Sensex hits 19,000

Key benchmark indices surged as gains in European markets boosted sentiment. The barometer index, the S&P BSE Sensex, hit over two-week high above the psychological 19,000 mark in late trade. The CNX Nifty hit its highest level in more than four weeks. The Sensex was provisionally up 255.18 points or 1.36%, up 294.73 points from the day's low and off 72.46 points from the day's high. Index heavyweight Reliance Industries (RIL) edged higher. Another index heavyweight and cigarette major ITC pared gains in volatile trade after striking record high. The market breadth, indicating the overall health of the market, was positive.

Bank stocks extended recent gains triggered by expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost growth amid slowing wholesale price inflation. IndusInd Bank scaled a record high after the private sector bank reported strong Q4 March 2013 results. FMCG stocks gained on reports of likely normal monsoon this year. Interest rate sensitive realty stocks edged higher as slowing wholesale price inflation has raised rate cut expectations. Capital goods stocks gained on renewed buying.

IT stocks fell on firm rupee. IT major TCS slipped after reporting Q4 earnings after trading hours on Wednesday, 17 April 2013. Another IT major Wipro dropped ahead of its Q4 results tomorrow, 19 April 2013. Shares of the gold jewellery retailer Titan Industries surged on expectations that the recent steep fall in gold price will boost sales of gold jewellery.

Key benchmark indices turned positive after a negative start triggered by mostly lower Asian stocks. The market pared gains in morning trade. Key benchmark indices regained strength to scale intraday high in mid-morning trade. The market held firm in early afternoon trade. Firmness prevailed on the bourses in mid-afternoon trade. Key benchmark indices struck extended gains to strike fresh intraday high in late trade.

The market sentiment was also boosted by data showing that foreign funds were net buyers of Indian stocks on Wednesday, 17 April 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 206.68 crore on Wednesday, 17 April 2013, as per provisional data from the stock exchanges.

As per provisional closing, the S&P BSE Sensex was up 255.18 points or 1.36% to 18,986.34. The index surged 327.64 points at the day's high of 19,058.80 in late trade, its highest level since 2 April 2013. The index fell 39.55 points at the day's low of 18,691.61 in early trade.

The CNX Nifty was up 86.05 points or 1.51% to 5,774.75. The index hit a high of 5,794.35 in intraday trade, its highest level since 19 March 2013. The index hit a low of 5,681.85 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,342 shares advanced and 1,095 shares declined. A total of 137 shares were unchanged.

The total turnover on BSE amounted to Rs 2135 crore, lower than Rs 2277 crore on Wednesday, 17 April 2013.

Among the 30-share Sensex pack, 24 stocks advanced while rest of them declined.

Index heavyweight Reliance Industries (RIL) rose 0.9% to Rs 781.05 in volatile trade. The scrip hit high of Rs 785.20 and a low of Rs 773. The stock had dropped 3.77% on Wednesday, 17 April 2013, after the company reported muted sequential growth in net profit in Q4 March 2013 after trading hours on Tuesday, 16 April 2013. RIL's net profit jumped 31.9% to Rs 5589 crore on 1.4% fall in turnover to Rs 86618 crore in Q4 March 2013 over Q4 March 2012. On sequential basis, RIL's net profit rose 1.58% to Rs 5589 crore on 10.06% decline in turnover to Rs 86618 crore in Q4 March 2013 over Q3 December 2012.

Net profit rose 4.8% to Rs 21003 crore on 9.2% growth in turnover to Rs 371119 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).

RIL's gross refining margin (GRM) edged up to $10.1 a barrel in Q4 March 2013 from $9.6 a barrel in Q3 December 2012 and $7.6 a barrel in Q4 March 2012. The GRM edged up to $9.2 a barrel in FY 2013 from $8.6 a barrel in FY 2012.

RIL said its retail business achieved cash breakeven with earnings before depreciation, finance cost and tax expense of Rs 78 crore in FY 2013. Turnover of the retail business jumped 42% to Rs 10800 crore in FY 2013 over FY 2012.

FMCG stocks gained on reports of likely normal monsoon this year. FMCG companies derive a substantial revenue from rural markets. Britannia Industries (up 1.11%), Colgate-Palmolive (India) (up 2.67%), Dabur India (up 1.65%), Godrej Consumer Products (up 1.08%), Hindustan Unilever (up 0.12%) and Tata Global Beverages (up 1.06%) gained.

Index heavyweight and cigarette major ITC rose 0.27% to Rs 314 in volatile trade. The stock hit record high of Rs 316.35 in intraday trade today, 18 April 2013. The government 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.

Bank stocks extended recent gains triggered by expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost growth amid slowing wholesale price inflation. State Bank of India (SBI) edged higher after Chairman Pradip Chaudhuri on Tuesday, 16 April 2013, said that SBI is looking at merging one of its five banking subsidiaries with it in the current financial year that started on 1 April 2013. The stock was up 2.16%.

