Key benchmark indices edged higher for the second day in a row as gains in European and Asian stocks boosted sentiment. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, settled at five-week high. The Sensex jumped 153.37 points or 0.81%, off 35.07 points from the day's high and up 180.05 points from the day's low. Index heavyweight Reliance Industries (RIL) edged higher in choppy trade. Another index heavyweight and cigarette major ITC scaled record high. The market breadth, indicating the overall health of the market, was positive.
Indian stocks gained for the second straight day today, 22 April 2013. The Sensex has risen 438.67 points or 2.34% in two trading days from its close of 18,731.16 on 17 April 2013. The Sensex has risen 334.06 points or 1.77% in this month so far (till 22 April 2013). The Sensex has declined 256.88 points or 1.32% in calendar 2013 so far (till 22 April 2013). From a 52-week high of 20,203.66 on 29 January 2013, the Sensex has declined 1,033.83 points or 5.12%. From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 3,420.85 points or 21.72%.
Coming back to today's trade, Wipro slumped nearly 8% after the company said at the time of announcing Q4 results that it expects revenue from IT services business to remain flat on sequential basis in Q1 June 2013. Shares of other IT stocks declined after Wipro's post result slide. Realty stocks gained as slowing wholesale price inflation has raised rate cut expectations. Reliance Anil Dhirubhai Ambani (ADA) Group shares surged. Reliance Communications (RCom) jumped on huge volumes. UltraTech Cement declined after weak Q4 results. Telecom stocks gained. Education stocks gained on renewed buying. FMCG stocks gained on reports of likely normal monsoon this year.
Cairn India rose ahead of its Q4 results today, 22 April 2013. Sun TV Network surged after two bulk deals were executed on the counter on BSE today, 22 April 2013. Metal stocks rose on bargain hunting. Bank stocks extended recent gains triggered by expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost growth amid slowing wholesale price inflation. Auto stocks rose as slowing wholesale price inflation has raised rate cut expectations.
The market edged higher in early trade on firm Asian stocks. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in almost five weeks. The market pared gains after hitting fresh intraday high in morning trade. The market hovered in positive terrain in mid-morning trade. The market continued to hover in green in early afternoon trade. Key benchmark indices pared gains in afternoon trade. The Sensex once again regained strength in mid-afternoon trade. The Sensex surged to hit fresh intraday high in late trade.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 18 April 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 940.07 crore on Thursday, 18 April 2013, as per provisional data from the stock exchanges.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month April 2013 series to May 2013 series. The May 2013 F&O contracts expire on Thursday, 25 April 2013. The stock market remains shut on Wednesday, 24 April 2013, on account of Mahavir Jayanti.
The S&P BSE Sensex jumped 153.37 points or 0.81% to 19,169.83, its highest closing level since 18 March 2013. The index jumped 188.44 points at the day's high of 19,204.90 in late trade. The index fell 26.68 points at the day's low of 18,989.78 in early trade.
The CNX Nifty was up 51.30 points or 0.89% to 5,834.40, its highest closing level since 18 March 2013. The index hit a high of 5,844.85 in intraday trade. The index hit a low of 5,789.80 in intraday trade.
The total turnover on BSE amounted to Rs 2168 crore, higher than Rs 2143.94 crore on Thursday, 18 April 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,390 shares advanced and 993 shares declined. A total of 138 shares were unchanged.
The BSE Mid-Cap index rose 1.44% and the BSE Small-Cap index gained 0.9%. Both these indices outperformed the Sensex.
The BSE PSU index (up 1.28%), BSE Capital Goods index (up 3.33%), BSE Bankex (up 2.41%), BSE Realty index (up 3.41%), BSE Metal index (up 2.03%), BSE Consumer Durables index (up 4.26%), BSE Power index (up 2.01%) outperformed the Sensex. The BSE Auto index (up 0.32%), BSE HealthCare index (up 0.2%), BSE FMCG index (up 0.57%), BSE Oil & Gas index (up 0.19%), BSE Teck index (down 1.26%) and BSE IT index (down 2.37%) underperformed the Sensex.
Among the 30-share Sensex pack, 20 stocks advanced while rest of them declined.
Shares of engineering and construction major L&T jumped 4.3% to Rs 1,537.
Shares of power equipment major Bharat Heavy Electricals (Bhel) advanced 3.3% to Rs 191.85.
