Key benchmark indices surged as the rupee recovered in choppy trade after the government raised import duty on gold and silver ahead of peak festival-season demand as part of efforts to curb dollar outflows and narrow a wide current-account deficit. The barometer index, the S&P BSE Sensex, the 50-unit CNX Nifty, both, hit over one-week high. The Sensex was provisionally up 291.62 points or 1.54%, up 373.79 points from day's low and off 4.50 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Gains in world stocks underpinned sentiment.
Mahindra & Mahindra (M&M) edged higher in volatile trade after the company announced good Q1 results. ONGC fell in choppy trade after the company reported weak Q1 result. Hindalco Industries declined in volatile trade after its US subsidiary Novelis Inc. reported weak Q1 result on Monday, 12 August 2013. ICICI Bank reversed direction after hitting a 52-week low. DLF surged after the company reported turnaround financial performance on sequential basis in Q1 June 2013.
Indian Oil Corporation dropped in choppy trade after declaring Q1 June 2012. Oil India dropped after reporting weak Q1 result. Godrej Consumer Products gained on high volume after multiple bulk deals were executed on the counter. Shares of jewellery retailer Titan Industries dropped after the government raised import duty on gold to 10% from 8%. Sintex Industries jumped on high volume.
Key benchmark indices reversed direction after an initial slide triggered by weak industrial production data for June 2013 released by the government after trading hours on Monday, 12 August 2013. Key benchmark indices pared gains after striking fresh intraday high in morning trade. The Sensex moved past the psychological 19,000 mark. Key benchmark indices extended intraday gains and hit fresh intraday high in mid-morning trade. The Sensex and 50-unit CNX Nifty, both, hit one-week high. The market extended gains in early afternoon trade. The market hit fresh intraday high in afternoon trade. Key benchmark indices extended gains to hit fresh intraday high in mid-afternoon trade. The market surged in late trade as the rupee recovered in choppy trade after the government raised import duty on gold and silver ahead of peak festival-season demand as part of efforts to curb dollar outflows and narrow a wide current-account deficit.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 12 August 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 408.35 crore on Monday, 12 August 2013, as per provisional data from the stock exchanges.
The rupee recovered against the dollar in choppy trade after the government raised import duty on gold and silver ahead of peak festival-season demand as part of efforts to curb dollar outflows and narrow a wide current-account deficit. The partially convertible rupee was hovering at 61.15, stronger than its close of 61.2750/2850 on Monday, 12 August 2013. The rupee had record low of 61.80 in intraday deals on 6 August 2013.
As per provisional closing, the S&P BSE Sensex was up 291.62 points or 1.54% to 19,238.60. The index jumped 296.12 points at the day's high of 19,243.10 in late trade, its highest level since 5 August 2013. The index fell 82.17 points at the day's low of 18,864.81 in early trade.
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The CNX Nifty was up 91.55 points or 1.63% to 5,703.95. The index hit a high of 5,704.75 in intraday trade, its highest level since 5 August 2013. The index hit a low of 5,578.90 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,477 shares gained and 936 shares fell. A total of 151 shares were unchanged.
The total turnover on BSE amounted to Rs 1952 crore, higher than Rs 1681 crore on Monday, 12 August 2013.
Among the 30-share Sensex pack, 25 stocks gained and only five of them declined. NTPC (up 4.34%), Tata Motors (up 3.99%) and Bajaj Auto (up 3.2%) edged higher from the Sensex pack.
ICICI Bank surged 3.2% to Rs 893.95. The stock reversed direction after hitting a 52-week low of Rs 851 in intraday trade today, 13 August 2013.
Tata Motors surged after its British luxury car unit Jaguar Land Rover (JLR) reported strong sales for July 2013. The stock rose 3.99% to Rs 292.20. JLR's sales jumped 21% to 31,611 units in July 2013 over July 2012. Sales of the Jaguar brand of vehicles jumped 65% to 6,157 units in July 2013 over July 2012. Land Rover sales rose 14% to 25,454 vehicles in July 2013 over July 2012.
Mahindra & Mahindra (M&M) edged higher in volatile trade after the company announced good Q1 results during trading hours. The stock rose 1.44% to Rs 872.50. The scrip hit high of Rs 897.85 and low of Rs 866.45. M&M said that combined net profit of the company and its 100% subsidiary Mahindra Vehicle Manufacturers (MVML) rose 16.9% to Rs 909.70 crore in Q1 June 2013 over Q1 June 2012. The combined gross revenue of M&M and MVML rose 8% to Rs 10801.50 crore in Q1 June 2013 over Q1 June 2012. MVML, located at Chakan near Pune in Maharashtra, has been set up as a 100% subsidiary of M&M with a view to source contemporary products for expanding the market offering of M&M
M&M said that the good growth in the profits of the combined entity (M&M and MVML) in the quarter was due to good volume performance by farm equipment sector and tight control on expenses. The operating margin of the combined entity during the quarter improved to 14.4% in Q1 June 2013, from 13.9% in Q1 June 2012.
