Key benchmark indices edged higher in choppy trade as European stocks rose after Chinese trade data for July 2013 signaled improvement in economic conditions for the world's second biggest economy. The S&P BSE Sensex jumped 124.46 points or 0.67%, off close to 40 points from the day's high and up about 170 points from the day's low. The market breadth, indicating the overall health of the market, was strong. The BSE Small-Cap and Mid-Cap indices rose more than 1% each, with both these indices outperforming the Sensex.
Indian stocks snapped two-day losing streak today, 8 August 2013. The Sensex had lost 517.38 points or 2.7% in two trading days to settle at 18,664.88 on Wednesday, 7 August 2013 from a recent high of 19,182.26 on Monday, 5 August 2013. The Sensex has declined 556.36 points or 2.87% so far in August month (till 8 August 2013). The Sensex has declined 637.37 points or 3.28% in calendar 2013 so far (till 8 August 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 1,654.28 points or 8.09%. From a 52-week low of 17,250.80 on 5 September 2012, the Sensex has surged 1,538.54 points or 8.91%.
Coming back to today's trade, realty stocks gained for the second straight day. Mining and metal stocks rose after China reported much better than expected trade results for July. Ranbaxy Laboratories jumped after the company reported improved Q2 results after trading hours on Wednesday, 7 August 2013. Asian Paints rose after completing acquisition of majority stake in Sleek Group. Cipla gained ahead of its Q1 results tomorrow, 9 August 2013. Sun Pharmaceuticals Industries declined ahead of its Q1 results tomorrow, 9 August 2013.
The stock market remains closed tomorrow, 9 August 2013, on account of Ramzan Id.
The S&P BSE Sensex jumped 124.46 points or 0.67% to settle at 18,789.34, its highest closing level since 5 August 2013. The index jumped 164.38 points at the day's high of 18,829.26 in late trade. The index fell 43.21 points at the day's low of 18,621.67 in early trade.
The CNX Nifty was up 46.55 points or 0.84% to 5,565.65, its highest closing level since 5 August 2013. The index hit a high of 5,577.60 and a low of 5,510.05 in intraday trade.
The BSE Mid-Cap index rose 1.34% and the BSE Small-Cap index gained 1.32%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1730 crore, lower than Rs 1879.26 crore on Wednesday, 7 August 2013.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,381 shares rose and 867 shares fell. A total of 152 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks rose and rest of them fell.
NTPC rose 0.66%. NTPC is participating in a joint venture power project with Ceylon Electricity Board (CEB) in Sri Lanka. A Joint Venture company named Trincomalee Power Company (TPCL) was incorporated in Colombo on 26 October 2011, with 50:50 equity participation from NTPC and CEB of Sri Lanka. A 2x250 megawatts (MW) coal based power project will be developed in Trincomalee, Sri Lanka under the joint venture.
Land for the project has been identified by the Govt. of Sri Lanka for leasing to the JV company. Project implementation is likely to commence upon signing of Power Purchase Agreement and Implementation Agreement between TPCL and CEB and Government of Sri Lanka respectively.
Entire power produced from the project shall be purchased by CEB under the Power Purchase Agreement. This information was given by Minister of State (MoS) (I/C) Power Sh. Jyotiraditya M. Scindia in a written reply in the Lok Sabha today, 8 August 2013.
Coal India (CIL) rose 2.07%. The company announced today, 8 August 2013, that the All India Coal Workers' Federation (CITU) has served strike notice vide letter dated 7 August 2013 which was received by the company on 8 August 2013 against proposed divestment of 5% of CIL shares and or restructuring of Coal India. The federation also demanded that non-implemented issues of NCWA-IX viz. increase in pension and post retirement medical benefits be implemented immediately. Otherwise, they will go for 3 days strike in Coal India and its all subsidiaries commencing from 19 September 2013.
L&T fell 0.1% to Rs 780.15. The stock had hit a 52-week low of Rs 771.35 in intraday trade on Wednesday, 7 August 2013.
Bharat Heavy Electricals (Bhel) gained 1.42% to Rs 117.55. The stock had hit 52-week low of Rs 112.10 in intraday trade on 6 August 2013.
