Key benchmark indices trimmed intraday gains in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 123.46 points or 0.55%, off close to 90 points from the day's high and up almost equal points from the day's low. The market breadth, indicating the overall health of the market, was strong. Except BSE IT index and the BSE Capital Goods index all the other sectoral indices on BSE were in the green. Most pharma stocks edged higher.
The market surged in early trade. It held firm in morning trade. It continued to trade firm in mid-morning trade. It trimmed intraday gains in early afternoon trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 29 April 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 287.98 crore on Tuesday, 29 April 2014, as per provisional data from the stock exchanges.
The stock market remains closed tomorrow, 1 May 2014, on account of May Day.
At 12:20 IST, the S&P BSE Sensex was up 123.46 points or 0.55% to 22,589.67. The index rose 214.27 points at the day's high of 22,680.46 in mid-morning trade. The index gained 32.19 points at the day's low of 22,499.10 in early trade.
The CNX Nifty was up 40.75 points or 0.61% to 6,756. The index hit a high of 6,780.15 in intraday trade, its highest level since 28 April 2014. The index hit a low of 6,723.65 in intraday trade.
The BSE Mid-Cap index rose 46.95 points or 0.63% to 7,453.07, outperforming the Sensex. The BSE Small-Cap index rose 28.34 points or 0.37% to 7,644, underperforming the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,315 shares gained and 976 shares fell. A total of 134 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks gained and rest of them fell. GAIL (India) (up 2.65%), (up 2.27%) and Mahindra & Mahindra (M&M) (up 1.83%) edged higher from the Sensex pack.
Most pharma stocks edged higher. Aurobindo Pharma (up 0.92%), Dr. Reddy's Laboratories (up 2.23%), Lupin (up 0.63%) and Wockhardt (up 0.56%) gained. Sun Pharmaceutical Industries declined 1.15%.
Cipla gained 0.21%. With reference to the news item appearing in the business daily on 29 April 2014 titled, "Cipla faces fresh Rs. 105-cr penalty for overcharging," Cipla clarified that it has received demand notice of Rs 81 crores in respect of Ciplox eye drops. The company has been complying with the Government prices and therefore the demand notice is erroneous. The company clarified that no fresh demand notice has been received for Cipro injections.
The company has also received a demand notice of Rs 32 crore for the product Alerid D. This demand was raised by the Government despite the fact that this product was not manufactured at all by the Company during the period in question.
The company has challenged various price notifications including that of Ciplox eye drops and Alerid D tablets and the Supreme Court of India has already issued an interim order that no coercive steps can be taken against the Company to recover the money. The Company has also received legal advice that entire amounts demanded by the Government are not tenable and sustainable.
Bank of Baroda rose 1.93%. The bank said during market hours that it has decided to revise rates of interest on term deposits from 2 May 2014.
TVS Motor Company surged 5.2%, with the stock extending Tuesday's gain triggered by reporting turnaround Q4 results. The company reported net profit of Rs 52.12 crore in Q4 March 2014 as against net loss of Rs 32.72 crore in Q4 March 2013. Net sales rose 21% to Rs 2120.77 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced during trading hours on Tuesday, 29 April 2014, when the stock surged 6.1% to settle at Rs 92.25. Shares of TVS Motor Company gained 11.55% in two trading days from recent low of Rs 86.95 on 28 April 2014.
TVS Motor Company's net profit jumped 125.5% to Rs 261.63 crore on 11.1% growth in net sales to Rs 7857.70 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
On a consolidated basis, TVS Motor Company's net profit fell 5.8% to Rs 186.30 crore on 13.3% growth in net sales to Rs 8272.51 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
TVS Motor Company said that new launches and upgrades which the company introduced across the scooter and motorcycle segments augmented an increase in sales, aiding significant bottom line growth during FY 2014.
During the year, the company strengthened its presence in the scooter segment introducing TVS Jupiter, styled to enthuse the male customer. TVS Jupiter went on to become the most awarded scooters in India, the company said in a statement.
With regard to its future business outlook, TVS Motor said it will introduce its all new TVS StaR City+ and all new scooty: TVS Zest during the course of the year. Both products were showcased at this year's Auto expo. In addition to these new launches, the company has also planned upgrades across segments to strengthen the product portfolio. With improved product presence in various segments of the industry, TVS Motor Company expects to better its performance in the ongoing fiscal.
