Gains in European and Asian stocks pushed key benchmark indices to intraday high in late trade. The barometer index, the S&P BSE Sensex, hit 14-week high above the psychological 20,000 mark. The CNX Nifty hit over 14-week high. The Sensex was provisionally up 136.10 points or 0.68%, up 173.83 points from the day's low and off 12.22 points from the day's high. Index heavyweight and cigarette major ITC advanced to hit record high on reports the Uttar Pradesh state government on Tuesday, 7 May 2013, slashed VAT on cigarette/cigar from existing 50% to 25%.
Index heavyweight Reliance Industries (RIL) was slightly higher after seeing intraday volatility. Ranbaxy Laboratories declined after weak Q1 result. Lupin advanced to scale a record high after reporting strong Q4 results. HDFC surged to record high after declaring good Q4 result. The market breadth, indicating the overall health of the market, was positive.
Key benchmark indices edged higher amid initial volatility. The market retained positive zone in morning trade. The barometer index, the S&P BSE Sensex, hit its highest level in almost 14 weeks. The CNX Nifty hit 14-week high. Key benchmark indices pared gains in mid-morning trade. The Sensex cut losses after sliding to intraday low in early afternoon trade. The Sensex regained strength in afternoon trade. The market retained positive zone in mid-afternoon trade. The Sensex moved past the psychological 20,000 level in late trade.
The market sentiment was boosted by data showing that foreign institutional investors (FIIs) remained buyers of Indian stocks on Tuesday, 7 May 2013. FIIs bought shares worth a net Rs 655.21 crore on Tuesday, 7 May 2013, as per provisional data from the stock exchanges.
As per provisional closing, the S&P BSE Sensex was up 136.10 points or 0.68% to 20,025.05. The index jumped 148.32 points at the day's high of 20,037.27 in late trade, its highest level since 30 January 2013. The index fell 37.73 points at the day's low of 19,851.22 in early afternoon trade.
The CNX Nifty was up 38.05 points or 0.63% to 6,081.60. The index hit a high of 6,083.55 in intraday trade, its highest level since 29 January 2013. The index hit a low of 6,024.95 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 975 shares rose and 974 shares fell. A total of 84 shares were unchanged.
The total turnover on BSE amounted to Rs 2043 crore, higher than Rs 1925 crore on Tuesday, 7 May 2013.
Among the 30-share Sensex pack, 16 stocks gained while rest of them declined. HDFC Bank (up 1.81%), Hindalco Industries (up 0.69%) and TCS (up 0.61%) edged higher from the Sensex pack. Bharti Airtel (down 2.1%), Hero MotoCorp (down 1.84%) and Tata Steel (down 1.25%) edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) rose 0.19% to Rs 828.65. The scrip hit high of Rs 833 and a low of Rs 822.
Index heavyweight and cigarette major ITC rose 2.74% to Rs 344.40. The stock hit record high of Rs 345 in intraday trade today, 8 May 2013. The scrip hit a low of Rs 333.90. 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 also gained. Godfrey Phillips India jumped 20%. VST Industries rose 1.02%.
FMCG major Hindustan Unilever (HUL) rose 1.39% to Rs 587.60. The stock had hit record high of Rs 597 in intraday trade on 30 April 2013. The company's foreign parent Unilever PLC on 30 April 2013 announced open offer to acquire additional 48.70 crore shares, or 22.52% stake in Hindustan Unilever at Rs 600 per share. As on 31 March 2013, foreign promoters held 52.48% stake in HUL. After the open offer, holding of foreign promoters will rise to 75%.
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 0.17%), Nestle India (up 0.82%), Tata Global Beverages (up 1.21%) gained. Britannia Industries (down 1.21%), Godrej Consumer Products (down 0.34%) and Marico (down 2.99%) declined.
United Spirits fell 1.22% to Rs 2,318.55. The stock had hit a record high of Rs 2,383.95 in intraday trade on Tuesday, 7 May 2013.
HDFC advanced 4.95% to Rs 895, which is also its record high for the counter. The company's net profit rose 17.27% to Rs 1555.21 crore on 16.08% growth in total income to Rs 5677.71 crore in Q4 March 2013 over Q4 March 2012. The company announced results during trading hours today, 8 May 2013.
HDFC's net profit rose 17.6% to Rs 4848.34 crore on 21.85% growth in total income to Rs 21147.62 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
The company's consolidated net profit rose 17.24% to Rs 2083.12 crore on 19.02% growth rise in total income to Rs 11042.88 crore in the Q4 March 2013 over Q4 March 2012. Consolidated net profit rose 21.55% to Rs 6639.72 crore on 18.75% growth in total income to Rs 35986.93 crore in the year ended March 2013 over the year ended March 2012.
Ranbaxy Laboratories lost 3.04% after 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 today, 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.
Ranbaxy said that its global sales rose 10% on a like-to-like basis in Q4 March 2013 over Q4 March 2012.
Commenting on the Q1 performance, Mr. Arun Sawhney, CEO & MD, Ranbaxy Laboratories said, "India and key emerging markets of East Europe plus CIS and Africa plus Middle East returned strong growth. The focus on differentiated products gained momentum during the quarter as we improved our market share in Absorica and received the rights to market Desevenlafaxine in US. We also continued to work towards optimizing overhead and other expenses".
Lupin gained 2.89% to Rs 733.95 after striking a record high of Rs 738.80. 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 today, 8 May 2013.
Commenting on the results, Dr. Kamal K. Sharma, Managing Director, Lupin, said, "We have had a great quarter and a remarkable year fuelled by strong business performance in the US and India as well as improved operational efficiencies. We continue on our high growth journey."
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.
Meanwhile, the Congress party got majority in Karnataka assembly elections and ousted the BJP to form the government in the state.
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. Asian Paints and Punjab National Bank unveil Q4 results tomorrow, 9 May 2013. NTPC announces Q4 results on Friday, 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. 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.
Indian services sector growth eased sharply during April as new orders came in at a much slower pace, a business survey showed on Monday, 6 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to 50.7 in April 2013 from 51.4 in March 2013. Services make up over 60% of India's economy.
The Central Statistics Office (CSO) will issue data on industrial production for March 2013 on Friday, 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 rose on Wednesday, extending the prior day's gains. Key benchmark indices in Germany, France and UK rose by 0.09% to 0.4%.
Asian markets climbed on Wednesday with the Nikkei rising to a fresh multi-year high following a strong overnight lead from the US and Europe. Key benchmark indices in Hong Kong, Singapore, Japan, South Korea, China, Taiwan and Indonesia were up by 0.11% to 1.27%.
China posted an $18.16 billion trade surplus in April after reporting an unexpected $884 million deficit in March. Exports rose by 14.7% in April from a year earlier, data from the General Administration of Customs showed today, 8 May 2013. This was faster than March's 10% rise. Imports rose 16.8% from a year earlier compared with a 14.1% rise in March.
China will unveil data on consumer and producer inflation figures for April 2013 tomorrow, 9 May 2013.
Trading in US index futures indicated a flat opening of US stocks on Wednesday, 8 May 2013. US stocks rose on Tuesday, with the Dow industrials closing above 15,000 for the first time, after Australia cut its refinancing rate and satellite-TV provider DirecTV and watch maker Fossil Inc. reported improved earnings.
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