Key benchmark indices settled marginally lower amid a choppy trading session. The barometer index, the S&P BSE Sensex, was provisionally down 25.53 points or 0.11%, off close to 180 points from the day's high and up about 5 points from the day's low. The market breadth, indicating the overall health of the market, was positive. The BSE Mid-Cap index and the BSE Small-Cap index, both, outperformed the Sensex. IT stocks edged higher. Metal stocks declined.
Indian stocks fell for the fifth day in a row today, 2 May 2014.
The market edged higher in early trade. It trimmed initial gains and hit fresh intraday low in morning trade. It hovered in positive terrain in mid-morning trade. Indices were trading marginally higher in early afternoon trade. Key benchmark indices bounced back from fresh intraday low levels in afternoon trade. It pared gains and were trading almost unchanged in mid-afternoon trade. It slipped into the red and hit fresh intraday low in late trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 454.48 crore on Wednesday, 30 April 2014, as per provisional data from the stock exchanges.
As per provisional figures, the S&P BSE Sensex was down 25.53 points or 0.11% to 22,392.27. The index fell 30.85 points at the day's low of 22,386.95 in late trade. The index rose 157.82 points at the day's high of 22,575.62 in early trade.
The CNX Nifty was down 3.80 points or 0.06% to 6,692.60, as per provisional figures. The index hit a low of 6,689.50 in intraday trade. The index hit a high of 6,737.65 in intraday trade.
The BSE Mid-Cap index rose 34 points or 0.46% to 7,357.46. The BSE Small-Cap index rose 42.94 points or 0.57% to 7,532.81. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2296 crore, lower than Rs 3,119.85 crore on Wednesday, 30 April 2014.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,427 shares gained and 1,308 shares fell. A total of 123 shares were unchanged.
Among the 30-share Sensex pack, 15 stocks gained and rest of them fell. L&T (down 2.59%), NTPC (down 1.59%), and SBI (down 1.58%) edged lower from the Sensex pack.
Coal India rose 0.99%. The company said during market hours that as per provisional basis the production in April of the company and its subsidiaries was 100% of its targeted production at 37.51 million tonnes. Offtake in April was 90% of its targeted offtake at 40.54 million tonnes.
Most metal stocks declined for the second day in a row triggered by reports the Chinese Academy of Social Sciences (CASS), one of Beijing's top government think tanks, revising its 2014 GDP growth forecast down to 7.4%, below the official 7.5%target, and said that growth could slow to as low as 7%. China is the world's largest consumer of copper and aluminum. Sesa Sterlite (down 2.94%), Tata Steel (down 2.46%), Hindustan Zinc (down 1.83%), Steel Authority of India (SAIL) (down 1.49%), Hindalco Industries (down 3%), Bhushan Steel (down 0.45%) and Jindal Steel & Power (down 5.71%), edged lower. JSW Steel (up 0.79%), NMDC (up 1.6%), and National Aluminum Company (up 1.17%) edged higher.
Index heavyweight Reliance Industries (RIL) declined 0.95%.
IT stocks edged higher. Infosys (up 1.35%), TCS (up 1.17%), Wipro (up 1.34%) and Tech Mahindra (up 0.04%) gained.
HCL Technologies gained 2.02%. The company continues to focus on local hiring and workforce training & development to build a vast talent pool as it expands its presence in the United States, its largest market. The company made this announcement on 1 May 2014. The company has created a distinctive culture of employee-driven innovation to yield excellent business outcomes for both HCL and its customers. This culture known as 'Ideapreneurship 'reflects grassroots innovation that is business-driven and customer-focussed, where employees create value for customers by leveraging the role based learning curriculum HCL offers, developing innovative solutions and adding value to the strategic IT initiatives of an expanding US client base of Fortune 500 companies, it added.
"AT HCL, we believe in engaging and enabling our employees who epitomize the distinctive and lasting beliefs that form the foundation of what HCL offers, said Anant Gupta, President and CEO, HCL Technologies. "Our vision is to create growth multipliers for clients by empowering our employees to achieve excellence and create differentiated value," he added.
