Key benchmark indices snapped four day winning streak as weakness in European stocks hit investor sentiment adversely. The barometer index, the S&P BSE Sensex, was provisionally down 123.50 points or 0.64%, up close to 35 points from the day's low and off about 100 points from the day's high. The market breadth, indicating the overall health of the market, was negative. Index heavyweight Reliance Industries (RIL) dropped. Index heavyweight and cigarette major ITC was marginally lower.
ICICI Bank dropped on profit taking after the bank reported good Q4 results. Idea Cellular surged to hit 52-week high after strong Q4 results. Maruti Suzuki India jumped after the car major reported strong Q4 March results. LIC Housing Finance jumped on strong Q4 results. Castrol India gained after the company's board proposed reduction of capital. Realty stocks reversed intraday gains. Jindal Steel and Power (JSPL) slumped on weak Q4 results.
The market edged lower in early trade. The Sensex hovered in negative terrain in morning trade. The market trimmed losses after hitting fresh intraday low in mid-morning trade. The Sensex continued to hover in negative terrain in early afternoon trade. Key benchmark indices hovered in red in afternoon trade. The Sensex weakened once again after paring intraday losses in mid-afternoon trade. The market trimmed losses after hitting fresh intraday low in late trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1449.70 crore on Thursday, 25 April 2013, as per provisional data from the stock exchanges.
As per provisional figures, the S&P BSE Sensex was down 123.50 points or 0.64% to 19,283.35. The index declined 157.10 points at the day's low of 19,249.75 in late trade. The index fell 21.90 points at the day's high of 19,384.95 in early trade.
The CNX Nifty was down 43.90 points or 0.74% to 5,872.40, as per provisional figures. The index hit a high of 5,907.05 in intraday trade. The index hit a low of 5,860.50 in intraday trade.
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The total turnover on BSE amounted to Rs 2253 crore, lower than Rs 2457.36 crore on Thursday, 25 April 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,340 shares declined and 931 shares rose. A total of 136 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks declined while rest of them rose.
Index heavyweight Reliance Industries (RIL) fell 3.19% to Rs 793.15. The scrip hit high of Rs 824.85 and a low of Rs 789.80. The company's telecom arm -- Reliance Jio Infocomm -- and Bharti Airtel on Tuesday, 23 April 2013, signed an agreement for international data connectivity under which Bharti will provide Reliance Jio data capacity on its i2i submarine cable. i2i connects India to Singapore and is wholly owned by Bharti. Reliance Jio will utilize a dedicated fiber pair on i2i. The high speed link will enable Reliance Jio to extend its network and service reach to customers across Asia Pacific region.
Earlier, at the time of announcement of its Q4 results, RIL in mid-April 2013 said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the net 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
Shares of Bharti Airtel surged 4.06%, with the stock advancing for the second straight day.
Index heavyweight and cigarette major ITC declined 0.2% to Rs 319.50 on profit booking. The scrip hit high of Rs 319.75 and a low of Rs 316.75. The stock had hit record high of Rs 323.85 in intraday trade on Thursday, 25 April 2013. West Bengal chief minister Mamata Banerjee on Wednesday, 24 April 2013, announced a 10% hike in the value-added tax (VAT) on cigarettes to 25% from 15% to raise money for a relief fund for those depositors who have lost money in the Saradha chit fund scam.
Earlier, 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, which was unveiled on 28 February 2013.
Jindal Steel and Power (JSPL) slumped 4.77% on weak Q4 results. The company's consolidated net profit after tax and before minority interest and share of profit/loss of associates declined 35% to Rs 752.75 crore on 3% growth in income from operations to Rs 5648.44 crore in Q4 March 2013 over Q4 March 2012. The company announced the results after market hours on Thursday, 25 April 2013.
JSPL's consolidated net profit after exceptional item declined 27.25% to Rs 2911.62 crore on 9% growth in income from operations to Rs 19806.78 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). Net profit before exceptional item declined 14% to Rs 3485.74 crore in FY 2013 over FY 2012.
JSPL said that it has maintained a double digit growth in its steel business despite a global economic slowdown and subdued steel market. The company with its relentless commitment to operational excellence achieved 100% utilization of steel and pelletisation capacity, JSPL said in a statement. Several new countries and customers were added to expand the market share of JSPL, the company said. New sources of raw material were established and made operational, it added. The company, which hitherto focused mainly on B to B business, made an impressive foray into the retail market for its standard products, JSPL said. The company said it has also reorganized its operations to bring more focus on individual business segments and business units. Specific attention has been paid to strengthen the internal process and systems, the company added. As the organizations steps into 2013-14, it is ready and well poised for an orbital jump to a much larger volume of activity as envisaged in the company's Vision 2020 plan, JSPL said in a statement. JSPL's number of customers increased to 2,758 in FY 2013 from 2,139 in FY 2012.
