Key benchmark indices further pared gains to hit fresh intraday low in morning trade. The S&P BSE Sensex was up 124.92 points or 0.63%, off about 160 points from the day's high and up close to 15 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Infosys jumped after the company retained its guidance of 6% to 10% growth in revenue in dollar terms for the year ending 31 March 2014 (FY 2014) after announcing Q1 June 2013 results before trading hours. Metal stocks declined. Realty stocks also edged lower. Shares of car major Maruti Suzuki India extended initial losses. Reliance Industries extended initial gain.
The 50-unit CNX Nifty fell below the psychological 6,000 level soon after a firm opening took the index above that level at the onset of the trading session. The market further pared gains to hit fresh intraday low in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 638.26 crore on Thursday, 11 July 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 124.92 points or 0.63% to 19,800.98. The index jumped 286.72 points at the day's high of 19,962.78 in early trade, its highest level since 31 May 2013. The index gained 109.53 points at the day's low of 19,785.59 in morning trade.
The CNX Nifty was up 17.10 points or 0.29% to 5,952.20. The index hit a high of 6,018.40 in intraday trade, its highest level since 31 May 2013. The index hit a low of 5,951.15 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 579 shares rose and 527 shares fell. A total of 56 shares were unchanged.
From the 30-share Sensex pack, 19 stocks fell and rest of them rose. Wipro (up 2.3%), TCS (up 2.16%) and Bharti Airtel (up 0.75%), edged higher.
Infosys jumped 10.91% to Rs 2802.50, with the stock paring gains after jumping 14.96% at the day's high of Rs 2905 in initial trade. The company retained its guidance of 6% to 10% growth in revenue in dollar terms for the year ending 31 March 2014 (FY 2014) at the time of announcing Q1 June 2013 result before market hours today, 12 July 2013. The company has raised the guidance in rupee terms due to a steep depreciation of the rupee against the dollar. The company has forecast 13% to 17% growth in revenue in rupee terms for FY 2014, higher than its earlier guidance of 6% to 10% growth which the company had given at the time of announcement of Q4 March 2013 results.
The company's consolidated net profit declined 0.8% to Rs 2374 crore on 7.8% growth in revenue to Rs 11267 crore in Q1 June 2013 over Q4 March 2013. The results are as per International Financial Reporting Standards (IFRS).
Infosys Chief Financial Officer (CFO) Rajiv Bansal said that the company has announced compensation increases for FY 2014 effective July which will affect the company's profit margins in the future quarters. Infosys CEO and Managing Director S. D. Shibulal said that the management is cautiously optimistic about rest of the year. Despite facing an uncertain macro environment, changing regulatory regime and a volatile currency environment, the company has done well in Q1 June 2013, he said.
Infosys and its subsidiaries added 66 clients in Q1 June 2013. There was a gross addition of 10,138 employees and net addition of 575 employees by Infosys and its subsidiaries in Q1.
Infosys' liquid assets including cash and cash equivalents, available-for-sale financial assets, and government bonds were at Rs 24078 crore as on 30 June 2013, higher than Rs 23958 crore as on 31 March 2013.
Shares of car major Maruti Suzuki India fell 2.24%, with the stock extending initial losses. The company on 8 July 2013 said its production fell 25.36% to 61,668 vehicles in June 2013 over June 2012. Earlier, the company had reported 12.6% fall in total sales to 84,455 units in June 2013 over June 2012. The company's domestic sales fell 7.8% to 77,002 units in June 2013 over June 2012. Exports declined 43% to 7,453 units in June 2013 over June 2012. The company announced the monthly sales data on 1 July 2013.
Metal stocks declined. Sail (down 1.35%), Hindalco Industries (down 0.78%), Sterlite Industries (down 0.68%), JSW Steel (down 0.48%), Jindal Steel & Power (down 0.23%), and Tata Steel (down 0.21%), edged lower.
Realty stocks also edged lower. D B Realty (down 0.47%), Sobha Developers (down 0.79%), DLF (down 1.01%) and HDIL (down 1.75%), edged lower.
Reliance Industries (RIL) rose 0.9%, with the stock extending initial gain. The Cabinet Committee on Economic Affairs (CCEA) on 27 June 2013 approved new gas pricing formula from 1 April 2014. The price of gas as per the formula is likely to be about $8.4 mmBtu as opposed to $4.2 mmBtu currently.
On macro front, industrial production is seen rising a tepid 1.5% in May 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production had risen 2.3% in April 2013. The government unveils industrial production data for May 2013 today, 12 July 2013.
Inflation based on the combined consumer price index (CPI) of urban and rural India is projected at 9.3% in June 2013, same as in May 2013, as per the median estimate of a poll of economists carried out by Capital Market. CPI inflation had eased to 9.31% in May 2013 from 9.39% in April 2013. The government unveils CPI data for June 2013 today, 12 July 2013.
Most Asian stocks fell on Friday, 12 July 2013, as investors turned cautious ahead of Chinese data, including second-quarter growth and June industrial production which is scheduled for release next week. Key benchmark indices in China, Hong Kong, Singapore and South Korea fell by 0.39% to 0.65%. Key benchmark indices in Indonesia and Japan rose by 0.14% to 0.36%. Taiwan's Taiwan Weighted was flat.
China's finance minister on Friday, 12 July 2013, said economic growth will likely average 7% this year. The projection is lower than the government's target of 7.5%.
Singapore's economy grew at the fastest pace in more than two years last quarter as services strengthened and manufacturing rebounded, reducing pressure on the central bank to ease monetary policy. Gross domestic product rose an annualized 15.2% in the three months through June from the previous quarter, when it grew 1.8%, the Trade Ministry said in a statement today.
Trading in US index futures indicated that the Dow could fall 17 points at the opening bell on Friday, 12 July 2013. US stocks surged to an all-time high on Thursday after the Federal Reserve chairman Ben Bernanke said on Wednesday, 10 July 2013, the central bank will keep supporting the economy. In a speech late Wednesday after US markets had closed, Fed chairman Ben Bernanke said the economy needs the central bank's easy-money policy for the foreseeable future. The US economy needs help because unemployment is high, he said.
On Wednesday, 10 June 2013, the minutes of the Fed's June meeting showed that while "several members judged that a reduction in asset purchases would likely soon be warranted," many want to see further improvement in the labor market before reducing the central bank's $85 billion-a-month quantitative easing program. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to keep interest rates low and stimulate economic growth. At a press conference following the June 18-19 meeting, Bernanke said the central bank could start reducing its $85 billion in monthly bond purchases later this year if the economy continues to improve in line with its forecasts.
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