Kesoram Industries tumbled 10.16% after the company reported a net loss of Rs 198.60 crore in Q4 March 2014, higher than net loss of Rs 62.04 crore in Q4 March 2013. The Q4 result was announced after market hours on Tuesday, 29 April 2014.
Kesoram Industries' net sales declined 9.9% to Rs 1323.62 crore in Q4 March 2014 over Q4 March 2013.
Kesoram Industries reported a net loss of Rs 515.55 crore in the year ended 31 March 2014 (FY 2014), higher than net loss of Rs 329.23 crore in the year ended 31 March 2013 (FY 2013). Net sales declined 11% to Rs 5062.96 crore in FY 2014 over FY 2013.
EBITDA declined 7.22% to Rs 411 crore in FY 2014 over FY 2013. EBITDA margin edged up to 7.9% in FY 2014, from 7.6% in FY 2013.
Kesoram Industries' Tyre business steadily improved profitability over the year. EBITDA was at Rs 212 crore as compared to EBITDA of Rs 73 crore in the previous year. Operating profit margin (OPM) surged to 7% in FY 2014, from 2% in FY 2013.
Kesoram Industries said that the Cement business saw a challenging year. EBITDA declined to Rs 278 crore in FY 2014 from Rs 434 crore in FY 2013. This decline was driven by harsh market conditions, with volume offtake and pricing remaining weak, the company said. The Cement business operating parameters continued to compare favourably to competitive benchmarks, Kesoram Industries said in a statement.
The Rayon business made a marginal operating loss at EBITDA level of Rs 6 crore, the company said. Market conditions remained weak in terms of volume offtake and pricing, Kesoram Industries said in a statement. Looking ahead, the Tyre business is focusing at increased capacity utilization of its plants, by targeting increased market presence both domestically and internationally, besides further improvement in internal operations, Kesoram said.
The Cement business is poised for growth as the overall market conditions improve, Kesoram said. In the meantime, the focus is on improving its market presence by deeper presence in the markets and segments it services as well as by spreading to markets and customer segments beyond its current markets, Kesoram Industries said in a statement.
Kesoram said that the Rayon business is focusing at increasing its value added sales, especially in the fine denier rayon markets, as it completes its implementation of a project to produce rayon yarn using the continuous spinning yarn (CSY) process.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.345, compared with its close of 60.42 on Tuesday, 29 April 2014.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Asian stocks rose on Wednesday as investors weighed corporate earnings before Federal Reserve's report on monetary policy. Key benchmark indices in China, Japan, Singapore, and Indonesia rose 0.14% to 0.78%. Key benchmark indices in South Korea, Taiwan and Hong Kong were off 0.46% to 1.4%.
The Chinese Academy of Social Sciences (CASS), one of Beijing's top government think tanks, has revised its 2014 GDP growth forecast down to 7.4%, below the official 7.5% target, and says that growth could slow to as low as 7%, state media reported on Wednesday.
The Bank of Japan kept monetary policy steady on Wednesday and is set to lay out projections underscoring its conviction that inflation will head steadily towards its 2 percent target, suggesting no additional stimulus is on the near-term horizon. As widely expected, the BOJ maintained its pledge to increase base money, its key policy gauge, at an annual pace of 60 trillion to 70 trillion yen ($588-$686 billion).
Data today showed Japan's industrial output grew less than forecast in March, while factory output growth in South Korea missed estimates.
Trading in US index futures indicated that the Dow could fall 21 points at the opening bell on Wednesday, 30 April 2014. US stocks rose on Tuesday as Internet stocks rallied for the first time in five days and results from Merck & Co. to Sprint Corp. topped estimates before a Federal Reserve decision on monetary policy.
A report showed home prices in 20 US cities rose at a slower pace in the year ended February as the residential real-estate market cooled. The S&P/Case-Shiller index of property values increased 12.9% from February 2013, the smallest 12-month gain since August, after rising 13.2% in the year ended in January, a report from the group showed in New York.
The Conference Board's index of US consumer confidence decreased to 82.3 in April from 83.9 a month earlier, the New York-based private research group said.
A two-day meet of the Federal Open Market Committee (FOMC) on monetary policy review concludes today, 30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
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