Key benchmark indices were up marginally in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 24.09 points or 0.12%, up close to 15 points from the day's low and off about 75 points from the day's high. Index heavyweight and cigarette major ITC edged higher in choppy trade. Index heavyweight Reliance Industries (RIL) edged lower in volatile trade. The market breadth, indicating the overall health of the market, was positive.
Auto stocks were mixed. Maruti Suzuki extended Friday's rally triggered by strong Q4 results. Two-wheeler major Hero MotoCorp jumped after the company said at the time of announcement of the Q4 results that it has hiked prices of its products, ranging from Rs 500 to Rs 1,500 with immediate effect. Metal stocks were also mixed. Jindal Steel and Power (JSPL) extended Friday's losses triggered by weak Q4 results.
The market edged higher amid initial volatility. The market pared gains after hitting fresh intraday high in morning trade. The market further trimmed intraday gains in mid-morning trade. The Sensex was up marginally in early afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 224.75 crore on Friday, 26 April 2013, as per provisional data from the stock exchanges.
At 12:20 IST, the S&P BSE Sensex was up 24.09 points or 0.12% to 19,310.81. The index rose 101.18 points at the day's high of 19,387.90 in morning trade, its highest level since 25 April 2013. The index gained 7.88 points at the day's low of 19,294.60 in early trade.
The CNX Nifty was up 4.60 points or 0.08% to 5,876.05. The index hit a high of 5,899.15 in intraday trade. The index hit a low of 5,871.15 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 996 shares advanced and 883 shares declined. A total of 120 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks rose while rest of them fell.
Index heavyweight Reliance Industries (RIL) declined 0.4% to Rs 789.95. The scrip hit high of Rs 799 and a low of Rs 789 so far during the day. At the time of announcement of its Q4 results, RIL in mid-April 2013 said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the net 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
Index heavyweight and cigarette major ITC rose 0.49% to Rs 320.50. The scrip hit high of Rs 321 and a low of Rs 316.70 so far during the day. The stock had hit record high of Rs 323.85 in intraday trade on 25 April 2013. West Bengal chief minister Mamata Banerjee on 24 April 2013, announced a 10% hike in the value-added tax (VAT) on cigarettes to 25% from 15% to raise money for a relief fund for those depositors who have lost money in the Saradha chit fund scam.
Earlier, the Centre 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.
Auto stocks were mixed. Maruti Suzuki India rose 1.03%, with the stock extending Friday's 5.26% gains triggered by strong Q4 results. Maruti's net profit, excluding the effect of the merger of Suzuki Powertrain India (SPIL), jumped 79.8% to Rs 1147.50 crore on 9.4% rise in net sales to Rs 12566.60 crore in Q4 March 2013 over Q4 March 2012. Suzuki Powertrain India was merged with the company during the year ended 31 March 2013 (FY 2013) and the effect of the merger was given in the books of accounts in Q4 March 2013. Maruti announced the results during market hours on Friday, 26 April 2013.
Maruti said that the increase in net profit during the quarter was on account of higher sales of new models such as Ertiga, DZire and Swift, cost reduction and localization efforts and the benefit of a favourable exchange rate.
Tata Motors declined 0.66%. Tata Motors' subsidiary Tata Technologies which is a leading global provider of engineering services and manufacturing enterprise IT, on Friday, 26 April 2013, announced that it has signed definitive agreements for the acquisition of US-based Cambric Corporation, a premier engineering services company providing turnkey engineering services to its customers. The partnership will strengthen Tata Technologies' global footprint and domain capabilities to provide high-end engineering services to a diverse set of existing and new clients, especially in Europe. It will also provide Cambric access to the Asia Pacific region. Cambric had revenue of $25 million for the year ended 31 December 2012 with majority of revenues coming from the construction and heavy equipment sector.
Mahindra & Mahindra (M&M) gained 0.98%. M&M on 22 April 2013 said that the tool down strike at the company's Igatpuri plant, which started on 9 April 2013 has been withdrawn by the workers and production will soon be restored to normalcy. Considering the pipeline of stocks as also assembly of higher number of engines at other plant locations, there was no material impact on sales volume and going forward the company expects to build up the pipeline stock, M&M said.
The Minister of Heavy Industries & Public Enterprises has requested the Ministry of Finance either to withdraw the additional 3% excise duty imposed on SUVs in the current Union Budget or to exempt all such vehicles classified as SUV that have an assessable value up to Rs 10 lakh. Giving this information in written reply to a question in the Rajya Sabha on 23 April 2013, the Minister of Heavy Industries & Public Enterprises Mr. Praful Patel said that the auto industry in the country is going through difficult times and the notification issued by the Finance Ministry for the levy of additional 3% excise duty will further impact the industry and will also discourage the consumers as the commonly used vehicles in rural and semi-urban area have come under this additional 3% excise duty.
