The Diwali has started with a bang on the bourses. The barometer index, the S&P BSE Sensex, attained record high on closing as well as on intraday basis on the first day of Diwali today, 1 November 2013, which is Dhanteras. The 50- unit CNX Nifty attained its highest closing level in nearly three years. The market breadth, indicating the overall health of the market, was positive. The Sensex garnered 32.29 points or 0.15%, off close to 100 points from the day's high and up about 55 points from the day's low.
Indian stocks gained for the fourth trading session in a row today, 1 November 2013. The Sensex has garnered 626.53 points or 3.04% in four trading sessions from a recent low of 20,570.28 on 28 October 2013. The Sensex surged 1,784.75 points or 9.2% in October 2013. The Sensex has gained 1,770.10 points or 9.11% in calendar 2013 so far (till 1 November 2013). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 3,748.10 points or 21.48%.
Coming back to today's trade, most bank stocks extended Thursday's gains. Mahindra & Mahindra (M&M) rose after reporting strong growth in tractor sales for the month just gone by.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1961.20 crore from the secondary equity markets on Thursday, 31 October 2013, as per data from Securities & Exchange Board of India.
The stock exchanges will hold a special live trading session on Sunday, 3 November, 2013, on account of Muhurat trading on Diwali. The trading will start at 18:15 IST and will end at 19:30 IST on that day. The stock market remains closed on Monday, 4 November 2013, on account of Diwali-Balipratipada.
The S&P BSE Sensex garnered 32.29 points or 0.15% to settle at 21,196.81, a record closing high. The index jumped 129.36 points at the day's high of 21,293.88 in morning trade, which is a record high. The index fell 23.20 points at the day's low of 21,141.32 in afternoon trade.
The CNX Nifty garnered 8.05 points or 0.13% to 6,307.20, its highest closing level since 5 November 2010. The index hit a high of 6,332.60 in intraday trade. The index hit a low of 6,286.95 in intraday trade.
The BSE Mid-Cap index rose 1.15% and the BSE Small-Cap index gained 0.74%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2734 crore, higher than Rs 2534.07 crore on Thursday, 31 October 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,405 shares rose and 1,047 shares fell. A total of 168 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks rose and rest of them fell.
Most bank stocks extended Thursday's gains. ICICI Bank (up 0.71%) and HDFC Bank (up 0.52%), gained.
Bank of Baroda rose 4.37%, with the stock extending Thursday's post-result rally. The bank's net profit declined 10.24% to Rs 1168.10 crore on 9.38% increase in total income to Rs 10447.31 crore in Q2 September 2013 over Q2 September 2012. The bank announced the result during market hours on Thursday, 31 October 2013.
Bank of Baroda (BoB)'s ratio of gross non-performing assets (NPAs) to gross advances increased to 3.15% as on 30 September 2013, from 2.99% as on 30 June 2013 and 1.98% as on 30 September 2012. The ratio of net NPAs to net advances increased to 1.86% as on 30 September 2013 from 1.69% as on 30 June 2013 and 0.82% as on 30 September 2012.
Bank of India rose 5.16%. Bank of India said after market hours on Thursday, 31 October 2013, that the board of directors of the bank at its meeting held on 31 October 2013 has approved the raising of Tier-1 capital by issue of fresh equity shares to the Government of India (Promoters) aggregating Rs 1000 crore (inclusive Premium amount), on preferential basis, subject to necessary approvals.
The stock had vaulted 21.26% in a single trading session on Thursday, 31 October 2013, after the state-run bank reported strong Q2 result. The bank's net profit surged 105.98% to Rs 621.77 crore on 16.18% increase in total income to Rs 10339.55 crore in Q2 September 2013 over Q2 September 2012. The result was announced during trading hours on Thursday, 31 October 2013.
Bank of India (BoI)'s operating profit rose 13.43% to Rs 2103 crore in Q2 September 2013 over Q2 September 2012. Net interest income (NII) rose 15.07% to Rs 2527 crore in Q2 September 2013 over Q2 September 2012. Non-interest income grew 23.04% to Rs 1100 crore.