Most auto stocks gained. Maruti Suzuki India rose 3.88%. The Reserve Bank of India on Wednesday, 8 August 2013, lifted restrictions placed on foreign institutional investors buying shares in Maruti Suzuki India (MSIL) after their holdings fell below the prescribed limit. The ceiling on investment by foreign institutional investors (FIIs) in Maruti Suzuki is 24%. Total foreign holding in Maruti Suzuki was 22.10% as at 30 June 2013, of which 22.03% was held by FIIs.
Tata Motors extended Wednesday's post result slide. The stock fell 0.05% to Rs 278.70. The stock was volatile. The scrip hit high of Rs 292.90 and low of Rs 275.50. The stock had declined 2.96% on Wednesday, 7 August 2013, after the company reported weak Q1 result. The company's consolidated net profit fell 23.11% to Rs 1726 crore on 8% growth in revenue (net of excise) to Rs 46785 crore in Q1 June 2013 over Q1 June 2012. The company said that strong demand, growth in volumes, richer product mix and favourable foreign exchange movement at Jaguar Land Rover (JLR) helped offset weak operating environment in Tata Motors' standalone business. JLR contributes to majority of Tata Motors' revenue.
JLR's revenues grew 12.6% to GBP 4097 million in Q1 June 2013 over Q1 June 2012. JLR's operating profit jumped 28.1% to GBP 675 million in Q1 June 2013 over Q1 June 2012, reflecting wholesales volume increase, favourable exchange rate, richer product mix supported by the launch of all-new Range Rover and F-TYPE, Tata Motors said. JLR's profit before tax jumped 24.6% to GBP 415 million in Q1 June 2013 over Q1 June 2012, due to higher operating profit partially offset by higher depreciation and amortisation as well as higher finance expense, net of more favourable exchange revaluation. JLR's profit after tax (PAT) jumped 28.8% to GBP 304 million in Q1 June 2013 over Q1 June 2012. JLR financials are as per International Financial Reporting Standards (IFRS).
M&M gained 2.42%.
Shares of two wheeler companies gained. Hero MotoCorp (up 1.14%) and Bajaj Auto (up 0.27%), edged higher.
Eicher Motors rose 3.68% after consolidated net profit rose 21.54% to Rs 92.32 crore on 4.67% increase in total income to Rs 1,690.98 crore in Q2 June 2013 over Q2 June 2012. The result was announced after market hours on Wednesday, 7 August 2013.
Bharat Forge surged 16.62% after net profit surged 80.8% to Rs 90.60 crore on 17.3% increase in total revenues to Rs 791.50 crore in Q1 June 2013 over Q4 March 2013. The company announced the results before trading hours today, 8 August 2013.
Earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 28.5% to Rs 196 crore in Q1 June 2013 over Q4 March 2013. EBITDA margin increased to 24.8% in Q1 June 2013 compared with 22.6% in Q4 March 2013.
The company's net profit fell 13.9% to Rs 90.60 crore on 15.5% decline in total revenues to Rs 791.50 crore in Q1 June 2013 over Q1 June 2012. EBITDA fell 28.5% to Rs 196 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin decreased to 24.8% in Q1 June 2013 compared with 25.1% in Q1 June 2012.
Indusind Bank rose 0.74%. The bank announced during market hours today, 8 August 2013 that it has opened two new branches in the Gotri Main Road and Nizampura area of Vadodara. With the inauguration of these two branches, Induslnd Bank now has five branches in Vadodara and thirty six branches overall in the state of Gujarat.
Hospitality shares were in demand. EIH, Indian Hotels, and Hotel Leela Ventures rose by 4.9% to 9.5%.
Asian Paints rose 1.5% after the company said it has acquired 51% stake in Kitchen solutions provider Sleek International. The investment was approved by Asian Paints' board today, 8 August 2013, and the infusion of Rs 120 crore in two tranches for 51% stake in Sleek International will be completed by 10 August 2013, the company said.
The Ahuja family, the current promoters of Sleek International will hold the balance 49% in the company. Rajesh T Ahuja, the current CEO, will continue to be the Managing Director & CEO and Monesh T Ahuja will also continue as the Executive Director of the joint venture. Asian Paints will nominate 2 non executive directors on the board of the joint venture and one of these nominees will be the Chairman.
