Key benchmark indices retained positive zone in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 51.57 points or 0.25%, off close to 60 points from the day's high and up close to 30 points from the day's low. Gains in Asian and European stocks underpinned sentiment on the domestic bourses.
Auto stocks were mixed. Tata Motors rose after strong Q3 results. Dr. Reddy's Laboratories fell on profit booking after reporting strong Q3 results.
The market breadth, indicating the overall health of the market, was negative.
The market trimmed gains after a firm start. The Sensex hovered in green in mid-morning trade. Key benchmark indices traded off the day's high in early afternoon trade. Key benchmark indices further pared gains in a range bound market in afternoon trade. The Sensex retained positive zone in mid-afternoon trade.
At 14:20 IST, the S&P BSE Sensex was up 51.57 points or 0.25% to 20,385.67. The index jumped 109 points at the day's high of 20,443.35 in early trade, its highest level since 7 February 2014. The index rose 19.14 points at the day's low of 20,353.41 in early trade.
The CNX Nifty was up 16.35 points or 0.27% to 6,069.80. The index hit a high of 6,081.85 in intraday trade. The index hit a low of 6,053.25 in intraday trade.
The BSE Mid-Cap index was up 10.91 points or 0.17% at 6,350.85. The BSE Small-Cap index was up 11.54 points or 0.18% at 6,351.52. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,292 shares dropped and 1,204 shares rose. A total of 117 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose and rest fell. ONGC (up 1.31%), HDFC (up 1.19%), and ICICI Bank (up 1.06%), edged higher from the Sensex pack.
Dr. Reddy's Laboratories fell 0.24% to Rs 2,670.40 on profit booking after strong Q3 results. The stock hit high Rs 2,700 so far during the day, which is a record high for the counter. The stock hit a low of Rs 2,626.20 so far during the day. The company's consolidated net profit surged 70.21% to Rs 618.42 crore on 22.95% growth in total income to Rs 3551.49 crore in Q3 December 2013 over Q3 December 2012. The result was announced during market hours.
Auto stocks were mixed. Maruti Suzuki India (down 0.84%) and Hero MotoCorp (down 1.87%) declined. TVS Motor Company (up 0.12%), M&M (up 0.11%) and Bajaj Auto (up 0.11%) gained.
Tata Motors rose 2.77% on strong Q3 results. The company's consolidated net profit surged 195.23% to Rs 4804.80 crore on 38.37% increase in total income to Rs 64,034.30 crore in Q3 December 2013 over Q3 December 2012. The result was announced after trading hours on Monday, 10 February 2014.
The result was strong on the back of strong demand, growth in volumes and favourable product mix and geographic mix at Jaguar Land Rover (JLR).
Jaguar Land Rover wholesale and retail volumes for the quarter ended 31 December 2013 grew by 22.7% and 26.5%, respectively, over the corresponding period last year and stood at 116,357 units and 112,172 units, respectively. Growth in volumes is driven by launch of new Range Rover Sport, new Range Rover and Jaguar F-TYPE, alongside higher volumes of the newer XF and XJ derivatives.
As per International Financial Reporting Standards Foundation (IFRS) JLR's revenues for the quarter ended 31 December 2013 of GBP 5,328 million represented a growth of 40.1% over GBP 3,804 million during the corresponding quarter last year. Operating profit (EBITDA) stood at GBP 955 million in the quarter, up 79.2% as compared to GBP 533 million during the corresponding quarter last year. Operating margin for the quarter ended 31 December 2013, stood at 17.9%, up 390 bps as compared to corresponding quarter last year reflecting richer product mix, supported by launch of new Range Rover Sport, new Range Rover and Jaguar F-TYPE, and richer geographic mix, with increased volumes in various geographies. The profit before tax for the quarter ended 31 December 2013 grew to GBP 842 million (GBP 404 million in the corresponding quarter last year) reflecting higher operating profit (EBITDA), more favourable exchange revaluation, partially offset by higher depreciation and amortisation as well as lower finance income. Profit after tax for the quarter grew to GBP 619 million (GBP 296 million in the corresponding quarter last year).
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment. The partially convertible rupee was hovering at 62.32, compared with its close of 62.43/44 on Monday, 10 February 2014.
India's trade deficit narrowed to $9.92 billion in January 2014, from $10.14 billion in December 2013, data released by the government today, 11 February 2014, showed. On year-on-year basis, merchandise exports rose 3.79% to $26.75 billion in January 2014. Imports fell 18.07% year-on-year to $36.67 billion led by a 77% drop in gold and silver imports on the year.
Finance Minister P Chidambaram will present the Vote-on-Account or interim budget on 17 February 2014. The objective of a Vote-on-Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections. The next full-fledged budget will be presented by the new government which comes to power after the Lok Sabha polls in April-May 2014.
Consumer price inflation is seen easing a bit in January 2014. Inflation based on the combined consumer price index (CPI) for urban and rural India is seen easing to 9.4% in January 2014 from 9.87% in December 2013, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil data on inflation based on the combined consumer price index (CPI) for urban and rural India for January 2014 at 17:30 IST tomorrow, 12 February 2014.
Inflation based on the wholesale price index (WPI) is also expected to ease in January 2014. WPI inflation is seen easing to 5.9% in January 2014 from 6.16% in December 2013, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil data on inflation based on the wholesale price index (WPI) for January 2014 at 12 noon on Friday, 14 February 2014.
Industrial production is expected to remain in contraction mode in December 2013. Industrial output is expected to decline 1% in December 2013, as per the median estimate of a poll of economists carried out by Capital Market. India's industrial production declined 2.1% in November 2013, recording decline for second consecutive month after 1.6% dip in October 2013.
The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Sighting elevated consumer price inflation, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
European stocks rose on Tuesday, 11 February 2014, as investors awaited for US Federal Reserve Chairman Janet Yellen to deliver her first report on monetary policy. Key benchmark indices in France, Germany and UK rose 0.46% to 0.68%.
Asian stocks rose on Tuesday, 11 February 2014, before Federal Reserve Chairman Janet Yellen delivers her first testimony on monetary policy later in the global day. Key benchmark indices in China, South Korea, Singapore, Indonesia, Hong Kong and Taiwan rose 0.42% to 1.78%. Japanese stock markets were closed for a holiday today.
Trading in US index futures indicated that the Dow could advance 62 points at the opening bell on Tuesday, 11 February 2014. US stocks rose on Monday amid optimism that economic growth is robust enough to weather central bank stimulus cuts.
Federal Reserve Chairman Janet Yellen delivers her first testimony on monetary policy later in the global day today, 11 February 2014. Yellen will speak on monetary policy and the outlook for the US economy for the first time since being sworn in as the central bank's head.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion. The Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.
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