Key benchmark indices bounced back after hitting fresh intraday low in afternoon trade. The S&P BSE Sensex and the CNX Nifty, both, recovered after turning negative for a brief period. The barometer index, the S&P BSE Sensex, was up 23.14 points or 0.13%, up about 40 points from the day's low and off close to 158 points from the day's high. The market breadth was positive. Index heavyweight and cigarette maker ITC retained positive zone. Another index heavyweight Reliance Industries (RIL) hovered in red.
Bharti Airtel dropped after the Supreme Court in its ruling today, 11 April 2013, said that Bharti Airtel cannot acquire new 3G customers outside its licensed zones pending final ruling on the dispute on 3G roaming. Shares of most pharma companies rose. Metal shares witnessed selling pressure.
The market pared gains after a firm start triggered by higher Asian stocks. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit one-week high. The market regained strength after paring initial gains to hit fresh intraday low in morning trade. The market retained positive zone in mid-morning trade. The Sensex continued to hover in positive zone in early afternoon trade. Key benchmark indices bounced back after hitting fresh intraday low in afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 40.22 crore on Wednesday, 10 April 2013, as per provisional data from the stock exchanges.
At 13:15 IST, the S&P BSE Sensex was up 23.14 points or 0.13% to 18,437.59. The index jumped 180.67 points at the day's high of 18,595.12 in early trade, its highest level since 4 April 2013. The index fell 16.51 points at the day's low of 18,397.94 in afternoon trade.
The CNX Nifty was flat at 5,558.65. The index hit a high of 5,610.60 in intraday trade, its highest level since 4 April 2013. The index hit a low of 5,542.85 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1074 shares rose and 1011 shares fell. A total of 115 shares were unchanged. The market breadth was strong earlier in the session.
Among the 30-share Sensex pack, 19 stocks declined while rest of them rose. HDFC (down 2%), M&M (down 1.52%), NTPC (down 1.51%), Tata Power (down 1.47%), Bajaj Auto (down 1.41%), GAIL (India) (down 1.4%), Dr Reddy's Laboratories (down 0.82%), Hero MotoCorp (down 0.5%), Bhel (down 0.39%) and Coal India (down 0.39%), edged lower from the Sensex pack.
Tata Motors (up 3.27%), ICICI Bank (up 3.03%), Infosys (up 2.57%), HDFC Bank (up 0.79%), Larsen & Toubro (up 0.71%), Wipro (up 0.30%), Hindustan Unilever (up 0.14%) and TCS (up 0.09%), edged higher from the Sensex pack.
Index heavyweight Reliance Industries (RIL) fell 1.96% at Rs 765.75. The scrip hit high of Rs 785.85 and a low of Rs 765 so far during the day. RIL announces Q4 results on Tuesday, 16 April 2013. Shares of Reliance Communications rose 3.01%. 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 rose 0.11% to Rs 284.85. The scrip hit high of Rs 289 and a low of Rs 284.10 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.
Bharti Airtel fell 2.50% after the Supreme Court in its ruling today, 11 April 2013, said that Bharti Airtel cannot acquire new 3G customers outside its licensed zones pending final order. The apex court has allowed Bharti to continue offering 3G services outside its licensed zones to existing customers, media report said. The apex court also directed the government not to take coercive steps on issue of penalty against Airtel.
The apex court was hearing the petition filed by Bharti Airtel challenging the Delhi High Court's order giving its nod to the Centre's decision holding the 3G roaming pact of the telecom major as illegal. The high court's division bench had passed the order on a plea by Reliance Communications challenging the single judge's order saying it has been incurring huge losses for the 3G on a daily basis and Bharti has been using it free of cost. The Department of Telecommunications (DoT) had on 15 March 2013 issued a notification restraining Bharti from providing 3G intra-circle roaming facilities in seven circles where it did not have the spectrum and also levied a penalty of Rs 350 crore (Rs 50 crore per circle) for allegedly violating the licence terms and conditions.
Shares of most pharma companies rose. Biocon (up 2.54%), Lupin (up 1.77%), Aurobindo Pharma (up 1.75%), Cipla (up 1.24%), Ranbaxy Laboratories (up 0.90%), Strides Arcolab (up 0.84%), GlaxoSmithKline Pharmaceuticals (up 0.83%), Sun Pharmaceutical Industries (up 0.81%), Divi's Laboratories (up 0.49%), Ipca Laboratories (up 0.37%) and Cadila Healthcare (up 0.13%), edged higher.
