Key benchmark indices edged lower in choppy trade on last trading day of the week as Asian and European stocks dropped. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, settled at over one-week low. The S&P BSE Sensex was down 41.91 points or 0.2%, off 98.64 points from the day's high and up 60.97 points from the day's low. The market breadth, indicating the overall health of the market, was negative. Indian stocks fell for the fourth straight trading session today, 25 October 2013.
Index heavyweight and cigarette major ITC reversed intraday gain in late as the company's top line growth in Q2 September 2013 disappointed investors. Another index heavyweight Reliance Industries (RIL) edged lower in choppy trade after the company said its subsidiary Reliance Jio Infocomm (RJIL) has received Unified License for all 22 service areas across India. GAIL (India) dropped after the company reported weak Q2 result in late trade. IT stocks edged higher.
Metal and mining stocks edged lower. NMDC fell after reporting weak Q2 result. Engineering and construction giant L&T dropped on profit booking after recent rally triggered by the company reporting strong growth in order inflow in Q2 September 2013 at the time of announcement of its Q2 September 2013 results on 18 November 2013. Shares of FMCG firm Dabur India hit record high. Private bank major ICICI Bank rose in volatile trade after reporting good Q2 result.
Idea Cellular declined as the company's net profit declined on sequential basis in Q2 September 2013. Shares of other telecom firms also declined after Idea Cellular's Q2 results. Auto stocks dropped. Adani Ports and Special Economic Zone slumped after announcing good Q2 results. Adani Power dropped as the company's consolidated net losses widened in Q2 September 2013. Realty stocks edged lower.
The S&P BSE Sensex lost 41.91 points or 0.2% to settle at 20,683.52, its lowest closing level since 17 October 2013. The index rose 56.73 points at the day's high of 20,782.16 in mid-afternoon trade. The index lost 102.88 points at the day's low of 20,622.55 in afternoon trade.
The CNX Nifty shed 19.45 points or 0.32% to 6,144.90, its lowest closing level since 17 October 2013. The index hit a high of 6,174.75 in intraday trade. The index hit a low of 6,125.95 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,392 shares declined and 1,049 shares gained. A total of 160 shares were unchanged.
The BSE Mid-Cap shed 0.51% and the BSE Small-Cap index declined 0.47%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 1736 crore, lower than Rs 2073 crore on Thursday, 24 October 2013.
Index heavyweight and cigarette major ITC reversed intraday gain in late as the company's top line growth in Q2 September 2013 disappointed investors. The stock fell 1.52% to Rs 337.35, with the scrip reversing intraday gain after the company declared Q2 result at fag end of the day's trading session. The stock hit a high of Rs 347 and low of Rs 336.20. Net profit jumped 21.46% to Rs 2230.53 crore on 9.42% growth in total income to Rs 8108.72 crore in Q2 September 2013 over Q2 September 2012.
Britannia Industries shed 0.48%. The company after market hours on Thursday, 24 October 2013, said that the company routinely keeps evaluating various opportunities of rationalizing/restructuring its business including various divisions and has nothing to disclose. The company made the announcement in clarification to a media report which indicated that Britannia Industries is in a process to sell its bakery foods subsidiary Daily Bread.
Dabur India gained 3.37% to Rs 182.50 after striking a record high of Rs 183.40 in intraday trade.
Shriram Transport Finance Company rose 3.14% to Rs 565.35. The company will declare Q2 results on 29 October 2013.
Index heavyweight Reliance Industries (RIL) fell marginally by 0.03% to Rs 884.30. The stock hit a high of Rs 892.30 and low of Rs 879.15. RIL during market hours today, 25 October 2013, said its subsidiary Reliance Jio Infocomm (RJIL) has received Unified License for all 22 service areas across India. RJIL has thus become the first telecom operator in the country to get pan India Unified License. The Unified License would allow RJIL to offer all telecom services including voice telephony under a single license.
With grant of Unified License, RJIL has migrated its existing ISP license along with Broadband Wireless Access (BWA) spectrum to the Unified License with authorisation for all services except Global Mobile Personal Communication by Satellite Service (GMPCS) under Unified License in all service areas, RIL said in a statement.
