Volatility ruled the roost on the bourses today, 30 April 2014. Key benchmark indices settled lower after fluctuating between positive and negative terrain throughout the session. Investors remained wary ahead of the announcement of Federal Reserve's monetary policy review later in the global day today, 30 April 2014. The barometer index, the S&P BSE Sensex, fell 48.39 points or 0.22%, off close to 263 points from the day's high and up about 133 points from the day's low. The S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their lowest closing levels in two weeks. The market breadth, indicating the overall health of the market, was weak. The BSE Mid-Cap index and the BSE Small-Cap index, both, slipped over 1%. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets.
The Sensex has fallen 458.74 points, or 2.01% in four trading sessions from a recent high of 22,876.54 on 23 April 2014. The Sensex has risen 31.53 points or 0.14% in this month so far (till 30 April 2014). The Sensex has gained 1,247.12 points or 5.89% in calendar year 2014 so far (till 30 April 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 4,969.09 points or 28.48%. From a record high of 22,939.31 on 25 April 2014, the Sensex has fallen 521.51 points or 2.27%.
Metal stocks declined on reports 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 said that growth could slow to as low as 7%. Kotak Mahindra Bank declined on weak Q4 results.
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. Key benchmark indices sharply pared intraday gains in afternoon trade. It reversed gains and hit fresh intraday low in mid-afternoon trade. The 50-unit CNX Nifty hit two-week low. The Sensex hit lowest level in almost two weeks. A bout of volatility was witnessed in late trade as key benchmark indices turned positive after cutting entire intraday losses.
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.
The S&P BSE Sensex fell 48.39 points or 0.22% to 22,417.80, its lowest closing level since 16 April 2014. The index dropped 181.23 points at the day's low of 22,284.96 in mid-afternoon trade. The index rose 214.27 points at the day's high of 22,680.46 in mid-morning trade.
The CNX Nifty fell 18.85 points or 0.28% to 6,696.40, its lowest closing level since 16 April 2014. The index hit a low of 6,656.80 in intraday trade. The index hit a high of 6,780.15 in intraday trade, its highest level since 28 April 2014.
The BSE Mid-Cap index fell 82.66 points or 1.12% to 7,323.46. The BSE Small-Cap index dropped 125.79 points or 1.65% to 7,489.87. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,794 shares declined and 973 shares rose. A total of 154 shares were unchanged.
The total turnover on BSE amounted to Rs 3,109 crore, higher than Rs 2,865.42 crore on Tuesday, 29 April 2014.
The S&P BSE Auto index (up 0.37%), the S&P BSE FMCG index (up 0.16%) and the S&P BSE Oil & Gas index (up 0.03%), outperformed the Sensex.
The S&P BSE Realty index (down 5.3%), the S&P BSE Power index (down 2.08%), the S&P BSE Capital Goods index (down 2.03%), the S&P BSE Consumer Durables index (down 2%), the S&P BSE Metal index (down 1.15%), the S&P BSE Teck index (down 0.68%), the S&P BSE Bankex (down 0.45%), the S&P BSE Healthcare index (down 0.3%) and the S&P BSE IT index (down 0.27%), underperformed the Sensex.
Among the 30-share Sensex pack, 18 stocks declined and rest of them rose.
Metal stocks declined on reports 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 said that growth could slow to as low as 7%. China is the world's largest consumer of copper and aluminum. Sesa Sterlite (down 2.78%), Hindustan Zinc (down 2.32%), Steel Authority of India (SAIL) (down 2.04%), Hindalco Industries (down 1.82%), Bhushan Steel (down 0.51%) and NMDC (down 0.07%), edged lower. JSW Steel (up 1.96%) and Jindal Steel & Power (up 0.91%), edged higher.
Tata Steel dropped 1.21% to Rs 400.60. The company's new Coke Oven Battery 11 was commissioned on Tuesday, 29 April 2014 by Mr Cyrus P. Mistry, Tata Group Chairman at Jamshedpur. The company made announcement after market hours on Tuesday, 29 April 2014. With the commissioning of the Coke Oven Battery 11, the company will be self-sufficient in coke requirement for stable operation of Jamshedpur Steel works. Built at a production capacity of 0.7 million tonnes per annum, the Coke Oven Battery 11 operates with 88 ovens with stamp charge technology and is the largest coke oven complex at the Jamshedpur works. The state-of-the-art facility meets all environmental norms and consists of various features to take care of the plant and human safety.
