Key benchmark indices surged in early trade as firm Asian stocks boosted sentiment. The barometer index, the S&P BSE Sensex, was up 157.29 points or 0.81%, up close to 50 points from the day's low and off about 75 points from the day's high. Index heavyweight and cigarette major ITC hit record high. Index heavyweight Reliance Industries (RIL) edged lower in early trade. The market breadth, indicating the overall health of the market, was strong.
FMCG major Hindustan Unilever (HUL) surged nearly 19% after the company's foreign parent Unilever PLC offered to acquire 48.70 crore shares, or 22.52% stake in Hindustan Unilever at Rs 600 each. Sterlite Industries rose on strong Q4 results. Shree Cement rose on strong Q3 results. Bosch declined on weak Q1 results.
The market sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 29 April 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 620.38 crore on Monday, 29 April 2013, as per provisional data from the stock exchanges.
At 9:30 IST, the S&P BSE Sensex was up 157.29 points or 0.81% to 19,544.79. The index surged 235.18 points at the day's high of 19,622.68 in early trade. The index gained 105.33 points at the day's low of 19,492.83 in opening trade.
The CNX Nifty was up 34 points or 0.58% to 5,938.10. The index hit a high of 5,962.30 in intraday trade. The index hit a low of 5,932.60 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 680 shares advanced and 254 shares declined. A total of 54 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks rose while rest of them fell.
Index heavyweight Reliance Industries (RIL) declined 0.03% to Rs 792.35. At the time of announcement of its Q4 results, RIL in mid-April 2013 said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the next 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
Index heavyweight and cigarette major ITC rose 2.57% to Rs 332.70. The stock hit record high of Rs 335.90 in intraday today, 30 April 2013. West Bengal chief minister Mamata Banerjee on 24 April 2013, announced a 10% hike in the value-added tax (VAT) on cigarettes to 25% from 15% to raise money for a relief fund for those depositors who have lost money in the Saradha chit fund scam.
Earlier, the Centre 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.
FMCG major Hindustan Unilever (HUL) surged 18.87% to Rs 591.50 as voluntary open offer by Unilever PLC was priced at a premium to the current ruling price. HSBC Securities and Capital Markets (India) (Manager to the open offer) said before market hours today, 30 April 2103 that, Unilever PLC along with Unilever N.V. in its capacity as person acting in concert is making a voluntary open offer to acquire 48.70 crore shares representing 22.52% of the total voting share capital from the public shareholders of Hindustan Unilever. The consideration of open offer will be payable in cash of Rs 600 per share. Unilever PLC and Unilever N.V. are the two parent companies of the Unilever Group of companies.
HUL stock had vaulted 6.98% on Monday on good Q4 results. HUL's net profit before exceptional items rose 18% to Rs 781 crore on 12.13% growth in total income from operations to Rs 6465.81 crore in Q4 March 2013 over Q4 March 2012. The company announced the Q4 results during market hours on Monday, 29 April 2013. While commodity costs were relatively benign during the quarter, competitive intensity remained at high levels, HUL said. The company said it continued to invest behind its brands. The company's expenditure on Advertising and Promotions (A&P) rose by Rs 144 crore in Q4 March 2013. Despite this step up, profit before interest and tax (PBIT) grew 17% and PBIT margin improved by 60 bps, the company said.
HUL said that during the quarter, the domestic consumer business grew at 13% with strong 6% underlying volume growth. Both Home and Personal Care (HPC) and Foods and Beverages (F&B) registered double digit growth in Q4 March 2013, the company said in a statement.
Sterlite Industries rose 2.56% on strong Q4 results. The company's consolidated net profit rose 50.72% to Rs 1924.63 crore on 15.6% rise in total income to Rs 13394.23 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results before market hours today, 30 April 2013.
The company's attributable profit after tax (PAT) after exceptional item rose 26% to Rs 6,060 crore on 10% increase in net sales to Rs 44922 crore in the year ended March 2013 over the year ended March 2012. Revenues for Q4 March 2013 (Q4) and the year ended March 2013 (FY2013) were Rs 12609 crore and Rs 44922 crore, an increase of 17% and 10% respectively. The increase in revenue was driven by higher volumes and depreciation of the Indian Rupee, which more than offset lower metal prices. During Q4 and full year, the company delivered higher refined silver, lead, Copper, Aluminium and Power and higher mined metal production at Zinc India, Sterlite Industries (India) said in a statement.
The company added that Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) in FY2013 was up 2% at Rs 10574 crore and in Q4 was up 23% higher at Rs 3323 crore, on account of higher production, higher metal premiums and lower costs which more than offset lower metal prices during the year. Interest cost in Q4 and FY2013 was higher as compared to the corresponding prior periods due to capitalisation of new plants.
