Key benchmark indices hovered in positive terrain in mid-afternoon trade. The market breadth, indicating the overall health of the market, once again turned negative from positive. The barometer index, the S&P BSE Sensex, was up 31.97 points or 0.15%, off close to 45 points from the day's high and up about 75 points from the day's low.
Dr Reddy's Laboratories fell on profit booking after reporting strong Q2 result. State Bank of India (SBI) extended intraday gain after the bank announced reduction in interest rates on bulk deposits (Rs 1 crore and above) across maturities. Adani Enterprises declined after reverse turnaround in Q2 September 2013. Oberoi Realty dropped on weak Q2 result.
A bout of initial volatility was witnessed as key benchmark indices alternately swung between positive and negative zone. The Sensex regained the psychological 21,000 mark, after falling below that level in initial trade. Intraday volatility continued as key benchmark alternately moved between positive and negative zone in morning trade. The Sensex trimmed gains after hitting fresh intraday high in mid-morning trade. Key benchmark indices moved in a narrow range in positive zone in early afternoon trade. Key benchmark indices pared gains after hitting fresh intraday high in afternoon trade. The Sensex hit its highest level in more than five years and the 50-unit CNX Nifty hit its highest level in almost three years. The Sensex hovered in positive terrain in mid-afternoon trade.
The market may remain volatile during the last hour or so of trade as traders roll over positions in the futures & options (F&O) segment from the near month October 2013 series to November 2013 series. The near month October 2013 derivatives contracts expire today, 31 October 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1016.77 crore on Wednesday, 30 October 2013, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was up 31.97 points or 0.15% to 21,065.94. The index jumped 77.02 points at the day's high of 21,110.99 in afternoon trade, its highest level since 10 January 2008. The index fell 41.99 points at the day's low of 20,991.98 in early trade.
The CNX Nifty was up 13.10 points or 0.21% at 6,264.80. The index hit a high of 6,273.60 in intraday trade, its highest level since 11 November 2010. The index hit a low of 6,235.90 in intraday trade
The market breadth, indicating the overall health of the market, once again turned negative from positive. On BSE, 1,242 shares fell and 1,124 shares rose. A total of 179 shares were unchanged. The breadth has alternatively swung between postive and negative terrain since early afternoon trade.
Among the 30-share Sensex pack, 16 stocks fell and rest of them rose. Sesa Sterlite (up 2.02%), Bharti Airtel (up 1.62%) and Wipro (up 1.5%), edged higher from the Sensex pack.
State Bank of India (SBI) rose 3.66%, with the stock extending intraday gains. The bank announced during trading hours today, 31 October 2013, that it has decided to revise its interest rates on bulk (Rs 1 crore and above) and retail term deposits (below Rs 1 crore) with effect from Friday, 1 November 2013. The bank has revised interest rate downwards on bulk deposits of all tenors. Interest rate on bulk term deposits for the period 1 year to less than 2 years has been reduced to 8.25% from 8.75%.
The bank has decided to increase interest rate on retail term deposits of maturity period of 180 days to 210 days to 7% from 6.8%.
SBI announced after market hours on Wednesday, 30 October 2013, that its central board has approved raising upto Rs 2000 crore through preferential allotment of equity shares in favour of the Government of India.
Dr Reddy's Laboratories fell 1.36% on profit booking after reporting strong Q2 result. The company's consolidated net profit jumped 76% to Rs 690.30 crore on 17% increase in revenue to Rs 3357.50 crore in Q2 September 2013 over Q2 September 2012. The result hit the market during trading hours.
Adani Enterprises lost 4.31% on reverse turnaround in Q2 September 2013. The company reported a consolidated net loss of Rs 416.95 crore in Q2 September 2013, compared with net profit of Rs 320.21 crore in Q2 September 2012. Total income jumped 33% to Rs 13602 crore in Q2 September 2013 over Q2 September 2012. The company announced result during market hours.
Adani Enterprises said that its earnings before interest, taxation, deprecation and amortization rose 17% to Rs 1896 crore in Q2 September 2013 over Q2 September 2012. Adani Enterprises said that its port and coal trading businesses continue to grow on a steady basis. The company said that its performance in Q2 September 2013 was adversely impacted by currency volatility, non-availability of domestic coal and delay in compensatory tariff in power generation business. Mr. Gautam Adani, Chairman, Adani Group said that the company's financial results reflect the continued stress on the group's power business. He further said that the power business scenario is expected to improve in the ensuing quarters.
In its coal mine development and operations business, the company is in the process of scaling up its operations. The company said it extracted 4.4 lac metric tones of coal in Q2 September 2013 from its Parsa Kente block in Chhattisgarh. The Environmental Impact Statement (EIS) and other approvals for the Carmichael Coal Mine and Rail Project in Australia are progressing well and are expected as per schedule, Adani Enterprises said in a statement.
Suzlon Energy hit a lower circuit limit of 5% at Rs 9.70 at on BSE after the company extended losses in Q2 September 2013. The company reported a net loss of Rs 782.37 crore in Q2 September 2013 compared with a net loss of Rs 807.74 crore in Q2 September 2012.
