Immense volatility was witnessed during the last one hour or so of trade as key benchmark indices surged to hit fresh intraday high soon after paring gains. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their highest level in almost six weeks. The Sensex was provisionally up 219.06 points or 1.14%, off close to 35 points from the day's high and up about 205 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Index heavyweight Reliance Industries (RIL) edged higher in choppy trade. Another index heavyweight and cigarette major ITC hit record high in volatile trade. Auto stocks rose as slowing wholesale price inflation has raised rate cut expectations. Axis Bank surged on strong Q4 results. Dr Reddy's Laboratories scaled record high. Hindustan Zinc surged on strong Q4 results.
The market was volatile as traders rolled over positions in the futures & options (F&O) segment from the near month April 2013 series to May 2013 series. The April 2013 F&O contracts expired today, 25 April 2013.
The market edged higher in early trade on higher Asian stocks. The market held firm in morning trade. The market extended gains to hit fresh intraday high in mid-morning trade. The market further extended gains to hit fresh intraday high in early afternoon trade. Key benchmark indices pared gains after hitting their highest level in nearly six weeks in afternoon trade. The market held firm in mid-afternoon trade. Immense volatility was witnessed during the last one hour or so of trade as key benchmark indices surged to hit fresh intraday high soon after paring gains.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 23 April 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 226.21 crore on Tuesday, 23 April 2013, as per provisional data from the stock exchanges.
As per provisional figures, the S&P BSE Sensex was up 219.06 points or 1.14% to 19,398.42. The index jumped 255.49 points at the day's high of 19,434.85 in late trade, its highest level since 15 March 2013. The index rose 12.75 points at the day's low of 19,192.11 in opening trade.
The CNX Nifty was up 81.70 points or 1.4% to 5,918.60, as per provisional figures. The index hit a high of 5,924.60 in intraday trade, its highest level since 15 March 2013. The index hit a low of 5,853.30 in intraday trade.
The total turnover on BSE amounted to Rs 2446 crore, higher than Rs 1893.84 crore on Tuesday, 23 April 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,223 shares advanced and 1,160 shares declined. A total of 129 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks gained while rest of them fell.
Index heavyweight Reliance Industries (RIL) rose 2.05% to Rs 820. The scrip hit high of Rs 826.85 and a low of Rs 806. The company's telecom arm -- Reliance Jio Infocomm -- and Bharti Airtel on Tuesday, 23 April 2013, signed an agreement for international data connectivity under which Bharti will provide Reliance Jio data capacity on its i2i submarine cable. i2i connects India to Singapore and is wholly owned by Bharti. Reliance Jio will utilize a dedicated fiber pair on i2i. The high speed link will enable Reliance Jio to extend its network and service reach to customers across Asia Pacific region.
Earlier, at the time of announcement of its Q4 results, RIL in mid-April 2013 said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the net 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
Shares of Bharti Airtel gained 1.75%.
Index heavyweight and cigarette major ITC rose 0.85% to Rs 320.10. The stock hit record high of Rs 323.85 in intraday trade today, 25 April 2013. The stock hit low of Rs 313.15 in intraday trade. West Bengal chief minister Mamata Banerjee on Wednesday, 24 April 2013, announced a 10% tax hike in the value-added tax (VAT) on cigarettes to 25% from 15% to raise money for a relief fund for those depositors who have lost money in the Saradha chit fund scam.
Earlier, 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, which was unveiled on 28 February 2013.
Hindustan Zinc surged 4.52% on strong Q4 results. The company's net profit jumped 53% to Rs 2166 crore on 24% growth in revenue to Rs 3850 crore in Q4 March 2013 over Q4 March 2012. The company announced Q4 results during market hours today, 25 April 2013.
L&T Finance Holdings rose 0.19% after consolidated net profit rose 21.8% to Rs 171.40 crore on 32.52% growth in income from operations to Rs 1132.02 crore in Q4 March 2013 over Q4 March 2012. The company's consolidated net profit rose 60.16% to Rs 730.47 crore on 33.22% rise in total income to Rs 4006.45 crore in the year ended 31 March 2013 (FY 2013) over FY 2012. The company announced Q4 results during market hours today, 25 April 2013.
The company in its outlook said that the credible and stable signs of improvement in the business environment are yet to show up. The company expects that the various policy initiatives being undertaken by the government to revive the capex cycle will yield positive results by the second half of the FY 2014 fiscal. This is expected to result in better growth in disbursements enabling book growth. Margins are expected to be stable or witness a marginal improvement due to the likely improvement in the interest environment. Asset quality continues to be under stress and may show improvement in the second half of FY 2014, L&T Finance Holdings said.
Axis Bank surged 4.17% on strong Q4 results. The bank's net profit rose 21.75% to Rs 1555.15 crore on 18.39% growth in total income to Rs 9054.72 crore in Q4 March 2013 over Q4 March 2012. The bank announced Q4 results on Wednesday, 24 April 2013. The bank's net interest income jumped 24.16% to Rs 2664.66 crore in Q4 March 2013 over Q4 March 2012. Other Income comprising fees, trading profit and miscellaneous income jumped 26.43% to Rs 2007.17 crore in Q4 March 2013 over Q4 March 2012, driven by fee income and trading profit. The bank's fee income jumped 22% to Rs 1618 crore. Trading income jumped 63% Rs 238 crore in Q4 March 2013 over Q4 March 2012.
Axis Bank said that its retail franchise continued to show strong growth in Q4 March 2013. CASA plus retail term deposits constituted 68% of the bank's total deposits as on 31 March 2013. Axis Bank said its quality remains stable with the ratio of net non-performing assets to net advances at 0.32% as on 31 March 2013, lower than 0.33% as on 31 December 2012.
