Key benchmark indices edged higher in early trade on mostly higher Asian stocks. The S&P BSE Sensex was up 55.29 points or 0.29%, up 75.68 points from the day's low and off 31.83 points from the day's high. Index heavyweight Reliance Industries (RIL) declined on profit booking after reporting strong Q4 results after market hours on Tuesday, 16 April 2013. Another index heavyweight and cigarette major ITC rose in early trade to come at a striking distance of its record high. HCL Technologies hit a record high after the company before trading hours today, 17 April 2013, reported strong Q3 results. Software major Tata Consultancy Services (TCS) dropped ahead of its Q4 results today, 17 April 2013. The market breadth, indicating the overall health of the market, was strong.
Foreign institutional investors (FIIs) bought shares worth a net Rs 591.76 crore on Tuesday, 16 April 2013, as per provisional data from the stock exchanges.
At 9:26 IST, the S&P BSE Sensex was up 55.29 points or 0.29% to 18,800.22. The index rose 87.12 points at the day's high of 18,832.05 in early trade. The index rose 11.44 points at the day's low of 18,756.37 in early trade.
The CNX Nifty was up 20.15 points or 0.35% to 5,709.10. The index hit a high of 5,723.65 in intraday trade. The index hit a low of 5,705.45 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 638 shares advanced and 202 shares declined. A total of 22 shares were unchanged.
The total turnover on BSE amounted to Rs 163 crore by 09:30 IST.
Among the 30-share Sensex pack, 22 stocks advanced while rest of them declined.
Index heavyweight Reliance Industries (RIL) fell 1.31% at Rs 794 on profit booking. Ahead of Q4 results, the RIL stock had gained 4.32% in three trading days to Rs 804.50 on 16 April 2013 from a recent low of Rs 771.15 on 11 April 2013. 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. Net profit rose 4.8% to Rs 21003 crore on 9.2% growth in turnover to Rs 371119 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result hit the market after trading hours on Tuesday, 16 April 2013.
On sequential basis, RIL's net profit rose 1.58% to Rs 5589 crore on 10.06% decline in turnover to Rs 86618 crore in Q4 March 2013 over Q3 December 2012. RIL's gross refining margin (GRM) edged up to $10.1 a barrel in Q4 March 2013 from $9.6 a barrel in Q3 December 2012 and $7.6 a barrel in Q4 March 2012. The GRM edged up to $9.2 a barrel in FY 2013 from $8.6 a barrel in FY 2012.
RIL said its retail business achieved cash breakeven with earnings before depreciation, finance cost and tax expense of Rs 78 crore in FY 2013. Turnover of the retail business jumped 42% to Rs 10800 crore in FY 2013 over FY 2012.
RIL is debt free on a net basis as at 31 March 2013.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries said: "Reliance has delivered another year of strong operating performance in an environment of continued volatile economic conditions. The growth in earnings was largely driven by strong and improved refining margins during the year. Production growth from our investments in unconventional liquids-rich resource plays in North America has reinforced our confidence in creating long term value for our shareholders from this diversification. We are delighted to see our retail business achieving a milestone of annual revenue crossing Rs 10000 crore and will further strengthen our position in this sector. We are working on projects that form the foundation of our aspirations to become one of the world's most competitive producers of petroleum and petrochemical products while developing consumer centric businesses in India".
Index heavyweight and cigarette major ITC rose 0.63% to Rs 310 after striking an intraday high of Rs 310.35 today, 17 April 2013. The stock had hit record high of Rs 310.75 in intraday trade on 4 February 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.
HCL Technologies surged 4.17% to Rs 795 after striking a record high of Rs 809 in intraday trade today, 17 April 2013. The company before trading hours today, 17 April 2013, said its consolidated net profit as per US accounting standards rose 7.8% to Rs 1040 crore on 2.4% growth in revenue at Rs 6425 crore in Q3 March 2013 over Q2 December 2012. Earnings before interest, taxation, deprecation and amortization (EBITDA) rose 1.6% to Rs 1439.30 crore in Q3 March 2013 over Q2 December 2012. The EBITDA margin declined to 22.4% in Q3 March 2013 from 22.6% in Q2 December 2012.
Commenting on the Q3 results, Anant Gupta, President and CEO, HCL Technologies said: "We have delivered yet another quarter of strong performance. Our net margins have improved for six straight quarters and are up by 51.5% along with a robust 14.6% US dollar constant currency growth for the twelve month period ended 31 March 2013. Amidst a challenging and uncertain business environment, HCL continues on its growth trajectory fuelled by its Alternative Outsourcing (AO) approach led by two unique value propositions of Alternative ASM and Enterprise Function as a Service (EFaaS)".
