Key benchmark indices trimmed intraday gains to hit fresh intraday low in mid-morning trade after the Supreme Court said that sharing information by the Central Bureau of Investigation (CBI) with the government on coal block allocation scam has shaken the entire process. The apex court began hearing the case on Tuesday. The barometer index, the S&P BSE Sensex, was up 77.88 points or 0.4%, off about 155 points from the day's high and up close to 5 points from the day's low.
Index heavyweight and cigarette major ITC edged higher in choppy trade. Index heavyweight Reliance Industries (RIL) extended initial losses. The market breadth, indicating the overall health of the market, was positive.
FMCG major Hindustan Unilever (HUL) surged over 16% to hit record high after the company's foreign parent, Unilever PLC announced open offer to acquire 48.70 crore shares, or 22.52% stake in Hindustan Unilever at substantial premium to the ruling market price. Bharti Infratel fell on profit booking after reporting strong Q4 results. Pharma stocks edged higher in renewed buying.
The market surged in early trade. The barometer index, the S&P BSE Sensex hit its highest level in 16-1/2 weeks. The 50-unit CNX Nifty hit its highest level in over 17 weeks. The market held firm in morning trade. Key benchmark indices trimmed intraday gains to hit fresh intraday low in mid-morning trade after the Supreme Court said that sharing information by the Central Bureau of Investigation (CBI) with the government on coal block allocation scam has shaken the entire process.
Foreign institutional investors (FIIs) bought shares worth a net Rs 620.38 crore on Monday, 29 April 2013, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 77.88 points or 0.4% to 19,465.38. The index surged 235.18 points at the day's high of 19,622.68 in early trade, its highest level since 15 March 2013. The index gained 71.25 points at the day's low of 19,458.75 in mid-morning trade.
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The CNX Nifty was up 11.40 points or 0.19% to 5,915.50. The index hit a high of 5,962.30 in intraday trade, its highest level since 11 March 2013. The index hit a low of 5,912.85 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 924 shares advanced and 711 shares declined. A total of 105 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks rose while rest of them fell.
Index heavyweight Reliance Industries (RIL) declined 0.66% to Rs 787.40. The scrip hit high of Rs 796.70 and a low of Rs 786.50 so far during the day. 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 next 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.
Index heavyweight and cigarette major ITC rose 1.59% to Rs 329.50. The stock hit record high of Rs 335.90 in intraday today, 30 April 2013. The stock hit low of Rs 325 in intraday today, 30 April 2013. West Bengal chief minister Mamata Banerjee on 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.
FMCG major Hindustan Unilever (HUL) surged 16.04% to Rs 578.55. The stock hit record high of Rs 597 in intraday trade today, 30 April 2013. The company's foreign parent Unilever PLC today, 30 April 2013, announced open offer to acquire additional 48.70 crore shares, or 22.52% stake in Hindustan Unilever at Rs 600 per share.
As on 31 March 2013, foreign promoters held 52.48% stake in HUL. After the open offer, holding of foreign promoters will rise to 75% in HUL.
HUL stock had vaulted 6.98% to Rs 497.60 on Monday on good Q4 results. HUL's net profit before exceptional items rose 18% to Rs 781 crore on 12.13% growth in total income from operations to Rs 6465.81 crore in Q4 March 2013 over Q4 March 2012. The company announced the Q4 results during market hours on Monday, 29 April 2013. While commodity costs were relatively benign during the quarter, competitive intensity remained at high levels, HUL said. The company said it continued to invest behind its brands. The company's expenditure on Advertising and Promotions (A&P) rose by Rs 144 crore in Q4 March 2013. Despite this step up, profit before interest and tax (PBIT) grew 17% and PBIT margin improved by 60 bps, the company said.
HUL said that during the quarter, the domestic consumer business grew at 13% with strong 6% underlying volume growth. Both Home and Personal Care (HPC) and Foods and Beverages (F&B) registered double digit growth in Q4 March 2013, the company said in a statement.
Bharti Infratel fell 0.56% on profit taking after reporting strong Q4 results. Shares of Bharti Infratel had witnessed a pre-result rally. The stock had rallied 9.41% to settle at Rs 178.90 on Monday, 29 April 2013, from Rs 163.50 on 16 April 2013. The company's consolidated net profit surged 34% to Rs 287 crore on 11% growth in revenue to Rs 2674 crore in Q4 March 2013 over Q4 March 2012. The company announced Q4 results during trading hours today, 30 April 2013.
Bharti Infratel's consolidated earnings before interest, taxation, depreciation, and amortization rose 11% to Rs 1008 crore in Q4 March 2013 over Q4 March 2012. Operating free cash flow declined 11% to Rs 494 crore in Q4 March 2013 over Q4 March 2012, on account of higher capital expenditure (capex) in Q4 March 2013, Bharti Infratel said in a statement.
