Key benchmark indices edged lower for the second day in a row triggered by the India Meteorological Department (IMD) on Thursday, 24 April 2014, announcing that the country will likely get below-normal levels of monsoon rain this year. The S&P BSE Sensex hit a lowest closing level in 1-1/2 week. The CNX Nifty hit a lowest closing level in nearly two weeks. The Sensex, fell 56.46 points or 0.25%, off close to 90 points from the day's high and up about 34 points from the day's low. The market breadth, indicating the overall health of the market, turned positive from negative in late trade.
The Sensex has fallen 244.93 points, or 1.07% in two trading sessions from a recent high of 22,876.54 on 23 April 2014. The Sensex has risen 245.34 points or 1.10% in this month so far (till 28 April 2014). The Sensex has gained 1,460.93 points or 6.90% in calendar year 2014 so far (till 28 April 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 5,182.90 points or 29.70%. From a record high of 22,939.31 on 25 April 2014, the Sensex has fallen 307.70 points or 1.34%.
Coming back to equity market, capital goods stocks edged lower. Hindustan Unilever declined in volatile trade after announcing Q4 results.
The market edged lower amid initial volatility. It slipped into the red after swing between gains and losses near the flat line in morning trade. It weakened once again after trimming losses after hitting fresh intraday low in mid-morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in 1-1/2 weeks. Indices were trading slightly lower in early afternoon trade. Key benchmark indices sharply pared losses in afternoon trade after European shares opened higher. It weakened once again in mid-afternoon trade. It languished in the negative terrain in late trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 295.01 crore on Friday, 25 April 2014, as per provisional data from the stock exchanges.
The S&P BSE Sensex fell 56.46 points or 0.25% to 22,631.61, its lowest closing level since 17 April 2014. The index fell 90.88 points at the day's low of 22,597.19 in mid-morning trade. The index gained 33.29 points at the day's high of 22,721.36 in early trade.
The CNX Nifty fell 21.50 points or 0.32% to 6,761.25, its lowest closing level since 16 April 2014. The index hit a low of 6,750.30 in intraday trade. The index hit a high of 6,786.25 in intraday trade.
The BSE Mid-Cap index rose 64.85 points or 0.88% to 7,438.49. The BSE Small-Cap index rose 19.94 points or 0.26% to 7,617.28. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2741 crore, lower than Rs 3065.63 crore on Friday, 25 April 2014.
The market breadth, indicating the overall health of the market, turned positive from negative in late trade. On BSE, 1,451 shares gained and 1,335 shares fell. A total of 146 shares were unchanged. Earlier, the breadth had turned negative from positive in early afternoon trade.
The S&P BSE Healthcare index (up 1.65%), the S&P BSE Realty index (up 0.57%), the S&P BSE Bankex (up 0.36%), the S&P BSE Consumer Durables index (up 0.08%), the S&P BSE Power index (up 0.03%), outperformed the Sensex. The S&P BSE IT index (down 0.07%) and the S&P BSE Teck index (down 0.09%), edged lower.
The S&P BSE Capital Goods index (down 1.01%), the S&P BSE Auto index (down 0.97%), the S&P BSE Metal index (down 0.53%) and the S&P BSE FMCG index (down 0.42%), underperformed the Sensex.
Among the 30-share Sensex pack, 22 stocks declined and rest of them rose.
Hindustan Unilever ended almost flat at Rs 580.60 after announcing Q4 results. The stock hit a high of Rs 588 and low of Rs 565.10. The company's net profit rose 10.78% to Rs 872.13 crore on 10.24% rise in total income to Rs 7244.73 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced during trading hours today, 28 April 2014.
Hindustan Unilever (HUL)'s net profit rose 1.86% to Rs 3867.49 crore on 8.41% growth in total income to Rs 28640.16 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
On consolidated basis, HUL's net profit rose 3.04% to Rs 3945.57 crore on 8.23% growth in total income to Rs 29804.26 crore in FY 2014 over FY 2013.
HUL said that the operating context during the quarter remained challenging with slowing market growth and high competitive intensity. Firm input costs were managed through a mix of judicious pricing and cost savings, the company said. Brand investments were sustained at competitive levels with higher advertising spend being offset by lower promotional activities. Profit before interest and tax (PBIT) grew by 11% and PBIT margin improved by 30 basis points (bps). Profit after tax before exceptional items, PAT (bei), grew by 7% to Rs 832 crore while net profit at Rs 872 crore was up 11% YoY in Q4 March 2014, HUL said in a statement.
