Key benchmark indices hovered in positive terrain in afternoon trade. The barometer index, the S&P BSE Sensex, was up 16.21 points, or 0.08%, up 59.41 points from the day's low and off 57.86 points from the day's high. The market breadth, indicating the overall health of the market, was positive. In the foreign exchange market, the rupee edged higher against the dollar.
Union Bank of India rose after strong Q3 results. Motherson Sumi Systems jumped after robust Q3 earnings.
Key benchmark indices alternately swung between positive and negative zone in early trade. Key benchmark indices extended intraday gains and hit fresh intraday high in morning trade. A bout of volatility was witnessed as key benchmark indices reversed intraday gains in mid-morning trade. Key benchmark indices saw divergent trend in early afternoon trade after alternately swinging between positive and negative zone. The barometer index, the S&P BSE Sensex, was slightly lower. The 50-unit CNX Nifty was marginally higher. Key benchmark indices hovered in positive terrain in afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 430.20 crore on Thursday, 30 January 2014, as per provisional data from the stock exchanges.
At 13:21 IST, the S&P BSE Sensex was up 16.21 points or 0.08% to 20,514.46. The index gained 74.07 points at the day's high of 20,572.32 in morning trade, its highest level since 29 January 2014. The index fell 43.20 points at the day's low of 20,455.05 in mid-morning trade.
The CNX Nifty was up 11.55 points or 0.19% to 6,085.25. The index hit a high of 6,097.30 in intraday trade, its highest level since 29 January 2014. The index hit a low of 6,068.35 in intraday trade.
The BSE Mid-Cap was up 63.61 points or 1.02% at 6,274.98. The BSE Small-Cap index was up 69.65 points or 1.13% to 6,251.45. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1361 shares gained and 941 shares fell. A total of 130 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks gained and rest of them declined. M&M (up 2.54%), Tata Steel (up 1.86%), TCS (up 1.84%), Tata Power (up 1.67%), Bharti Airtel (up 1.65%), GAIL (India) (up 1.49%), Sesa Sterlite (up 1.15%) and State Bank of India (up 1%), edged higher from the Sensex pack.
Tata Motors (down 3.25%), HDFC (down 2.21%), Hero MotoCorp (down 1.99%), NTPC (down 1.87%), Bhel (down 1.47%), Bajaj Auto (down 1.4%), Sun Pharmaceutical Industries (down 0.95%), HDFC Bank (down 0.7%) and Cipla (down 0.37%), edged lower from the Sensex pack.
Union Bank of India rose 1.59% to Rs 105.40 after net profit rose 15.39% to Rs 348.94 crore on 18.26% increase in total income to Rs 8230.17 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours today, 31 January 2014.
The bank's ratio of net non-performing assets to net advances stood at 2.26% as on 31 December 2013, compared with 2.15% as on 30 September 2013 and 1.70% as on 31 December 2012.
The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 3.85% as on 31 December 2013, compared with 3.64% as on 30 September 2013 and 3.36% as on 31 December 2012.
Provisions and contingencies fell 28.80% to Rs 610.40 crore in 31 December 2013 over 31 December 2012. The provisioning coverage ratio as on 31 December 2013 stood at 59.97%.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 10.12% as on 31 December 2013, compared with 9.72% as on 30 September 2013.
Government of India holds 60.13% stake in Union Bank of India. (as on 31 December 2013).
Oriental Bank of Commerce rose 1.25% to Rs 169.75. The bank's net profit fell 31.28% to Rs 224.30 crore on 4.49% increase in total income to Rs 5063.98 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours today, 31 January 2014.
Motherson Sumi Systems jumped 8.46% to Rs 195.60 after net profit surged 142.28% to Rs 249.60 crore on 19.89% increase in total income to Rs 7993.50 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours today, 31 January 2014.
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) rose 48.92% to Rs 761 crore in Q3 December 2013 over Q3 December 2012. EBITDA margin stood at 9.6% in Q3 December 2013, higher than 7.8% in Q3 December 2012.
The company said it continues to get additional orders and expand its operations globally in line with requirements of its customers. The company had net debt of Rs 4436 crore as on 31 December 2013.
Commenting on company's performance, Mr. V.C. Sehgal, Chairman, Motherson Sumi Systems said, "The company has delivered its best ever results in revenues as well as operating margins for a quarter. This is exceptional performance both in domestic and overseas businesses in current market conditions. SMR and SMP continue to grow and deliver improved results. We are moving forward in the right direction towards achieving our targets. We thank all our stakeholders for their unstinted support to us at all times."
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.53, compared with its close of 62.56/57 /11 on Thursday, 30 January 2014.
Foreign direct investment (FDI) inflows into India rose 54.8 percent in November to $1.64 billion compared with $1.06 billion a year ago, a government statement said on Friday.