Index heavyweight Reliance Industries (RIL) rose 1.16% to Rs 790.90. The scrip hit high of Rs 794.15 and a low of Rs 778.65. On the back of a surge in refining margins, RIL's net profit jumped 31.9% to Rs 5589 crore on 1.4% fall in turnover to Rs 86618 crore in Q4 March 2013 over Q4 March 2012. On sequential basis, RIL's net profit rose 1.58% to Rs 5589 crore on 10.06% decline in turnover to Rs 86618 crore in Q4 March 2013 over Q3 December 2012. The company reported Q4 March 2013 results on 16 April 2013.
At the time of announcement of the results, RIL said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the net 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
FMCG stocks gained on reports of likely normal monsoon this year. FMCG companies derive a substantial revenue from rural markets.
Britannia Industries (up 3.59%), Colgate-Palmolive (India) (up 1.06%), Dabur India (up 1.77%), Godrej Consumer Products (up 5.04%), Marico (up 0.78%), Nestle India (up 0.47%) and Tata Global Beverages (up 1.41%) gained. Hindustan Unilever shed 0.24%.
Index heavyweight and cigarette major ITC rose 0.54% to Rs 317. The stock hit record high of Rs 317.45 in intraday trade today, 22 April 2013. The stock hit low of Rs 312.55 in intraday trade today, 22 April 2013. The government 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, which was unveiled on 28 February 2013.
Bank stocks extended recent gains triggered by expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost growth amid slowing wholesale price inflation. Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), were up 1.63%.
Among other PSU bank stocks, Canara Bank (up 6.08%), Union Bank of India (up 2.3%), Bank of India (up 4.33%), Bank of Baroda (up 1.58%) and Punjab National Bank (up 2.41%) edged higher.
ICICI Bank advanced 2.89%. ICICI Bank announces Q4 results on 26 April 2013.
HDFC Bank rallied 4.11% ahead of its Q4 results tomorrow, 23 April 2013.
IndusInd Bank jumped 3.87% to Rs 467.50, with the stock extending Thursday's 7.22% surge triggered by strong Q4 results. The stock struck a record high of Rs 471.55 in intraday trade today, 22 April 2013. IndusInd Bank's net profit rose 37.61% to Rs 307.40 crore on 23.55% increase in total income to Rs 2190.66 crore in Q4 March 2013 over Q4 March 2012. The result was announced during trading hours on 18 April 2013.
IndusInd Bank's net profit rose 32.22% to Rs 1061.18 crore on 31% increase in total income to Rs 8346.19 crore in the year ended March 2013 over the year ended March 2012.
The bank's ratio of net non-performing assets to net advances stood at 0.31% as on 31 March 2013, compared with 0.30% as on 31 December 2012 and 0.27% as on 31 March 2012.
At a post-result analyst meet, IndusInd Bank's management said it expects further improvement in the bank's net interest margin (NIM) after NIM increased sharply to five year high of 3.72% in Q4 March 2013 from 3.46% in December 2012. The bank remains on ambitious target to touch the NIM of 3.9% to 4%. Accordingly, bank expects the interest income contribution to total revenue to increase.
The bank plans to add new 125-150 branches in FY 2014 and it expects to get 2 offshore branches licenses. The bank has 182 new branch licenses in hand.
As per the bank's growth roadmap for 2014-2016, the bank expects its loan growth at above industry growth in the range of 25-30% during the period. CASA (current and savings account) growth is planned to be kept ahead of loan growth with around 35% of deposits. Fee income growth is also planned to be maintained ahead of loan growth.
Axis Bank gained 0.95%. The bank will announce its Q4 March 2013 results on Wednesday, 24 April 2013.
Cadila Healthcare rose 0.52%. The company announced during market hours today, 22 April 2013 that the board of directors of the company and the board of directors of Zydus Animal Health (ZAHL), Liva Healthcare (LHL) and Zydus Pharmaceuticals (ZPL) at their respective meeting held on 22 April 2013 approved the amalgamation of ZAHL, LHL and ZPL with the company. In terms of the scheme, ZAHL, LHL and ZPL will be amalgamated with the company, followed by the dissolution without winding up of ZAHL, LHL and ZPL.
Coal India jumped 4.8% on reports the Cabinet Committee on Economic Affairs may meet today, 22 April 2013, to discuss coal price pooling. Coal price pooling is the averaging of prices of domestic and imported coal to get a uniform feedstock price. Finance minister P Chidambaram had earlier said the Cabinet will take a view on price pooling of coal to address the fuel supply issue. The CCEA in February 2013 had approved in-principle the price-pooling mechanism.