Canara Bank gained 1.94% after jumping 10.82% on Thursday.
Union Bank of India jumped 8.83%. Punjab National Bank rose 4.65%.
State Bank of India (SBI) rose 4.28%. The bank announced during trading hours on Thursday, 31 October 2013, that it has decided to revise its interest rates on bulk (Rs 1 crore and above) and retail term deposits (below Rs 1 crore) with effect from Friday, 1 November 2013. The bank has revised interest rate downwards on bulk deposits of all tenors. Interest rate on bulk term deposits for the period 1 year to less than 2 years has been reduced to 8.25% from 8.75%.
The bank has decided to increase interest rate on retail term deposits of maturity period of 180 days to 210 days to 7% from 6.8%.
SBI announced after market hours on Wednesday, 30 October 2013, that its central board has approved raising upto Rs 2000 crore through preferential allotment of equity shares in favour of the Government of India.
Power Finance Corporation (up 6.69%) and Rural Electrification Corporation (up 4.71%), surged.
Bharti Airtel rose 0.44% to Rs 366.25. The stock hit 52-week high of Rs 373.50 in intraday trade today, 1 November 2013. The company's consolidated net profit declined 29% to Rs 512 crore on 9.9% increase in total revenue to Rs 21324 crore in Q2 September 2013 over Q2 September 2012. The company announced the result during market hours on Wednesday, 30 October 2013.
Bharti Airtel's consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) jumped 15.1% to Rs 6832 crore in Q2 September 2013 over Q2 September 2012. EBITDA margin increased to 32% in Q2 September 2013 from 30.6% in Q2 September 2012.
Reliance Communications (RCom) rose 3.58%. The company today, 1 November 2013, said it has announced revolutionary Apple iPhone offers that promise to change the way people buy the iconic Smartphone in India. The company has announced two game-changing offers -- just Rs 2,599 per month for the iPhone 5c and Rs 2,999 per month for the iPhone 5s, both for a duration of 24 months which include the handset cost, unlimited local and STD calls, SMS, national roaming and 3G data. And in another first in India, ever, RCom is offering these much-awaited iPhone models at no down payment. Furthermore, under this unique offer, Apple iPhone 5c and iPhone 5s customers will not receive any usage bill for 24 months, as the monthly payments include all usage charges. Only international calls and international roaming charges will have to be paid for.
Commenting on this innovative offer, Mr Gurdeep Singh, President & CEO (Wireless), Reliance Communications, said: "We are delighted to be amongst the first to launch the Apple iPhone 5c and iPhone 5s in India and are focused on growing this user segment with our novel iPhone offers, which break all ownership rules and put the customer first. The Apple iPhone has been a dream for users in India and overseas, and it is our endeavor to grow this market and make every Indian's dream come true with RCOM's compelling and affordable iPhone ownership plan-No down-payments. No bills for 24 months."
The latest iPhone offer from RCom is part of the company's efforts to bring more Smartphone customers to its built-for-video 3G network, which will increase the acquisition of high value post-paid customers to its customer base and further cement its position as India's leading data services provider, RCom said in a statement.
Realty stocks were in demand. DLF (up 3.72%), HDIL (up 10.09%), D B Realty (up 2.12%) and Unitech (up 3.44%), gained.
Motherson Sumi Systems edged lower in choppy trade after the company reported a muted growth in bottom line in Q2 September 2013. The stock was off 2.02% at Rs 264.75. The stock reversed direction after hitting record high of Rs 277.50 at the onset of the trading session. The company's consolidated net profit rose 1.49% to Rs 139.63 crore on 22.96% growth in total income to Rs 7247.84 crore in Q2 September 2013 over Q2 September 2012. The result hit the market in afternoon trade. Meanwhile, the company's board announced bonus issue in the ratio of 1:2.
Capital goods pivotals edged higher. Bhel gained 1.77%.
