Key benchmark indices slumped after the latest data showed that the country's trade deficit widened in April 2013. Weakness in European and Asian stocks also weighed on sentiment. The S&P BSE Sensex fell below the psychological 20,000 mark and the 50-unit CNX Nifty fell below the psychological 6,000 mark. The Sensex and the CNX Nifty, both, hit their lowest closing level in a week. The Sensex was down 430.65 points or 2.14%, off close to 415 points from the day's high and up about 25 points from the day's low. The market breadth was weak. All the 13 sectoral indices on BSE were in the red. All the shares from 30-share Sensex pack declined.
The Sensex has gained 187.49 points or 0.96% in this month so far (till 13 May 2013). The Sensex has gained 264.96 points or 1.36% in calendar 2013 so far (till 13 May 2013). From a 52-week high of 20,203.66 on 29 January 2013, the Sensex has declined 511.99 points or 2.53%. From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 3,942.69 points or 25.03%.
Coming back to today's trade, index heavyweight and cigarette major ITC tumbled over 5% and led decline on the bourses today, 13 May 2013. Another index heavyweight Reliance Industries (RIL) edged lower in choppy trade. Metal stocks declined as global commodity prices fell. Telecom stocks also fell. Auto stocks declined after oil market companies hiked diesel prices by Rs 1.02 per litre effective Saturday, 11 May 2013. Two wheeler markers also fell. Bank of India dropped after weak Q4 results. Reliance Power declined after reporting Q4 results. Nestle India also dropped after reporting a muted growth in net profit in Q1 March 2013. IT stocks fell on continued concerns about a US immigration bill.
The S&P BSE Sensex lost 430.65 points or 2.14% to settle at 19,691.67, its lowest closing level since 6 May 2013. The index declined 454.93 points at the day's low of 19,667.39 in late trade. The index declined 13.24 points at the day's high of 20,109.08 in early trade.
The CNX Nifty lost 126.80 points or 2.08% to 5,980.45, its lowest closing level since 6 May 2013. The index hit a low of 5,972.90 in intraday trade. The index hit a high of 6,104.95 in intraday trade.
The BSE clocked turnover of Rs 1610 crore today, 13 May 2013.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,542 shares fell and 808 shares rose. A total of 106 shares were unchanged.
All the shares from 30-share Sensex pack declined.
Index heavyweight Reliance Industries (RIL) fell 1.27% to Rs 803. The stock hit a high of Rs 824.70 and low of Rs 798.60.
Index heavyweight and cigarette major ITC dropped 5.31% to Rs 335.85. The stock was the top loser from the Sensex pack. The stock hit a high of Rs 354 and low of Rs 334.50. The stock had hit record high of Rs 355 in intraday trade during the special trading session held on Saturday, 11 May 2013. The Uttar Pradesh state government on 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.
Nestle India declined 1.13% after net profit rose 1.23% to Rs 279.10 crore on 9.7% growth in net sales to Rs 2248.10 crore in Q1 March 2013 over Q1 March 2012. The company announced Q1 results during trading hours today, 13 May 2013.
Nestle India said that the net profit for Q1 March 2013 is not comparable with that of the net profit in Q1 March 2012 as the net profit in Q1 March 2013 has been negatively impacted due to changes in regulatory procedures. These changes resulted in timing differences for certain provisions for contingencies that reduced the net profit in Q1 March 2013, Nestle India said in a statement.
Nestle India's net domestic sales rose 7.7% in Q1 March 2013, mainly on account of net realisations and product mix, the company said. Exports jumped 50.9% in Q1 March 2013.
Nestle India said that the cost of materials for goods sold as a percentage of net sales declined in Q1 March 2013 due to higher sales realizations, partially offset by higher input costs. Finance costs increased mainly due to higher average outstanding loan during Q1 March 2013 as well as due to completion of major capital projects for expansion of capacity, resulting in finance costs being charged to the income statement in Q1 March 2013, as against being treated as capital expenditure in Q1 March 2012, the company said in a statement.