M&M said its recent acquisition of Ssangyong Motor Company, South Korea broke even for the first time since its acquisition in March 2011, with profit after tax of Rs 41 crore in Q1 June 2013.
With regard to future business outlook, M&M said that a fair degree of macroeconomic turbulence in the near term seems inevitable and hence the company, at this point, maintains a cautious and watchful outlook on the economy.
Hindalco Industries declined in volatile trade after its US subsidiary Novelis Inc. reported weak Q1 result on Monday, 12 August 2013. The stock lost 2.77% at Rs 91.15. The stock hit high of Rs 93.95 and low of Rs 89.80. Novelis' net profit fell 84.61% to $14 million on 5.56% decline in net sales to $2.408 billion in Q1 June 2013 over Q1 June 2012. Excluding certain tax-effected items, net profit for Q1 June 2013 was $21 million. Novelis is a subsidiary of Hindalco Industries.
Adjusted EBITDA declined 21.23% to $204 million in Q1 June 2013 over Q1 June 2012. Novelis said that latest quarter's results included a non-recurring $14 million amendment to the company's employee Long-Term Incentive Plan. In addition, the company faced continued pricing headwinds and softer than expected demand for beverage can sheet partially driven by unfavorable weather conditions.
Novelis said the decline in sales was primarily due to a 7% decline in average aluminum prices, lower shipments, and lower conversion premiums.
"Despite the challenges we faced in the first quarter, we maintained financial discipline through good cost control and will continue this focus on cost containment going forward. In addition, our global strategic expansions and favorable demand trends supported by the 2014 World Cup in Brazil and automotive material substitution towards aluminum sheet will also help drive our business forward in the second half of this fiscal year", said Phil Martens, President and Chief Executive Officer for Novelis.
On standalone basis, Hindalco Industries' net profit rose 11.52% to Rs 474 crore on 3.15% decline in revenue from operations to Rs 5838 crore in Q1 June 2013 over Q1 June 2012. Eearnings before interest, taxation, depreciation and amortization (EBITDA) rose 3.45% to Rs 479 crore in Q1 June 2013 over Q1 June 2012. Hindalco announced the standalone results during trading hours today, 13 August 2013.
Other income for Q1 June 2013 includes non-recurring income of Rs 203 crore, sharply higher than Rs 130 crore in Q1 June 2012.
Hindalco said that the performance in Q1 June 2013 was achieved despite adverse macro-economic headwinds. The average aluminium prices on LME dropped by around 7% on year on year basis in Q1 June 2013. This sharp fall in prices was partially cushioned by the depreciating rupee, Hindalco said. As in the corresponding quarter of last year, the copper business carried out a planned shutdown in one its smelters that resulted in a lower than normal level of production, Hindalco said.
Hindalco Industries said that lower metal prices led to a 3% drop in sales revenue in Q1 June 2013.
Finance costs during the quarter were higher on account of higher average borrowing compared to Q1 June 2012. Finance costs surged 83.95% to Rs 149 crore in Q1 June 2013 over Q1 June 2012.
Hindalco Industries said that there has been a significant progress on all projects being implemented by the company and its subsidiary Utkal Alumina International (UAIL). The company also said that in view of the delays in getting various regulatory approvals and the current uncertain economic environment, the company is re-evaluating its investment strategy with respect to its proposed Aditya Refinery and Jharkhand Aluminium Projects.
On future business outlook, the company said that its focus is now on ramping up the new projects already on stream. Depressed LME prices in an otherwise inflationary scenario pose a significant challenge, Hindalo said. However, the company is confident of riding through these challenges with its trust on stabilizing the projects, operational efficiencies and cost control, Hindalco Industries said.
ONGC fell in choppy trade after the company reported weak Q1 result after market hours on Monday, 12 August 2013. The stock was off 0.95% at Rs 275. The scrip hit high of Rs 278.60 and low of Rs 270.90 so far during the day. ONGC's net profit fell 33.92% to Rs 4015.98 crore on 3.35% decline in total income to Rs 20505.03 crore in Q1 June 2013 over Q1 June 2012.
