While the barometer index, the S&P BSE Sensex, retained positive zone in mid-morning trade, the 50-unit CNX Nifty slipped into the red. The Sensex was up 24.53 points or 0.1%, off close to 130 points from the day's high and up about 35 points from the day's low. The market breadth, indicating the overall health of the market was negative.
Metal and mining stocks edged lower. Tata Steel edged higher in volatile trade after the company announced turnaround Q4 results. National Aluminum Company hit 52-week high. NMDC and Steel Authority of India, both, reversed direction after hitting 52-week high of Rs 161 in early trade. Shares of jewellery retailer Titan Company scaled record high.
The Sensex edged higher amid initial volatility. Key benchmark indices trimmed initial gains in morning trade. While the barometer index, the S&P BSE Sensex, retained positive zone in mid-morning trade, the 50-unit CNX Nifty slipped into the red.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1520.08 crore on Wednesday, 14 May 2014, as per provisional data from the stock exchanges.
At 11:20 IST, the S&P BSE Sensex was up 24.53 points or 0.1% at 23,839.65. The index jumped 156.66 points at the day's high of 23,971.78 in early trade, its highest level since 13 May 2014. The index shed 11.41 points at the day's low of 23,803.71 in early trade.
The CNX Nifty was down 1.50 points or 0.02% at 7,107.20. The index hit a high of 7,152.55 in intraday trade, its highest level since 13 May 2014. The index hit a low of 7,105.90 in intraday trade.
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The BSE Mid-Cap index was off 34.74 points or 0.45% at 7,669.36. The BSE Small-Cap index was down 39.98 points or 0.51% at 7,819.05. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market was negative. On BSE, 1,404 shares dropped and 961 shares rose. A total of 133 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks gained and rest of them fell. Tata Power Company (up 2.77%), NTPC (up 3.35%) and Sun Pharmaceutical Industries (up 2.69%) edged higher from the Sensex pack.
Metal and mining stocks edged lower. Among steel stocks, JSW Steel (down 1.38%) and Jindal Steel & Power (down 0.75%) declined.
Tata Steel rose 0.67% to Rs 455.20 after the company reported a consolidated net profit of Rs 1035.87 crore in Q4 March 2014 as against net loss of Rs 6528.51 crore in Q4 March 2013. The stock was volatile. The stock hit 52-week high of Rs 463.70 in intraday trade. The stock hit low of Rs 451.10 so far during the day. The result was announced after market hours on Wednesday, 14 May 2014.
Tata Steel's total income from operations rose 22.44% to Rs 42428.05 crore in Q4 March 2014 over Q4 March 2013.
Tata Steel reported a consolidated net profit of Rs 3594.89 crore in the year ended 31 March 2014 (FY 2014) as against net loss of Rs 7057.62 crore in the year ended 31 March 2013 (FY 2013). Total income from operations rose 10.31% to Rs 148613.55 crore in FY 2014 over FY 2013.
Tata Group steel deliveries in the fiscal year ended March 2014 (FY 2014) increased to 26.56 million tonnes from 24.13 million tonnes in FY 2013. Deliveries in Q4 March 2014 (Q4 2014) increased to 7.62 million tonnes compared to 6.38 million tonnes in Q3 December 2013 (Q3 2014) and 6.56 million tonnes in Q4 March 2013 (Q4 2013).
Group consolidated turnover in FY 2014 was Rs 148614 crore versus Rs 134712 crore in FY 2013. Q4 2014 turnover increased to Rs 42428 crore from Rs 36736 crore in Q3 2014 and Rs 34650 crore in Q4 2013.
FY 2014 Group EBITDA was Rs 16377 crore compared to Rs 12654 crore in FY 2013, implying an improvement of 29%. Q4 2014 EBITDA increased significantly to Rs 4917 crore from Rs 3921 crore in Q3 2014 and Rs 4368 crore in Q4 2013.
