Key benchmark indices eked out small gains after provisional data showed that foreign funds remained net buyers of Indian stocks on Wednesday, 22 January 2014. The barometer index, the S&P BSE Sensex, was provisionally up 46.75 points or 0.22%, up close to 120 points from the day's low and off about 20 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
L&T rose after the company reported a strong growth in order inflow in Q3 December 2013 at the time of announcing its Q3 result after trading hours on Wednesday, 22 January 2014. Shares of other capital goods companies also edged higher after L&T reported good Q3 results. Telecom stocks edged higher after telecom towers firm Bharti Infratel said at the time of announcement of its Q3 December 2013 results today, 23 January 2013, that the regulatory environment in telecom sector is improving and more clarity will emerge after the spectrum auction on 3 February 2014.
Indian stocks gained for the fourth day in a row today, 23 January 2014.
A bout of volatility was witnessed as key benchmark indices trimmed losses after a weak start triggered by weak Asian stocks. Key benchmark indices swung alternately between positive and negative terrain near the flat line in mid-morning trade. Key benchmark indices languished in negative zone in early afternoon trade. Key benchmark indices moved into positive zone from negative zone in afternoon trade. Key benchmark indices extended gains and hit fresh intraday high in mid-afternoon trade as European stocks reversed initial losses. The Sensex hit its highest level in more than six weeks. The 50-unit CNX Nifty hit three-week high.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Wednesday, 22 January 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 279.45 crore on Wednesday, 22 January 2014, as per provisional data from the stock exchanges.
As per provisional figures, the S&P BSE Sensex was up 46.75 points or 0.22% to 21,384.42. The index rose 71.99 points at the day's high of 21,409.66 in late trade, its highest level since 9 December 2013. The index dropped 72.96 points at the day's low of 21,264.71 in early trade.
Also Read
The CNX Nifty was up 9 points or 0.14% to 6,347.95, as per provisional figures. The index hit a high of 6,355.60 in intraday trade, its highest level since 2 January 2014. The index hit a low of 6,316.40 in intraday trade.
The total turnover on BSE amounted to Rs 1863 crore, lower than Rs 1906.20 crore on Wednesday, 22 January 2014.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,453 shares fell and 1,255 shares rose. A total of 132 shares were unchanged.
AXIS Bank (up 2.2%), GAIL (India) (up 2.14%) and Sun Pharmaceutical Industries (up 1.98%) edged higher from the Sensex pack.
L&T rose 2.66% after the company reported a strong order inflow in Q3 December 2013. The company said after market hours on Wednesday, 22 January 2014, that its recurring profit after tax rose 12% to Rs 1136 crore on 12% growth in gross revenue to Rs 14534 crore in Q3 December 2013 over Q3 December 2012. L&T said the results are excluding the performance of the hydrocarbon business segment, which has been transferred to a wholly-owned subsidiary of the company with effect from 1 April 2013. Consequently, the figures for the previous periods have been restated to make a like-to-like comparison, L&T said.
L&T said its order inflow rose 21% to Rs 21722 crore in Q3 December 2013 over Q3 December 2012, shrugging off prevailing weak investment climate. The international order inflow during the quarter at Rs 8237 crore, more than doubled on the back of major orders secured in the Middle East. The order backlog rose 13% year-on-year at Rs 171184 crore as on 31 December 2013. International order book constituted 15% of the total order book.
L&T has pruned its order inflow forecast for the year ending 31 March 2014, to 15% from 20% earlier due to the poor investment climate in India.
L&T said that while the company continues to focus on maximizing the domestic opportunities, it is strengthening its international presence in select overseas markets. Competitive value proposition to the clients and disciplined execution have helped the company sustain its profitable growth momentum, L&T said. Presence in the diverse sectors, healthy order book, proven track record and strong balance sheet are the key enablers for the company to steer through the near to medium challenges and meet its growth aspirations, L&T said in a statement.
Shares of other capital goods companies also edged higher after L&T reported good Q3 results. ABB (up 0.27%), Bhel (up 0.56%), Crompton Greaves (up 0.34%) and Thermax (up 0.62%) gained.
Telecom stocks edged higher after telecom towers firm Bharti Infratel said at the time of announcement of its Q3 December 2013 results today, 23 January 2013, that the regulatory environment in telecom sector is improving and more clarity will emerge after the spectrum auction on 3 February 2014. Bharti Airtel (up 1.66%), Idea Cellular (up 0.19%), and Reliance Communications (up 0.38%) gained.
