Key benchmark indices reversed direction and moved into positive terrain in afternoon trade. The S&P BSE Sensex was currently above the psychological 20,000 mark, having alternately moved above and below that mark earlier in the day. The Sensex was up 38.36 points or 0.19%, off close to 30 points from the day's high and up about 90 points from the day's low. The market breadth, indicating the overall health of the market, was negative. Index heavyweight and cigarette major ITC was slightly higher. Another index heavyweight Reliance Industries (RIL) extended intraday losses.
Auto stocks were mostly higher. Shares of private banks declined. Shares of PSU banks gained. Union Bank of India spurted after reporting Q4 results. Punjab National Bank (PNB) shrugged off weak Q4 results.
Key benchmark indices pared gains after an initial upmove triggered by higher Asian stocks. The barometer index, the S&P BSE Sensex, hit its highest level in over 14 weeks above the psychological 20,000 mark. The CNX Nifty also scaled its highest closing level in more than 14 weeks. Key benchmark indices reversed initial gains to fall to intraday low in morning trade. The Sensex hovered in red in mid-morning trade. Key benchmark indices hovered in negative zone in early afternoon trade. The market moved into positive terrain in afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 976.99 crore on Wednesday, 8 May 2013, as per provisional data from the stock exchanges.
At 13:20 IST, the S&P BSE Sensex was up 38.36 points or 0.19% to 20,028.54. The index gained 68.30 points at the day's high of 20,058.48 in early trade, its highest level since 30 January 2013. The index fell 48.83 points at the day's low of 19,941.35 in early afternoon trade.
The CNX Nifty was up 5.75 points or 0.09% to 6,075.05. The index hit a high of 6,084.70 in intraday trade, its highest level since 29 January 2013. The index hit a low of 6,053.70 in intraday trade.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,116 shares declined and 1,003 shares advanced. A total of 141 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks declined while rest of them gained. Tata Consultancy Services (TCS), NTPC and Hindalco Industries rose by 0.58% to 1.53%. Sun Pharmaceutical Industries, Jindal Steel & Power and Sterlite Industries dropped by 1.42% to 2.52%.
Index heavyweight Reliance Industries (RIL) shed 1.48% to Rs 816.80 on profit booking. The scrip hit high of Rs 832 and a low of Rs 815.50 so far during the day. The stock had gained 3.48% in three trading days to Rs 829.10 on 8 May 2013 from a recent low of Rs 801.20 on 3 May 2013.
Index heavyweight and cigarette major ITC rose 0.06% to Rs 343, after hitting record high of Rs 345.85 in intraday trade. The tock hit low of Rs 341.55 in intraday trade today, 9 May 2013. 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.
Auto stocks were mostly higher. Mahindra & Mahindra (M&M) gained 1.16%. M&M on 6 May 2013 announced the launch of the 'Bolero Maxi Truck Plus' (BMT Plus) -- a pick-up vehicle to cater to urban transportation needs. The vehicle has been priced at Rs 4.33 lakh (BS3) ex-showroom Thane and Rs 4.43 lakh (BS4), ex-showroom Mumbai excluding Octroi.
Tata Motors rose 0.12%. The company's total sales fell 15% to 51,160 in April 2013 over April 2012. Total domestic sales fell 17% to 47,595 in April 2013 over April 2012. Exports rose 28% to 3,565 during the period. The company announced the monthly sales data on 1 May 2013.
Car maker Maruti Suzuki India declined 0.53%. The company on 7 May 2013 reported 7.58% fall in production to 1.05 lakh units in April 2013 over April 2012. The company's total sales fell 3.1% to 97,302 units in April 2013 over April 2012. The company's domestic sales rose 0.3% to 90,523 units in April 2013 over April 2012. Exports fell 33.3% to 6,779 units in April 2013 over April 2012. The company had announced its sales figures on 1 May 2013.
Two wheeler makers gained. Bajaj Auto rose 0.12%. The company's total sales fell 10% to 3.44 lakh units in April 2013 over April 2012. Motorcycle sales fell 12% to 3 lakh units in April 2013 over April 2012. Commercial vehicle sales rose 10% to 43,351 units in April 2013 over April 2012. Exports fell 23% to 1.30 lakh units in April 2013 over April 2012. The company announced the sales figures on 2 May 2013.
