Key benchmark indices regained positive zone after slipping into the red for a brief period in morning trade. The market breadth turned negative from positive. The barometer index, the S&P BSE Sensex, was up 40.77 points or 0.22%, up about 40 points from the day's low and off close to 115 points from the day's high. Index heavyweight and cigarette maker ITC reversed initial gains. Another index heavyweight Reliance Industries (RIL) also reversed initial gains. Many pharma stocks rose on renewed buying. IT stocks also edged higher.
The market edged higher amid initial volatility. Key benchmark indices regained positive zone after slipping into the red for a brief period in morning trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 664.90 crore on Tuesday, 9 April 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 40.77 points or 0.22% to 18,267.25. The index jumped 155.78 points at the day's high of 18,382.26 in early trade. The index fell 1.28 points at the day's low of 18,225.20 in morning trade.
The CNX Nifty was up 6.05 points or 0.11% to 5,501.15. The index hit a high of 5,536.40 in intraday trade. The index hit a low of 5,488.60 in intraday trade.
The market breadth, indicating the overall health of the market, turned negative from positive. On BSE, 684 shares fell and 524 shares rose. A total of 70 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks declined while rest of them rose.
Index heavyweight Reliance Industries (RIL) declined 0.17% at Rs 775. The scrip hit high of Rs 783.70 and a low of Rs 772.15 so far during the day. Shares of Reliance Communications rose 1.09%. Reliance Jio Infocomm, a telecom arm of RIL and Reliance Communications (RCom) on 2 April 2013 announced the signing of a definitive agreement for approximately Rs 1200 crore as one time indefeasible right to use (IRU) fees for sharing RCom's nationwide inter-city fiber optic network infrastructure. Reliance Jio Infocomm will utilize multiple fiber pairs across RCom's 1.2 lakh kilometres inter-city fiber optic network to provide a robust and future proof backbone for rolling out its state-of-the-art 4G services. As per the agreement, RCom will in turn have reciprocal access to optic fiber infrastructure to be built by Reliance Jio Infocomm in the future.
The agreement provides for joint working arrangements to be put in place immediately for upgradation of the optic fiber network to ensure seamless delivery of next generation services.
Index heavyweight and cigarette major ITC fell 0.19% to Rs 286.60. The scrip hit high of Rs 290.20 and a low of Rs 286.35 so far during the day. The stock had hit record high of Rs 310.75 on 4 February 2013. The government 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.
Many pharma stocks rose on renewed buying. Wockhardt, Cipla, Lupin, and Sun Pharmaceutical Industries rose by 0.11% to 1.22%. Ranbaxy Laboratories fell 1.05%.
Dr. Reddy's Laboratories (DRL) fell 0.82%, with the stock reversing initial gains. The company after market hours on Tuesday, 9 April 2013, announced plans to relocate its North America Headquarters and establish a R&D Center in Princeton, New Jersey. The company has entered into two lease agreements for a 75,500 square foot office facility and a 31,000 square foot office/lab at 107 College Road East and 303 College Road East respectively with National Business Parks.
Dr. Reddy's anticipates relocation to the office facility at 107 College Road East by the end of the summer of 2013 after the renovations to the facility are completed. The new North America Headquarters will house the Generics, Biologics, PSAI and Proprietary Product businesses as well as the corporate support functions within North America. It is projected to employ more than 300 people as the US businesses within Dr. Reddy's continue to expand in the coming years, DRL said in a statement.
The lab facility located at 303 College Road East will undergo a redesign to accommodate Dr. Reddy's product development and analytical laboratory requirements. Approximately 20,000 square feet of space will be part of the initial phase of redesign. The lab facility is also expected to be completed by late summer to early fall of 2013 and will employ 35 scientists, chemists and support personal.
Commenting on the move, G V Prasad, Chairman and CEO, Dr. Reddy's said, "The relocation will allow Dr. Reddy's to tap into local talent which will be instrumental in our long term growth. This R&D center, along with centers in Cambridge (UK) and Leiden (Netherlands) establishes our presence within some of the leading innovation centers of the world."