HCL continues to grow its operations, employee base and customer relationships across the United States. During the quarter ended 31 March 2014, HCL America contributed 55.4% of HCL's global revenues and grew 11% year on year, it said in a statement.
Hindustan Construction Company surged 7.09% after the company reported a net profit of Rs 24.40 crore in Q4 March 2014 as against net loss of Rs 50.30 crore in Q4 March 2013. The Q4 result was announced during trading hours today, 2 May 2014.
Hindustan Construction Company (HCC)'s turnover rose 20% to Rs 1184 crore in Q4 March 2014 over Q4 March 2013. Operating profit surged 92% to Rs 170 crore in Q4 March 2014 over Q4 March 2013. EBITDA margin spurted to 14.8% in Q4 March 2014, from 9% in Q4 March 20123.
HCC reported a net profit of Rs 80.64 crore in the year ended 31 March 2014 (FY 2014) as against net loss of Rs 137.64 crore in the year ended 31 March 2013 (FY 2013).
HCC's turnover rose 7% to Rs 4113 crore in FY 2014 over FY 2013. Operating profit surged 67% to Rs 640 crore in FY 2014 over FY 2013.
EBITDA margin surged to 15.86% in FY 2014, from 9.99% in FY 2013. The company's current order book stood at Rs 14249 crore, excluding L1 contracts worth Rs 1291 crore.
During FY 2014, the company secured nine new orders worth Rs 3218 crore. After two years of losses, the company improved its performance quarter by quarter to post a net profit, HCC said. Efficient project management and tight cost control has helped to improve margins, HCC said in a statement.
Commenting on the company's financial performance, Ajit Gulabchand, CMD, HCC said, "In an uncertain economic scenario, our focus remained on improving the operational efficiency. The company will continue to implement measures aimed at further improvement in all financial parameters. Inflow of Rs 3218 crore orders during last six months will help to improve the turnover in the next few quarters".
Shriram City Union Finance surged 4.14% after consolidated net profit rose 20.49% to Rs 151.36 crore on 0.85% decline in total income to Rs 833.94 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Wednesday, 30 April 2014. The stock market was closed on Thursday, 1 May 2014, on account of May Day.
Shriram City Union Finance's consolidated net profit rose 18.4% to Rs 532.16 crore on 5.76% growth in total income to Rs 3278.72 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
Shriram City Union Finance's board of directors at its meeting held on Wednesday, 30 April 2014, recommended final dividend of Rs 6 per share for FY 2014, subject to the approval of the shareholders at the ensuing Annual General Meeting of the company.
Shriram City Union Finance's board at its meeting held on Wednesday, 30 April 2014, subject to the approval of shareholders, approved issue of upto 65.79 lakh equity shares of Rs 10 each to Piramal Enterprises for cash on Preferential basis at Rs 1,200 per share (including a premium of Rs 1,190 per equity share) which is the price higher than the price determined in accordance with the Regulation 76(1) of Chapter VII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, the relevant date for this purpose being 30 April 2014.
Further, it was decided to convene an Extraordinary General Meeting to obtain the approval of shareholders with regard to the above on 30 May 2014, Shriram City Union Finance said.
Carborundum Universal advanced 1.77% after consolidated net profit jumped 107.7% to Rs 24.94 crore on 9.7% rise in net sales to Rs 525.05 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 30 April 20140. The stock market was closed on Thursday, 1 May 2014 on account of May Day.
Carborundum Universal's consolidated net profit rose 1.9% to Rs 91.51 crore on 7.8% rise in net sales to Rs 2093.88 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
Carborundum Universal said that the increase in sales on full year basis was largely due to better performance by Electro Minerals division. The division witnessed better volumes in silicon carbide business in Russia and Zirconia business in South Africa. Abrasives division also registered growth. Ceramics segment, however degrew in sales due to postponement of projects in domestic market during most parts of the year. Profitability of Abrasives and Ceramics business came under pressure on a full year basis. However, Electro minerals business' profit margin improved on the back of higher volumes, Carborundum Universal said in statement.
