Key benchmark indices extended losses to hit fresh intraday low in late trade. Weakness in European and Asian equities and lower US index futures weighed on sentiment adversely. The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit lowest level in nearly a week. The Sensex was provisionally down 126.80 points or 0.53%, up close to 20 points from the day's low and off about 210 points from the day's high. Index heavyweight and cigarette major ITC edged lower. Another index heavyweight Reliance Industries (RIL) also edged lower in choppy trade. The market breadth, indicating the overall health of the market, was weak. Bank stocks declined. But, ICICI Bank hit 52-week high. Auto stocks fell on profit booking after recent gains. Coal India rose on strong Q4 results.
The market hovered between gains and losses in early trade. It slipped into the red from positive terrain in morning trade. It hit fresh intraday low in mid-morning trade. It trimmed losses in early afternoon trade. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty pared gains after hitting their lowest level in nearly a week. Key benchmark indices trimmed losses after falling to fresh intraday low in afternoon trade. It trimmed gains after hitting fresh intraday high in mid-afternoon trade. It extended losses to hit fresh intraday low in late trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 753.37 crore on Monday, 18 May 2013, as per provisional data from the stock exchanges.
As per provisional figures, the S&P BSE Sensex was down 126.80 points or 0.53% to 20,097.18. The index fell 151.30 points at the day's low of 20,072.68 in late trade, its lowest level since 15 May 2013. The index rose 84.06 points at the day's high of 20,308.04 in mid-afternoon trade.
The CNX Nifty was down 46.25 points or 0.75% to 6,110.65, as per provisional figures. The index hit a high of 6,180.25 in intraday trade. The index hit a low of 6,102.35 in intraday trade, its lowest level since 15 May 2013.
The total turnover on BSE amounted to Rs 1955 crore, lower than Rs 2005.59 crore on Monday 20 May 2013.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,418 shares fell and 922 shares rose. A total of 152 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks fell and the rest of them rose. NTPC, Tata Steel and Jindal Steel & Power shed by 1.69% to 3.93%. TCS, Bhel and Infosys rose by 0.9% to 1.66%.
Index heavyweight Reliance Industries (RIL) dropped 0.63% to Rs 825.65. The stock hit high of Rs 839.50 and low of Rs 825.20.
Index heavyweight and cigarette major ITC declined 0.63% to Rs 332.55. The stock hit high of Rs 335.20 and low of Rs 329. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012.
On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012.
ITC's board of directors at its meeting held on Friday, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013.
Bank stocks declined. HDFC Bank declined 0.26% to Rs 708. The stock had hit a record high of Rs 724 hit in intraday trade on 20 May 2013.
Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), fell 2.16%.
Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of Baroda and Punjab National Bank shed by 0.34% to 2.61%.
ICICI Bank rose 0.11% to Rs 1,210. The stock pared gains after hitting 52-week high of Rs 1,234 in intraday trade today, 21 May 2013. The bank after trading hours on 16 May 2013, said it has received an aggregate equity capital repatriation of Canadian dollar 75 million from ICICI Bank Canada, its wholly owned banking subsidiary in Canada. Post the repatriation, the share capital of ICICI Bank Canada is Canadian dollar 857 million and its capital adequacy ratio continues to be strong, ICICI Bank said in a statement.
ICICI Bank said it already has a strong capital adequacy ratio, and the return of capital by the subsidiary will enhance the bank's ability to optimise capital deployment and return on equity. .
Coal India rose 2.11% on strong Q4 results. The company's net profit jumped 89.66% to Rs 2320.61 crore on 21.1% decline in net sales to Rs 121.93 crore in Q4 March 2013 over Q4 March 2012. Coal India's net profit rose 21.4% to Rs 9794.32 crore on 15.3% decline in net sales to Rs 352.25 crore in the year ended March 2013 over the year ended March 2012. The board of Coal India has recommended a final dividend of Rs 4.30 per share for the financial year ended March 2013. The company announced its Q4 results after market hours on Monday, 20 May 2013.