IT stocks edged higher. Infosys gained 0.71%. Infosys announces Q4 results on Friday, 12 April 2013. Infosys on 2 April 2013 said that it has signed an agreement with RWE Supply & Trading (RWEST), a leading European energy trading house to provide technology services to transform RWEST's trading operations to create business efficiencies and drive growth from new markets and commodities.
Infosys on 15 March 2013 announced that it has been selected by India Post to implement and manage a platform that will transform its rural operations. With this new agreement, Infosys will facilitate India Post's Rural Systems Integration (RSI) program.
HCL Technologies gained 0.12%. The company on 3 April 2013 said that it is collaborating with North Carolina New Schools -- a statewide public-private catalyst for education innovation -- to create and promote science, technology, engineering and math (STEM) programs and get college students ready for the 21st century workforce. HCL will design an online technology hub which will serve as a central gathering place for featured content and discussion between teachers, principals, school staff, students, counselors, college liaisons, district office superintendents and NC New Schools administration staff. NC New Schools will leverage HCL's services for content creation and management of its collaborative, online community offering access to tools and resources required to accelerate systemic, sustainable innovation in schools. NC New Schools will move approximately 3,000 NC New Schools intranet users to the new technology hub.
Wipro gained 1.26%. The stock had slumped 12.19% on Tuesday, 9 April 2013, after the demerger of the non-IT business of the company took effect on the bourses on that day. Following the demerger, the non-IT business of the company will be transferred to a separate company to be called Wipro Enterprises. The demerged company will have non-IT business, including consumer care products, the infrastructure engineering business and medical diagnostic product and services business.
The Wipro board had announced the demerger of the non-IT business in November 2012.
Wipro had offered different options to the shareholders of the company as a part of the demerger scheme. One such option is that Wipro shareholders would get one equity shares of Rs 10 each of Wipro Enterprises for every five Wipro shares. Under second option, Wipro shareholders would get one 7% redeemable preference share with a face value of Rs 50 of Wipro Enterprises for every five Wipro shares. The preference shares will be redeemable at a price of Rs 235.20 after twelve months from the date of issue. Wipro shareholders also have the option to exchange the equity shares of Wipro Enterprises and receive as consideration equity shares of Wipro held by the promoter. The exchange ratio will be one equity share of Wipro for every 1.65 equity shares in Wipro Enterprises.
Wipro announces Q4 results on 19 April 2013.
Software major TCS rose 0.98%, with the stock extending Tuesday's gains triggered by the company announcing overseas acquisition. TCS on Tuesday, 9 April 2013, said that it has signed definitive agreements for the acquisition of 100% equity shares in Alti SA, an IT services company in France, for a value of euro 75 million in an all cash transaction. The transaction will strengthen TCS's ability to service its customers in France and other regions in Europe. Alti SA is a privately held company owned by its management and two private equity funds, CM-CIC LBO Partners and IDI, which supported its growth from a revenue base of euro 64 million in 2007 to euro 126 million in 2012.
TCS announces Q4 results on 17 April 2013.
Siemens declined 0.71%. The company said during market hours today, 10 April 2013, that it has signed a contract worth Rs 104.40 crore with Bangladesh Steels Re-Rolling Mills (BSRM), the largest steel manufacturing company in Bangladesh to build a Gas Insulated Switchgear (GIS) substation. This is the first private sector-funded GIS substation project and the largest order size in the GIS segment in Bangladesh. BSRM will be utilizing the GIS substation to provide uninterrupted power to its new 1 million tonnes per annum (MTPA) steel plant. As an end-to-end solutions provider of power solutions, Siemens' Energy Sector will be implementing the project on a turnkey basis. Together with the 230kV/33kV GIS, Siemens will also provide high-performance, reliable, cost-competitive and energy efficient technologies such as control relay panels and a substation automation system. The project is expected to be commissioned in 15 months.
Commenting on the order win, Mr. A.K. Dixit, Sector Cluster Lead - Energy Sector, Siemens South Asia, said, "It is a breakthrough for Siemens in the private sector in Bangladesh. With this project we intend to create a benchmark for future power projects in this country. Power is the need of the hour in Bangladesh, like in the rest of South Asia, and we are confident that Siemens technologies will form the backbone of the power infrastructure in the country."
