A bout of initial volatility was witnessed as key benchmark indices alternately moved between the gains and losses near the flat line. The S&P BSE Sensex was currently almost unchanged for the day at 18,665.56, off close to 40 points from the day's high and up about 45 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Ranbaxy Laboratories jumped after the company reported improved Q2 results. Sun Pharmaceuticals Industries declined ahead of company's Q1 results tomorrow, 9 August 2013. Apollo Hospitals Enterprise rose after Q1 result.
Foreign institutional investors (FIIs) sold shares worth a net Rs 350.93 crore on Wednesday, 7 August 2013, as per provisional data from the stock exchanges.
At 9:30 IST, the S&P BSE Sensex was flat at 18,665.56. The index rose 38 points at the day's high of 18,702.88 in early trade. The index fell 43.21 points at the day's low of 18,621.67 in early trade.
The CNX Nifty was up 6.60 points or 0.16% to 5,527.70. The index hit a high of 5,532 in intraday trade. The index hit a low of 5,510.05 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 508 shares rose and 251 shares fell. A total of 25 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks rose and rest of them fell. TCS (down 1.63%), Wipro (down 1.6%) and Tata Power Company (down 1.56%), edged lower.
Maruti Suzuki India rose 2.22%. The Reserve Bank of India on Wednesday, 8 August 2013, lifted restrictions placed on foreign institutional investors buying shares in Maruti Suzuki India (MSIL) after their holdings fell below the prescribed limit. The ceiling on investment by foreign institutional investors (FIIs) in Maruti Suzuki is 24%. Total foreign holding in Maruti Suzuki was 22.10% as at 30 June 2013, of which 22.03% was held by FIIs.
Sun Pharmaceuticals Industries declined 5.1%. The company unveils Q1 results tomorrow, 9 August 2013.
Ranbaxy Laboratories jumped 5.57% after the company reported improved Q2 results. The company after trading hours on Wednesday, 7 August 2013, reported consolidated net loss of Rs 524.24 crore for Q2 June 2013, lower than net loss of Rs 585.72 crore in Q2 June 2012. Sales declined 17.83% to Rs 2633.20 crore in Q2 June 2013 over Q2 June 2012. Ranbaxy said that base business sales registered double digit growth and base business margins continued to improve in Q2 June 2013.
Ranbaxy said that bottom line in Q2 June 2013 was adversely impacted by the depreciation of rupee against the dollar. Though favourable to Ranbaxy's export business, the rupee depreciation had an adverse impact on the company's profitability mainly on account of application of the accounting standards that require marking to market the entire derivatives and foreign currency denominated loans outstanding. There was a net charge of Rs 540.30 crore on this account in Q2 June 2013, Ranbaxy said.
Ranbaxy said that the macroeconomic environment continued to be challenging in certain countries in Western Europe. Specifically in France, the generic pharma industry has been impacted adversely by continuing pricing and trade challenges. Ranbaxy has accordingly taken an impairment of goodwill of Rs 119.20 crore in Q2 June 2013 pertaining to its operations in France in line with the accounting standards.
Ranbaxy said the company registered profit after tax of Rs 135.20 crore in Q2 June 2013 if one excludes the impact of forex losses and other exceptional items.
Ranbaxy said sales declined on year on year basis in Q2 June 2013 due to base effect. The company said sales in Q2 June 2012 was boosted by contribution from exclusivities. On a like-to-like basis, sales grew in double digits over the corresponding quarter, Ranbaxy said.
Mr. Arun Sawhney, CEO & Managing Director, Ranbaxy said that the company's focus on branded markets and business continues and this will help navigate the growth of Ranbaxy in the coming years. He also said that the management is consciously working on efficiency improvement across the organization.
Apollo Hospitals Enterprise rose 2.34% after Q1 result. The company after trading hours on Wednesday, 7 August 2013, said its consolidated net profit rose 3% to Rs 78.30 crore on 16% growth in revenue to Rs 1021.80 crore in Q1 June 2013 over Q1 June 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 9% to Rs 160.80 crore in Q1 June 2013 over Q1 June 2012.
On standalone basis, the company's net profit rose 13% to Rs 78.90 crore on 15% growth in revenue to Rs 895 crore in Q1 June 2013 over Q1 June 2012. EBITDA rose 12% from Rs 130.40 crore in Q1 June 2013 over Q1 June 2012. The company launched two new hospitals in Q4 March 2013. Excluding the impact of the initial operating losses of these new facilities, the company reported a 16.6% rise in EBITDA from existing business to Rs 152.20 crore in Q1 June 2013 over Q1 June 2012. EBITDA margin by 27 basis points on year on year basis at 17.15% in Q1 June 2013, excluding the impact of the initial operating losses of new hospitals opened in Q4 March 2013.
The company said that it will be adding 1,000 beds this year.
The stock market remains closed tomorrow, 9 August 2013, on account of Ramzan Id.
Asian stocks rose on Thursday, 8 August 2013, after China reported much better than expected trade results for July, marking a sharp recovery from the previous month. Key benchmark indices in Hong Kong, Japan, South Korea, China and Taiwan were up 0.05% to 1.34%. Stock markets in Singapore, Indonesia and Malaysia were closed for holidays.
China's exports and imports rebounded in July, exceeding estimates and adding to signs that the world's second-largest economy is stabilizing following a two-quarter slowdown. Shipments abroad rose 5.1% from a year earlier, the General Administration of Customs said in Beijing today. Imports jumped 10.9%, leaving a trade surplus of $17.8 billion.
The Bank of Japan today, 8 August 2013, refrained from adding to unprecedented monetary stimulus after a two-day monetary policy review. Governor Haruhiko Kuroda's board stuck with an April pledge to expand the monetary base by 60 trillion yen to 70 trillion yen ($723 billion) per year, a statement released in Tokyo today showed.
Australian employers unexpectedly cut payrolls in July and unemployment held at an almost four-year high, denting Prime Minister Kevin Rudd's bid for a come-from-behind election win. The number of people employed fell 10,200, the statistics bureau said in Sydney today.
US stocks lost ground for a third consecutive session on Wednesday on growing uncertainty over when the Federal Reserve will start to wind down its stimulus, which has been a driving force behind the rally in equities this year. Federal Reserve Bank of Cleveland President Sandra Pianalto said on Wednesday that the central bank would be prepared to scale back asset purchases if the labor market remains on the stronger path followed since last fall. Charles Evans, the president of the Federal Reserve Bank of Chicago, said on Tuesday that the Fed would probably scale back its bond-buying program later this year, perhaps beginning as early as next month, depending on economic data. That echoed comments made earlier on Tuesday by Dennis Lockhart, the president of the Federal Reserve Bank of Atlanta.
The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities. Federal Reserve Chairman Ben Bernanke has on several occasions stressed that the tapering process is dependent on an improvement in data. Fed's bond-buying program has kept global markets flush with liquidity in recent years.
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