Key benchmark extended gains to hit fresh intraday high in late trade as gains in European and Asian stocks boosted sentiment. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in almost five weeks. The Sensex was provisionally up 183.26 points or 0.96%, off close to 5 points from the day's high and up close to 210 points from the day's low. Index heavyweight Reliance Industries (RIL) edged higher in choppy trade. Another index heavyweight and cigarette major ITC scaled record high. The market breadth, indicating the overall health of the market, was positive. Indian stocks gained for the second straight day today, 22 April 2013.
Wipro slumped nearly 8% after the company said at the time of announcing Q4 results that it expects revenue from IT services business to remain flat on sequential basis in Q1 June 2013. Realty stocks gained as slowing wholesale price inflation has raised rate cut expectations. Reliance Anil Dhirubhai Ambani (ADA) Group shares surged. Reliance Communications (RCom) jumped on huge volumes. UltraTech Cement declined after weak Q4 results.
The market edged higher in early trade on firm Asian stocks. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in almost five weeks. The market pared gains after hitting fresh intraday high in morning trade. The market hovered in positive terrain in mid-morning trade. The market continued to hover in green in early afternoon trade. Key benchmark indices pared gains in afternoon trade. The Sensex once again regained strength in mid-afternoon trade. The Sensex surged to hit fresh intraday high in late trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 18 April 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 940.07 crore on Thursday, 18 April 2013, as per provisional data from the stock exchanges.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month April 2013 series to May 2013 series. The May 2013 F&O contracts expire on Thursday, 25 April 2013. The stock market remains shut on Wednesday, 24 April 2013, on account of Mahavir Jayanti.
As per provisional figures, the S&P BSE Sensex was up 183.26 points or 0.96% to 19,199.72. The index jumped 188.44 points at the day's high of 19,204.90 in late trade, its highest level since 19 March 2013. The index fell 26.68 points at the day's low of 18,989.78 in early trade.
The CNX Nifty was up 58.65 points or 1.01% to 5,841.75, as per provisional figures. The index hit a high of 5,844.85 in intraday trade, its highest level since 19 March 2013. The index hit a low of 5,789.80 in intraday trade.
The total turnover on BSE amounted to Rs 2168 crore, higher than Rs 2143.94 crore on Thursday, 18 April 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,390 shares advanced and 993 shares declined. A total of 138 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks advanced while rest of them declined.
Index heavyweight Reliance Industries (RIL) rose 1.16% to Rs 790.90. The scrip hit high of Rs 794.15 and a low of Rs 778.65. On the back of a surge in refining margins, RIL's net profit jumped 31.9% to Rs 5589 crore on 1.4% fall in turnover to Rs 86618 crore in Q4 March 2013 over Q4 March 2012. On sequential basis, RIL's net profit rose 1.58% to Rs 5589 crore on 10.06% decline in turnover to Rs 86618 crore in Q4 March 2013 over Q3 December 2012. The company reported Q4 March 2013 results on 16 April 2013.
At the time of announcement of the results, RIL said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the net 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
Index heavyweight and cigarette major ITC rose 0.54% to Rs 317. The stock hit record high of Rs 317.45 in intraday trade today, 22 April 2013. The stock hit low of Rs 312.55 in intraday trade today, 22 April 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.
Cadila Healthcare rose 0.52%. The company announced during market hours today, 22 April 2013 that the board of directors of the company and the board of directors of Zydus Animal Health (ZAHL), Liva Healthcare (LHL) and Zydus Pharmaceuticals (ZPL) at their respective meeting held on 22 April 2013 approved the amalgamation of ZAHL, LHL and ZPL with the company. In terms of the scheme, ZAHL, LHL and ZPL will be amalgamated with the company, followed by the dissolution without winding up of ZAHL, LHL and ZPL.
Coal India jumped 4.8% on reports the Cabinet Committee on Economic Affairs may meet today, 22 April 2013, to discuss coal price pooling. Coal price pooling is the averaging of prices of domestic and imported coal to get a uniform feedstock price. Finance minister P Chidambaram had earlier said the Cabinet will take a view on price pooling of coal to address the fuel supply issue. The CCEA in February 2013 had approved in-principle the price-pooling mechanism.
Reports suggest that a final decision on the issue is pending due to differences between the ministries of coal and power on how the impact of higher imported coal prices will be shared between Coal India and power companies. The Prime Minister's Office had earlier reportedly directed Coal India and Central Electricity Authority (CEA) to work on pooling coal prices to ensure 80% supplies to power plants.
Reliance Anil Dhirubhai Ambani (ADA) Group shares surged. Reliance Infrastructure, Reliance Broadcast Network, Reliance Capital, Reliance MediaWorks and Reliance Power gained by 3.32% to 5.15%.
Reliance Communications (RCom) surged 13.12%. The stock rose on massive volumes. On BSE, 1.73 crore shares changed hands on the counter, compared with average daily volume of 39.14 lakh shares in the past one quarter. The company before trading hours today, 22 April 2013, said that Samena Capital in a proposed consortium with certain other global PE funds is at an advanced stage of the process of due diligence and completion of definitive documents in relation to the acquisition of the company's global communications services business unit -- Reliance Globalcom. The intended time line for completion of the transaction is end May 2013. At this point, there can be no certainty that this will lead to a transaction, RCom said. A further announcement will be made in due course, if and when appropriate, the company said.
