Key benchmark indices edged lower in what was a choppy trading session as the market sentiment was affected adversely by data showing that foreign funds remained net sellers of Indian stocks on Friday, 7 February 2014.. The barometer index, the S&P BSE Sensex, was provisionally down 56.62 points or 0.28%, up close to 10 points from the day's low and off close to 115 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The market sentiment was also affected adversely as a government forecast released after trading hours on Friday, 7 February 2014, suggested the Indian economy is expected to continue to expand at a pace of less than 5% in the year ending 31 March 2014.
DLF rose after the company said DLF Global Hospitality (DGHL), a 100% step down subsidiary of the company has completed the sale of 100% equity stake in Silverlink Resorts (SRL) to Aman Resorts Group for an Enterprise Value of $358 million. Bank stocks edged lower.
The Sensex snapped four-day winning streak today, 10 February 2014.
The market edged higher in early trade. The 50-unit CNX Nifty hit highest level in over one-week. It reversed initial gains and hit fresh intraday low in morning trade. It swung between gains and losses in mid-morning trade. It was hovering around the flat line in early afternoon trade. Key benchmark indices were almost flat in afternoon trade. It continued to trade in a narrow range near the flat line in mid-afternoon trade. It weakened and hit fresh intraday low in late trade.
The market sentiment was affected adversely by data showing that foreign funds remained net sellers of Indian stocks on Friday, 7 February 2014. Foreign institutional investors (FIIs) sold shares worth a net Rs 267.26 crore on Friday, 7 February 2014, as per provisional data from the stock exchanges.
As per provisional figures, the S&P BSE Sensex was down 56.62 points or 0.28% to 20,319.94. The index fell 64.35 points at the day's low of 20,312.21 in late trade. The index rose 57.94 points at the day's high of 20,434.50 in early trade.
The CNX Nifty was down 14.60 points or 0.24% to 6,048.60, as per provisional figures. The index hit a low of 6,046.40 in intraday trade. The index hit a high of 6,083.05 in intraday trade, its highest level since 31 January 2014.
The BSE Mid-Cap index was up 4.78 points or 0.08% at 6,341.62. The BSE Small-Cap index was up 8.30 points or 0.13% at 6,337.06. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 1657 crore, lower than Rs 1830.25 crore on Friday, 7 February 2014.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,322 shares rose and 1,252 shares fell. A total of 152 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks fell and rest rose. Hindustan Unilever (down 2.41%), HDFC (down 2.37%), and Bharti Airtel (down 2.38%), edged lower from the Sensex pack.
Bank stocks edged lower. State Bank of India (down 1.16%), ICICI Bank (down 0.55%), HDFC Bank (down 0.45%) and AXIS Bank (down 0.12%) declined.
Corporation Bank declined 2.65% on poor Q3 results. The company's net profit declined 58.2% to Rs 126.69 crore on 16.2% growth in total income to Rs 4947.34 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Friday, 7 February 2014.
Corporation Bank's provisions and contingencies jumped 103.5% to Rs 826.33 crore in Q3 December 2013 over Q3 December 2012. Provision Coverage ratio works out to 53.59% as on 31 December 2013.
The bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 3.08% as on 31 December 2013 as against 3.17% as on 30 September 2013 and 2.18% as on 31 December 2012. The ratio of net NPAs to net advances stood at 2.15% as on 31 December 2013 as against 2.2% as on 30 September 2013 and 1.63% as on 31 December 2012.
Corporation Bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 11.89% as on 31 December 2013 as against 10.55% as on 30 September 2013.
The RBI vide its circular dated 20 December 2013 has advised banks to create a Deferred Tax Liability (DTL) on outstanding amount in Special Reserve created under Section 36(1)(viii) of the Income Tax Act, 1961 as a matter of prudence. Accordingly, during Q3 December 2013, the bank has created a DTL of Rs 364.46 crore on Special Reserve outstanding as at 31 March 2013 by reducing the General Reserves, Corporation Bank said.
United Bank of India lost 5.59% after the bank reported a net loss of Rs 1238.08 crore in Q3 December 2013 as against net profit of Rs 42.20 crore in Q3 December 2012. Total income rose 14.9% to Rs 2986.80 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Friday, 7 February 2014.
