Key benchmark indices registered small losses, snapping three-day winning streak, as weakness in European stocks and lower US index futures weighed on sentiment. The barometer index, the S&P BSE Sensex, lost 13.18 points or 0.07%, off close to 70 points from the day's high and up about 100 points from the day's low. Index heavyweight Reliance Industries (RIL) edged higher in volatile trade. Another index heavyweight and cigarette major ITC also gained. The market breadth, indicating the overall health of the market was negative.
Indian bourses today, 29 May 2013, snapped three-day winning streak. The Sensex had gained 486.49 points or 2.47% in three trading sessions to settle at 20,160.82 on 28 May 2013, from a recent low of 19,674.33 on 23 May 2013. The Sensex has gained 643.46 points or 3.29% in this month so far (till 29 May 2013). The Sensex has gained 720.93 points or 3.71% in calendar 2013 so far (till 29 May 2013). From a 52-week high of 20,443.62 on 20 May 2013, the Sensex has fallen 295.98 points or 1.44%. From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 4,398.66 points or 27.92%.
Coming back to today's trade, metal stocks declined after the International Monetary Fund (IMF) cut its growth forecast for China citing a weak world economy and exports. Hindalco Industries fell on poor Q4 result announced after market hours on Tuesday, 28 May 2013. Sun Pharmaceutical Industries surged after good Q4 result and a liberal 1:1 bonus issue announced after market hours on Tuesday, 28 May 2013. Aditya Birla Nuvo slipped after announcing Q4 results during market hours today, 29 May 2013.
Sun TV Network surged on strong investor response to the promoter's Offer for Sale (OFS). Rural Electrification Corporation (REC) rose on good Q4 result announced after market hours on Tuesday, 28 May 2013. Realty stocks declined. DLF fell ahead of its Q4 results tomorrow, 30 May 2013.
The market may remain volatile tomorrow, 30 May 2013, as traders roll over positions in the futures & options (F&O) segment from the near-month May 2013 series to June 2013 series. The May 2013 derivatives contracts expire tomorrow, 30 May 2013.
The S&P BSE Sensex lost 13.18 points or 0.07% to 20,147.64, its lowest closing level since 27 May 2013. The index fell 116.08 points at the day's low of 20,044.74 in afternoon trade. The index gained 55.67 points at the day's high of 20,216.49 in early trade, its highest level since 22 May 2013.
The CNX Nifty lost 6.95 points or 0.11% to 6,104.30, its lowest closing level since 27 May 2013. The index hit a low of 6,069.80 in intraday trade. The index hit a high of 6,125.05 in intraday trade.
The BSE Mid-Cap index fell 0.39% and the BSE Small-Cap index declined 0.16%. Both these indices underperformed the Sensex.
The BSE HealthCare index (up 1.82%), BSE Consumer Durables index (up 0.82%), BSE FMCG index (up 0.58%), BSE Auto index (up 0.34%) and BSE Oil & Gas index (up 0.12%), outperformed the Sensex.
The BSE Realty index (down 2.5%), BSE Metal index (down 1.13%), BSE Bankex (down 0.82%), BSE Power index (down 0.77%), BSE IT index (down 0.64%), BSE Teck index (down 0.56%), BSE Capital Goods index (down 0.55%) and BSE PSU index (down 0.31%), underperformed the Sensex.
The total turnover on BSE amounted to Rs 1764 crore, lower than Rs 1829 crore on Tuesday, 28 May 2013.
The market breadth, indicating the overall health of the market was negative. On BSE, 1,342 shares declined and 1,025 shares gained. A total of 137 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks declined and the rest of them gained.
Index heavyweight Reliance Industries (RIL) rose 0.49% to Rs 847.25, with the stock extending two-day gains. The stock hit a high of Rs 849 and low of Rs 833.20. RIL and its partners BP and NIKO on 24 May 2013 announced a significant gas and condensate discovery in the KG D6 block off the eastern coast of India. RIL is the operator of KG D6 with 60% equity. BP has a 30% share and NIKO the remaining 10%.
