Key benchmark indices gained for the third day in a row as gains in European and Asian stocks boosted sentiment. The barometer index, the S&P BSE Sensex, attained 14-week closing high. The Sensex settled below the psychological 20,000 mark after moving past that mark in late trade. The CNX Nifty attained its highest closing level in more than 14 weeks. The Sensex advanced 101.23 points or 0.51%, up about 140 points from the day's low and off close to 45 points from the day's high. Index heavyweight and cigarette major ITC hit record high on reports the Uttar Pradesh state government on Tuesday, 7 May 2013, slashed VAT on cigarette/cigar from existing 50% to 25%.
Key benchmark indices gained for the third straight day today, 8 May 2013. From a recent low of 19,575.64 on 3 May 2013, the Sensex has gained 414.54 points or 2.11% in three trading sessions. The Sensex has gained 486 points or 2.49% in this month so far (till 8 May 2013). The Sensex has gained 563.47 points or 2.9% in calendar 2013 so far (till 8 May 2013). From a 52-week high of 20,203.66 on 29 January 2013, the Sensex has declined 213.48 points or 1.05%. From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 4,241.20 points or 26.93%.
Coming back to today's trade, index heavyweight Reliance Industries (RIL) was slightly higher after seeing intraday volatility. Ranbaxy Laboratories declined after weak Q1 result. Lupin advanced to scale a record high after reporting strong Q4 results. HDFC surged to record high after declaring good Q4 result. The market breadth, indicating the overall health of the market, was positive.
Key benchmark indices edged higher amid initial volatility. The market retained positive zone in morning trade. The barometer index, the S&P BSE Sensex, hit its highest level in almost 14 weeks. The CNX Nifty hit 14-week high. Key benchmark indices pared gains in mid-morning trade. The Sensex cut losses after sliding to intraday low in early afternoon trade. The Sensex regained strength in afternoon trade. The market retained positive zone in mid-afternoon trade. The Sensex moved past the psychological 20,000 level in late trade.
The market sentiment was boosted by data showing that foreign institutional investors (FIIs) remained buyers of Indian stocks on Tuesday, 7 May 2013. FIIs bought shares worth a net Rs 1094.90 crore from the secondary equity markets on Tuesday, 7 May 2013, as per data from Securities & Exchange Board of India (Sebi).
The S&P BSE Sensex jumped 101.23 points or 0.51% to settle at 19,990.18, its highest closing level since 30 January 2013. The index jumped 148.32 points at the day's high of 20,037.27 in late trade. The index fell 37.73 points at the day's low of 19,851.22 in early afternoon trade.
The CNX Nifty advanced 25.75 points or 0.43% to 6,069.30, its highest closing level since 28 January 2013. The index hit a high of 6,083.55 in intraday trade. The index hit a low of 6,024.95 in intraday trade.
The BSE Mid-Cap index rose 0.47% and the BSE Small-Cap index gained 0.47%. Both these indices underperformed the Sensex.
The BSE FMCG index rose 1.43% and outperformed the Sensex.
The BSE Capital Goods index (down 0.65%), BSE Auto index (down 0.46%), BSE Metal index (down 0.36%), BSE Power index (down 0.31%), BSE PSU index (down 0.14%), BSE Teck index (down 0.08%), BSE Consumer Durables index (down 0.07%), BSE Realty index (down 0.03%), BSE IT index (down 0.01%), BSE HealthCare index (up 0.08%), BSE Oil & Gas index (up 0.11%) and BSE Bankex (up 0.11%), underperformed the Sensex.
The total turnover on BSE amounted to Rs 2043 crore, higher than Rs 1925 crore on Tuesday, 7 May 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 975 shares rose and 974 shares fell. A total of 84 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks declined while rest of them rose.
Index heavyweight Reliance Industries (RIL) rose 0.24% to Rs 829.10. The scrip hit high of Rs 833 and a low of Rs 822.
Index heavyweight and cigarette major ITC rose 2.27% to Rs 342.80. The stock hit record high of Rs 345 in intraday trade today, 8 May 2013. The scrip hit a low of Rs 333.90. The Uttar Pradesh state government on Tuesday, 7 May 2013, slashed VAT on cigarette/cigar from existing 50% to 25%. The state government had last year increased VAT on cigarette/cigar and tobacco products from 12.5% to 50%.
The Centre 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.
Other cigarette stocks also gained. Godfrey Phillips India jumped 20%. VST Industries rose 1.02%.
