Key benchmark indices edged higher in choppy trade as European stocks rose after Chinese trade data for July 2013 signaled improvement in economic conditions for the world's second biggest economy. The S&P BSE Sensex was up 94.38 points or 0.51%, off close to 70 points from the day's high and up about 140 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Indian stocks snapped two-day losing streak today, 8 August 2013.
Realty stocks gained for the second straight day. Mining and metal stocks rose after China reported much better than expected trade results for July. Ranbaxy Laboratories jumped after the company reported improved Q2 results after trading hours on Wednesday, 7 August 2013. Asian Paints rose after completing acquisition of majority stake in Sleek Group. Cipla gained ahead of its Q1 results tomorrow, 9 August 2013. Sun Pharmaceuticals Industries declined ahead of its Q1 results tomorrow, 9 August 2013.
A bout of initial volatility was witnessed as key benchmark indices alternately moved between the gains and losses near the flat line. Volatility continued in morning trade. The Sensex hovered in positive terrain in mid-morning trade. The market retained positive zone in early afternoon trade. A bout of volatility was witnessed as key benchmark indices extended intraday gains and hit fresh intraday high in afternoon trade. The market extended gains to hit fresh intraday high in mid-afternoon trade. The market trimmed gains after hitting fresh intraday high in late trade.
The stock market remains closed tomorrow, 9 August 2013, on account of Ramzan Id.
As per provisional figures, the S&P BSE Sensex was up 94.38 points or 0.51% to 18,759.26. The index jumped 164.38 points at the day's high of 18,829.26 in late trade, its highest level since 6 August 2013. The index fell 43.21 points at the day's low of 18,621.67 in early trade.
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The CNX Nifty was up 40.10 points or 0.73% to 5,559.20, as per provisional figures. The index hit a high of 5,577.60 in intraday trade, its highest level since 6 August 2013. The index hit a low of 5,510.05 in intraday trade.
The total turnover on BSE amounted to Rs 1730 crore, lower than Rs 1879.26 crore on Wednesday, 7 August 2013.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,375 shares rose and 875 shares fell. A total of 150 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks rose and rest of them fell. Coal India (up 2.02%), Bharti Airtel (up 3.18%) and HDFC (up 2.18%), edged higher.
Maruti Suzuki India rose 3.88%. The Reserve Bank of India on Wednesday, 8 August 2013, lifted restrictions placed on foreign institutional investors buying shares in Maruti Suzuki India (MSIL) after their holdings fell below the prescribed limit. The ceiling on investment by foreign institutional investors (FIIs) in Maruti Suzuki is 24%. Total foreign holding in Maruti Suzuki was 22.10% as at 30 June 2013, of which 22.03% was held by FIIs.
Asian Paints rose 1.5% after the company said it has acquired 51% stake in Kitchen solutions provider Sleek International. The investment was approved by Asian Paints' board today, 8 August 2013, and the infusion of Rs 120 crore in two tranches for 51% stake in Sleek International will be completed by 10 August 2013, the company said.
The Ahuja family, the current promoters of Sleek International will hold the balance 49% in the company. Rajesh T Ahuja, the current CEO, will continue to be the Managing Director & CEO and Monesh T Ahuja will also continue as the Executive Director of the joint venture. Asian Paints will nominate 2 non executive directors on the board of the joint venture and one of these nominees will be the Chairman.
Sun Pharmaceuticals Industries declined 3.26%. The company unveils Q1 results tomorrow, 9 August 2013.
Cipla jumped ahead of its Q1 results tomorrow, 9 August 2013. The stock was up 5.55%.
Ranbaxy Laboratories jumped a staggering 28.41% after the company reported improved Q2 results after trading hours on Wednesday, 7 August 2013. The company reported consolidated net loss of Rs 524.24 crore for Q2 June 2013, lower than net loss of Rs 585.72 crore in Q2 June 2012. Sales declined 17.83% to Rs 2633.20 crore in Q2 June 2013 over Q2 June 2012. Ranbaxy said that base business sales registered double digit growth and base business margins continued to improve in Q2 June 2013.
Ranbaxy said that bottom line in Q2 June 2013 was adversely impacted by the depreciation of rupee against the dollar. Though favourable to Ranbaxy's export business, the rupee depreciation had an adverse impact on the company's profitability mainly on account of application of the accounting standards that require marking to market the entire derivatives and foreign currency denominated loans outstanding. There was a net charge of Rs 540.30 crore on this account in Q2 June 2013, Ranbaxy said.