With price hikes and with data revenue witnessing strong growth, telecom operators have started focusing on roll out of 3G networks and that this momentum will likely increase in the coming quarters, Bharti Infratel said.
Essar Ports rose 0.77% after consolidated net profit rose 4% to Rs 94 crore on 9% increase in revenue to Rs 398.80 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours today, 23 January 2014.
Essar Ports' EBITDA (earnings before interest, taxes, depreciation and amortization) rose 10% to Rs 324.20 crore in Q3 December 2013 over Q3 December 2012.
Speaking on the key highlights for the quarter, Mr. Rajiv Agarwal, Managing Director, Essar Ports said, "Our financial results highlight the consistent performance we have shown over the past few years. ln the coming quarters, we expect to handle higher cargoes driven by increased offtake from anchor customers and an increase in third-party cargo. Our focus is on completion of existing projects, which will double our volumes in the next 2 to 3 years."
Bharat Bijlee gained 8.16% after reporting net profit of Rs 0.70 crore in Q3 December 2013 as compared to net loss of Rs 1.58 crore in Q3 December 2012. The Q3 result was announced during market hours today, 23 January 2014.
Bond prices dropped for the second day in a row after a committee set up by the Reserve Bank of India in its report submitted to the central bank early this week recommended that the central bank should start using a consumer-price inflation target to determine monetary policy. The panel's recommendations if accepted by the central bank may result in increase in interest rates to achieve the panel's 4% consumer-price inflation target by 2016. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.6448%, higher than its close of 8.6085% on Wednesday, 22 January 2014. Bond yield and bond prices move in opposite direction.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014. The RBI kept its main lending rate viz. the repo rate unchanged after its last policy review in December and said at that time that it expected inflation to ease in the following months.
Assuring global investors that India is prepared to face the impact of the US Fed tapering, finance minister P Chidambaram on Wednesday said the country is poised to clock 5% growth in 2013-14 and over 6% in 2014-15. Addressing a meeting of the World Economic Forum (WEF), Chidambaram said the Indian economy has "stabilised and it is poised to return to high-growth path and step by step we will go back to 8% growth rate".
On the impact of the calibrated tapering of bond purchases by the US central bank, Chidambaram said: "We were concerned in May. But now I think we have done a lot of preparatory work. There will be some consequences in developing and emerging economies but I think we are better prepared for the taper than when we were surprised in May".
European stocks alternately swung between gains and losses on Thursday, 23 January 2014, after a survey showed growth in euro-zone business activity picked up in January. Key benchmark indices in Germany and UK were up 0.02% to 0.26%. France's CAC 40 was off 0.01%.
The manufacturing PMI for the euro region rose to a 32-month high in January, beating analysts' expectations and providing further evidence the region is recovering. On a country-specific level, Germany's manufacturing PMI rose to a 32-month high of 56.3, beating analyst expectations. France's manufacturing sector continued to contract, albeit at a slower pace than in December. A level above 50 signals expansion.
The preliminary euro-zone composite PMI--a measure of activity in the manufacturing and services sectors--rose to 53.2 from 52.1 in December, signaling the most rapid expansion since June 2011.
Asian stocks declined on Thursday, 23 January 2014, after a private gauge of China's manufacturing in January unexpectedly contracted. Key benchmark indices in Japan, South Korea, Singapore, China, Taiwan and Hong Kong were down 0.47% to 1.51%. Indonesia's Jakarta Composite rose 0.41%.
A preliminary reading of HSBC's January China manufacturing Purchase Manufacturing Index fell to 49.6, below the 50 boundary between expansion and contraction, and down from 50.5 in the final result for December. It was the first contraction for the sector in six months, according to the HSBC data.
South Korea's economic growth slowed as expected in the final quarter of last year on weaker construction spending, despite robust exports that reaffirms a recovery in Asia's fourth-largest economy. Gross domestic product rose a seasonally adjusted 0.9% in the October-December period from the previous quarter, when the economy expanded 1.1%, the Bank of Korea said on Thursday, 23 January 2014.
Trading in US index futures indicated that the Dow could drop 50 points at the opening bell on Thursday, 23 January 2014. US stocks closed mostly higher on Wednesday after trading in a narrow range for the bulk of the session. Markets shrugged off largely disappointing earnings, but results from IBM weighed on the blue chips.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014.
Powered by Capital Market - Live News