Slide in index heavyweights in Reliance Industries (RIL) and Infosys pulled key benchmark indices lower in what was a choppy trading session. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, reversed direction after an initial rally took both these benchmark indices to their highest level in more than 35 months. The market breadth, indicating the overall health of the market, was negative. The Sensex was provisionally down 60.51 points or 0.29%, up 50.67 points from the day's low and off 332.05 points from the day's high. In the foreign exchange market, the rupee edged higher against the dollar in choppy trade on speculation the Federal Reserve will maintain stimulus for the US economy in the foreseeable future after disappointing US job data for September 2013 released early this week.
Reliance Industries (RIL) edged lower in choppy trade. IT stocks declined as the rupee edged higher against the dollar. Infosys reversed direction after hitting 52-week high. GAIL (India) rose after the company announced after market hours on Wednesday, 23 October 2013, that it has signed a Gas Cooperation Agreement (GCA) for natural gas infrastructure and city gas distribution with the Department of Industries, Government of Bihar. Coal India dropped. Index heavyweight ITC edged higher in volatile trade.
Kotak Mahindra Bank edged lower in volatile trade after the private sector bank reported Q2 results during trading hours. NHPC slumped after the company's board of directors set share buyback price close to the ruling market price.
Key benchmark indices reversed small initial fall. Key benchmark indices extended initial gains in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than 35 months. Key benchmark indices pared gains in mid-morning trade. Key benchmark indices further pared gains in early afternoon trade. The Sensex gave away a lion's part of strong initial gains in afternoon trade as index heavyweight Reliance Industries (RIL) reversed intraday gains and as another index heavyweight ITC pared intraday gains. Volatility ruled the roost as the key benchmark indices regained positive zone after reversing intraday gains in mid-afternoon trade. Intraday volatility continued in late trade.
As per provisional closing, the S&P BSE Sensex was down 60.51 points or 0.29% to 20,707.37. The index jumped 271.54 points at the day's high of 21,039.42 in morning trade, its highest level since 8 November 2010. The index fell 111.18 points at the day's low of 20,656.70 in late trade.
The CNX Nifty was down 14.95 points or 0.24% to 6,163.40. The index hit a high of 6,252.45 in intraday trade, its highest level since 11 November 2010. The index hit a low of 6,142.95 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,292 shares declined and 1,197 shares gained. A total of 184 shares were unchanged.
The total turnover on BSE amounted to Rs 2064 crore, lower than Rs 2227 crore on Wednesday, 23 October 2013.
Index heavyweight Reliance Industries shed 1.42% at Rs 883.10. The stock hit high of Rs 909.95 and low of Rs 881.
GAIL (India) rose 1.59%. The company announced after market hours on Wednesday, 23 October 2013, that in a landmark development to expand the natural gas footprint in eastern India, GAIL (India) has signed a Gas Cooperation Agreement (GCA) for natural gas infrastructure and city gas distribution with the Department of Industries, Government of Bihar. Under the provisions of the GCA, GAIL and the Bihar Government will evaluate the feasibility for cooperation for the development of the use of eco-friendly fuel, especially natural gas, in the state as well as development of natural gas distribution and city gas infrastructure in identified urban areas and cities after obtaining due authorization from the Petroleum and Natural Gas Regulatory Board (PNGRB).
GAIL (India) is constructing the 2,050 km. Haldia-Jagdishpur pipeline from transmission and distribution of natural gas, of which about 621 km. will pass through 14 districts of Bihar. The mainline of the Haldia Jagdishpur will cover 4 districts of Bihar such as Kaimur, Rohtas, Aurangabad, Gaya and 10 districts for the spur lines. GAIL will explore the possibility of City Gas Distribution in major towns of Bihar along this pipeline route.
GAIL (India) and Industries Department, Bihar will also work towards promotion of joint venture for City Gas Distribution projects for domestic, commercial, industrial and transport sectors with the participation of GAIL or its wholly owned subsidiary GAIL Gas Limited and concerned departments of the Bihar Government, other state agencies or private players.
