Key benchmark indices pared gains after striking intraday high in morning trade. The S&P BSE Sensex regained the psychological 19,000 mark. The Sensex was up 65.73 points or 0.35%, off 44.02 points from day's high and up 147.90 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Gains in Asian stocks underpinned sentiment.
IT stocks rose as the rupee weakened against the dollar. Shares of Infosys, Wipro and tech Mahindra hit 52-week high. ONGC fell in choppy trade after the company reported weak Q1 result after market hours on Monday, 12 August 2013. Realty major DLF surged after the company reported turnaround financial performance on sequential basis in Q1 June 2013. Many realty stocks gained after DLF's results.
Key benchmark indices reversed direction after an initial slide triggered by weak industrial production data for June 2013 released by the government after trading hours on Monday, 12 August 2013. Key benchmark indices pared gains after striking fresh intraday high in morning trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 408.35 crore on Monday, 12 August 2013, as per provisional data from the stock exchanges.
The rupee weakened against the dollar on Tuesday on the back of a contraction in factory output growth in June, with the government's additional measures to curb the current account deficit and attract foreign fund inflows having little impact. The partially convertible rupee was hovering at 61.50, weaker than its close of 61.2750/2850 on Monday, 12 August 2013 and near its record low of 61.80 hit last week.
At 10:18 IST, the S&P BSE Sensex was up 65.73 points or 0.35% to 19,012.71. The index gained 109.75 points at the day's high of 19,056.73 in morning trade. The index fell 82.17 points at the day's low of 18,864.81 in early trade.
The CNX Nifty was up 16.20 points or 0.29% to 5,628.60. The index hit a high of 5,641.20 in intraday trade. The index hit a low of 5,578.90 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 955 shares gained and 573 shares fell. A total of 106 shares were unchanged.
The total turnover on BSE amounted to Rs 486 crore by 10:20 IST compared to Rs 231 crore by 09:30 IST.
Among the 30-share Sensex pack, 19 stocks gained and rest of them declined.
IT stocks rose as the rupee dropped against the dollar. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.
IT major TCS rose 1.25% to Rs 1,837.30. The stock had hit a record high of Rs 1,890.30 in intraday trade on 7 August 2013.
Infosys gained 1.57% to Rs 3,052.30 after hitting a 52-week high of Rs 3,060 in intraday trade today, 13 August 2013.
Wipro advanced 2.3% to Rs 465.30 after hitting a 52-week high of Rs 467 in intraday trade today, 13 August 2013.
HCL Technologies rose 1.42% to Rs 944.80. The stock had hit a record high of Rs 960.75 in intraday trade on 5 August 2013.
Tech Mahindra rose 3.97% to Rs 1,316, with the stock extending post-result gains. The scrip hit 52-week high of Rs 1,329 in intraday trade today, 13 August 2013. The company's consolidated net profit rose 7.6% to Rs 686 crore on 8.9% growth in revenue to Rs 4103 crore in Q1 June 2013 over Q4 March 2013. The Q1 result was announced during trading hours on Monday, 12 August 2013.
Meanwhile, Tech Mahindra's board of directors at its meeting held on Monday, 12 August 2013, approved increase in limit of investment by FII from the existing 35% to 45% of the paid up capital of the company, subject to approval of the members of the company.
DLF surged 4.55% after the company reported turnaround financial performance on sequential basis in Q1 June 2013. The company reported consolidated net profit of Rs 181 crore in Q1 June 2013, as against net loss of Rs 4 crore in Q4 March 2013. Earnings before interest, taxation, depreciation, and amortization (EBITDA) jumped 29% to Rs 1055 crore in Q1 June 2013 over Q4 March 2013. Revenue rose 6% to Rs 2453 crore in Q1 June 2013 over Q4 March 2013. The company announced Q1 result after market hours on Monday, 12 August 2013.
DLF said that the benefit of the revised strategy, which was articulated in February 2013, has now started to flow. The company remains focused on creating a business model of highly stable and predictable earnings, cash flows and long term value creation. The company continues to concentrate its efforts on reduction of net debt by increasing its operating cash flows and non-core divestments thereby increasing ROE's, DLF said.
During the quarter, the company achieved sales bookings of Rs 2430 crore compared to a total of Rs 3800 crore for the full year of FY 2013. DLF received an overwhelming response to the much awaited launches of DLF 5, Gurgaon projects namely The Crest wherein 0.83 million square feet (msf) area was sold at an average price of Rs 17,500 per square feet (psf). The forthcoming project of Camellias was also test marketed and the results were very encouraging, DLF said. Besides DLF 5 launches, the company achieved sales in cities such as Lucknow, Panchkula, New Chandigarh and Banglore, the company said in a statement. The construction of 1.8 msf Mall of India, Noida continues to make progress and is slated to open by end of FY 2014.
