the region following monetary policy stimulus in developed economies, the report said, adding that macroprudential policy must be reinforced when necessary. Developing Asia - comprised of 45 countries in Central, East, South, and Southeast Asia and the Pacific - is forecast to grow 6.6% this year and 6.7% in 2014, the ADB said.
Trading in US index futures indicated a flat opening of US stocks on Tuesday, 9 April 2013. US stocks ended a volatile session higher on Monday as investors looked ahead to an earnings season expected to show modest growth despite concerns about the economy's health.
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