The Domestic Consumer business grew by 9% with 4% underlying volume growth during FY 2014, ahead of market, HUL said. Profit before interest and tax (PBIT) grew by 12% with PBIT margin improving 40 bps. Profit after tax but before exceptional items, PAT (bei), grew by 7% to Rs 3555 crore with net profit at Rs 3867 crore, growing 2% over FY 2013. Net Profit growth was impacted by the significant property sale in the previous year, the company said. Cash generated from operations at over Rs 5000 crore for the year, was up Rs 462 crore over the previous year, HUL said in a statement.
Commenting on the company's results, Harish Manwani, Chairman, HUL commented, "Against the backdrop of a challenging environment, we have delivered another year of competitive and profitable growth. We stepped up investment behind our brands and innovations, whilst driving cost savings and operational efficiencies with even greater rigor. Looking ahead, we are confident that our strategy is on track to deliver sustainable long term growth and margin improvement".
Hindustan Unilever said that the board of directors of the company at its meeting held today, 28 April 2014, inter alia, have recommended a final dividend of Rs 7.50 for the financial year ended 31 March 2014. Hindustan Unilever said that the Register of Members & Share Transfer Books of the company will remain closed from13 June 2014 to 30 June 2014 (both days inclusive) for the purpose of payment of final dividend & 81st Annual General Meeting (AGM) of the company to be held on 30 June 2014.
The company has earlier paid an interim dividend of Rs 5.50 per share on 15 November 2013. The total dividend for the said period amounts to Rs 13 per share. The final dividend, subject to the approval of shareholders at the 81st Annual General Meeting, will be paid to the shareholders on or after 4 July 2014.
IDFC rose 0.35% to Rs 114.50 on weak Q4 results. The company's consolidated net profit declined 50.93% to Rs 257.94 crore on 0.05% growth in total income to Rs 2219.57 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Friday, 25 April 2014.
IDFC's consolidated net profit declined 1.82% to Rs 1802.68 crore on 7.87% growth in total income to Rs 8790 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013 (FY 2013).
IDFC's board of directors at its meeting held on Friday, 25 April 2014, recommended dividend of Rs 2.60 per share for FY 2014.
Canara Bank rose 2.75%. The bank said during market hours that the board of directors of the bank, in its meeting held today, 28 April 2014, discussed about the various options of raising capital on account of Basel III guidelines & also to fund the general business needs of the bank and decided to raise funds through QIP mode or through preferential allotment during the current financial year. The board has constituted a committee of directors to decide on the modalities of the cited two options.
YES Bank fell 1.05% to Rs 463.15. With respect to the media reports on the subject, "L&T Fin in talks with Yes Bank on stake buy," on 23 April 2014, YES Bank clarified after market hours today, 28 April 2014, that it does not comment on speculative news appearing in the media. The bank keeps on evaluating capital raising alternatives, and has obtained Board approval to raise equivalent of $500 million of fresh capital in the course of FY2014-15. The investors/ stock exchanges will be informed as and when capital raising plans are finalised in FY 2014-15, the bank said in a statement.
Godrej Consumer Products fell 2.76% to Rs 783.25, after consolidated net profit declined 29.28% to Rs 236.28 crore on 12.19% growth in total income from operations (net) to Rs 1931.52 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours today, 28 April 2014. Godrej Consumer Products consolidated net profit declined 4.56% to Rs 759.73 crore on 18.48% growth in total income from operations (net) to Rs 7602.41 crore in the year ended 31 March 2014 over the year ended 31 March 2013.
Jindal Steel & Power declined 0.71% to Rs 273.45 ahead of its Q4 results tomorrow, 29 April 2014. The company said during market hours that Shadeed Iron & Steel, a wholly owned subsidiary of the company has successfully commissioned 2 million tonnes per annum (MTPA) integrated steel plant in Sohar, Oman, The facility using state of the art technology from Danielli Italy, is Oman' first & largest steel melting shop and also the third largest unit of Middles East &Gulf region. Jindal Shadeed has invested over $ 800 million in this integrated facility. The steel melting shop was commissioned in record 23 months from the date of commencement of the site work.