Suzlon Energy's total income fell 16.66% to Rs 4820.54 crore in Q2 September 2013 over Q2 September 2012.
The company said one time group-wide restructuring costs, under project transformation, stood at Rs 67 crore, and losses due to unfavourable currency fluctuations added Rs 70 crore in Q2 September 2013.
The consolidated group orderbook stood at 5.1 gigawatts (GW), approximately Rs 43834 crore, with an intake of 395 megawatts (MW) over Q2 September 2013.
Suzlon Group completed the divestment of 75% stake in its China manufacturing subsidiary for $28 million. The joint venture model serves a dual strategy by allowing the company to migrate to an asset light model in China, while maintaining a presence in this important market, the company said in a statement.
Mr Tulsi Tanti, Chairman - Suzlon Group, said: "Despite significant challenges our business is improving steadily. As part of our strategic initiatives, we have strengthened our product portfolio, adding a new turbine variant designed specifically for low wind sites in developed economies; we secured entry into Uruguay, one of the most promising Latin American markets; and, divested 75% of our China subsidiary, converting it into a joint venture which helps us maintain a foothold in the world's largest market. Looking ahead, we see an evolving - but promising - market for wind energy worldwide; and with the actions we are taking, we see a sustainable outlook for Group in the long term."
Mr Kirti Vagadia, Group Head of Finance, said: "While we continue to progress on the operational front, we reported a significant net loss primarily driven by lower volumes, the impact of the depreciating Rupee, and restructuring costs. We are, however, pleased to report a positive EBITDA (net of forex) in Q2 after five quarters. We continue our focus on increasing volumes while optimizing fixed costs, opex and working capital, which will enable us to improve our financial performance. We believe we are on the way to recovery, and while this has taken longer than envisaged, with the support of our key stakeholders we are on our way to achieve this."
Oberoi Realty lost 1.08% on weak Q2 result. The company's consolidated net profit fell 48.4% to Rs 64.14 crore on 28.66% decline in revenue to Rs 201.67 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Wednesday, 30 October 2013.
Oberoi Realty's consolidated profit before tax (PBT) declined 45.08% to Rs 91.90 crore in Q2 September 2013 over Q2 September 2012.
Commenting on the results, Mr. Vikas Oberoi, CMD, Oberoi Realty said, "Though the overall economic environment continues to remain challenging for the industry at large, we believe this will create opportunities for companies like us who have been financially prudent. Of late, the Mumbai market has experienced some sluggishness in volumes for under construction projects though there continues to be demand for ready projects. With the buoyancy in the stock markets being one of the key drivers of buyer sentiment, we expect the momentum to catch on gradually for the real estate sector and further strengthen our sales".
In the foreign exchange market, the rupee edged lower against the dollar, hurt by broad gains in the dollar. The partially convertible rupee was hovering at 61.37, compared with its close of 61.235/245 on Wednesday, 30 October 2013. The dollar rose against a basket of six major currencies after the Federal Reserve fueled bets it may start paring stimulus sooner than previously forecast.
European stocks edged lower on Thursday, 31 October 2013, after the Federal Reserve fueled bets it may start paring stimulus sooner than previously forecast. Key benchmark indices in France, Germany and UK shed 0.13% to 0.36%.
Asian stocks fell on Thursday, 31 October 2013, after the Federal Reserve fueled bets it may start paring stimulus sooner than previously forecast. Key benchmark indices in China, Japan, Hong Kong, Taiwan, Indonesia, Singapore, and South Korea shed 0.18% to 1.48%.
The Bank of Japan stuck with its campaign of unprecedented monetary easing as Prime Minister Shinzo Abe seeks to jolt the nation out of a 15-year deflationary malaise. Governor Haruhiko Kuroda's board maintained a pledge to expand the monetary base by 60 trillion to 70 trillion yen ($711 billion) a year, in a decision released in Tokyo today.
Trading in US index futures indicated that the Dow could fall 38 points at the opening bell on Thursday, 31 October 2013. US stocks fell on Wednesday, 30 October 2013, as investors assessed a Federal Reserve statement that largely matched forecasts, but also had some Fed watchers saying a policy change could come sooner than expected.
The Federal Reserve decided to press on with $85 billion in monthly bond purchases, saying it needs to see more evidence that the economy will continue to improve. "The recovery in the housing sector slowed somewhat in recent months," the Federal Open Market Committee (FDTR) said Wednesday at the end of a two-day meeting in Washington. "Fiscal policy is restraining economic growth. Taking into account the extent of federal fiscal retrenchment over the past year, the committee sees the improvement in economic activity and labor market conditions since it began its asset purchase program as consistent with growing underlying strength in the broader economy," the committee said. The Fed repeated that it will "await more evidence that progress will be sustained before adjusting the pace of its purchases." The Fed's purchases will remain divided between $40 billion a month of mortgage bonds and $45 billion in Treasury securities.
US private-sector employers hired the fewest workers in six months in October while tepid domestic demand kept inflation benign last month, suggesting the economy was still in need of stimulus from the Federal Reserve. Employers in the private sector added 130,000 new jobs to their payrolls this month, the ADP National Employment Report showed on Wednesday. That was the lowest reading since April.
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