Key benchmark indices extended gains to hit fresh intraday high in mid-afternoon trade. The barometer index, the S&P BSE Sensex, the 50-unit CNX Nifty, both, hit over one-week high. The Sensex was up 231.67 points or 1.22%, up 313.84 points from day's low and off 13.18 points from the day's high. The market breadth, indicating the overall health of the market, was strong. Gains in world stocks boosted sentiment.
Mahindra & Mahindra (M&M) pared gains in volatile trade after the company announced good Q1 results. ONGC fell in choppy trade after the company reported weak Q1 result after market hours on Monday, 12 August 2013. Hindalco Industries cut intraday losses after the company announced increase in net profit on stand alone basis in Q1 June 2013. Godrej Consumer Products gained on high volume after multiple bulk deals were executed on the counter.
Key benchmark indices reversed direction after an initial slide triggered by weak industrial production data for June 2013 released by the government after trading hours on Monday, 12 August 2013. Key benchmark indices pared gains after striking fresh intraday high in morning trade. The Sensex moved past the psychological 19,000 mark. Key benchmark indices extended intraday gains and hit fresh intraday high in mid-morning trade. The Sensex and 50-unit CNX Nifty, both, hit one-week high. The market extended gains in early afternoon trade. The market hit fresh intraday high in afternoon trade. Key benchmark indices extended gains to hit fresh intraday high in mid-afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 12 August 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 408.35 crore on Monday, 12 August 2013, as per provisional data from the stock exchanges.
The rupee recovered against the dollar in choppy trade. The partially convertible rupee was hovering at 61.03, stronger than its close of 61.2750/2850 on Monday, 12 August 2013. The rupee had record low of 61.80 in intraday deals on 6 August 2013.
At 14:18 IST, the S&P BSE Sensex was up 231.67 points or 1.22% to 19,178.65. The index jumped 244.85 points at the day's high of 19,191.83 in mid-afternoon trade, its highest level since 5 August 2013. The index fell 82.17 points at the day's low of 18,864.81 in early trade.
The CNX Nifty was up 72.40 points or 1.29% to 5,684.80. The index hit a high of 5,688.10 in intraday trade, its highest level since 5 August 2013. The index hit a low of 5,578.90 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,327 shares gained and 857 shares fell. A total of 145 shares were unchanged.
Among the 30-share Sensex pack, 27 stocks gained and only three of them declined. Coal India (down 2.68%) and ITC (down 0.49%) edged lower from the Sensex pack.
NTPC (up 3.62%), GAIL (India) (up 3.68%) and Bajaj Auto (up 3.26%) edged higher from the Sensex pack.
Mahindra & Mahindra (M&M) pared gains in volatile trade after the company announced good Q1 results in mid-afternoon trade. The stock was up 1.67% to Rs 874.50. The scrip had jumped as much 4.38% at the day's high of Rs 897.85 in mid-morning trade ahead of the results announcement.
M&M said that combined net profit of the company and its 100% subsidiary Mahindra Vehicle Manufacturers (MVML) rose 16.9% to Rs 909.70 crore in Q1 June 2013 over Q1 June 2012. The combined gross revenue of M&M and MVML rose 8% to Rs 10801.50 crore in Q1 June 2013 over Q1 June 2012. MVML, located at Chakan near Pune in Maharashtra, has been set up as a 100% subsidiary of M&M with a view to source contemporary products for expanding the market offering of M&M
M&M said that the good growth in the profits of the combined entity (M&M and MVML) in the quarter was due to good volume performance by farm equipment sector and tight control on expenses. The operating margin of the combined entity during the quarter improved to 14.4% in Q1 June 2013, from 13.9% in Q1 June 2012.
M&M said its recent acquisition of Ssangyong Motor Company, South Korea broke even for the first time since its acquisition in March 2011, with profit after tax of Rs 41 crore in Q1 June 2013.
With regard to future business outlook, M&M said that a fair degree of macroeconomic turbulence in the near term seems inevitable and hence the company, at this point, maintains a cautious and watchful outlook on the economy.
