Indian stocks today, 9 May 2013, snapped three-day wining streak as European stocks fell. The S&P BSE Sensex fell below the psychological 20,000 mark, having alternately moved above and below that mark in intraday trade. The Sensex was provisionally down 47.72 points or 0.24%, off 116.02 points from the day's high and up 38.63 points from the day's low. The market breadth, indicating the overall health of the market, was negative. Index heavyweight and cigarette major ITC was slightly higher. Another index heavyweight Reliance Industries (RIL) edged lower.
IT stocks edged higher after Cognizant Technology Solutions Corp on Wednesday posted a strong set of first quarter numbers and also reiterated its revenue guidance for 2013. Metal stocks dropped. Asian Paints dropped after the company during trading hours today, 9 May 2013 reported fall in Q4 net profit.
Key benchmark indices pared gains after an initial upmove triggered by higher Asian stocks. The barometer index, the S&P BSE Sensex, hit its highest level in over 14 weeks above the psychological 20,000 mark. The CNX Nifty also scaled its highest closing level in more than 14 weeks. Key benchmark indices reversed initial gains to fall to intraday low in morning trade. The Sensex hovered in red in mid-morning trade. Key benchmark indices hovered in negative zone in early afternoon trade. The market moved into positive terrain in afternoon trade. A bout of volatility was seen on mid-afternoon trade as the key benchmark indices pared gains. Key benchmark indices cut losses after sliding to fresh intraday low in late trade.
As per provisional closing, the S&P BSE Sensex was down 47.72 points or 0.24% to 19,942.46. The index gained 68.30 points at the day's high of 20,058.48 in early trade, its highest level since 30 January 2013. The index fell 86.35 points at the day's low of 19,903.83 in late trade.
The CNX Nifty was down 12 points or 0.2% to 6,057.30. The index hit a high of 6,084.70 in intraday trade, its highest level since 29 January 2013. The index hit a low of 6,040.45 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,309 shares declined and 1,162 shares advanced. A total of 169 shares were unchanged.
The total turnover on BSE amounted to Rs 1989 crore, lower than Rs 2069 crore on Wednesday, 8 May 2013.
Among the 30-share Sensex pack, 16 stocks gained while rest of them declined. Cipla (down 1.64%), Maruti Suzuki India (down 1.55%), and HDFC Bank (down 1.06%) edged lower from the Sensex pack
SBI (up 2.17%), Bajaj Auto (up 2.15%) and ONGC (up 0.38%) edged higher from the Sensex pack.
Index heavyweight Reliance Industries (RIL) shed 1.22% to Rs 819 on profit booking. The scrip hit high of Rs 832 and a low of Rs 815.50. The stock had gained 3.48% in three trading days to Rs 829.10 on 8 May 2013 from a recent low of Rs 801.20 on 3 May 2013.
Index heavyweight and cigarette major ITC rose 0.2% to Rs 343.50, after striking a record high of Rs 345.85 in intraday trade today, 9 May 2013. The stock hit low of Rs 341.55 in intraday trade. The Uttar Pradesh state government on Tuesday, 7 May 2013, slashed VAT on cigarette/cigar from existing 50% to 25%. The state government had last year increased VAT on cigarette/cigar and tobacco products from 12.5% to 50%.
The Centre raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14.
FMCG major Hindustan Unilever (HUL) was down 0.33% to Rs 584.75. The company after market hours on Wednesday, 8 May 2013, said that the open offer by its parent firm Unilever Plc to buy additional 22.52% stake in the company at Rs 600 per share would begin on 21 June 2013 and close on 4 July 2013. Unilever Plc plans to hike its stake in Hindustan Unilever to 75% through the open offer from its current holding of 52.48%.
HUL's net profit before exceptional items rose 18% to Rs 781 crore on 12.13% growth in total income from operations to Rs 6465.81 crore in Q4 March 2013 over Q4 March 2012. The company announced the Q4 results during market hours on 29 April 2013.
Asian Paints fell 3.6% to Rs 4,675 after consolidated net profit fell 3.23% to Rs 251.11 crore on 7.48% increase in total income from operations (net) to Rs 2733.14 crore in Q4 March 2013 over Q4 March 2012.
Consolidated net profit rose 12.7% to Rs 1113.90 crore on 13.9% increase in total income from operations (net) to Rs 10970.74 crore in the year ended March 2013 over the year ended March 2012.
"The company registered satisfactory growth inspite of the challenging environment. We witnessed slowdown in demand conditions in the quarter," said K.B.S Anand, managing director and CEO, Asian Paints. "Industrial pains segment continues to be impacted due to economic slowdown. Automotive coatings growth was affected due to subdued demand in the auto sector. International business has recorded a good performance. Middle East has done well even though political events and macro economic uncertainity in some countries continue," he added.
The board of Asian Paints recommended approved a 10-for-1 stock split of equity shares.