RCom also said that it has discontinued discussions with Batelco Group for selling its sake in Reliance Globalcom. RCom had earlier said in March 2013 that it was in discussions with Batelco Group with respect to Reliance Globalcom.
Wipro slumped 7.69% after the company said at the time of announcing Q4 results that it expects revenue from IT services business to remain flat on sequential basis in Q1 June 2013. Wipro expects a between 0.63% fall to a growth of 1.57% in revenue from IT services business at between $1.575 billion to $1.61 billion in Q1 June 2013 over Q4 March 2013. At a post-result conference call, Wipro's management indicated that Q1 for Wipro will be the traditionally weak quarter on account of softness from the India business. The management expects Q2 September 2013 to be better than Q1 June 2013 for the company.
Wipro's IT services revenue rose 0.5% to $1.585 billion in Q4 March 2013 over Q3 December 2012. On year on year basis, IT services revenue rose 3.2% to $1.585 billion in Q4 March 2013 over Q4 March 2012. Wipro announced the fourth quarter results on Friday, 19 April 2013, when the stock market was closed on account of Ram Navmi.
UltraTech Cement declined 3.13% on weak Q4 results. The company during market hours today, 22 April 2013, said that net profit fell 16.26% to Rs 726 crore on 1.03% rise in net sales to Rs 5389 crore in Q4 March 2013 over Q4 March 2013. The bottom line was adversely impacted by additional tax liability. Tax expenses for the quarter ended 31 March 2013 and year ended 31 March 2013 (FY 2013) includes additional charge for deferred tax liability of Rs 87 crore. This is due to increase in the rate of surcharge on income tax as proposed in the Finance Bill 2013.
The company's net profit rose 8.54% to Rs 2655 crore on 10.24% rise in net sales to Rs 20018 crore in the year ended 31 March 2013 (FY 2013) over FY2012.
With regard to future business outlook, UltraTech Cement said that the long term cement demand in India is likely to grow over 9% in line with GDP growth. The value drivers for growth will continue to be housing demand and infrastructure development. The cement major said that the company is committed to growth and towards this end, its board has approved the expansion of capacity at Aditya Cement Works in Rajasthan by 2.9 million metric tonnes, including the setting up of two grinding units. The expansion envisages a capital outlay of around Rs 2000 crore to be funded through a mix of internal accrual and borrowing. The additional facility is expected to be commissioned by March 2015.
UltraTech Cement's board of directors of the company has recommended a dividend of Rs 9 per share for the year ended 31 March 2013.
Realty stocks gained as slowing wholesale price inflation has raised rate cut expectations. Purchases of both residential and commercial property are largely driven by finance. D B Realty, DLF, HDIL, Unitech and Sobha Developers gained by 1.15% to 11.34%.
HDFC Bank rallied 4.11% ahead of its Q4 results tomorrow, 23 April 2013.
The focus of the market is on Q4 results. HDFC Bank announces Q4 results tomorrow, 23 April 2013. Axis Bank will announce its Q4 March 2013 results on 24 April 2013. Jindal Steel & Power declares its Q4 results on 25 April 2013. Hero MotoCorp, ICICI Bank and Maruti Suzuki unveil Q4 results on 26 April 2013. IDFC announces Q4 results on 1 May 2013.
Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on 3 May 2013. Grasim announces Q4 March 2013 results on 4 May 2013. HDFC unveils 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. Bajaj Auto announces Q4 results on 16 May 2013.
The Reserve Bank of India (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. Inflation based on the monthly wholesale price index (WPI) eased the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed.
The India Meteorological Department will issue its initial forecast of 2013 southwest monsoon in this month.
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.
Parliament reconvened for the second half of the Budget Session today, 22 April 2013. The session ends on 10 May 2013.
European stock markets edged higher on Monday, taking inspiration from a strong session in Asia, where markets rallied as the yen tumbled after a statement from the Group of 20 major economies. Key benchmark indices in UK, Germany and France were up by 0.48% to 0.81%.
Asian stocks rose for the second day in a row on Monday led by Japanese exporters as the yen slid to a four-year low against the US dollar after the Bank of Japan's stimulus policies were unopposed at a Group of 20 meeting. Key benchmark indices in Japan, South Korea, Hong Kong, Singapore and Taiwan rose by 0.14% to 1.89%. Key benchmark indices in China and Indonesia shed by 0.03% to 0.11%.
Bank of Japan (BOJ) Governor Haruhiko Kuroda emerged from the G-20 meeting saying he was emboldened to press ahead with the campaign to defeat deflation. The central bank holds a policy meeting this week after pledging on 4 April 2013 to double the monetary base in two years.
The G-20 leaders refrained from criticizing Japan for policies that recently sent the yen to multiyear lows, which was widely interpreted as the international community offering its support for Tokyo's monetary stimulus.
Trading in US index futures indicated that the Dow could gain 71 points at the opening bell on Monday, 22 April 2013. US stocks rose on Friday as earnings from Google and other companies lifted tech shares.
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