FMCG major Hindustan Unilever (HUL) rose 1.23% to Rs 587.70. The stock had hit record high of Rs 597 in intraday trade on 30 April 2013. The company's foreign parent Unilever PLC on 30 April 2013 announced open offer to acquire additional 48.70 crore shares, or 22.52% stake in Hindustan Unilever at Rs 600 per share. As on 31 March 2013, foreign promoters held 52.48% stake in HUL. After the open offer, holding of foreign promoters will rise to 75%.
HUL's net profit before exceptional items rose 18% to Rs 781 crore on 12.13% growth in total income from operations to Rs 6465.81 crore in Q4 March 2013 over Q4 March 2012. The company announced the Q4 results during market hours on 29 April 2013.
Among other FMCG stocks, Colgate-Palmolive (India) (up 0.17%), Nestle India (up 0.82%), Tata Global Beverages (up 1.21%) gained. Britannia Industries (down 1.21%), Godrej Consumer Products (down 0.34%) and Marico (down 2.99%) declined.
United Spirits fell 1.22% to Rs 2,318.55. The stock had hit a record high of Rs 2,383.95 in intraday trade on Tuesday, 7 May 2013.
HDFC advanced 3.85% to Rs 885.60 on good Q4 results. The stock hit record high of Rs 895 in intraday trade today, 8 May 2013. The company's net profit rose 17.27% to Rs 1555.21 crore on 16.08% growth in total income to Rs 5677.71 crore in Q4 March 2013 over Q4 March 2012. The company announced results during trading hours today, 8 May 2013.
HDFC's net profit rose 17.6% to Rs 4848.34 crore on 21.85% growth in total income to Rs 21147.62 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
The company's consolidated net profit rose 17.24% to Rs 2083.12 crore on 19.02% growth rise in total income to Rs 11042.88 crore in the Q4 March 2013 over Q4 March 2012. Consolidated net profit rose 21.55% to Rs 6639.72 crore on 18.75% growth in total income to Rs 35986.93 crore in the year ended March 2013 over the year ended March 2012.
Ranbaxy Laboratories lost 2.78% after consolidated net profit declined 89.91% to Rs 125.75 crore on 33.29% decline in total income to Rs 2562.96 crore in Q1 March 2013 over Q1 March 2012. The company announced Q1 results during trading hours today, 8 May 2013.
Ranbaxy Laboratories said that the profitability in Q1 March 2013 was lower than in Q1 March 2012 primarily because of the base effect. The revenue and profitability in Q1 March 2012 was boosted by contribution from exclusivity drug launches.
Ranbaxy said that its global sales rose 10% on a like-to-like basis in Q1 March 2013 over Q1 March 2012.
Commenting on the Q1 performance, Mr. Arun Sawhney, CEO & MD, Ranbaxy Laboratories said, "India and key emerging markets of East Europe plus CIS and Africa plus Middle East returned strong growth. The focus on differentiated products gained momentum during the quarter as we improved our market share in Absorica and received the rights to market Desevenlafaxine in US. We also continued to work towards optimizing overhead and other expenses".
Lupin gained 2.43% to Rs 730.65 after striking a record high of Rs 738.80. Lupin's consolidated net profit surged 162.2% to Rs 408.10 crore on 34.7% increase in net sales to Rs 2537.40 crore in Q4 March 2013 over Q4 March 2012. The company's consolidated net profit rose 51.5% to Rs 1314.20 crore on 35.9% growth in net sales to Rs 9461.60 crore in the year ended March 2013 over the year ended March 2012. The company announced results during trading hours today, 8 May 2013.
Commenting on the results, Dr. Kamal K. Sharma, Managing Director, Lupin, said, "We have had a great quarter and a remarkable year fuelled by strong business performance in the US and India as well as improved operational efficiencies. We continue on our high growth journey."
Auto stocks were mostly lower. Car maker Maruti Suzuki India declined 0.65%. The company during market hours on Tuesday, 7 May 2013, reported 7.58% fall in production to 1.05 lakh units in April 2013 over April 2012. The company's total sales fell 3.1% to 97,302 units in April 2013 over April 2012. The company's domestic sales rose 0.3% to 90,523 units in April 2013 over April 2012. Exports fell 33.3% to 6,779 units in April 2013 over April 2012. The company had announced its sales figures on 1 May 2013.
Mahindra & Mahindra (M&M) dropped 1.35%. M&M on 6 May 2013 announced the launch of the 'Bolero Maxi Truck Plus' (BMT Plus) -- a pick-up vehicle to cater to urban transportation needs. The vehicle has been priced at Rs 4.33 lakh (BS3) ex-showroom Thane and Rs 4.43 lakh (BS4), ex-showroom Mumbai excluding Octroi.
