Volatility continued in mid-afternoon trade as the key benchmark indices swung between gains and losses. The barometer index, the S&P BSE Sensex, was up 10.80 points or 0.04%, off close to 110 points from the day's high and up about 75 points from the day's low. The market breadth, indicating the overall health of the market was positive.
Most auto stocks edged lower. Tata Motors fell on weak Q4 result. Mahindra & Mahindra (M&M) dropped on reporting flat profitability in Q4 result.
The Sensex slipped into the red in early trade after opening higher. The Sensex hit its lowest level in more than a low. The 50-unit CNX Nifty hit its lowest level in more than two weeks. Key benchmark indices regained positive terrain in morning trade. Volatility continued as key benchmark indices trimmed intraday gains in mid-morning trade. The Sensex further trimmed intraday gains in early afternoon trade. Volatility ruled the roost in afternoon trade as the key benchmark indices regained positive zone after reversing intraday gain. It swung between gains and losses in mid-afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 522.90 crore on Thursday, 29 May 2014, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was up 10.80 points or 0.04% to 24,244.33. The index jumped 119.44 points at the day's high of 24,353.59 in early trade. The index fell 66.21 points at the day's low of 24,167.94 in early trade, its lowest level since 21 May 2014.
The CNX Nifty was up 5.50 points or 0.08% to 7,241.15. The index hit a high of 7,272.50 in intraday trade. The index hit a low of 7,118.45 in intraday trade, its lowest level since 15 May 2014.
The BSE Mid-Cap index was up 44.65 points or 0.53% to 8,479.05. The BSE Small-Cap index was up 58.48 points or 0.65% to 9,043.85. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market was positive. On BSE, 1,560 shares rose and 1,280 shares fell. A total of 112 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks rose and rest of them fell. Hindustan Unilever (up 4.91%), Bharti Airtel (up 2.11%) and NTPC (up 2.46%) edged higher from the Sensex pack.
Most auto stocks edged lower. Maruti Suzuki India declined 0.49%.
Ashok Leyland rose 1.11%.
Tata Motors fell 1.18% to Rs 418.80 on weak Q4 result. The stock hit high of Rs 421.90 and low of Rs 407.05 so far during the day. The company's consolidated net profit declined 0.68% to Rs 3918 crore on 16.6% growth in revenue (net of excise) to Rs 65317 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Thursday, 29 May 2014.
The top line during the quarter grew despite a weak operating and economic environment in the standalone business which was more than offset by strong demand for new products, growth in volumes, richer product mix and richer geographic mix at Jaguar Land Rover (JLR), Tata Motors said in a statement.
Tata Motor's consolidated net profit surged 41.42% to Rs 13991 crore on 23.3% growth in revenue (net of excise) to Rs 232834 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
JLR's wholesale and retail volumes grew by 15.5% and 15.9%, respectively in FY 2014 over FY 2013.
JLR's net profit rose 19.09% to GBP 449 million on 5.9% growth in revenue to GBP 5349 million in Q4 March 2014 over Q4 March 2013. Operating profit (EBITDA) stood at GBP 920 million, up 12.2% as compared to GBP 820 million during the corresponding quarter last year. Operating margin stood at 17.2%, up 100 bps as compared to corresponding quarter last year reflecting richer product and geographic mix, with increased volumes in emerging markets, Tata Motors said. The Profit before tax (PBT) grew to GBP 576 million (GBP 507 million in the corresponding quarter last year) reflecting higher operating profit (EBITDA), favourable exchange revaluation on loans and unrealized hedges, partially offset by higher depreciation and amortisation as well as higher finance expense, Tata Motors said in a statement.
JLR's net profit surged 54.77% to GBP 1879 million on 22.82% growth in revenue to GBP 19386 million in FY 2014 over FY 2013. The operating profit and margin stood at GBP 3393 million and 17.5% respectively reflecting increase in volumes, richer product mix supported by launch of new Range Rover Sport, new Range Rover and Jaguar F-TYPE, richer geographic mix, with increased volumes in emerging markets partially offset by less favourable operational foreign exchange net of realized hedges in Q4 March 2014. PBT were GBP 2501 million (GBP 1674 million for the corresponding period last year).
Mahindra & Mahindra (M&M) shed 0.54% to Rs 1,172 on reporting flat profitability in Q4 result. The stock hit high of Rs 1,205.55 and low of Rs 1,162.55 so far during the day. The company's net profit rose 0.86% to Rs 896.88 crore on 4.92% rise in total income to Rs 11099.22 crore in Q4 March 2014 over Q4 March 2013. The company announced Q4 result during market hours.
Separately, the company said after market hours on Thursday, 29 May 2014 that India Ratings & Research (lnd-Ra, a Fitch Group Company) has assigned a Long-Term Issuer Rating of 'IND AAA' to M&M, with a 'Stable' outlook. The rating indicates highest degree of safety regarding timely servicing of financial obligations.
Most shares of two-wheeler makers rose. Bajaj Auto rose 0.28%. TVS Motor Company shed 2.28%. Hero MotoCorp gained 0.3%.
Jammu & Kashmir Bank tumbled 18.3% after a media report alleged that some of the directors and officers at the bank were not declaring all the non-performing and stressed assets in its loan book. According to the report, Jammu & Kashmir Bank (J&K Bank) has not classified the loan amounting to Rs 1100 crore and given to three companies and as NPAs in its balance sheet. These assets include Rs 650 crore loan given to a Kolkatta-based company engaged in agro and ancillary business, Rs 400 crore loan disbursed to Mumbai-based real estate company and Rs 100 crore to a Hyderabad-based company.