As per the GCA, Natural Gas Demand Assessment and Preliminary Techno Economic Feasibility Study will be undertaken for evaluation of medium and long term gas demand potential for the state for industrial, commercial, transport and residential sectors; assessment of pipeline infrastructure and associated facilities required for supply of natural gas including optical fibre network; and evaluation of natural gas supply options to Bihar on a long-term and competitive basis.
NHPC slumped 5.36% to Rs 18.55. The company during market hours today, 24 October 2013, said its board of directors has unanimously approved the buy-back of upto 10% of fully paid up equity shares at Rs 19.25 per share payable in cash for an aggregate amount of Rs 2367.89 crore through tender offer.
IT stocks declined as the rupee edged higher against the dollar. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports.
Wipro lost 4.41%, with the stock extending Wednesday's 4.41% fall triggered by the company's dollar revenue growth from IT services in Q2 September 2013 lagging that of its peer companies. Wipro announced the result after market hours on Tuesday, 22 October 2013.
Wipro reported 28% growth in consolidated net profit from continuing operations to Rs 1932 crore on 19% growth in revenue from continuing operations at Rs 10992 crore in Q2 September 2013 over Q2 September 2012. The results are as per International Financial Reporting Standards. Wipro said non-GAAP adjusted net profit from continuing operations jumped 29% to Rs 1932 crore in Q2 September 2013 over Q2 September 2012.
Non-GAAP constant currency IT services revenue in dollar terms grew 3.2% sequentially and 7.9% year-on-year (YoY), Wipro said. IT services revenue stood at $1.6311 billion in Q2 September 2013, a sequential increase of 2.7% and YoY increase of 5.9%. IT services revenues in rupee terms stood at Rs 10068 crore in Q2 September 2013, an increase of 20% YoY. IT services Earnings Before Interest and Tax (EBIT) was Rs 2264 crore in Q2 September 2013, an increase of 31% YoY.
Wipro expects 1.77% to 3.61% growth in revenues from IT services business at $1.66 billion to $1.69 billion in Q3 December 2013 over Q2 September 2013.
TCS lost 2.45% to Rs 2,010. The stock had hit record high of Rs 2,258.05 in intraday trade on 15 October 2013. The company after market hours on Monday, 21 October 2013, announced that it has been selected by Bombardier Transportation, a global leader in rail transportation technology, to manage its IT infrastructure for newly commissioned data centers. The multi-year, multi-million deal is the first that TCS has signed with a rail-transportation technology provider, TCS said.
Infosys shed 0.55% to Rs 3,306. The stock was volatile. The scrip rose as much as 1.44% at the day's high of Rs 3,372, also its 52-week high. The stock fell as much as 0.72% at day's low of Rs 3,292.10.
HCL Technologies fell 4.73% to Rs 1,053. The stock had hit record high of Rs 1,177 in intraday trade on 15 October 2013. The company last week said its consolidated net profit as per US accounting standards jumped 18.7% to Rs 1416 crore on 14% growth in revenue to Rs 7961 crore in Q1 September 2013 over Q4 June 2013.
Tech Mahindra shed 0.89% to Rs 1,536. The stock had hit a 52-week high of Rs 1,594 in intraday trade on 17 October 2013.
Coal India dropped 3.72% to Rs 278.30. The stock was volatile. The stock rose as much as 0.33% at the day's high of Rs 290. The scrip fell as much as 3.82% at the day's low of Rs 278.
Kotak Mahindra Bank edged lower in volatile trade after the private sector bank reported Q2 results during trading hours. The stock was down 0.68% at Rs 704. The stock hit high of Rs 729.40 and low of Rs 703.50. The bank's net profit jumped 26% to Rs 353 crore in Q2 September 2013 over Q2 September 2012. Net interest income surged 22% to Rs 924 crore in Q2 September 2013 over Q2 September 2012. The bank announced Q2 result during market hours.
