A bout of volatility was witnessed in late trade as key benchmark indices provisionally settled marginally lower after turning positive after cutting entire intraday losses. 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, was provisionally down 15.02 points or 0.07%, off close to 230 points from the day's high and up about 165 points from the day's low. The market breadth, indicating the overall health of the market, was weak. The BSE Mid-Cap index fell nearly 1% and the BSE Small-Cap index slipped over 1%. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets.
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.
As per provisional figures, the S&P BSE Sensex was down 15.02 points or 0.07% to 22,451.17. The index dropped 181.23 points at the day's low of 22,284.96 in mid-afternoon trade, its lowest level since 16 April 2014. The index rose 214.27 points at the day's high of 22,680.46 in mid-morning trade.
The CNX Nifty was down 5.15 points or 0.08% to 6,710.10, as per provisional figures. The index hit a low of 6,656.80 in intraday trade, its lowest level since 7 April 2014. 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 68.75 points or 0.93% to 7,337.37. The BSE Small-Cap index dropped 109.67 points or 1.44% to 7,505.99. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 3,109 crore, higher than Rs 2,865.42 crore on Tuesday, 29 April 2014.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,768 shares declined and 999 shares rose. A total of 154 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks declined and rest of them rose. Bhel (down 3.05%), Tata Power Company (down 3.46%), and Bharti Airtel (down 2.13%) edged lower from the Sensex pack.
Kotak Mahindra Bank dropped 0.51% 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.
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 2.65%), Sail (down 1.31%), Hindalco Industries (down 1.24%), Bhushan Steel (down 0.51%), Hindustan Copper (down 4.6%), National Aluminum Company (down 1.15%) and Hindustan Zinc (down 2.28%) edged lower. JSW Steel (up 1.99%) and Jindal Steel & Power (up 0.55%) gained.
Tata Steel dropped 0.86%. 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.
Oriental Bank of Commerce lost 1.14% 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 3.1% 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% 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.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.29, 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 0.12% to 0.34%. UK's FTSE 100 rose 0.1%.
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 15 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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