Reports suggest that a final decision on the issue is pending due to differences between the ministries of coal and power on how the impact of higher imported coal prices will be shared between Coal India and power companies. The Prime Minister's Office had earlier reportedly directed Coal India and Central Electricity Authority (CEA) to work on pooling coal prices to ensure 80% supplies to power plants.
Metal stocks rose on bargain hunting. Hindustan Zinc rose 2.09% to Rs 112.40. The stock had hit a 52-week low of Rs 106.90 in intraday trade on 17 April 2013
Jindal Steel & Power rose 1.87%. Jindal Steel & Power declares its Q4 results on 25 April 2013.
Sail gained 2.68% to Rs 63.15. The stock had hit a 52-week low of Rs 56.40 in intraday trade on 16 April 2013.
Tata Steel gained 2.43% to Rs 307.25. The stock had struck a 52-week low of Rs 292.70 in intraday trade on 16 April 2013. The company said before trading hours today, 22 April 2013, that Abja Investment Co. Pte, Singapore, a wholly owned subsidiary of Tata Steel is contemplating an issuance of Singapore dollar bonds listed on the Singapore Exchange in respect of which a preliminary offering circular has been prepared.
Hindalco Industries rose 2.51%. JSW Steel gained 1.56%.
Sterlite Industries (India) fell 0.62% to Rs 88.45. The stock had hit a 52-week low of Rs 83.15 in intraday trade on 16 April 2013.
Auto stocks rose as slowing wholesale price inflation has raised rate cut expectations. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing.
Tata Motors gained 0.89%. Tata Motors' British luxury car unit Jaguar Land Rover (JLR) on 10 April 2013 said its global sales rose 16% to a record 53,772 units in March 2013 over March 2012. JLR's global sales rose 17% to a record 115,504 units in Q1 March 2013 over Q1 March 2012.
Small-car maker Maruti Suzuki India rose 1.37%.
Mahindra & Mahindra (M&M) shed 1.55%. M&M during market hours today, 22 April 2013 said that the tool down strike at the company's Igatpuri plant, which started on 9 April 2013 has been withdrawn by the workers and production will soon be restored to normalcy. Considering the pipeline of stocks as also assembly of higher number of engines at other plant locations, there was no material impact on sales volume and going forward the company expects to build up the pipeline stock, M&M said.
Shares of two-wheeler makers were mixed. Hero MotoCorp rose 1.16%. Bajaj Auto declined 1.59%. PSU OMCs announced cut in petrol price by Re 1 per litre, excluding value added tax (VAT), effective midnight 15 April 2013 because of fall in international oil prices. The recent cut in petrol price comes on the back of 85 paise a litre reduction in rates on 2 April 2013 and Rs 2 a litre decrease effected on 16 March 2013.
Wipro slumped 7.69% after the company said at the time of announcing Q4 results that it expects revenue from IT services business to remain flat on sequential basis in Q1 June 2013. Wipro expects a between 0.63% fall to a growth of 1.57% in revenue from IT services business at between $1.575 billion to $1.61 billion in Q1 June 2013 over Q4 March 2013. At a post-result conference call, Wipro's management indicated that Q1 for Wipro will be the traditionally weak quarter on account of softness from the India business. The management expects Q2 September 2013 to be better than Q1 June 2013 for the company.
Wipro's IT services revenue rose 0.5% to $1.585 billion in Q4 March 2013 over Q3 December 2012. On year on year basis, IT services revenue rose 3.2% to $1.585 billion in Q4 March 2013 over Q4 March 2012. Wipro announced the fourth quarter results on Friday, 19 April 2013, when the stock market was closed on account of Ram Navmi.
Shares of other IT pivotals also declined after Wipro's post result slide. IT major TCS was down 1.74%. TCS posted good Q4 results last week. Its consolidated net profit rose 1.9% to Rs 3616 crore on 2.2% growth in revenue to Rs 16430 crore in Q4 March 2013 over Q3 December 2012. Net profit jumped 33.6% to Rs 13917 crore on 28.8% growth in revenue to Rs 62989 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The company clocked volume growth of 16.8% in FY 2013 over FY 2012.
At a post result conference call held on 17 April 2013, TCS' management said it expects FY 2014 to be better year than FY 2013 and anticipates defending the margins in narrow band despite the headwinds from the wage hikes through other levers.
