Key benchmark indices were slightly higher in mid-afternoon trade. Firmness in European and Asian stocks supported domestic bourses. The barometer index, the S&P BSE Sensex, was up 3.49 points or 0.02%, off close to 155 points from the day's high and up about 110 points from the day's low. Index heavyweight and cigarette major ITC edged lower. Another index heavyweight Reliance Industries (RIL) held firm. The market breadth, indicating the overall health of the market, was positive. Auto stocks were mostly higher. Two wheeler markers dropped.
In a bout of initial volatility, key benchmark indices pared entire gains after opening higher tracking mostly firm Asian stocks. The CNX Nifty slipped below the psychological 6,000 mark after regaining that mark at the onset of the trading session. It weakened to hit fresh intraday low in morning trade. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their lowest level in 2-1/2 weeks. It regained positive terrain in mid-morning trade. It regained strength in early afternoon trade. Key benchmark indices pared gains amid volatility in afternoon trade. It was slightly higher in mid-afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 316.23 crore on Thursday, 23 May 2013, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was up 3.49 points or 0.02% to 19,677.82. The index declined 105.84 points at the day's low of 19,568.49 in morning trade, its lowest level since 6 May 2013. The index jumped 158.81 points at the day's high of 19,833.14 in early trade.
The CNX Nifty was up 12.40 points or 0.21% to 5,979.45. The index hit a high of 6,015.30 in intraday trade. The index hit a low of 5,936.80 in intraday trade, its lowest level since 6 May 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,076 shares rose and 991 shares fell. A total of 141 shares were unchanged.
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Among the 30-share Sensex pack, 15 stocks fell and the rest of them rose. Sun Pharmaceutical Industries, Hindalco Industries and TCS shed by 1.78% to 4.2%. Tata Steel, Tata Power Company and L&T rose by 2.87% to 3.51%.
Index heavyweight Reliance Industries (RIL) rose 0.36% to Rs 788. The stock hit high of Rs 795 and low of Rs 780 so far during the day.
Index heavyweight and cigarette major ITC fell 0.44% to Rs 330.90. The stock hit high of Rs 335.70 and low of Rs 328.90 so far during the day. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.
On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.
ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.
Auto stocks were mostly higher. M&M rose 1.12%. Ssangyong Motor part of Mahindra Group, announced on Thursday, 23 May 2013 that the full payment of 80 billion won for the new shares has been received from its majority shareholder Mahindra & Mahindra Group and that the paid-in capital increase was successfully completed. Ssangyong Motors decided to make a third party allotment (Preferential Offer) to Mahindra on 14 February 2013 to Secure investment funds for new products. The most recent increase in the paid-in capital results from the issuance of some 14.545 million new shares (capital increase ratio of 11.9%). All of the new shares will be locked up for one year and the expected listing date is scheduled on 7 June 2013. After this, Mahindra's shareholding ratio in Ssangyong Motor will increase from 69.63% to 72.85%.
As the paid-in capital increase got completed smoothly, Ssangyong Motor's new product development such as the small CUV which will be launched in 2015, will gain further momentum, Furthermore, the company's debt ratio will decline and cash liquidity will improve, which will further strengthen the company's financial soundness.
Also this paid-in capital increase serves as a message to show the strong commitment of the majority shareholder Mahindra and its confidence in the turnaround of Ssangyong Motor. This will greatly boost Ssangyong Motor's external credit Worthiness. Apart from the 80 billion won paid-in capital Mahindra agreed to roll over the Corporate bond worth 95.4 billion won that was scheduled to mature in 2014, by another year: This is an additional source of funds for Ssangyong Motor. With this, the company expects more tangible results from synergy in various areas of sales sourcing etc.
Mahindra invested 522.5 billion won in 2011 to acquire 70% of Ssangyong Motor Company, and since the acquisition, Ssangyong Motor's board of directors has approved a total investment of approx. 500 billion won till now, which includes 295.8 billion won investment for small size new engine development and CUV development projects
India's largest car maker by sales, Maruti Suzuki India rose 2.01%.
Tata Motors declined 0.93%. The company said on 18 May 2013 that TML Holdings, a wholly owned subsidiary of the company, issued and allotted S$350 million in principal amount of 4.25% senior notes due 2018. The net proceeds from the issue will be used for the redemption of preference shares issued to Tata Motors and for general corporate purposes. Australia and New Zealand Banking Group, Citigroup Global Markets Singapore, Deutsche Bank AG, Singapore Branch and Standard Chartered Bank acted as joint lead managers and joint bookrunners for the issue.
This announcement does not constitute nor form a part of any offer or solicitation to purchase or subscribe for securities in Singapore, the United States, India or elsewhere, company said.
Two wheeler markers dropped. Bajaj Auto fell 0.41%. The company's net profit fell 1% to Rs 766 crore on 4% rise in turnover to Rs 4990 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 1% to Rs 3044 crore on 3% growth in turnover to Rs 20793 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result was announced on 16 May 2013.
Bajaj Auto said that the company's performance in FY 2013 was good in a very difficult year for the automobile industry. The company's strategy to build strong brands and offer differentiated products in the front-end, and focus on cost and productivity improvements in the back-end, has yielded desired results, Bajaj Auto said.
India's largest motorcycle maker by sales, Hero MotoCorp declined 0.79%. The company after market hours on Thursday, 23 May 2013 said that it has fixed 30 May 2013 as record date for ascertaining the names of the equity shareholders of Hero Investments (HIPL) in proportion of their holdings in HIPL for considering their entitlement for the purpose of issuance and allotment of equity shares in HMCL in the ratio of 1:1 i.e. one equity share for every one existing equity share held in HMCL by HIPL.
As per the Q4 results calendar, Coal India unveils consolidated FY 2013 results on Monday, 27 May 2013. Sun Pharma, Power Grid Corporation of India, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. Tata Motors, ONGC, Cipla, NMDC and BPCL unveil Q4 results on 29 May 2013. DLF, M&M and Tata Power unveil Q4 results on 30 May 2013.
Global credit rating agency Standard & Poor's (S&P) on 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.
The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
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.
European stock markets edged higher on Friday, partly recovering from a sharp selloff the prior day as investors awaited data that may show U.S. durable-goods orders increased in April. Key benchmark indices in UK, France and Germany were up by 0.01% to 0.64%.
German business confidence increased in May for the first time in three months, adding to signs that growth in Europe's largest economy is gathering pace. The Ifo institute's business climate index, based on a survey of 7,000 executives, climbed to 105.7 from 104.4 in April.
Most Asian stocks rose on Friday. Key benchmark indices in China, Japan, South Korea and Indonesia rose by 0.22% to 0.89%. Key benchmark indices in Hong Kong and Taiwan shed by 0.23% to 0.34%. Markets in Singapore, Thailand, Malaysia and Sri Lanka are closed today for holidays.
Trading in US index futures indicated that the Dow could gain 22 points at the opening bell on Friday, 24 May 2013. U.S. stocks fell modestly on Thursday, substantially paring intraday losses after upbeat U.S. economic reports and gains for Hewlett-Packard Co. countered worries about the Federal Reserve potentially tapering its bond-buying program.
Economic data on Thursday showed the number of Americans filing new claims for unemployment benefits fell last week, while new single family home sales rose.
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