Group Profit after Tax (after minority interest and share of profit of associates) in FY 2014 swung to Rs 3595 crore versus the loss of Rs 7058 crore in FY 2013. FY 2014 results included exceptional charges of Rs 28 crore compared to the charges of Rs 7390 crore in FY 2013. Profit after tax in Q4 2014 doubled to Rs 1036 crore compared to Rs 503 crore in Q3 2014 and was a significant improvement over the loss of Rs 6529 crore in Q4 2013. Q4 2014 results were affected by exceptional charges of Rs 46 crore while the exceptional charges for Q4 2013 were Rs 7413 crore.
The improved and steady performance of operations across geographies, despite weak market conditions, led to this significantly improved Group performance, the company said in a statement.
Cash and cash equivalents as on 31 March 2014 were Rs 11373 crore and net debt was Rs 67326 crore.
Tata Steel said that the actuarial gains and losses on funds for employee benefits (pension plans) of Tata Steel Europe for the period from 1 April 2008 have been accounted in "Reserves and Surplus" in the consolidated financial statements in accordance with IFRS/IND AS principles and as permitted by Accounting Standard 21. Had the company recognised changes in actuarial valuations of pension plans of Tata Steel Europe in the statement of profit and loss, the consolidated profit after taxes, minority interest and share of profit of associates for the year ended 31 March 2014 would have been lower by Rs 628.23 crore (Rs 247.90 crore for the quarter) and the consolidated loss after taxes, minority interest and share of profit of associates for the year ended 31 March 2013 would have been higher by Rs 317.26 crore (lower by Rs 1504.80 crore for the quarter), Tata Steel said.
Tata Steel's board of directors at its meeting held on Wednesday, 14 May 2014, recommended a dividend of Rs 10 per share for FY 2014.
Steel Authority of India (Sail) fell 0.53% to Rs 74.69, with the stock reversing direction after hitting 52-week high of Rs 77 in early trade.
Among other metal and mining stocks, Sesa Sterlite (down 0.35%), Hindustan Copper (down 1.11%), Hindustan Zinc (down 0.23%), and Hindalco Industries (down 0.57%) declined.
NMDC fell 1.63% to Rs 156.60, with the stock reversing direction after hitting 52-week high of Rs 161 in early trade.
National Aluminum Company (Nalco) rose 3.75% to Rs 44.20 after hitting 52-week high of Rs 45.25 in intraday trade. National Aluminium Company after trading hours on Wednesday, 14 May 2014, said that in accordance with the approval given by Cabinet Committee on Economic Affairs on 25 October 2012, the Government of India is offering up to 1.56 crore equity shares of face value of Rs 5 of the company to the eligible employees of the company at a discounted price Rs 38 per equity share (5% discount to the cut-off price of Rs 40 discovered in the Offer for Sale of equity shares of Nalco carried out by the Government of India on 15 March 2013). The Dept. of Disinvestment, Ministry of Finance, Govt. of India vide a letter dated 25 March 2014 has advised Nalco to complete the formalities for issue of shares to the eligible employees latest by 31 May 2014.
In this connection, action has been taken by Nalco for sale of equity shares to the eligible employees of the company by the Govt. of India. The offer will remain open from 15 May 2014 to 22 May 2014 (both days inclusive), Nalco said in a statement.
Titan Company rose 2.4% to Rs 311.10 after hitting record high of Rs 315 in intraday trade.
Aurobindo Pharma rose 1.66%. The stock has been upgraded to the MSCI India index from small cap indexes after MSCI's semi-annual global index review on Wednesday, 14 May 2014.
Bajaj Corp (up 1.82%), Coromandel International (up 0.15), Jaiprakash Power Ventures (up 4.26%), and Indian Bank (up 0.61%) rose after these stocks were added to MSCI small-cap indexes.
Nilkamal spurted 12.38% after net profit surged 194.99% to Rs 14.13 crore on 5.17% rise in net sales to Rs 461.05 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 14 May 2014. Nilkamal's net profit rose 28.34% to Rs 40.03 crore on 2.86% rise in net sales to Rs 1645.95 crore in the year ended March 2014 over the year ended March 2013.