ONGC gave a gross subsidy discount of Rs 12622 crore in Q1 June 2013, which was higher than Rs 12346 crore in Q1 June 2012. The subsidy discount impacted the profit before tax (PBT) by Rs 10803 crore and profit after tax (PAT) by Rs 7131 crore. ONGC shares the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PSD kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.
ONGC said that due to changes in accounting policies, the profit before tax was higher by Rs 222 crore.
ONGC said it has provided for Rs 1611 crore in Q1 June 2013 towards contribution for conversion of Post Retirement Benefit Scheme from Defined Benefit Scheme to Defined Contributory Scheme based on guidelines of the Department of Public Enterprise.
ONGC reported 4 hydrocarbon discoveries in Q1 June 2013 and an additional discovery in August 2013.
Oil India shed 1.3% to Rs 472.20 after the company reported weak Q1 result during market hours today, 13 August 2013. The company's net profit fell 34.5% to Rs 609.08 crore on 12.68% fall in total income to Rs 2449.43 crore in Q1 June 2013 over Q1 June 2012.
Oil India's subsidy sharing burden declined 1.66% to Rs 1982.06 crore in Q1 June 2013 over Q1 June 2012. Oil India shares the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil and and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.
Indian Oil Corporation fell 0.32%. The company reported net loss of Rs 3093.23 crore in Q1 June 2013, lower than net loss of Rs 22450.95 crore in Q1 June 2012. Total income rose 13.82% to Rs 110959 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result during market hours today, 13 August 2013. The company reported an average gross refining margin (GRM) of $1.67 per barrel in Q1 June 2013 compared with a negative GRM of $4.81 per barrel in Q1 June 2012.
The company received discount of Rs 8151.77 crore from crude oil/products purchased from state-run upstream companies in Q1 June 2013, higher than Rs 8041.06 crore discount received in Q1 June 2012.
The company suffered a net under-realisation of Rs 1211.67 crore in Q1 June 2013, lower than Rs 17484.92 crore in Q1 June 2012, on sale of regulated products namely high speed diesel, superior kerosene oil for public distribution system and LPG (domestic).
Based on the approval received from the Government of India, the company has accounted for Budgetary Support amounting to Rs 4261.29 crore for Q1 June 2013 as against Nil in Q1 June 2012 towards under-recoveries on sale of sensitive petroleum products.
The company reported a forex loss of Rs 4024.10 crore in Q1 June 2013, higher than Rs 3187.01 crore in Q1 June 2012.
DLF jumped 9.53% to Rs 151.75 after the company reported turnaround financial performance on sequential basis in Q1 June 2013. The company reported consolidated net profit of Rs 181 crore in Q1 June 2013, as against net loss of Rs 4 crore in Q4 March 2013. Earnings before interest, taxation, depreciation, and amortization (EBITDA) jumped 29% to Rs 1055 crore in Q1 June 2013 over Q4 March 2013. Revenue rose 6% to Rs 2453 crore in Q1 June 2013 over Q4 March 2013. The company announced Q1 result after market hours on Monday, 12 August 2013.
DLF said that the benefit of the revised strategy, which was articulated in February 2013, has now started to flow. The company remains focused on creating a business model of highly stable and predictable earnings, cash flows and long term value creation. The company continues to concentrate its efforts on reduction of net debt by increasing its operating cash flows and non-core divestments thereby increasing ROE's, DLF said.
During the quarter, the company achieved sales bookings of Rs 2430 crore compared to a total of Rs 3800 crore for the full year of FY 2013. DLF received an overwhelming response to the much awaited launches of DLF 5, Gurgaon projects namely The Crest wherein 0.83 million square feet (msf) area was sold at an average price of Rs 17,500 per square feet (psf). The forthcoming project of Camellias was also test marketed and the results were very encouraging, DLF said. Besides DLF 5 launches, the company achieved sales in cities such as Lucknow, Panchkula, New Chandigarh and Banglore, the company said in a statement. The construction of 1.8 msf Mall of India, Noida continues to make progress and is slated to open by end of FY 2014.
DLF said divestment of non-core assets fetched Rs 215 crore in Q1 June 2013.
On Aman divestment, post opening of the process to other bidders/investors and their subsequent positive response specifically in terms of value, DLF said it remains quite confident of a closure of the transaction in a short period of time.
DLF said it remains committed to its debt reduction plan through various divestments. The net debt declined to Rs 20369 crore as on 30 June 2013. The company reiterates its annual guidance of net debt reduction to Rs 17500 crore by end of FY 2014.
DLF continues to maintain a comfortable liquidity position having Rs 3175 crore of cash on its books. With the uptick in sales bookings, which was very evident from the Q1 sales, the cash position is likely to improve substantially, the company said.