The Reserve Bank of India (RBI) on Friday, 7 February 2014, said that as a countercyclical measure, banks may utilise up to 33% of countercyclical provisioning buffer/floating provisions held by them as on 31 March 2013 for making specific provisions for non-performing assets as per the policy approved by the bank's board of directors. RBI also said that the utilisation of countercyclical provisioning buffer/floating provisions under this measure may be over and above the utilisation of countercyclical provisioning buffer/floating provisions for the purpose of making accelerated/additional provisions as proposed in the RBI's press release dated 30 January 2014 on "Early Recognition of Financial Distress, Prompt Steps for Resolution and Fair Recovery for Lenders: Framework for Revitalising Distressed Assets in the Economy".
As per RBI's Discussion Paper on Introduction of Dynamic Loan Loss Provisioning Framework for Banks in India dated 30 March 2012, banks are required to build up 'Dynamic Provisioning Account' during good times and utilise the same during downturn. Under the proposed framework, banks are expected to either compute parameters such as probability of default, loss given default, etc. for different asset classes to arrive at long term average annual expected loss or use the standardised parameters prescribed by Reserve Bank of India towards computation of Dynamic Provisioning requirement. Dynamic loan loss provisioning framework is expected to be in place with improvement in the system, the RBI said. Meanwhile, banks should develop necessary capabilities to compute their long term average annual expected loss for different asset classes, for switching over to the dynamic provisioning framework, the central bank said.
DLF rose 2.94% after the company said before market hours that DLF Global Hospitality (DGHL), a 100% step down subsidiary of DLF has completed the sale of 100% equity stake in Silverlink Resorts (SRL), the owner of Amanresorts to Aman Resorts Group (ARGL), a Joint Venture between Peak Hotels & Resorts Group (PHRL) and Mr. Adrian Zecha, the founder of Amanresorts for an Enterprise Value of $358 million. The sale has been in the form of management buyout. DLF Global Hospitality had purchased 100% equity in Amanresorts in 2007 from a group of investors. The deal excludes the iconic Lodhi Hotel in Delhi which shall remain a part of DLF. The transaction is a part of DLF's objective of divesting its non core assets.
Shares of other realty companies also gained. HDIL (up 0.94%) and Unitech (up 1.03%) gained.
Puravankara Projects lost 6.89% after consolidated net profit fell 68.78% to Rs 20.1 crore on 13.67% decline in revenue to Rs 268.30 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Friday, 7 February 2014.
Commenting on the company's Q3 performance, Ashish Puravankara, Joint MD, Puravankara Projects said, "We have focused on new launches in the last quarter, the response of which has been very good with consistent sales. The impact of these sales will be realized on our cash flows and profitability in the coming quarters and we expect to continue this momentum".
Area sold in Q3 December 2013 was at 0.90 million square feet (msf) compared to 0.91 msf in Q3 December 2012. Sales value rose 9% to Rs 402.80 crore in Q3 December 2013 over Q3 December 2012. Puravankara's sales realization for ongoing projects rose 10% to Rs 5,042 per square feet (psft) in Q3 December 2013 over Q3 December 2012. Provident realization stood at Rs 3,702 psft in Q3 December 2013.
Puravankara said that immediate launches of the group in Q4 March 2014 totals 2.73 msf under both Puravankara and Provident. Of this, Puravankara has already pre-launched 1.92 msf in Bengaluru which has met with an excellent response from the market, the company said in a statement.
Ansal Properties & Infrastructure lost 4.36% after consolidated net profit fell 90.66% to Rs 1.48 crore on 3.81% decline in sales & operating income to Rs 267.09 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Friday, 7 February 2014.
Ansal Properties and Infrastructure's consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) declined 52.48% to Rs 21.08 crore in Q3 December 2013 over Q3 December 2012.
Commenting on the company's financial performance, Mr. Pranav Ansal, Vice Chairman and MD, Ansal Properties and Infrastructure said, "The company successfully sold about 2.64 million square feet during Q3 December 2013 and about 10.69 msf during nine months ended 31 December 2013 with the better realisation achieved for sale excluding FSI sales than achieved during nine months ended 31 December 2012. The realisation (excluding FSI sales) for Q3 December 2013 improved by almost 12% to RS 2,281 per square feet from Rs 2,025 per square feet. In addition, during the quarter company managed to sell 2.64 msf for a total value of Rs 326 crore despite lethargic conditions in the real estate market. The profit for nine months ended 31 December 2013 rose by almost 32% from Rs 32.16 crore to Rs 42.60 crore. This was mainly due to profit booked from bulk sale of one of our slow moving project in Greater Noida".
