Key benchmark indices edged lower amid initial volatility as weakness in Asian stocks weighed on sentiment. The barometer index, the S&P BSE Sensex, was down 35.83 points or 0.19%, up close to 10 points from the day's low and off about 75 points from the day's high. Index heavyweight Reliance Industries (RIL) edged lower. Another index heavyweight and cigarette major ITC reversed direction after hitting record high at the onset of the trading session. Most oil and gas exploration firms declined. Cairn India dropped after Q4 results. HDFC Bank dropped ahead of its Q4 results today, 23 April 2013. The market breadth, indicating the overall health of the market, was positive.
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 9:26 IST, the S&P BSE Sensex was down 35.83 points or 0.19% to 19,134. The index rose 40.43 points at the day's high of 19,210.26 in opening trade. The index fell 45.28 points at the day's low of 19,124.55 in early trade.
The CNX Nifty was down 12.20 points or 0.21% to 5,822.20. The index hit a high of 5,843.35 in intraday trade. The index hit a low of 5,814.95 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 412 shares advanced and 297 shares declined. A total of 23 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks declined while rest of them rose.
Most oil & gas exploration firms declined. Index heavyweight Reliance Industries (RIL) declined 0.16% to Rs 788.10. 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.
ONGC declined 0.06%. Oil India rose 1.33%.
The Cabinet Committee on Investment (CCI) on Monday, 22 April 2013, cleared 25 exploration and production (E&P) blocks for continued exploration of oil and gas, out of 31 E&P blocks where work had been stopped on account of security restrictions imposed by the Ministry of Defence. Out of 31 blocks, 9 blocks have been fully cleared and 16 blocks have been cleared with specific conditions. Due to clearances given at this meeting, investment already made to the extent of $2.71 billion will be put to use and further investment to the extent of $1.9 billion will be made in the exploration activities in the next 3-5 years, the government said in a statement. The details of the E&P projects cleared by the CCI were not announced.
Along with the clearances given by the CCI on 20 March 2013, in summary, out of total 40 blocks, 31 blocks have been cleared by CCI at its meetings held on 20 March 2013 and 22 April 2013 which will put to use an investment of $13.42 billion on oil and gas exploration which has already been incurred and it will also bring in an additional investment of $2.5 billion over the next 3-5 years in exploration activities, the government said. The clearances given by CCI will remove the uncertainty relating to these 31 blocks and energize oil and gas exploration activities in the country. Huge investment is expected in these blocks in the coming years based on discovery of hydrocarbons, the government said.
Cairn India declined 1.45% after Q4 results. The company's consolidated net profit rose 17.26% to Rs 2563.60 crore on 29.93% growth in total income to Rs 4582.52 crore in Q4 March 2013 over Q4 March 2012. The oil exploration firm announced the results after trading hours on Monday, 22 April 2013.
Cairn India's consolidated net profit excluding foreign exchange fluctuation and impact of the reorganization, jumped 56% to Rs 11606.30 crore on 48% growth in revenue to a record Rs 17524.10 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). Earnings before interest taxation, depreciation and amortisation (EBITDA) jumped 41% to Rs 13033.20 crore in FY 2013 over FY 2012.
Commenting on the financial performance, Elango P, Whole Time Director and Interim CEO, Cairn India said that the operating environment has substantially improved with key approvals coming in at a faster pace that enabled the company to ramp up Mangala production, bring Aishwariya field online, commence gas sales and most importantly re-commence exploration in Rajasthan. He said that the company has initiated the largest ever exploration and appraisal programme to unlock further potential in Rajasthan as well as focus on next stage of growth beyond Rajasthan. Commensurate with the development and exploration activity across the existing portfolio, the company has planned a net capital investment of $3 billion through FY 2015-16.
Index heavyweight and cigarette major ITC fell 0.27% to Rs 316.05. The stock reversed direction after hitting record high of Rs 317.50 at the onset of the trading session today, 22 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.
India's second largest private sector bank in terms of operating income, HDFC Bank dropped 1.02% ahead of its Q4 results today, 23 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 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.
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 0.3% to 2.14%.
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.
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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