Index heavyweight and cigarette major ITC gained 0.69% to Rs 342.25. The stock hit a high of Rs 343 and low of Rs 337.50. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013.
Metal stocks declined after the International Monetary Fund (IMF) cut its growth forecast for China this year to 7.75% from 8%, citing a weak world economy and exports, adding to concerns that the world's second-largest economy is losing momentum. China is the world's largest consumer of copper and aluminum.
Sterlite Industries (India) (down 2.43%), JSW Steel (down 2.07%), Tata Steel (down 2.66%), Sail (down 2.54%), Hindustan Zinc (down 2.03%) and Jindal Steel & Power (down 2.55%) edged lower.
Hindalco Industries was flat at Rs 109.95. The company's net profit fell 24.68% to Rs 482 crore on 8.53% decline in revenue from operations to Rs 6994 crore in Q4 March 2013 over Q4 March 2012. The Q4 result was announced after market hours on Tuesday, 28 May 2013.
Hindalco Industries said that the operational results for Q4 March 2013 showed significant improvement over Q3 December 2012, with EBITDA rising over 10% on sequential basis. The company said it delivered sequentially an improved EBITDA in every quarter during the year ended 31 March 2013 (FY 2013). The operating margin of the company grew by 72 basis points on sequential basis in Q4 March 2014 due to operational efficiencies. Net profit rose 11.05% to Rs 482 crore in Q4 March 2013 over Q3 December 2012.
Hindalco Industries said the company's ongoing projects with cumulative investment of about Rs 28000 crore have either been commissioned or at advanced stages of commissioning/implementation.
Sun Pharmaceutical Industries galloped 7.09% to Rs 1,066.10 after striking a record high of Rs 1,079.90 in intraday trade today, 29 May 2013. The company's consolidated net profit rose 23.3% to Rs 1011.56 crore on 31.8% rise in net sales to Rs 3071.49 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results after market hours on Tuesday, 28 May 2013.
Sun Pharmaceutical Industries said that the board of directors of the company at its meeting held on Tuesday, 28 May 2013, has recommended a liberal 1:1 bonus issue.
Sun Pharmaceutical Industries' consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) grew by 32% to Rs 1260 crore in Q4 March 2013 over Q4 March 2012, while sustaining EBITDA margin at 41%.
Sun Pharmaceutical Industries said that branded generic sales in India were at Rs 780 crore. Adjusted for the extra sales recorded in the Q4 March 2012, as well as the change in treatment of expected sales returns and treatment of discounts, the underlying sales growth of the domestic formulation business is 16%.
US finished dosage sales grew by 63% to $330 million in Q4 March 2013 over Q4 March 2012. International formulation sales grew by 13% to $73 million in Q4 March 2013 over Q4 March 2012.
Consolidated research and development (R&D) expense for Q4 March 2013 was Rs 203 crore, at 6.6% of sales. For the year ended March 2013 (FY 2013), R&D spend was Rs 676 crore, at 6% of sales.
Dilip Shanghvi, managing director of the company said, "I am very pleased to announce that, our sales for FY 2013 have crossed the $2 billion mark. While it took us almost 27 years to record $1 billion in revenues, the next billion was added in just 3 years."
He further said, "All our businesses continue to perform in-line with our expectations. We continue to focus on building a differentiated and specialty product portfolio and enhancing our international presence. Overall, we shall strive to remain focused on execution and building a business with consistent performance."
Meanwhile, Sun Pharma has declined to comment on market speculation that the company may acquire Germany-based Stada.
Wockhardt was locked at 10% lower circuit at Rs 1121.80. The stock will be included in MSCI India index from close of Thursday, 31 May 2013.
The pharmaceutical company on 24 May 2013 said that the company has received an 'import alert' from the United States US Food and Drug Administration (USFDA) on one of its manufacturing units located in Waluj near Aurangabad. The impact of the import alert on the revenues is estimated to be in the range of $100m on an annualised basis, Wockhardt said at that time. The company is taking all steps to address the concerns raised by USFDA and shall put all efforts to resolve the issue at the earliest, it had said.