Hindalco Industries cut intraday losses after the company announced increase in net profit on stand alone basis in Q1 June 2013 in mid-afternoon trade. The stock was down 1.17% at Rs 92.65. The stock had lost as much as 4.21% to a low of Rs 89.80 in mid-morning trade after the company's US subsidiary Novelis Inc. reported weak Q1 result on Monday, 12 August 2013.
Hindalco Industries' net profit rose 11.52% to Rs 474 crore on 3.15% decline in revenue from operations to Rs 5838 crore in Q1 June 2013 over Q1 June 2012. Eearnings before interest, taxation, depreciation and amortization (EBITDA) rose 3.45% to Rs 479 crore in Q1 June 2013 over Q1 June 2012.
Other income for Q1 June 2013 includes non-recurring income of Rs 203 crore, sharply higher than Rs 130 crore in Q1 June 2012.
Hindalco said that the performance in Q1 June 2013 was achieved despite adverse macro-economic headwinds. The average aluminium prices on LME dropped by around 7% on year on year basis in Q1 June 2013. This sharp fall in prices was partially cushioned by the depreciating rupee, Hindalco said. As in the corresponding quarter of last year, the copper business carried out a planned shutdown in one its smelters that resulted in a lower than normal level of production, Hindalco said.
Hindalco Industries said that lower metal prices led to a 3% drop in sales revenue in Q1 June 2013.
Finance costs during the quarter were higher on account of higher average borrowing compared to Q1 June 2012. Finance costs surged 83.95% to Rs 149 crore in Q1 June 2013 over Q1 June 2012.
Hindalco Industries said that there has been a significant progress on all projects being implemented by the company and its subsidiary Utkal Alumina International (UAIL). The company also said that in view of the delays in getting various regulatory approvals and the current uncertain economic environment, the company is re-evaluating its investment strategy with respect to its proposed Aditya Refinery and Jharkhand Aluminium Projects.
On future business outlook, the company said that its focus is now on ramping up the new projects already on stream. Depressed LME prices in an otherwise inflationary scenario pose a significant challenge, Hindalo said. However, the company is confident of riding through these challenges with its trust on stabilizing the projects, operational efficiencies and cost control, Hindalco Industries said.
Hindalco Industries' US subsidiary Novelis Inc. reported weak Q1 result on Monday, 12 August 2013. Novelis' net profit fell 84.61% to $14 million on 5.56% decline in net sales to $2.408 billion in Q1 June 2013 over Q1 June 2012. Excluding certain tax-effected items, net profit for Q1 June 2013 was $21 million. Novelis is a subsidiary of Hindalco Industries.
Adjusted EBITDA declined 21.23% to $204 million in Q1 June 2013 over Q1 June 2012. Novelis said that latest quarter's results included a non-recurring $14 million amendment to the company's employee Long-Term Incentive Plan. In addition, the company faced continued pricing headwinds and softer than expected demand for beverage can sheet partially driven by unfavorable weather conditions.
Novelis said the decline in sales was primarily due to a 7% decline in average aluminum prices, lower shipments, and lower conversion premiums.
"Despite the challenges we faced in the first quarter, we maintained financial discipline through good cost control and will continue this focus on cost containment going forward. In addition, our global strategic expansions and favorable demand trends supported by the 2014 World Cup in Brazil and automotive material substitution towards aluminum sheet will also help drive our business forward in the second half of this fiscal year", said Phil Martens, President and Chief Executive Officer for Novelis.
ONGC fell in choppy trade after the company reported weak Q1 result after market hours on Monday, 12 August 2013. The stock was off 121% at Rs 274.30. The scrip hit high of Rs 278.60 and low of Rs 270.90 so far during the day. ONGC's net profit fell 33.92% to Rs 4015.98 crore on 3.35% decline in total income to Rs 20505.03 crore in Q1 June 2013 over Q1 June 2012.
ONGC gave a gross subsidy discount of Rs 12622 crore in Q1 June 2013, which was higher than Rs 12346 crore in Q1 June 2012. The subsidy discount impacted the profit before tax (PBT) by Rs 10803 crore and profit after tax (PAT) by Rs 7131 crore. ONGC shares the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PSD kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.
