A bout of volatility was witnessed as key benchmark indices recovered and hovered between positive and negative terrain after hitting fresh intraday low in early afternoon trade. The S&P BSE Sensex and the 50-unit CNX Nifty, both, recovered after hitting their lowest level in nearly four weeks. The Sensex was down 8.45 points or 0.04%, off close to 100 points from the day's high and up about 80 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Most auto stocks declined. Metal stocks dropped. Hindalco Industries rose ahead of its Q2 result today, 12 November 2013. National Aluminium Company rose on strong Q2 result. HPCL shrugged off weak Q2 result. L&T rose after L&T Infrastructure Development Projects (L&T IDPL) has been awarded a contract by the government of Odisha for developing a road project estimated at a total cost of Rs 1293 crore.
The market edged higher in early trade. It regained positive terrain after slipping into the red and hitting fresh intraday low in morning trade. It weakened and hit fresh intraday low in mid-morning trade. It recovered and hovered between positive and negative terrain after hitting fresh intraday low in early afternoon trade.
At 12:22 IST, the S&P BSE Sensex was down 8.45 points or 0.04% to 20,482.38. The index rose 93.26 points at the day's high of 20,584.22 in early trade. The index dropped 87.97 points at the day's low of 20,402.99 in early afternoon trade, its lowest level since 17 October 2013.
The CNX Nifty was up 1.20 points or 0.02% to 6,080. The index hit a low of 6,054.25 in intraday trade, its lowest level since 17 October 2013. The index hit a high of 6,108.70 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,011 shares rose and 966 shares fell. A total of 123 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and rest of them rose. Wipro (up 1.05%), Sun Pharmaceutical Industries (up 1.11%) and ITC (up 0.77%), gained.
L&T rose 0.54% after the company said during market hours that L&T Infrastructure Development Projects (L&T IDPL) has been awarded a contract by the government of Odisha for developing a road project estimated at a total cost of Rs 1293 crore.
The road project issued by the Odisha Works Department, will be built under the Public-Private-Partnership model. L&T IDPL had bid for a grant of Rs 465.30 crore, for four-laning the Sambalpur -Rourkela section of the state highway. The stretch extends for 161.73 km and has been offered for a concession period of 22 years, including the construction period of three years. This will be L&T IDPL's first road project in Odisha to be executed on a build-operate-transfer basis. The concession agreement for the project was signed between L&T Sambalpur Rourkela Tollways Limited, a special purpose vehicle formed for the project by L&T IDPL, and the Government of Odisha.
Currently, the road has two lanes and has to be widened to four lanes along with other facilities such as flyovers, underpasses, bridges, bus bays, rest areas and service roads. The project shall have state-of-art facilities such as advanced Highway Traffic Management Systems, Highway Patrolling Service and Accident Vehicle Recovery Service. The concessionaire shall be entitled to collect appropriate tolls after completion of construction, based on a pre-determined toll policy issued by Government of Odisha.
Most auto stocks declined. M&M fell 0.33%. Tata Motors declined 2.93%. But, car major Maruti Suzuki India rose 1.15%.
Shares of two-wheeler makers dropped. Hero MotoCorp (down 0.3%) and Bajaj Auto (down 0.09%), declined.
Metal stocks dropped. Jindal Steel & Power (down 0.04%), Sesa Sterlite (down 2.12%), Bhushan Steel (down 1.2%), JSW Steel (down 0.85%), Tata Steel (down 1.99%), Sail (down 2.24%), and Hindustan Zinc (down 1.46%), declined.
But, Hindalco Industries rose 1.97% ahead of its Q2 result today, 12 November 2013.
Novelis, the US subsidiary of Hindalco Industries on Monday, 11 November 2013 reported net income attributable to its common shareholder of $23 million for the second quarter of fiscal 2014. Excluding certain tax-effected items, net income was $37 million for the quarter.
Adjusted EBITDA for the second quarter of fiscal 2014 was $228 million compared to $277 million reported for the same period a year ago. Sequentially, adjusted EBITDA improved 12% compared to the $204 million reported in the first quarter of fiscal 2014, in part due to initial success from the company's rolling expansion in South America. Excellent project execution allowed Novelis to meet strong market demand and puts the South America region on track to achieve record shipments this fiscal year.
