After hovering in green till mid-afternoon trade, the key benchmark indices suddenly slipped into the red in late trade. The market breadth, indicating the overall health of the market, turned negative from positive in late trade. The barometer index, the S&P BSE Sensex, was provisionally down 30.03 points or 0.15%, off 175.20 points from the day's high and up 39.86 points from the day's low. The market sentiment was hit adversely by data showing that foreign funds resorted to heavy selling of Indian stocks for the second day in a row on Tuesday, 28 January 2014.
Index heavyweight and cigarette major ITC edged lower. Reliance Industries (RIL) extended fall in late trade. GAIL (India) was unchanged for the day after seeing intraday volatility after the company announced good Q3 result during trading hours today, 29 January 2014. PSU OMCs were in demand. Sesa Sterlite extended intraday fall in late trade. Hero MotoCorp advanced after the company showcased five new products.
Bharti Airtel reversed initial gains in volatile trade as the company's Q3 December 2013 earnings fell short of market expectations. ICICI Bank edged lower in choppy trade as the bank's ratio of net non-performing asset rose in Q3 December 2013.
Key benchmark indices edged higher in early trade on firm Asian stocks. Key benchmark indices trimmed initial gains in morning trade. Key benchmark indices recovered from lower level after trimming initial gains in mid-morning trade. Key benchmark indices trimmed gains in afternoon trade. Key benchmark indices retained positive zone in mid-afternoon trade. Key benchmark slipped into the red in late trade.
The market sentiment was hit adversely by data showing that foreign funds resort to heavy selling of Indian stocks on Tuesday, 28 January 2014. Foreign institutional investors (FIIs) sold shares worth a net Rs 1267.35 crore on Tuesday, 28 January 2014, as per provisional data from the stock exchanges.
The market may remain volatile tomorrow, 30 January 2014, as traders roll over positions in the futures & options (F&O) segment from the near month January 2014 series to February 2014 series. The January 2014 F&O contracts expire tomorrow, 30 January 2014.
As per provisional closing, the S&P BSE Sensex was down 30.03 points or 0.15% to 20,653.48. The index jumped 145.17 points at the day's high of 20,828.68 in early trade, its highest level since 27 January 2014. The index fell 69.89 points at the day's low of 20,613.62 in late trade.
The CNX Nifty was down 0.60 points or 0.01% to 6,125.65. The index hit a high of 6,170.45 in intraday trade, its highest level since 27 January 2014. The index hit a low of 6,109.80 in intraday trade.
The market breadth, indicating the overall health of the market, turned negative from positive in late trade. On BSE, 1,361 shares declined and 1,236 shares gained. A total of 143 shares were unchanged.
The total turnover on BSE amounted to Rs 1769 crore, lower than Rs 2451 crore on Tuesday, 28 January 2014.
Among the 30-share Sensex pack, 15 stocks gained and rest of them declined.
Index heavyweight and cigarette major ITC fell 0.5% to Rs 325.50 in volatile trade. The stock hit high of Rs 328.30 and low of Rs 324.25.
Reliance Industries (RIL) reversed intraday gains in volatile trade. The stock was off 1.18% at Rs 835.85. The stock hit high of Rs 852 and low of Rs 835.10 so far during the day.
GAIL (India) was unchanged for the day at Rs 345.10. The stock turned volatile after the company announced Q3 result during trading hours today, 29 January 2014. The stock hit high of Rs 352.50 and low of Rs 341.25.
GAIL (India)'s net profit surged 30.7% to Rs 1679.40 crore on 27.79% growth in total income to Rs 16246.71 crore in Q3 December 2013 over Q3 December 2012. There was an exceptional income of Rs 344.95 crore in Q3 December 2013 on account of profit on sale of long term investments.
GAIL (India)'s subsidy sharing burden declined 99.81% to Rs 1.32 crore in Q3 December 2013 over Q3 December 2012.
PSU OMCs were in demand. BPCL (up 3.62%) and Indian Oil Corporation (up 5.53%) gained.
HPCL surged 5.87% after the company said that its wholly owned subsidiary has entered into a sale purchase pact with AWE, Australia to acquire stake in two gas fields for total consideration of AUD 85 million. The announcement was made during trading hours today, 29 January 2014.
HPCL said that Prize Petroleum Company, which is a wholly owned subsidiary and upstream arm of the company, has entered into a sale purchase agreement with AWE, Australia to acquire 11.25% interest in T/L1 license (includes Yolla producing field and BassGas infrastructure) and 9.75% interest in T/18P permit (includes Trefoil development field) in Australia for a total consideration of AUD 85 million. The field is operated by Origin Energy and is held by a consortium in which Origin Energy, AWE and Toyota Tsusho are the major partners, HPCL said in a statement.
