Key benchmark indices hovered in green in early afternoon trade. The S&P BSE Sensex was up 48.38 points or 0.26%, off close to 35 points from the day's high and up about 90 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Hindalco Industries extended intraday gain.
Auto stocks rose across the board. Index heavyweight and cigarette maker ITC edged higher. Hospitality shares were in demand.
A bout of initial volatility was witnessed as key benchmark indices alternately moved between the gains and losses near the flat line. Volatility continued in morning trade. The Sensex hovered in positive terrain in mid-morning trade. The market retained positive zone in early afternoon trade.
At 12:20 IST, the S&P BSE Sensex was up 48.38 points or 0.26% to 18,713.26. The index rose 84.84 points at the day's high of 18,749.72 in early afternoon trade. The index fell 43.21 points at the day's low of 18,621.67 in early trade.
The CNX Nifty was up 23.30 points or 0.42% to 5,542.40. The index hit a high of 5,550.70 in intraday trade. The index hit a low of 5,510.05 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,169 shares rose and 793 shares fell. A total of 117 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks rose and rest of them fell. Sterlite Industries (up 3.4%), Tata Steel (up 3.08%) and HDFC (up 2.73%), edged higher.
Hindalco Industries rose 3.75%, with the stock extending intraday gain.
Index heavyweight and cigarette maker ITC rose 0.45%.
Auto stocks rose across the board. Tata Motors recovered from Wednesday's post result slide. The stock rose 1.13% to Rs 282. The stock was volatile. The scrip hit high of Rs 292.90 and low of Rs 278.60 so far during the day. The stock had declined 2.96% on Wednesday, 7 August 2013, after the company reported weak Q1 result. The company's consolidated net profit fell 23.11% to Rs 1726 crore on 8% growth in revenue (net of excise) to Rs 46785 crore in Q1 June 2013 over Q1 June 2012. The company said that strong demand, growth in volumes, richer product mix and favourable foreign exchange movement at Jaguar Land Rover (JLR) helped offset weak operating environment in Tata Motors' standalone business. JLR contributes to majority of Tata Motors' revenue.
JLR's revenues grew 12.6% to GBP 4097 million in Q1 June 2013 over Q1 June 2012. JLR's operating profit jumped 28.1% to GBP 675 million in Q1 June 2013 over Q1 June 2012, reflecting wholesales volume increase, favourable exchange rate, richer product mix supported by the launch of all-new Range Rover and F-TYPE, Tata Motors said. JLR's profit before tax jumped 24.6% to GBP 415 million in Q1 June 2013 over Q1 June 2012, due to higher operating profit partially offset by higher depreciation and amortisation as well as higher finance expense, net of more favourable exchange revaluation. JLR's profit after tax (PAT) jumped 28.8% to GBP 304 million in Q1 June 2013 over Q1 June 2012. JLR financials are as per International Financial Reporting Standards (IFRS).
Maruti Suzuki India rose 2.69%. The Reserve Bank of India on Wednesday, 8 August 2013, lifted restrictions placed on foreign institutional investors buying shares in Maruti Suzuki India (MSIL) after their holdings fell below the prescribed limit. The ceiling on investment by foreign institutional investors (FIIs) in Maruti Suzuki is 24%. Total foreign holding in Maruti Suzuki was 22.10% as at 30 June 2013, of which 22.03% was held by FIIs.
M&M gained 2.18%.
Shares of two wheeler companies also gained. Hero MotoCorp (up 0.1%) and Bajaj Auto (up 1%), edged higher.
Bharat Forge surged 12.01% after net profit surged 80.8% to Rs 90.60 crore on 17.3% increase in total revenues to Rs 791.50 crore in Q1 June 2013 over Q4 March 2013. The company announced the results before trading hours today, 8 August 2013.
Earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 28.5% to Rs 196 crore in Q1 June 2013 over Q4 March 2013. EBITDA margin increased to 24.8% in Q1 June 2013 compared with 22.6% in Q4 March 2013.
The company's net profit fell 13.9% to Rs 90.60 crore on 15.5% decline in total revenues to Rs 791.50 crore in Q1 June 2013 over Q1 June 2012. EBITDA fell 28.5% to Rs 196 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin decreased to 24.8% in Q1 June 2013 compared with 25.1% in Q1 June 2012.
Hospitality shares were in demand. EIH, Indian Hotels, and Hotel Leela Ventures rose by 2.61% to 10.15%.
Shiv-Vani Oil & Gas Exploration Services was locked at 10% lower circuit at Rs 12.55 on BSE, with the stock extending Wednesday's steep losses. The company after trading hours on Wednesday, 7 August 2013, said that to the best of its knowledge, as on date, no winding up petition against the company has been filed before any court. The company issued the clarification after media reports said that foreign lenders have served winding up notice on the company for defaulting on dues to the extent of $84.5 million (around Rs 480 crore). Shiv-Vani said that the company has received notices from the Indian and English counsel to the trustee of the foreign currency convertible bond holders and it is currently seeking legal advice in this regard.
Shiv-Vani had on 1 July 2013 said that the company has initiated discussions with its lenders to restructure its debts through Corporate Debt Restructuring (CDR) Mechanism and accordingly have filed a Flash Report with CDR Cell, Mumbai on 28 June 2013. The restructuring of debts will result improvement in the liquidity of the company and strengthen the core operations which will lead to value addition of the stake holders in the long term, the company had said at that time.
State Trading Corporation of India (up 15.59%), Delta Corp (up 11.53%), Welspun India (up 10.96%), HBL Power System (up 10.23%) and Advanta India (up 10%), were the among biggest gainers from the BSE Small-Cap index.
The stock market remains closed tomorrow, 9 August 2013, on account of Ramzan Id.
Asian stocks were mostly lower on Thursday, 8 August 2013. Key benchmark indices in China, Japan and Taiwan fell by 0.11% to 1.59%. Key benchmark indices in Hong Kong and South Korea were up 0.28% to 0.3%. Stock markets in Singapore, Indonesia and Malaysia were closed for holidays.
China's exports and imports rebounded in July, exceeding estimates and adding to signs that the world's second-largest economy is stabilizing following a two-quarter slowdown. Shipments abroad rose 5.1% from a year earlier, the General Administration of Customs said in Beijing today. Imports jumped 10.9%, leaving a trade surplus of $17.8 billion.
The Bank of Japan today, 8 August 2013, refrained from adding to unprecedented monetary stimulus after a two-day monetary policy review. Governor Haruhiko Kuroda's board stuck with an April pledge to expand the monetary base by 60 trillion yen to 70 trillion yen ($723 billion) per year, a statement released in Tokyo today showed.
Australian employers unexpectedly cut payrolls in July and unemployment held at an almost four-year high, denting Prime Minister Kevin Rudd's bid for a come-from-behind election win. The number of people employed fell 10,200, the statistics bureau said in Sydney today.
Trading in US index futures indicated that the Dow could gain 36 points at the opening bell on Thursday, 8 August 2013. US stocks lost ground for a third consecutive session on Wednesday on growing uncertainty over when the Federal Reserve will start to wind down its stimulus, which has been a driving force behind the rally in equities this year. Federal Reserve Bank of Cleveland President Sandra Pianalto said on Wednesday that the central bank would be prepared to scale back asset purchases if the labor market remains on the stronger path followed since last fall. Charles Evans, the president of the Federal Reserve Bank of Chicago, said on Tuesday that the Fed would probably scale back its bond-buying program later this year, perhaps beginning as early as next month, depending on economic data. That echoed comments made earlier on Tuesday by Dennis Lockhart, the president of the Federal Reserve Bank of Atlanta.
The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
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