Pharma major Sun Pharmaceutical Industries lost 3.22% to Rs 953.40 on profit booking. The stock had scaled a record high of Rs 997.95 in intraday trade on 7 May 2013.
IT stocks edged higher after Information technology services provider Cognizant Technology Solutions Corp on Wednesday posted a strong set of first quarter numbers and also reiterated its revenue guidance for 2013 at 17%.
Tata Consultancy Services (TCS) advanced 1.6%.
Infosys rose 0.45%. The company after market hours on Tuesday, 7 May 2013, announced that it is collaborating with SAP on development of mobile applications for the retail industry. These efforts are focused on giving consumer packaged goods (CPG) companies anytime, anywhere access to sales representatives and merchandisers, enabling them to capture information from the field to make them more competitive and agile, Infosys said.
Wipro rose 0.72%. The company after market hours on Tuesday, 7 May 2013, announced that it has signed an agreement to enter into a strategic partnership and take a minority position in Opera Solutions, LLC, a leading global Big Data science company. Wipro will invest $30 million in the company, which is privately held and headquartered in Jersey City, NJ.
HCL Technologies gained 2.52% to Rs 769.30. The stock had hit a record high of Rs 809 in intraday trade on 17 April 2013 after the company reported strong Q3 results.
Oracle Financial Services Software rose 0.46%. The stock had dropped 3.89% on Wednesday, 8 May 2013 after the company said its foreign promoter intents to pare stake in the company to comply with the minimum public shareholding requirements of the Listing Agreement. The foreign promoter intends to reduce its stake in the company by 5.3%.
Oracle Financial Services Software after trading hours on Tuesday, 7 May 2013, said its consolidated net profit jumped 45% to Rs 281.30 crore on 2% growth in revenue to Rs 881.50 crore in Q4 March 2013 over Q4 March 2012. Consolidated net profit rose 18% to Rs 1075.10 crore on 10% growth in revenue to Rs 3474 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
Aptech jumped 20% after the company during market hours today, 9 May 2013 said its board would meet to consider buyback of shares on 13 May 2013.
Metal stocks fell. Jindal Steel & Power (down 3.72%), JSW Steel (down 1.69%), Tata Steel (down 0.83%), Sterlite Industries (India) (down 2.63%), Sail (down 1.03%) and Hindustan Zinc (down 1.34%) edged lower. Hindalco Industries rose 0.49%.
JSW Steel slipped 1.69%. The company after market hours on Wednesday, 8 May 2013, said that the High Court of Judicature at Bombay has sanctioned the composite scheme of amalgamation and arrangement amongst JSW ISPAT Steel and JSW Building Systems and JSW Steel Coated Products and JSW Steel and their respective shareholders and creditors on 3 May 2013.
The stock exchanges have decided to conduct a special trading session for a short duration on Saturday, 11 May 2013, as the Bombay Stock Exchange (BSE) is testing its disaster recovery software. Trading will start at 11:15 IST and end at 12:45 IST.
The focus of the market is on Q4 results. NTPC announces Q4 results tomorrow, 10 May 2013. Bank of Baroda unveils Q4 results on 13 May 2013. Dr Reddy's Laboratories and Reliance Infrastructure unveil Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. ITC unveils Q4 results on 17 May 2013. Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Bharat Heavy Electricals (Bhel) announces Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. GAIL (India) unveils Q4 results on 28 May 2013. BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
The Central Statistics Office (CSO) will issue data on industrial production for March 2013 tomorrow, 10 May 2013. Industrial production rose 0.6% in February 2013.
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 that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The central bank said that with upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from MSP increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures. 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 lower on Thursday after Chinese data showed consumer price inflation rose more than expected in April, stoking fears the government will withhold more easing measures. Key benchmark indices in France, Germany and UK dropped by 0.09% to 0.97%.
Asian stocks rose Thursday with South Korean stocks jumping after a surprise rate cut by the nation's central bank. Key benchmark indices in Taiwan, South Korea, Indonesia and Singapore rose by 0.23% to 1.18%. Key benchmark indices in Japan, China and Hong Kong fell by 0.14% to 0.66%.
China's consumer price index rose more than expected in April, while wholesale prices suffered a steeper fall. The April CPI showed a gain of 2.4% from a year earlier, led by a 4% rise in food prices, the National Bureau of Statistics said Thursday. The rise was more than March's 2.1% increase, though below February's spike of 3.2%. The producer price index, meanwhile, fell by the most since October, dropping 2.6% against a decline of 1.9% in March.
The Bank of Korea on Thursday cut its key interest rate by a quarter-point to 2.5%.
Trading in US index futures indicated a flat opening of US stocks on Thursday, 9 May 2013. US stocks rose Wednesday, with the S&P 500 extending record gains into a fifth session, after companies including Electronic Arts Inc. projected earnings that beat estimates.
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