Key benchmark indices dropped as weakness in Asian and European stocks dampened investors' sentiment. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their lowest level in a week. Nifty fell below the psychological 6,000 mark. The Sensex was provisionally down 272.88 points or 1.33%, off close to 325 points from the day's high and up about 10 points from the day's low. The market breadth, indicating the overall health of the market, was weak.
Indian stocks snapped two-day winning streak today, 13 February 2014.
Cipla slumped on weak Q3 results. Coal India dropped on weak Q3 results. Bank stocks fell across the board after latest data announced after market hours on Wednesday, 12 February 2014 showed that inflation based on the combined consumer price index (CPI) for urban and rural India for January 2014 eased to 24-month low level. Sun Pharmaceutical Industries edged higher on strong Q3 results. Hindalco Industries dropped on weak Q3 results.
The market edged higher in early trade. It slipped into the red and hit fresh intraday low in morning trade. It extended losses and hit fresh intraday low in mid-morning trade. It further weakened and hit fresh intraday low in early afternoon trade. It hit fresh intraday low in afternoon trade. It extended losses and hit fresh intraday low in mid-afternoon trade. It slumped and hit fresh intraday low in late trade.
As per provisional figures, the S&P BSE Sensex was down 272.88 points or 1.33% to 20,175.61. The index dropped 283.82 points at the day's low of 20,164.67 in late trade, its lowest level since 6 February 2014. The index gained 55.37 points at the day's high of 20,503.86 in early trade.
The CNX Nifty was down 89.10 points or 1.46% to 5,994.90, as per provisional figures. The index hit a low of 5,991.10 in intraday trade, its lowest level since 6 February 2014. The index hit a high of 6,094.40 in intraday trade.
The BSE Mid-Cap index was down 57.75 points or 0.91% to 6,300. The BSE Small-Cap index was down 68.75 points or 1.08% at 6,280.34. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1662.44 crore, lower than Rs 1880.27 crore on Wednesday, 12 February 2014.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,668 shares fell and 915 shares rose. A total of 150 shares were unchanged.
Among the 30-share Sensex pack, 26 stocks fell and rest rose.
Index heavyweight Reliance Industries (RIL) declined 1.4% as media reports suggested that the Anti-Corruption Bureau of the Delhi state government has registered a First Information Report (FIR) on Chief Minister Arvind Kejriwal's complaint on gas pricing. No individual has been named in the FIR even as Kejriwal's complaint mentioned Reliance Industries Chairman Mukesh Ambani and Union Minister Murli Deora and Verappa Moily. The FIR has been registered under sections dealing with criminal conspiracy, cheating and other sections of the Prevention of Corruption Act, reports added. Kejriwal had Tuesday, 11 February 2014, called for an investigation into what he alleged was collusion between government policymakers and Reliance Industries in a plan to raise natural gas prices this year.
In a statement issued after trading hours on Tuesday, 11 February 2014, RIL said that the direction of the Delhi state government to order the registration of an FIR in relation to the decision of Union Cabinet to revise the price of gas is shocking. The complaint and each of the allegations on the basis of which the Delhi government has taken such action are completely baseless and devoid of any merit or substance whatsoever, RIL said on Tuesday. The allegations appear to have been made by persons who are also Petitioners in the Supreme Court of India in a petition in which similar allegations have been made, RIL said. The issue of gas pricing is also a contentious issue between the contracting parties being the Government of India and the contractors, RIL said. "We deny these irresponsible allegations and propose to resort to the available legal remedies to protect our reputation and preserve the pioneering efforts and investment made by Reliance so far. We also remain fully committed to the development of oil and gas sector in India within the parameters of law", RIL said.
Hindalco Industries dropped 3.43% on weak Q3 results. The company's net profit fell 23.04% to Rs 334 crore on 5.83% growth in revenues from operations to Rs 7273 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced during market hours. Net profit was lower due to higher effective tax rate for the quarter.
Sun Pharmaceutical Industries rose 0.19% on strong Q3 results. The company's consolidated net profit rose 74% to Rs 1531 crore on 50% rise in net sales to Rs 4287 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced during market hours. EBITDA rose 57% to rs 1975 crore in Q3 December 2013 over Q3 December 2012 resulting EBITDA margin of 46%, compared to 44% for Q3 December 2012.
Consolidated year ending 31 March 2014 (FY 2014) revenue growth guidance revised to 29% compared to previous guidance of 25%. The revised guidance takes in to account the performance achieved in nine months of year ending March 2014, higher base of Q4 March 2013 on consolidation of acquisitions as well the risks associated with increase in competition for some products. Guidance is at constant exchange rate.
Dilip Shanghvi, Managing Director of the company said, "Our overall performance reflects the focus on execution of our strategy. We are developing a differentiated and specialty business and continue to evaluate opportunities to enhance our global presence."
