Key benchmark indices reversed intraday losses in late trade as gains in European stocks boosted sentiment. The barometer index, the S&P BSE Sensex, was provisionally up 10.26 points or 0.05%, up close to 140 points from the day's low and off about 30 points from the day's high. The market breadth, indicating the overall health of the market, was negative. Index heavyweight Reliance Industries (RIL) edged higher after the company's telecom arm and Bharti Airtel signed an agreement for international data connectivity. Shares of Bharti Airtel edged lower in choppy trade.
Index heavyweight and cigarette major ITC edged higher in choppy trade. Cairn India dropped after Q4 results. Capital goods pivotals edged lower. Shares of two-wheeler makers gained. HDFC Bank fell on profit booking after reporting strong Q4 results.
The market edged lower amid initial volatility as weakness in Asian stocks weighed on sentiment. The S&P BSE Sensex reversed direction after a higher opening took the index to 5-week high. The Sensex trimmed initial losses in morning trade. The Sensex extended losses to hit fresh intraday low in mid-morning trade. The market weakened further to hit fresh intraday low in early afternoon trade. A bout of volatility was witnessed as key benchmark indices recovered after hitting fresh intraday low in afternoon trade as European markets opened higher. The Sensex hovered in negative terrain in mid-afternoon trade. Key benchmark indices reversed intraday losses in late trade as gains in European stocks boosted sentiment.
The market may remain volatile on Thursday, 25 April 2013, as traders roll over positions in the futures & options (F&O) segment from the near month April 2013 series to May 2013 series. The April 2013 F&O contracts expire on Thursday, 25 April 2013. The stock market remains shut tomorrow, 24 April 2013, on account of Mahavir Jayanti.
Foreign institutional investors (FIIs) bought shares worth a net Rs 915.82 crore on Monday, 22 April 2013, as per provisional data from the stock exchanges.
As per provisional figures, the S&P BSE Sensex was up 10.26 points or 0.05% to 19,180.09. The index rose 40.43 points at the day's high of 19,210.26 in opening trade, its highest level since 19 March 2013. The index fell 127.75 points at the day's low of 19,042.08 in early afternoon trade.
The CNX Nifty was up 0.90 points or 0.02% to 5,835.30, as per provisional figures. The index hit a high of 5,844.30 in intraday trade. The index hit a low of 5,791.55 in intraday trade.
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The total turnover on BSE amounted to Rs 1887 crore, lower than Rs 2180.15 crore on Monday, 22 April 2013.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,218 shares declined and 1,127 shares rose. A total of 126 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks fell while rest of them rose.
Index heavyweight Reliance Industries (RIL) rose 1.67% to Rs 802.90. The scrip hit high of Rs 805.25 and a low of Rs 786.50. On the back of a surge in refining margins, 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. The company reported Q4 March 2013 results on 16 April 2013.
At the time of announcement of the results, RIL said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the net 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
Bharti Airtel fell 0.73% to Rs 298.55. The stock hit high of Rs 307.60 and low of Rs 296.80. Bharti Airtel and RIL's telecom arm -- Reliance Jio Infocomm -- today, 23 April 2013, announced that they have signed an Indefeasible Right to Use (IRU) agreement, under which Bharti will provide Reliance Jio data capacity on its i2i submarine cable. i2i connects India to Singapore and is wholly owned by Bharti. Reliance Jio will utilize a dedicated fiber pair on i2i. The high speed link will enable Reliance Jio to extend its network and service reach to customers across Asia Pacific region. It will connect Reliance Jio directly to the world's major business hubs and ISPs, thereby, helping the operator to meet the bandwidth demand and provide ultra-fast data experience to its customers.
The deal marks Reliance Jio's continued efforts to rapidly grow and expand both its international and domestic network and infrastructure by building an ecosystem with multiple carriers and service providers. Bharti and Reliance Jio will continue to build on this strategic framework and consider other mutual areas of cooperation and development to leverage their respective assets towards offering their customers a much richer experience, the two companies said in a joint statement.