GAIL (India) dropped after the company reported weak Q2 result in late trade. The stock lost 2.68%. GAIL (India)'s net profit fell 7.07% to Rs 915.67 crore on 21.94% rise in total income to Rs 14224.37 crore in Q2 September 2013 over Q2 September 2012. The result was announced during market hours today, 25 October 2013. In terms of the decision of the Government of India to share the under recoveries on LPG with public sector oil marketing companies (PSU OMCs), the company has provided provisional discount of Rs 698.68 crore in Q2 September 2013, lower than the discount of Rs 785.67 crore in Q2 September 2012.
Auto stocks dropped. M&M (down 2.23%), Tata Motors (down 1.03%), Ashok Leyland (down 1.76%), Hero MotoCorp (down 2.47%) and Bajaj Auto (down 0.4%), declined.
Maruti Suzuki India fell 0.48% ahead of its Q2 result on Monday, 28 October 2013.
TVS Motor Company rose 1.91% after net profit jumped 96.59% to Rs 88.84 crore on 16.12% increase in total income from operations to Rs 1988.37 crore in Q2 September 2013 over Q2 September 2012. The result was announced during trading hours today, 25 October 2013
TVS Motor Company reported an exceptional gain of Rs 30.28 crore in Q2 September 2013. Profit before tax and exceptional item jumped 52% to Rs 88.17 crore in Q2 September 2013 over Q2 September 2012.
During the quarter ended September 2013, the company divested its majority stake in TVS Energy. The profit on sale of stake is shown as an exceptional gain. TVS Energy and its two subsidiaries ceased to be subsidiaries of the company with effect from 16 August 2013.
Metal and mining stocks edged lower. Jindal Steel & Power (down 1.2%), Hindustan Zinc (down 1.68%), National Aluminium Company (down 2.37%), Tata Steel (down 3.04%), Sail (down 1.8%), and Hindalco Industries (down 4.8%), declined. Sesa Sterlite rose 1.31%.
NMDC lost 3.93% after net profit declined 21.46% to Rs 1318.36 crore on 5.53% fall in total income to Rs 3018.29 crore in Q2 September 2013 over Q2 September 2012. The company announced result after market hours on Thursday, 24 October 2013.
C.S. Verma, CMD of NMDC said: "NMDC is gearing up to ramp up its production and dispatches vigorously which is evident from these results. Inspite of adverse conditions, NMDC has outperformed by showcasing growth in both production and dispatches. The resilient nature of NMDC would ensure to cope up with the challenges and would create new opportunities for sustainable growth."
Shares of engineering and construction giant L&T dropped on profit booking after recent rally triggered by the company reporting strong growth in order inflow in Q2 September 2013 at the time of announcement of its Q2 September 2013 results on 18 October 2013. The stock shed 1.79% at Rs 947.30. L&T on 18 October 2013 said its recurring profit after tax rose 7% to Rs 978 crore on 10% growth in gross revenue at Rs 14648 crore in Q2 September 2013 over Q2 September 2012. The company attributed top line growth to pick-up in execution of various jobs.
Suzlon Energy surged 4.98% to Rs 10.76, extending gains for the tenth consecutive session in a row. The stock has risen 55.27% in 10 straight sessions from a recent low of Rs 6.93 on 10 October 2013. Suzlon will declare Q2 results on 30 October 2013.
IT stocks edged higher. Infosys rose 0.55% to Rs 3,328. The scrip had hit a 52-week high of Rs 3,372 in intraday trade on Thursday, 24 October 2013. The company announced after market hours on Thursday, 24 October 2013, that the head of its banking services solution platform Finacle, Haragopal Mangipudi, and 11 others have been inducted to its top decision-making body, the Executive Council. The Council is the company's top-level body, which is responsible for strategic decision-making. It includes the company's executive board, the heads of its key business units and strategic business-enabler units, the company said in a filing with the Bombay Stock Exchange and the US Securities Exchange Commission.
TCS rose 2.92% to Rs 2,067.30. The stock turned ex-dividend today, 25 October 2013, for a second interim dividend of Rs 4 per share for the year ending 31 March 2014. The stock had hit record high of Rs 2,258.05 in intraday trade on 15 October 2013.