L&T rose 0.95%. L&T after market hours on Thursday, 31 October 2013, said it is looking to sell upto 1.71 crore shares or 1% stake in subsidiary L&T Finance Holdings in the next three months to enable the L&T Finance Holdings comply with the minimum public shareholding norms. Shares of L&T Finance Holdings gained 0.36%.
Shares of public sector oil marketing companies (PSU OMCs) rose as diesel price was raised by 50 paise per litre. The price changes announced by oil companies, effective from today, 1 November 2013, are excluding local sales tax or VAT. PSU OMCs simultaneously cut petrol price by Rs 1.15 a litre. HPCL (up 2.26%), and Indian Oil Corporation (up 2.03%), edged higher. BPCL fell 1.1%.
Metal stocks gained as a Chinese manufacturing gauge rose to an 18-month high in October. China is the world's largest consumer of copper and aluminum. Bhushan Steel (up 1.61%), JSW Steel (up 0.49%), Tata Steel (up 0.51%), Sail (up 0.16%), Hindalco Industries (up 0.13%), Hindustan Zinc (up 2.73%) and Jindal Steel & Power (up 3.46%), rose.
Sesa Sterlite rose 2.3%. The company's consolidated net profit jumped 358.65% to Rs 2394.37 crore on 8410.59% jump in total income to Rs 26266.22 crore in Q2 September 2013 over Q2 September 2012. The company announced result after market hours on Thursday, 31 October 2013. Consequent to the restructuring exercise, the results for the quarter ended 30 September 2013 are not comparable with the corresponding period of the previous year.
Sesa Sterlite's Chairman, Anil Agarwal, said: "The merger of Sterlite Industries and Sesa Goa has created one of the world's largest global diversified natural resources companies. Sesa Sterlite is the Indian flagship of our group and with its world class assets, efficient operations and our strong track record, we are well placed to deliver superior returns for shareholders. Despite volatile commodity prices and temporarily suspended iron ore operations at Goa and Karnataka, the company has delivered a strong operational and financial performance during the quarter, with production growth at our Oil & Gas, Zinc and Aluminium businesses. We expect to recommence mining in Karnataka soon and are hopeful that the Goa mining suspension will be resolved by the Supreme Court soon, which will be helpful for the government exchequer and the local economy."
IDFC jumped 6.57% after Q2 result. The company's consolidated net profit rose 2.33% to Rs 486.75 crore on 5.38% growth in total income from operations to Rs 2148.46 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after trading hours on Thursday, 31 October 2013. IDFC's gross loan book increased by 3% to Rs 55957 crore as on 30 September 2013, from Rs 54137 crore as on 30 September 2012.
Most auto stocks gained after PSU OMCs cut petrol price by Rs 1.15 a litre. The price changes announced by oil companies are excluding local sales tax or VAT and will be effective from Friday, 1 November 2013.
Tata Motors gained 1.12%. The Reserve Bank of India on Thursday, 31 October 2013, notified that Tata Motors has passed resolutions at their board of directors' level and a special resolution by the shareholders, to enhance the limit for purchase of its equity shares with Differential Voting Rights or 'A' Type Ordinary Shares by Foreign Institutional Investors (FIIs). Accordingly, FIIs may now purchase up to 75% of the company's equity shares with Differential Voting Rights or 'A' Type Ordinary Shares paid up capital through the primary market and stock exchanges under the Portfolio Investment Scheme. The FII holding ceiling limit for ordinary shares will remain unchanged at 35% of the paid-up capital of the company. RBI said.
Mahindra & Mahindra (M&M) rose after reporting strong growth in tractor sales for the month just gone by. The stock jumped 4.12%. M&M's total tractor sales jumped 29% to 38,263 units in October 2013 over October 2012. Tractor sales in the domestic market jumped 30% to 37,532 units while exports rose 5% to 731 units in October 2013 over October 2012.
