A bout of volatility was seen on mid-afternoon trade as the key benchmark indices pared gains after staging a reversal from intraday low. The S&P BSE Sensex was currently a tad above the psychological 20,000 mark, having alternately moved above and below that mark earlier in the day. The Sensex was up 11.25 points or 0.06%, off 57.05 points from the day's high and up 60.08 points from the day's low. The market breadth, indicating the overall health of the market, was negative. Index heavyweight and cigarette major ITC was slightly lower. Another index heavyweight Reliance Industries (RIL) hovered in the red.
Union Bank of India spurted after reporting Q4 results. FMCG stocks were in demand. Ranbaxy Laboratories extended Wednesday's fall triggered after reporting weak Q1 results during trading hours on Wednesday, 8 May 2013
Key benchmark indices pared gains after an initial upmove triggered by higher Asian stocks. The barometer index, the S&P BSE Sensex, hit its highest level in over 14 weeks above the psychological 20,000 mark. The CNX Nifty also scaled its highest closing level in more than 14 weeks. Key benchmark indices reversed initial gains to fall to intraday low in morning trade. The Sensex hovered in red in mid-morning trade. Key benchmark indices hovered in negative zone in early afternoon trade. The market moved into positive terrain in afternoon trade. A bout of volatility was seen on mid-afternoon trade as the key benchmark indices pared gains after staging a reversal from intraday low.
Foreign institutional investors (FIIs) bought shares worth a net Rs 976.99 crore on Wednesday, 8 May 2013, as per provisional data from the stock exchanges.
At 14:21 IST, the S&P BSE Sensex was up 11.25 points or 0.06% to 20,001.43. The index gained 68.30 points at the day's high of 20,058.48 in early trade, its highest level since 30 January 2013. The index fell 48.83 points at the day's low of 19,941.35 in early afternoon trade.
The CNX Nifty was up 3.25 points or 0.05% to 6,072.55. The index hit a high of 6,084.70 in intraday trade, its highest level since 29 January 2013. The index hit a low of 6,053.70 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,157 shares declined and 1,124 shares advanced. A total of 153 shares were unchanged.
The total turnover on BSE amounted to Rs 1438 crore by 14:20 IST.
Among the 30-share Sensex pack, 16 stocks gained while rest of them declined.
Index heavyweight Reliance Industries (RIL) shed 1.29% to Rs 818.40 on profit booking. The scrip hit high of Rs 832 and a low of Rs 815.50 so far during the day. The stock had gained 3.48% in three trading days to Rs 829.10 on 8 May 2013 from a recent low of Rs 801.20 on 3 May 2013.
Index heavyweight and cigarette major ITC shed 0.07% to Rs 342.55, with the stock reversing direction after hitting a record high of Rs 345.85 in intraday trade today, 9 May 2013. The tock hit low of Rs 341.55 in intraday trade today, 9 May 2013. The Uttar Pradesh state government on Tuesday, 7 May 2013, slashed VAT on cigarette/cigar from existing 50% to 25%. The state government had last year increased VAT on cigarette/cigar and tobacco products from 12.5% to 50%.
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.
Other cigarette stocks gained. Godfrey Phillips India jumped 9.51%. VST Industries rose 2.67%.
FMCG major Hindustan Unilever (HUL) was down 0.11% to Rs 586.05. The company after market hours on Wednesday, 8 May 2013, said that the open offer by its parent firm Unilever Plc to buy additional 22.52% stake in the company at Rs 600 per share would begin on 21 June 2013 and close on 4 July 2013. Unilever Plc plans to hike its stake in Hindustan Unilever to 75% through the open offer from its current holding of 52.48%.
HUL's net profit before exceptional items rose 18% to Rs 781 crore on 12.13% growth in total income from operations to Rs 6465.81 crore in Q4 March 2013 over Q4 March 2012. The company announced the Q4 results during market hours on 29 April 2013.
Among other FMCG stocks, Colgate-Palmolive (India) (up 0.71%), Nestle India (up 0.18%), Tata Global Beverages (up 0.8%) Britannia Industries (up 0.33%), Godrej Consumer Products (up 0.81%) gained.
Pharma major Sun Pharmaceutical Industries lost 3.16% to Rs 954 on profit booking. The stock had scaled a record high of Rs 997.95 on 7 May 2013.
Ranbaxy Laboratories fell 1.1%, with the stock extending Wednesday's 2.78% fall. The company's consolidated net profit declined 89.91% to Rs 125.75 crore on 33.29% decline in total income to Rs 2562.96 crore in Q1 March 2013 over Q1 March 2012. The company announced Q1 results during trading hours on Wednesday, 8 May 2013.
