Key benchmark indices edged higher as index heavyweights ITC and Reliance Industries (RIL) rose. The barometer index, the S&P BSE Sensex, settled at its highest level in more than 12 weeks. The CNX Nifty settled at 13-week high. The Sensex jumped 231.59 points or 1.19%, up 284.51 points from the day's low and off 56.23 points from the day's high. The market breadth, indicating the overall health of the market, was positive. All the 13 sectoral indices on BSE edged higher.
Indian stocks gained for the third straight day today, 2 May 2013. From a recent low of 19,286.72 on 26 April 2013, the Sensex has gained 449.05 points or 2.33% in three trading sessions. The Sensex advanced 668.41 points or 3.54% in April 2013. The Sensex has gained 309.06 points or 1.59% in calendar 2013 so far (till 2 May 2013). From a 52-week high of 20,203.66 on 29 January 2013, the Sensex has declined 467.89 points or 2.32%. From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 3,986.79 points or 25.31%.
Coming back to today's trade, interest rate sensitive banking and realty stocks rose on expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate in its monetary policy review tomorrow, 3 May 2013 to boost economic growth amid slowing wholesale price inflation. Kotak Mahindra Bank rose on strong Q4 results. Capital goods stocks rose on renewed buying.
Auto stocks were mixed. IT stocks gained on renewed buying. PSU OMCs rose after the Ministry of Petroleum and Natural Gas on Wednesday, 1 May 2013, said that the under-recovery on High Speed Diesel (HSD) applicable for first fortnight of May 2013, effective from 1 May 2013, has declined to Rs 3.80 per litre from Rs 6.42 per litre during the second fortnight of April 2013.
Bharti Airtel fell on weak Q4 results. Shares of other telecom firms rose. Infrastructure financing firm IDFC rose on strong Q4 results. Marico declined after reporting Q4 results. Dr Reddy's Laboratories reversed direction after hitting record high. Reliance Anil Dhirubhai Ambani (ADA) Group shares surged.
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 strengthened further to hit fresh intraday high in mid-morning trade. The uptrend on the bourses continued as key benchmark indices hit fresh intraday high in early afternoon trade. Key benchmark indices hit fresh intraday high in afternoon trade. The Sensex hit its highest level in more than 12 weeks. The 50-unit CNX Nifty hit its highest level in more than 12 weeks above the psychological 6,000 mark. The market held firm in mid-afternoon trade. The market trimmed intraday gains in late trade.
The S&P BSE Sensex jumped 231.59 points or 1.19% to settle at 19,735.77, its highest closing level since 4 February 2013. The index jumped 287.82 points at the day's high of 19,792 in mid-afternoon trade. The index fell 52.92 points at the day's low of 19,451.26 in early trade.
The CNX Nifty was up 69.15 points or 1.17% to 5,999.35, its highest closing level since 31 January 2013. The index hit a high of 6,019.45 in intraday trade. The index hit a low of 5,910.95 in intraday trade.
The total turnover on BSE amounted to Rs 2108 crore, lower than Rs 4322.52 crore on Tuesday, 30 April 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,272 shares advanced and 1,056 shares declined. A total of 132 shares were unchanged.
The BSE Mid-Cap index rose 0.77% and the BSE Small-Cap index gained 0.57%. Both these indices underperformed the Sensex.
All the 13 sectoral indices on BSE edged higher. The BSE Realty index (up 1.48%), BSE Capital Goods index (up 1.59%), BSE Teck index (up 2.07%) and BSE IT index (up 2.55%), outperformed the Sensex.
The BSE Metal index (up 0.13%), BSE Auto index (up 0.35%), BSE HealthCare index (up 0.57%), BSE PSU index (up 0.71%), BSE FMCG index (up 0.79%), BSE Consumer Durables index (up 0.93%), BSE Oil & Gas index (up 0.96%), BSE Power index (up 1.06%), BSE Bankex (up 1.17%), underperformed the Sensex.
Among the 30-share Sensex pack, 18 stocks rose while rest of them fell.
Index heavyweight Reliance Industries (RIL) rose 2.07% to Rs 804.50. The scrip hit high of Rs 806.80 and a low of Rs 783.25. 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.
PSU OMCs rose after the Ministry of Petroleum and Natural Gas on Wednesday, 1 May 2013, said that the under-recovery on High Speed Diesel (HSD) applicable for first fortnight of May 2013, effective from 1 May 2013, has declined to Rs 3.80 per litre from Rs 6.42 per litre during the second fortnight of April 2013. Indian Oil Corporation (IOC) (up 1.14%), HPCL (up 1.16%) and BPCL (up 0.93%) edged higher.