Metal shares witnessed selling pressure. JSW Steel (down 1.78%), Sail (down 1.48%), Hindalco Industries (down 1.32%), Tata Steel (down 1.11%) and Nalco (down 0.45%), edged lower.
Jindal Steel & Power declined 0.76%. The company said during market hours today, 11 April 2013, that it has on 5 April 2013, allotted 9.63% Unsecured Rated Redeemable Non-Convertible Debentures (NCDs) aggregating to Rs 300 crore to HDFC Bank.
Sesa Goa was down 0.24%, reversing Wednesday's 0.65% rise. The company during trading hours on Wednesday, 10 April 2013, announced its unaudited consolidated production release for the fourth quarter (Q4) and full year ended (FY 2013) 31 March 2013. The company said iron ore operations continue to be affected by suspension of mining in Goa and Karnataka. At Karnataka, the matter for reopening of Category A and B mines has been heard by the Honourable Supreme Court, and the order has been reserved and is expected to be announced soon. Earlier a few Category A mines had been allowed to resume operations by the Court.
The company added that regarding the suspension of mining in Goa, the Supreme Court is expected to fix the dates for initial hearings. In the meantime, the State Government and major miners including Sesa Goa, have filed their responses to the Central Empowered Committee report. Separately, the firm has filed an application to the Court seeking a stay on the suspension of mining and restrictions on ore transportation.
In Q4, production of pig iron and metallurgical coke were 75% and 48% higher at 104,000 tonnes and 94,000 tonnes, respectively, due to the new capacities commissioned in Q2 FY2013. At Liberia iron ore project, exploration activities are progressing well, and the company remains on track to deliver the first shipment by end FY2014, Sesa Goa said.
Sterlite Industries (India) rose 0.34%, extending Wednesday's 0.46% rise. The company during trading hours on Wednesday, 10 April 2013, 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.
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 begins this week. Infosys announces Q4 results tomorrow, 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 tomorrow, 12 April 2013. Industrial production is seen declining 1.5% in February 2013, as per the median estimate of a poll of economists carried out by Capital Market. 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 Monday, 15 April 2013. WPI inflation is projected to ease to 6.4% in March 2013 from 6.84% in February 2013, as per the median estimate of a poll of economists carried out by Capital Market. WPI inflation had 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.
European markets were mostly higher in early trade. Key benchmark indices in France and Germany were up by 0.02% to 0.07%. However, UK's FTSE 100 index was down 0.04%.
Asian stocks rose for a fourth day on Thursday, the longest winning streak in three months, as the yen neared 100 to the dollar after the Bank of Japan said it will maintain stimulus and loan growth in China topped estimates. Key benchmark indices in Hong Kong, Indonesia, South Korea, Japan, Singapore and Taiwan rose by 0.24% to 1.96%. China's Shanghai Composite fell 0.30%.
Bank of Japan Governor Haruhiko Kuroda said the central bank will take all steps necessary to meet a 2% inflation target even as he indicated policy adjustments are unlikely every month.
Australia's unemployment rate climbed in March to the highest level in more than three years as employers shed more workers than economists estimated, sending the local dollar and bond yields lower. The jobless rate rose to 5.6% from 5.4%, the statistics bureau said in Sydney today.
The Bank of Korea held borrowing costs unchanged for a sixth month, resisting pressure from the government for a reduction even as a sliding yen hurts the nation's exporters and North Korea threatens war. Governor Kim Choong Soo and his board kept the benchmark seven-day repurchase rate at 2.75%, the central bank said in a statement in Seoul today.
Trading in US index futures indicated that the Dow could gain 8 points at the opening bell on Thursday, 11 April 2013. US stocks climbed on Wednesday after minutes from the last Federal Reserve meeting quelled fears that the central bank will slow its monthly bond purchases. The Dow Jones Industrial Average and the S&P 500 both ended at record high levels.
The Fed minutes showed several Fed members advocated that the central bank start to taper its quantitative-easing program later in the year, with the goal of halting it altogether by year-end. Federal Reserve Chairman Ben S. Bernanke said on April 8 that economic conditions were far from where he would like them to be.
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