Key benchmark indices held firm in afternoon trade. The barometer index, the S&P BSE Sensex, was up 171.81 points or 0.83%, up close to 260 points from the day's low and off about 15 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by IT major Infosys raising its revenue growth guidance for the year ending 31 March 2014 (FY 2014) at the time of announcement of its Q3 December 2013 results before trading hours today, 10 January 2014. Gains in Asian stocks also underpinned sentiment on the domestic bourses. In the foreign exchange market, the rupee edged higher against the dollar tracking broad losses in dollar versus other major currencies.
Realty stocks edged higher. Auto stocks dropped. Pharma stocks gained with Dr Reddy's Laboratories scaling record high. Infosys gained in volatile trade after the company raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014 at the time of announcement of its Q3 December 2013 results before trading hours today, 10 January 2014.
Volatility struck bourses in early trade as key benchmark indices reversed initial gains. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in more than thee weeks. Key benchmark regained positive zone later. Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade. Firmness continued on the bourses in early afternoon trade. It held firm in afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 3.74 crore on Thursday, 9 January 2014, as per provisional data from the stock exchanges.
At 13:20 IST, the S&P BSE Sensex was up 171.81 points or 0.83% to 20,885.18. The index jumped 188.84 points at the day's high of 20,902.21 in mid-morning trade, its highest level since 6 January 2014. The index fell 88.20 points at the day's low of 20,625.17 in early trade, its lowest level since 18 December 2013.
The CNX Nifty was up 47.50 points or 0.77% to 6,215.85. The index hit a high of 6,222.75 in intraday trade, its highest level since 6 January 2014. The index hit a low of 6,139.60 in intraday trade, its lowest level since 18 December 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,189 shares gained and 1,002 shares declined. A total of 130 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined. RIL (up 2.1%), ONGC (up 2.07%) and TCS (up 1.88%) gained.
Pharma stocks gained. Cipla (up 0.21%), Lupin (up 0.82%), Ranbaxy Laboratories (up 0.41%) and Sun Pharmaceutical Industries (up 1.01%) gained.
Dr Reddy's Laboratories advanced 1.12% at Rs 2,617. The stock hit record high of Rs 2,622.70 in intraday trade.
Cadila Healthcare lost 1.74% to Rs 875, with the stock sliding on profit booking after recent rally. Shares of Cadila Healthcare had rallied 14.19% in four trading sessions to settle at Rs 890.45 on Thursday, 9 January 2014, from a recent low of Rs 779.75 on 3 January 2014.
Cadila Healthcare at the far end of trading hours on Thursday, 9 January 2014 said it has received final approval from the US Food and Drug Administration (USFDA) to market Sirolimus Tablets 0.5 mg in the United States with 180 days of marketing exclusivity. The stock had jumped 5.29% to settle at Rs 890.45 on Thursday, 9 January 2014.
As per IMS data in 2013, the total market for Sirolimus was approximately $203.8 million in the United States.
Cadila Healthcare also said that the company has received approval from USFDA for Duloxetine delayed release capsules in different strengths of 20 mg, 30 mg and 60 mg. Duloxetine had US sales of about $5.5 billion in 2013.
While Sirolimus tables are immunossuppresssant drugs used to prevent rejection in organ transplantation, Duloxetine delayed release capsules fall in the anti-depressants segment.
The Cadila group now has 86 approvals and has so far filed 216 abbreviated new drug applications (ANDAs) since the commencement of the filing process in 2003-04, the company said.
Realty stocks edged higher. DLF (up 0.97%), HDIL (up 2.18%), Unitech (up 0.34%), and Sobha Developers (up 1.18%) gained.
Auto stocks dropped. Maruti Suzuki India (down 1.04%), Tata Motors (down 0.07%), M&M (down 1.37%), Ashok Leyland (down 1.12%), Bajaj Auto (down 1.03%), Hero MotoCorp (down 0.16%) and TVS Motor Company (down 0.77%) declined.
Tata Power Company fell 0.31%. The company said during market hours that late last night (near midnight of 9th January 2014), a loud thud was observed in Low Pressure Turbine accompanied by fire on the turbine and generator deck of the 250 megawatts (MW) Unit 8 at Trombay.
The plant was safely shutdown including safe purging of hydrogen from the generator and safe shutdown of boiler, as the Unit was running with about 185 MW capacity. No casualty has occurred nor is any human involved in the event associated with the key plant and equipment, company said.
The extent of damage and reasons for the event shall be ascertained in due course with engineers of Tata Power and OEM experts from BHEL. The power generation from the rest of the units of Trombay Thermal Power Station remains unaffected. The company will ensure that alternate power supply is maintained so that the Mumbai consumers continue to meet their electricity demand. The company would like to reiterate its commitment towards safety in and around the plant while ensuring reliable power, company added in a statement.
