Key benchmark indices extended losses to hit fresh intraday low in mid-morning trade as weakness in Asian stocks weighed on sentiment. The barometer index, the S&P BSE Sensex, was down 106.64 points or 0.56%, up close to 10 points from the day's low and off about 145 points from the day's high. Index heavyweight and cigarette major ITC was a tad lower. Index heavyweight Reliance Industries (RIL) and Bharti Airtel, both, edged higher after RIL's telecom arm and Bharti signed an agreement for international data connectivity. The market breadth, indicating the overall health of the market, was positive.
Bank stocks declined on profit booking after recent gains triggered by expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost growth amid slowing wholesale price inflation. Metal stocks rose across the board.
The market edged lower amid initial volatility as weakness in Asian stocks weighed on sentiment. The S&P BSE Sensex edged lower 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 may remain volatile this week 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 11:20 IST, the S&P BSE Sensex was down 106.64 points or 0.56% to 19,063.19. 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 113.30 points at the day's low of 19,056.53 in mid-morning trade.
The CNX Nifty was down 34.25 points or 0.59% to 5,800.15. The index hit a high of 5,843.35 in intraday trade. The index hit a low of 5,799.55 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 882 shares advanced and 814 shares declined. A total of 91 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks rose while rest of them fell.
Index heavyweight Reliance Industries (RIL) rose 0.86% to Rs 796.55. The scrip hit high of Rs 798.70 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 rose 0.33%. 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 0.21% to Rs 316.25. 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.
Metal stocks rose across the board. Jindal Steel & Power, Sterlite Industries, Hindalco Industries, JSW Steel, Bhushan Steel, Sail, and Hindustan Zinc gained by 0.66% to 1.86%.
Tata Steel gained 1.26% to Rs 310.60. The stock had struck a 52-week low of Rs 292.70 in intraday trade on 16 April 2013. The company on Monday, 22 April 2013, said that Abja Investment Co. Pte, Singapore, a wholly owned subsidiary of Tata Steel is contemplating an issuance of Singapore dollar bonds listed on the Singapore Exchange in respect of which a preliminary offering circular has been prepared.
Bank stocks declined on profit booking after recent gains triggered by expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost growth amid slowing wholesale price inflation. Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), fell 1.29%.
Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank shed by 0.67% to 2.13%.
ICICI Bank dropped 1.04%. ICICI Bank announces Q4 results on 26 April 2013.
Axis Bank declined 1.08%. The bank will announce its Q4 March 2013 results tomorrow, 24 April 2013.
India's second largest private sector bank in terms of operating income, HDFC Bank dropped 0.68% to Rs 694.50 ahead of its Q4 results today, 23 April 2013. HDFC Bank shares have witnessed a pre-result rally. The stock jumped 12.68% to settle at Rs 699.25 on BSE on Monday, 22 April 2013, from a recent low of Rs 620.55 on 9 April 2013.
HDFC Bank has been consistently reporting about 30% year on year growth in bottom line in each quarter for quite some time now.
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.
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.
Asian stocks reversed initial gains 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 0.19% to 2.1%.
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 28 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.
In Europe, PMI reports from Germany and the euro zone as a whole are due to be released later in the global day today, 23 April 2013.
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