Auto stocks fell on profit booking after recent gains. India's largest car maker by sales, Maruti Suzuki India skidded 2.49% to Rs 1,698.45. The stock had hit record high of Rs 1,773.45 in intraday trade on Monday, 20 May 2013. The stock surged recently on the back of a weakening yen. Weak yen could boost earnings of Maruti Suzuki as it imports raw materials from its Japanese parent Suzuki Motor Corporation. It also pays annual royalty on sales to the Japanese parent.
Mahindra & Mahindra (M&M) fell 1.61% to Rs 987.40. The stock had hit record high of Rs 1,026.45 in intraday trade on Monday, 20 May 2013.
Tata Motors declined 3.06%. The company said on Saturday, 18 May 2013 that TML Holdings, a wholly owned subsidiary of the company, issued and allotted S$350 million in principal amount of 4.25% senior notes due 2018. The net proceeds from the issue will be used for the redemption of preference shares issued to Tata Motors and for general corporate purposes. Australia and New Zealand Banking Group, Citigroup Global Markets Singapore, Deutsche Bank AG, Singapore Branch and Standard Chartered Bank acted as joint lead managers and joint bookrunners for the issue.
This announcement does not constitute nor form a part of any offer or solicitation to purchase or subscribe for securities in Singapore, the United States, India or elsewhere, company said.
Two wheeler markers also dropped. Bajaj Auto shed 0.5%. The company's net profit fell 1% to Rs 766 crore on 4% rise in turnover to Rs 4990 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 1% to Rs 3044 crore on 3% growth in turnover to Rs 20793 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result was announced on 16 May 2013.
Bajaj Auto said that the company's performance in FY 2013 was good in a very difficult year for the automobile industry. The company's strategy to build strong brands and offer differentiated products in the front-end, and focus on cost and productivity improvements in the back-end, has yielded desired results, Bajaj Auto said.
India's largest motorcycle maker by sales, Hero MotoCorp dropped 0.93%. The company said on 1 May 2013 its total sales fell 9.5% to 4.99 lakh in April 2013 over April 2012.
As per the Q4 results calendar, L&T unveils Q4 results tomorrow, 22 May 2013. Tata Steel, State Bank of India and Bharat Heavy Electricals (Bhel) unveil Q4 results on Thursday, 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. Sun Pharma, Power Grid Corporation of India, DLF, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. Tata Motors, ONGC, Cipla, NMDC and BPCL unveil Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
Global credit rating agency Standard & Poor's (S&P) on Friday, 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth.
The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. 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 at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. 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 nudged lower on Tuesday, taking a breather after climbing to multiyear highs in the prior day's session. Key benchmark indices in France, UK and Germany were down by 0.01% to 0.67%.
UK's inflation slowed more than economists forecast in April to a seven-month low and producer prices rose the least since 2009 as fuel costs fell. Consumer prices rose 2.4% from a year earlier, compared with 2.8% in March, the Office for National Statistics said in London today.
Most Asian stocks fell on Tuesday from a five-year high as investors weighed the pace of Federal Reserve stimulus efforts. Key benchmark indices in Indonesia, Hong Kong, Singapore and South Korea fell by 0.07% to 0.54%. Key benchmark indices in China, Japan and Taiwan rose by 0.07% to 0.13%.
Japan's Economy Minister Akira Amari said in Tokyo today that the overly strong yen is in the process of being corrected and he hopes the exchange rate settles at a level suited to the nation's economic fundamentals.
Trading in US index futures indicated that the Dow could fall 14 points at the opening bell on Tuesday, 21 May 2013. US stocks took a breather from their recent rally Monday, as declines in some of the year's best-performing sectors weighed on benchmarks.
Chicago Federal Reserve President Charles Evans said yesterday the U.S. economy is "improving quite a lot." Investors are looking ahead to Wednesday, 22 May 2013, when Federal Reserve Chairman Ben Bernanke will testify to Congress and the Fed will release the minutes of its most recent policy-setting meeting.
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