DLF said divestment of non-core assets fetched Rs 215 crore in Q1 June 2013.
On Aman divestment, post opening of the process to other bidders/investors and their subsequent positive response specifically in terms of value, DLF said it remains quite confident of a closure of the transaction in a short period of time.
DLF said it remains committed to its debt reduction plan through various divestments. The net debt declined to Rs 20369 crore as on 30 June 2013. The company reiterates its annual guidance of net debt reduction to Rs 17500 crore by end of FY 2014.
DLF continues to maintain a comfortable liquidity position having Rs 3175 crore of cash on its books. With the uptick in sales bookings, which was very evident from the Q1 sales, the cash position is likely to improve substantially, the company said.
Many other realty stocks gained after DLF's improved Q1 results. Unitech (up 0.58%), Oberoi Realty (up 3.65%), D B Realty (up 0.65%) and Parsvnath Developers (up 1.41%) edged higher.
Housing Development and Infrastructure (HDIL) gained 2.23%. The stock had jumped 5.37% on Monday, 12 August 2013, after the company said that its promoters have paid the interest arrears on their loan from Indiabulls Housing Finance. Indiabulls have acknowledged the receipt of their dues and have withdrawn their notice under Securitisation and Reconstruction of Financial Assets and enforcement of Security Interest Act, 2002, HDIL said.
ONGC fell in choppy trade after the company reported weak Q1 result after market hours on Monday, 12 August 2013. The stock was off 0.67% at Rs 275.80. The scrip hit high of Rs 278.60 and low of Rs 270.90 so far during the day. ONGC's net profit fell 33.92% to Rs 4015.98 crore on 3.35% decline in total income to Rs 20505.03 crore in Q1 June 2013 over Q1 June 2012.
ONGC gave a gross subsidy discount of Rs 12622 crore in Q1 June 2013, which was higher than Rs 12346 crore in Q1 June 2012. The subsidy discount impacted the profit before tax (PBT) by Rs 10803 crore and profit after tax (PAT) by Rs 7131 crore. ONGC shares the under recoveries of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PSD kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.
ONGC said that due to changes in accounting policies, the profit before tax was higher by Rs 222 crore.
ONGC said it has provided for Rs 1611 crore in Q1 June 2013 towards contribution for conversion of Post Retirement Benefit Scheme from Defined Benefit Scheme to Defined Contributory Scheme based on guidelines of the Department of Public Enterprise.
ONGC reported 4 hydrocarbon discoveries in Q1 June 2013 and an additional discovery in August 2013.
On the macro front, industrial production registered a contraction of 2.2% in June 2013, data released by the government after trading hours on Monday, 12 August 2013, showed. Mining production registered a decline of 4.1% and manufacturing production fell 2.2%. Electricity generation remain stagnant in June 2013. As per use-based classification, production of basic goods declined 1.9% in June 2013. Capital goods production fell 6.6%. Production of intermediate goods rose 1.1%. Consumer goods production declined 2.3%. Production of consumer durables declined 10.5%. Production of consumer non-durables rose 5%.
On a cumulative basis, industrial production registered a contraction of 1.1% during April-June 2013.
Inflation based on the consumer price index (CPI) eased in July 2013, data released by the government after trading hours on Monday, 12 August 2013, showed. The combined consumer price index (CPI) for urban and rural India eased to 9.64% in July 2013, from 9.87% in June 2013. The data showed that inflation under the category 'food and beverages' stood at 11.24% in July 2013.
Asian markets were trading higher on Tuesday, 13 August 2013, led by sharp upmove in Japanese shares which rose after yen eased following a report on Tuesday that said the Prime Minister Shinzo Abe is considering a corporate tax cut as a way to offset the impact of a planned two-stage increase in the sales tax. Key benchmark indices in Hong Kong, Indonesia, Singapore, South Korea, Japan and Taiwan were up by 0.35% to 1.64%. China's Shanghai Composite index fell 0.02%.
Japan's core machinery orders, seen as a leading indicator of capital spending, fell 2.7% in June, the Cabinet Office said Tuesday. Core machinery orders, which exclude volatile purchases for power-generation equipment and ships, can nonetheless vary wildly from month to month: They rose 10.5% in May, fell 8.8% in April, and rose 14.2% in March. A quarterly forecast included with the June results showed expectations the orders would fall 5.7% in the July-September period compared to the previous quarter.
US stocks closed a low-volume, light-news session with slight losses on Monday, though the technology-dominated Nasdaq Composite managed a gain.
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