Anil Chanana, Chief Financial Officer, HCL Technologies said: "During the 12 months period ended 31 March 2013, our revenues have increased by 27% YoY (INR) while the earnings per share has grown 74% YoY (INR). This increase in EPS has been facilitated by expansion in both gross margin and operating margin by 340 bps and 420 bps YoY respectively. HCL's industry leading performance is also manifested in the strong free cash flow conversion at 60% of EBITDA and Return on Equity at 31%.
Software major Tata Consultancy Services (TCS) dropped 2.63% ahead of its Q4 results today, 17 April 2013.
Zee Entertainment Enterprises rose 1.85%. The company on Tuesday, 16 April 2013, said that in order to maximize returns on its treasury operations, the board of directors of the company has given an in-principle approval to invest in high-yield debt securities of real estate entities which are unrelated to the company or the Essel Group, with adequate security cover, up to a maximum of Rs 100 crore, of which Rs 29 crore has been committed as on date. Zee Entertainment Enterprises also clarified that the company has not sponsored any private equity (PE) fund and the company is not the Sponsor or Investor of India Asset Growth Fund -- an Alternative Investment Fund registered by Essel Group with the Securities and Exchange Board of India. The company issued this clarification after media reports said that the Essel Group has launched a Rs 1000 crore realty fund.
The near term focus of the market is on Q4 results. TCS announces Q4 results today, 17 April 2013. IndusInd Bank announces Q2 results tomorrow, 18 April 2013. Wipro announces Q4 results on 19 April 2013. Cairn India announces Q4 results on 22 April 2013. UltraTech Cement announces Q4 results on the same day.
HDFC Bank announces Q4 results on 23 April 2013. Axis Bank will announce its Q4 March 2013 results on 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. HDFC announces 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.
Reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms could result in supply of equity in the market over the next few months. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 30 June 2013, while the deadline for state-run firms is 31 August 2013. PSU divestment will also add to share sale glut in FY 2014. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014.
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 Monday, 15 April 2013, showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the latest data showed. The government revised upwards WPI inflation for January 2013 to 7.31% from 6.62% reported earlier. Build up inflation rate in the financial year so far was 5.96% compared to a build up rate of 7.69% in the corresponding period of the previous year, the Ministry of Commerce & Industry said in a statement.
The combined consumer price inflation for rural and urban India stood at 10.39% in March 2013, lower than 10.91% in February 2013, recent data showed. Inflation under the category 'food and beverages' stood at 12.42%, the data showed.
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. The key macroeconomic priorities are to raise the growth rate, restrain inflation pressures and mitigate the vulnerability of the external sector, RBI said at that time. Even as the policy stance emphasises addressing the growth risks, the headroom for further monetary easing remains quite limited, the RBI said. The RBI said it will continue to actively manage liquidity through various instruments, including open market operations (OMO), so as to ensure adequate flow of credit to productive sectors of the economy.
The index of industrial production rose 0.6% in February 2013, data released by the government on 12 April 2013 showed. Manufacturing sector recorded a growth of 2.2%. The mining sector registered a decline of 8.1% and electricity sector declined 3.2%. As per use-based classification, production of basic goods declined 1.8% and that of intermediate goods fell 0.7%. Capital goods production rose 9.5%. Production of consumer non-durables rose 2.9% whereas that of consumer durables shrunk 2.7%.
Industrial production rose 0.9% during the period April 2012 to February 2013.
The India Meteorological Department will issue its initial forecast of 2013 southwest monsoon in this month.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
On the political front, the Congress led UPA government has been reduced to a minority government, with DMK removing support to the government in March this year citing differences on the issue of atrocities on Tamils in Sri Lanka. Earlier, the Trinamool Congress withdrew support to the government in September last year as it opposed economic reforms. The Samajwadi Party (SP) along with its regional rival in Uttar Pradesh Bahujan Samaj Party (BSP) provide outside support to the UPA government. SP has 22 MPs in Lok Sabha and BSP has 21 MPs.
The second half of the Budget session of the Parliament begins on 22 April 2013. The government has lined up a number of key bills for consideration and passing during the Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008. The Budget Session of the Parliament ends on 10 May 2013.
Assembly elections will be held in Karnataka on 5 May 2013 and the counting of votes and results of the election will be declared on 8 May 2013.
Asian stocks were mostly higher on Wednesday as US stocks rose on Tuesday on strong increase in US housing starts and better-than-expected corporate earnings. Key benchmark indices in Singapore, Japan, Taiwan and Indonesia were up by 0.21% to 0.99%. Key benchmark indices in Hong Kong, China and South Korea were down by 0.08% to 0.64%.
US stocks edged higher on Wednesday as gold prices rebounded and earnings from Coca-Cola and Johnson & Johnson improved the outlook for first-quarter results.
Powered by Capital Market - Live News