Sun Pharmaceuticals Industries declined 3.26%. The company unveils Q1 results tomorrow, 9 August 2013.
Dr Reddy's Laboratories dropped 1.57%.
Lupin extended Wednesday's losses triggered by the company's Q1 results falling short of market expectations. The stock was off 0.79%. The stock had lost 7.03% on Wednesday, 7 August 2013. The company's consolidated net profit jumped 43.03% to Rs 401.06 crore on 9.1% growth in net sales to Rs 2420.70 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result during market hours on Wednesday, 7 August 2013. Earnings before interest, taxation, depreciation and amortization (EBITDA) jumped 43.5% to Rs 690.50 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin expanded to 28.5% of net sales in Q1 June 2013, from 21.7% in Q1 June 2012.
Lupin also announced on Wednesday that it has signed a strategic licensing agreement with US pharmaceutical company Romark Laboratories, L.C. (Romark) which grants Lupin exclusive rights to promote, distribute and market Alinia (nitazoxanide) for Oral Suspension in the US. Alinia (nitazoxanide) is the first thiazolide approved by the USFDA for the treatment of diarrhea caused by Cryptosporidium and Giardia and is the only USFDA-approved treatment for Cryptosporidium.
Cipla jumped ahead of its Q1 results tomorrow, 9 August 2013. The stock was up 5.55%.
Ranbaxy Laboratories jumped a staggering 27.49% after the company reported improved Q2 results after trading hours on Wednesday, 7 August 2013. The company reported consolidated net loss of Rs 524.24 crore for Q2 June 2013, lower than net loss of Rs 585.72 crore in Q2 June 2012. Sales declined 17.83% to Rs 2633.20 crore in Q2 June 2013 over Q2 June 2012. Ranbaxy said that base business sales registered double digit growth and base business margins continued to improve in Q2 June 2013.
Ranbaxy said that bottom line in Q2 June 2013 was adversely impacted by the depreciation of rupee against the dollar. Though favourable to Ranbaxy's export business, the rupee depreciation had an adverse impact on the company's profitability mainly on account of application of the accounting standards that require marking to market the entire derivatives and foreign currency denominated loans outstanding. There was a net charge of Rs 540.30 crore on this account in Q2 June 2013, Ranbaxy said.
Ranbaxy said that the macroeconomic environment continued to be challenging in certain countries in Western Europe. Specifically in France, the generic pharma industry has been impacted adversely by continuing pricing and trade challenges. Ranbaxy has accordingly taken an impairment of goodwill of Rs 119.20 crore in Q2 June 2013 pertaining to its operations in France in line with the accounting standards.
Ranbaxy said the company registered profit after tax of Rs 135.20 crore in Q2 June 2013 if one excludes the impact of forex losses and other exceptional items.
Ranbaxy said sales declined on year on year basis in Q2 June 2013 due to base effect. The company said sales in Q2 June 2012 was boosted by contribution from exclusivities. On a like-to-like basis, sales grew in double digits over the corresponding quarter, Ranbaxy said.
Mr. Arun Sawhney, CEO & Managing Director, Ranbaxy said that the company's focus on branded markets and business continues and this will help navigate the growth of Ranbaxy in the coming years. He also said that the management is consciously working on efficiency improvement across the organization.
Ranbaxy during market hours today, 8 August 2013 said that its joint venture in Malaysia viz. Ranbaxy Malaysia Sdn Bhd (RMSB) has been allocated the site for setting up a greenfield manufacturing facility in Malaysia. The greenfield manufacturing facility will be built on an area of about 15 acres, with an investment of around $35 million providing employment to over 200 people. This will be Ranbaxy's second manufacturing facility in Malaysia. RMSB is a joint venture between Ranbaxy and Malaysian shareholders. RMSB is one the major generic companies in Malaysia.
Mining and metal stocks rose after China reported much better than expected trade results for July. China is the world's largest consumer of copper and aluminum. China's copper imports in July 2013 rose 12% from a year ago, and increased 8.1% from June 2013. Sterlite Industries (up 1.67%), Sesa Goa (up 0.46%), Tata Steel (up 5.54%), Hindalco Industries (up 5.37%), Sail (up 3.88%), Jindal Steel & Power (up 1.82%), and Hindustan Zinc (up 2.4%), gained.