Speaking on the monthly performance, Rajesh Jejurikar, Chief Executive, Tractor and Farm Mechanization, Mahindra & Mahindra said: "The tractor industry continues to do well overall and has seen a healthy growth this fiscal. At Mahindra, we are happy to maintain a robust growth momentum with a 30% domestic growth during October 2013. This is on the back of a good monsoon, improved cash flows as well as greater mechanization".
M&M separately also reported monthly sales data of its automobiles division. The company's total auto sales fell 5% to 50,558 units in October 2013 over October 2012. Total domestic sales fell 7% to 47,787 units in October 2013 over October 2012.
Speaking on the monthly performance, Pravin Shah, Chief Executive, Automotive Division, Mahindra & Mahindra said: "During such tough and challenging times, we are heartened with our performance in October 2013 which has grown by 17% over the last month. In spite of new launches, the auto sector has witnessed a de-growth of nearly 5% during the first half of FY 2013-14 and the recent repo rate hike may prove to be a dampener for potential customers. The auto industry continues to look forward to an immediate support in terms of a stimulus package to perk it up as well as bring back the growth momentum for the economy in general & automotive sector in particular".
Maruti Suzuki India rose 0.13% after reporting higher October sales. The company's total sales rose 1.9% to 1.05 lakh vehicles in October 2013 over October 2012. Domestic sales rose 0.1% to 96,062 vehicles in October 2013 over October 2012. Exports jumped 27% to 9,025 units in October 2013 over October 2012. The sales data was announced during market hours.
Hero MotoCorp rose 1.17% to Rs 2,101.35 after hitting 52-week high of Rs 2,149.65 in intraday trade.
Bajaj Auto fell 0.22%.
HCL Technologies rose 0.59% after the central bank on Thursday, 31 October 2013, allowed a hike in foreign institutional investors investment limit in the company's paid up capital. The Reserve Bank of India (RBI) made the announcement after market hours on Thursday, 31 October 2013.
RBI allowed enhancing the limit for purchase of HCL Technologies equity shares and convertible debentures by foreign institutional investors (FIIs) under the Portfolio Investment Scheme, up to 49%. Earlier the limit was 30% of the paid up capital of HCL Technologies.
FIIs, at the end of September 2013, controlled 26.01% stake in the company, while promoters holding stood at 61.84%.
Glenmark Pharmaceuticals lost 3.88% on weak Q2 result. The company's consolidated net profit declined 1.56% to Rs 154.29 crore on 16.56% growth in revenue to Rs 1463.06 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Thursday, 31 October 2013.
Glenmark Pharmaceuticals' revenue from generics business rose 22.51% to Rs 710.65 crore in Q2 September 2013 over Q2 September 2012. Revenue from the specialty formulation business excluding out-licensing revenue grew 9.69% to Rs 740.54 crore in Q2 September 2013 over Q2 September 2012.
Glenn Saldanha, Chairman & MD, Glenmark Pharmaceuticals said, "Despite challenges in the operating environment, we have managed to register decent sales growth of 17% on the back of good performances by our US and India businesses. We have been also making steady progress on the Innovation R&D front with our 4 NCE & NBE molecules in clinical trials. Although the operating environment continues to remain challenging in emerging markets, we are reasonably confident of continuing on the same growth trajectory".
Marico dropped 1.62% to Rs 209. Trading in shares of Marico began today, 1 November 2013, as a pure FMCG company. It may be recalled that Marico had announced demerger of its skin care business under the Kaya brand into a separate company called Marico Kaya Enterprises (MaKE). The board of directors of Marico and MaKE have fixed 5 November 2013 as the record date for determining the shareholders to whom 1 fully paid share of MaKE with a face value of Rs 10 each shall be issued for every 50 fully paid shares held in Marico.
Piramal Enterprises (PEL) rose 0.66% to Rs 566.60. PEL today, 1 November 2013, announced that it has acquired the over-the-counter (OTC) brand CALADRYL in India from Valeant Pharmaceuticals International, Inc. CALADRYL is an anti-pruritic solution known for dermatosis application for minor skin irritations and itching. This acquisition enables Piramal Enterprises to widen its consumer products portfolio in the skin care segment, PEL said in a statement.