HPCL said that the fields are located in shallow water in Bass basin between mainland Australia and Tasmania offshore Victoria. In addition to the field, the acquisition will also entail a stake in offshore platform, gas processing plant and a 147 Km subsea pipeline. Production from Yolla mainly comprises of gas, LPG and condensate, HPCL said in a statement.
ICICI Bank edged lower in choppy trade as the bank's ratio of net non-performing asset rose to 0.81% as on 31 December 2013 from 0.73% as on 30 September 2013. The stock lost 1.44% at Rs 1,004.50. The scrip hit high of Rs 1,040.95 and low of Rs 996.20. ICICI Bank's net profit rose 12.53% to Rs 2532.21 crore on 15.4% increase in total income to Rs 14255.96 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours today, 29 January 2014.
ICICI Bank said that the bank creates Special Reserve through appropriation of profits, in order to avail tax deduction as per Section 36(1)(viii) of the Income Tax Act, 1961. The Reserve Bank of India, vide its circular dated 20 December 2013, has advised banks to create a deferred tax liability (DTL) on the amount outstanding in Special Reserve, as a matter of prudence. In accordance with these RBI guidelines, during Q3 December 2013, ICICI Bank has created a DTL of Rs 1419 crore on Special Reserve outstanding as on 31 March 2013, by reducing the reserves. The bank created DTL of Rs 215 crore in Q3 December 2013 based on the estimated Special Reserve for the period April-December 2013, resulting in additional tax provision of Rs 215 crore in Q3 December 2013. Excluding this impact, the growth in the bank's net profit would have been higher at 22% on year-on-year basis in Q3 December 2013, ICICI Bank said.
Total advances increased by 16% year-on-year to Rs 332632 crore (US$ 53.8 billion) at 31 December 2013 from Rs 286766 crore (US$ 46.4 billion) at 31 December 2012. The bank has continued to see healthy growth in its retail disbursements resulting in a year-on-year growth of 22% in the total retail portfolio at 31 December 2013.
The bank has seen healthy trends in current and savings account (CASA) deposits mobilisation. During Q3 December 2013, savings account deposits increased by Rs 2190 crore (US$ 354 million) and current account deposits increased by Rs 1068 crore (US$ 173 million). At 31 December 2013, savings account deposits were Rs 95725 crore (US$ 15.5 billion) and current account deposits were Rs 41441 crore (US$ 6.7 billion). The Bank's CASA ratio was 43.3% at 31 December 2013, at a similar level as 30 September 2013. The average CASA ratio for Q3 December 2013 was at 39.1%.
The bank's capital adequacy at 31 December 2013 as per Reserve Bank of India's guidelines on Basel III norms was 16.81% and Tier-1 capital adequacy was 11.53%, well above regulatory requirements. In line with applicable guidelines, the Basel III capital ratios reported by the bank for at 31 December 2013 do not include the profits for the nine months ended 31 December 2013. Including the profits for nine month ended December 2013, the capital adequacy ratio for the bank as per Basel III norms would have been 17.94% and the Tier I ratio would have been 12.66%.
Net non-performing assets at 31 December 2013 were Rs 3121 crore (US$ 505 million) compared to Rs 2707 crore (US$ 438 million) at 30 September 2013. The net non-performing asset ratio was 0.81% at 31 December 2013 compared to 0.73% at 30 September 2013. The bank's provision coverage ratio, computed in accordance with the RBI guidelines, was 70.0% at 31 December 2013. Net loans to companies whose facilities have been restructured were Rs 8602 crore (US$ 1.4 billion) at 30 December 2013 compared to Rs 6826 crore (US$ 1.1 billion) at 30 September 2013.
On a consolidated basis, ICICI Bank's net profit rose 8.6% to Rs 2872.30 crore on 9.76% increase in total income to Rs 20543.46 crore in Q3 December 2013 over Q3 December 2012.
Sesa Sterlite lost 3.03%. On a consolidated basis, Sesa Sterlite reported a net profit Rs 1868.29 crore on total income of Rs 19912.90 crore in Q3 December 2013. The result was announced after market hours on Tuesday, 28 January 2014. The Q3 December 2013 figures are non comparable with Q3 December 2012 as the merger of copper producer Sterlite Industries (India) and iron-ore miner Sesa Goa, to form Sesa Sterlite took effect in August 2013.
Mr. Anil Agarwal, Chairman, Sesa Sterlite said: "The Sesa Sterlite merger was completed a few months ago, and the merged company has delivered a strong set of results, benefiting from its scale and diversification. We have record production of oil & gas and copper. We continue to focus on driving value-accretive growth across our portfolio of long-life assets and this, combined with efficient cost management has positioned us well to deliver superior returns for our shareholders".
