A bout of volatility was witnessed as key benchmark indices trimmed initial gains in morning trade. The S&P BSE Sensex was up 167.43 points or 0.87%, up about 70 points from the day's low and off about 55 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Gains in Asian stocks underpinned sentiment. Asian stocks rose after the Federal Reserve after a two-day policy meeting maintained its bond-buying program at current levels on Wednesday, 31 July 2013.
Metal and mining stocks rose after data showed China's official version of the manufacturing Purchasing Managers' Index (PMI) unexpectedly rose in July. United Spirits shrugged off weak Q1 result. HCL Technologies reversed direction after hitting record high in intraday trade today, 1 August 2013. Realty major DLF hit 52-week low.
The market surged in early trade on firm Asian stocks. A bout of volatility was witnessed as key benchmark indices trimmed initial gains in morning trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Wednesday, 31 July 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 142.87 crore on Wednesday, 31 July 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 167.43 points or 0.87% to 19,513.13. The index gained 223.50 points at the day's high of 19,569.20 in early trade, its highest level since 30 July 2013. The index rose 97.30 points at the day's low of 19,443 in opening trade.
The CNX Nifty was up 44.75 points or 0.78% to 5,786.75. The index hit a high of 5,808.50 in intraday trade, its highest level since 30 July 2013. The index hit a low of 5,775 in intraday trade.
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The market breadth, indicating the overall health of the market, was positive. On BSE, 848 shares rose and 655 shares fell. A total of 93 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks rose and rest of them fell. Hindustan Unilever (up 2.88%), HDFC (up 2.81%) and GAIL (India) (up 2.6%), gained.
Metal and mining stocks rose after data showed China's official version of the manufacturing Purchasing Managers' Index (PMI) unexpectedly rose in July. China is the world's largest consumer of copper and aluminum. NMDC (up 2.7%), Sesa Goa (up 2.42%), Sterlite Industries (up 2.39%), Hindalco Industries (up 1.94%), Sail (up 1.92%), Tata Steel (up 1.3%), JSW Steel (up 1.04%) and Hindustan Zinc (up 0.94%), gained.
Jindal Steel & Power (JSPL) rose 2.86%. The company's consolidated net profit rose 28.27% to Rs 494.28 crore on 2.65% decline in total income to Rs 4593.55 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Tuesday, 30 July 2013. The surge in net profit was due to base effect. JSPL's net profit in Q1 June 2012 was hit adversely by a huge write off of Rs 574.12 crore for impaired Bolivia investments.
The company said it has achieved impressive growth in its earnings notwithstanding a shrinking global and sluggish local market, adverse economic conditions in the home market, power transmission constraints and major devaluation of the Indian rupee. JSPL said that in spite of all challenges, the company has maintained the tempo in completing its 4x600 MW Tamnar Phase 2 power project as well as its new steel plants in Angul and Oman which would be fully commissioned as per the targeted schedule during 2013-14. JSPL said that the management remains cautiously optimistic and confident of achieving its targeted performance in the quarters to come.
HCL Technologies fell 0.54% to Rs 932.65. The stock reversed direction after hitting record high of Rs 950 in intraday trade today, 1 August 2013. The stock had risen 3.52% on Wednesday, 31 July 2013, boosted by the company's strong Q4 results. The company's consolidated net profit as per US accounting standards rose 16.3% to Rs 1209.60 crore on 8.1% growth in revenue to Rs 6944.20 crore in Q4 June 2013 over Q3 March 2013.
United Spirits rose 3.91%, with the stock shrugging off weak Q1 result. The company's net profit declined 18.5% to Rs 118.13 crore on 7.19% growth in total income to Rs 2270.43 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced after market hours on Wednesday, 31 July 2013.
United Spirits (USL) said that Tamil Nadu continues to be a dampener on the company's business with the ordering mechanism deliberately skewed to favor brands from select local vendors at the cost of the popular brands of USL. From a situation three years ago where one of every three bottles sold in Tamil Nadu was from the USL stable, the USL share is now down to one out of every six bottles sold, the company said in a statement.
