Gains in Asian stocks triggered a firm opening on the domestic bourses, with the 50-unit CNX Nifty regaining the psychological 6,000 level. The barometer index, the S&P BSE Sensex, was up 140.48 points or 0.71%, up close to 65 points from the day's low and off about 20 points from the day's high. Index heavyweight and cigarette major ITC edged higher in early trade. Another index heavyweight Reliance Industries (RIL) also gained. The market breadth, indicating the overall health of the market, was strong.
United Spirits declined after the company said that the Directorate General of Central Excise Intelligence (DGCEI), Mumbai has issued a show cause notice for service tax demand of Rs 69.30 crore on the company. Realty major DLF rose after the company received strong investor response for its institutional placement programme. Hindalco Industries edged higher after the company's US subsidiary Novelis reported Q4 results after trading hours in Indian on Tuesday, 14 May 2013.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Tuesday, 14 May 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 420.99 crore on Tuesday, 14 May 2013, as per provisional data from the stock exchanges.
At 9:30 IST, the S&P BSE Sensex was up 140.48 points or 0.71% to 19,862.77. The index jumped 159.76 points at the day's high of 19,882.05 in early trade. The index gained 75.89 points at the day's low of 19,798.18 in opening trade.
The CNX Nifty was up 39.55 points or 0.66% to 6,034.95. The index hit a high of 6,042.20 in intraday trade. The index hit a low of 6,018.85 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 649 shares advanced and 208 shares declined. A total of 36 shares were unchanged.
Among the 30-share Sensex pack, 29 stocks rose while only one of them fell. Hero MotoCorp, GAIL (India) and Tata Motors rose by 1.3% to 1.5%.
Index heavyweight Reliance Industries (RIL) gained 0.92% to Rs 804.95.
Index heavyweight and cigarette major ITC rose 0.71% to Rs 338.30. The stock had hit record high of Rs 355 in intraday trade during the special trading session held on Saturday, 11 May 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.
Hindalco Industries edged higher after the company's US subsidiary Novelis reported Q4 results after trading hours in Indian on Tuesday, 14 May 2013. The stock was up 1.57%. Novelis reported net income attributable to its common shareholder of $202 million for the year ended 31 March 2013 (FY 2013). Excluding tax-effected certain items, net income for FY 2013 was $241 million, compared to a net income of $218 million for the year ended 31 March 2012 (FY 2012). Net sales declined 11% to $9.8 billion in FY 2013 over FY 2012. This decline was due to lower average aluminum prices and lower shipments when compared to last year, Novelis said.
Adjusted EBITDA for FY 2013 was $961 million, compared to $1.053 billion for FY 2012. The year-over-year decrease was mostly due to disruptions related to the ERP implementation in two North American plants in the third quarter, pricing pressures in several operating regions, lower average aluminum prices, an impact from a fire at a North American plant in the fourth quarter and higher pension expense.
Net income for Q4 March 2013, excluding tax-effected certain items, was $80 million, representing a $55 million increase when compared to the same period in the prior year, Novelis said. For the fourth quarter, sales were $2.5 billion compared to $2.6 billion reported for the fourth quarter of fiscal 2012. Adjusted EBITDA for the fourth quarter of fiscal 2013 was $240 million, representing a 3% increase when compared to the $233 million reported for the same period a year ago, due primarily to stronger demand and good cost control.
Phil Martens, Novelis President and Chief Executive Officer said: :This is a heavy investment period for us that is necessary to maintain and grow our leadership position in the industry. Fiscal 2013 was a transitional year much like fiscal 2014 will be. We are very pleased with the execution on all of our expansion projects and are looking forward to capitalizing on the significant growth we see ahead in our key end-markets of can, automotive and specialties".
Glenmark Pharmaceuticals gained 1.27%. Glenmark The company said before market hours today, 15 May 2013, that Glenmark Generics Inc., USA, a subsidiary of Glenmark Generics has been granted final abbreviated new drug approvals (ANDAs) from the USFDA for two generic drugs for the treatment of migraine headache in adults. Glenmark will commence distribution of the products immediately. According to IMS Health data, the products garnered annual sales of $176 million in the United States for the 12 months ended 31 December 2012.
Jet Airways (India) gained 1.43%. The company said after market hours on Tuesday, 14 May 2013, that Securities and Exchange Board of India has permitted the company and relaxed the requirement of 12 week cool off period after the proposed inter se transfer of shares to enable the company to undertake the Offer for Sale through Stock Exchange Mechanism (OFS) for the purpose of achieving the minimum level of public shareholding as required under the Securities Contracts Regulations, 1957.
Realty major DLF rose 1.56% to Rs 233.90 after the company received strong investor response for its institutional placement programme. Investors bid for a total quantity of 14.81 crore DLF shares under the institutional placement programme through the stock exchanges mechanism held during a single day on Tuesday, 14 May 2013. The company will issue up to 8.1 crore shares to eligible qualified institutional buyers. The floor price for the qualified institutional placement was set at Rs 222 per equity share, with price band of Rs 222 to Rs 233 per share.
United Spirits declined 0.29% after the company after trading hours on Tuesday, 14 May 2013, said that the Directorate General of Central Excise Intelligence (DGCEI), Mumbai has issued a show cause notice for service tax demand of Rs 69.30 crore on the company. The company said that DGCEI, Mumbai examined soft copy of the company's ledger extract of Advertisement & Sales Promotion expenses for the period 2007-08 to 2011-12. The DGCEI without verifying the nature of the expenses accounted for in the ledger extract has considered the entire amount as 'sponsorship services' and served a show cause notice on the company for service tax demand of Rs 69.30 crore, United Spirits said. The company said it is process of replying to the show cause notice by highlighting the error. The company said it has been paying service tax on applicable services regularly ever since such taxes were introduced by statute, United Spirits said.
The focus of the market is on Q4 results. Bajaj Auto announces Q4 results tomorrow, 16 May 2013. ITC unveils Q4 results on Friday, 17 May 2013. Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Tata Steel, State Bank of India and Bharat Heavy Electricals (Bhel) unveil Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. Sun Pharma, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. ONGC, NMDC and BPCL unveil Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
Asian shares rose on Wednesday, with Japan's Nikkei Average surging to a fresh 5-1/2 year high as Japanese exporters rallied on the yen's sharp slide. Key benchmark indices in Indonesia, Japan, Hong Kong, Taiwan, and Singapore rose by 0.1% to 2.16%. Key benchmark indices in China and South Korea fell by 0.03% to 0.11%.
US stocks rallied to record highs on Tuesday, continuing an ascent driven by the Federal Reserve's easy monetary policy, though investors' focus has turned to when the Fed may start to rein in its bond-purchase programme.
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