Key benchmark indices extended initial gains to hit fresh intraday high in morning trade. The barometer index, the S&P BSE Sensex, was up 94.04 points or 0.48%, up close to 145 points from the day's low and off about 5 points from the day's high. The 50-unit CNX Nifty hit its highest level more than 7 weeks. Index heavyweight and cigarette major ITC hovered in red Another index heavyweight Reliance Industries (RIL) was slightly higher. The market breadth, indicating the overall health of the market, was strong.
Bharti Airtel fell on weak Q4 results. Shares of other telecom firms rose. Bajaj Auto declined on reporting fall in sales in April 2013.
The market moved into the positive terrain after opening lower. The Sensex extended initial gains to hit fresh intraday high in morning trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 30 April 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 876.93 crore on Tuesday, 30 April 2013, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was up 94.04 points or 0.48% to 19,598.22. The index gained 99.81 points at the day's high of 19,603.99 in morning trade. The index fell 52.92 points at the day's low of 19,451.26 in early trade.
The CNX Nifty was up 31 points or 0.52% to 5,961.20. The index hit a high of 5,962.90 in intraday trade, its highest level since 11 March 2013. The index hit a low of 5,910.95 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 719 shares advanced and 402 shares declined. A total of 64 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose while rest of them fell.
Index heavyweight Reliance Industries (RIL) rose 0.05% to Rs 788.55. The scrip hit high of Rs 796.45 and a low of Rs 786.50 so far during the day. The company said on Tuesday, 30 April 2013, that its telecom unit Reliance Jio Infocomm (India) has joined a consortium of telecom companies building an 8,000 kilometre submarine cable system to link Malaysia and Singapore with the Middle East. The Bay of Bengal Gateway (BBG) cable system, which will have connections to India and Sri Lanka, is expected to carry commercial traffic by end of 2014, RIL said.
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 next 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 fell 0.73% to Rs 326.50 on profit booking. The scrip hit high of Rs 328.80 and a low of Rs 325.10 so far during the day. The stock had hit record high of Rs 335.90 in intraday on Tuesday, 30 April 2013. 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.
Bharti Airtel fell 1.02% on weak Q4 results. The company's consolidated net profit as per International Financial Reporting Standards (IFRS) fell 49.4% to Rs 509 crore on 9.2% rise in total revenue to Rs 20448 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results before market hours today, 2 May 2013. Consolidated net profit fell 46.6% to Rs 2276 crore on 12.4% increase in total revenue to Rs 80311 crore in the year ended March 2013 over the year ended March 2012.
Growth in Bharti Airtel's revenues in Q4 March 2013 was led by strong growth of 71% in mobile internet in India, 24% in Digital TV, 17% in 'airtel business' (B2B) and 12.6% in Africa. With Mobile India churn having improved to 3.2% from 5.9% on sequential basis, the segment witnessed positive net additions after two quarters. Average revenue per user (ARPU) has grown to Rs 193, a sequential improvement of Rs 8 in Q4 March 2013, fuelled by increased customer usage at 455 minutes, and rate stability.
Consolidated earnings before interest taxes depreciation and amortization (EBITDA) margin at 31.7% improved on a sequential basis from 30.6% driven by expansion of EBITDA margin in India. The consolidated net income at Rs 509 crore (Q4 March 2012: Rs 1006 crore) was mainly impacted by higher depreciation and amortisation cost (Rs 515 crore), net interest costs (Rs 132 crore), dividend distribution tax (Rs 37 crore) and higher deferred tax charge due to hike in surcharge (Rs 96 crore). Consolidated operating free cash flows for the quarter were at Rs 2964 crore.
Full year consolidated revenues at Rs 80311 crore grew by 12.4% over the corresponding previous year, with highlights being mobile data growth of 66% in India, 26% in Digital TV, 19% in 'airtel business' and 21.3% in Africa. Consolidated EBITDA margin for the full year at 31% dropped from 33.2% in the previous year mainly due to pricing pressures and rising input costs. Depreciation and amortisation costs for the year were higher by Rs 2128 crore resulting from continued expansion of networks, and net interest costs were higher by Rs 841 crore, resulting in full year consolidated net profit of Rs 2276 crore (year ended March 2012: Rs 4259 crore).