Cipla lost 7.82%, with the stock extending intraday losses on weak Q3 results. The company's consolidated net profit fell 17% to Rs 284 crore on 22% growth in income from operations to Rs 2581 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Wednesday, 12 February 2014.
Cipla's EBITDA (earnings before interest, taxation, depreciation and amortization) declined 10% to Rs 467 crore in Q3 December 2013 over Q3 December 2012.
Cipla said that the current year figures include the relevant results of Cipla's subsidiaries from the date they became subsidiary of the company and therefore the corresponding figures for the previous period are not comparable.
Domestic revenue rose 12.6% to Rs 1044 crore in Q3 December 2013 over Q3 December 2012. The growth in domestic revenues was largely on account of growth in respiratory, anti-infectives and cardiology.
Exports of formulations rose 34.4% to Rs 1352 crore in Q3 December 2013 in Q3 December 2012. Previous year's results include one-time profit share revenues from Escitalopram through the company's US partner, Cipla said. Exports of APIs rose 14% to Rs 157 crore in Q3 December 2013 over Q3 December 2012. The growth in export revenue was primarily due to growth in anti-retroviral, anti-cancer, anti-allergic and anti-biotic segments, Cipla said in a statement.
Coal India dropped 3.39% on weak Q3 results. The company's consolidated net profit fell 11.39% to Rs 3894.09 crore on 2.91% fall in total income to Rs 19110.74 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Wednesday, 12 February 2014. Coal India's raw coal production rose to 118.71 million tonne (MT) in Q3 December 2013 from 117.37 MT in Q3 December 2012. Raw coal offtake fell to 117.16 MT in Q3 December 2013 from 120.45 MT in Q3 December 2012.
Bank stocks fell across the board after latest data announced after market hours on Wednesday, 12 February 2014 showed that inflation based on the combined consumer price index (CPI) for urban and rural India for January 2014 eased to 24-month low level. Among private sector banks, ICICI Bank (down 2.12%), Yes Bank (down 2.9%), HDFC Bank (down 1.97%), Kotak Mahindra Bank (down 2.41%) and Axis Bank (down 1.89%), declined.
Among PSU bank stocks, State Bank of India, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank shed 2% to 5.56%.
Page Industries fell 1.13% after net profit surged 36.2% to Rs 34.63 crore on 39.9% growth in net sales to Rs 302.51 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Wednesday, 12 February 2014.
Eros International Media rose 2.86% after consolidated net profit jumped 41.08% to Rs 91.99 crore on 17.15% growth in total income from operations to Rs 432.68 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced during trading hours today, 13 February 2014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.38, lower than its close of 62.10 on Wednesday, 12 February 2014.
Finance Minister P Chidambaram will present the Vote-on-Account or interim budget on 17 February 2014. The objective of a Vote-on-Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections. The next full-fledged budget will be presented by the new government which comes to power after the Lok Sabha polls in April-May 2014.
Inflation based on the combined consumer price index (CPI) for urban and rural India for January 2014 eased to 24-month low level at 8.79% (y-o-y), marking an deceleration from 9.87% (y-o-y) seen in previous month. Moreover, the index for December decreased to 0.43% (m-o-m) from 1% (m-o-m) seen previous month. The fall in index of food category, especially vegetables helped the CPI inflation to ease. The falling vegetable prices helped the combined CPI to record single digit growth. The data was announced after market hours on Wednesday, 12 February 2014.
Industrial output fell 0.6% in December 2013 over December 2012 after contracting a revised 1.3% in November. The indices of industrial production for the Mining, Manufacturing and Electricity sectors for the month of December 2013 were 0.4%, - 1.6% and 7.5% respectively. The data was announced after market hours on Wednesday, 12 February 2014.
Inflation based on the wholesale price index (WPI) is also expected to ease in January 2014. WPI inflation is seen easing to 5.9% in January 2014 from 6.16% in December 2013, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil data on inflation based on the wholesale price index (WPI) for January 2014 at 12 noon tomorrow, 14 February 2014.
The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Sighting elevated consumer price inflation, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
European stocks retreated on Thursday as companies from BNP Paribas SA to Zurich Insurance Group AG reported earnings that missed estimates. Key benchmark indices in France, Germany and UK fell 0.14% to 0.45%.
Asian stocks dropped on Thursday after the recent advances. Key benchmark indices in China, Japan, Hong Kong, South Korea, Indonesia and Taiwan fell by 0.1% to 1.79%. Singapore's Straits Times rose 0.15%.
Trading in US index futures indicated that the Dow could fall 66 points at the opening bell on Thursday, 13 February 2014. US stocks were mostly lower on Wednesday on weak earnings from tobacco company Lorillard and household products maker Procter & Gamble.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion. The Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.
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