Speaking on this landmark project, Mr. Alihussain Akberali, Chairman - BSRM Group, Bangladesh, said, "We take pride in the fact that BSRM will be in a position to contribute to the power sector of Bangladesh when the project gets implemented. It is BSRM's goal to strive for 'sustainable growth' and the capacity of the group is expanding with the establishment of new power plants. BSRM is confident of world class and timely execution by Siemens."
The upside on the domestic bourses may be capped as reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms will result in supply of equity in the market over the next few months. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 30 June 2013, while the deadline for state-run firms is 31 August 2013. PSU divestment will also add to share sale glut in FY 2014. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014.
The Q4 March 2013 corporate earnings season will begins this week. Infosys announces Q4 results on Friday, 12 April 2013. Reliance Industries (RIL) announces Q4 results on 16 April 2013. TCS announces Q4 results on 17 April 2013. IndusInd Bank announces Q2 results on 18 April 2013. Wipro announces Q4 results on 19 April 2013. Cairn India announces Q4 results on 22 April 2013. HDFC Bank announces Q4 results on 23 April 2013. Axis Bank will announce its Q4 March 2013 results on 24 April 2013. ICICI Bank and Maruti Suzuki unveil Q4 results on 26 April 2013. HDFC announces Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Dr. Reddys Laboratories announces Q4 results on 14 May 2013.
On the macro front, the government will unveil industrial production data for February 2013 on Friday, 12 April 2013. Industrial production had risen 2.4% in January 2013, as against a contraction of 0.5% in December 2012.
The government will unveil data on the combined consumer price index for urban and rural India for March 2013 on 12 April 2013. Inflation based on the combined consumer price index for urban and rural India had edged up to 10.91% in February 2013, from 10.79% in January 2013.
The government will unveil data on the wholesale price index (WPI) for March 2013 on 15 April 2013. The annual rate of inflation, based on the monthly wholesale price index (WPI), edged up to 6.84% in February 2013 from 6.62% in January 2013.
The India Meteorological Department will issue its initial forecast of 2013 southwest monsoon in this month.
The Reserve Bank of India (RBI) Governor D. Subbarao on 6 April 2013 said that the high fiscal deficit is a problem because it exacerbates inflation and impedes monetary policy transmission. The RBI will announce the Monetary Policy Statement 2013-14 on 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. The key macroeconomic priorities are to raise the growth rate, restrain inflation pressures and mitigate the vulnerability of the external sector, RBI said at that time. Even as the policy stance emphasises addressing the growth risks, the headroom for further monetary easing remains quite limited, the RBI said. The RBI said it will continue to actively manage liquidity through various instruments, including open market operations (OMO), so as to ensure adequate flow of credit to productive sectors of the economy.
On the political front, the Congress led UPA government has been reduced to a minority government, with DMK removing support to the government in March this year citing differences on the issue of atrocities on Tamils in Sri Lanka. Earlier, the Trinamool Congress withdrew support to the government in September last year as it opposed economic reforms. The Samajwadi Party (SP) along with its regional rival in Uttar Pradesh Bahujan Samaj Party (BSP) provide outside support to the UPA government. SP has 22 MPs in Lok Sabha and BSP has 21 MPs.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
The second half of the Budget session of the Parliament begins on 22 April 2013. The government has lined up a number of key bills for consideration and passing during the Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008. The Budget Session of the Parliament ends on 10 May 2013.
Assembly elections will be held in Karnataka on 5 May 2013 and the counting of votes and results of the election will be declared on 8 May 2013.
Asian stocks rose on Wednesday pushing the benchmark regional equities gauge higher for a third day, as commodity producers advanced and a report showed China's imports jumped. Key benchmark indices in South Korea, Hong Kong, Japan and Taiwan rose by 0.18% to 0.85%. Key benchmark indices in China, Indonesia and Singapore shed by 0.32% to 0.41%.
China's imports rose by an above-forecast 14.1% in March while shipments abroad increased 10% from a year earlier, the customs administration said today in Beijing.
Trading in US index futures indicated that the Dow could fall 7 points at the opening bell on Wednesday, 10 April 2013. US stocks rose on Tuesday, lifting the Dow Jones Industrial Average to a record high, as Wall Street embraced the start of first-quarter earnings. The Federal Open Market Committee releases minutes of its March 19-20 meeting later in the global day today.
Powered by Capital Market - Live News