Carborundum Universal managed its working capital well and repaid loans to improve standalone debt equity, which is at its lowest. The company, at consolidated level, spent Rs 94 crore on capital expenditure in the year ended 31 March 2014.
Sales of the abrasives business on a consolidated basis registered an increase of 6.2% on a full year basis. Sales for the year was Rs 860 crore (Rs 809 crore for the corresponding period of last year). However, profit before interest and tax on a consolidated basis recorded a drop of 27.5% i.e. from Rs 83 crore to Rs 60.1 crore. The division witnessed an increase in cost push which had an adverse impact on the profits.
Consolidated net sales of Electro Minerals business rose 21.1% to Rs 810 crore in Q4 March 2014 over Q4 March 2013. Profit before interest and tax on a consolidated basis recorded an increase, from Rs 23.7 crore to Rs 80.7 crore, on a full year basis. This was largely due to volume gain in both Russian and South African subsidiaries from a lower base in the corresponding year.
The ceramics segment recorded a 5.7% drop in sales on a full year consolidated basis (Rs 470.7 crore vs. Rs 499.1 crore last year). Refractories sales were lower owing to delayed project orders from user industries. Alumina Ceramics business from India, had challenges from market due to project postponements. However in the current quarter the business has delivered good growth both on a quarter on quarter basis and sequential basis. Australian entity registered lower sale. Profit before interest and tax of the ceramics business on a consolidated basis recorded a drop from Rs 78.9 crore to Rs 58.9 crore, on a full year basis.
The Board of Directors of the company at its meeting held on 30 April 2014 has recommended a final dividend of Rs 0.5 per share.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.2425, compared with its close of 60.34 on Wednesday, 30 April 2014. Financial markets remained closed on Thursday, 1 May 2014 on account of May Day.
Factories across India continued to report improving operating conditions in April. That said, growth of both production and new orders moderated in the latest month, Markit Economics said today, 2 May 2014. On the price front, input costs and charges rose at softer rates that were weaker than their respective long-run averages.
Unchanged from March's reading of 51.3, the seasonally adjusted HSBC India Purchasing Managers' Index (PMI) indicated a further improvement in operating conditions during April. Nonetheless, growth remained modest and historically muted.
Manufacturing production rose for the sixth successive month in April, amid reports of improved new business inflows. Nonetheless, growth of output waned on the back of competitive pressures and power outages. Sector data highlighted higher production in two of the three monitored categories, namely consumer and intermediate goods.
Amid reports of stronger demand, new orders received by Indian manufacturers grew further in April. That said, the overall pace of expansion eased slightly since March, as increased competition for new work and the elections reportedly hampered growth. Incoming new business rose at consumer and intermediate goods producers, while a reduction was noted in the investment goods sub-sector.
Growth of new export orders eased from March's 35-month peak to the slowest since January. Overseas demand improved at consumer and intermediate goods firms, whereas capital goods producers recorded lower foreign orders in April.
Indian manufacturers indicated that staffing levels rose for the seventh month running in April. The rate of employment growth was, however, fractional overall as the majority of survey participants (around 97%) indicated no change in employee headcounts since March.
April data highlighted purchasing activity growth for the sixth month in succession. Furthermore, the rate of expansion accelerated to the strongest in one year. Panellists commented that a combination of stronger demand and efforts to build-up inventories had been behind the rise in input buying.
Both pre-and post-production stocks rose in April. Holdings of raw materials and semi-manufactured goods increased for the first time in five months, although modestly. Inventories of manufactured goods expanded at a solid rate that was the quickest since September 2012.