Infosys gained 2.88% to Rs 3,550.50. The stock hit a high of Rs 3,575.20 and low of Rs 3,449 so far during the day. Infosys' consolidated net profit jumped 19.4% to Rs 2875 crore on 0.5% increase in revenues to Rs 13026 crore in Q3 December 2013 over Q2 September 2013. The results are as per International Financial Reporting Standards (IFRS). The strong sequential growth in the company's bottom line was due to base effect - Infosys' bottom line in Q2 September 2013 was hit adversely due to a provision of Rs 219 crore during that quarter for one-off visa costs.
Infosys has raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014. The company expects consolidated revenue in rupee terms to grow 24.4% to 24.9% for the fiscal year ending 31 March 2014 (FY 2014). This guidance is based on rupee dollar conversion rate of 61.81 for the rest of the financial year. The company expects consolidated revenue in dollar terms to grow 11.5% to 12% in FY 2014.
Infosys and its subsidiaries added 54 clients during Q3 December 2013. The company and its subsidiaries reported a gross addition of 6,682 employees for the quarter.
"The year ahead looks exciting for the IT services industry. We believe the global economic environment has improved and our clients are gaining confidence to invest in their strategic initiatives. We continue to differentiate ourselves to seize growth opportunities. The recent changes in organizational structure will enable us to strengthen client relationships and increase market share," said S. D. Shibulal, CEO and Managing Director, Infosys.
"During the quarter, we saw early but promising results of our initiatives to increase efficiency in our operations. We continue to remain focused on making investments necessary to secure and grow our future," said Rajiv Bansal, Chief Financial Officer, Infosys.
In the foreign exchange market, the rupee edged higher against the dollar tracking broad losses in the dollar versus other major currencies. The partially convertible rupee was hovering at 61.9275, compared with its close of 62.07/08 on Thursday, 9 January 2014.
A $50 billion swap line between Indian and Japan is effective from Friday, 10 January 2014, the Reserve Bank of India said. The agreement, which will be valid till 3 December 2015, aims at addressing any short-term liquidity difficulties. The swap line was initially at $15 billion and following the exchange rate crisis in the summer both the countries entered into a pact to expand the line.
On the macro front, trade deficit widened in December 2013 on slowing export growth, data released by government today, 10 January 2014 showed. The trade deficit stood at $10.14 billion in December 2013, compared with $9.22 billion in November 2013. Merchandise exports rose 3.49% year-on-year to $26.35 billion, slowing down from a 5.86% pace in November. Imports fell 15.25% year-on-year to $36.49 billion as gold and silver imports dropped.
Industrial production is seen registering a muted growth of 0.9% in November 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production had declined 1.8% in October 2013, against 2% growth in September 2013. The decline in the output of manufacturing sector at 2% and mining sector at 3.5% mainly led to decline in industrial production in October 2013. The government will unveil industrial production data for November 2013 after trading hours today, 10 January 2014.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Asian stocks rose on Friday, 10 January 2014, as data showed China's trade surplus narrowed and investors awaited a report on U.S. payrolls. Key benchmark indices in Indonesia, Japan, Hong Kong, Singapore and Taiwan rose by 0.05% to 0.71%. Key benchmark indices in China and South Korea fell by 0.39% to 0.71%.
China's exports rose 4.3% in December from a year earlier, according to reported data, after surging 12.7% in November. Imports were 8.3% higher than the year-ago month, accelerating from 5.3% growth in November. The resulting trade surplus was $25.6 billion, narrowing from the previous month's $33.8 billion.
Trading in US index futures indicated that the Dow could advance 26 points at the opening bell on Friday, 10 January 2014. The S&P 500 index eked out a marginal gain on Thursday, 9 January 2014, while the Dow Jones Industrial Average and the Nasdaq Composite index dropped, weighed down by losses for Verizon Communications Inc. and AT&T Inc.
The number of Americans who applied to receive unemployment benefits in the first week of the new year fell to the lowest level since the end of November. In the week ended Jan. 4, initial jobless claims fell by 15,000 to a seasonally adjusted 330,000, the US Department of Labor said Thursday.
The US government will unveil the influential non-farm payroll report for December 2013 today, 10 January 2014.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014. The US central bank is poised to continue winding down its stimulus measures gradually this year.
Janet Yellen, incoming Federal Reserve chairwoman, said in an interview with Time magazine on Thursday, 9 January 2014, that the US economy would see stronger growth this year.
The Bank of England on Thursday, 9 January 2014, left the size of its bond-buying program unchanged and held its key lending rate at a record low of 0.5%, where it has stood since March 2009. The central bank's Monetary Policy Committee left its asset purchases, the centerpiece of its quantitative-easing strategy, at 375 billion pounds ($617 billion). The minutes from the January meeting will be published on 22 January 2014.
The European Central Bank on Thursday, 9 January 2014, kept its main interest rate unchanged at 0.25% after a monetary policy review.
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