Hero MotoCorp advanced 2.81% after the company showcased five new products: 150-cc Hero Xtreme, 110-cc Hero Dash, 250-cc sports bike Hero HX250R, electric scooter Hero Leap and Hero RNT concept.
Hero Dash is a standard scooter powered by a 110-cc engine. Hero Xtreme motorcycle is powered by a single-cylinder 150-cc air-cooled engine. HX250R is Hero MotoCorp's first 250-cc sports bike.
Hero Leap is India's first series hybrid scooter. The Leap is powered by lithium-ion batteries and an electric-traction motor with an onboard generator powered by an all-new 124-cc engine.
Hero RNT is a diesel concept bike that features a high torque 150-cc diesel engine that has an optional turbocharger. The RNT gets an option of being attached with an oversize generator, offered as an accessory, to make it a hybrid. Another option is a hub electric motor in the front wheel powered by an electric battery pack, to give the rider a unique two-wheel drive option.
Pawan Munjal, Managing Director & Chief Executive Officer, Hero MotoCorp, said, "This is the dawn of a new era, indeed a significant milestone in the exciting journey that we set out on a little over two years ago. We had then promised to bring a range of all-new products and innovations that will unlock a New Age of technologically superior and youth-focused two-- wheelers. Today, we are living up to that commitment by unveiling the first of our own product range on completely new platforms, developed by our diversified pool of human talent with the power of game-changing breakthrough technologies, intellectual creativity and innovations. This is indeed yet another example of the India Story - the successful pursuit of our engineers to scale new technology frontiers on their own and leverage the best of technologies available around the world to make superior products which will cater to different geographies around the globe. And still, what we are showcasing here today is just a glimpse of the range of products that we are developing. There 's more to come - a slew of products, including new Concepts which you will get to see at the Delhi Motor Show in February".
Bharti Airtel reversed initial gains in volatile trade as the company's Q3 December 2013 earnings fell short of market expectations. The stock lost 1.24% to Rs 302.50. The stock hit a high of Rs 314.80 and low of Rs 291.25. As per International Financial Reporting Standards (IFRS), Bharti Airtel's consolidated net profit surged 115.1% to Rs 610 crore on 13.3% increase in total revenue to Rs 21939 crore in Q3 December 2013 over Q3 December 2012.
Bharti Airtel's consolidated mobile internet revenue surged 105.2% to Rs 1736 crore in Q3 December 2013 over Q3 December 2012, accounting for more than one-third of the overall incremental revenue.
The India business registered a revenue growth of 10.3% in Q3 December 2013 over Q3 December 2012 (Y-o-Y), with strong contribution from all segments. Mobile voice realisation in India improved by 1.96 paise (p) on a Y-o-Y basis (37.13p in Q3 December 2013 versus 35.17p in Q3 December 2012), and minutes grew by 5.9% Y-o-Y. Data customer base increased by 31.2% to 54.4 million customers and coupled with 54.4% increase in usage per customer, this led to 97% increase in total data traffic. Mobile ARPU has increased by Rs 9.7 to Rs 195. DTH revenue grew by 25.8% and airtel business grew by 13.9% Y-o-Y.
International revenue grew by 18.5% Y-o-Y in Indian rupee (INR) terms with Africa growing by 17.2% and South Asia by 44.8%. Net Revenue in Africa (after inter-connect costs and cost of goods sold) has grown by 21.6% Y-o-Y in INR terms. Africa revenue in US dollar terms grew by 4.1% on sequential quarter basis led by a strong 16.8% increase in Data revenues. Mobile voice pricing in Africa remained stable at 3.31 cents per minute, and overall ARPU improved to $5.8.
Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) at Rs 7093 crore grew by 22.8% Y-o-Y, with margin expanding to 32.3% from 29.8% from the corresponding quarter last year led by improved operational performance in India, which expanded EBITDA margin by 4.4% Y-o-Y.
Consolidated Operating Free Cash Flows for the quarter at Rs 4271 crore grew by 19.9% Y-o-Y.
The company's consolidated net debt has reduced to $9.313 billion resulting in the Net Debt to EBITDA ratio (LTM) improving to 2.06 times as compared to 2.2 times at the end of the previous quarter.
In a statement, Mr. Gopal Vittal, JMD and CEO, India Operations, Bharti Airtel, said: "Our efforts over the last 12 months to improve the quality of customer acquisitions have resulted in significant reduction in customer churn. Our focus on superior internet experience has resulted in increased data adoption and usage. Data is now a huge source of revenue growth".
Mr. Manoj Kohli, MD and CEO, International Operations, Bharti Airtel, said: "The International operations continued to achieve steady revenue growth. Africa had another quarter of strong growth from the 3G/Data and Airtel Money services across all its markets and we expect this trend to sustain due to large investments in brand & network. The market growth came back in Nigeria which is the largest telecom market in the continent".