Wipro gained 2.42% on bargain hunting after recent steep fall triggered by the company's dollar revenue growth from IT services in Q2 September 2013 lagging that of its peer companies. Wipro announced Q2 result on Tuesday, 22 October 2013.
Wipro reported 28% growth in consolidated net profit from continuing operations to Rs 1932 crore on 19% growth in revenue from continuing operations at Rs 10992 crore in Q2 September 2013 over Q2 September 2012. The results are as per International Financial Reporting Standards. Wipro said non-GAAP adjusted net profit from continuing operations jumped 29% to Rs 1932 crore in Q2 September 2013 over Q2 September 2012.
Non-GAAP constant currency IT services revenue in dollar terms grew 3.2% sequentially and 7.9% year-on-year (YoY), Wipro said. IT services revenue stood at $1.6311 billion in Q2 September 2013, a sequential increase of 2.7% and YoY increase of 5.9%. IT services revenues in rupee terms stood at Rs 10068 crore in Q2 September 2013, an increase of 20% YoY. IT services Earnings Before Interest and Tax (EBIT) was Rs 2264 crore in Q2 September 2013, an increase of 31% YoY.
Wipro expects 1.77% to 3.61% growth in revenues from IT services business at $1.66 billion to $1.69 billion in Q3 December 2013 over Q2 September 2013.
HCL Technologies gained 2.57% to Rs 1,080.95. The stock had hit record high of Rs 1,177 in intraday trade on 15 October 2013. The company last week said its consolidated net profit as per US accounting standards jumped 18.7% to Rs 1416 crore on 14% growth in revenue to Rs 7961 crore in Q1 September 2013 over Q4 June 2013.
Private bank major ICICI Bank rose 0.13% to Rs 1022.95 after reporting good Q2 result. The stock was volatile. The stock hit high of Rs 1,037 and low of Rs 1,007.90. ICICI Bank's net profit rose 20.24% to Rs 2352.05 crore on 7.54% rise in total income to Rs 12979.75 crore in Q2 September 2013 over Q2 September 2012. The bank announced result during market hours.
ICICI Bank's operating profit excluding treasury jumped 31% to Rs 3967 crore in Q2 September 2013 over Q2 September 2012. Net interest income (NII) rose 20% to Rs 4044 crore in Q2 September 2013 over Q2 September 2012. Net interest margin (NIM) increased to 3.31% in Q2 September 2013, from 3% in Q2 September 2012 and from 3.27% in Q1 June 2013.
Fee income rose 17% to Rs 1994 crore in Q2 September 2013 over Q2 September 2012.
Cost-to-income ratio reduced to 37.3% in Q2 September 2013, from 40.9% in Q2 September 2012.
ICICI Bank said it has fully recognised the mark-to-market provisions of Rs 279 crore on its investment portfolio, and has not availed the option permitted by the Reserve Bank of India of recognising the same over three quarters.
ICICI Bank said it has seen healthy trends in current and savings account (CASA) deposits mobilisation. The bank's CASA ratio was maintained at 43.3% at end September 2013. The average CASA ratio improved to 40.3% in Q2 September 2013, from 39% in Q1 June 2013.
Total advances increased by 16% year-on-year to Rs 317786 crore as on 30 September 2013 from Rs 275076 crore as on 30 September 2012. The year-on-year growth in domestic advances was 14%. The bank has continued to see healthy growth in its retail disbursements. The outstanding mortgages and auto loan portfolios for the bank have grown by 23% and 27% respectively on a year-on-year basis at 30 September 2013. ICICI Bank has seen a year-on-year growth of 20% in its total retail portfolio at 30 September 2013.
ICICI Bank's capital adequacy as on 30 September 2013 as per Reserve Bank of India's guidelines on Basel III norms was 16.5% and Tier-1 capital adequacy was 11.33%, well above regulatory requirements. Including the profits for half-year ended 30 September 2013, the capital adequacy ratio for the bank as per Basel III norms would have been 17.21% and the Tier I ratio would have been 12.04%.