Two-wheeler major Hero MotoCorp jumped 3.59% after the company said at the time of announcement of the Q4 results that it has hiked prices of its products, ranging from Rs 500 to Rs 1,500 with immediate effect. The company's net profit fell 4.86% to Rs 574.23 crore on 1.79% rise in total income to Rs 6250.26 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results after market hours today, 26 April 2013.
Another two-wheeler maker, Bajaj Auto rose 0.04%.
Metal stocks were mixed. Hindalco Industries, Tata Steel and Hindustan Zinc dropped by 0.01% to 1.05%. Sterlite Industries, Sail, JSW Steel and Bhushan Steel gained by 0.22% to 1.56%.
Jindal Steel and Power (JSPL) dropped 2.48%, with the stock extending Friday's 4.29% losses triggered by weak Q4 results. The company's consolidated net profit after tax and before minority interest and share of profit/loss of associates declined 35% to Rs 752.75 crore on 3% growth in income from operations to Rs 5648.44 crore in Q4 March 2013 over Q4 March 2012. The company announced the results after market hours on 25 April 2013.
JSPL's consolidated net profit after exceptional item declined 27.25% to Rs 2911.62 crore on 9% growth in income from operations to Rs 19806.78 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). Net profit before exceptional item declined 14% to Rs 3485.74 crore in FY 2013 over FY 2012.
The stock market remains closed on Wednesday, 1 May 2013, on account of Maharashtra Day.
The focus of the market is on Q4 results. IDFC announces Q4 results on Wednesday, 1 May 2013. Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on Thursday, 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on Friday, 3 May 2013. Grasim and Jaiprakash Associates unveil Q4 results on Saturday, 4 May 2013. HDFC and Lupin unveil Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints announces Q4 results on 9 May 2013. NTPC announces Q4 results on 10 May 2013. Dr Reddys Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. BPCL announces Q4 results on 29 May 2013. M&M announces Q4 results on 30 May 2013.
The Prime Minister's Economic Advisory Council (PMEAC) in a report released on 23 April 2013 projected 6.4% growth in India's GDP for the current fiscal year 2013/14, higher than an estimated 5% growth for the fiscal year 2012/13. The net FDI inflow is expected at $24 billion in 2013-14 from an estimated $18 billion in 2012-13, the PMEAC said. In contrast, FII inflows are seen sliding to $18 billion in 2013-14 from an estimated $24 billion in 2012-13, the PMEAC said.
Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for April 2013 on Wednesday, 1 May 2013. The HSBC India Manufacturing PMI fell to 52 in March 2013, after a surge to 54.2 in February 2013. Markit Economics will unveil the result of a monthly survey on the performance of India's services sector for April 2013 on Friday, 3 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to a 17-month low of 51.4 in March from 54.2 in February. Services make up over 60% of India's economy.
Slowing wholesale price inflation has raised expectations that the Reserve Bank of India (RBI) will cut its key policy rate viz. the repo rate to boost economic growth. The (RBI) will announce the Monetary Policy Statement 2013-14 on Friday, 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.
Inflation based on the monthly wholesale price index (WPI) eased to the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed.
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 Lok Sabha was adjourned till 14:00 IST after uproar over demand for PM's resignation over coal scam. The Rajya Sabha was adjourned till 14:00 IST. The government needs to pass many crucial bills, including the finance Bill in the last two weeks of the Budget Session which ends on 10 May 2013. Neither House transacted any business last week after Parliament reconvened for the rest of the Budget session that saw adjournments and uproar over various issues such as 2G scam, coal scam and the Delhi minor rape.
Most Asian stocks rose on Monday. Key benchmark indices in Taiwan, Indonesia and Singapore rose by 0.1% to 0.24%. Key benchmark indices in Hong Kong and South Korea fell by 0.07% to 0.2%. Markets in China and Japan were closed for a holiday.
Trading in US index futures indicated that the Dow could gain 14 points at the opening bell on Monday, 29 April 2013. Most US stocks dipped in thin volume on Friday amid a mixed bag of earnings and weak economic figures. Gross domestic product expanded at a 2.5% rate in the first quarter, below estimates of 3%, heightening fears the US economy could struggle to cope with deep government spending cuts and higher taxes that kicked in earlier this year.
A two-day meeting of the Federal Open Market Committee on US interest rates begins tomorrow, 30 April 2013.
In Europe, the European Central Bank's (ECB) Governing Council meets in Bratislava on Thursday, 2 May 2013, to review euro area interest rates. The ECB is seen cutting euro area interest rates by 25 basis points to a record low of 0.5% as economic conditions continue to deteriorate across the euro zone and as inflation remains well below the bank's target.
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