Among other PSU bank stocks, Canara Bank (up 1.77%), Union Bank of India (up 2.33%), Bank of India (up 5.04%), Bank of Baroda (up 1.49%) and Punjab National Bank (up 2.19%) gained.

ICICI Bank advanced 2.03%. ICICI Bank announces Q4 results on 26 April 2013.

HDFC Bank rose 2.17%. HDFC Bank announces Q4 results on 23 April 2013.

IndusInd Bank jumped 7.97% to Rs 453.25 after striking a record high of Rs 455.70 in intraday trade today, 18 April 2013. IndusInd Bank's net profit rose 37.61% to Rs 307.40 crore on 23.55% increase in total income to Rs 2190.66 crore in Q4 March 2013 over Q4 March 2012. The result was announced during trading hours today, 18 April 2013.

IndusInd Bank's net profit rose 32.22% to Rs 1061.18 crore on 31% increase in total income to Rs 8346.19 crore in the year ended March 2013 over the year ended March 2012.

The bank's ratio of net non-performing assets to net advances stood at 0.31% as on 31 March 2013, compared with 0.30% as on 31 December 2012 and 0.27% as on 31 March 2012.

The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 1.03% as on 31 March 2013, compared with 0.99% as on 31 December 2012 and 0.98% as on 31 March 2012.

Provisions and contingencies jumped 77.97% to Rs 81.85 crore in Q4 March 2013 over Q4 March 2012.

The bank's Capital Adequacy Ratio (CAR) as per Basel II norms stood at 15.36% as on 31 March 2013, compared with 15.01% as on 31 December 2012 and 13.85% as on 31 March 2012.

Yes Bank rose 2.19%, with the stock extending Wednesday's gain triggered by the bank declaring strong Q4 results during market hours on Wednesday, 17 April 2013. The bank's net profit rose 33.24% to Rs 362.15 crore on 30% rise in total income to Rs 2667.03 crore in Q4 March 2013 over Q4 March 2012.

Yes Bank also said that the board of directors has empowered the Capital Raising Committee, a sub Committee of the board, to raise funds by way of issuance of equity capital up to $500 million in one or more tranches on such terms and conditions as it may deem fit. The issuance may be by way of Qualified Institutions Placement (QIP) or any other international offering like Global Depository Receipts (GDRs)/American Depository Receipts (ADRs), Ordinary Shares through (Depository Receipt Mechanism) Scheme 1993, Follow on Public Issue or by any other appropriate mode as decided by the Capital Raising Committee.

CRISIL lost 2.98% as the company's consolidated net profit fell 13% to Rs 49.57 crore on 11% growth in income from operations to Rs 255 crore in Q1 March 2013 over Q1 March 2012. In the corresponding quarter of the previous year, there was a onetime revenue impact of Rs 7.30 crore on account of certain price renegotiations, CRISIL said.

The operating environment in India, the US and Europe, the principal markets for CRISIL, remained challenging during the quarter. While India witnessed muted economic growth with a weak overall investment climate, there was continued pressure on the global banking industry. Despite the challenging environment, growth in CRISIL Global Research & Analytics (GR&A) business was driven by the acquisition of Coalition and new client additions, CRISIL said. In India, revenue growth was driven by SME Ratings and a pick-up in the securitisation transactions towards the end of the quarter, the rating agency said.

The CRISIL Research business, too, has been impacted by the slowdown in the economy and volatility in the capital markets, CRISIL said. During the quarter, CRISIL Research won a prestigious mandate from the National Pension Systems (NPS) Trust, set up under Pension Fund Regulatory and Development Authority (PFRDA), to review the performance of the pension fund managers under the NPS. The uncertain investment climate and delayed decisionmaking had a bearing on the infrastructure advisory and risk solutions businesses, CRISIL said. However, the company won several prestigious assignments in the urban infrastructure space, cementing its position as the leading provider of advisory services in the urban sector in India, the company said.

IT stocks fell on firm rupee. A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports. The rupee was trading at 53.03/04, higher than its previous close of 54.20/21.

IT major TCS was down 1.04% to Rs 1,444. The stock hit high of Rs 1,485 and low of Rs 1,429. The company after trading hours on Wednesday, 17 April 2013, said its consolidated net profit rose 1.9% to Rs 3616 crore on 2.2% growth in revenue to Rs 16430 crore in Q4 March 2013 over Q3 December 2012. The company clocked volume growth of 4.4% on sequential basis in the fourth quarter.

Net profit jumped 33.6% to Rs 13917 crore on 28.8% growth in revenue to Rs 62989 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The company clocked volume growth of 16.8% in FY 2013 over FY 2012.