HCL Technologies fell 2.05% to Rs 720.80. The stock had hit a record high of Rs 809 in intraday trade on 17 April 2013 after the company reported strong Q3 results. Consolidated net profit as per US accounting standards rose 7.8% to Rs 1040 crore on 2.4% growth in revenue at Rs 6425 crore in Q3 March 2013 over Q2 December 2012.
Infosys declined 2.15%. Infosys has forecast a tepid 6% to 10% growth in revenue in both rupee terms and dollar terms for the year ending 31 March 2014 (FY 2014) as the company says that global economic uncertainties remain challenging for the IT industry. The revenue growth outlook is lower than industry body Nasscom's projection of 12% to 14% growth in IT exports in the current fiscal year. Infosys has not given full year earnings guidance this time. Infosys had earlier stopped offering quarterly guidance in July 2012.
Education stocks gained on renewed buying. Educomp Solutions (up 9.97%), Aptech (up 2.06%), NIIT (up 2.17%), MT Educare (up 3.04%) and Everonn Education (up 9.91%) gained.
Cairn India rose 0.2% ahead of its Q4 results today, 22 April 2013.
Sun TV Network surged 5.32% to Rs 412 after 0.2% equity changed hands in two bulk deals on the BSE today, 22 April 2013. A bulk deal of 3 lakh shares was executed on the Sun TV Network counter at Rs 395 per share at 09:49 IST on the BSE today, 22 April 2013. Another bulk deal of 4.5 lakh shares was struck on the scrip at Rs 395 per share at 09:49 IST on the BSE.
UltraTech Cement declined 3.13% on weak Q4 results. The company during market hours today, 22 April 2013, said that net profit fell 16.26% to Rs 726 crore on 1.03% rise in net sales to Rs 5389 crore in Q4 March 2013 over Q4 March 2013. The bottom line was adversely impacted by additional tax liability. Tax expenses for the quarter ended 31 March 2013 and year ended 31 March 2013 (FY 2013) includes additional charge for deferred tax liability of Rs 87 crore. This is due to increase in the rate of surcharge on income tax as proposed in the Finance Bill 2013.
The company's net profit rose 8.54% to Rs 2655 crore on 10.24% rise in net sales to Rs 20018 crore in the year ended 31 March 2013 (FY 2013) over FY 2012.
With regard to future business outlook, UltraTech Cement said that the long term cement demand in India is likely to grow over 8% in line with GDP growth. The value drivers for growth will continue to be housing demand and infrastructure development. The cement major said that the company is committed to growth and towards this end, its board has approved the expansion of capacity at Aditya Cement Works in Rajasthan by 2.9 million metric tonnes, including the setting up of two grinding units. The expansion envisages a capital outlay of around Rs 2000 crore to be funded through a mix of internal accrual and borrowing. The additional facility is expected to be commissioned by March 2015.
UltraTech Cement's board of directors of the company has recommended a dividend of Rs 9 per share for the year ended 31 March 2013.
Reliance Anil Dhirubhai Ambani (ADA) Group shares surged. Reliance Infrastructure, Reliance Broadcast Network, Reliance Capital, Reliance MediaWorks and Reliance Power gained by 3.32% to 5.15%.
Reliance Communications (RCom) surged 13.12%. The stock rose on massive volumes. On BSE, 1.73 crore shares changed hands on the counter, compared with average daily volume of 39.14 lakh shares in the past one quarter. The company before trading hours today, 22 April 2013, said that Samena Capital in a proposed consortium with certain other global PE funds is at an advanced stage of the process of due diligence and completion of definitive documents in relation to the acquisition of the company's global communications services business unit -- Reliance Globalcom. The intended time line for completion of the transaction is end May 2013. At this point, there can be no certainty that this will lead to a transaction, RCom said. A further announcement will be made in due course, if and when appropriate, the company said.
RCom also said that it has discontinued discussions with Batelco Group for selling its sake in Reliance Globalcom. RCom had earlier said in March 2013 that it was in discussions with Batelco Group with respect to Reliance Globalcom.
Other telecom stocks also gained. MTNL (up 1.75%), Idea Cellular (up 0.4%), Bharti Airtel (up 0.82%) and Tata Teleservices (Maharashtra) (up 1.55%) gained.
Realty stocks gained as slowing wholesale price inflation has raised rate cut expectations. Purchases of both residential and commercial property are largely driven by finance. D B Realty, DLF, HDIL, Unitech and Sobha Developers gained by 1.15% to 11.34%.