Capital goods stocks edged lower. Bhel (down 2.1%), BEML (down 1.89%), Larsen & Toubro (down 1.6%), Punj Lloyd (down 1.07%), Praj Industries (down 0.71%), Jindal Saw (down 0.68%), Alstom T&D India (down 0.42%), Suzlon Energy (down 0.21%), Thermax (down 0.16%) and ABB (down 0.13%), edged lower.
Siemens gained 0.66% to Rs 744.70 after net profit jumped 194.7% to Rs 88.27 crore on 8.6% fall in net sales to Rs 2657.74 crore in Q2 March 2014 over Q2 March 2013. The company announced Q2 results after market hours on Friday, 25 April 2014.
Siemens registered new orders of Rs 2620.10 crore in Q2 March 2014 compared to Rs 2806.50 crore in Q2 March 2013.
Sunil Mathur, Managing Director and Chief Executive Officer, Siemens, said, "The volumes are stable when viewed in the backdrop of the macro-economic fundamentals. The improved profitability is a clear indication that internal measures aimed at increasing competitiveness have begun to take effect."
Fulford (India) was locked at 20% upper circuit at Rs 823 after the company's promoter offered substantial premium to delist shares of Indian unit.
Fulford (India) after market hours on Friday, 25 April 2014 said that the company has received a letter from Dashtag, the promoter of the company, expressing intention to make a voluntary delisting offer to the public shareholders of the company. The indicative price for the delisting was fixed at Rs 1150 per share, a 67.67% premium over Fulford (India)'s latest closing price of Rs 685.85 on the BSE on Friday, 25 April 2014.
Dashtag, the promoter, plans to acquire 9.76 lakh shares, representing 25.05% of the paid-up equity share capital of Fulford (India). Promoters owned 74.95% stake in Fulford (India) as on 31 March 2014.
Dashtag's objective in making the delisting offer is to obtain full ownership of the target company, which will provide enhanced operational flexibility to the acquirer's business in India. Additionally, the foreign promoter believes that on account of low liquidity in Fulford (India)'s equity shares, the delisting offer would provide the public shareholders with an ability to exit fully at an attractive price.
The acquirer is of the view that the indicative price is an attractive price for the public shareholders of the target company subject to the acquirer's right to accept or reject the price finally discovered pursuant to the reverse book building process under the delisting regulations, Fulford (India) said.
Meanwhile, the board of directors of the company at their meeting held on Saturday, 26 April 2014 approved the delisting offer and intends to seek the approval of the shareholders through a postal ballot in terms of the delisting regulations. The floor price for the delisting offer has been set at Rs 701.71 per share, Fulford India said in a statement.
Sunteck Realty rose 2.28% to Rs 312. The company announced during trading hours today, 28 April 2014, that through its overseas subsidiary, it has entered into a joint venture agreement for development of land in UAE.
Shree Cement lost 2.08% to Rs 5,700.05 after net profit declined 18.81% to Rs 222.51 crore on 15.44% growth in total income to Rs 1714.56 crore in Q3 March 2014 over Q3 March 2013. The Q3 result was announced during trading hours today, 28 April 2014.
Symphony jumped 6.37% to Rs 836.05 after net profit surged 50.16% to Rs 27.03 crore on 32.41% growth in total income from operations to Rs 116.29 crore in Q3 March 2014 over Q3 March 2013. The Q3 result was announced during trading hours today, 28 April 2014.
Esab India rose 4.08% to Rs 494.80 after net profit declined 8.1% to Rs 8.45 crore on 0.5% growth in net sales to Rs 110.42 crore in the quarter ended 31 March 2014 over the quarter ended 31 March 2013. The result was announced after market hours on Friday, 25 April 2014. Esab India's board of directors at its meeting held on Friday, 25 April 2014, inter alia, has resolved that the current financial year would be for a period of 15 months from 1 January 2014 to 31 March 2015, to fall in line with Section 2 sub-section (41) of the Companies Act, 2013.
