Key benchmark indices were range bound in positive zone in afternoon trade. The market breadth, indicating the overall health of the market, was positive. The barometer index, the S&P BSE Sensex, was up 43.56 points or 0.21%, off close to 85 points from the day's high and up about 60 points from the day's low.
Index heavyweight and cigarette maker ITC dropped. State Bank of India (SBI) extended intraday gain. Metal stocks gained as Chinese manufacturing gauge rose to an 18-month high in October. Sesa Sterlite rose after reporting Q2 result after trading hours on Thursday, 31 October 2013. Reliance Communications (RCom) rose after the company said it has announced revolutionary Apple iPhone offers that promise to change the way people buy the iconic Smartphone in India. IDFC rose after Q2 result. Magma Fincorp rose on good Q2 result.
A bout of initial volatility was witnessed as key benchmark indices pared gains after moving into the positive terrain after opening lower. The Sensex hit record high at the onset of the trading session and on the first day of Diwali today, 1 November 2013. Intraday volatility continued as key benchmark indices pared gains after extending initial gains to hit fresh intraday high. The Sensex retained positive zone in mid-morning trade. Key benchmark indices were range bound in positive zone in afternoon trade.
The market sentiment was boosted by data showing that foreign funds made massive purchases of Indian stocks on Thursday, 31 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 1875.87 crore on Thursday, 31 October 2013, as per provisional data from the stock exchanges.
At 12:20 IST, the S&P BSE Sensex was up 43.56 points or 0.21% to 21,210.29. The index jumped 129.36 points at the day's high of 21,293.88 in morning trade, which is a record high. The index fell 17.95 points at the day's low of 21,146.57 in early trade.
The CNX Nifty was up 12.75 points or 0.2% to 6,311.90. The index hit a high of 6,332.60 in intraday trade, its highest level since 8 November 2010. The index hit a low of 6,286.95 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,250 shares rose and 874 shares fell. A total of 136 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks rose and rest of them fell. Hero MotoCorp (up 2.92%), Coal India (up 2.59%) and Bhel (up 2.59%), gained.
State Bank of India (SBI) rose 3.26%, with the stock extending intraday gain. The bank announced during trading hours on Thursday, 31 October 2013, that it has decided to revise its interest rates on bulk (Rs 1 crore and above) and retail term deposits (below Rs 1 crore) with effect from Friday, 1 November 2013. The bank has revised interest rate downwards on bulk deposits of all tenors. Interest rate on bulk term deposits for the period 1 year to less than 2 years has been reduced to 8.25% from 8.75%.
The bank has decided to increase interest rate on retail term deposits of maturity period of 180 days to 210 days to 7% from 6.8%.
SBI announced after market hours on Wednesday, 30 October 2013, that its central board has approved raising upto Rs 2000 crore through preferential allotment of equity shares in favour of the Government of India.
Metal stocks gained as a Chinese manufacturing gauge rose to an 18-month high in October. China is the world's largest consumer of copper and aluminum. Bhushan Steel (up 1.19%), JSW Steel (up 2.7%), Tata Steel (up 1.61%), Sail (up 0.89%), Hindalco Industries (up 0.26%), Hindustan Zinc (up 1.12%) and Jindal Steel & Power (up 2.85%), rose.
Sesa Sterlite rose after reporting Q2 result after trading hours on Thursday, 31 October 2013. The stock was up 1.34%. The company's consolidated net profit jumped 358.65% to Rs 2394.37 crore on 8410.59% jump in total income to Rs 26266.22 crore in Q2 September 2013 over Q2 September 2012. The company announced result after market hours on Thursday, 31 October 2013. Consequent to the restructuring exercise, the results for the quarter ended 30 September 2013 are not comparable with the corresponding period of the previous year.
Sesa Sterlite's Chairman, Anil Agarwal, said: "The merger of Sterlite Industries and Sesa Goa has created one of the world's largest global diversified natural resources companies. Sesa Sterlite is the Indian flagship of our group and with its world class assets, efficient operations and our strong track record, we are well placed to deliver superior returns for shareholders. Despite volatile commodity prices and temporarily suspended iron ore operations at Goa and Karnataka, the company has delivered a strong operational and financial performance during the quarter, with production growth at our Oil & Gas, Zinc and Aluminium businesses. We expect to recommence mining in Karnataka soon and are hopeful that the Goa mining suspension will be resolved by the Supreme Court soon, which will be helpful for the government exchequer and the local economy."