During the quarter, there was no additional drawdown of loan from Nestle SA under the ECB approval from the RBI, Nestle India said. As on 31 March 2013, the total amount outstanding on this account $192 million (Rs 1043.33 crore), the company said. The annualised cost of ECB over the loan period up to 31 March 2013, including interest and exchange difference, is 13.9%, Nestle India said.
Commenting on the company's Q1 results, Mr. A Helio Waszyk, Chairman and MD, Nestle India said, "The start of the year reflects the caution that we have been expressing. While facing several challenges, our concerned efforts are starting to show positive signals in certain categories while in others it may take some more time. We expect some volatility to continue throughout 2013 but remain confident on our strategy to deliver long term sustainable profitable growth, which has been progressing well"
Realty stocks edged lower. Unitech, HDIL and D B Realty dropped by 0.73% to 4.37%.
DLF declined 1.99% to Rs 232. The company on Saturday, 11 May 2013, said that the equity issuance committee of the board of directors of the company at its meeting held on 11 May 2013 finalised 14 May 2013 as the issue opening and closing date for the proposed issue of up to 8.1 crore shares to eligible qualified institutional buyers. The floor price for the qualified institutional placement has been finalised at Rs 222 per equity share, with price band of Rs 222 to Rs 233 per share. The announcement was made after market hours on Saturday, 11 May 2013, when the stock exchanges held a special trading session for a short duration as the BSE was testing its disaster recovery software.
Sobha Developers rose 1.43% after the company said at the time of announcement of Q4 results that it is well positioned for the current fiscal year, with a pipeline of 8.9 million square feet of real estate projects. Sobha said that the company currently has 43 ongoing real estate projects aggregating to 25.83 million square feet of developable area and 10.65 million square feet of contractual projects under various stages of construction.
Shares of Sobha Developers had lost 2.54% to settle at Rs 398.25 on Saturday, 11 May 2013, after the company reported weak Q4 numbers after market hours on Friday, 10 May 2013. A special trading session was held on the bourses for a short duration on Saturday, 11 May 2013, as the BSE was testing its disaster recovery software.
Sobha Developers consolidated net profit declined 28% to Rs 69.60 crore on 12.1% growth in net sales to Rs 585.40 crore in Q4 March 2013 over Q4 March 2012. Consolidated net profit rose 5.4% to Rs 217.20 crore on 32.4% growth in net sales to Rs 1860.20 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The company reported highest-ever EBITDA (earnings before interest, taxation, depreciation and amortization) at Rs 554 crore in FY 2013.
With regard to the company's growth plans, Sobha said that the improving cash flows have prompted the company to look for new opportunities in emerging markets as well as its existing locations. Sobha said it plans to make a foray into new geographies like Kochi, Kozhikode (Calicut), Hyderabad and Noida/Ghaziabad region in FY 2014.
Bank stocks declined. Bank of India declined 4.35% on weak Q4 results. The bank's net profit fell 20.58% to Rs 756.57 crore on 5.55% rise in total income to Rs 9265.55 crore in Q4 March 2013 over Q4 March 2012. The bank announced the results during market hours today, 13 May 2013.
Bank of Baroda declined 1.82% on weak Q4 results. The bank's net profit fell 32.23% to Rs 1028.85 crore on 13.82% rise in total income to Rs 10262.50 crore in Q4 March 2013 over Q4 March 2012. The bank announced the results during market hours today, 13 May 2013.
Bank of Baroda's net profit fell 10.51% to Rs 4480.72 crore on 17.32% growth in total income to Rs 38827.28 crore in the year ended 31 March 2013 over the year ended 31 March 2012. On a consolidated basis, the state-run bank's net profit fell 8.47% to Rs 4804.23 crore on 18.4% growth in total income to Rs 40952.68 crore in the year ended 31 March 2013 over the year ended 31 March 2012.
Bank of Baroda's board of directors at its meeting held today, 13 May 2013, recommended a dividend of Rs 21.50 per share for the year ended 31 March 2013. The dividend payment date is 8 July 2013, the bank said.
Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), fell 1.2%.
Among other PSU bank stocks, Canara Bank, Union Bank of India, and Punjab National Bank dropped by 1.79% to 3.74%.
ICICI Bank fell 1.56%.