ONGC said that due to changes in accounting policies, the profit before tax was higher by Rs 222 crore.
ONGC said it has provided for Rs 1611 crore in Q1 June 2013 towards contribution for conversion of Post Retirement Benefit Scheme from Defined Benefit Scheme to Defined Contributory Scheme based on guidelines of the Department of Public Enterprise.
ONGC reported 4 hydrocarbon discoveries in Q1 June 2013 and an additional discovery in August 2013.
Godrej Consumer Products gained 3.11% to Rs 889. The stock rose on volume of 12.11 lakh shares, higher than average daily volume of 53,611 shares in past one quarter. Multiple bulk deals were executed on the counter. A bulk deal of 3.60 lakh shares was executed on the counter at Rs 861.10 per share at opening trade on BSE today, 13 August 2013. Second bulk deal of 2.40 lakh shares was executed on the counter at Rs 862 per share at opening trade on BSE today, 13 August 2013. Third bulk deal of 2.40 lakh shares was executed on the counter at Rs 864 per share at 09:16 IST on BSE today, 13 August 2013. Fourth bulk deal of 1.60 lakh shares was executed on the counter at Rs 867.85 per share at 10:09 IST on BSE today, 13 August 2013.
GVK Power & Infrastructure surged 6.36%. The company during market hours today, 13 August 2013, said in a clarification to media reports that it is exploring various options for relieving some of its debt. An option that is being looked at is, raising equity at the airport holding company level to retire the debt raised for the airport acquisition. The company is in discussion with a few investors in this matter, it added.
GVK Power & Infrastructure said that since the discussions are at a preliminary stage, it would not be appropriate for the company to divulge any details at this stage. No sooner the deal crystalizes, the company would be in a position to inform the regulatory authorities on the same.
Industrial production registered a contraction of 2.2% in June 2013, data released by the government after trading hours on Monday, 12 August 2013, showed. Mining production registered a decline of 4.1% and manufacturing production fell 2.2%. Electricity generation remain stagnant in June 2013. As per use-based classification, production of basic goods declined 1.9% in June 2013. Capital goods production fell 6.6%. Production of intermediate goods rose 1.1%. Consumer goods production declined 2.3%. Production of consumer durables declined 10.5%. Production of consumer non-durables rose 5%.
On a cumulative basis, industrial production registered a contraction of 1.1% during April-June 2013.
Inflation based on the consumer price index (CPI) eased in July 2013, data released by the government after trading hours on Monday, 12 August 2013, showed. The combined consumer price index (CPI) for urban and rural India eased to 9.64% in July 2013, from 9.87% in June 2013. The data showed that inflation under the category 'food and beverages' stood at 11.24% in July 2013.
European stocks gained for a fourth straight day on Tuesday, 13 August 2013, with investors awaiting the latest report on German business confidence, the ZEW survey, and US retail sales later in the day. Key benchmark indices in France, Germany and UK were up 0.39% to 0.94%.
Asian markets were trading higher on Tuesday, 13 August 2013, led by sharp upmove in Japanese shares which rose after yen eased following a report on Tuesday that said the Prime Minister Shinzo Abe is considering a corporate tax cut as a way to offset the impact of a planned two-stage increase in the sales tax. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, South Korea, Japan and Taiwan were up by 0.23% to 2.57%.
Japan's core machinery orders, seen as a leading indicator of capital spending, fell 2.7% in June, the Cabinet Office said Tuesday. Core machinery orders, which exclude volatile purchases for power-generation equipment and ships, can nonetheless vary wildly from month to month: They rose 10.5% in May, fell 8.8% in April, and rose 14.2% in March. A quarterly forecast included with the June results showed expectations the orders would fall 5.7% in the July-September period compared to the previous quarter.
Trading in US index futures indicated that the Dow could gain 48 points at the opening bell on Tuesday, 13 August 2013. US stocks closed a low-volume, light-news session with slight losses on Monday, though the technology-dominated Nasdaq Composite managed a gain.
Data on US retail sales for July 2013 is due for release later in the global day today, 13 August 2013.
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