Meanwhile, Bharti Airtel after market hours on Tuesday, 28 January 2014, said that the board of directors of the company at its meeting held on Tuesday, 28 January 2014 has approved the changes in its top management. Mr. Manoj Kohli will become Chairman of Bharti Airtel International (Netherlands) B.V. that owns telecom operations in Africa, relinquishing the position of Managing Director & CEO (International) in Bharti Airtel. Mr. Manoj Kohli will continue on the Board of Bharti Airtel as Non-executive Director.
Mr. Christian de Faria has been appointed as the Managing Director and CEO (Africa) of Bharti Airtel International (Netherlands) B.V. and will assume full operational responsibility of the company's operations across 17 African geographies. Mr. Gopal Vittal has been appointed as the Managing Director and CEO (India & South Asia) and will also be responsible for Bangladesh and Sri Lanka operations.
The Reserve Bank of India has not raised interest rates to fight off the recent global emerging market sell-off, but to tamp down inflationary pressures, Governor Raghuram Rajan said today, 29 January 2014. "I think for (some) time we have been saying very clearly we are focused on preserving the value of the rupee, in the domestic context," he told analysts on a conference call a day after the central bank unexpectedly raised its key rate by 25 basis points. "Preserving it in the domestic context will preserve it in the international context. Preserving in the domestic context means bringing inflation under control. Once we do that, we believe investor confidence naturally follows," he said.
Dr. Rajan said he would have liked to see a greater reduction in core inflation. The Reserve Bank of India (RBI) raised its main lending rate viz. the repo rate by 25 basis points to 8% after Third Quarter Review of Monetary Policy for 2013-14 on Tuesday, 28 January 2014, to rein in high consumer price inflation.
Turkey's central bank raised its repurchase rate to 10% from 4.5% and boosted other key borrowing costs at a late-night emergency meeting on Tuesday, 28 January 2014. Turkish currency lira's slide to a record low coupled with Argentina's devaluation of the peso and concern over China's economy ignited a rout in world equity markets at the end of last week.
European stocks edged higher on Wednesday, 29 January 2014, after the Turkish central bank aggressively increased interest rates at a late-night emergency meeting on Tuesday, 28 January 2014, to halt a slide in the lira. Key benchmark indices in UK, France and Germany were up by 0.69% to 0.94%.
Asian stocks edged higher on Wednesday, 29 January 2014, after Turkey's central bank on Tuesday, 28 January 2014, more than doubled interest rates to arrest a currency slide that roiled global markets. Key benchmark indices in Hong Kong, China, Japan, Indonesia and South Korea rose by 0.56% to 2.7%. In Singapore, the Straits Times index fell 0.47%. Stock markets in Taiwan are closed until 4 February 2014 for the Lunar New Year holiday.
Industrial output in South Korea increased 3.4 percent in December from November, the biggest gain since June 2009.
Trading in US index futures indicated that the Dow could advance 39 points at the opening bell on Wednesday, 29 January 2014. US stocks edged higher on Tuesday, 28 January 2014, as earnings at companies from Pfizer Inc. to D.R. Horton Inc. topped estimates.
The Conference Board's index of US consumer confidence rose to 80.7 in January from a revised 77.5 in December, the New York-based private research group said on Tuesday, 28 January 2014.
Federal Reserve officials have been scrutinizing US economic data to determine the timing and pace of reductions to asset purchases. The central bank, which concludes a two-day meeting today, 29 January 2014, decided at its December gathering to begin cutting its monthly bond buying by $10 billion to $75 billion.
US President Barack Obama on Tuesday, 28 January 2014, vowed aggressive action on helping the US economy, saying he would bypass Congress on key issues including creating a new retirement-savings program and raising the minimum wage for workers on new federal contracts. In his State of the Union address, Obama said the economy has grown for four years, that corporate profits and stock prices have "rarely been higher," and wealthy Americans have benefitted. But he said average wages have hardly budged, and inequality has deepened. "America does not stand still," he said. "And neither will I. So wherever and whenever I can take steps without legislation to expand opportunity for more American families, that's what I'm going to do," Obama said.
In his speech, Obama called on Congress to raise the minimum wage for all workers, fix the immigration system, and expand the Earned Income Tax Credit. He said that he would make it easier for states to build factories that use natural gas and that Congress should fund building of fueling stations.
Republicans slammed the president for his pledge to go solo to help narrow the economic gap. "Instead of our areas of common ground, the president focused too much on the things that divide us - many we've heard before - and warnings of unilateral action. The president must understand his power is limited by our constitution," House Speaker John Boehner said in a statement.
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