Nilkamal surged 8.81% on good Q2 result. The company's net profit jumped 29.5% to Rs 12.55 crore on 10.5% growth in net sales to Rs 420.52 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Thursday, 31 October 2013.
Nilkamal's EBITDA (earnings before interest, taxation, depreciation and amortization) rose 23.96% to Rs 42.63 crore in Q2 September 2013 over Q2 September 2012.
Nilkamal spent Rs 9.78 crore towards capital expenditure in Q2 September 2013 for the company's plastic division and Rs 3.28 crore towards the new distribution center coming up at Uran for its retail division.
Nilkamal's Indo-German joint venture (JV) viz Nilkamal Bito Storage Systems attained turnover of Rs 22.69 crore in Q2 September 2013, up from Rs 16.79 crore in Q2 September 2012. The company's Indo-US JV viz. Cambro Nilkamal attained turnover of Rs 4.64 crore, up from Rs 4.57 crore a year ago.
Nilkamal's subsidiary company viz. Nilkamal Crates and Bins FZE at Ajman, UAE has performed satisfactorily while the other subsidiary Eswaran Plastics at Srilanka has exhibited insignificant loss, Nilkamal said in a statement.
Aptech rose 1.9% on strong Q2 result. The company's consolidated net profit jumped 83.90% to Rs 8.68 crore on 16.76% increase in net sales to Rs 49.60 crore in Q2 September 2013 over Q1 June 2013. The company announced the result after market hours on Thursday, 31 October 2013. On a consolidated basis, net profit jumped 45.6% to Rs 8.68 crore on 9.7% increase in net sales to Rs 49.60 crore in Q2 September 2013 over Q2 September 2012.
Aptech said as per the buyback plan approved by shareholders, the company bought back and extinguished 38.01 lakh equity shares of value Rs 23.53 crore as on 30 September 2013.
The company's buyback offer opened on 24 July 2013. The company has set aside Rs 64.65 crore as the maximum amount for the buyback. The maximum buyback price is set at Rs 82 per share. The company proposes to buyback a minimum of 19.71 lakh equity shares and a maximum of 78.84 lakh equity shares.
Apcotex Industries lost 5.8% on weak Q2 result. The company's net profit declined 30.05% to Rs 2.49 crore on 0.19% growth in total income from operations to Rs 70.50 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Thursday, 31 October 2013.
Magma Fincorp dropped 0.73%. The company's consolidated net profit rose 15.28% to Rs 30.69 crore on 27.46% growth in total income from operations to Rs 486.78 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Thursday, 31 October 2013.
On standalone basis, Magma Fincorp's net profit rose 14% to Rs 32.20 crore on 28% growth in gross revenue to Rs 511 crore in Q2 September 2013 over Q2 September 2012.
The top line growth in Q2 September 2013 was backed by a robust increase in spreads. Net interest spread (NIS) stood at 5.71% in Q2 September 2013 up from 4.69% in Q2 September 2012.
The company's loan book increased by 23% YoY to Rs 16698 crore as on 30 September 2013 and capital adequacy stood at 16.1% as on 30 September 2013.
Commenting on the company's Q2 performance, Mr. Sanjay Chamria, VC and MD, Magma Fincorp said, "In the backdrop of a tough economic environment and inconsistent cash flows in our customer's hands we remain focused on improving our profitability and portfolio quality. Being consistent with this focus, we have improved our net spreads by 102 basis points YoY and continue to work on our portfolio quality. On the asset quality front, in line with our conservative approach to loss accounting, we have made a significant amount of provisioning for NPAs in the last two quarters. With the monsoons doing well and expectations of an uptick in commercial activity post monsoons, we expect the economic environment to improve and cash flows in the customers hand to stabilize. The second half of the year normally sees an improvement in collections and we expect an improvement in collection efficiency across all products in the coming quarters".
