High volatility was witnessed during the last one hour or so of trade, with key benchmark indices slipping into the red once again after moving into positive terrain from negative terrain in mid-afternoon trade. The S&P BSE Sensex was provisionally down 54.70 points or 0.28%, up about 50 points from the day's low and off close to 155 points from the day's high. The market breadth, indicating the overall health of the market, was weak. GAIL (India) extended Thursday's post-result losses. FMCG major Hindustan Unilever (HUL) fell on weak Q1 result.
Indian stocks fell for the third straight session today, 26 July 2013.
Sterlite Industries (India) declined in choppy trade after announcing weak Q1 results. Many other metal stocks declined after Sterlite Industries' weak Q1 result. Tata Steel hit 52-week low. Punjab National Bank (PNB) tumbled as first quarter results showed that the bank's sticky loans rose. Bank of India also declined as first quarter results showed that the bank's sticky loans rose. Index heavyweight and cigarette major ITC recovered from Thursday's post-result slide.
A bout of volatility was witnessed in early trade with key benchmark indices trimming gains after a firm start. Volatility ruled the roost as the barometer index, the S&P BSE Sensex, trimmed gains after regaining positive zone after slipping into the red in morning trade. The Sensex regained positive terrain after slipping into the red to hit fresh intraday low in mid-morning trade. The market trimmed losses after hitting fresh intraday low in early afternoon trade. Key benchmark indices hit their fresh intraday lows in afternoon trade. Key benchmark indices trimmed losses after hitting fresh intraday lows in mid-afternoon trade. The S&P BSE Sensex hit over one-week low. The 50-unit CNX Nifty hit lowest level in more than two weeks. High volatility was witnessed during the last one hour or so of trade, with key benchmark indices slipping into the red once again after moving into positive terrain from negative terrain in mid-afternoon trade.
As per provisional figures, the S&P BSE Sensex was down 54.70 points or 0.28% to 19,750.05. The index fell 105 points at the day's low of 19,699.76 in mid-afternoon trade, its lowest level since 16 July 2013. The index jumped 102.69 points at the day's high of 19,907.45 in early trade.
The CNX Nifty was down 17.50 points or 0.3% to 5,890, as per provisional figures. The index hit a low of 5,869.50 in intraday trade, its lowest level since 10 July 2013. The index hit a high of 5,944.50 in intraday trade.
The total turnover on BSE amounted to Rs 2095 crore, lower than Rs 2144.18 crore on Thursday, 25 July 2013.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,396 shares fell and 864 shares rose. A total of 175 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks fell and rest of them rose. Coal India (down 3.96%), Tata Motors (down 3.42%) and Maruti Suzuki India (down 2.77%), edged lower.
GAIL (India) fell 3.16%, with the stock extending Thursday's losses triggered by weak Q1 result. The company's net profit declined 28.17% to Rs 808.17 crore on 16.01% growth in total income to Rs 12957.48 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced during market hours on Thursday, 25 July 2013. In terms of the decision of the Government of India to share the under recoveries on LPG, the company provided provisional discount of Rs 700 crore in Q1 June 2013, which was equal to the amount provided in Q1 June 2012.
Index heavyweight and cigarette major ITC rose 3.04%. The stock had fallen 4.57% on Thursday after reporting Q1 result. ITC's net profit rose 18.05% to Rs 1891.33 crore on 10.5% increase in income from operations to Rs 7410.70 crore in Q1 June 2013 over Q1 June 2012. The result was announced during trading hours on Thursday, 25 July 2013.
FMCG major Hindustan Unilever (HUL) fell 3.51% to Rs 662.40 after net profit declined 23.43% to Rs 1019.25 crore on 5.88% increase in total income to Rs 6985.79 crore in Q1 June 2013 over Q1 June 2012. The result was announced during trading hours today, 26 July 2013. Ahead of the results, the HUL stock had lost 3.21% to Rs 686.50 on Thursday, 25 July 2013.
The company said that fall in net profit was due to significant exceptional income generated in Q1 June 2012 from the sale of properties. Profit after tax but before exceptional items rose 4% to Rs 885 crore in Q1 June 2013 over Q1 June 2012. HUL stated that while commodity costs were relatively benign, PFAD prices started to move up and the rupee sharply depreciated towards the end of the quarter. Competitive intensity remained at high levels and the company continued to invest in its brands. Advertisement and promotion (A&P) cost increased by Rs 70 crore on year on year basin in Q1 June 2013.