Tata Motors rose 0.72%. The company's total sales fell 15% to 51,160 in April 2013 over April 2012. Total domestic sales fell 17% to 47,595 in April 2013 over April 2012. Exports rose 28% to 3,565 during the period. The company announced the monthly sales data on 1 May 2013.
Two wheeler makers also declined. Bajaj Auto fell 0.59%. The company's total sales fell 10% to 3.44 lakh units in April 2013 over April 2012. Motorcycle sales fell 12% to 3 lakh units in April 2013 over April 2012. Commercial vehicle sales rose 10% to 43,351 units in April 2013 over April 2012. Exports fell 23% to 1.30 lakh units in April 2013 over April 2012. The company announced the sales figures on 2 May 2013.
Hero MotoCorp shed 1.78%. The company said on 1 May 2013 its total sales fell 9.5% to 4.99 lakh in April 2013 over April 2012.
Bank stocks were mostly in the red. ICICI Bank declined 0.49%. Axis Bank fell 0.91%. HDFC Bank gained 1.38%.
Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), dropped 0.12%.
Telecom stocks were mostly lower. Bharti Airtel dropped 1.82% 326.45. The stock had gained 4.22% in the preceding three trading sessions to settle at Rs 330.05 on Tuesday, 7 May 2013, from a recent low of Rs 316.70 on 2 May 2013. The company on 3 May 2013 announced that it has entered into a binding agreement with Qatar Foundation Endowment (QFE), under which Bharti will issue 19.98 crore of its new shares to QFE representing a shareholding of 5% in the company, post issuance of the new shares. As per the agreement, QFE will subscribe to 19.98 crore new shares of Bharti at a price of Rs 340 per share amounting to a total consideration of $1.26 billion (Rs 6796 crore). The investment will further strengthen the capital structure and provide further flexibility for the company to deliver on its growth strategy, Bharti said.
Reliance Communications fell 0.71% to Rs 111.75. The stock had hit a 52-week high of Rs 113.90 in intraday trade on Tuesday, 7 May 2013. The company has reportedly increased voice call prices on some of its plans by about a fifth and cut promotional offers and discounts on some others by up to 65% this week.
Tata Teleservices (Maharashtra) rose 0.33%. The stock extended Tuesday's 3.5% gain after the Securities and Exchange Board of India provided some relaxation to the offer for sale norms to help the company achieve minimum public shareholding.
Idea Cellular fell 2.04%. MTNL gained 1.08%.
Realty stocks edged lower. HDIL, Unitech and DLF shed by 0.01% to 0.94%.
Capital goods stocks fell on worries new order flows will be hit adversely in a slowing economy. Bhel, L&T and Siemens dropped by 0.31% to 0.97%.
ABB rose 2.19%. The company's net profit fell 10.66% to Rs 42.56 crore on 10% rise in total income to Rs 1971.40 crore in Q1 March 2013 over Q1 March 2012. ABB said improvements achieved through cost optimisation and operational excellence were eroded by low price realisation and tight market conditions. The company announced its Q1 results after market hours today, 8 May 2013.
ABB's order intake declined 8% to Rs 1531 crore in Q1 March 2013 from Rs 1663 crore in Q1 March 2012. The company said short cycle orders registered strong growth even as major project decisions were delayed with customers continuing to exercise caution on large investments. ABB said that the company continues to assess risk-return profile especially of large projects in the current market environment.
ABB said its order backlog continued to remain strong at Rs 8229 crore as on 31 March 2013, compared with order backlog of Rs 9028 crore as on 31 March 2012.
ABB said that the company continues to focus on cost and growth while addressing emerging opportunities such as renewables and energy efficiency by introducing technology and products to meet the changing market needs.
JSW Steel declined 1.31%. The company said after market hours today, 8 May 2013, that the High Court of Judicature at Bombay has sanctioned the composite scheme of amalgamation and arrangement amongst JSW ISPAT Steel and JSW Building Systems and JSW Steel Coated Products and JSW Steel and their respective shareholders and creditors on 3 May 2013.
IT stocks edged higher. Tata Consultancy Services (TCS) advanced 0.5%.
Infosys rose 0.08%. The company after market hours on Tuesday, 7 May 2013, announced that it is collaborating with SAP on development of mobile applications for the retail industry. These efforts are focused on giving consumer packaged goods (CPG) companies anytime, anywhere access to sales representatives and merchandisers, enabling them to capture information from the field to make them more competitive and agile, Infosys said.