In a statement, Mr. Sunil Bharti Mittal, Chairman, Bharti Airtel, said: "I am pleased to see that market corrections have started with improvements in the quality of customer acquisitions, and that pricing stability is returning to the sector in India. With Africa over its peak of organic investments we are optimistic about the potential for improved market shares and margin expansions. Finally, on the data front, we are now witnessing consistent quarter on quarter growth across all geographies."
Meanwhile, in a separate announcement today, 2 May 2013, Bharti Airtel Holdings (Singapore) Pte., a wholly owned subsidiary of Bharti Airtel and Warid Group have reached an agreement, wherein, Bharti will acquire 30% equity stake of Warid in Airtel Bangladesh. With this, Bharti will own 100% of Airtel Bangladesh. Bharti had acquired 70% stake in Warid Telecom, Bangladesh in January 2010.
Shares of other telecom firms rose. MTNL, Reliance Communications and Idea Cellular rose by 0.75% to 1.44%. Tata Teleservices (Maharashtra) fell 0.12%.
Bajaj Auto declined 0.14% on reporting fall in sales in April 2013. The company's total sales fell 10% to 3.44 lakh units in April 2013 over April 2012. Motorcycle sales fell 12% to 3 lakh units in April 2013 over April 2012. Commercial vehicle sales rose 10% to 43,351 units in April 2013 over April 2012. Exports fell 23% to 1.30 lakh units in April 2013 over April 2012. The company announced its sales figures during market hours today, 2 April 2013.
The focus of the market is on Q4 results. ACC and Ambuja Cements announce Q1 March 2013 results tomorrow, 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 and Punjab National Bank unveil 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.
The Finance Bill for the 2013-14 fiscal year was passed by Lok Sabha on Tuesday, 30 April 2013, with some amendments and without debate after Opposition walkout. The bill now go to Rajya Sabha and then to the President for his assent. Among a key amendment, Finance Minister P Chidambaram cut the withholding tax on interest payments to foreigners on government and corporate debt to 5% from up to 20% for a two-year period from 1 June 2013 to 31 May 2015. The finance minister also clarified that a tax residency certificate issued by a foreign government would be an accepted proof of residency for tax purposes. The government, in its budget proposals, had created confusion with a proposal stating that a tax residency certificate "shall be necessary but not a sufficient condition" to take advantage of double taxation avoidance agreements.
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 tomorrow, 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. 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.
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.
Asian shares edged lower on Thursday, weighed by a fall in US equities overnight and caution before the European Central Bank's interest rate decision later in the session. Key benchmark indices in China, Hong Kong, Indonesia, Japan and South Korea fell by 0.21% to 0.77%. Key benchmark indices in Taiwan and Singapore rose by 0.45% to 0.7%.
China's factory-sector growth eased in April as new export orders fell for the first time this year, a private survey showed on Thursday, suggesting the euro zone recession and sluggish US demand may be reining in China's economic recovery. The final HSBC Purchasing Managers' Index (PMI) dropped to 50.4 in April from March's 51.6 and was largely in line with a flash reading last week of 50.5. China's official PMI on Wednesday painted a similar picture, falling to 50.6 in April from an 11-month high of 50.9 in March as new export orders fell.
Trading in US index futures indicated that the Dow could gain 30 points at the opening bell on Thursday, 2 May 2013. US stocks dropped on Wednesday after the latest economic data in the United States and China cast doubts about the strength of the global economy. The ADP National Employment Report on Wednesday said the US private sector added 119,000 jobs in April, far fewer than forecast, raising apprehension over the key government nonfarm payrolls data for April due on Friday, 3 May 2013. Also on Wednesday, the US Institute for Supply Management said its index of national factory activity fell to 50.7 from 51.3 in March and its employment index fell to 50.2 from 54.2.
The Federal Reserve gave few indications of any new response to worsening economic data in a statement released after its two-day meeting that ended on Wednesday. The US central bank cited risks to growth from recent budget tightening in Washington and reiterated that unemployment is still too high for policymakers' comfort.
In Europe, the European Central Bank's (ECB) Governing Council meets in Bratislava later in the global day today, 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.
Powered by Capital Market - Live News