In the case of PDS Kerosene, the under-recovery for the month of May 2013 stands at Rs 27.93 per litre. In case of domestic LPG, the under-recovery for May 2013 stands at Rs 378.38 per cylinder. The under-recovery for diesel is calculated on fortnightly basis whereas the under-recovery for both PDS Kerosene and domestic LPG is calculated on monthly basis. PSU OMCs are currently incurring daily under-recovery of about Rs 256 crore on the sale of Diesel, PDS Kerosene and Domestic LPG at government controlled prices.
Further, PSU OMC have reported gross under-recoveries of Rs 161029 crore for the fiscal 2012-13, which was significantly higher than the under-recoveries of Rs 138541 crore during previous fiscal 2011-12.
Meanwhile, PSU OMCs on Tuesday, 30 April 2013, announced cut in petrol price by Rs 3 a litre on the back of a continuous fall in international oil prices and a strengthening rupee. The government has already freed pricing of petrol.
Coal India fell 0.64%. The company announced during market hours today, 2 May 2013, that it achieved coal production of 35.75 million tonnes in April 2013, which was 102% of targeted production of 35.15 million tonnes. The company's offtake stood at 39.89 million tonnes in April 2013, which was lower than the target of 40.03 million tonnes for the month.
Index heavyweight and cigarette major ITC rose 1.63% to Rs 334.25. The scrip hit high of Rs 334.85 and a low of Rs 325.10. 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.
Marico shed 2.35% after reporting Q4 results. The company's consolidated net profit rose 20% to 84 crore on 9% growth in revenue from operations to Rs 999 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results after market hours on Wednesday, 1 May 2013.
Marico said net profit before considering some one time accounting adjustments rose 1% to Rs 72 crore on 9% growth in revenue from operations to Rs 999 crore in Q4 March 2013 over Q4 March 2012.
The top line growth during the quarter was predominantly volume led, Marico said. Domestic FMCG business recorded a volume growth of 14% during the quarter. The company continues to focus on new consumer acquisition across its portfolios as against maximizing margins in the short term. The company believes that this is a sounder way of operating in developing and emerging markets that would lead to reaping dividends in the long run, Marico said.
Dr Reddy's Laboratories fell 0.68% to Rs 2010 on profit booking. The stock reversed direction after hitting record high of Rs 2035.05 in intraday trade today, 2 May 2013.
IT stocks gained on renewed buying. Infosys gained 2.32%. The company said during market hours today, 2 May 2013, that Golomt Bank, Mongolia's largest private banking and financial services provider, has selected Infosys Finacle to power its technology transformation.
Wipro gained 0.89%. Wipro issued weak revenue outlook at the time of announcement of Q4 March 2014 results on 19 March 2013. Wipro expects a between 0.63% fall to a growth of 1.57% in revenue from IT services business at between $1.575 billion to $1.61 billion in Q1 June 2013 over Q4 March 2013. At a post-result conference call, Wipro's management indicated that Q1 for Wipro will be the traditionally weak quarter on account of softness from the India business. The management expects Q2 September 2013 to be better than Q1 June 2013 for the company.
Wipro's IT services revenue rose 0.5% to $1.585 billion in Q4 March 2013 over Q3 December 2012. On year on year basis, IT services revenue rose 3.2% to $1.585 billion in Q4 March 2013 over Q4 March 2012.
Tata Consultancy Services (TCS) gained 3.33%. TCS posted good Q4 results on 17 April 2013. Its consolidated net profit rose 1.9% to Rs 3616 crore on 2.2% growth in revenue to Rs 16430 crore in Q4 March 2013 over Q3 December 2012. Net profit jumped 33.6% to Rs 13917 crore on 28.8% growth in revenue to Rs 62989 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The company clocked volume growth of 16.8% in FY 2013 over FY 2012.
At a post result conference call held on 17 April 2013, TCS' management said it expects FY 2014 to be better year than FY 2013 and anticipates defending the margins in narrow band despite the headwinds from the wage hikes through other levers.
HCL Technologies rose 3.88% to Rs 749. The stock had hit a record high of Rs 809 in intraday trade on 17 April 2013 after the company reported strong Q3 results. Consolidated net profit as per US accounting standards rose 7.8% to Rs 1040 crore on 2.4% growth in revenue at Rs 6425 crore in Q3 March 2013 over Q2 December 2012.
Mahindra Satyam rose 0.41%. Tech Mahindra gained 0.92%. Mahindra Satyam together with CanvasM Technologies (a wholly owned subsidiary of Tech Mahindra) announced today, 2 May 2013, commercial viability of its newest platform Global Inter-Carrier Gateway for Context Aware Mobile Commerce. The gateway aims at creating meaningful customer engagement while driving sales, Mahindra Satyam said in a statement.