Ranbaxy said that the macroeconomic environment continued to be challenging in certain countries in Western Europe. Specifically in France, the generic pharma industry has been impacted adversely by continuing pricing and trade challenges. Ranbaxy has accordingly taken an impairment of goodwill of Rs 119.20 crore in Q2 June 2013 pertaining to its operations in France in line with the accounting standards.
Ranbaxy said the company registered profit after tax of Rs 135.20 crore in Q2 June 2013 if one excludes the impact of forex losses and other exceptional items.
Ranbaxy said sales declined on year on year basis in Q2 June 2013 due to base effect. The company said sales in Q2 June 2012 was boosted by contribution from exclusivities. On a like-to-like basis, sales grew in double digits over the corresponding quarter, Ranbaxy said.
Mr. Arun Sawhney, CEO & Managing Director, Ranbaxy said that the company's focus on branded markets and business continues and this will help navigate the growth of Ranbaxy in the coming years. He also said that the management is consciously working on efficiency improvement across the organization.
Ranbaxy during market hours today, 8 August 2013 said that its joint venture in Malaysia viz. Ranbaxy Malaysia Sdn Bhd (RMSB) has been allocated the site for setting up a greenfield manufacturing facility in Malaysia. The greenfield manufacturing facility will be built on an area of about 15 acres, with an investment of around $35 million providing employment to over 200 people. This will be Ranbaxy's second manufacturing facility in Malaysia. RMSB is a joint venture between Ranbaxy and Malaysian shareholders. RMSB is one the major generic companies in Malaysia.
Mining and metal stocks rose after China reported much better than expected trade results for July. China is the world's largest consumer of copper and aluminum. China's copper imports in July 2013 rose 12% from a year ago, and increased 8.1% from June 2013. Sterlite Industries (up 1.67%), Sesa Goa (up 0.46%), Tata Steel (up 5.54%), Hindalco Industries (up 5.37%), Sail (up 3.88%), Jindal Steel & Power (up 1.82%), and Hindustan Zinc (up 2.4%), gained.
Meanwhile, the Indian government on Wednesday allowed import of some steel products for certain critical applications without local quality certification, a move that could further hit domestic suppliers after imports rose 15% last fiscal year. The government said imports for projects in sectors such as infrastructure, petroleum, nuclear reactors and defence would be exempted from applicable local quality standards if at least Rs 1000 crore is invested in such a project. The exporters will, however, have to obtain quality certificates from their country of origin, a notification from the commerce and industry ministry said.
NMDC rose 2.55%, with the stock extending Wednesday's 5.38% gains triggered by the company's better-than-expected Q1 results. The company's net profit fell 17.51% to Rs 1572.19 crore on 0.02% decline in total income to Rs 3391.53 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result during market hours on Wednesday, 7 August 2013.
Realty stocks gained for the second straight day. DLF (up 4.24%), D B Realty (up 4.99%) and HDIL (up 2.93%), edged higher.
Unitech rose 0.26%, with the stock reversing intraday losses. The stock had risen 14.72% in a single trading session on Wednesday, 7 August 2013. The company during market hours on Tuesday, 6 August 2013, reported 37.08% rise in consolidated net profit to Rs 62.89 crore on 35.13% rise in total income to Rs 597.67 crore in Q1 June 2013 over Q1 June 2012.
Adani Enterprises shrugged off weak Q1 results. The stock was up 0.48% at Rs 167.70. The company reported consolidated net loss of Rs 278.30 crore for Q1 June 2013, compared with net profit of Rs 402.88 crore in Q1 June 2012. Total income rose 5% to Rs 11547 crore in Q1 June 2013 over Q1 June 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) jumped 53% to Rs 1937 crore in Q1 June 2013 over Q1 June 2012, led by higher contribution from port and power businesses.
The company said net loss in Q1 June 2013 verses net profit in Q1 June 2012 was due to marked to market (MTM) provision due to rupee depreciation, non-cash items like depreciation, provision for deferred tax and higher imported coal due to limited availability of domestic coal in power business.
Commenting on the results, Mr Gautam Adani, Chairman Adani Group, said: "We have experienced a highly rewarding quarter with Mundra Port emerging as no. 1 port, coal trading sustaining its leading position and Power business achieving 7,260 MW operational capacity. We are confident of overcoming the present difficulties faced by the power sector and enriching its financial performance in the ensuing quarters. Our integrated business model of Resources, Logistics and Energy sectors is best suited to reap benefits of sustainable growth."