Net non-performing assets as on 30 September 2013 were Rs 2707 crore, compared to Rs 2472 crore as at 30 June 2013. The net non-performing asset ratio (NPA) was 0.73% as on 30 September 2013, higher than 0.69% as on 30 June 2013. The bank's provision coverage ratio, computed in accordance with the RBI guidelines was 73.1% at end September 2013. Net loans to companies whose facilities have been restructured were Rs 6826 crore as on 30 September 2013, compared with Rs 5915 crore as on 30 June 2013.
On consolidated basis, ICICI Bank's net profit rose 12.84% to Rs 2697.42 crore on 2.18% growth in total income to Rs 19015.58 crore in Q2 September 2013 over Q2 September 2012.
Mr. Rakesh Jha, Deputy Chief Financial Officer of the bank has been designated as Chief Financial Officer of ICICI Bank. He will continue to report to Mr. N. S. Kannan, Executive Director, ICICI Bank said.
HDFC Bank rose 0.4%. The bank said after market hours on Thursday, 24 October 2013, that the bank, acting through its Bahrain branch, has priced on 23 October 2013, $500 million Fixed Rate Senior Unsecured Notes (Notes) under its $2 billion MTN programme. The Notes carry a coupon of 3% per annum payable semi annually and are maturing on 30 November 2016. The Notes will be listed on the Singapore Stock Exchange.
Cairn India lost 3.25% on turning ex-dividend today, 25 October 2013, for an interim dividend of Rs 6 per share for the year ending 31 March 2014.
Container Corporation of India fell 1.16%. The company after market hours today, 25 October 2013, reported 4.39% increase in net profit to Rs 242.68 crore on 17.31% growth in total income to Rs 1332.46 crore in Q2 September 2013 over Q2 September 2012.
Idea Cellular slipped 1.97% on fall in net profit on sequential basis in Q2 September 2013. The company's consolidated profit after tax declined 3.26% to Rs 447.60 crore on 3.29% fall in total revenue to Rs 6323.30 crore in Q2 September 2013 over Q1 June 2013.
With increasing proportion of rural subscribers, the seasonal slowdown in the second quarter has become more pronounced resulting in sharp contraction in the 'Voice Minutes of Use' by 5.8% to 138.8 billion minutes compared to 147.3 billion minutes in Q1 June 2013, Idea Cellular said. The long term business trends remain robust and company is on course of its mission of consistent, competitive, responsible and profitable growth, it said.
As competitive intensity in the telecom sector declines and as the overcapacity phase comes to an inevitable end and also as visibility of spectrum quantum and pricing improves, Idea Cellular expects to further consolidate its position in the telecom voice and data market, the company said in a statement.
Shares of other telecom firms also declined after Idea Cellular's Q2 results. Bharti Airtel (down 1.7%), and Reliance Communications (down 2.62%) declined.
Shree Cement fell 0.12% on weak Q1 results. Net profit fell 24.5% to Rs 172.22 crore on 0.58% fall in total income to Rs 1321.49 crore in Q1 September 2013 over Q1 September 2012. The result was announced during market hours today, 25 October 2013.
Adani Ports and Special Economic Zone slumped 7.24%. On a consolidated basis, the company reported 24% growth in profit after tax to Rs 342 crore on 81% surge in total income to Rs 1407 crore in Q2 September 2013 over Q2 September 2012. The result was announced during market hours today, 25 October 2013.
The consolidated cargo handled by the company rose 30% to 28.08 MMT in Q2 September 2013 over Q2 September 2012.
Commenting on the results, Mr. Gautam Adani, Chairman, Adani Ports & SEZ said: "With Mundra Port firmly established as No. 1 port of the country, we have continued our endeavor to maintain leadership position not only in volume and margin growth but also in implementing best practices in processes, service levels, Corporate Social Responsibility and people development. Our thrust is to create value for all our stakeholders on multi dimensions".
Mr. B Ravi, Chief Financial Officer, Adani Ports & SEZ, said that the company has grown at a stupendous rate quarter on quarter. "Our continuous focus has been to increase efficiency by optimizing and improving the operations at our ports and the growth is a result of such focused effort".
Adani Power lost 5.92%. On a consolidated basis, the company reported net loss of Rs 1071.91 crore in Q2 September 2013, higher than net loss of Rs 260.91 crore in Q2 September 2012. Total income jumped 100.36% to Rs 3108.30 crore in Q2 September 2013 over Q2 September 2012. The result was announced during market hours today, 25 October 2013.