Depreciation in Q4 was lower due to one-off depreciation reversal at Zinc India. Depreciation cost for FY2013 was higher on account of capitalization of new plants at Zinc India and Sterlite Energy (SEL).
During the year there was gain on account of foreign exchange movement as compared to the previous year, largely on account of foreign exchange hedge contract towards investments made in overseas subsidiaries, as designated contracts, resulting into transfer of foreign exchange movement to reserves, in accordance with AS 30.
During Q4 and FY2013, attributable PAT and basic earning per share (EPS) were significantly higher by 51% and 26% respectively, over the corresponding prior periods on account of higher EBITDA, higher investment income, lower foreign exchange losses and lower tax rate.
The board has declared a second interim dividend of Rs 1.20 per share. The total interim dividend for FY2013 is Rs 2.30 per share and no final dividend is proposed to be declared. The total dividend outgo will be Rs 773 crore as against Rs. 686 crore during the previous year, Sterlite Industries (India) said in a statement.
Commenting on the company's financial performance, Chairman Mr. Anil Agarwal said, "We achieved a strong operating and financial performance in FY2013. With production growth across our portfolio of world class assets, we recorded a net profit of Rs 6060 crore in FY2013 and the board has declared total interim dividend of Rs 2.30 per share for FY2013."
JSW Steel rose 0.51%. The company after market hours on Monday, 29 April 2013 clarified to a media report published on 26 April 2013 that there has been no increase in the stake held by JFE Steel Corporation's affiliate, JFE Steel International Europe B. V. (JFE) in JSW Steel. In the company's filing with the stock exchanges under clause 35 of the listing agreement, the holding of 15% and 1.17% of JFE which was being reported under two folios till the quarter ended 31 December 2012 has been consolidated and reported as 16.17% in the shareholding pattern for the quarter ended 31 March 2013 filed with the stock exchanges on 2 April 2013, JSW Steel said.
Bosch declined 1.72% on weak Q1 results. The company after market hours on Monday, 29 April 2013, reported 22.65% fall in net profit to Rs 259.77 crore on 2.77% fall in total income to Rs 2296.75 crore in Q1 March 2013 over Q1 March 2012.
Shree Cement rose 2.02% on strong Q3 results. The company after market hours on Monday, 29 April 2013 reported 139.84% jump in net profit to Rs 274.09 crore on 4.19% rise in total income to Rs 1514.41 crore in Q3 March 2013 over Q3 March 2012.
The stock market remains closed tomorrow, 1 May 2013, on account of Maharashtra Day.
The focus of the market is on Q4 results. IDFC announces Q4 results tomorrow, 1 May 2013. Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on Thursday, 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on Friday, 3 May 2013. Grasim and Jaiprakash Associates unveil Q4 results on Saturday, 4 May 2013. HDFC and Lupin unveil Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints announces Q4 results on 9 May 2013. NTPC announces Q4 results on 10 May 2013. Dr Reddys Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. BPCL announces Q4 results on 29 May 2013. M&M announces Q4 results on 30 May 2013.
Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for April 2013 tomorrow, 1 May 2013. The HSBC India Manufacturing PMI fell to 52 in March 2013, after a surge to 54.2 in February 2013. Markit Economics will unveil the result of a monthly survey on the performance of India's services sector for April 2013 on Friday, 3 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to a 17-month low of 51.4 in March from 54.2 in February. Services make up over 60% of India's economy.
Slowing wholesale price inflation has raised expectations that the Reserve Bank of India (RBI) will cut its key policy rate viz. the repo rate to boost economic growth. The (RBI) will announce the Monetary Policy Statement 2013-14 on Friday, 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.
Inflation based on the monthly wholesale price index (WPI) eased to 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 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed.
Asian stocks rose on Tuesday after U.S. housing sales gained and amid speculation central banks will keep stimulating growth. Key benchmark indices in Hong Kong, Taiwan, Singapore and South Korea rose by 0.37% to 1.19%. Key benchmark indices in Japan and Indonesia fell by 0.09% to 0.15%. Stock markets in mainland China were closed for a holiday.
US stocks gained on Monday with S&P 500 index ending at an all-time high as growth-oriented stocks, including energy and technology, lead the way to the index's sixth rise in the past seven sessions. A report showed contracts to buy previously owned homes rose last month to their highest level since April 2010, showing underlying strength in the housing market recovery, even though the pace of sales growth has cooled in recent months.
A two-day meeting of the Federal Open Market Committee on US interest rates begins today, 30 April 2013.
In Europe, the European Central Bank's (ECB) Governing Council meets in Bratislava on Thursday, 2 May 2013, to review euro area interest rates. The ECB is seen cutting euro area interest rates by 25 basis points to a record low of 0.5% as economic conditions continue to deteriorate across the euro zone and as inflation remains well below the bank's target.
Powered by Capital Market - Live News