The report alleged that the audit committee of the board has not objected to this fraudulent balance sheet management, indicating their complicity.
The government will announce data on gross domestic product (GDP) for Q4 March 2014 and the year ended 31 March 2014 (FY 2014) today, 30 May 2014. India's GDP grew 4.7% in Q3.
Reserve Bank of India (RBI) Governor Raghuram Rajan today, 30 May 2014, said he expected to join hands with the country's new government to bring down high inflation. Rajan, speaking at a seminar in Tokyo, said the new government's plan to curb food inflation seems sensible and that he expected the public's inflation expectations to fall in the future. "There is a sense of conviction about our plan to bring inflation down to 8% this year and 6% next year," Rajan said. "This information has gotten out to the public. The public's inflation expectations have fallen and I think expectations will fall further in the future," Rajan said.
Rajan said India's current account deficit could fall to 2% to 2.5% of gross domestic product in medium term. Rajan said he was worried about non-performing assets in India's banking sector but wanted to work with the new government to solve this problem quickly.
The Reserve Bank of India (RBI) undertakes a monetary policy review on Tuesday, 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
At a meeting of his Cabinet on Thursday Prime Minister Narendra Modi reportedly asked his ministers to prepare a list of issues that they will take up in the first 100 days in office, with a focus on efficiency, delivery systems and implementation. The PM also has a list of top 10 priorities, which include among others to remove hurdles in economic growth which includes containing inflation as a priority, to prioritize education, energy and water, to bring in reforms in infrastructure, to revive growth and investor confidence, to provide a people-oriented government and governance, to ensure time-bound implementation of policy, to maintain consistency in policy, to promote e-auctioning in government tenders and other government work, to improve inter-ministerial co-ordination, to build confidence in the bureaucracy and to empower and provide freedom to the bureaucracy.
The inaugural session of the new Lok Sabha will commence on 4 June 2014 and end on 11 June 2014. The seven-day-long session has been convened to enable the newly-elected MPs to be sworn in. This will be followed by the election of the Speaker of the 16th Lok Sabha. The special session will be followed by a full-fledged budget session after a gap.
Finance Minister Arun Jaitley is expected to table Union Budget for 2014-15 in Lok Sabha by July 2014. An interim budget was presented by P. Chidambaram in February this year. Essentially, in the nature of a vote on account, the interim budget was intended to get Parliament approval for expenditure to be incurred during the first few months of fiscal year 2014-15 due to Lok Sabha elections.
European stocks were slightly lower on Friday as investors awaited data on US business activity. Key benchmark indices in UK, Germany and France were off 0.02% to 0.5%.
UK consumer confidence continued to improve in May, reaching its highest level in more than nine years as Britons became increasingly convinced that the economy is on the mend after a long period of stagnation that followed the sharp contraction in the immediate aftermath of the financial crisis. Adding to indications that the economy's strong recovery since early last year is set to continue, the British Chambers of Commerce raised its growth forecast for this year to 3.1% from 2.8%, and its forecast for 2015 to 2.7% from 2.5%.
In a separate release, the Confederation of British Industry said its measure of economic growth, which is based on surveys of businesses in May, reached its highest level since the series began in 2003. Since April 2013, when the improvement began, GfK's measure of consumer confidence has risen by 27 points, the largest gain over a sustained period since the seven months to December 1977.
German retail sales declined more sharply than expected in April, according to data from the country's statistics office, Destatis. Retail sales in April fell 0.9% in the euro zone's largest economy from the previous month on an adjusted basis. German April sales were up a real 3.4% from the year-earlier month.
Spain's inflation rate eased slightly in May, largely due to drops in the prices of food and beverages, official data showed Friday. The country's European Union-harmonized consumer price index rose 0.2% in May, said the country's national statistics institute, or INE, down from a reading of 0.3% in April. Under Spain's own inflation calculations, prices also rose 0.2%, having increased by 0.4% in the previous month.
Asian stocks edged lower in choppy trade on Friday, 30 May 2014. Key benchmark indices in China, Indonesia, Japan, Singapore, South Korea and Taiwan were off 0.07% to 1.08%. In Hong Kong, the Hang Seng index rose 0.31%
Price growth in Japan excluding fresh food rose to 3.2% in April, up from 1.3% in March.
Trading in US index futures indicated that the Dow could fall 10 points at the opening bell on Friday, 30 May 2014. US stocks rose for the fifth time in six days on Thursday, driving the Standard & Poor's 500 Index to a record, after Tyson Foods Inc. offered to buy Hillshire Brands (HSH) Co. and investors speculated the economy is improving following a contraction in the first quarter.
US economy suffered its first contraction since 2011 last quarter. Gross domestic product fell at a 1% annualized rate revised Commerce Department figures showed in Washington. Stockpiles grew at less than half the pace than in the final three months of 2013, lopping 1.6 percentage points off GDP while businesses cut back on investment. Demand picked up entering the second quarter, giving weight to the Federal Reserve's view that the economy is recovering.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 17-18 June 2014. The Fed on 30 April 2014 said after a monetary policy review that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends. The FOMC also reduced monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve.
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