Opto Circuits (India) advanced 1.62% to Rs 31.45 after the company scheduled a board meeting on 6 May 2014 to consider fund raising through different options for various purposes. Opto Circuits (India) announced after market hours on Friday, 25 April 2014 that a meeting of the board of directors of the company will be held on 6 May 2014, to discuss various options like FCCB/GDR/preferential allotment/private placement/issue of convertible debentures offering and any other form of raising funds for Opto Circuits (India) and/or for its Indian/overseas subsidiaries for its future expansion, growth, joint ventures, acquisition of technologies and Research and development activities.
UPL clocked a highest turnover of 146.92 crore on BSE. Bayer CropScience (Rs 136.01 crore), Wockhardt (Rs 132.86 crore), State Bank of India (Rs 53.12 crore) and ICICI Bank (Rs 34.09 crore), were the other turnover toppers on BSE in that order.
Unitech reported highest volumes of 74.61 lakh shares on BSE. UPL (55.75 lakh shares), Jain Irrigation Systems (39.97 lakh shares), Suzlon Energy (33.78 lakh shares) and HCL Infosystems (30.53 lakh shares), were the other volume toppers on BSE in that order.
The country will likely get below-normal levels of monsoon rain this year, the India Meteorological Department (IMD) said on Thursday, 24 April 2014. The IMD said that the rainfall during the June-September summer rainy season will likely be 95% of the long-term average for the country. India's weather department defines a normal monsoon as one with rainfall between 96% and 104% of the 50-year average, which is 89 centimeters this year. This year could be a below normal monsoon, the weather department said, as there is a 60% possibility of the emergence of the El Ni weather phenomenona warm weather system that starts in the southern Pacific can affect weather around the world. El Ni last affected India's monsoon in 2009 when the monsoon rainfall was 23% below normal.
Annual rains are important for India as most of its farmlands are dependent or rain for irrigation and more than half of its workforce is employed in agriculture. The monsoon rains usually arrive over the southern state of Kerala by the end of May or the first week of June, and gradually cover the entire country by July. The IMD will issue the update forecasts in June 2014 as a part of the second stage forecast. Along with the update forecast, separate forecasts for the monthly (July and August) rainfall over the country as a whole and seasonal (June-September) rainfall over the four geographical regions of India will also be issued.
In the foreign exchange market, the rupee edged higher against the dollar on speculation fund repatriation by exporters and companies that have borrowed abroad is boosting foreign-exchange inflows. The partially convertible rupee was hovering at 60.57, compared with its close of 60.60/61 on Friday, 25 April 2014.
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 edged higher on Monday, with a slew of merger and acquisition news seen improving sentiment in the market. Key benchmark indices in UK, France and Germany were up by 0.27% to 0.71%.
Asian stocks fell on Monday as investors weighed company earnings amid prospects for additional sanctions against Russia over the Ukraine crisis. Key benchmark indices in Japan, China, Indonesia, Hong Kong, South Korea and Singapore were off 0.12% to 1.62%. Taiwan's Taiwan Weighted was up 0.41%.
Asian policy makers must push ahead with structural changes to ensure the region continues to lead global growth and withstand volatility as the US reduces monetary stimulus, the International Monetary Fund said. Asian economies will face higher interest rates and bouts of volatility in capital flows and asset prices as global liquidity tightens amid a recovery in advanced nations, the Washington-based lender said in its Regional Economic Outlook for Asia and Pacific released today. Tightening of global liquidity is one of the four main risks confronting Asia this year and next year, the IMF said. Other dangers include a sharper-than-envisaged slowdown in China, waning effectiveness of growth-supporting policies in Japan, and political and geopolitical tensions that disrupt trade, it said.
Trading in US index futures indicated that the Dow could gain 41 points at the opening bell on Monday, 28 April 2014. US stocks declined on Friday, 25 April 2014 as investors tracked escalating tension in Ukraine, with the geopolitical strife overshadowing upbeat results from Microsoft.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
The US and European Union will impose new sanctions on Russia amid the detention of international observers by pro-Russian separatists. Russia is one of the world's biggest nickel producers and is the fifth-largest wheat exporter, followed by Ukraine.
Russia has stoked tensions in Ukraine by threatening military maneuvers and by taking "no concrete steps" to implement an April 17 accord meant to diffuse the crisis, the Group of Seven nations -- the US, Japan, Canada, the UK, France, Germany and Italy -- said in an April 25 statement.
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