In the foreign exchange market, the rupee edged higher against the dollar on signs Lok Sabha election results due tomorrow, 16 May 2014, will show a clear winner. The partially convertible rupee was hovering at 59.48, compared with its close of 59.66/67 on Tuesday, 13 May 2014. The foreign exchange market was closed on Wednesday, 14 May 2014, on account of a bank holiday.
Indian government bond prices rose as global funds boosted holdings of local debt amid signs Lok Sabha election results due tomorrow, 16 May 2014, will show a clear winner. The yield on 10-year benchmark federal paper, 8.83% GS 2023, was hovering at 8.7782%, lower than its close of 8.7833% on Tuesday, 13 May 2014. Bond yield and bond prices move in opposite direction. The Indian bond market was closed on Wednesday, 14 May 2014, on account of a bank holiday.
Indian stocks may see high intraday volatility tomorrow, 16 May 2014, as trends and actual results of wins by candidates/parties are announced during the process of counting of votes for the recently concluded Lok Sabha elections. The counting of votes will begin at 8:00 IST tomorrow, 16 May 2014, and all results are expected by tomorrow itself. Various exit polls have predicted that the Bharatiya Janata Party (BJP) led National Democratic Alliance (NDA) would win a majority in the Lok Sabha elections which concluded on Monday, 12 May 2014. If exit polls prove correct, NDA's prime ministerial candidate Narendra Modi will become India's next Prime Minister. The term of the current Lok Sabha ends on 1 June and the new House has to be constituted by 31 May.
Modi is perceived as being more business-friendly and decisive by the business community. As chief minister for the fast-growing state of Gujarat, Modi has built a reputation for getting things done. While campaigning for the Lok Sabha elections, Modi has pledged to reinvigorate the country's manufacturing sector, create more jobs and overhaul the country's inadequate infrastructure. Investors are hoping that the BJP-led government will be better at getting things done and more business-friendly than the current Congress-party-led coalition government.
Investors are hoping that when the results of the Lok Sabha elections are out tomorrow, 16 May 2014, a stable government which will complete its full term of five years in office comes to power. A party or a pre-poll alliance will need 272 MPs to form government at the Centre, which is a simple majority in 543-member Lok Sabha. Investors are expecting measures for revival of the economy, business-friendly policies and good governance from the new government that comes to power after the elections. Investors expect policy measures from the new government to put India on a high-growth path on a sustainable basis.
The BJP in its Lok Sabha polls manifesto has promised more business-friendly policies if the party comes to power after elections. The BJP has said that measures for the revival of the economy are its priority if the party comes to power after elections. India's GDP growth has slowed to a decade low of below 5%. The GDP grew 4.7% in Q3 December 2013.
The rate of inflation based on the wholesale price index is expected to remain at 5.7% in April 2014, at the same level it was in March 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil data on inflation based on the wholesale price index (WPI) for April 2014 at about 12:00 noon today, 15 May 2014.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar. .
Asian stocks were mixed on Thursday, 15 May 2014. Key benchmark indices in China, Taiwan, and Japan were off 0.1% to 1.16%. Key benchmark indices in South Korea, Singapore and Hong Kong were up 0.06% to 0.3%.
Japan's economy grew at the fastest pace since 2011 in the first quarter as companies stepped up investment and consumers splurged before the first sales-tax rise in 17 years last month. Gross domestic product grew an annualized 5.9% from the previous quarter, the Cabinet Office said today in Tokyo.
Trading in US index futures indicated a flat opening of US stocks on Thursday, 15 May 2014. US stocks fell on Wednesday, with the Dow Jones Industrial Average and the S&P 500 index retreating from recent record highs, as small caps resumed their sell-off and consumer discretionary shares lagged.
Prices paid to American factories and service producers rose in April by the most in more than a year, indicating a diminishing risk of deflation as demand improves. The 0.6% increase in the producer price index was the biggest since September 2012 and exceeded all estimates, figures from the Labor Department showed.
Federal Reserve Chair Janet Yellen will speak later in the global day today, 15 May 2014, after saying last week the world's biggest economy still requires a strong dose of stimulus.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 17-18 June 2014. The Fed on 30 April 2014 said after a monetary policy review that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends. The FOMC also reduced monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve.
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