Key benchmark indices hovered in positive terrain in early afternoon trade. Firmness in most Asian stocks supported domestic bourses. The market breadth was negative. The barometer index, the S&P BSE Sensex, was up 23.94 points or 0.13%, up about 30 points from the day's low and off close to 130 points from the day's high. Index heavyweight and cigarette maker ITC hovered in red. Another index heavyweight Reliance Industries (RIL) edged higher in choppy trade. FMCG stocks declined. Bank pivotals were mixed.
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. Key benchmark indices edged higher after swinging alternately between positive and negative terrain in mid-morning trade. The Sensex hovered in the positive terrain in early afternoon 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 12:20 IST, the S&P BSE Sensex was up 23.94 points or 0.13% to 18,250.42. The index jumped 155.78 points at the day's high of 18,382.26 in early trade. The index fell 6.01 points at the day's low of 18,220.47 in mid-morning trade.
The CNX Nifty was up 5.30 points or 0.1% to 5,500.40. 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, was negative. On BSE, 1,139 shares fell and 775 shares rose. A total of 113 shares were unchanged.
Among the 30-share Sensex pack, 15 stocks rose while rest of them fell.
Index heavyweight Reliance Industries (RIL) rose 0.22% at Rs 778.05. 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 2.95%. RIL's telecom unit Reliance Jio Infocomm 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 0.89% to Rs 284.60. The scrip hit high of Rs 290.20 and a low of Rs 282 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.
Among FMCG stocks, Hindustan Unilever, Dabur India, Marico and Tata Global Beverages dropped by 0.25% to 0.5%.
Sterlite Industries (India) declined 1.14%. The company today announced its production results for the Fourth Quarter and Year ended 31 March 2013. The company reported a full year production growth across Copper, Lead and Silver and a record quarterly and full year production of mined zinc-lead and integrated silver at Zinc India.
With regard to the zine business in India, the integrated production of refined zinc was 181,000 tonnes in Q4, 8% higher than Q3. Full year production was 660,000 tonnes, in line with the annual plan. Sales of zinc metal-in-concentrate (MIC) were 61,000 tonnes, due to surplus concentrate in Q4. Integrated production of refined lead was 32,000 tonnes in Q4 and 107,000 tonnes for the full year, up 2% and 20% respectively.
Integrated production of silver was a record 100,000 tonnes in Q4 and 322,000 tonnes for the full year, up 20% and 36%, respectively, driven by the continued ramp-up of the SK mine and the Dariba lead smelter. During the year, Rampura Agucha underground mine and Kayad mine achieved the milestone of development ore production as per plan.
Copper cathode production was 86,000 tonnes in Q4, 7% higher than the corresponding prior period, and 8% higher at 353,000 tonnes in FY 2013. Mined metal production at Australia was 28% higher at 7,000 tonnes in Q4 and 15% higher at 26,000 tonnes for the full year.
The first 80MW unit of the 160MW captive power plant at Tuticorin has been stabilised during the quarter and is now operating at capacity, with plant load factor (PLF) of 81% during the quarter, Sterlite Industries said.
Giving update regarding Tuticorin Copper Smelter, Sterlite Industries said that the company is actively engaged with Tamil Nadu Pollution Control Board (TNPCB) and other relevant authorities to obtain permission to restart the operations. The company also said that it has filed an appeal with the National Green Tribunal against the closure order by TNPCB and for interim relief to operate the plant, and the matter is being heard.
With regard to aluminium production, Sterlite said that production at 245 ktpa Korba-II smelter was 62,000 tonnes in Q4 March 2013, in line with the corresponding prior quarter. The smelter operated above its rated capacity for the full year.
Bank pivotals were mixed. State-run State Bank of India (SBI) rose 0.19%. SBI on 20 March 2013 said that the Executive Committee of the Central Board of the Bank, in its Meeting held on 20 March 2013, approved the issuance and allotment of 1.29 crore equity shares at Rs 2,312.78 per share to the Government of India (GoI) by way of preferential allotment.
Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of Baroda and Punjab National Bank shed by 0.13% to 1.22%.
HDFC Bank was flat. HDFC Bank announces Q4 results on 23 April 2013.
ICICI Bank declined 0.14%. ICICI Bank announces Q4 results on 26 April 2013.
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. UltraTech Cement announces Q4 results on the same day.
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. IDFC announces Q4 results on 1 May 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 0.77%. Key benchmark indices in China, Indonesia and Singapore shed by 0.22% 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 a flat opening of US stocks 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.
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