HDFC Bank dropped 1.34% to Rs 693.05. The stock reversed direction after hitting record high of Rs 711.55 in intraday trade today, 13 May 2013. Axis Bank shed 1.46%.
Cement stocks declined. ACC, Ambuja Cements and UltraTech Cement shed by 1.23% to 2.51%.
Capital goods stocks edged lower. ABB, Thermax, Bhel and L&T shed by 0.39% to 2.96%.
Siemens declined 3.96%. The company said on Saturday, 11 May 2013, that the company has fixed 15 May 2013, as the record date for the purpose of determining the members of Winergy Drive Systems India to whom the equity shares will be issued and allotted by the company consequent upon the amalgamation of Winergy Drive Systems with the company with effect from 31 March 2013.
IT stocks fell on continued concerns about a US immigration bill. Infosys, Tech Mahindra, HCL Technologies and Tata Consultancy Services (TCS) shed by 0.92% to 3.76%.
Wipro fell 1.71%. The company on 9 May 2013 said that the Securities & Exchange Board of India (Sebi) has approved its proposal to meet the minimum public shareholding requirement through a transfer of equity shares by the promoter group to an 'Irrevocable Independent Trust' with trustees either from public sector banks or public financial institutions for advancing philanthropic activities through its beneficiaries. Wipro said that the company and the promoter group have undertaken multiple steps to fulfill the minimum public shareholding requirement including Offer for Sale (OFS). The demerger of the 'diversified' business is also expected to increase public shareholding. Any shortfall to meet public shareholding prior to due date of meeting the minimum public shareholding requirement would be transferred to the 'Irrevocable Independent Trust' and the trust shall effect a sale of such equity shares forming part of the trust funds within a period of two years from the date of such settlement, Wipro said.
Meanwhile, the rupee recovered after hitting its lowest level in more than two months on Monday. The partially convertible rupee was trading at 54.80 per dollar compared with Friday's close of 54.80/81. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
Most telecom stocks declined. Tata Teleservices (Maharashtra), Reliance Communications, and Bharti Airtel fell by 1.65% to 4.86%. Idea Cellular rose 0.2%. MTNL was flat.
Metal stocks declined as global commodity prices fell. Sterlite Industries, Tata Steel, Bhushan Steel, JSW Steel, Jindal Steel & Power Sail, Hindalco Industries and Hindustan Zinc shed by 0.76% to 4.33%.
Reliance Power dropped 3.94%. The company's consolidated net profit rose 15% to Rs 266 crore on 94% rise in total income to Rs 1265 crore in Q4 March 2013 over Q4 March 2012. The company's consolidated net profit rose 17% to Rs 1011 crore on 91% rise in total income to Rs 5284 crore in the year ended 31 March 2013 (FY 2013) over FY 2012. The company announced the results during market hours today, 13 May 2013.
Commenting on the company's performance, J.P. Chalasani, Chief Executive Officer, Reliance Power, said: "The year 2012-13 saw us achieve significant landmarks in the development of our flagship 3,960 megawatts (MW) Sasan Ultra Mega Power Project (UMPP) -- the largest integrated power plant and coal mining project in the world. We commenced coal production from our 20 MTPA Moher mines, in record time, in September 2012. This will become the largest coal mine in the country in terms of volume handled. We also commissioned our first 660 MW, super-critical unit of the Sasan UMPP in March 2013. This year also saw the first full year operation of our 1,200 MW Rosa project in Uttar Pradesh and the 40 MW Solar PV project in Rajasthan which resulted in record generation and profitability".
Auto stocks declined after oil market companies hiked diesel prices by Rs 1.02 per litre effective Saturday, 11 May 2013. Tata Motors declined 3.27%. The company's total sales fell 15% to 51,160 in April 2013 over April 2012. Total domestic sales fell 17% to 47,595 in April 2013 over April 2012. Exports rose 28% to 3,565 during the period. The company announced the monthly sales data on 1 May 2013.
