Key benchmark indices hovered in negative terrain in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was down 98.73 points or 0.52%, up close to 30 points from the day's low and off about 140 points from the day's high. The market breadth, indicating the overall health of the market, was negative. Index heavyweight Reliance Industries (RIL) edged higher after the company's telecom arm and Bharti Airtel signed an agreement for international data connectivity. Shares of Bharti Airtel edged lower in choppy trade. Index heavyweight and cigarette major ITC was a tad lower.
Auto stocks fell. UltraTech Cement extended Monday's losses triggered by weak Q4 results. Other cement stocks also declined.
The market edged lower amid initial volatility as weakness in Asian stocks weighed on sentiment. The S&P BSE Sensex reversed direction after a higher opening took the index to 5-week high. The Sensex trimmed initial losses in morning trade. The Sensex extended losses to hit fresh intraday low in mid-morning trade. The market weakened further to hit fresh intraday low in early afternoon trade. A bout of volatility was witnessed as key benchmark indices recovered after hitting fresh intraday low in afternoon trade as European markets opened higher. The Sensex hovered in negative terrain in mid-afternoon trade.
The market may remain volatile in the near future as traders roll 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 expire on Thursday, 25 April 2013. The stock market remains shut tomorrow, 24 April 2013, on account of Mahavir Jayanti.
Foreign institutional investors (FIIs) bought shares worth a net Rs 915.82 crore on Monday, 22 April 2013, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was down 98.73 points or 0.52% to 19,071.10. The index rose 40.43 points at the day's high of 19,210.26 in opening trade, its highest level since 19 March 2013. The index fell 127.75 points at the day's low of 19,042.08 in early afternoon trade.
The CNX Nifty was down 33.95 points or 0.58% to 5,800.45. The index hit a high of 5,843.35 in intraday trade. The index hit a low of 5,791.55 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,231 shares declined and 941 shares rose. A total of 117 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks fell while rest of them rose.
Index heavyweight Reliance Industries (RIL) rose 1.18% to Rs 799.05. The scrip hit high of Rs 803.60 and a low of Rs 786.50 so far during the day. On the back of a surge in refining margins, RIL's net profit jumped 31.9% to Rs 5589 crore on 1.4% fall in turnover to Rs 86618 crore in Q4 March 2013 over Q4 March 2012. The company reported Q4 March 2013 results on 16 April 2013.
At the time of announcement of the results, RIL 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.
Bharti Airtel fell 0.75% to Rs 298.50. The stock hit high of Rs 307.60 and low of Rs 296.80. Bharti Airtel and RIL's telecom arm -- Reliance Jio Infocomm -- today, 23 April 2013, announced that they have signed an Indefeasible Right to Use (IRU) agreement, 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. It will connect Reliance Jio directly to the world's major business hubs and ISPs, thereby, helping the operator to meet the bandwidth demand and provide ultra-fast data experience to its customers.
The deal marks Reliance Jio's continued efforts to rapidly grow and expand both its international and domestic network and infrastructure by building an ecosystem with multiple carriers and service providers. Bharti and Reliance Jio will continue to build on this strategic framework and consider other mutual areas of cooperation and development to leverage their respective assets towards offering their customers a much richer experience, the two companies said in a joint statement.
Index heavyweight and cigarette major ITC fell 0.22% to Rs 316.20. The stock reversed direction after hitting record high of Rs 317.50 at the onset of the trading session today, 23 April 2013. The stock hit low of Rs 314.10 in intraday trade today, 23 April 2013. The government 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.
UltraTech Cement declined 0.62%, with the stock extending Monday's 2.52% losses triggered by weak Q4 results. The company during market hours Monday, 22 April 2013, said that net profit fell 16.26% to Rs 726 crore on 1.03% rise in net sales to Rs 5389 crore in Q4 March 2013 over Q4 March 2013. The bottom line was adversely impacted by additional tax liability. Tax expenses for the quarter ended 31 March 2013 and year ended 31 March 2013 (FY 2013) includes additional charge for deferred tax liability of Rs 87 crore. This is due to increase in the rate of surcharge on income tax as proposed in the Finance Bill 2013.
The company's net profit rose 8.54% to Rs 2655 crore on 10.24% rise in net sales to Rs 20018 crore in the year ended 31 March 2013 (FY 2013) over FY 2012.
With regard to future business outlook, UltraTech Cement said that the long term cement demand in India is likely to grow over 8% in line with GDP growth. The value drivers for growth will continue to be housing demand and infrastructure development. The cement major said that the company is committed to growth and towards this end, its board has approved the expansion of capacity at Aditya Cement Works in Rajasthan by 2.9 million metric tonnes, including the setting up of two grinding units. The expansion envisages a capital outlay of around Rs 2000 crore to be funded through a mix of internal accrual and borrowing. The additional facility is expected to be commissioned by March 2015.
Among other cement stocks, ACC and Ambuja Cement dropped by 0.17% to 1.73%.
Auto stocks dropped. Tata Motors, M&M and Maruti Suzuki India shed by 0.7% to 2.21%. 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 today, 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.
Jindal Steel & Power slumped 4.04%. The stock was the top loser from the Sensex pack.
The focus of the market is on Q4 results. Axis Bank will announce its Q4 March 2013 results tomorrow, 24 April 2013. Jindal Steel & Power declares its Q4 results on 25 April 2013. Hero MotoCorp, ICICI Bank and Maruti Suzuki unveil Q4 results on 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.
The Prime Minister's Economic Advisory Council in a report released today, 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.
On the external sector, the Current Account Deficit is expected to ease to 4.7% of GDP in 2013-14 from an estimated 5.1% of GDP in 2012-13. 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.
Global growth although projected to pick up in 2013 would continue to remain at modest levels. In such a scenario India's projected growth rate of 6.4% for 2013-14 is relatively high and respectable, the report added.
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.
Parliament reconvened for the second half of the Budget Session Monday, 22 April 2013. The session ends on 10 May 2013.
European stock markets were mostly in the green on Tuesday after data showed the pace of region's downturn didn't accelerate in April, although German stocks erased earlier gains after a disappointing reading. Key benchmark indices in UK and were up 0.36% to 0.78%. Germany's DAX fell 0.22%.
Markit's flash German composite Purchasing Managers' Index (PMI), measuring growth in both manufacturing and services, shrank for the first time in five months in April. The purchasing managers' index for France rose to a four-month high in April.
Euro-area services and manufacturing output contracted for a 15th month in April as the currency bloc struggled to emerge from a recession. A composite index based on a survey of purchasing managers in both industries held at 46.5, London-based Markit Economics said today. A reading below 50 indicates contraction.
Asian stocks edged lower on Tuesday after a preliminary report showed Chinese manufacturing expanded less than economists estimated. Key benchmark indices in China, Hong Kong, Indonesia, Japan, South Korea, Singapore and Taiwan fell by 0.29% to 2.57%.
China's manufacturing is expanding at a slower pace this month, adding to concern that the world's second-biggest economy is faltering. The preliminary report for a Purchasing Managers' Index released by HSBC Holdings Plc and Markit Economics showed a reading of 50.5 for April compared with a final 51.6 for March.
Trading in US index futures indicated that the Dow could fall 34 points at the opening bell on Tuesday, 23 April 2013. US stocks edged higher on Monday as last week's sharp losses brought buyers back to the market and Microsoft Corp shares jumped after an activist investor took a stake in the company.
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