A bout of volatility was witnessed as key benchmark indices alternately moved between positive and negative zone in morning trade. The S&P BSE Sensex was down 19.74 points or 0.11%, off close to 90 points from the day's high and up about 20 points from the day's low. The market breadth, indicating the overall health of the market, was strong.
Lupin extended Wednesday's losses triggered by the company's Q1 results falling short of market expectations. Metal stocks rose after China reported much better than expected trade results for July. Tata Motors recovered from Wednesday's post result slide as investors took heart from strong operating performance of Tata Motors' British luxury car unit Jaguar Land Rover (JLR) which constitutes majority to Tata Motors' revenue.
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.
Foreign institutional investors (FIIs) sold shares worth a net Rs 350.93 crore on Wednesday, 7 August 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was down 19.74 points or 0.11% to 18,645.14. The index rose 69.72 points at the day's high of 18,734.60 in morning trade. The index fell 43.21 points at the day's low of 18,621.67 in early trade.
The CNX Nifty was up 2.50 points or 0.05% to 5,521.60. The index hit a high of 5,544.20 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 strong. On BSE, 742 shares rose and 401 shares fell. A total of 37 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks fell and rest of them rose. Sun Pharmaceutical Industries (down 4.03%), Wipro (down 1.73%) and Tata Power Company (down 1.82%), edged lower.
Metal stocks rose after China reported much better than expected trade results for July. China is the world's largest consumer of copper and aluminum. Sterlite Industries (up 0.13%), Sesa Goa (up 0.23%), Tata Steel (up 1.35%), Hindalco Industries (up 1.04%), Sail (up 1.68%), Jindal Steel & Power (up 1.69%), and Hindustan Zinc (up 0.25%), gained.
Meanwhile, the government on Wednesday allowed import of some steel products for certain critical applications without local quality certification, a move that could further hit domestic suppliers after imports rose 15% last fiscal year. The government said imports for projects in sectors such as infrastructure, petroleum, nuclear reactors and defence would be exempted from applicable local quality standards if at least Rs 1000 crore is invested in such a project. The exporters will, however, have to obtain quality certificates from their country of origin, a notification from the commerce and industry ministry said.
NMDC rose 1.16%, with the stock extending Wednesday's 5.38% gains triggered by the company's better-than-expected Q1 results. The company's net profit fell 17.51% to Rs 1572.19 crore on 0.02% decline in total income to Rs 3391.53 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result during market hours on Wednesday, 7 August 2013.
Lupin extended Wednesday's losses triggered by the company's Q1 results falling short of market expectations. The stock was off 4.07%. The stock had lost 7.03% on Wednesday, 7 August 2013. The company's consolidated net profit jumped 43.03% to Rs 401.06 crore on 9.1% growth in net sales to Rs 2420.70 crore in Q1 June 2013 over Q1 June 2012. The company announced Q1 result during market hours on Wednesday, 7 August 2013. Earnings before interest, taxation, depreciation and amortization (EBITDA) jumped 43.5% to Rs 690.50 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin expanded to 28.5% of net sales in Q1 June 2013, from 21.7% in Q1 June 2012.
Lupin also announced on Wednesday that it has signed a strategic licensing agreement with US pharmaceutical company Romark Laboratories, L.C. (Romark) which grants Lupin exclusive rights to promote, distribute and market Alinia (nitazoxanide) for Oral Suspension in the US. Alinia (nitazoxanide) is the first thiazolide approved by the USFDA for the treatment of diarrhea caused by Cryptosporidium and Giardia and is the only USFDA-approved treatment for Cryptosporidium.
Tata Motors recovered from Wednesday's post result slide as investors took heart from strong operating performance of Tata Motors' British luxury car unit Jaguar Land Rover (JLR) which constitutes majority to Tata Motors' revenue. The stock rose 3.6%. 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'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).
The stock market remains closed tomorrow, 9 August 2013, on account of Ramzan Id.
Asian stocks rose on Thursday, 8 August 2013, after China reported much better than expected trade results for July, marking a sharp recovery from the previous month. Key benchmark indices in Hong Kong, Japan, South Korea, China and Taiwan were up 0.07% to 0.91%. 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 50 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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