Godrej Consumer Products gained 3.94% to Rs 895.05. The stock rose on volume of 12.11 lakh shares, higher than average daily volume of 53,611 shares in past one quarter. Multiple bulk deals were executed on the counter. A bulk deal of 3.60 lakh shares was executed on the counter at Rs 861.10 per share at opening trade on BSE today, 13 August 2013. Second bulk deal of 2.40 lakh shares was executed on the counter at Rs 862 per share at opening trade on BSE today, 13 August 2013. Third bulk deal of 2.40 lakh shares was executed on the counter at Rs 864 per share at 09:16 IST on BSE today, 13 August 2013. Fourth bulk deal of 1.60 lakh shares was executed on the counter at Rs 867.85 per share at 10:09 IST on BSE today, 13 August 2013.
GVK Power & Infrastructure surged 6.09%. The company during market hours today, 13 August 2013, said in a clarification to media reports that it is exploring various options for relieving some of its debt. An option that is being looked at is, raising equity at the airport holding company level to retire the debt raised for the airport acquisition. The company is in discussion with a few investors in this matter, it added.
GVK Power & Infrastructure said that since the discussions are at a preliminary stage, it would not be appropriate for the company to divulge any details at this stage. No sooner the deal crystalizes, the company would be in a position to inform the regulatory authorities on the same.
Shares of jewellery retailer Titan Industries dropped after the government raised import duty on gold to 10% from 8%. The stock shed 0.92% to Rs 263.35.
Most other jewellery stocks shrugged off the hike in import duty on gold. Gitanjali Gems (up 5%), Thangamayil Jewellery (up 0.69%), PC Jeweller (up 1.23%), Shree Ganesh Jewellery House (up 4.48%) and Tara Jewels (up 1.19%) gained.
Sintex Industries jumped 12.32%. The stock rose on volume of 40.30 lakh shares, higher than average daily volume of 7.38 lakh shares in past one quarter.
Industrial production registered a contraction of 2.2% in June 2013, data released by the government after trading hours on Monday, 12 August 2013, showed. Mining production registered a decline of 4.1% and manufacturing production fell 2.2%. Electricity generation remain stagnant in June 2013. As per use-based classification, production of basic goods declined 1.9% in June 2013. Capital goods production fell 6.6%. Production of intermediate goods rose 1.1%. Consumer goods production declined 2.3%. Production of consumer durables declined 10.5%. Production of consumer non-durables rose 5%.
On a cumulative basis, industrial production registered a contraction of 1.1% during April-June 2013.
Inflation based on the consumer price index (CPI) eased in July 2013, data released by the government after trading hours on Monday, 12 August 2013, showed. The combined consumer price index (CPI) for urban and rural India eased to 9.64% in July 2013, from 9.87% in June 2013. The data showed that inflation under the category 'food and beverages' stood at 11.24% in July 2013.
European stocks gained for a fourth straight day on Tuesday, 13 August 2013, with gains underpinned by data that showed the German ZEW economic sentiment indicator jumping to a five-month high in August. Key benchmark indices in France, Germany and UK were up 0.37% to 0.74%.
The ZEW German economic sentiment indicator -- a gauge of investor confidence -- jumped 5.7 points in August to stand at 42 points, the highest level since March, the Mannheim-based Center for European Economic Research, or ZEW, said Tuesday. The assessment of the current economic situation for Germany also improved in August, up 7.7 points to 18.3.
Asian markets were trading higher on Tuesday, 13 August 2013, led by sharp upmove in Japanese shares which rose after yen eased following a report on Tuesday that said the Prime Minister Shinzo Abe is considering a corporate tax cut as a way to offset the impact of a planned two-stage increase in the sales tax. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, South Korea, Japan and Taiwan were up by 0.23% to 2.57%.
Japan's core machinery orders, seen as a leading indicator of capital spending, fell 2.7% in June, the Cabinet Office said Tuesday. Core machinery orders, which exclude volatile purchases for power-generation equipment and ships, can nonetheless vary wildly from month to month: They rose 10.5% in May, fell 8.8% in April, and rose 14.2% in March. A quarterly forecast included with the June results showed expectations the orders would fall 5.7% in the July-September period compared to the previous quarter.
Trading in US index futures indicated that the Dow could gain 57 points at the opening bell on Tuesday, 13 August 2013. US stocks closed a low-volume, light-news session with slight losses on Monday, though the technology-dominated Nasdaq Composite managed a gain.
Data on US retail sales for July 2013 is due for release later in the global day today, 13 August 2013.
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