Bank stocks rose on expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate in its monetary policy review tomorrow, 3 May 2013 to boost economic growth amid slowing wholesale price inflation.
Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), rose 1.55%.
Canara Bank fell 0.6% on weak Q4 results. The bank's net profit fell 12.51% to Rs 725.38 crore on 4.81% increase in total income to Rs 9471.57 crore in Q4 March 2013 oveQ4 March 2012. The result was announced during trading hours today, 2 May 2013.
Syndicate Bank galloped 8.01% to Rs 129.45 after net profit jumped 91.42% to Rs 592.34 crore on 8.05% growth in total income to Rs 4780.75 crore in Q4 March 2013 over Q4 March 2012. The bank announced Q4 results during trading hours today, 2 May 2013.
Among other PSU bank stocks, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank shed by 0.05% to 2.05%.
HDFC Bank gained 1.47%. HDFC Bank's net profit rose 30.06% to Rs 1889.84 crore on 21.08% increase in total income to Rs 11127.54 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 30.18% to Rs 6726.28 crore on 24.54% increase in total income to Rs 41917.49 crore in the year ended March 2013 over the year ended March 2012. The result was announced on 23 April 2013.
ICICI Bank rose 0.74%. The bank's net profit rose 21% to Rs 2304 crore on 10.26% rise in total income to Rs 12573.52 crore in Q4 March 2013 over Q4 March 2012. Net interest income increased 22% to Rs 3803 crore in Q4 March 2013 from Rs 3105 crore in Q4 March 2012. The cost-to-income ratio reduced to 40% in Q4 March 2013 from 41.6% in Q4 March 2012. The bank announced Q4 results on 26 April 2013.
Kotak Mahindra Bank rose 1.6% to Rs 716.90 on strong Q4 results. The stock hit record high of Rs 725 in intraday trade today, 2 May 2013. The bank's net profit rose 46.9% to Rs 436.21 crore on 28.67% rise in total income to Rs 2572.23 crore in Q4 March 2013 over Q4 March 2012. The bank announced its Q4 results during market hours today, 2 May 2013.
Kotak Mahindra Bank's net interest income jumped 31% to Rs 903 crore from Rs 688 crore in Q4 March 2012.
Net interest income for the year ended March 2013 rose 28% to Rs 3206 crore from Rs 2512 crore in the year ended March 2012.
Advances as on 31 March 2013 were up 24% to Rs 48469 crore from Rs 39079 crore as on 31 March 2012.
Restructured loans considered standard as on 31 March 2013 were at Rs 11 crore, 0.02% of net advances compared with Rs 20 crore as on 31 March 2012 or 0.05% of net advances.
The provision coverage ratio on non-performing assets as on 31 March 2013 was 68.2%.
Infrastructure financing firm IDFC rose 2.52% on strong Q4 results. The company's consolidated net profit jumped 57% to Rs 525.70 crore on 28.89% growth in total income from operations to Rs 2217.51 crore in Q4 March 2013 over Q4 March 2012. The result was announced on Wednesday, 1 May 2013.
Auto stocks were mixed. Car maker Maruti Suzuki India rose 0.73%. The company's total sales fell 3.1% to 97,302 units in April 2013 over April 2012. The company's domestic sales rose 0.3% to 90,523 units in April 2013 over April 2012. Exports fell 33.3% to 6,779 units in April 2013 over April 2012. The company announced its sales figures on Wednesday, 1 May 2013.
Mahindra & Mahindra (M&M) rose 3.3%. The company's automobile division reported a 2% rise in total sales to 41,432 in April 2013 over April 2012. Total domestic sales rose 2% to 39,902 in April 2013 over April 2012. Exports rose 8% to 1,530 during the period.
M&M's Farm Equipment Sector (FES) reported 38% rise in total sales to 23,202 units in April 2013 over April 2012. Total domestic sales rose 38% to 22,196 in April 2013 over April 2012. Exports rose 34% to 1,006 during the period.
Tata Motors declined 1.37% on weak April sales figures. The company's total sales fell 15% to 51,160 in April 2013 over April 2012. Total domestic sales fell 17% to 47,595 in April 2013 over April 2012. Exports rose 28% to 3,565 during the period.
Bajaj Auto declined 1.26% 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.
Hero MotoCorp slipped 1.77% after reporting April sales figures. The company's total sales fell 9.5% to 4.99 lakh in April 2013 over April 2012.
TVS Motor Company jumped 4.16%. The company's total sales fell 5.3% to 1.65 lakh in April 2013 over April 2012. Total two-wheeler sales fell 6.4% to 1.60 lakh in April 2013 over April 2012. Exports fell 2.5% to 21,714 units.