Unichem Laboratories rose 1.89% after the company said it has received the consideration amount of Rs 160.50 crore of the sale proceeds from the sale of its Indore SEZ Plant. The announcement was made during trading hours today, 25 October 2013. It may be recalled that Unichem Laboratories' board of directors at its meeting held on 15 February 2013 had approved the sale of Indore SEZ Plant to Mylan Laboratories and members of the company had approved the sale on 29 March 2013 through postal ballot.
Monsanto India rose 1.14% after the company reported net profit of Rs 7.59 crore in Q2 September 2013 as against net loss of Rs 12.11 crore in Q2 September 2012. Monsanto India's net sales rose 70.7% to Rs 95.49 crore in Q2 September 2013 over Q2 September 2012. The Q2 result was announced after market hours on Thursday, 24 October 2013.
Atul jumped 7.57% after net profit rose 14% to Rs 55.54 crore on 6.9% fall in net sales to Rs 574.35 crore in Q2 September 2013 over Q2 September 2012. The company announced result after market hours on Thursday, 24 October 2013.
Deepak Fertilisers and Petrochemicals Corporation rose 1.65% after net profit rose 11.8% to Rs 45.44 crore on 42.9% increase in net sales to Rs 983.79 crore in Q2 September 2013 over Q2 September 2012. The company announced result after market hours on Thursday, 24 October 2013.
Realty stocks edged lower. DLF (down 4.9%), Indiabulls Real Estate (down 1.81%), D B Realty (down 3.15%), HDIL (down 1.79%), Unitech (down 1.15%), Oberoi Realty (down 4.57%), and Parsvnath Developers (down 0.19%) declined.
In the foreign exchange market, the rupee edged lower against the dollar on dollar buying by custodial banks ahead of the Reserve Bank of India's monetary policy review next week. The partially convertible rupee was hovering at 61.56, compared with its close of 61.46/47 on Thursday, 24 October 2013.
European stocks dropped on Friday, 25 October 2013, after a disappointing take on German business confidence and as investors digested another round of quarterly earnings. Key benchmark indices in France and Germany shed 0.04% to 0.13%. UK's FTSE 100 index rose 0.06%.
German business sentiment unexpectedly deteriorated in October as sales expectations slipped in most sectors, including manufacturing, indicating that the economy is only gradually regaining its strength. The Ifo institute's business confidence index dropped for the first time in six months, to 107.4 in October from 107.7 in September.
The UK economy grew at the fastest rate in more than three years during the third quarter, official data showed Friday, an indication the recovery that began earlier this year is picking up speed. In its preliminary estimate, the Office for National Statistics said gross domestic product grew 0.8% between July and September compared with the second quarter, when it grew 0.7%. Friday's quarterly data is the strongest growth since the second quarter of 2010 when the economy grew 1%.
Economic output was 1.5% higher compared with the third quarter of 2012. On an annualized basis, GDP grew an estimated 3.2%, the ONS said.
Asian markets declined on Friday, 25 October 2013, as forecasts from Canon Inc. to Posco disappointed investors. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Japan, Indonesia and South Korea fell by 0.3% to 2.75%.
South Korea's economic growth maintained the same robust pace in the third quarter as the preceding quarter, beating market expectations and bolstering hopes that Asia's fourth-largest economy stays on a recovery track. Gross domestic product rose a seasonally adjusted 1.1% in the July-September period from the previous quarter, when the economy grew at the same pace, the Bank of Korea said Friday. That is the strongest pace since the first quarter of 2011, when the economy grew 1.3% on quarter. On a year-on-year basis, the economy expanded 3.3% in the third quarter, accelerating from the second-quarter's 2.3% gain.
Trading in US index futures indicated that the Dow could fall 6 points at the opening bell on Friday, 25 October 2013. US stocks climbed on Thursday, with the S&P 500 gaining a day after halting a run to a record high, as economic data underscored views US monetary stimulus will be in place for long time.
The preliminary reading of Markit's US flash manufacturing purchasing managers index slipped to 51.1 in October from 52.8 in September, the lowest level for a year. Readings above 50 indicate expansion and the PMI in October signals only modest manufacturing growth.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
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