Average purchase costs increased in April, amid evidence of higher prices paid for metals, chemicals, plastics, paper, textiles and energy. However, the rate of cost inflation softened to the slowest since last May. Additional cost burdens were partly passed on, as tariffs rose further. Nevertheless, the rate of charge inflation was only marginal and the joint-weakest in the current eleven-month inflationary sequence.
Commenting on the India Manufacturing PMI survey, Leif Eskesen, Chief Economist for India & ASEAN at HSBC said: "The momentum in the manufacturing sector held broadly steady, with domestic demand countering a slowdown in export orders. However, a build-up in finished goods inventories could weigh on output growth in coming months in the absence of a pick-up in demand. Encouragingly, inflation pressures eased, but that does not mean that the RBI can take down its inflation guards.
Eight core sector industries increased 2.5% in March as against 7% in the same month in 2013. On account of higher outputs from coal, petroleum, steel and electricity, the eight key infrastructure industries grew by 2.5% in March. The eight core sector grew by 4.5% in February, while in January, the industries had grown by 1.6%. Overall, the core sector industries grew by 2.6% in FY14 compared to the 6.5% in FY13. Coal production grew by 0.7% in March 2014 compared to the same month in 2013. Steel production and electricity generation also grew by 5.4% each in March 2014 compared to March 2013.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
European stocks were trading almost unchanged on Friday, with investors avoiding strong bets ahead of the widely tracked US jobs data and an escalation in tensions in Ukraine. Key benchmark indices in UK and Germany were up by 0.03% to 0.06%. France's CAC 40 fell 0.32%.
The euro-area unemployment rate held at 11.8% in March, as the 18-nation currency bloc struggled to shake off the legacy of the debt crisis. The European Union's statistics office in Luxembourg revised the rate for the previous three months down to 11.8% from 11.9%, according to a report today.
Euro-area manufacturing grew at the fastest pace in three months in April on accelerating expansion in Germany and Italy, evidence the currency bloc's recovery remains on track. A Purchasing Managers' Index increased to 53.4 from 53 in March, Markit Economics said in a statement today. That exceeded a preliminary reading of 53.3 published on April 23. The measure has exceeded the level of 50, indicating expansion, for the past 10 months.
Asian stocks edged lower on Friday as investors weighed corporate earnings before the release of US non-farm payrolls later in the global day today, 2 May 2014. Key benchmark indices in Indonesia, Japan, Singapore and South Korea were off 0.03% to 0.37%. Key benchmark indices in Taiwan and Hong Kong rose 0.57% to 0.86%. Chinese stock markets were closed today for a holiday.
China's official manufacturing purchasing managers' index rose to 50.4 in April.
Trading in US index futures indicated that the Dow could gain 12 points at the opening bell on Friday, 2 May 2014. US stocks ended little changed on Thursday, with the Dow Jones Industrial Average falling from a record, as data showed an increase in jobless claims before the government's monthly labor report.
The Federal Reserve after a two-day meet on Wednesday, 30 April 2014 said it would continue to trim the pace of bond purchases as the economy gains momentum. The central bank cut its monthly asset purchases to $45 billion and said further reductions in measured steps are likely.
Fed Chairwoman Janet Yellen is winding down record stimulus as the world's largest economy shows signs of rebounding from a first-quarter standstill.
Data showed applications for US unemployment benefits unexpectedly climbed to a nine-week high last week, while consumer spending surged in March by the most in almost five years as warmer weather brought shoppers back to auto-dealer lots and malls.
The US non-farm payrolls data for April is due later today.
The Institute for Supply Management's factory index rose to 54.9 in April from 53.7 in the prior month, the Tempe, Arizona-based group's report showed today. Readings above 50 indicate expansion. The ISM's factory gauge averaged 53.9 for all of last year.
The US economy barely grew in the first quarter as the severe winter hampered exports and led businesses to curtail investment spending, but activity already appears to be bouncing back. Gross domestic product expanded at a 0.1% annual rate, the slowest since the fourth quarter of 2012, the Commerce Department said on Wednesday.
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