Key benchmark indices hovered in the positive terrain in mid-morning trade. The S&P BSE Sensex was up 21.72 points or 0.12%, off close to 50 points from the day's high and up about 65 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Realty stocks gained for the second straight day. L&T rose on bargain hunting after recent losses. Ranbaxy Laboratories extended intraday gain triggered by the company reporting improved Q2 results after trading hours on Wednesday, 7 August 2013. HDFC also extended intraday gain.
A bout of initial volatility was witnessed as key benchmark indices alternately moved between the gains and losses near the flat line. Volatility continued in morning trade. The Sensex hovered in positive terrain in mid-morning trade.
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 11:20 IST, the S&P BSE Sensex was up 21.72 points or 0.12% to 18,686.60. The index rose 69.72 points at the day's high of 18,734.60 in morning trade. The index fell 43.21 points at the day's low of 18,621.67 in early trade.
The CNX Nifty was up 9.60 points or 0.17% to 5,528.70. The index hit a high of 5,544.20 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 positive. On BSE, 1,071 shares rose and 740 shares fell. A total of 110 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks rose and rest of them fell. Maruti Suzuki India (up 2.83%), Hindalco Industries (up 2.14%) and Coal India (up 2%), edged higher.
Ranbaxy Laboratories jumped 8.34%, with the stock extending intraday gain after the company reported improved Q2 results after trading hours on Wednesday, 7 August 2013. The company 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.
Ranbaxy during market hours today, 8 August 2013 said that its joint venture in Malaysia viz. Ranbaxy Malaysia Sdn Bhd (RMSB) has been allocated the site for setting up a greenfield manufacturing facility in Malaysia. The greenfield manufacturing facility will be built on an area of about 15 acres, with an investment of around $35 million providing employment to over 200 people. This will be Ranbaxy's second manufacturing facility in Malaysia. RMSB is a joint venture between Ranbaxy and Malaysian shareholders. RMSB is one the major generic companies in Malaysia.
HDFC rose 2.21%, with the stock extending intraday gain.
L&T rose 0.65% to Rs 786 on bargain hunting. The stock had hit a 52-week low of Rs 771.35 in intraday trade on Wednesday, 7 August 2013.
Indusind Bank fell 1.98%. The bank announced during market hours today, 8 August 2013 that it has opened two new branches in the Gotri Main Road and Nizampura area of Vadodara. With the inauguration of these two branches, Induslnd Bank now has five branches in Vadodara and thirty six branches overall in the state of Gujarat.
Realty stocks gained for the second straight day. DLF (up 3.78%), D B Realty (up 1.76%) and HDIL (up 2.93%), edged higher.
Unitech fell 2.33% on profit booking after Wednesday's 14.72% rally. The company during market hours on Tuesday, 6 August 2013, reported 37.08% rise in consolidated net profit to Rs 62.89 crore on 35.13% rise in total income to Rs 597.67 crore in Q1 June 2013 over Q1 June 2012.
Gujarat Gas Company surged 17.07% after consolidated net profit surged 90.24% to Rs 100.60 crore on 2.49% decline in net sales to Rs 746.80 crore in Q2 June 2013 over Q2 June 2012. The result was announced after market hours on Wednesday, 7 August 2013.
Gujarat Gas Company's consolidated net profit jumped 69.08% to Rs 100.60 crore on 2.11% decline in net sales to Rs 746.80 crore in Q2 June 2013 over Q1 March 2012.
The company said the total volume of gas sold during the quarter was 239 million metric standard cubic meters (mmscm) in Q2 June 2013, which was lower than 264 mmscm in Q1 March 2013. While additional volumes have been commissioned in all the segments, volumes in the industrial segment have been undergoing a churn with increasing price of gas.
The company said it connected more than 17,500 new residential customers during the quarter, taking the total number of new domestic connections to 28,500 till June 2013. The company also commissioned more than 43,000 standard cubic meters of gas per day (scmd) of new volumes in the industrial sector during the quarter.
Commenting on the second quarter results, Mr. Sugata Sircar, Managing Director, Gujarat Gas said: "Re-gasified liquefied natural gas (RLNG) cost came off the peak levels it had reached in the immediately preceding quarter, thereby enabling some recovery of margins which were impacted in the preceding quarter. RLNG continues to be a significant portion of the sourcing portfolio. We continue to carefully balance between volumes and prices to sustain value."
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, South Korea, and China were up 0.21% to 0.65%. Key benchmark indices in Japan and Taiwan fell by 0.13% to 0.31%. 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.
Trading in US index futures indicated that the Dow could gain 38 points at the opening bell on Thursday, 8 August 2013. 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 in a bid to hold interest rates low and encourage economic growth. 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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