Ranbaxy Laboratories said that the profitability in Q1 March 2013 was lower than in Q1 March 2012 primarily because of the base effect. The revenue and profitability in Q1 March 2012 was boosted by contribution from exclusivity drug launches.
Lupin gained fell 0.55% on profit booking. The stock had gained 2.43% to Rs 730.65 after striking a record high of Rs 738.80 in intraday trade on Wednesday, 8 May 2013. Lupin's consolidated net profit surged 162.2% to Rs 408.10 crore on 34.7% increase in net sales to Rs 2537.40 crore in Q4 March 2013 over Q4 March 2012. The company's consolidated net profit rose 51.5% to Rs 1314.20 crore on 35.9% growth in net sales to Rs 9461.60 crore in the year ended March 2013 over the year ended March 2012. The company announced results during trading hours on Wednesday, 8 May 2013.
Union Bank of India surged 3.39% as the bank's ratio of net non-performing assets to net advances decreased to 1.61% as on 31 March 2013, from 1.7% each as on 31 December 2012 and as on 31 March 2012. The bank announced Q4 results during trading hours today, 9 May 2013.
Union Bank of India's ratio of gross non-performing assets (NPAs) to gross advances decreased to 2.98% as on 31 March 2013, from 3.36% as on 31 December 2012 and 3.01% as on 31 March 2012.
Union Bank of India's net profit rose 2.09% to Rs 789.38 crore on 15.41% growth in total income to Rs 7500.59 crore in Q4 March 2013 over Q4 March 2012.
Union Bank of India's provisions and contingencies surged 26.75% to Rs 655.53 crore in Q4 March 2013 over Q4 March 2012. Provision coverage ratio stood at 65.21% as on 31 March 2013.
The bank's capital adequacy ratio (CAR) as per Basel II norms improved to 11.45% as on 31 March 2013, from 10.78% as on 31 December 2012 but declined from 11.85% as on 31 March 2012.
Union Bank of India's net profit rose 20.74% to Rs 2157.93 crore on 17.89% growth in total income to Rs 27676.73 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
On consolidated basis, Union Bank of India's net profit rose 21.38% to Rs 2131.15 crore on 19.46% growth in total income to Rs 28036.57 crore in FY 2013 over FY 2012.
Union Bank of India's board of directors at a meeting held today, 9 May 2013, recommended dividend of Rs 8 per share for FY 2013.
Parliament was adjourned sine die on Wednesday, two days before scheduled end of the Budget session without passing crucial bills like the Food Security Bill and the Land Acquisition Bill. The session, one of the least productive on record, has been disrupted for two weeks over various issues.
The stock exchanges have decided to conduct a special trading session for a short duration on Saturday, 11 May 2013, as the Bombay Stock Exchange (BSE) is testing its disaster recovery software. Trading will start at 11:15 IST and end at 12:45 IST.
The focus of the market is on Q4 results. NTPC announces Q4 results tomorrow, 10 May 2013. Bank of Baroda unveils Q4 results on 13 May 2013. Dr Reddy's Laboratories and Reliance Infrastructure unveil Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. ITC unveils Q4 results on 17 May 2013. Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Bharat Heavy Electricals (Bhel) announces Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013 BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
The Central Statistics Office (CSO) will issue data on industrial production for March 2013 tomorrow, 10 May 2013. Industrial production rose 0.6% in February 2013.
The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The central bank said that with upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from MSP increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
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 stock markets edged lower on Thursday after Chinese data showed consumer price inflation rose more than expected in April, stoking fears the government will withhold more easing measures. Key benchmark indices in France, Germany and UK dropped by 0.08% to 0.82%.
Asian stocks rose Thursday with South Korean stocks jumping after a surprise rate cut by the nation's central bank. Key benchmark indices in Taiwan, South Korea, Indonesia and Singapore rose by 0.23% to 1.18%. Key benchmark indices in Japan, China and Hong Kong fell by 0.14% to 0.66%.
China's consumer price index rose more than expected in April, while wholesale prices suffered a steeper fall. The April CPI showed a gain of 2.4% from a year earlier, led by a 4% rise in food prices, the National Bureau of Statistics said Thursday. The rise was more than March's 2.1% increase, though below February's spike of 3.2%. The producer price index, meanwhile, fell by the most since October, dropping 2.6% against a decline of 1.9% in March.
The Bank of Korea on Thursday cut its key interest rate by a quarter-point to 2.5%.
Trading in US index futures indicated that the Dow could fall 11 points at the opening bell on Thursday, 9 May 2013. US stocks rose Wednesday, with the S&P 500 extending record gains into a fifth session, after companies including Electronic Arts Inc. projected earnings that beat estimates.
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