Aditya Birla Nuvo slipped 0.67%. The company during market hours today, 29 May 2013 reported 17% rise in consolidated net profit to Rs 199 crore on 17% rise in revenue to Rs 6996 crore in Q4 March 2013 over Q4 March 2012. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 26% to Rs 1053 crore in Q4 March 2013 over Q4 March 2012.
Net profit rose 19% to Rs 1059 crore on 17% increase in revenue to Rs 25490 crore in the year ended March 2013 (FY13) over the year ended March 2012 (FY12). EBITDA rose 27% to Rs 4142 crore in FY13 over FY12.
Aditya Birla Nuvo said that its balance sheet was strengthened by an equity infusion of Rs 832 crore by promoters, the dividend income and cash flow from operations.
With Birla Sun Life Insurance and Idea Cellular declaring dividend, Aditya Birla Nuvo has started generating returns on its long term investments in addition to its cash flow from operations. This coupled with the proceeds from the divestment of the carbon black business and the remaining equity infusion by promoters, will further strengthen the company's balance sheet and will support its growth plans, going forward, Aditya Birla Nuvo said in a statement.
Sun TV Network gained 4.23% to Rs 428.50. The company's promoter Kalanithi Maran had put on block 78.81 lakh shares representing 2% of the equity share capital of the company via Offer for Sale (OFS) through the separate window provided by the stock exchanges for this purpose today, 29 May 2013.
The OFS got bids for 2.50 crore shares, compared with 78.81 lakh shares on offer, as per data from the stock exchanges. The OFS was subscribed 317.21% at an indicative bid price of Rs 416.13 per share. The floor price for the OFS was fixed at Rs 403 per share.
Rural Electrification Corporation (REC) rose 1.58%. The company's net profit rose 26.1% to Rs 960.34 crore on 27% rise in total income to Rs 3640.05 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Tuesday, 28 May 2013.
REC's net profit surged 35.5% to Rs 3817.62 crore on 29.4% growth in total income to Rs 13598.67 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
REC's consolidated net profit jumped 35% to Rs 3832.78 crore on 29.2% growth in total income to Rs 13636.58 crore in FY 2013 over FY 2012.
Realty stocks declined. DLF fell 2.06% ahead of its Q4 results tomorrow, 30 May 2013.
Indiabulls Real Estate (down 4.27%), Unitech (down 5.16%), Godrej Properties (down 0.6%) and Oberoi Realty (down 1.43%) fell.
Housing Development and Infrastructure (HDIL) tumbled 6.8% after the company reported consolidated net loss of Rs 279.95 crore in Q4 March 2013, as against net profit of Rs 315.52 crore in Q4 March 2012. HDIL's consolidated total income declined 76.04% to Rs 155.54 crore in Q4 March 2013 over Q4 March 2012. The company announced the Q4 results during trading hours today, 29 May 2013.
HDIL said that the Mumbai International Airport has served notice of termination on the company for Mumbai International Airport Slum Rehabilitation project citing unsubstantiated charges on which the company has initiated legal remedies. The board of HDIL following its conservative accounting policy has written off unrealised cost aggregating to Rs 441.98 crore pertaining to the Mumbai International Airport Slum Rehabilitation project as exceptional item in Q4 March 2013, HDIL said
HDIL's consolidated net profit fell 90.94% to Rs 73.33 crore on 48.18% decline in total income to Rs 1065.23 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
NHPC fell 3.25% after net profit fell 27.28% to Rs 583.26 crore on 25.1% decline in net sales to Rs 1037.71 crore in Q4 March 2013 over Q4 March 2012. The result was announced after market hours on Tuesday, 28 May 2013.
Jet Airways declined 3.07% to Rs 535.10. Tail Winds, a promoter of Jet Airways (India), has decided to sell 43.17 lakh shares of the company representing approximately 5% of the total paid up equity share capital of the company on 30 May 2013 via Offer for Sale (OFS) through a separate window provided by the stock exchanges for this purpose. The floor price for the offer for sale has been fixed at Rs 510. The company announced the floor price for the OFS after trading hours today, 29 May 2013.
Capital goods stocks edged lower on worries the ongoing slowdown in the economy could restrict new orders. ABB, Punj Lloyd, Siemens and Thermax shed by 0.2% to 2.86%.