Hero MotoCorp gained 1.01%. The company said on 1 May 2013 its total sales fell 9.5% to 4.99 lakh in April 2013 over April 2012.
Shares of private banks declined. ICICI Bank declined 0.35%. Axis Bank fell 1.61%. HDFC Bank dropped 0.23%.
Shares of PSU banks gained. Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), rose 1.85%.
Among other PSU bank stocks, Canara Bank, Bank of India and Bank of Baroda rose by 1.68% to 2.91%.
Union Bank of India surged 5.85% after Q4 results. The bank's net profit rose 2.09% to Rs 789.38 crore on 15.41% growth in total income to Rs 7500.59 crore in Q4 March 2013 over Q4 March 2012. The bank announced Q4 results during trading hours today, 9 May 2013. The bank's board of directors at a meeting held today, 9 May 2013, recommended dividend of Rs 8 per share for the year ended 31 March 2013 (FY 2013).
The bank's net interest income (NII) rose 8.73% to Rs 1980 crore in Q4 March 2013 over Q4 March 2012. Net interest margin (on earning assets) was 2.89% in Q4 March 2013 compared to 3.16% in Q4 March 2012.
The bank's ratio of gross non-performing assets (NPAs) to gross advances decreased to 2.98% as on 31 March 2013, from 3.36% as on 31 December 2012 and 3.01% as on 31 March 2012. The ratio of net NPAs to net advances decreased to 1.61% as on 31 March 2013, from 1.7% as on 31 December 2012 and 1.7% as on 31 March 2012.
Indian Bank lost 0.29% after net profit declined 15.42% to Rs 292.12 crore on 14.99% growth in total income to Rs 4022.46 crore in Q4 March 2013 over Q4 March 2012. The bank announced Q4 results during trading hours today, 9 May 2013.
Indian Bank's ratio of gross non-performing assets (NPAs) to gross advances increased to 3.33% as on 31 March 2013, from 3.18% as on 31 December 2012 and 2.03% as on 31 March 2012. The ratio of net NPAs to net advances increased to 2.26% as on 31 March 2013, from 2.17% as on 31 December 2012 and 1.33% as on 31 March 2012.
Indian Bank's board of directors at a meeting held today, 9 May 2013, recommended dividend of Rs 6.60 per share for FY 2013.
Punjab National Bank (PNB) jumped 4.89%. The state-run bank during market hours today, 9 May 2013, reported 20.59% fall in net profit to Rs 1130.80 crore on 5.37% rise in total income to Rs 11552.84 crore in Q4 March 2013 over Q4 March 2012. The bank's net profit fell 2.8% to Rs 4747.67 crore on 13.35% rise in total income to Rs 46109.25 crore in the year ended March 2013 over the year ended March 2012.
PNB's board of directors at its meeting held today, 9 May 2013, recommended dividend of Rs 27 per share for the year ended 31 March 2013.
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.
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. NTPC announces Q4 results tomorrow, 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. L&T unveils Q4 results on 22 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.
The Central Statistics Office (CSO) will issue data on industrial production for March 2013 tomorrow, 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.
Most European stock markets edged lower on Thursday after Chinese data showed consumer price inflation rose more than expected in April, stoking fears the government will withhold more easing measures. Key benchmark indices in France and Germany dropped by 0.14% to 0.89%. UK's FTSE 100 rose 0.03%.
Asian stocks rose Thursday with South Korean stocks jumping after a surprise rate cut by the nation's central bank. Key benchmark indices in Taiwan, South Korea, Indonesia and Singapore rose by 0.23% to 1.18%. Key benchmark indices in Japan, China and Hong Kong fell by 0.27% to 0.66%.
China's consumer price index rose more than expected in April, while wholesale prices suffered a steeper fall. The April CPI showed a gain of 2.4% from a year earlier, led by a 4% rise in food prices, the National Bureau of Statistics said Thursday. The rise was more than March's 2.1% increase, though below February's spike of 3.2%. The producer price index, meanwhile, fell by the most since October, dropping 2.6% against a decline of 1.9% in March.
The Bank of Korea on Thursday cut its key interest rate by a quarter-point to 2.5%.
Trading in US index futures indicated that the Dow could fall 9 points at the opening bell on Thursday, 9 May 2013. US stocks rose Wednesday, with the S&P 500 extending record gains into a fifth session, after companies including Electronic Arts Inc. projected earnings that beat estimates.
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