Meanwhile, the Indian government on Wednesday allowed import of some steel products for certain critical applications without local quality certification, a move that could further hit domestic suppliers after imports rose 15% last fiscal year. The government said imports for projects in sectors such as infrastructure, petroleum, nuclear reactors and defence would be exempted from applicable local quality standards if at least Rs 1000 crore is invested in such a project. The exporters will, however, have to obtain quality certificates from their country of origin, a notification from the commerce and industry ministry said.
NMDC rose 2.55%, with the stock extending Wednesday's 5.38% gains triggered by the company's better-than-expected Q1 results. The company's net profit fell 17.51% to Rs 1572.19 crore on 0.02% decline in total income to Rs 3391.53 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result during market hours on Wednesday, 7 August 2013.
Realty stocks gained for the second straight day. DLF (up 4.24%), D B Realty (up 4.99%) and HDIL (up 2.93%), edged higher.
Unitech rose 0.26%, with the stock reversing intraday losses. The stock had risen 14.72% in a single trading session on Wednesday, 7 August 2013. The company during market hours on Tuesday, 6 August 2013, reported 37.08% rise in consolidated net profit to Rs 62.89 crore on 35.13% rise in total income to Rs 597.67 crore in Q1 June 2013 over Q1 June 2012.
Adani Enterprises dropped 0.33% to Rs 166.35. The company during trading hours today, 8 August 2013, reported consolidated net loss of Rs 278.30 crore for Q1 June 2013, compared with net profit of Rs 402.88 crore in Q1 June 2012. Total income rose 5% to Rs 11547 crore in Q1 June 2013 over Q1 June 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) jumped 53% to Rs 1937 crore in Q1 June 2013 over Q1 June 2012, led by higher contribution from port and power businesses.
The company said net loss in Q1 June 2013 verses net profit in Q1 June 2012 was due to marked to market (MTM) provision due to rupee depreciation, non-cash items like depreciation, provision for deferred tax and higher imported coal due to limited availability of domestic coal in power business.
Commenting on the results, Mr Gautam Adani, Chairman Adani Group, said: "We have experienced a highly rewarding quarter with Mundra Port emerging as no. 1 port, coal trading sustaining its leading position and Power business achieving 7,260 MW operational capacity. We are confident of overcoming the present difficulties faced by the power sector and enriching its financial performance in the ensuing quarters. Our integrated business model of Resources, Logistics and Energy sectors is best suited to reap benefits of sustainable growth."
Mr Devang Desai, CFO Adani Group and Executive Director, Adani Enterprises, said: "Our quarterly financial performance has been adversely affected due to sudden currency volatility and continuing constraints of coal availability, transmission bottleneck and tariff related issues in the power business. We follow a judicious currency hedging policy in line with our business aligned financial strategy. With focused efforts, we shall ensure sustainable returns from the power business and improve our overall performance."
Great Eastern Shipping Company rose 1.44% to Rs 238.80 after the company's board approved buyback of equity shares. The company made the announcement during trading hours today, 8 August 2013. The board of Great Eastern Shipping Company (GE Shipping) approved buyback of fully paid equity shares at a maximum price of Rs 279 per share, which is 16.83% premium to the ruling market price.
The company said it has set aside an aggregate amount of Rs 279 crore for the buyback, which is 5.53% of the total paid-up equity capital plus free reserves as per the audited balance sheet of the company for the year ended 31 March 2013.
Gujarat Gas Company rose by maximum permissible 20% level at Rs 194.75 after consolidated net profit surged 90.24% to Rs 100.60 crore on 2.49% decline in net sales to Rs 746.80 crore in Q2 June 2013 over Q2 June 2012. The result was announced after market hours on Wednesday, 7 August 2013.
Gujarat Gas Company's consolidated net profit jumped 69.08% to Rs 100.60 crore on 2.11% decline in net sales to Rs 746.80 crore in Q2 June 2013 over Q1 March 2012.
The company said the total volume of gas sold during the quarter was 239 million metric standard cubic meters (mmscm) in Q2 June 2013, which was lower than 264 mmscm in Q1 March 2013. While additional volumes have been commissioned in all the segments, volumes in the industrial segment have been undergoing a churn with increasing price of gas.