TCS said there was balanced growth across markets and industries in FY 2013. All industry verticals grew in double digits in FY 2013, it said. TCS' full service capabilities continue to be leveraged by customers with new service lines growing at a fast pace. The infrastructure services segment grew 47%, Business Process Outsourcing grew 46% while Assurance Services, Enterprise Solutions and Global Consulting grew by 33%, 25% and 52% respectively, TCS said.

Commenting on the FY 2013 results, Mr. N. Chandrasekaran, CEO and MD, TCS, said: "TCS has delivered a year of strong growth with all markets and industry segments growing in double digits. Our ability to co-create with customers, remain relevant to their business and our investments in digital technologies are delivering tangible value as customers optimize, transform and growth."

With regard to the outlook for the current year ending 31 March 2014 (FY 2014), Mr. Chandrasekaran said: "We remain confident that 2013-14 will bring greater opportunities as technology plays an increasing role in reimagining business globally. We continue to identify new growth engines and are investing ahead of the curve in products, platforms and intellectual property that is of great relevance to our customers and their business growth. As an industry leader, we remain focused on sustaining our momentum."

Rajesh Gopinathan, Chief Financial Officer, TCS, said: "Our growth has been well-rounded in FY 2013 and we have endeavored to maintain our profitability despite stiff headwinds and increased volatility through the year. We continue to ensure cost discipline at an operational level while supporting diversified business growth."

Wipro dropped 2.44%. The company announces Q4 results tomorrow, 19 April 2013. The Securities & Exchange Board of India (Sebi) has exempted Wipro from a rule that prevents promoters of companies from selling their stakes within 12 weeks of another deal. Wipro after market hours on 15 April 2013 said that the Securities & Exchange Board of India (Sebi) has accepted the company's request and permitted the promoter and promoter group (including the entities that carried out the inter-se transfer) to divest through the offer for sale (OFS) route during the twelve weeks cool off period. Earlier, Wipro had on 25 March 2013 applied to SEBI seeking a specific relaxation exemption from the twelve week cooling off period for carrying out OFS through the stock exchange mechanism following the inter-se transfer amongst the promoter and promoter group entities on 15 March 2013.

HCL Technologies fell 2.02% to Rs 736. The stock had hit a record high of Rs 809 in intraday trade on Wednesday, 17 April 2013. The company before trading hours on Wednesday, 17 April 2013, said its consolidated net profit as per US accounting standards rose 7.8% to Rs 1040 crore on 2.4% growth in revenue at Rs 6425 crore in Q3 March 2013 over Q2 December 2012. Earnings before interest, taxation, deprecation and amortization (EBITDA) rose 1.6% to Rs 1439.30 crore in Q3 March 2013 over Q2 December 2012. The EBITDA margin declined to 22.4% in Q3 March 2013 from 22.6% in Q2 December 2012.

Infosys rose 0.58%. The company on Tuesday, 16 April 2013, said it has signed a major new strategic partnership with Queen's University Belfast aimed at combating the global cyber security threat. The collaboration brings together Infosys with Queen's University Belfast's Centre for Secure Information Technologies (CSIT), one of UK's largest and most prestigious university cyber security research labs, and Invest Northern Ireland, the Northern Ireland government's regional business development agency.

Infosys has forecast a tepid 6% to 10% growth in revenue in both rupee terms and dollar terms for the year ending 31 March 2014 (FY 2014) as the company says that global economic uncertainties remain challenging for the IT industry. The revenue growth outlook is lower than industry body Nasscom's projection of 12% to 14% growth in IT exports in the current fiscal year. Infosys has not given full year earnings guidance this time. Infosys had earlier stopped offering quarterly guidance in July 2012.

Capital goods stocks gained on renewed buying. ABB (up 0.38%), Bhel (up 1.75%), Bharat Electronics (up 0.63%), Siemens (up 3.04%) and Thermax (up 1.2%) edged higher.

L&T advanced 3.69%. The company on 12 April 2013 said that it would acquire 50% stake in L&T-Komatsu (LTK) held by Komatsu Asia & Pacific Pte, a wholly owned subsidiary of Komatsu, Japan. With this buy-out, LTK will become a wholly owned subsidiary of L&T. LTK will continue to manufacture construction equipment and hydraulic components. Komatsu will be responsible for the production of Komatsu equipment including hydraulic excavators, L&T said in a statement.

As a result of this transaction, the companies expect to able to provide premium products and services to customers, and maintain leadership position in construction & mining equipments business, offering state-of-the-art machines with highest level of quality and latest designs from Komatsu, L&T said. L&T will continue to be responsible for marketing, sales and product support in India for the Komatsu range of products, assuring customers of the highest level of Support, L&T said in a statement.