In a separate announcement, Bharti Airtel today, 23 April 2013, said that it has entered into a definitive agreement with the Warid Group (Warid) to fully acquire Warid Telecom Uganda. With this, Airtel will further consolidate its position as the second largest mobile operator in Uganda with a combined customer base of over 7.4 million and market share of over 39%. The agreement aims to bring together the strengths of Airtel and Warid in Uganda and offer benefits to customers in the form of a superior and wider network, affordable voice and data services, and superior customer care.
Airtel currently has 4.6 million customers in Uganda. The existing 2.8 million Warid customers in Uganda will join Airtel's global network that serves over 269 million customers.
Speaking on the agreement, Mr. Manoj Kohli, MD and CEO (International), Bharti Airtel said, "We are delighted at this agreement with Warid, which also happens to be the first in-market acquisition in Bharti Airtel's history. We believe this market consolidation offers great synergies by bringing together the best of Airtel and Warid to better serve customers in Uganda and drive forward our vision of offering affordable best in-class services in Africa. This development will translate to a healthier telecom sector in Uganda which will be ready to invest & grow in wireless broadband & m-Commerce services".
Index heavyweight and cigarette major ITC rose 0.19% to Rs 317.50. The stock hit record high of Rs 318 in late trade today, 23 April 2013. The stock hit low of Rs 314.10 in intraday trade today, 23 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.
Cairn India declined 1.4% after Q4 results. The company's consolidated net profit rose 17.26% to Rs 2563.60 crore on 29.93% growth in total income to Rs 4582.52 crore in Q4 March 2013 over Q4 March 2012. The oil exploration firm announced the results after trading hours on Monday, 22 April 2013.
Cairn India's consolidated net profit excluding foreign exchange fluctuation and impact of the reorganization, jumped 56% to Rs 11606.30 crore on 48% growth in revenue to a record Rs 17524.10 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). Earnings before interest taxation, depreciation and amortisation (EBITDA) jumped 41% to Rs 13033.20 crore in FY 2013 over FY 2012.
Commenting on the financial performance, Elango P, Whole Time Director and Interim CEO, Cairn India said that the operating environment has substantially improved with key approvals coming in at a faster pace that enabled the company to ramp up Mangala production, bring Aishwariya field online, commence gas sales and most importantly re-commence exploration in Rajasthan. He said that the company has initiated the largest ever exploration and appraisal programme to unlock further potential in Rajasthan as well as focus on next stage of growth beyond Rajasthan. Commensurate with the development and exploration activity across the existing portfolio, the company has planned a net capital investment of $3 billion through FY 2015-16.
HDFC Bank declined 1.75% on profit booking after the private sector bank reported strong Q4 results. The stock had witnessed pre-result rally. The stock jumped 12.68% to settle at Rs 699.25 on BSE on Monday, 22 April 2013, from a recent low of Rs 620.55 on 9 April 2013.
HDFC Bank's net profit rose 30.06% to Rs 1889.84 crore on 21.08% increase in total income to Rs 11127.54 crore in Q4 March 2013 over Q4 March 2012. The result was announced during trading hours today, 23 April 2013. Net profit rose 30.18% to Rs 6726.28 crore on 24.54% increase in total income to Rs 41917.49 crore in the year ended March 2013 over the year ended March 2012.
The bank's ratio of net non-performing assets (NPA) to net advances stood at 0.2% as on 31 March 2013, unchanged from the level at end December 2012 and end March 2012. The bank's ratio of gross NPA to gross advances stood at 0.97% as on 31 March 2013, compared with 1% as on 31 December 2012 and 1.02% as on 31 March 2012.
Provisions and contingencies fell 26.99% to Rs 300.54 crore in Q4 March 2013 over Q4 March 2012. The NPA provisioning coverage ratio as on 31 March 2013 stood at 80%
The CASA ratio increased from 45.4% as on 31 December 2012 to 47.4% as on 31 March 2013.
Capital goods stocks edged lower. L&T, Crompton Greaves, Punj Lloyd and Bhel shed by 0.94% to 1.81%. But, Siemens rose 2.59%.
