Key benchmark indices hovered in red in mid-morning trade. The S&P BSE Sensex was down 42.39 points or 0.21%, off 98.06 points from the day's high and up 37.79 points from the day's low. The market breadth, indicating the overall health of the market, once again turned positive from negative in mid-morning trade.
Sun Pharmaceutical Industries galloped over 7% to strike a fresh record high on good Q4 result and a liberal 1:1 bonus issue announced after market hours on Tuesday, 28 May 2013. Cipla fell ahead of its Q4 results today, 29 May 2013. Other pharmaceutical shares were mixed. Tata Motors rose ahead of its Q4 results today, 29 May 2013. Coal India gained for second day in a row after the company reported good Q4 consolidated results after market hours on Monday, 27 May 2013.
Key benchmark indices reversed direction after a positive start. The barometer index, the BSE Sensex, hit its highest level in a week at the onset of the trading session. Key benchmark indices cut losses in morning trade. Key benchmark indices hovered in red in mid-morning trade.
The market may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near-month May 2013 series to June 2013 series. The May 2013 derivatives contracts expire tomorrow, 30 May 2013.
At 11:20 IST, the S&P BSE Sensex was down 42.39 points or 0.21% to 20,118.43. The index gained 55.67 points at the day's high of 20,216.49 in early trade, its highest level since 22 May 2013. The index fell 80.18 points at the day's low of 20,080.64 in early trade.
The CNX Nifty was down 22.25 points or 0.36% to 6,089. The index hit a high of 6,125.05 in intraday trade. The index hit a low of 6,083.10 in intraday trade.
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The market breadth, indicating the overall health of the market, once again turned positive from negative in mid-morning trade. Earlier, the breadth had turned negative from positive in morning trade. On BSE, 926 shares gained and 913 shares declined. A total of 130 shares were unchanged.
The total turnover on BSE amounted to Rs 667 crore by 11:20 IST compared to Rs 446 crore by 10:20 IST.
Among the 30-share Sensex pack, 21 stocks declined and the rest of them gained. Bhel (down 1.4%), M&M (down 1.2%) and HDFC (down 1.39%) edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) fell 0.28% to Rs 840.75. The stock hit a high of Rs 843 and low of Rs 833.20 so far during the day. RIL and its partners BP and NIKO on 24 May 2013 announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of India. RIL is the operator of KG D6 with 60% equity. BP has a 30% share and NIKO the remaining 10%.
Sun Pharmaceutical Industries galloped 7.5% to Rs 1,070.25 after striking a record high of Rs 1,072.50 in intraday trade today, 29 May 2013. The company's consolidated net profit rose 23.3% to Rs 1011.56 crore on 31.8% rise in net sales to Rs 3071.49 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results after market hours on Tuesday, 28 May 2013.
Sun Pharmaceutical Industries said that the board of directors of the company at its meeting held on Tuesday, 28 May 2013, has recommended a liberal 1:1 bonus issue.
Sun Pharmaceutical Industries' consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 32% to Rs 1260 crore in Q4 March 2013 over Q4 March 2012, while sustaining EBITDA margin at 41%.
Sun Pharmaceutical Industries said that branded generic sales in India were at Rs 780 crore. Adjusted for the extra sales recorded in the Q4 March 2012, as well as the change in treatment of expected sales returns and treatment of discounts, the underlying sales growth of the domestic formulation business is 16%.
US finished dosage sales grew by 63% to $330 million in Q4 March 2013 over Q4 March 2012. International formulation sales grew by 13% to $73 million in Q4 March 2013 over Q4 March 2012.
Consolidated research and development (R&D) expense for Q4 March 2013 was Rs 203 crore, at 6.6% of sales. For the year ended March 2013 (FY 2013), R&D spend was Rs 676 crore, at 6% of sales.
Dilip Shanghvi, managing director of the company said, "I am very pleased to announce that, our sales for FY 2013 have crossed the $2 billion mark. While it took us almost 27 years to record $1 billion in revenues, the next billion was added in just 3 years."
He further said, "All our businesses continue to perform in-line with our expectations. We continue to focus on building a differentiated and specialty product portfolio and enhancing our international presence. Overall, we shall strive to remain focused on execution and building a business with consistent performance."
Meanwhile, Sun Pharma has declined to comment on market speculation that the company may acquire Germany-based Stada.
Cipla fell 0.34% ahead of its Q4 results today, 29 May 2013.
Other pharmaceutical shares were mixed. Glenmark Pharmaceuticals (up 2.6%), Lupin (up 0.04%), Piramal Enterprises (up 2.65%) gained. Wockhardt (down 4.44%) Dr Reddy's Laboratories (down 0.65%) and Ranbaxy Laboratories (down 1.66%) declined.
Tata Motors rose 1.4% ahead of its Q4 results today, 29 May 2013.
Coal India gained 0.82%, with the stock extending Tuesday's 3.01% gain. The company's consolidated net profit rose 34.89% to Rs 5413.91 crore on 1.77% rise in total income to Rs 22111.07 crore in Q4 March 2013 over Q4 March 2012. The company announced Q4 results after market hours on Monday, 27 May 2013.
Coal India's board of directors approved rationalisation of coal prices from 28 May 2013. Due to the rationalisation of coal prices, there will be an approximately additional revenue of Rs 2119.36 crore for the balance period of financial year ending 31 March 2014. The yearly additional revenue would be around Rs 2511.58 crore.
The Q4 March 2013 earnings season gets over this week. DLF, M&M and Tata Power unveil Q4 results tomorrow, 30 May 2013.
On the macro front, the government will announce Q4 March 2013 gross domestic product (GDP) data on Friday, 31 May 2013. India's GDP grew 4.5% in Q3 December 2012, sharply slower than the 5.3% expansion reported for Q2 September 2012.
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.
Asian shares were mostly higher on Wednesday as US stocks rallied to record highs overnight. Key benchmark indices in Japan, Taiwan, Indonesia, South Korea, and China rose by 0.22% to 1.05%. Key benchmark indices in Singapore and Hong Kong fell by 0.03% to 0.68%.
Trading in US index futures indicated that the Dow could gain 14 points at the opening bell on Wednesday, 29 May 2013. US stocks climbed on Tuesday, bouncing back from last week's losses after data showed consumer confidence rising in May and the real-estate market picking up speed.
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