Wipro rose 0.13%. The company after market hours on Tuesday, 7 May 2013, announced that it has signed an agreement to enter into a strategic partnership and take a minority position in Opera Solutions, LLC, a leading global Big Data science company. Wipro will invest $30 million in the company, which is privately held and headquartered in Jersey City, NJ.
Big Data represents an unprecedented opportunity for business value creation but many enterprises do not have the right technology or the science to access its power. Opera Solutions supplies these critical capabilities in a form that allows organizations to rapidly turn raw Big Data into strategic advantage, profit, and productivity.
"This strategic partnership with Opera Solutions will help us further extend our leadership in the Big Data analytics space, as it combines Opera Solutions' machine learning expertise, pre-discovered predictive Signals and algorithms with Wipro's proven domain and technology expertise combined with Global Delivery Model to create industry-specific Big Data analytics solutions. It also enables our customers to maximize the ROI of Big Data analytics implementation through faster adoption," said K.R Sanjiv, Senior Vice President and Global Head, Analytics and Information Management, Wipro.
HCL Technologies fell 0.32% to Rs 750.40. The stock had hit a record high of Rs 809 in intraday trade on 17 April 2013 after the company reported strong Q3 results.
Oracle Financial Services Software dropped after the company said its foreign promoter intents to pare stake in the company to comply with the minimum public shareholding requirements of the Listing Agreement. The stock was down 3.89%. The foreign promoter intends to reduce its stake in the company by 5.3%.
Oracle Financial Services Software after trading hours on Tuesday, 7 May 2013, said its consolidated net profit jumped 45% to Rs 281.30 crore on 2% growth in revenue to Rs 881.50 crore in Q4 March 2013 over Q4 March 2012. Consolidated net profit rose 18% to Rs 1075.10 crore on 10% growth in revenue to Rs 3474 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
Parliament was adjourned sine die on Wednesday, two days before scheduled end of the Budget session without passing crucial bills like the Food Security Bill and the Land Acquisition Bill. The session, one of the least productive on record, has been disrupted for two weeks over various issues.
Meanwhile, the Congress party got majority in Karnataka assembly elections and ousted the BJP to form the government in the state.
The stock exchanges have decided to conduct a special trading session for a short duration on Saturday, 11 May 2013, as the Bombay Stock Exchange (BSE) is testing its disaster recovery software. Trading will start at 11:15 IST and end at 12:45 IST.
The focus of the market is on Q4 results. Asian Paints and Punjab National Bank unveil Q4 results tomorrow, 9 May 2013. NTPC announces Q4 results on Friday, 10 May 2013. Bank of Baroda unveils Q4 results on 13 May 2013. Dr Reddy's Laboratories and Reliance Infrastructure unveil Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. ITC unveils Q4 results on 17 May 2013. Coal India unveils standalone FY 2013 results on 20 May 2013. Bharat Heavy Electricals (Bhel) announces Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013 BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
Indian services sector growth eased sharply during April as new orders came in at a much slower pace, a business survey showed on Monday, 6 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to 50.7 in April 2013 from 51.4 in March 2013. Services make up over 60% of India's economy.
The Central Statistics Office (CSO) will issue data on industrial production for March 2013 on Friday, 10 May 2013. Industrial production rose 0.6% in February 2013.
The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The central bank said that with upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from MSP increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
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.
European stock markets rose on Wednesday, extending the prior day's gains. Key benchmark indices in Germany, France and UK rose by 0.32% to 0.77%.
Asian markets climbed on Wednesday with the Nikkei rising to a fresh multi-year high following a strong overnight lead from the US and Europe. Key benchmark indices in Hong Kong, Singapore, Japan, South Korea, China, Taiwan and Indonesia were up by 0.11% to 1.27%.
China posted an $18.16 billion trade surplus in April after reporting an unexpected $884 million deficit in March. Exports rose by 14.7% in April from a year earlier, data from the General Administration of Customs showed today, 8 May 2013. This was faster than March's 10% rise. Imports rose 16.8% from a year earlier compared with a 14.1% rise in March.
China will unveil data on consumer and producer inflation figures for April 2013 tomorrow, 9 May 2013.
Trading in US index futures indicated that the Dow could gain 13 points at the opening bell on Wednesday, 8 May 2013. US stocks rose on Tuesday, with the Dow industrials closing above 15,000 for the first time, after Australia cut its refinancing rate and satellite-TV provider DirecTV and watch maker Fossil Inc. reported improved earnings.
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