JSPL said its pallet production has reached its full capacity. Exports by value surged 30% in FY 2013. The company said that it has achieved impressive gain in market share particularly in long products segment. The production of coking coal started in Mozambique.
The company said it has achieved 100% liquid steel capacity. Production of steel rose 11% in FY 2013. Sales by value rose 12.2% in FY 2013.
JSPL said that the company is all set to increase its steel capacity from 3.5 MTPA to 7 MTPA in 2013-14. The company also said it plans to double its power production capacity to 4,969 megawatts (MW) during 2013-14.
JSPL's board of directors at a meeting held on Thursday, 25 April 2013, recommended dividend of Rs 1.60 per share for FY 2013.
Maruti Suzuki India surged 5.24% to Rs 1,673 after the company reported strong Q4 results. The company said its net profit, excluding the effect of the merger of Suzuki Powertrain India (SPIL), jumped 79.8% to Rs 1147.50 crore on 9.4% rise in net sales to Rs 12566.60 crore in Q4 March 2013 over Q4 March 2012. Suzuki Powertrain India was merged with the company during the year ended 31 March 2013 (FY 2013) and the effect of the merger was given in the books of accounts in Q4 March 2013. Maruti announced the results during market hours today, 26 April 2013.
Maruti said that the increase in net profit during the quarter was on account of higher sales of new models such as Ertiga, DZire and Swift, cost reduction and localization efforts and the benefit of a favourable exchange rate.
Siemens declined 2.73% on weak Q2 results. The company's net profit fell 89.94% to Rs 29.94 crore on 26.27% decline in total income to Rs 2968.03 crore in Q2 March 2013 over Q2 March 2012. The company said that the difference in net profit is primarily accounted for by a charge of Rs 90 crore in the Q2 March 2013 on account of revised estimates of revenues, costs and project related provisions as against credit during Q2 March 2012 of Rs 265.98 crore. The company's new orders rose 52% to Rs 2814.10 crore in Q2 March 2013 over Q2 March 2012. The company announced Q2 results during market hours today, 26 April 2013.
Dr. Armin Bruck, Managing Director, Siemens said, "The results of the current quarter bear the impact of the prolonged slowdown in the economy. The significant improvement in new orders is positive. However, profits are under pressure due to continued delays by our customers in project completion leading to updates in project costs. Further, the volatility in commodity and foreign exchange rates which, when marked to market, have also resulted in additional costs. The company is continuing its measures to realise synergies from the acquisitions made in the last couple of years to optimise further its cost position to increase its competitiveness in these challenging times."
Among the highlights of the second quarter, Siemens IC Sector won an order worth over Rs 350 crore to supply traction motors for Diesel Locomotive Works, Siemens Energy Sector won Rs 100 crore order from BSRM (the highest private sector-funded GIS project in Bangladesh) and Siemens Industry Sector won a significant order worth Rs 97 crore from Surana Industries for its pelletization plan. Siemens Healthcare Sector installed India's firth simultaneous PET-MRI at Indraprastha Apollo Hospital's PET Suite, which features PET-MRI and ultra HD PET CT under one roof.
During Q2 March 2013, the company completed the amalgamation of Winergy Drive Systems India.
ICICI Bank slumped 2.98% after Q4 results. The bank's net profit rose 21% to Rs 2304 crore on 10.26% rise in total income to Rs 12573.52 crore in Q4 March 2013 over Q4 March 2012. The bank announced Q4 results during market hours today, 26 April 2013.
The bank's gross non-performing asset ratio declined to 2.68% as on 31 March 2013 from 3.04% as on 31 March 2012. The bank's net non-performing asset ratio was 0.64% as on 31 March 2013 compared to 0.62% as on 31 March 2012. Net non-performing assets as on 31 March 2013 were Rs 2234 crore compared to Rs 2185 crore as on 31 December 2012 and Rs 1894 crore as on 31 March 2012. The bank's provision coverage ratio computed in accordance with the RBI guidelines was 76.8% as on 31 March 2013. Net loans to companies whose facilities have been restructured were Rs 5315 crore as on 31 March 2013 compared to Rs 4562 crore as on 31 December 2012 and Rs 4554 crore as on 31 March 2012.
Net interest income increased 22% to Rs 3803 crore in Q4 March 2013 from Rs 3105 crore in Q4 March 2012. The cost-to-income ratio reduced to 40% in Q4 March 2013 from 41.6% in Q4 March 2012.
