Volatility ruled the roost as key benchmark indices regained positive zone after reversing initial gains in mid-morning trade. The S&P BSE Sensex was up 35.99 points or 0.19%, up 62.20 points from the day's low and off 48.15 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
Metal stocks were in demand. Tata Steel surged in volatile trade after the company reported strong Q1 result after market hours on Tuesday, 13 August 2013. Oracle Financial Services Software declined on weak Q1 results. HPCL fell after turning ex-dividend today, 14 August 2013. Financial Technologies (India) tumbled on reports top stockbrokers have threatened to seek legal recourse if its unit National Spot Exchange (NSEL) is unable to repay its dues to the brokers and investors. Shares of group firm Multi Commodity Exchange of India (MCX) hit record low.
Key benchmark indices edged higher amid initial volatility. The S&P BSE Sensex and the CNX Nifty, both, hit their highest level in almost two weeks. Volatility ruled the roost as key benchmark indices regained positive zone after reversing initial gains in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 227.08 crore on Tuesday, 13 August 2013, as per provisional data from the stock exchanges.
At 10:19 IST, the S&P BSE Sensex was up 35.99 points or 0.19% to 19,265.83. The index jumped 84.14 points at the day's high of 19,313.98 in early trade, its highest level since 2 August 2013. The index fell 26.21 points at the day's low of 19,203.63 in morning trade.
The CNX Nifty was up 9.55 points or 0.17% to 5,708.85. The index hit a high of 5,723.25 in intraday trade, its highest level since 2 August 2013. The index hit a low of 5,690.20 in intraday trade.
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The market breadth, indicating the overall health of the market, was strong. On BSE, 777 shares gained and 412 shares fell. A total of 55 shares were unchanged.
The total turnover on BSE amounted to Rs 447 crore by 10:20 IST on BSE compared to Rs 189 crore by 09:30 IST.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined
Tata Steel surged 5.14% to Rs 253.55, off day's high of Rs 263. The company's consolidated net profit jumped 90.46% to Rs 1139 crore on 3% fall in turnover to Rs 32805 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Tuesday, 13 August 2013. This improvement was on the back of robust performance by the Indian operations and improved performance at the European operations, Tata Steel said.
Earnings before interest, taxation, deprecation and amortization (EBITDA) rose 4.85% to Rs 3755 crore in Q1 June 2013 over Q1 June 2012. The EBITDA margin edged up to 11.4% in Q1 June 2013, from 10.6% in Q1 June 2012.
Commenting on the first quarter results, Tata Steel Managing Director, Mr HM Nerurkar said: "The Indian operations delivered a steady performance in a subdued market environment with deliveries growing at an enhanced pace over the comparable period of last year. Our retail focus, customer relationship and brand building efforts are supporting growth despite increased competition in the market place and we are intensifying our focus on efficiency improvements and delivering enhanced value to our customers. Work on the greenfield project in Odisha continues in full swing. The South East Asian operations are robust and we continue to invest in improving the underlying performance."
Tata Steel Europe MD & CEO Dr Karl-Ulrich Kler said: "Our European facilities recorded higher production volumes after we completed some major plant refurbishment last year, which gave us a more stable production platform and greater operational flexibility. As a result we are better placed to supply our customers with the high-quality steel they demand. We see signs that our strategy is enhancing bottom-line performance, despite continued subdued European demand. There have recently been encouraging signs of improving economic conditions in some European economies, the UK in particular, and we are poised to capitalise should these translate more strongly into increased demand from steel-intensive sectors."
Other metal and mining stocks were also in demand. Sterlite Industries (India) rose 1.39%, with the stock extending recent gains. The company on 8 August 2013 said that the National Green Tribunal (NGT) has in its judgment upheld its interim order of 31 May 2013, and has allowed the company's Tuticorin Copper Smelter to continue to operate.
Sesa Goa rose 0.85%. The company on 12 August 2013 said that the Division Bench of the High Court of Bombay at Goa vide its order dated 12 August 2013 has dismissed the appeal filed by the shareholder of Sesa Goa and sanctioned the Scheme of amalgamation and arrangement amongst Sterlite Industries (India), Madras Aluminium Company, Sterlite Energy, Vedanta Aluminium and Sesa Goa and their respective shareholders and creditors and the scheme of amalgamation of Ekaterina with the company and their respective shareholders and creditors.
Hindalco Industries gained 2.62%. The company's net profit rose 11.52% to Rs 474 crore on 3.15% decline in revenue from operations to Rs 5838 crore in Q1 June 2013 over Q1 June 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 3.45% to Rs 479 crore in Q1 June 2013 over Q1 June 2012. Hindalco said that the performance in Q1 June 2013 was achieved despite adverse macro-economic headwinds. Hindalco announced the standalone results during trading hours on Tuesday, 13 August 2013.