Mahindra & Mahindra (M&M) dropped 1.22%. The company announced after market hours on Friday, 10 May 2103, the launch of a new H-Series Xylo, powered by the refined and world class mHawk engine. The power packed H-Series offers a range of variants starting with the H4 (with ABS option), H8 (with ABS & Airbag option) and fully loaded feature packed H9 version which includes several unique features like Voice Command Technology (VCT), Cruise Control, Digital Drive Assist System, etc. The new H-Series starts at an attractive price of Rs 8.23 lakh (ex showroom Mumbai, BSIV variant).
Maruti Suzuki India fell 1.61% to Rs 1704.30. The stock reversed direction after striking a 52-week high of Rs 1,742 in intraday trade today, 13 May 2013.
Two wheeler markers also fell. Bajaj Auto declined 2.46%. The company's total sales fell 10% to 3.44 lakh units in April 2013 over April 2012. Motorcycle sales fell 12% to 3 lakh units in April 2013 over April 2012. Commercial vehicle sales rose 10% to 43,351 units in April 2013 over April 2012. Exports fell 23% to 1.30 lakh units in April 2013 over April 2012. The company announced the sales figures on 2 May 2013.
Hero MotoCorp fell 1.69%. The company said on 1 May 2013 its total sales fell 9.5% to 4.99 lakh in April 2013 over April 2012.
The focus of the market is on Q4 results. Dr Reddy's Laboratories and Reliance Infrastructure unveil Q4 results tomorrow, 14 May 2013. Bajaj Auto announces Q4 results on Thursday, 16 May 2013. ITC unveils Q4 results on Friday, 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. Sun Pharma, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
India's trade deficit widened to $17.787 billion in April 2013 from $14.041 billion in April 2012, data released by the government today, 13 May 2013, showed. While exports rose 1.68% at $24.164 billion, imports jumped 10.96% to $41.951 billion in April 2013 over April 2012.
Another data showed that the consumer price inflation fell below the 10% mark in April 2013. The combined consumer price inflation for rural and urban India eased to 9.39% in April 2013 from 10.39% in March 2013, data released by the government today, 13 May 2013, showed. Within the consumer price index, inflation with respect to food and beverages stood at 10.61% in April 2013.
The government will unveil data on the wholesale price index (WPI) for April 2013 tomorrow, 14 May 2013. WPI eased to the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013.
Industrial production rose 2.5% in March 2013, compared with a revised growth of 0.46% in February 2013, data released by the government on Friday, 10 May 2013, showed. Industrial production rose 1% for the year ended 31 March 2013 (FY 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 retreated on Monday, 13 May 2013, as a mixed bag of Chinese data highlighted growth concerns in the world's second largest economy. Key benchmark indices in UK, France and Germany were down by 0.17% to 0.38%.
Asian stocks edged lower on Monday, 13 May 2013, with sentiment hit by selling in commodities triggered by a strong dollar, which rose to a fresh 4-1/2-year peak against the yen on the back of growing confidence in the US economy. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, and Taiwan fell by 0.22% to 1.42%. South Korea's Kospi gained 0.2%.
Japanese stocks on Monday jumped to their highest level in more than five years, boosted by an improved profit outlook and further yen weakness after the Group of Seven major economies refrained from criticizing Tokyo's easing policies. The Nikkei Average rose 1.2%.
China's industrial production rose 9.3% in April 2013, improving from a gain of 8.9% in March 2013. Retail sales rose 12.8% in April 2013, accelerating from a 12.6% advance in March 2013. The growth, however, was slower than that seen during 2012.
Urban fixed-asset investment, which is a gauge of construction and infrastructure spending, rose 20.6% in the January-April period, lower than 20.9% increase for January-March period. The January-April result matched fixed-asset investment growth during the full year of 2012.
Trading in US index futures indicated that the Dow could fall 40 points at the opening bell on Monday, 13 May 2013. The Federal Reserve has reportedly sketched out a plan for winding down its stimulus program of buying $85 billion in bonds each month. As per reports, the Fed intends to clarify the strategy so that the financial markets don't overreact to the Fed's announcements in this regard.
The US Commerce Department unveils monthly report on retail sales for April 2013 later in the global day today, 13 May 2013.
Group of Seven finance officials agreed on Saturday to redouble efforts to deal with failing banks and gave a green light to Japan's drive to galvanize its economy.
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