Commenting on the first quarter results, Harish Manwani, Chairman, HUL, said: "In a difficult market environment, we have again delivered competitive growth and strong margin expansion through a sustained focus on innovation, in-market execution and robust cost management. While there are near term concerns particularly around slowing market growth, we are confident of the medium to long term growth prospect of the FMCG sector and our strategy of driving growth and profitability through innovation and operational excellence."
Meanwhile, HUL announced key changes in the board of directors and management committee. Mr. Nitin Paranjpe, currently the Managing Director and Chief Executive Officer of the company will be joining the Unilever Leadership Executive (ULE), taking on the role of President, Home Care with effect from 1 October 2013. Mr. Sanjiv Mehta, currently Chairman, North Africa & Middle East (NAME), Unilever, has been appointed as the Managing Director and Chief Executive Officer of the company in place of Mr. Nitin Paranjpe with effect from 1 October 2013. Mr. Sanjiv Mehta will also be responsible for South Asia cluster which includes India, Pakistan, Sri Lanka, Bangladesh and Nepal.
Punjab National Bank tumbled 5.32% on a surge in the bank's gross non-performing assets in Q1 June 2013. The bank's net profit rose 2.38% to Rs 1275.32 crore on 0.21% rise in total income to Rs 11746.59 crore in Q1 June 2013 over Q1 June 2012. The bank announced Q1 result during market hours today, 26 July 2013.
PNB's gross non-performing assets surged to Rs 15090.63 crore as on 30 June 2013, from Rs 13465.79 crore as on 31 March 2013 and sharply higher than Rs 9988.17 crore as 30 June 2012. The ratio of gross non-performing assets (NPA) to gross advances edged up to 4.84% as on 30 June 2013, from 4.27% as on 31 March 2013 and 3.34% as on 30 June 2012. The ratio of net NPA to net advances edged up to 2.98% as on 30 June 2013, from 2.35% as on 31 March 2013 and 1.68% as on 30 June 2012.
Bank of India lost 4.84% as the bank's gross non-performing assets surged to Rs 9413.45 crore as on 30 June 2013, from Rs 8765.25 crore as on 31 March 2013 and sharply higher than Rs 6751.81 crore as on 30 June 2012. Bank of India's (BoI) ratio of gross non-performing assets (NPAs) to gross advances increased to 3.04% as on 30 June 2013, from 2.99% as on 31 March 2013 and 2.56% as on 30 June 2012. The ratio of net NPA to net advances increased to Rs 2.1% as on 30 June 2013, from 2.06% as on 31 March 2013 and 1.69% as on 30 June 2012.
BoI's net profit rose 8.64% to Rs 964.18 crore on 13.7% growth in total income to Rs 9722.01 crore in Q1 June 2013 over Q1 June 2012. The state-run bank announced its first quarter results during trading hours today, 26 July 2013.
BoI's borrowings rose 22.04% to Rs 32953.61 crore as on 30 June 2013, from Rs 27001.67 crore as on 30 June 2012. Deposits grew 22.41% year on year to Rs 414964.19 crore as on 30 June 2013.
The bank's capital adequacy ratio (CAR) as per Basel II norms stood at Rs 10.66% as on 30 June 2013, as against 11.02% as on 31 March 2013 and 11.42% as on 30 June 2012. CAR as per Basel III norms stood at 10.36% as on 30 June 2013.
BoI's provisions and contingencies surged 47.08% to Rs 694.56 crore in Q1 June 2013 over Q1 June 2012.
Sterlite Industries (India) fell 3.86% to Rs 77.20, after the company reported weak Q1 results after trading hours on Thursday, 25 July 2013. The stock was volatile. The scrip hit high of Rs 82.20 and low Rs 74. Sterlite Industries' consolidated net profit fell 22% to Rs 934 crore on 23% fall net sales/income from operations to Rs 8190 crore in Q1 June 2013 over Q1 June 2012.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) declined 7% to Rs 2173 crore in Q1 June 2013 over Q1 June 2012. Sterlite said revenue and EBITDA were lower primarily on account of a temporary closure of the Tuticorin copper smelter, which was partially offset by higher power generation at the Jharsuguda 2,400 megawatts (MW) power plant and higher production at Zinc India. Temporary closure of the Tuticorin smelter negatively impacted EBITDA by Rs. 180 crore. The profit after tax (PAT) and basic EPS were impacted by lower EBITDA and higher losses at associate. Higher interest cost on borrowings was largely offset by increase in other income.