Magma Fincorp said the performance in Q2 September 2013 is commendable in the backdrop of a challenging economic environment wherein primary sales numbers of major products like cars, commercial vehicles and construction equipment have dropped drastically. The impact of fuel price hikes and inflation coupled with subdued commercial activity have resulted in lower utilization of earning assets and temporary cash flow constraints across all customer segments, the company said. As a result, the company has made NPA provision of Rs 74 crore for first half of FY 2014. While assisting customers who want more time to pay instalments, the company recognizes NPA in its books as per original repayment schedule and does not restructure any contract in its books, Magma Fincorp said in a statement.
Century Enka spurted 9.2% after net profit galloped 386.9% to Rs 21.57 crore on 0.96% growth in total income from operations to Rs 391.26 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Thursday, 31 October 2013.
Kalpataru Power Transmission rose 1.29% after net profit rose 17% to Rs 31 crore on 35% growth in revenue to Rs 962.20 crore in Q2 September 2013 over Q2 September 2012. The result was announced after market hours on Thursday, 31 October 2013.
In the foreign exchange market, the rupee edged lower against the dollar, tracking global dollar gains. The partially convertible rupee was hovering at 61.845, compared with its close of 61.50/51 on Thursday, 31 October 2013.
Indian factories cut production in October with overall manufacturing activity contracting for the third straight month as order books shrank at a quicker pace, a survey showed on Friday, 1 November 2013. The HSBC Manufacturing PMI compiled by Markit was unchanged at 49.6 in October, remaining below the watershed 50 mark that separates growth from contraction. The new orders sub-index fell to 48.9 last month from 49.6 in September, its fifth month below 50. The PMI survey showed input costs grew last month at their quickest pace since June 2012. Output costs also rose at the fastest rate since February. "Input price inflation accelerated further despite the weak growth backdrop, as the effects of the depreciated exchange rate continue to pass through. This suggests that the RBI has to continue its staring contest with inflation," said Leif Eskesen, chief economist for India at survey sponsor HSBC.
The Eight Core Industries having a combined weight of 37.90% in the Index of Industrial Production (IIP) rose 8% in September 2013, posting highest growth in last 12-months, data released by the government after trading hours on Thursday, 31 October 2013, showed.
Fiscal deficit was Rs 4.12 lakh crore during April-September 2013, or 76% of the full-year target, government data showed on Thursday, 31 October 2013. In the annual budget presented in February, Finance Minister P. Chidambaram had committed to narrow the fiscal deficit to 4.8% of gross domestic product (GDP) this fiscal year from 4.9% a year ago.
European stocks edged lower on Friday, 1 November 2013, ahead of manufacturing data from both the UK and the US. Key benchmark indices in UK, France and Germany shed 0.18% to 0.4%.
Most Asian stocks declined on Friday, 1 November 2013, as speculation the Federal Reserve will reduce stimulus in coming months overshadowed improving China manufacturing data. Key benchmark indices in Japan, Taiwan, Indonesia, and Singapore shed 0.29% to 1.73%. Key benchmark indices in China, Hong Kong and South Korea rose 0.19% to 0.46%.
A Chinese manufacturing gauge rose more than estimated to an 18-month high in October as output strengthened, adding to evidence the nation's economic recovery is sustaining momentum. The Purchasing Managers' Index was at 51.4, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing.
Trading in US index futures indicated that the Dow could advance 25 points at the opening bell on Friday, 1 November 2013. US stocks fell on Thursday, 31 October 2013, as investors assessed corporate earnings and speculated on when the Federal Reserve will cut stimulus.
US data yesterday showed the biggest jump in a gauge of business activity in more than three decades and a drop in jobless claims. Fewer Americans filed applications for unemployment benefits last week as a backlog in California's reporting cleared. Jobless claims decreased by 10,000 to 340,000 in the week ended Oct. 26 from 350,000 the prior period, the Labor Department reported Thursday in Washington.
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