Total FDI inflows in the first eight months for the current fiscal year that ends in March were down 2 percent from a year earlier at $15.46 billion, compared with $15.85 billion during the year-ago period, the statement said.
India's consumer inflation should ease in the next two months, and will fall to 8% by the end of the year, Reserve Bank of India (RBI) Governor Raghuram Rajan said in an interview with TV news channel on Thursday, 30 January 2014. The consumer price index eased to a three-month low of 9.87% in December 2013. "There is some disinflation in the system. What was 9.87 is going to come down further next month, and probably a little further into March," Rajan said. "We are setting rates at a level that we think is consistent with that disinflation for us to get some bite and for the inflation in the system to come down to about 8% at the end of the year," Rajan said.
In an interview to another TV news channel, Rajan on Thursday disputed criticism that lower interest rates would lead to higher growth because banks are fixing interest rates based on inflation. "This notion somehow that the RBI is standing in the way of growth is complete nonsense, Rajan said. "Today what is standing in the way of growth is inflation. Unless we bring inflation down, growth with lower interest rates has no hope," Rajan said.
Rajan warned of a breakdown in global policy coordination after the Federal Reserve further cut stimulus, noting how emerging markets helped pull the global economy out of crisis starting in late 2008. "Industrial countries have to play a part in restoring that, and they can't at this point wash their hands off and say we'll do what we need to and you do the adjustment. Fortunately the IMF has stopped giving this as its mantra, but you hear from the industrial countries: We'll do what we have to do, the markets will adjust and you can decide what you want to do," Rajan said. "We need better cooperation and unfortunately that's not been forthcoming so far," he said.
Rajan said developed countries might not like adjustments emerging markets take to cope with the outflows, without elaborating on specific measures.
Most Asian markets were closed today, 31 January 2014, for the Lunar new year holiday. In Japan, the Nikkei 225 index lost 0.62% to settle at 14,914.53. China's markets remain closed until 7 February 2014 for the Lunar New Year holiday, while Hong Kong is shut until 4 February 2014.
Japanese industrial production rose 1.1% on month in December, the Ministry of Economy, Trade and Industry said Friday, on a demand rush ahead of an April sales tax increase. It also comes after a 0.1% decline in November. The increase in industrial output was due to a rise in production in the general purpose and production machinery sectors as well as electronic parts and devices.
Meanwhile, Japanese consumer prices rose at their sharpest rate in over five years in December, the government said Friday. Consumer prices also increased for the whole of 2013, the first annual increase in five years, according to data released by the Ministry of Internal Affairs and Communications.
The core consumer price index, which excludes volatile fresh-food costs, climbed 1.3% from a year earlier in December, faster than a 1.2% gain in the previous month, according to data released by the Ministry of Internal Affairs and Communications. It was the biggest rise since a 1.9% increase in October 2008. The core index for 2013 increased 0.4% after a 0.1% fall the previous year. The CPI including fresh food prices rose 1.6% on year in December.
Employment data released Friday also suggested a strongly recovering economy. The jobless rate fell to 3.7% of the work force, down from 4% in November and the lowest rate since December 2007. The closely watched ratio of available jobs to applicants also improved to 1.03, meaning 103 jobs were on offer for every 100 job seekers.
Trading in US index futures indicated that the Dow could fall 15 points at the opening bell on Friday, 31 January 2014. US stocks rebounded on Thursday, 30 January 2014, as investors welcomed data showing a robust pace of growth in the economy in the final quarter of last year, while upbeat earnings from Facebook Inc. boosted the tech sector.
The US economy expanded rapidly in the final quarter of 2013, the Commerce Department said on Thursday, 30 January 2014, as consumers shrugged off a government shutdown, with the data fueling hopes of even faster growth ahead. The gross domestic product grew at 3.2% annual pace.
The number of people who sought US unemployment benefits near the end of January rose to the highest level in six weeks, but it's unclear whether the increase is the residue of holiday-season distortions or reflects a deterioration in the labor market. The less-volatile, four-week average rose by a fraction.
Meanwhile, Janet Yellen will be sworn in as chairwoman of the Federal Reserve on Monday, 3 February 2014, the US central bank announced Thursday, 30 January 2014. Yellen will replace outgoing Fed Chairman Ben Bernanke, whose term as chairman expires on Friday, 31 January 2014.
The Federal Reserve on 29 January 2014 took another gradual step toward exiting its controversial bond-buying program. As expected, the Fed decided, after a monetary policy review, to reduce the pace of monthly asset purchases to $65 billion, from January's $75 billion. The Fed also signaled that it is likely to keep reducing its purchases in the coming months, citing a pickup in economic activity and improvement in the labor market.
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