Kotak Mahindra Bank (KMB) dropped 0.55% to Rs 803.25 on weak Q4 results. The bank's consolidated net profit fell 0.34% to Rs 663.31 crore 8.96% rise in total income to Rs 4782.17 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours. Net profit fell 6.65% to Rs 407.18 crore on 0.74% decline in total income to Rs 2552.96 crore in Q4 March 2014 over Q4 March 2013.
KMB's ratio of gross non-performing assets (NPAs) to gross advances stood at 1.63% as on 31 March 2014 as against 1.68% as on 31 December 2013 and 1.27% as on 31 March 2013. The ratio of net NPAs to net advances stood at 0.88% as on 31 March 2014 as against 0.92% as on 31 December 2013 and 0.55% as on 31 March 2012.
KMB's consolidated net profit rose 12.63% to Rs 2464.99 crore on 8.31% growth in total income to Rs 17235.63 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Net interest margin (NIM) edged up to 4.97%, from 4.7% in FY 2013.
The bank's loans rose 8.2% to Rs 71693 crore as on 31 March 2014, from Rs 66258 crore as on 31 March 2013.
Oriental Bank of Commerce lost 0.78% to Rs 247.55 after net profit rose 0.77% to Rs 310.32 crore on 13.19% growth in total income to Rs 5655.36 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced during trading hours today, 30 April 2014.
Oriental Bank of Commerce (OBC)'s ratio of gross non-performing assets (NPAs) to gross advances stood at 3.99% as on 31 March 2014 as against 3.87% as on 31 December 2013 and 3.21% as on 31 March 2013. The ratio of net NPAs to net advances stood at 2.82% as on 31 March 2014 as against 2.91% as on 31 December 2013 and 2.27% as on 31 March 2013.
OBC's provisions and contingencies rose 22.65% to Rs 930.71 crore in Q4 March 2014 over Q4 March 2013. Provision coverage ratio as on 31 March 2014 works out to 60.15%.
OBC's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 11.01% as on 31 March 2014 as against 11% as on 31 December 2013.
OBC's net profit declined 14.19% to Rs 1139.41 crore on 8.28% growth in total income to Rs 20962.75 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Shriram Transport Finance Company fell 1.84% to Rs 733.45 after consolidated net profit declined 17.9% to Rs 314.89 crore on 12.7% growth in total income to Rs 2150.04 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after trading hours on Tuesday, 29 April 2014.
Shriram Transport Finance Company's consolidated net profit declined 7.2% to Rs 1357.94 crore on 20.9% growth in total income to Rs 8480.19 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
Total assets under management rose to Rs 56520.50 crore as on 31 March 2014 as compared to Rs 52717.18 crore as on 31 March 2013.
Marico rose 0.32% to Rs 203.65 after consolidated profit after tax rose 8% to Rs 89 crore on 17% growth in revenue from operations to Rs 1072 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced during trading hours today, 30 April 2014.
Marico's consolidated profit after tax (PAT) rose 19% to Rs 485 crore on 10% growth in revenue from operations to Rs 4687 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
The PAT growth for Q4 March 2014 and FY 2014 excludes exceptional items accounted in Q4 March 2013.
During FY 2014, the company has received 900% dividend from Marico Bangladesh (MBL) on which income tax charge of Rs 34.5 crore has been accounted in the books. This has increased the effective tax rate (ETR) for the year. Profit growth excluding this tax impact is 31% for the quarter and 26% for FY 2014, Marico said in a statement.
Marico said that volume growth in both India and International business has shown recovery in Q4 March 2014. Excluding the exceptional items accounted in Q4 March 2013, FMCG profits grew by 8%. The reported profits (not comparable and including exceptional items) de-grew by about 20% during Q4 March 2014, primarily due to credits in Q4 March 2013 on account of exceptional items and tax on dividend from MBL in FY 2014, Marico said in a statement.
The business has shown steady recovery in volume growths with sustained improvements in market shares, Marico said. In India, due to the weak demand environment, the growth rates of various segments have come down, it added. This has impacted the company's growth rates as well. However, the company has demonstrated strong brand equity by continuing to grow faster than the market, Marico said in a statement.
The Kaya Business, earlier a part of Marico, has been demerged effective October 17, 2013, with April 01, 2013 as the Appointed Date. Pursuant to the De-merger Scheme, the transfer of Kaya Business to Marico Kaya Enterprises (MaKE) has been accounted by the company by recording the transfer of the relevant assets and liabilities of the Kaya Business at their book values as of the appointed date. The excess of book value of assets over liabilities has been adjusted against Securities Premium Reserve, Marico said.
