Key benchmark indices hovered in positive zone in mid-morning trade. The S&P BSE Sensex was up 57.37 points or 0.3%, up 83.58 points from the day's low and off 26.77 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
Auto stocks were in demand on renewed buying. Tata Motors extended Tuesday's gains triggered by its British luxury car unit Jaguar Land Rover (JLR) reporting strong sales for July 2013. Mahindra & Mahindra (M&M) edged higher in choppy trade. Escorts galloped after announcing strong Q3 result after market hours on Tuesday, 13 August 2013. Tata Steel surged in volatile trade after the company reported strong Q1 result after market hours on Tuesday, 13 August 2013.
Key benchmark indices edged higher amid initial volatility. The S&P BSE Sensex and the CNX Nifty, both, hit their highest level in almost two weeks. Volatility ruled the roost as key benchmark indices regained positive zone after reversing initial gains in mid-morning trade. Key benchmark indices retained positive zone in mid-morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 227.08 crore on Tuesday, 13 August 2013, as per provisional data from the stock exchanges.
At 11:16 IST, the S&P BSE Sensex was up 57.37 points or 0.3% to 19,287.21. The index jumped 84.14 points at the day's high of 19,313.98 in early trade, its highest level since 2 August 2013. The index fell 26.21 points at the day's low of 19,203.63 in morning trade.
The CNX Nifty was up 15.05 points or 0.26% to 5,714.35. The index hit a high of 5,723.25 in intraday trade, its highest level since 2 August 2013. The index hit a low of 5,690.20 in intraday trade.
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The market breadth, indicating the overall health of the market, was strong. On BSE, 1,143 shares gained and 756 shares fell. A total of 129 shares were unchanged.
The total turnover on BSE amounted to Rs 645 crore by 11:20 IST on BSE compared to Rs 447 crore by 10:20 IST.
Among the 30-share Sensex pack, 18 stocks gained and rest of them declined
HDFC Bank fell 1.56% to Rs 610.30 and was the top loser from the Sensex pack.
Auto stocks were in demand on renewed buying. Tata Motors extended Tuesday's gains triggered by its British luxury car unit Jaguar Land Rover (JLR) reporting strong sales for July 2013. The stock jumped 6.06% to Rs 308.80. 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 choppy trade. The stock was up 0.5% at Rs 875.75. The scrip hit high of Rs 884.75 and low of Rs 868.30 so far during the day. The stock had edged higher in choppy trade on Tuesday, 13 August 2013, boosted by the company's strong Q1 results.
The combined net profit of M&M and its 100% subsidiary Mahindra Vehicle Manufacturers (MVML) rose 16.9% to Rs 909.70 crore on 8% increase in gross revenue 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
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.
Maruti Suzuki India rose 1.39%.
Shares of two wheeler companies were mixed. Bajaj Auto rose 1.91%. Bajaj Auto after market hours on Tuesday, 13 August 2013, said that the company has received a notice from the workmen's union viz. Vishwa Kalyan Kamgar Sanghatana stating that the stoppage of work at Chakan plant has been withdrawn and all the workmen at Chakan plant will resume their duty in their respective shifts from 14 August 2013. The company had earlier informed on 25 June 2013, that it had received a notice from the workmen's union of its Chakan plant viz., Vishwa Kalyan Kamgar Sanghatana stating that they propose to call for a stoppage of work by all the workmen employed in Chakan plant from the morning shift of 28 June 2013. The workmen at Chakan Plant had however, stopped coming from 25 June 2013 itself, without assigning any reason.
Hero MotoCorp fell 0.42%.
Escorts spurted 11.91% after net profit galloped 215.6% to Rs 58.30 crore on 16.2% growth in net sales to Rs 1172.89 crore in Q3 June 2013 over Q3 June 2012. The Q3 result was announced after market hours on Tuesday, 13 August 2013.