Jet Airways (India) climbed 7.37% on reports the company has laid down an ambitious expansion plan for its global operations that would see the airline connect 23 Indian cities to Abu Dhabi.
Gitanjali Gems surged 4.44% after the company during trading hours today, 22 April 2013, announced the merger of Gems London Co. with Tokyo based Imacbc Co. Gems London Co. was merged with Tokyo based Imacbc Co. with effect from 1 April 2013. After the merger, Imacbc shall become completely integrated company from sourcing raw material from Thailand and China, manufacturing in two facilities in China, to retailing in Japan, Gitanjali Gems said in a statement. Gitanjali Gems held 30% stake in Gems London Co. through its Hong Kong based wholly owned subsidiary, Aston Luxury Group. Currently, Gems London is one of the largest seller of jewellery through its TV channel, Gems TV in Japan. Its revenues for the financial year 2012-13 exceeded $90 million, Gitanjali Gems said.
In addition to selling through Gem TV, the merged Imacbc plans to expand its existing jewellery retail network in Japan, Gitanjali Gems said. The combined revenue of consolidated business is expected to be more than double in next 2 years, Gitanjali Gems said in a statement.
BPCL rose 3.3% and Videocon Industries jumped 6.5% after announcing new gas discovery in offshore Rovumal block, Mozambique. Anadarko Mocambique Area 1 Limitada, the operator of the offshore Area 1 block in the Rovuma basin, Mozambique, has announced the discovery of a new natural gas accumulation fully contained within the Offshore Area 1 of the Rovuma basin. Bharat PetroResources (BPRL), a wholly owned subsidiary of BPCL, has 10% participating interest in the block. Videocon Mozambique Rovuma 1 also holds 10% participating interest in the block.
The Orca-1 discovery well encountered approximately 58 net metres of natural gas pay in a Paleocene fan system. The operator has informed that an initial two well appraisal program is being designed to define the areal extent of the Orca field, which will commence immediately after drilling of the Linguado and Espadarte exploration wells. Orca is a single large Paleocene column, and its proximity to shore provides additional options and flexibility for potential future developments.
The focus of the market is on Q4 results. HDFC Bank announces Q4 results tomorrow, 23 April 2013. Axis Bank will announce its Q4 March 2013 results on 24 April 2013. Jindal Steel & Power declares its Q4 results on 25 April 2013. Hero MotoCorp, ICICI Bank and Maruti Suzuki unveil Q4 results on 26 April 2013. IDFC announces Q4 results on 1 May 2013.
Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on 3 May 2013. Grasim announces Q4 March 2013 results on 4 May 2013. HDFC unveils Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Dr. Reddys Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013.
The Reserve Bank of India (RBI) will announce the Monetary Policy Statement 2013-14 on 3 May 2013. The RBI cut its key policy rate viz. the repo rate by 25 basis points to 7.5% after a mid-quarter monetary policy review on 19 March 2013. Inflation based on the monthly wholesale price index (WPI) eased the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed.
The India Meteorological Department will issue its initial forecast of 2013 southwest monsoon in this month.
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.
Parliament reconvened for the second half of the Budget Session today, 22 April 2013. The session ends on 10 May 2013.
European stock markets edged higher on Monday, taking inspiration from a strong session in Asia, where markets rallied as the yen tumbled after a statement from the Group of 20 major economies. Key benchmark indices in UK, Germany and France were up by 0.66% to 1.01%.
Asian stocks rose for the second day in a row on Monday led by Japanese exporters as the yen slid to a four-year low against the US dollar after the Bank of Japan's stimulus policies were unopposed at a Group of 20 meeting. Key benchmark indices in Japan, South Korea, Hong Kong, Singapore and Taiwan rose by 0.14% to 1.89%. Key benchmark indices in China and Indonesia shed by 0.03% to 0.11%.
Bank of Japan (BOJ) Governor Haruhiko Kuroda emerged from the G-20 meeting saying he was emboldened to press ahead with the campaign to defeat deflation. The central bank holds a policy meeting this week after pledging on 4 April 2013 to double the monetary base in two years.
The G-20 leaders refrained from criticizing Japan for policies that recently sent the yen to multiyear lows, which was widely interpreted as the international community offering its support for Tokyo's monetary stimulus.
Trading in US index futures indicated that the Dow could gain 76 points at the opening bell on Monday, 22 April 2013. US stocks rose on Friday as earnings from Google and other companies lifted tech shares.
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