Index heavyweight and cigarette maker ITC dropped 1.59%.
IDFC jumped 7.37% after Q2 result. The company's consolidated net profit rose 2.33% to Rs 486.75 crore on 5.38% growth in total income from operations to Rs 2148.46 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after trading hours on Thursday, 31 October 2013. IDFC's gross loan book increased by 3% to Rs 55957 crore as on 30 September 2013, from Rs 54137 crore as on 30 September 2012.
Reliance Communications (RCom) rose 1.19%. The company today, 1 November 2013, said it has announced revolutionary Apple iPhone offers that promise to change the way people buy the iconic Smartphone in India. The company has announced two game-changing offers -- just Rs 2,599 per month for the iPhone 5c and Rs 2,999 per month for the iPhone 5s, both for a duration of 24 months which include the handset cost, unlimited local and STD calls, SMS, national roaming and 3G data. And in another first in India, ever, RCom is offering these much-awaited iPhone models at no down payment. Furthermore, under this unique offer, Apple iPhone 5c and iPhone 5s customers will not receive any usage bill for 24 months, as the monthly payments include all usage charges. Only international calls and international roaming charges will have to be paid for.
Commenting on this innovative offer, Mr Gurdeep Singh, President & CEO (Wireless), Reliance Communications, said: "We are delighted to be amongst the first to launch the Apple iPhone 5c and iPhone 5s in India and are focused on growing this user segment with our novel iPhone offers, which break all ownership rules and put the customer first. The Apple iPhone has been a dream for users in India and overseas, and it is our endeavor to grow this market and make every Indian's dream come true with RCOM's compelling and affordable iPhone ownership plan-No down-payments. No bills for 24 months."
The latest iPhone offer from RCom is part of the company's efforts to bring more Smartphone customers to its built-for-video 3G network, which will increase the acquisition of high value post-paid customers to its customer base and further cement its position as India's leading data services provider, RCom said in a statement.
Marico dropped 1.62% to Rs 209. Trading in shares of Marico began today, 1 November 2013, as a pure FMCG company. It may be recalled that Marico had announced demerger of its skin care business under the Kaya brand into a separate company called Marico Kaya Enterprises (MaKE). The board of directors of Marico and MaKE have fixed 5 November 2013 as the record date for determining the shareholders to whom 1 fully paid share of MaKE with a face value of Rs 10 each shall be issued for every 50 fully paid shares held in Marico.
Aptech rose 3.30% on strong Q2 result. The company's consolidated net profit jumped 83.90% to Rs 8.68 crore on 16.76% increase in net sales to Rs 49.60 crore in Q2 September 2013 over Q1 June 2013. The company announced the result after market hours on Thursday, 31 October 2013. On a consolidated basis, net profit jumped 45.6% to Rs 8.68 crore on 9.7% increase in net sales to Rs 49.60 crore in Q2 September 2013 over Q2 September 2012.
Aptech said as per the buyback plan approved by shareholders, the company bought back and extinguished 38.01 lakh equity shares of value Rs 23.53 crore as on 30 September 2013.
The company's buyback offer opened on 24 July 2013. The company has set aside Rs 64.65 crore as the maximum amount for the buyback. The maximum buyback price is set at Rs 82 per share. The company proposes to buyback a minimum of 19.71 lakh equity shares and a maximum of 78.84 lakh equity shares.
Apcotex Industries lost 6.56% on weak Q2 result. The company's net profit declined 30.05% to Rs 2.49 crore on 0.19% growth in total income from operations to Rs 70.50 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Thursday, 31 October 2013.
Magma Fincorp rose 3.83% on good Q2 result. The company's consolidated net profit rose 15.28% to Rs 30.69 crore on 27.46% growth in total income from operations to Rs 486.78 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Thursday, 31 October 2013.
On standalone basis, Magma Fincorp's net profit rose 14% to Rs 32.20 crore on 28% growth in gross revenue to Rs 511 crore in Q2 September 2013 over Q2 September 2012.
The top line growth in Q2 September 2013 was backed by a robust increase in spreads. Net interest spread (NIS) stood at 5.71% in Q2 September 2013 up from 4.69% in Q2 September 2012.
The company's loan book increased by 23% YoY to Rs 16698 crore as on 30 September 2013 and capital adequacy stood at 16.1% as on 30 September 2013.