Axis Bank said that the bank is well capitalised with equity capital of Rs 5537 crore raised in Q4 March 2013. The bank said that it is well positioned for growth with a healthy capital adequacy ratio (CAR) of 17%, and Tier-I CAR at 12.23% as on 31 March 2013.
Dr Reddy's Laboratories gained 4.11% to Rs 1,981.09. The stock hit record high of Rs 1,999.40 in intraday trade today, 25 April 2013.
Auto stocks rose as slowing wholesale price inflation has raised rate cut expectations. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
Tata Motors jumped 4.14%. Tata Motors' British luxury car unit Jaguar Land Rover (JLR) on 10 April 2013 said its global sales rose 16% to a record 53,772 units in March 2013 over March 2012. JLR's global sales rose 17% to a record 115,504 units in Q1 March 2013 over Q1 March 2012.
Small-car maker Maruti Suzuki India rose 3.2% ahead of its Q4 results tomorrow, 26 April 2013.
Mahindra & Mahindra (M&M) gained 2.38%. M&M on 22 April 2013 said that the tool down strike at the company's Igatpuri plant, which started on 9 April 2013 has been withdrawn by the workers and production will soon be restored to normalcy. Considering the pipeline of stocks as also assembly of higher number of engines at other plant locations, there was no material impact on sales volume and going forward the company expects to build up the pipeline stock, M&M said.
The Minister of Heavy Industries & Public Enterprises has requested the Ministry of Finance either to withdraw the additional 3% excise duty imposed on SUVs in the current Union Budget or to exempt all such vehicles classified as SUV that have an assessable value up to Rs 10 lakh. Giving this information in written reply to a question in the Rajya Sabha on Tuesday, 23 April 2013, the Minister of Heavy Industries & Public Enterprises Mr. Praful Patel said that the auto industry in the country is going through difficult times and the notification issued by the Finance Ministry for the levy of additional 3% excise duty will further impact the industry and will also discourage the consumers as the commonly used vehicles in rural and semi-urban area have come under this additional 3% excise duty.
Shares of two-wheeler makers gained. Hero MotoCorp gained 2.48% ahead of its Q4 results tomorrow, 26 April 2013. Bajaj Auto rose 2.26%. PSU OMCs announced cut in petrol price by Re 1 per litre, excluding value added tax (VAT) on 15 April 2013 because of fall in international oil prices. The recent cut in petrol price comes on the back of 85 paise a litre reduction in rates on 2 April 2013 and Rs 2 a litre decrease effected on 16 March 2013.
The focus of the market is on Q4 results. Hero MotoCorp, ICICI Bank and Maruti Suzuki unveil Q4 results tomorrow, 26 April 2013. IDFC announces Q4 results on 1 May 2013. Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on 3 May 2013. Grasim announces Q4 March 2013 results on 4 May 2013. HDFC unveils Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Dr. Reddys Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. BPCL announces Q4 results on 29 May 2013.
The Prime Minister's Economic Advisory Council (PMEAC) in a report released on Tuesday, 23 April 2013, projected 6.4% growth in India's GDP for the current fiscal year 2013/14, higher than an estimated 5% growth for the fiscal year 2012/13. In 2013-14, the headline WPI inflation is expected to be around 6%, compared with provisional figure at 5.96% at the end of 2012-13, the PMEAC said. The net FDI inflow is expected at $24 billion in 2013-14 from an estimated $18 billion in 2012-13. In contrast, FII inflows are seen sliding to $18 billion in 2013-14 from an estimated $24 billion in 2012-13, the PMEAC said.
The Reserve Bank of India (RBI) will announce the Monetary Policy Statement 2013-14 on 3 May 2013. The RBI cut its key policy rate viz. the repo rate by 25 basis points to 7.5% after a mid-quarter monetary policy review on 19 March 2013. Inflation based on the monthly wholesale price index (WPI) eased the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed.
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.
The government has lined up a number of key bills for consideration and passing during the ongoing Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008. The Budget Session of the Parliament ends on 10 May 2013.
European stock markets edged lower on Thursday after earnings from some of the region's heavyweights added pressure, offsetting hopes for a rate cut at the European Central Bank's policy-setting meeting next week. Key benchmark indices in UK and France were down by 0.14% to 0.31%. Germnay's DAX rose 0.11%.
The European Central Bank (ECB) is closer to lowering interest rates than at any time since it last cut them in July 2012 and is likely to shave a quarter-point off at its policy meeting next week. The ECB's Governing Council meets in Bratislava next Thursday - one of two annual policy meetings outside Frankfurt.
Britain's economy grew a more-than-estimated 0.3% in the first quarter after contracting 0.3% in the previous quarter, the Office for National Statistics said.
Spanish unemployment rose more than economists forecast in the first quarter to the highest in at least 37 years as efforts to tackle the European Union's biggest budget deficit crimped growth. The number of jobless increased to more than 6 million for the first time, climbing to 27.2% of the workforce, compared with 26.02% in the previous three months, the National Statistics Institute in Madrid said today.
Most Asian stocks edged higher on Thursday as investors weighed earnings reports and energy shares led gains. Key benchmark indices in Singapore, Hong Kong, Japan and South Korea rose by 0.45% to 0.98%. Key benchmark indices in China, Indonesia and Taiwan fell by 0.02% to 0.86%.
Trading in US index futures indicated that the Dow could gain 37 points at the opening bell on Thursday, 25 April 2013. The S&P 500 and Nasdaq ended flat on Wednesday with Boeing's five-year high among the day's highlights, but weakness in Procter & Gamble and AT&T kept the Dow Jones Industrial Average in negative territory. Economic data showed orders for US durable goods fell in March by the most in seven months as demand slumped for commercial aircraft and business investment cooled.
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