Key benchmark indices edged higher in early trade as Asian stocks rose on speculation Federal Reserve policy makers won't announce any major changes to monetary stimulus when they conclude a meeting today, 30 October 2013. The US central bank currently buys $85 billion a month in US debt and mortgage-backed securities in a bid to hold interest rates low and encourage economic growth. Fed's bond-buying program has been a source of liquidity for most Asian and emerging markets this year. The S&P BSE Sensex moved past the psychological 21,000 mark. The Sensex was up 84.47 points or 0.4%, up about 75 points from the day's low and off close to 25 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
Bharti Airtel rose after reporting Q2 result. NTPC shrugged off weak Q2 result. Ranbaxy Laboratories dropped after the company reported reverse turnaround in Q3 September 2013.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1103.04 crore on Tuesday, 29 October 2013, as per provisional data from the stock exchanges.
The market may remain volatile in the immediate future as traders roll over positions in the futures & options (F&O) segment from the near month October 2013 series to November 2013 series. The near month October 2013 derivatives contract expire tomorrow, 31 October 2013.
At 9:30 IST, the S&P BSE Sensex was up 84.47 points or 0.4% to 21,013.48. The index jumped 108.58 points at the day's high of 21,037.59 in early trade. The index rose 10.35 points at the day's low of 20,939.36 in early trade.
The CNX Nifty was up 31.25 points or 0.5% to 6,252.50. The index hit a high of 6,253.65 in intraday trade. The index hit a low of 6,229.55 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 708 shares rose and 415 shares fell. A total of 48 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks rose and rest of them fell.
Bharti Airtel rose 3.28% after reporting Q2 result. The company's consolidated net profit declined 29% to Rs 512 crore on 9.9% increase in total revenue to Rs 21324 crore in Q2 September 2013 over Q2 September 2012. The company announced the result during market hours.
DLF rose 1.7% ahead of its Q2 results today, 30 October 2013.
Grasim Industries rose 1.2% ahead of its Q2 results today, 30 October 2013.
Lupin rose 1.43% ahead of its Q2 results today, 30 October 2013.
Jindal Steel & Power gained 0.58% ahead of its Q2 results today, 30 October 2013.
NTPC rose 0.27%, with the stock shrugging off weak Q2 result. The company after market hours on Tuesday, 29 October 2013, reported 20.66% fall in net profit to Rs 2492.90 crore on 0.64% fall in total income to Rs 17059.41 crore in Q2 September 2013 over Q2 September 2012.
Ranbaxy Laboratories dropped 4.04% after the company reported a reverse turnaround in Q3 September 2013. The company after market hours on Tuesday, 29 October 2013 reported consolidated net loss of Rs 454.16 crore in Q3 September 2013, compared with net profit of Rs 754.17 crore in Q3 September 2012. Total income increased 1.92% to Rs 2827.73 crore in Q3 September 2013 over Q3 September 2012.
Ranbaxy Laboratories said that the depreciation of the rupee against the dollar, though favourable to Ranbaxy's export business had an adverse impact on the company mainly on account of application of the accounting standards that require marking to market the entire derivatives and foreign currency denominated loans outstanding. There was a charge of Rs 360 crore during Q3 September 2013 on account of foreign exchange fluctuations, Ranbaxy said. The company made a provision for Mohali stock write-off and other costs amounting to Rs 70 crore.
Ranbaxy said that its base business sales in Q3 September 2013 continued to grow over the corresponding period of the previous year. Ranbaxy's global sales rose 2.99% to Rs 2750 crore in Q3 September 2013 over Q3 September 2012. The growth in sales was impacted adversely by the new pricing policy and trade concerns in India and the absence of any post exclusivity sales during the quarter, Ranbaxy said.
Commenting on the business results for the quarter, Mr. Arun Sawhney, CEO & Managing Director, Ranbaxy, said: "The company continues to grow in its focus branded markets in Asia, East Europe, CIS and Africa. In India, however, the announcement of the pricing policy caused some uncertainty in the market, during which our sales in the home market faced some disruptions. We are confident that we will satisfactorily address the increasing standards of quality and manufacturing processes to uphold the high level of trust that our doctors, patients, regulators and other stakeholders expect from us".
The board of directors of the company has decided to change the financial year of the company as "April to March" effective 1 April 2014. In view of this, the current financial year will be for a period of 15 months i.e. January 2013 to March 2014.
Ranbaxy said it expects to achieve sales of Rs 13000 crore to Rs 13500 crore for 15 months period ending 31 March 2014. This does not consider any sales accruing from FTFs which shall be accounted for as they materialize.
Tata Steel rose 1.03%. The company's long products business on Tuesday, 29 October 2013, announced restructuring proposals to help strengthen its competitiveness. The proposed changes affect predominately management and administrative functions at sites in Scunthorpe, Teesside and Workington and could lead to the loss of around 500 jobs. The announcement was made after trading hours on Tuesday.
The proposals come amid a prolonged downturn in demand for some of the key products made by the Scunthorpe-based business, including the UK market for construction steel, which is about half of 2007 levels, Tata Steel said in a statement.
Karl Koehler, CEO of Tata Steel's European operations said: "European steel demand this year is expected to be only two-thirds of pre-crisis levels after falls in the past two years. On top of the challenging economic conditions, rules covering energy and the environment in Europe and the UK threaten to impose huge additional costs on the steel industry. As difficult as the proposed changes are, they are intended to build a stronger future by enabling the long products business to compete in even the current challenging economic and regulatory conditions. We will of course engage fully with employees, trade unions and our political stakeholders during this restructuring process. We will do everything we can to support our employees through this unsettling time".
Jon Bolton, Director of the Long Products operations, said: "UK demand for construction steel has fallen further since we launched an improvement programme at our Long Products business in 2011. This further market decline means we must now build on the work we have been doing to restore Long Products' ability to compete throughout the economic cycle. The proposed changes at our Workington engineering operations, meanwhile, are as a result of a shortfall in external projects. Today's proposals would help us build a more sustainable business. I know this will be a difficult and unsettling time for affected employees and their families. This action, unfortunately, cannot wait if we are to remain a vital foundation industry supporting the UK's manufacturing and construction sectors. We will work closely with our trade union colleagues and government at a national and local level to ensure we provide our employees with as much assistance and support as possible".
The European operations of Tata Steel comprise Europe's second largest steel producer. With the main steelmaking operations in the UK and Netherlands, they supply steel and related services to the construction, automotive, packaging, rail, lifting & excavating, energy & power, aerospace and other demanding markets worldwide.
In the foreign exchange market, the rupee edged lower against the dollar, with sentiment cautious ahead of the outcome of the Federal Reserve's policy meeting later in the global day. The partially convertible rupee was hovering at 61.575, compared with its close of 61.31/32 on Tuesday, 29 October 2013.
Asian stocks rose on Wednesday, 30 October 2013, amid rising company earnings and with the Federal Reserve projected to maintain the pace of its monetary stimulus today. Key benchmark indices in China, Japan, Hong Kong, Taiwan, Singapore, and South Korea rose 0.06% to 1.22%. Indonesia's Jakarta Composite fell 0.25%.
Factory output in South Korea contracted 3.6% last month from a year earlier, after rising 3.3% in August, the government statistician said today.
US stocks surged on Tuesday, 29 October 2013, as soft economic data supported expectations the US Federal Reserve will keep its stimulus measures intact for several months. Economic data showed consumer confidence in the US fell and an October 22 report revealed growth in American jobs slowed in September.
The Federal Open Market Committee's (FOMC) two-day policy meeting concludes today, 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.
Powered by Capital Market - Live News