"We are nearing an inflection point in the transition of our business from investment to growth," said Phil Martens, President and Chief Executive Officer for Novelis. "We have invested heavily in expanding our rolling, recycling and automotive finishing assets over the last three years to solidify our leadership position ahead of the strong market growth we expect, and we are beginning to see these results materialize. In fact, with the contribution from our expansions in South America and Asia, we expect results in the second half of fiscal 2014 to be stronger than the first half."
Martens also highlighted the company's stable business performance in North America, despite the challenging dynamics related to overcapacity in the North American can market which affected year-over-year results. "The reallocation of some hot mill capacity towards high-growth, high-margin automotive sheet in this region is not only a key piece of our growth strategy, it also will help rebalance the North American can market," said Martens. "We are aggressively increasing finishing capacity globally to support strong growth in the automotive flat rolled products market. Our two North American finishing lines are on track to produce commercial product by the end of this fiscal year and we are already evaluating additional investments."
Shipments of aluminum rolled products totaled 713 kilotonnes for the second quarter of fiscal 2014, down one percent compared to 719 kilotonnes for the same period last year but up one percent from the first quarter. Net sales for the second quarter of fiscal 2014 were $2.4 billion, flat compared to both the prior year and prior quarter.
For the second quarter of fiscal 2014, Novelis reported liquidity of $843 million. Free cash flow was $178 million for the second quarter of fiscal 2014 and capital expenditures totaled $184 million. "As expected, we generated positive free cash flow in the second quarter despite meaningful investments in growth, primarily due to significant improvements in working capital," said Steve Fisher, Chief Financial Officer for Novelis. "We will continue this diligent focus on cash generation and expect to drive positive free cash flow in the second half of this fiscal year as a result of working capital efficiencies and other cash improvement actions."
National Aluminium Company rose 2.11% on strong Q2 result. The company's net profit surged 3648.33% to Rs 179.17 crore on 6.50% increase in total income to Rs 1861.07 crore in Q2 September 2013 over Q2 September 2012. The company announced the result after market hours on Monday, 11 November 2013.
HPCL rose 1.25%, with the stock shrugging off company's weak Q2 result. The company's net profit declined 86.29% to Rs 318.92 crore on 5.42% rise in total income to Rs 52103.66 crore in Q2 September 2013 over Q2 September 2012. The company announced result during market hours.
In the foreign exchange market, the rupee edged lower against the dollar as investors remained cautious ahead of consumer inflation and industrial output data. The partially convertible rupee was hovering at 63.5950, compared with its close of 63.24 on Monday, 11 November 2013.
On macro front, the government will unveil industrial production data for September 2013 today, 12 November 2013. Industrial output is projected to jump 3.7% in September 2013, as per the median estimate of the poll carried out by Capital Market. Index of industrial production (IIP) rose 0.6% in August 2013, showing moderation in growth from 2.8% growth recorded in July 2013.
Data on inflation based on the consumer price index (CPI) for October 2013 will also be unveiled today, 12 November 2013. The headline CPI inflation (combined) is projected to increase to 10% in October 2013, as per the median estimate of the poll carried out by Capital Market. The headline CPI inflation (combined) for September 2013 was placed at 9.84% (y-o-y), which came in higher than 9.52% (y-o-y) seen in August 2013.
Most Asian stocks edged higher on Tuesday. Key benchmark indices in China, Taiwan, Japan and South Korea rose 0.16% to 2.23%. Key benchmark indices in Singapore, Hong Kong and Indonesia shed 0.08% to 0.54%.
President Xi Jinping and Chinese Communist Party leaders today, 12 November 2013 conclude a four-day gathering aimed at mapping out a blueprint for reform, after data yesterday showed the nation's broadest measure of new credit fell by more than estimated in October.
Trading in US index futures indicated that the Dow could gain 22 points at the opening bell on Tuesday, 12 November 2013. US stocks rose on Monday, with the Dow Jones Industrial Average extending a record, as investors awaited retailer earnings reports to gauge the strength of consumer demand and the likelihood of cuts to monetary stimulus.
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