In accordance with the scheme, as on the record date i.e. November 05, 2013, every shareholder holding 50 fully paid equity shares with a face value of Re 1 each in Marico has been allotted 1 fully paid equity share with a face value of Rs 10 each of MaKE. Further, MaKE has submitted the Listing application along with the Information Memorandum to the Stock Exchanges on March 14, 2014. It has obtained the necessary relaxation from SEBI and will now proceed with other statutory formalities required for Listing, Marico said.
Accordingly, the financial results of the Kaya Business do not form part of the unaudited financial results for Q4 March 2014 and Q3 December 2013 and audited financial results for FY 2014.
However, the results of all other previous periods/year include the results of Kaya Business and accordingly, to that extent, are not comparable with the results for Q4 March 2014, Marico said.
BASF India lost 4.67% to Rs 747.50 after net profit dropped 50.8% to Rs 6.56 crore on 30.3% growth in net sales to Rs 1067.32 crore in Q4 March 2014 over Q4 March 2013. The company announced the results after trading hours on Tuesday, 29 April 2014.
BASF India's net profit rose 12.1% to Rs 127.87 crore on 12.4% growth in net sales to Rs 4418.69 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
BASF India said that the directors have recommended a dividend of Rs 4 per share for the financial year ended 31 March 2014, subject to the approval of the shareholders at the forthcoming 70th Annual General Meeting of the company to be held on 27 August 2014. The dividend, if approved, by the shareholders will absorb Rs 17.31 crore and will be payable on or before 1 September 2014. The dividend distribution tax would amount to Rs 2.94 crore and the same will be borne by the company, BASF India said.
United Spirits declined 0.47% to Rs 2,770.25. The company said during market hours that the Board of Directors of the company at is meeting held on today, 30 April 2014, have appointed Mr. Anand Kripalu (Mr. Kripalu) as the Chief Executive Officer of the company with effect from 1 May 2014. Mr. Kripalu is presently the Chief Executive Officer - Designate of the company, with effect from 1 October 2013. as announced in the company's press release dated 24 September 2013.
Alstom T&D India jumped 3.60% to Rs 274.75 after net profit rose 17.3% to Rs 62.24 crore on 19.3% growth in total income to Rs 1313.09 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Tuesday, 29 April 2014.
Swaraj Engines rose 6.06% to Rs 721.50 after net profit rose 25.3% to Rs 17.46 crore on 39.7% growth in net sales to Rs 158.27 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Tuesday, 29 April 2014.
Cipla fell 0.79% to Rs 398. 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.
TVS Motor Company rose 3.25% to Rs 95.25, 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.
Wockhardt clocked a highest turnover of Rs 162.22 crore on BSE. Infosys (Rs 80.74 crore), Adani Enterprises (Rs 65.15 crore), Tech Mahindra (Rs 60.53 crore) and State Bank of India (Rs 59.65 crore), were the other turnover toppers on BSE in that order.
Unitech reported highest volumes of 95.63 lakh shares on BSE. Future Consumer Enterprise (85.04 lakh shares), Indian Overseas Bank (53.11 lakh shares), Future Retail (42.92 lakh shares) and Suzlon Energy (40.61 lakh shares), were the other volume toppers on BSE in that order.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.3125, 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.
European shares lost ground on Wednesday after sharp gains in the previous session as tensions in Ukraine continued to dog sentiment. Key benchmark indices in France and Germany were down by 0.01% to 0.41%. UK's FTSE 100 rose 0.10%.
Euro zone inflation nudged above 2009 lows in April but fell short of market predictions despite increased spending at Easter, leaving the threat of deflation hanging over the European Central Bank. Annual consumer inflation in the 18 countries sharing the euro was 0.7% in April, climbing from March's 0.5%, which was the lowest since late 2009, the EU's statistics office Eurostat said on Wednesday.
German unemployment fell more than twice as much as forecast in April in a sign that Europe's largest economy will continue to lead the recovery in the euro area. The number of people out of work decreased for a fifth month, dropping a seasonally-adjusted 25,000 to 2.872 million, the Nuremberg-based Federal Labor Agency said today.
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 0.11% to 0.83%. Key benchmark indices in South Korea, Taiwan and Hong Kong were off 0.15% to 1.42%.
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 9 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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