Commenting on the company's Q2 performance, Mr. Sanjay Chamria, VC and MD, Magma Fincorp said, "In the backdrop of a tough economic environment and inconsistent cash flows in our customer's hands we remain focused on improving our profitability and portfolio quality. Being consistent with this focus, we have improved our net spreads by 102 basis points YoY and continue to work on our portfolio quality. On the asset quality front, in line with our conservative approach to loss accounting, we have made a significant amount of provisioning for NPAs in the last two quarters. With the monsoons doing well and expectations of an uptick in commercial activity post monsoons, we expect the economic environment to improve and cash flows in the customers hand to stabilize. The second half of the year normally sees an improvement in collections and we expect an improvement in collection efficiency across all products in the coming quarters".
Magma Fincorp said the performance in Q2 September 2013 is commendable in the backdrop of a challenging economic environment wherein primary sales numbers of major products like cars, commercial vehicles and construction equipment have dropped drastically. The impact of fuel price hikes and inflation coupled with subdued commercial activity have resulted in lower utilization of earning assets and temporary cash flow constraints across all customer segments, the company said. As a result, the company has made NPA provision of Rs 74 crore for first half of FY 2014. While assisting customers who want more time to pay instalments, the company recognizes NPA in its books as per original repayment schedule and does not restructure any contract in its books, Magma Fincorp said in a statement.
In the foreign exchange market, the rupee edged lower against the dollar, tracking global dollar gains. The partially convertible rupee was hovering at 61.87, compared with its close of 61.50/51 on Thursday, 31 October 2013.
The stock exchanges will hold a special live trading session on Sunday, 3 November, 2013, on account of Muhurat trading on Diwali. The trading will start at 18:15 IST and will end at 19:30 IST on that day. The stock market remains closed on Monday, 4 November 2013, on account of Diwali-Balipratipada.
Indian factories cut production in October with overall manufacturing activity contracting for the third straight month as order books shrank at a quicker pace, a survey showed on Friday, 1 November 2013. The HSBC Manufacturing PMI compiled by Markit was unchanged at 49.6 in October, remaining below the watershed 50 mark that separates growth from contraction. The new orders sub-index fell to 48.9 last month from 49.6 in September, its fifth month below 50. The PMI survey showed input costs grew last month at their quickest pace since June 2012. Output costs also rose at the fastest rate since February. "Input price inflation accelerated further despite the weak growth backdrop, as the effects of the depreciated exchange rate continue to pass through. This suggests that the RBI has to continue its staring contest with inflation," said Leif Eskesen, chief economist for India at survey sponsor HSBC.
The Eight Core Industries having a combined weight of 37.90% in the Index of Industrial Production (IIP) rose 8% in September 2013, posting highest growth in last 12-months, data released by the government after trading hours on Thursday, 31 October 2013, showed.
Fiscal deficit was Rs 4.12 lakh crore during April-September 2013, or 76% of the full-year target, government data showed on Thursday, 31 October 2013. In the annual budget presented in February, Finance Minister P. Chidambaram had committed to narrow the fiscal deficit to 4.8% of gross domestic product (GDP) this fiscal year from 4.9% a year ago.
Most Asian stocks declined on Friday, 1 November 2013, as speculation the Federal Reserve will reduce stimulus in coming months overshadowed improving China manufacturing data. Key benchmark indices in Japan, Taiwan, Indonesia, and Singapore shed 0.27% to 1.12%. Key benchmark indices in China, Hong Kong and South Korea rose 0.33% to 0.46%.
A Chinese manufacturing gauge rose more than estimated to an 18-month high in October as output strengthened, adding to evidence the nation's economic recovery is sustaining momentum. The Purchasing Managers' Index was at 51.4, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing.
Trading in US index futures indicated that the Dow could advance 30 points at the opening bell on Friday, 1 November 2013. US stocks fell on Thursday, 31 October 2013, as investors assessed corporate earnings and speculated on when the Federal Reserve will cut stimulus.
US data yesterday showed the biggest jump in a gauge of business activity in more than three decades and a drop in jobless claims. Fewer Americans filed applications for unemployment benefits last week as a backlog in California's reporting cleared. Jobless claims decreased by 10,000 to 340,000 in the week ended Oct. 26 from 350,000 the prior period, the Labor Department reported Thursday in Washington.
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