Auto stocks were mostly lower. Tata Motors and M&M shed by 1.16% to 1.18%. Maruti Suzuki India rose 0.06%, with the stock reversing intraday losses. The Minister of Heavy Industries & Public Enterprises has requested the Ministry of Finance either to withdraw the additional 3% excise duty imposed on SUVs in the current Union Budget or to exempt all such vehicles classified as SUV that have an assessable value up to Rs 10 lakh. Giving this information in written reply to a question in the Rajya Sabha today, 23 April 2013, The Minister of Heavy Industries & Public Enterprises Mr. Praful Patel said that the auto industry in the country is going through difficult times and the notification issued by the Finance Ministry for the levy of additional 3% excise duty will further impact the industry and will also discourage the consumers as the commonly used vehicles in rural and semi-urban area have come under this additional 3% excise duty.
Shares of two-wheeler makers gained. Hero MotoCorp gained 2.93%. Bajaj Auto rose 2.61%. PSU OMCs announced cut in petrol price by Re 1 per litre, excluding value added tax (VAT), effective midnight 15 April 2013 because of fall in international oil prices. The recent cut in petrol price comes on the back of 85 paise a litre reduction in rates on 2 April 2013 and Rs 2 a litre decrease effected on 16 March 2013.
Jindal Steel & Power slumped 4.11%. The stock was the top loser from the Sensex pack.
The focus of the market is on Q4 results. Axis Bank will announce its Q4 March 2013 results tomorrow, 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. BPCL announces Q4 results on 29 May 2013.
The Prime Minister's Economic Advisory Council in a report released today, 23 April 2013, projected 6.4% growth in India's GDP for the current fiscal year 2013/14, higher than an estimated 5% growth for the fiscal year 2012/13. In 2013-14, the headline WPI inflation is expected to be around 6%, compared with provisional figure at 5.96% at the end of 2012-13, the PMEAC said.
On the external sector, the Current Account Deficit is expected to ease to 4.7% of GDP in 2013-14 from an estimated 5.1% of GDP in 2012-13. The net FDI inflow is expected at $24 billion in 2013-14 from an estimated $18 billion in 2012-13. In contrast, FII inflows are seen sliding to $18 billion in 2013-14 from an estimated $24 billion in 2012-13, the PMEAC said.
Global growth although projected to pick up in 2013 would continue to remain at modest levels. In such a scenario India's projected growth rate of 6.4% for 2013-14 is relatively high and respectable, the report added.
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 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.
Parliament reconvened for the second half of the Budget Session Monday, 22 April 2013. The session ends on 10 May 2013.
European stock markets edged higher on Tuesday after data showed the pace of region's downturn didn't accelerate in April, although German stocks erased earlier gains after a disappointing reading. Key benchmark indices in UK, France and Germany were up 0.64% to 1.57%.
Markit's flash German composite Purchasing Managers' Index (PMI), measuring growth in both manufacturing and services, shrank for the first time in five months in April. The purchasing managers' index for France rose to a four-month high in April.
Euro-area services and manufacturing output contracted for a 15th month in April as the currency bloc struggled to emerge from a recession. A composite index based on a survey of purchasing managers in both industries held at 46.5, London-based Markit Economics said today. A reading below 50 indicates contraction.
Asian stocks edged lower on Tuesday after a preliminary report showed Chinese manufacturing expanded less than economists estimated. Key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea, Singapore and Taiwan fell by 0.29% to 2.57%.
China's manufacturing is expanding at a slower pace this month, adding to concern that the world's second-biggest economy is faltering. The preliminary report for a Purchasing Managers' Index released by HSBC Holdings Plc and Markit Economics showed a reading of 50.5 for April compared with a final 51.6 for March.
Trading in US index futures indicated that the Dow could fall 10 points at the opening bell on Tuesday, 23 April 2013. US stocks edged higher on Monday as last week's sharp losses brought buyers back to the market and Microsoft Corp shares jumped after an activist investor took a stake in the company.
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