Realty stocks gained as slowing wholesale price inflation has raised rate cut expectations. Purchases of both residential and commercial property are largely driven by finance. DLF (up 1.46%), D B Realty (up 2.11%), HDIL (up 3.58%), Unitech (up 2.4%), and Sobha Developers (up 0.87%) gained.

Titan Industries jumped 5.28% to Rs 259. Shares of the gold jewellery retailer surged on expectations that the recent steep fall in gold price will boost sales of gold jewellery. As per reports, jewellery retailers have witnessed brisk sales this week as gold prices declined sharply in just a few days after 12 years of sustained upside.

The stock market remains closed tomorrow, 19 April 2013, on account of Ram Navmi.

The focus of the market is on Q4 results. Wipro announces Q4 results tomorrow, 19 April 2013. Cairn India announces Q4 results on 22 April 2013. UltraTech Cement announces Q4 results on the same day. HDFC Bank announces Q4 results on 23 April 2013. Axis Bank will announce its Q4 March 2013 results on 24 April 2013. Jindal Steel & Power declares its Q4 results on 25 April 2013. Hero MotoCorp, ICICI Bank and Maruti Suzuki unveil Q4 results on 26 April 2013. IDFC announces Q4 results on 1 May 2013.

Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on 3 May 2013. Grasim announces Q4 March 2013 results on 4 May 2013. HDFC unveils Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Dr. Reddys Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013.

India's exports declined 1.76% to $300.6 billion in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012), mainly on account of slowdown in the global economy, Commerce and Industry Minister Anand Sharma said today, 18 April 2013. The government had fixed an export target of $360 billion for FY 2013 which had been missed by a wide margin. The declining exports pushed up the trade deficit during FY 2013 to $190.91 billion from $183.4 billion in FY 2012.

The government today, 18 April 2013, announced a host of steps including extension of the zero-duty export Export Promotion Capital Goods (EPCG) scheme beyond March 2013 to encourage exports at the time of announcing the annual supplement to the Foreign Trade Policy. The EPCG scheme, which is a major incentive programme of the government, would be available to all sectors, the Minister said. Besides other schemes, the Minister also announced incentives for Special Economic Zones (SEZs) to encourage exports.

Reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms could result in supply of equity in the market over the next few months. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 30 June 2013, while the deadline for state-run firms is 31 August 2013.

PSU divestment will also add to share sale glut in FY 2014. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014.

The Reserve Bank of India (RBI) will announce the Monetary Policy Statement 2013-14 on 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 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 government revised upwards WPI inflation for January 2013 to 7.31% from 6.62% reported earlier. Build up inflation rate in the financial year so far was 5.96% compared to a build up rate of 7.69% in the corresponding period of the previous year, the Ministry of Commerce & Industry said in a statement.

The combined consumer price inflation for rural and urban India stood at 10.39% in March 2013, lower than 10.91% in February 2013, recent data showed. Inflation under the category 'food and beverages' stood at 12.42%, the data showed.

The index of industrial production rose 0.6% in February 2013, data released by the government on 12 April 2013 showed. Industrial production rose 0.9% during the period April 2012 to February 2013.

The India Meteorological Department will issue its initial forecast of 2013 southwest monsoon in this month.

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.

On the political front, the Congress led UPA government has been reduced to a minority government, with DMK removing support to the government in March this year citing differences on the issue of atrocities on Tamils in Sri Lanka. Earlier, the Trinamool Congress withdrew support to the government in September last year as it opposed economic reforms. The Samajwadi Party (SP) along with its regional rival in Uttar Pradesh Bahujan Samaj Party (BSP) provide outside support to the UPA government. SP has 22 MPs in Lok Sabha and BSP has 21 MPs.

The second half of the Budget session of the Parliament begins on 22 April 2013. The government has lined up a number of key bills for consideration and passing during the Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008. The Budget Session of the Parliament ends on 10 May 2013.

Assembly elections will be held in Karnataka on 5 May 2013 and the counting of votes and results of the election will be declared on 8 May 2013.

European markets rose in choppy trade on Thursday, a day after most major bourses closed at 2013 lows and extended losses into a fourth straight trading day. Key benchmark indices in UK, France and Germany were up by 0.51% to 0.66%.

Asian stocks were mostly down on Thursday as sentiment took hits from falling commodity prices and weak US corporate results, with some technology stocks dropping after a sharp fall in Apple Inc. Key benchmark indices in Hong Kong, South Korea, Taiwan and Japan were down by 0.23% to 1.24%. Key benchmark indices in Singapore, China and Indonesia were up by 0.15% to 0.28%.

Trading in US index futures indicated the Dow could rise 46 points at opening bell on Thursday, 18 April 2013. US stocks fell sharply on Wednesday, 17 April 2013, led by a sharp drop in Apple shares on worries about slowing demand for its products and weaker-than-expected results from Bank of America.

Powered by Capital Market - Live News