Bhel fell 0.05% on profit booking after the stock jumped 5.39% in the preceding two trading sessions to Rs 203.25 on 28 May 2013, from a recent low of Rs 192.85 on 24 May 2013.
L&T dropped 0.54%. The company reported 6.9% fall in net profit to Rs 1787.94 crore on 9.9% rise in total income to Rs 20686.93 crore in Q4 March 2013 over Q4 March 2012. The result was announced on 22 May 2013.
Bank stocks were mostly lower. State Bank of India (SBI) declined 1.27%.
Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank dropped by 0.69% to 3.28%.
ICICI Bank fell 1.38% to Rs 1,215.70. The stock had hit 52-week high of Rs 1,236.90 in intraday trade on Tuesday, 28 May 2013.
Induslnd Bank fell 1.3%. The bank and American Express during market hours today, 29 May 2013 announced strategic partnership with the launch of the new Induslnd Bank Iconia American Express Card. This is IndusInd Bank's first American Express-branded credit card product.
HDFC Bank rose 0.24% to Rs 715.15. The stock had hit a record high of Rs 724 hit in intraday trade on 20 May 2013.
Power Grid Corporation of India rose 0.76%. The company's net profit rose 7.5% to Rs 1109.44 crore on 8.8% rise in net sales to Rs 3373.76 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results after market hours on Tuesday, 28 May 2013.
Coal India gained 1.3%, with the stock extending Tuesday's 3.01% gain. The company's consolidated net profit rose 34.89% to Rs 5413.91 crore on 1.77% rise in total income to Rs 22111.07 crore in Q4 March 2013 over Q4 March 2012. The company announced Q4 results after market hours on Monday, 27 May 2013.
Coal India's board of directors approved rationalisation of coal prices from 28 May 2013. Due to the rationalisation of coal prices, there will be an approximately additional revenue of Rs 2119.36 crore for the balance period of the year ending 31 March 2014. The yearly additional revenue would be around Rs 2511.58 crore.
The Q4 March 2013 earnings season gets over this week. DLF, M&M and Tata Power unveil Q4 results tomorrow, 30 May 2013.
On the macro front, the government will announce Q4 March 2013 gross domestic product (GDP) data on Friday, 31 May 2013. India's GDP grew 4.5% in Q3 December 2012, sharply slower than the 5.3% expansion reported for Q2 September 2012.
The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
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.
European stocks retreated on Wednesday as encouraging US economic data overnight sparked worries that it could trigger the US Federal Reserve to taper its aggressive bond-purchasing program. Key benchmark indices in France, Germany and UK dropped by 1.33% to 1.48%.
German unemployment rose more than four times as much as economists estimated in May as the euro area's sovereign debt crisis and a long winter took their toll on Europe's largest economy. The number of people out of work climbed a seasonally adjusted 21,000 to 2.96 million, the Nuremberg-based Federal Labor Agency said today.
Asian shares were mostly higher on Wednesday as US stocks rallied to record highs overnight. Key benchmark indices in Japan, Taiwan, Indonesia, South Korea, and China rose by 0.1% to 0.91%. Key benchmark indices in Singapore and Hong Kong fell by 1.13% to 1.61%.
The International Monetary Fund (IMF) cut its growth forecast for China this year to 7.75% from 8%, citing a weak world economy and exports, adding to concerns that the world's second-largest economy is losing momentum.
Trading in US index futures indicated that the Dow could fall 80 points at the opening bell on Wednesday, 29 May 2013. US stocks climbed on Tuesday, bouncing back from last week's losses after data showed consumer confidence rising in May and the real-estate market picking up speed.
Last week, Fed Chairman Ben Bernanke said the central bank could start to reduce its stimulus program in coming months if data continue to improve, stoking fears of market turmoil.
The Organization for Economic Cooperation and Development (OECD) today, 29 May 2013, said that global growth could get hit as governments pare back easy-money programs. The OECD said it expects global growth of 3.1% this year and 4% in 2014, down from earlier estimates.
Powered by Capital Market - Live News