Escorts' earnings before interest, taxation, depreciation and amortization (EBITDA) jumped 71.6% to Rs 92.70 crore in Q3 June 2013 over Q3 June 2012. The company attributed the surge in EBITDA to increase in volumes, better product mix and better price realization along with cost saving across all verticals.
Commenting on the company's Q3 results, Mr. Rajan Nanda, CMD, Escorts said, "Management initiatives have focused on entrepreneurial strategies that are opening up new markets, new opportunities and a better profitable presence in the market. At the crux of these consistently strong results over the past few quarters is the strategy of improving volumes and strengthening margins by introducting high power and specialized tractors. The performance is even more noteworthy when seen in the context of the overall economic environment."
Mr. Nikhil Nanda, Joint MD, Escorts said that the Management will continue to remain focused on execution to further improve the operating performance in the months ahead. While the pain point has been the construction sector, there is no denying the ultimate potential of the business, he added. Mr. Nikhil further said that the company sees improvement in the Railways and Auto Products business which is adding to the bottom line.
Tata Steel surged 5.95% to Rs 255.50, off day's high of Rs 263. The company's consolidated net profit jumped 90.46% to Rs 1139 crore on 3% fall in turnover to Rs 32805 crore in Q1 June 2013 over Q1 June 2012. The result was announced after market hours on Tuesday, 13 August 2013. This improvement was on the back of robust performance by the Indian operations and improved performance at the European operations, Tata Steel said.
Earnings before interest, taxation, deprecation and amortization (EBITDA) rose 4.85% to Rs 3755 crore in Q1 June 2013 over Q1 June 2012. The EBITDA margin edged up to 11.4% in Q1 June 2013, from 10.6% in Q1 June 2012.
Commenting on the first quarter results, Tata Steel Managing Director, Mr HM Nerurkar said: "The Indian operations delivered a steady performance in a subdued market environment with deliveries growing at an enhanced pace over the comparable period of last year. Our retail focus, customer relationship and brand building efforts are supporting growth despite increased competition in the market place and we are intensifying our focus on efficiency improvements and delivering enhanced value to our customers. Work on the greenfield project in Odisha continues in full swing. The South East Asian operations are robust and we continue to invest in improving the underlying performance."
Tata Steel Europe MD & CEO Dr Karl-Ulrich Kler said: "Our European facilities recorded higher production volumes after we completed some major plant refurbishment last year, which gave us a more stable production platform and greater operational flexibility. As a result we are better placed to supply our customers with the high-quality steel they demand. We see signs that our strategy is enhancing bottom-line performance, despite continued subdued European demand. There have recently been encouraging signs of improving economic conditions in some European economies, the UK in particular, and we are poised to capitalise should these translate more strongly into increased demand from steel-intensive sectors."
The stock market remains closed tomorrow, 15 August 2013, on account of Independence Day.
On the macro front, inflation based on the wholesale price index (WPI) is seen accelerating further in July 2013. WPI inflation is seen edging up to 5% in July 2013, from 4.9% in June 2013, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil the WPI inflation data for July 2013 today, 14 August 2013.
Asian stocks were mostly higher on Wednesday, 14 August 2013 following positive cues from Wall Street. Key benchmark indices in China, Japan, Indonesia and South Korea were up by 0.03% to 0.52%. Key benchmark indices in Taiwan and Singapore were down by 0.08% to 0.4%.
Hong Kong stock and derivatives trade was canceled on Wednesday due to Typhoon Utor, bourse operator Hong Kong Exchange & Clearing said. The storm generated a severe "force 8" warning from the Hong Kong Observatory, which remained in effect at noon local time, resulting in the bourse's closure.
Trading in US index futures indicated that the Dow could fall 17 points at the opening bell on Wednesday, 14 August 2013. US stocks rose on Tuesday, 13 August 2013, with technology pacing the gains, after investor Carl Icahn touted his large position in Apple Inc.
A report released by the Commerce Department showed retail sales rose 0.2% in July after a 0.6% gain in June that was larger than initially estimated. Retail sales excluding cars, gasoline and building materials climbed at their fastest pace in seven months.
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