Capital goods stocks rose on renewed buying. Bharat Electronics (up 2.33%), Punj Lloyd (up 0.56%), Thermax (up 0.7%), Crompton Greaves (up 1.19%), ABB (up 0.26%), BEML (up 0.19%) edged higher. Siemens shed 0.9%.
L&T advanced 2.94% after the company said its Malaysia based switchgear subsidiary, Tamco Switchgear, has secured its largest single order of $85 million from Qatar General Electricity and Water Corporation.
Bharti Airtel fell 0.55% 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.
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 (up 0.25%), Idea Cellular (up 2.11%) gained. Tata Teleservices (Maharashtra) shed 0.35%.
Reliance Communications (RCom) spurted 8.30% to Rs 105.05. The stock hit a 52-week high of Rs 105.65 in intraday today, 2 May 2013. The company will announce its year ended 31 March 2013 results on 10 May 2013.
RCom announced last month that Samena Capital in a proposed consortium with certain other global PE funds is at an advanced stage of the process of due diligence and completion of definitive documents in relation to the acquisition of the company's global communications services business unit -- Reliance Globalcom. The intended time line for completion of the transaction is end May 2013. At this point, there can be no certainty that this will lead to a transaction, RCom said. A further announcement will be made in due course, if and when appropriate, the company added.
RCom also said that it has discontinued discussions with Batelco Group for selling its sake in Reliance Globalcom. RCom had earlier said in March 2013 that it was in discussions with Batelco Group with respect to Reliance Globalcom.
Reliance Anil Dhirubhai Ambani (ADA) Group shares surged. Reliance Broadcast Network, Reliance Capital, Reliance MediaWorks and Reliance Power gained by 1.54% to 3.35%.
Reliance Infrastructure gained 3.93%. The company through its special purpose vehicle (SPV) -- Mumbai Metro One (MMOPL) -- has successfully conducted Mumbai Metro's first trial run. The project is at the advance stage of completion and metro is expected to commence commercial operation by the end of this year.
MMOPL is SPV created to develop, implement and operate Mumbai's first Metro Line, on a public-private-partnership (PPP) model. It is a consortium formed by Reliance Infrastructure, MMRDA and Veolia Transport SA of France. The Project was awarded to MMOPL for the Concession period of 35 years. Mumbal Metro One corridor is 11.40 km long, providing connectivity from Versova (Western Mumbai) to Ghatkopar (Eastern Mumbai).
Realty stocks rose on expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate at its monetary policy review tomorrow, 3 May 2013 to economic boost growth amid slowing wholesale price inflation. Purchases of both residential and commercial property are largely driven by finance. DLF, HDIL, D B Realty and Unitech gained by 0.44% to 5.38%.
India's factories lost momentum in April as output grew at its weakest pace in over four years, but a jump in export orders augured well for the coming months, a survey showed on Thursday. The HSBC Manufacturing Purchasing Managers' Index (PMI), fell for the second straight month in April, dipping to 51 from 52 in March. The reading for April was the lowest since November 2011.
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. Bank of Baroda unveils Q4 results on 13 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 Reserve Bank of India today, 2 May 2013, said in a report which serves as a backdrop to the Monetary Policy Statement 2013-14 to be announced tomorrow, 3 May 2013, that the macro-financial risks require cautious monetary policy stance from the central bank ahead. In view of macro-financial risks that stay significant, headline inflation remaining above the threshold and consumer price inflation remaining high, the space for action for 2013-14 remains very limited, the RBI said. If some of the risks come to fore, policy re-calibration may become necessary in either direction, it said. A slow-paced recovery in the economy is likely during the latter part of 2013-14, contingent on improved governance and concerted action to resolve structural bottlenecks, especially in infrastructure sector, the central bank said. Output gap is likely to reduce, but remain negative, it said.
The headline inflation is likely to remain range-bound in 2013-14, with some further moderation in the first half of the year 2013-14 due to subdued producers' pricing power and falling global commodity prices, before it increases somewhat in the second half of the year largely due to base effects. The RBI's survey of outside professional forecasters shows anticipation of a modest recovery with growth in 2013-14 at 6% from 5% and average WPI inflation to moderate to 6.5% from 7.3%. Surveys show that inflation expectations have moderated slightly, while business expectations remain subdued.
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.
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 held steady on Thursday after European Central Bank (ECB) rate cut. Key benchmark indices in France and Germany were up by 0.11% to 0.23%. However, UK's FTSE 100 was down 0.21%.
The ECB said on Thursday it decided to lower its benchmark interest rate by 25 basis points to 0.5%, as expected.
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 0.17% to 1.32%. Key benchmark indices in Singapore and Taiwan rose by 0.43% to 1.02%.
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 37 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.
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