Advances as on 30 September 2013 were up 11% year-on-year (YoY) to Rs 50609 crore (Rs 45443 crore as on 30 September 2012). Kotak Mahindra Bank said that it is cautiously slowing down on CECV lending. Without considering CECV, the growth in advances was 18% YoY in Q2 September 2013.
Restructured loans considered standard stood at 0.09% of net advances as on 30 September 2013.
Savings deposits as on 30 September 2013 grew by 42% to Rs 8385 crore from Rs 5926 crore as on 30 September 2012. CASA ratio was 29% as on 30 September 2013.
The Reserve Bank of India vide circular dated 23 August 2013, as a one-time measure permitted banks to transfer SLR securities from AFS/HFT category to HTM category at valuation rates prevailing on 15 July 2013. Kotak Mahindra Bank said it has not transferred any SLR security from AFS/HFT category to HTM category. The bank's total HTM securities as on 30 September 2013 were 11.4% of NDTL. As permitted under the same RBI circular, the Kotak Mahindra Bank has opted to distribute the net depreciation on the AFS and HFT portfolios in equal installments during the financial year 2013-14. Accordingly, of the net depreciation of Rs 264 crore as on 30 September 2013, the bank has recognised depreciation of Rs 88 crore till 30 September 2013.
Kotak Mahindra Bank's consolidated net profit rose 16% to Rs 583 crore in Q2 September 2013 over Q2 September 2012. Consolidated advances rose 11% to Rs 68226 crore as on 30 September 2013 from Rs 61255 crore as on 30 September 2012. Without considering CECV, the growth in advances was 16% YoY. Total assets managed/advised by the Kotak Mahindra Group stood at Rs 60450 crore as on 30 September 2013, compared with Rs 55850 crore as on 30 September 2012.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade on speculation the Federal Reserve will maintain stimulus for the US economy in the foreseeable future after disappointing US job data for September 2013 released early this week. The partially convertible rupee was hovering at 61.395, compared with its close of 61.59/60 on Wednesday, 23 October 2013.
Indian government bond prices rose on speculation the Federal Reserve will maintain stimulus for the US economy in the foreseeable future after disappointing US job data for September 2013 released early this week. The yield on the 10-year benchmark government security 7.16% GS 2023 was hovering at 8.5834%, lower than its close of 8.6315% on Wednesday, 23 October 2013. Bond yield and bond prices are inversely related.
European stocks edged higher on Thursday, 24 October 2013, as investors welcomed upbeat manufacturing data from China. Key benchmark indices in France, Germany and UK were up 0.08% to 0.44%.
Private-sector activity in the euro zone grew at a slower pace in October, suggesting that the currency area's return to economic growth remains tentative as it enters the final quarter of the year. Distilling the results of its survey of 5,000 companies in the services and manufacturing sectors, data firm Markit said its Composite Purchasing Managers Index fell to 51.5 from 52.2 in September. A level below 50 indicates activity is declining, while a reading above that mark shows that activity is increasing. The PMI for the services sector fell to 50.9 from 52.2, while the PMI for manufacturing rose to 51.3 from 51.1.
Asian markets edged higher on Thursday, 24 October 2013, after a measure of Chinese factory hit a seven-month high. Key benchmark indices in South Korea, Singapore, Indonesia, Japan and Taiwan rose by 0.24% to 1.06%. Key benchmark indices in Hong Kong and China fell 0.71% to 0.86%.
The initial October reading for China's manufacturing activity came out at 50.9, compared to a final reading of 50.2 in September. The score was a seven-month high, above the 50 mark that separates expansion and contraction in factory activity. The preliminary reading was among the first economic data on the region's largest economy in the third quarter, coming less than a week after figures showed that Chinese growth picked up from a dip in the second quarter.
Trading in US index futures indicated that the Dow could advance 42 points at the opening bell on Thursday, 24 October 2013. US stocks closed lower on Wednesday with the S&P 500 falling from a record, as investors assessed mixed results from US corporations, including a disappointment from equipment-maker Caterpillar Inc.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
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