Following the Tamil Nadu Pollution Control Board's (TNPCB) order for closure of the Tuticorin copper smelter on 29 March 2013, the National Green Tribunal (NGT) after hearing company's appeal, passed an interim order on 31 May 2013, conditionally allowing the smelter to recommence operations, and the plant restarted on 23 June 2013. On July 15, 2013, an expert committee confirmed that the plant meets the prescribed standards, and the NGT in its order of even date took cognizance of the findings of the expert committee and observed that the company "is neither an existing pollutant nor is a threat of future pollution (not violating prescribed standards) resulting in health hazards", and declined to modify its earlier interim order dated 31 May 2013, enabling the plant to continue to operate. Separately, the TNPCB has also filed an appeal against the NGT's earlier interim order before the Supreme Court.
Meanwhile, Sterlite Industries (India) said after market hours on Thursday, 25 July 2013 that the proposed merger of the company with Sesa Goa and Vedanta Group consolidation and simplification has received the approval of the High Court of Madras on 25 July 2013 and the High Court of Bombay at Goa on 3 April 2013. One of the shareholders of Sesa Goa has filed an appeal against the order passed dated 3 April 2013 by the High Court of Bombay at Goa before the Division Bench. The hearing before the Division Bench has been completed and the order of the Division Bench is awaited.
Commenting on the company's first quarter results, Mr. Anil Agarwal, Chairman, Sterlite Industries said: "We achieved a strong performance in the first quarter of FY 2014, and delivered production growth at our world-class zinc, silver, power and aluminium businesses despite global economic volatility and lower metal prices. We remain focused on completing the merger with Sesa Goa, and ramping up production from our growth projects across our world class asset portfolio."
Shares of Sesa Goa fell 4.97%.
Many other metal stocks declined after Sterlite Industries' weak Q1 result. Hindalco Industries slumped 7.68%.
Shares of most steel makers fell. JSW Steel (down 2.3%), and Jindal Steel & Power (down 3.43%), edged lower. Sail rose 1.04% in volatile trade.
Tata Steel fell 1.73% to Rs 219.20. The stock hit 52-week low of Rs 216.85 in intraday trade today, 26 July 2013.
Dish TV India lost 8.24% after the company reported net loss of Rs 30.37 crore in Q1 June 2013, lower than net loss of Rs 32.32 crore in Q1 June 2012. Dish TV India's (Dish) total income rose 12.14% to Rs 606.11 crore in Q1 June 2013 over Q1 June 2012. Operating revenue rose 11.2% to Rs 578.40 crore. The Q1 result was announced during trading hours today, 26 July 2013.
Bharat Electronics lost 3.29% after net profit declined 11.07% to Rs 17.18 crore on 5.25% growth in total income to Rs 1010.58 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced during trading hours today, 26 July 2013.
Tata Coffee advanced 5.51% after consolidated net profit surged 43.29% to Rs 40.38 crore on 1.14% rose in total income from operations (net) to Rs 418.46 crore in Q1 June 2013 over Q1 June 2012. Tata Coffee declared Q1 June 2013 results during market hours today, 26 July 2013.
European shares edged were mostly in the red on Friday, 26 July 2013. Key benchmark indices in UK and Germany were off 0.26% to 0.53%. France's CAC 40 rose 0.47%.
UK's second-quarter gross domestic product expanded 0.6% compared with the first quarter and 1.4% higher than a year ago, data released on Thursday, 25 July 2013, showed.
Asian stocks were mostly in red on Friday, 26 July 2013. Key benchmark indices in Indonesia, China, Taiwan and Japan fell by 0.17% to 2.97%. Key benchmark indices in South Korea, Hong Kong and Singapore rose by 0.01% to 0.31%.
Japan consumer prices rose the most since 2008 in June, an early sign that the world's third-biggest economy may be starting to shake off 15 years of deflation. Consumer prices excluding fresh food increased 0.4% in June from a year earlier, the statistics bureau said in a statement today.
Trading in US index futures indicated that the Dow could fall 30 points at the opening bell on Friday, 26 July 2013. US stocks rose on Thursday, 25 July 2013, after better-than-expected results from Facebook Inc. Economic data released on Thursday, 25 July 2013, was mixed. Durable-goods orders in June came in better than expected, but weekly jobless claims posted a modest increase of 7,000 claims to 343,000.
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