Hindalco said that there has been a significant progress on all projects being implemented by the company and its subsidiary Utkal Alumina International (UAIL). The company also said that in view of the delays in getting various regulatory approvals and the current uncertain economic environment, the company is re-evaluating its investment strategy with respect to its proposed Aditya Refinery and Jharkhand Aluminium Projects.
On future business outlook, the company said that its focus is now on ramping up the new projects already on stream. Depressed LME prices in an otherwise inflationary scenario pose a significant challenge, Hindalco said. However, the company is confident of riding through these challenges with its trust on stabilizing the projects, operational efficiencies and cost control, Hindalco Industries said.
JSW Steel (up 0.8%), Sail (up 2.48%), NMDC (up 2.16%), National Aluminium Company (up 1.65%), Hindustan Copper (up 1.22%), Hindustan Zinc (up 0.58%), Jindal Steel & Power (up 0.69%) edged higher.
Financial Technologies (India) dropped 17.64% to Rs 139.60 after sliding as much as 34.81% at the day's low of Rs 110.50 in early trade. Reportedly top stockbrokers threatened to seek legal recourse if its unit National Spot Exchange (NSEL) is unable to repay its dues to the brokers and investors. Shares of group firm Multi Commodity Exchange of India (MCX) were locked at 5% lower circuit filter at Rs 253.30, also its record low.
Oracle Financial Services Software fell 2.06%. The company's consolidated net profit fell 1% to Rs 366.20 crore on 5% decline in total revenue to Rs 899.40 crore in Q1 June 2013 over Q1 June 2012. Net profit surged 30% to Rs 366.20 crore on 2% increase in total revenue to Rs 899.40 crore in Q1 June 2013 over Q4 March 2013. The result was announced after market hours on Tuesday, 13 August 2013.
The company signed new licenses of $18 million in Q1 June 2013 and 10 new customers for the product portfolio.
Commenting on the first quarter results, Chet Kamat, Managing Director and CEO, Oracle Financial Services Software, said: "We continued to maintain the winning momentum in various regions across the world signing $18 million in new license fees in the quarter. All our lines of business posted strong operating performance. This performance is a testimonial to the breadth of our product capability sustained through focussed investments to grow our addressable market."
Makarand Padalkar, CFO, Oracle Financial Services Software, said: "In a challenging environment, we delivered robust performance with net margins at 41% registering a nine percentage point increase since the last quarter."
HPCL fell 1%. The stock turned ex-dividend today, 14 August 2013, for dividend of Rs 8.50 per share for the year ended 31 March 2013 (FY 2013).
Strides Arcolab lost 5.95%. The company after market hours on Tuesday, 13 August 2013, said that the Reserve Bank of India on 13 August 2013 directed all the custodian banks not to facilitate any purchase transactions on behalf of foreign institutional investors in the company's shares till further intimation. Earlier, the company had announced that shareholders had approved increase in FII limit to 74%.
The finance ministry on 6 August 2013 said that the government has kept in abeyance decision on Strides Arcolab's proposal to sell its specialties subsidiary -- Agila Specialties -- to US based Mylan Inc. until DIPP finalizes policy on FDI in brown field pharma projects involving transfer of control. Strides Arcolab had in February 2013 announced the sell of Agila Specialties to Mylan Inc. for a net consideration of about $1.725 billion.
The stock market remains closed tomorrow, 15 August 2013, on account of Independence Day.
On the macro front, inflation based on the wholesale price index (WPI) is seen accelerating further in July 2013. WPI inflation is seen edging up to 5% in July 2013, from 4.9% in June 2013, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil the WPI inflation data for July 2013 today, 14 August 2013.
Asian stocks were mixed on Wednesday, 14 August 2013. Key benchmark indices in China, Indonesia and South Korea were up by 0.07% to 0.5%. Key benchmark indices in Japan, Taiwan and Singapore were down by 0.14% to 0.75%.
Hong Kong stock and derivatives trade was canceled on Wednesday due to Typhoon Utor, bourse operator Hong Kong Exchange & Clearing said. The storm generated a severe "force 8" warning from the Hong Kong Observatory, which remained in effect at noon local time, resulting in the bourse's closure.
Trading in US index futures indicated that the Dow could fall 22 points at the opening bell on Wednesday, 14 August 2013. US stocks rose on Tuesday, 13 August 2013, with technology pacing the gains, after investor Carl Icahn touted his large position in Apple Inc.
A report released by the Commerce Department showed retail sales rose 0.2% in July after a 0.6% gain in June that was larger than initially estimated. Retail sales excluding cars, gasoline and building materials climbed at their fastest pace in seven months.
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