Bharti Infratel's consolidated net profit jumped 34% to Rs 1003 crore on 9% growth in revenue to Rs 10272 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). EBITDA rose 9% to Rs 3835 crore in FY 2013 over FY 2012.
Commenting on the company's performance, Akhil Gupta, Vice Chairman & Managing Director, Bharti Infratel said, "We are pleased that our results demonstrate and reaffirm our robust business model. As a result, despite relatively low capex deployment by telecom operators last year due to uncertainties in telecom sector, our results reflect the significant incremental gains from increased sharing of our infrastructure. With Data growing at a fast pace and focused approach by new operators, we expect increased deployment of new networks by operators in the coming year".
Pharma stocks edged higher in renewed buying. Cipla, Lupin and Ranbaxy Laboratories gained by 0.27% to 0.61%. Dr Reddy's Laboratories rose 0.85% to Rs 2009.65. The stock had hit record high of Rs 2018.75 in intraday trade on Monday, 29 April 2013.
Sun Pharmaceutical Industries rose 1.74% to Rs 957.95. The stock had scaled a record high of Rs 980.30 in intraday trade on 25 April 2013.
The stock market remains closed tomorrow, 1 May 2013, on account of Maharashtra Day.
The focus of the market is on Q4 results. IDFC announces Q4 results tomorrow, 1 May 2013. Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on Thursday, 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on Friday, 3 May 2013. Grasim and Jaiprakash Associates unveil Q4 results on Saturday, 4 May 2013. HDFC and Lupin unveil 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 Supreme Court today, 30 April 2013, said that the details in the CBI affidavit on the coal scam are very disturbing. There has been a massive breach of trust that has shaken our foundation, the apex court said. The court said sharing information with the government has shaken the entire process. The Supreme Court also said that the CBI must not be influenced by its political masters. The CBI's independent position must be restored, the court said.
The CBI had on Friday, 26 April 2013, filed its affidavit on the coal block allocation scam report with the Supreme Court, in which agency director Ranjit Sinha had said that the draft report was shared with the Law Minister, a charge the Congress has rejected. The director had also said the draft of the report was even shared with the Prime Minister's Office (PMO) and Coal Ministry officials.
In March, the CBI had said in its status report that many companies were given coal blocks through false representations and that there was no rationale for allocation of the blocks. The Supreme Court had ordered the CBI not to share the report with the government. It had also asked the Centre to explain why a small group of companies were favoured.
The government needs to pass many crucial bills, including the finance Bill in the last two weeks of the Budget Session which ends on 10 May 2013. Neither House has transacted any business so far after Parliament reconvened for the second half of the Budget session last week with adjournments and uproar over various issues.
On the macro front, 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. The net FDI inflow is expected at $24 billion in 2013-14 from an estimated $18 billion in 2012-13, the PMEAC said. In contrast, FII inflows are seen sliding to $18 billion in 2013-14 from an estimated $24 billion in 2012-13, the PMEAC said.
Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for April 2013 tomorrow, 1 May 2013. The HSBC India Manufacturing PMI fell to 52 in March 2013, after a surge to 54.2 in February 2013. Markit Economics will unveil the result of a monthly survey on the performance of India's services sector for April 2013 on Friday, 3 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to a 17-month low of 51.4 in March from 54.2 in February. Services make up over 60% of India's economy.
Slowing wholesale price inflation has raised expectations that the Reserve Bank of India (RBI) will cut its key policy rate viz. the repo rate to boost economic growth. The (RBI) will announce the Monetary Policy Statement 2013-14 on Friday, 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 to 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.
Asian stocks rose on Tuesday after US housing sales gained and amid speculation central banks will keep stimulating growth. Key benchmark indices in Hong Kong, Japan, Taiwan, Singapore and South Korea rose by 0.02% to 1.3%. Indonesia's Jakarta Composite fell 0.28%. Stock markets in mainland China were closed for a holiday.
Japanese and South Korean industrial output was less than estimates in March and Taiwan's first-quarter growth was half the forecast pace as weakness in global demand limits recoveries in Asian economies. In Japan, production climbed 0.2% from the previous month, the trade ministry said in Tokyo today. South Korea's output fell 2.6%, a separate report showed. Taiwan's gross domestic product rose 1.54%.
Trading in US index futures indicated that the Dow could gain 11 points at the opening bell on Tuesday, 30 April 2013. US stocks gained on Monday with S&P 500 index ending at an all-time high led by gains as growth-oriented stocks, including energy and technology. A report showed contracts to buy previously owned homes rose last month to their highest level since April 2010, showing underlying strength in the housing market recovery, even though the pace of sales growth has cooled in recent months.
A two-day meeting of the Federal Open Market Committee on US interest rates begins today, 30 April 2013.
In Europe, the European Central Bank's (ECB) Governing Council meets in Bratislava on Thursday, 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% as economic conditions continue to deteriorate across the euro zone and as inflation remains well below the bank's target.
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