Mr Devang Desai, CFO Adani Group and Executive Director, Adani Enterprises, said: "Our quarterly financial performance has been adversely affected due to sudden currency volatility and continuing constraints of coal availability, transmission bottleneck and tariff related issues in the power business. We follow a judicious currency hedging policy in line with our business aligned financial strategy. With focused efforts, we shall ensure sustainable returns from the power business and improve our overall performance."
Great Eastern Shipping Company rose 1.44% to Rs 238.80 after the company's board approved buyback of equity shares. The company made the announcement during trading hours today, 8 August 2013. The board of Great Eastern Shipping Company (GE Shipping) approved buyback of fully paid equity shares at a maximum price of Rs 279 per share, which is 16.83% premium to the ruling market price.
The company said it has set aside an aggregate amount of Rs 279 crore for the buyback, which is 5.53% of the total paid-up equity capital plus free reserves as per the audited balance sheet of the company for the year ended 31 March 2013.
Welspun India jumped 9.06% after net profit jumped 42% to Rs 89.90 crore on 25% increase in revenues to Rs 944.60 crore in Q1 June 2013 over Q4 March 2013. The result was announced after market hours on Wednesday, 7 August 2013.
Welspun India's net profit jumped 75% to Rs 89.90 crore on 3% fall in revenues to Rs 944.60 crore in Q1 June 2013 over Q1 June 2012. EBITDA rose 31% to Rs 222.90 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin grew to 23.6% in Q1 June 2013 compared with 17.5% in Q1 June 2012. As on 30 June 2013, the company's net long term debt stood at Rs 1079.90 crore implying a net long term debt/equity of 1.16x.
European stocks edged higher on Thursday, 8 August 2013, boosted by upbeat Chinese trade data and well-received earnings reports from some of the region's prominent firms. Key benchmark indices in UK, Germany and France were up by 0.31% to 0.34%.
German exports slightly recovered in June from May's sharp decline, official data showed Thursday, but foreign trade remains lackluster amid slack demand from the struggling euro zone and a weakening Chinese growth outlook. Exports of goods, as opposed to services, rose 0.6% in June from May, but declined 2.1% from June 2012, data from the federal statistics office showed, indicating that foreign trade continues to lack momentum.
Exports--traditionally a key driver of economic growth in Europe's largest economy--declined 0.6% in January-June compared with the same period a year earlier, as shipments to the euro zone dropped 3.1%. Imports, meanwhile, declined for the first time in four months. German goods imports in June were down 0.8% on the month and declined 1.2% on the year.
Asian stocks were mostly lower on Thursday, 8 August 2013. Key benchmark indices in China, Japan and Taiwan fell by 0.09% to 1.59%. Key benchmark indices in Hong Kong and South Korea were up 0.3% to 0.31%. Stock markets in Singapore, Indonesia and Malaysia were closed for holidays.
China's exports and imports rebounded in July, exceeding estimates and adding to signs that the world's second-largest economy is stabilizing following a two-quarter slowdown. Shipments abroad rose 5.1% from a year earlier, the General Administration of Customs said in Beijing today. Imports jumped 10.9%, leaving a trade surplus of $17.8 billion.
The Bank of Japan today, 8 August 2013, refrained from adding to unprecedented monetary stimulus after a two-day monetary policy review. Governor Haruhiko Kuroda's board stuck with an April pledge to expand the monetary base by 60 trillion yen to 70 trillion yen ($723 billion) per year, a statement released in Tokyo today showed.
Australian employers unexpectedly cut payrolls in July and unemployment held at an almost four-year high, denting Prime Minister Kevin Rudd's bid for a come-from-behind election win. The number of people employed fell 10,200, the statistics bureau said in Sydney today.
Trading in US index futures indicated that the Dow could gain 31 points at the opening bell on Thursday, 8 August 2013. US stocks lost ground for a third consecutive session on Wednesday on growing uncertainty over when the Federal Reserve will start to wind down its stimulus, which has been a driving force behind the rally in equities this year. Federal Reserve Bank of Cleveland President Sandra Pianalto said on Wednesday that the central bank would be prepared to scale back asset purchases if the labor market remains on the stronger path followed since last fall. Charles Evans, the president of the Federal Reserve Bank of Chicago, said on Tuesday that the Fed would probably scale back its bond-buying program later this year, perhaps beginning as early as next month, depending on economic data. That echoed comments made earlier on Tuesday by Dennis Lockhart, the president of the Federal Reserve Bank of Atlanta.
The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
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