Provisions were at Rs 460 crore in Q4 March 2013 compared to Rs 469 crore in Q4 March 2012.
Total advances increased by 14% year-on-year to Rs 290249 crore as on 31 March 2013 from Rs 253728 crore as on 31 March 2012. The year-on-year growth in domestic advances was 18%.
As on 31 March 2013, savings account deposits were Rs 85651 crore and current account deposits were Rs 36926 crore. During Q4 March 2013, savings account deposits increased by Rs 4188 crore and current account deposits increased by Rs 1252 crore.
The bank's current and savings account (CASA) ratio improved to 41.9% as on 31 March 2013 compared to 40.9% as on 31 December 2012. The average CASA ratio improved to 38.1% during Q4 March 2013 compared to 37.4% in Q3 December 2012.
The bank's capital adequacy as on 31 March 2013 as per Reserve Bank of India's guidelines on Basel II norms was 18.74% and Tier-1 capital adequacy was 12.80%, well above RBI's requirement of total capital adequacy of 9.0% and Tier-1 capital adequacy of 6%.
ICICI Bank's board of directors has recommended a dividend of Rs 20 per share for the year ended 31 March 2013. The board of directors has also recommended a dividend of Rs 100 per preference share on 350 preference shares of the face value of Rs. 1 crore each for the year ended 31 March 2013.
Idea Cellular surged 6.11% to Rs 123.35 on strong Q4 results. The stock hit 52-week high of Rs 128.70 in intraday trade today, 26 April 2013. The company said after market hours on Thursday, 25 April 2013, that consolidated net profit rose 28.95% to Rs 308.18 crore on 12.88% rise in total income to Rs 6061.38 crore in Q4 March 2013 over Q4 March 2012.
On standalone basis, the net profit rose 33.78% to Rs 254.16 crore on 12.67% growth in total income to Rs 5965.46 crore in Q4 March 2013 over Q4 March 2012.
The company said that it has returned strongly to its upwards revenue trajectory, with 8.6% sequential quarterly growth in Q4 March 2013 on the back of 5% QoQ growth in Q3 December 2012, reaffirming the increasing consumer preference for brand Idea. The company said it maintains its enviable track record of being the 'fastest growing large Indian mobile operator' with gross revenue of Rs 22594.90 crore for the year ended 31 March 2013 (FY 2013), an annual growth of 14.8%.
The high revenue growth is led by sharp expansion of Voice Minutes at 8.5% to 143.4 billion, on sequential quarterly basis, indicating consumer demand for mobile telephony is robust, Idea said in a statement. The VLR growth is back with the company clocking 8.3 million incremental quarterly growth and delivering over 40% of industry incremental VLR in first 11 months of FY 2013 (as per TRAI February 2013 report). Idea now serves 121.6 million quality customers.
Contrary to expectations, the ARPM (Average Realised Rate per Minute) was nearly flat at 41.2p against 41.1p in Q3 December 2012. While the challenges on Voice ARPM continue, the company improved 'Non Voice Revenue' to 15.2% (14.6% in Q3) led by data growth.
The Q4 March 2013 had the highest data adoption by Idea customers with 4.5 million sequential quarter addition, as the EoP base of data users grew to 26.2 million, now contributing 6.6% to service revenue, Idea said. The data volume expanded by 13.8% to 11.4 billion MB (10 billion MB in Q3) and data realised rate improved by 9.5% to 33.9p per MB in Q4 (31p in Q3). The active 3G subscriber base for the company stands at 5.1 million, helping overall 2G+3G data revenue growth on sequential quarterly basis by 24.6% and data ARPU reaching to Rs 55.
The overall exponential revenue growth has translated into EBITDA of Rs 1503.70 crore, margin improvement by 1.2% to 24.7%, inspite of accounting for one-off regulatory charge of Rs 76 crore reflecting in 'License and WPC Charges'. The EBITDA increased 23.8% to Rs 5371.40 crore in FY 2013 over FY 2012.
Idea Cellular said that that company generated healthy cash profit of Rs 4696.80 crore in FY 2013, registering a growth of 30.2% over FY 2012. After 16 years of start of operations, the board of Idea has recommended its maiden dividend of 3%.
The company said that it continues to strengthen its competitive standing by investing in long term value creators -- the company launched 2,432 GSM sites and 1,595 3G sites, expanded optical fibre network to 74,000 km and strengthened its presence in NLD, ILD, ISP, Data Services and Smartphone Device business. Idea Cellular said that the company is the biggest net gainer nationally in the Mobile Number Portability program, a strong indicator of the popular appeal of Idea mobile services.
