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Nifty regains 6,000 in volatile early trade

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Capital Market
Last Updated : May 27 2013 | 10:32 AM IST

Volatility ruled the roost in early trade as the key benchmark indices rose to intraday high after sliding in the red following a positive start. The CNX Nifty regained the psychological 6,000 mark in early trade. The S&P BSE Sensex was up 99.65 points or 0.51%, up 125.67 points from the day's low and off 3.46 points from the day's high. Index heavyweight Reliance Industries (RIL) advanced after the company along with partners announced huge gas discovery in KG-D6 block. Another index heavyweight and cigarette major ITC was slightly higher. The market breadth, indicating the overall health of the market, was strong.

Foreign institutional investors (FIIs) sold shares worth a net Rs 238.56 crore on Friday, 24 May 2013, as per provisional data from the stock exchanges.

At 9:29 IST, the S&P BSE Sensex was up 99.65 points or 0.51% to 19,803.98. The index jumped 103.11 points at the day's high of 19,807.44 in early trade. The index fell 26.02 points at the day's low of 19,678.31 in early trade.

The CNX Nifty was up 26.50 points or 0.44% to 6,010.05. The index hit a high of 6,013.40 in intraday trade. The index hit a low of 5,975.55 in intraday trade.

The market breadth, indicating the overall health of the market, was strong. On BSE, 602 shares rose and 314 shares fell. A total of 34 shares were unchanged.

The total turnover on BSE amounted to Rs 153 crore by 09:30 IST.

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Among the 30-share Sensex pack, 22 stocks fell and the rest of them rose.

Index heavyweight Reliance Industries (RIL) advanced 2.61% to Rs 808.50 and was the top gainer from the Sensex pack. RIL after market hours on Friday, 24 May 2013 said that the company and its partners BP and NIKO on 24 May 2013 announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of India.

RIL said that the discovery, named 'D-55', has been notified to the Government of India (GoI) and the Management Committee of the block. This discovery is expected to add to the hydrocarbon resources in the KG D6 block. Appraisal will now commence to better define the scale and quality of the field, RIL said in a statement.

RIL is the operator of KG D6 with 60% equity. BP has a 30% share and NIKO the remaining 10%.

Oil India rose 1.66%. The company reported 4.22% rise in consolidated net profit to Rs 3592.05 crore on 1.74% rise in total income to Rs 11476.53 crore in the year ended 31 March 2013 over the year ended 31 March 2012. The result was announced after market hours on Friday, 24 May 2013.

Coal India rose 1.11% ahead of its consolidated FY 2013 results today, 27 May 2013.

Index heavyweight and cigarette major ITC rose 0.12% to Rs 330.40. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.

On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.

ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.

Britannia Industries jumped 13.57% after the company's net profit jumped 65.7% to Rs 87.85 crore on 13.5% growth in net sales to Rs 1486.63 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Friday, 24 May 2013.

Britannia Industries' net profit rose 25.2% to Rs 233.87 crore on 12.5% growth in net sales to Rs 5564.38 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).

On consolidated basis, Britannia Industries' net profit rose 30% to Rs 259.50 crore on 12.4% growth in net sales to Rs 6135.91 crore in FY 2013 over FY 2012.

Britannia Industries' board of directors at a meeting held on Friday, 24 May 2013, recommended dividend of Rs 8.50 per share for FY 2013.

Jet Airways (India) lost 3.15%. The company reported net loss of Rs 495.53 crore in Q4 March 2013, higher than net loss of Rs 298.12 crore in Q4 March 2012. Revenue declined 2.49% to Rs 3990.50 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Friday, 24 May 2013.

Jet Airways (India) reported net loss of Rs 485.50 crore in the year ended 31 March 2013 (FY 2013), lower than net loss of Rs 1236.10 crore in the year ended 31 March 2012 (FY 2012). Revenue rose 13.8% to Rs 17068.70 crore in FY 2013 over FY 2012.

On consolidated basis, Jet Airways (India) reported net loss of Rs 779.28 crore in FY 2013, lower than net loss of Rs 1420.13 crore in FY 2012. Total income from operations rose 12.79% to Rs 18840.56 crore in FY 2013 over FY 2012.

Jet Airways (India) said that the performance of the company in Q4 March 2013 was impacted due to high fuel prices, rupee depreciation and increase in cost of operations. Temporary slowdown in demand has resulted into capacity reduction, the company said. This has resulted in aircraft on ground. Few of them were redeployed to profitable international routes, Jet Airways (India) said in a statement.

The impact of aircraft on ground for the quarter was Rs 90.30 crore. There were instances of aircraft on ground during the year (FY 2013); the impact of this for the year was Rs 188.90 crore, Jet Airways (India) said. The result also includes onetime exceptional items amounting to Rs 310.20 crore. This is mainly due to maintenance events, payroll arrears, SFIS reversal on account of expiry of licence and loss on exchange fluctuation. Additionally the company also had certain credits on account of compensation credit and profit on sale and lease back of London slots, Jet Airways (India) said.

As per the Q4 results calendar, Sun Pharmaceutical Industries, Power Grid Corporation of India, GAIL (India) and Hindalco Industries unveil Q4 results tomorrow, 28 May 2013. Tata Motors, ONGC, Cipla, NMDC and BPCL unveil Q4 results on 29 May 2013. DLF, M&M and Tata Power unveil Q4 results on 30 May 2013.

The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near-month May 2013 series to June 2013 series. The May 2013 derivatives contracts expire on Thursday, 30 May 2013.

On a the macro front, the government will announce Q4 March 2013 gross domestic product (GDP) data on Friday, 31 May 2013. India's GDP grew 4.5% in Q3 December 2012, sharply slower than the 5.3% expansion reported for Q2 September 2012.

Global credit rating agency Standard & Poor's (S&P) on 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.

The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year.

The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.

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 were mostly higher today, 27 May 2013. Key benchmark indices in China, Taiwan, Hong Kong, South Korea and Singapore rose by 0.01% to 0.59%. Indonesia's Jakarta Composite fell 1.07%. Japan's Nikkei 225 slumped 3.35% on the yen's strength and further profit-taking after concerns about a rise in bond-market volatility helped stoke extreme swings late last week.

US financial markets remain closed today, 27 May 2013 for Memorial Day. UK markets will also be closed today, 27 May 2013 for a holiday. US markets were mixed on Friday, 24 May 2013 as prospects of the Federal Reserve starting to reduce its bond-buying stimulus rattled a market trading at historic highs.

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First Published: May 27 2013 | 9:35 AM IST

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