The company said it connected more than 17,500 new residential customers during the quarter, taking the total number of new domestic connections to 28,500 till June 2013. The company also commissioned more than 43,000 standard cubic meters of gas per day (scmd) of new volumes in the industrial sector during the quarter.
Commenting on the second quarter results, Mr. Sugata Sircar, Managing Director, Gujarat Gas said: "Re-gasified liquefied natural gas (RLNG) cost came off the peak levels it had reached in the immediately preceding quarter, thereby enabling some recovery of margins which were impacted in the preceding quarter. RLNG continues to be a significant portion of the sourcing portfolio. We continue to carefully balance between volumes and prices to sustain value."
Welspun India jumped 9.06% after net profit jumped 42% to Rs 89.90 crore on 25% increase in revenues to Rs 944.60 crore in Q1 June 2013 over Q4 March 2013. The result was announced after market hours on Wednesday, 7 August 2013.
Welspun India's net profit jumped 75% to Rs 89.90 crore on 3% fall in revenues to Rs 944.60 crore in Q1 June 2013 over Q1 June 2012. EBITDA rose 31% to Rs 222.90 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin grew to 23.6% in Q1 June 2013 compared with 17.5% in Q1 June 2012. As on 30 June 2013, the company's net long term debt stood at Rs 1079.90 crore implying a net long term debt/equity of 1.16x.
European stocks edged higher on Thursday, 8 August 2013, boosted by upbeat Chinese trade data and well-received earnings reports from some of the region's prominent firms. Key benchmark indices in UK, Germany and France were up by 0.31% to 0.5%.
German exports slightly recovered in June from May's sharp decline, official data showed Thursday, but foreign trade remains lackluster amid slack demand from the struggling euro zone and a weakening Chinese growth outlook. Exports of goods, as opposed to services, rose 0.6% in June from May, but declined 2.1% from June 2012, data from the federal statistics office showed, indicating that foreign trade continues to lack momentum.
Exports--traditionally a key driver of economic growth in Europe's largest economy--declined 0.6% in January-June compared with the same period a year earlier, as shipments to the euro zone dropped 3.1%. Imports, meanwhile, declined for the first time in four months. German goods imports in June were down 0.8% on the month and declined 1.2% on the year.
Asian stocks were mostly lower on Thursday, 8 August 2013. Key benchmark indices in China, Japan and Taiwan fell by 0.09% to 1.59%. Key benchmark indices in Hong Kong and South Korea were up 0.3% to 0.31%. Stock markets in Singapore, Indonesia and Malaysia were closed for holidays.
China's exports and imports rebounded in July, exceeding estimates and adding to signs that the world's second-largest economy is stabilizing following a two-quarter slowdown. Shipments abroad rose 5.1% from a year earlier, the General Administration of Customs said in Beijing today. Imports jumped 10.9%, leaving a trade surplus of $17.8 billion.
The Bank of Japan today, 8 August 2013, refrained from adding to unprecedented monetary stimulus after a two-day monetary policy review. Governor Haruhiko Kuroda's board stuck with an April pledge to expand the monetary base by 60 trillion yen to 70 trillion yen ($723 billion) per year, a statement released in Tokyo today showed.
Australian employers unexpectedly cut payrolls in July and unemployment held at an almost four-year high, denting Prime Minister Kevin Rudd's bid for a come-from-behind election win. The number of people employed fell 10,200, the statistics bureau said in Sydney today.
Trading in US index futures indicated that the Dow could gain 41 points at the opening bell on Thursday, 8 August 2013. US stocks lost ground for a third consecutive session on Wednesday on growing uncertainty over when the Federal Reserve will start to wind down its stimulus, which has been a driving force behind the rally in equities this year. Federal Reserve Bank of Cleveland President Sandra Pianalto said on Wednesday that the central bank would be prepared to scale back asset purchases if the labor market remains on the stronger path followed since last fall. Charles Evans, the president of the Federal Reserve Bank of Chicago, said on Tuesday that the Fed would probably scale back its bond-buying program later this year, perhaps beginning as early as next month, depending on economic data. That echoed comments made earlier on Tuesday by Dennis Lockhart, the president of the Federal Reserve Bank of Atlanta.
The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
Powered by Capital Market - Live News