USL said that the strategic brands of the company continue to perform well.
USL said the interest costs for the quarter were lower due to the benefit of repayment of Rs 1600 crore of loans at the end of May 2013 from the proceeds of the issue of preference capital. Further reduction in interest costs is likely during the year, the company said.
Realty major DLF dropped 0.57% to Rs 148.75 after hitting a 52-week low of Rs 145 in intraday trade today, 1 August 2013.
OnMobile Global was locked at 10% upper circuit at Rs 21.65 on BSE after net profit surged 47.6% to Rs 14 crore on 2.4% growth in revenue to Rs 189.70 crore in Q1 June 2013 over Q1 June 2012. However, normalized for forex impact, net profit declined 17%. OnMobile Global's earnings before interest, taxation, depreciation and amortization (EBITDA) jumped 44.4% to Rs 51.80 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin stood at 27.3%. EBITDA included foreign exchange (forex) gain of Rs 9.90 crore due to appreciation of various currencies against dollar. EBITDA normalized for forex impact grew 14.2% to Rs 41.90 crore with EBITDA margin at 22.1%.
International business rose 19.8% year on year (YoY) in Q1 June 2013 contributing 66% of net revenue during the quarter. International revenue was primarily driven by LATAM, which recorded a strong growth of 49.5% as a result of the company's past investments. African and European businesses also recorded robust growth of 28.2% and 12.5% respectively.
Domestic business declined 20.1% YoY to Rs 64.40 crore as a result of continued adverse scenario arising from the implementation of the TRAI regulations. Domestic business contributed 34% of net revenue during the quarter.
Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for July 2013 today, 1 August 2013.
Asian stocks rose on Thursday, 1 August 2013, after the Federal Reserve maintained its bond-buying program at current levels. Key benchmark indices in Hong Kong, China Japan, Singapore, and South Korea rose by 0.45% to 1.47%. Key benchmark indices in Taiwan and Indonesia fell by 0.03% to 0.46%.
A privately compiled gauge of China's manufacturing activity sank to an 11-month low, the index's publishers HSBC and Markit said Thursday. The HSBC manufacturing Purchasing Managers' Index fell to 47.7, down from June's final reading 48.2. The result contrasted with an official version of the manufacturing PMI, which unexpectedly rose to 50.3 from June's 50.1. Any reading above 50 indicates activity is expanding, and the July data marked the third straight month the HSBC registered contraction, and also the third month the two PMIs differed on whether factory activity was rising. HSBC's PMI covers a smaller number of firms and focuses on smaller manufacturers, while the official PMI includes more of the large state-run firms. HSBC's survey also showed new orders falling at their fastest rate in almost a year, though pace of the contraction for new export orders slowed.
Chinese leaders pledged at a Politburo meeting this week to maintain steady second-half growth while pressing on with economic reforms.
Trading in US index futures indicated that the Dow could gain 66 points at the opening bell on Thursday, 1 August 2013. US stocks ended mixed on Wednesday after a busy day of news that included a policy statement from the Federal Reserve and a mixed report on US economic growth. Second-quarter US gross domestic product grew 1.7%, above the 1.1% pace expected. However, the report also included a steep downgrade in first-quarter GDP growth, which is now estimated at 1.1% instead of 1.8%.
The Federal Open Market Committee, which has floated the prospect of reductions to its stimulus program should economic risks abate, said yesterday after a two-day long meet that while growth should pick up, persistently low inflation may hamper the recovery. The statement came as data showed US gross domestic product expanded more than economists estimated last quarter. The Fed offered no clues as to when it plans to slow the pace of monetary stimulus. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth.
The influential US non-farm payroll data for July 2013 is due tomorrow, 2 August 2013.
The European Central Bank (ECB) and the Bank of England (BoE) will announce their policy decisions later in the global day today, 1 August 2013.
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