IDBI Bank rose 0.85%, with the stock reversing intraday losses. The bank said after market hours on Thursday, 25 April 2013, that its net profit fell 28.15% to Rs 554 crore on 9.87% growth in total income to Rs 7544 crore in Q4 March 2013 over Q4 March 2012.
IDBI Bank's operating profit rose 32.39% to Rs 1594 crore in Q4 March 2013 over Q4 March 2012. Net interest income (NII) grew by 18.92% to Rs 1440 crore in Q4 March 2013 over Q4 March 2012. Fee based income rose 34% to Rs 875 crore in Q4 March 2013 over Q4 March 2012.
Total business (deposits and advances) as of 31 March 2013 stood at Rs 423423 crore as against Rs 391065 crore as of 31 March 2012, registering a growth of 8.27%. Deposits increased to Rs 227116 crore at end-March 2013 from Rs 210493 crore at end-March 2012, with a growth of 7.9%. Advances increased by 8.71% to Rs 196306 crore at end March 2013 from Rs 180572 crore as at end March 2012. As of 31 March 2013, aggregate assets stood at Rs 322769 crore as against Rs 290316 crore as on 31 March 2012, registering a growth of 11.18%
LIC Housing Finance surged 7.34% on strong Q4 results. The company's net profit rose 24.66% to Rs 316.15 crore on 22.83% growth in total income to Rs 2074.74 crore in Q4 March 2013 over Q4 March 2012.
Castrol India rose 3.43%. Castrol India's board of directors at a meeting held today, 26 April 2013, proposed a scheme of reduction of the company's share capital u/s 100 of the Companies Act, 1956 i.e. to reduce the face value of the company's equity shares from Rs 10 per share to Rs 5 per share and return the same to the shareholders.
Castrol India's net profit rose 1.13% to Rs 124.30 crore on 1.14% decline in total income to Rs 805.90 crore in Q1 March 2013 over Q1 March 2012.
Realty stocks reversed intraday gains. DLF, HDIL, D B Realty and Unitech dropped by 1.53% to 6.41%.
The focus of the market is on Q4 results. IDFC announces Q4 results on 1 May 2013. Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on 3 May 2013. Grasim and Jaiprakash Associates unveil Q4 results on 4 May 2013. HDFC unveils Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints announces Q4 results on 9 May 2013. NTPC announces Q4 results on 10 May 2013. Dr Reddys Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. BPCL announces Q4 results on 29 May 2013. M&M announces Q4 results on 30 May 2013.
The Prime Minister's Economic Advisory Council (PMEAC) in a report released on 23 April 2013 projected 6.4% growth in India's GDP for the current fiscal year 2013/14, higher than an estimated 5% growth for the fiscal year 2012/13. In 2013-14, the headline WPI inflation is expected to be around 6%, compared with provisional figure at 5.96% at the end of 2012-13, the PMEAC said. The net FDI inflow is expected at $24 billion in 2013-14 from an estimated $18 billion in 2012-13. In contrast, FII inflows are seen sliding to $18 billion in 2013-14 from an estimated $24 billion in 2012-13, the PMEAC said.
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. 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 on 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed.
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 government has lined up a number of key bills for consideration and passing during the ongoing 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.
European stock markets edged lower on Friday with investors staying cautious ahead of a closely watched report on US economic growth in the first quarter. Key benchmark indices in UK, France and Germany were down by 0.42% to 1.1%.
The European Central Bank's (ECB) Governing Council meets in Bratislava on 2 May 2013 to review euro area interest rates. The ECB is seen cutting euro area interest rates by 25 basis points to a record low of 0.5% amid the euro zone's worsening economic outlook and subdued inflation.
Most Asian stocks edged lower on Friday. Key benchmark indices in China, Indonesia, Japan and South Korea fell by 0.3% to 0.97%. Key benchmark indices in Hong Kong, and Singapore rose by 0.33% to 0.67%. Taiwan's Taiwan Weighted was flat.
The Bank of Japan held off on any new policy moves after a monetary policy meeting today, 26 April 2013, in the wake of major new easing initiatives at its previous meeting. In an unusually terse, two-sentence statement, the Japanese central bank only said that it "will conduct money-market operations so that the monetary base will increase at an annual pace of about 60 [trillion]-70 trillion yen," or roughly $610 billion to $710 billion, unchanged from its previous target.
Trading in US index futures indicated that the Dow could fall 32 points at the opening bell on Friday, 26 April 2013. US stocks edged higher on Thursday, buoyed by corporate-earnings reports and data showing a sharp drop in weekly jobless claims.
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