With regard to future business outlook, Ansal Properties and Infrastructure said the company will continue to focus on high growth markets in NCR as well as in other states of Northern India by expanding its existing townships to increased returns through economies of scale as well as entering into collaboration for new projects in order to conserve capital deployment in land aggregation and to achieve better realizations. Further, the company has accelerated its cash flows by monetizing its assets from finished stock sales and sale/exit from non-core assets/slow moving investments to free up cash reserves and reduce the debt. Further, the company said it is in active dialogue with various parties and negotiations for the monetization of certain assets are under way and various aspects of the deal are being deliberated to conclude these sales.
Ansal Properties said that as per the business plan, the company is focusing on the Northern India Territory for township development and has accelerated the development and sales efforts in all the townships that were launched in the past few quarters. The company is in an aggressive mode of completing and delivering the projects in the four states of Northern India (viz. Haryana, Uttar Pradesh, Rajasthan & Punjab) and build on the further saleable area in these states by expanding the existing townships, Ansal said in a statement. In addition, the company will continue to seek private equity participation to increase execution and further mitigate risk for existing shareholders, it added.
Sun TV Network fell 1.03% after net profit fell 2.2% to Rs 185.79 crore on 5.4% growth in total income to Rs 523.19 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Friday, 7 February 2014.
Sun TV Network's EBITDA (earnings before interest, taxation, depreciation and amortization) fell 1.14% to Rs.372.02 crore in Q3 December 2013 over Q3 December 2012.
Sun TV Network said that despite the reduction in inventory, the company posted a healthy growth of about 17% in advertisement revenues in Q3 December 2013 over Q3 December 2012.
Subscription revenues from cable and Direct-to-Home continued to maintain the digitization momentum with a sustained growth of over about 27% to Rs 167.12 crore in Q3 December 2013 over Q3 December 2012. International subscription revenues grew by 29% in Q3 December 2013 over Q3 December 2012.
The board of directors of the company declared a third interim dividend of Rs 2.50 per share. With this the total dividend declared by the board so far for the financial year ending 31 March 2014 is Rs 7.25 per share as against the total dividend of Rs 9.50 per share declared in the previous year ended 31 March 2013, Sun TV Network said
Sharon Bio-Medicine rose 3.54% after consolidated net profit rose 21.3% to Rs 16.20 crore on 34.3% growth in net sales to Rs 340.04 crore in Q2 December 2013 over Q2 December 2012. The Q2 result was announced on Saturday, 8 February 2014.
Hindustan Construction Company rose 1.34% after the company bagged orders worth Rs 725 crore in various business segments. The announcement was made during market hours today, 10 February 2014. Hindustan Construction Company (HCC) during market hours today, 10 February 2014 said that the company has bagged orders worth Rs 725 crore in various business segments.
HCC said that the first order is for construction of 2.9 km long four lane bridge between Daudnagar and Naeriganj including approach roads over river Sone in the district of Aurangabad and Rohtas in the state of Bihar. The contract is awarded by Bihar Rajya Pul Nirman Nigam and is worth Rs 433 crore.
HCC said that the company secured orders aggregating Rs 293 crore from water, nuclear and industrial sectors which included construction of Bhama Askhed Water Supply Scheme, Package-IV for Pune Municipal Corporation, construction of buildings for Fast Reactor Fuel Cycle facility [FRFCF] at Kalpakkam being built for Indira Gandhi Centre for Atomic Research, structural steel fabrication works for a leading petrochemical company in India and civil works for a captive power plant for a leading aluminium manufacturer in the country.
On winning contracts in different segments, Arun Karambeklar, President and Whole Time Director, HCC, said We have received well diversified orders in terms of geographic and business spread. These orders reflect HCC's capability to cater to varied segments in an extremely competitive environment and reinforce our expertise in providing reliable solutions to the business segments we are operating".
TV18 Broadcast rose 2.51% after consolidated net profit surged 142.72% to Rs 51.70 crore on 2.55% growth in operating revenue to Rs 525.50 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced during trading hours today, 10 February 2014.
TV18 Broadcast's consolidated EBITDA (earnings before interest, taxation, depreciation and amortization) surged 61% to Rs 77.50 crore in Q3 December 2013 over Q3 December 2012 with both the Entertainment and News businesses turning in strong quarters. The EBITDA during the quarter was its highest ever in any quarter, the company said.
TV18 Broadcast's consolidated advertising revenues grew 3% year on year. While the News and Infotainment advertising environment continues to be sluggish, Entertainment led by Colors and MTV delivered strong double digit advertising growth. Net distribution Income (NDI) continued its steady growth at Rs 43.6 crore, a growth of 145% YoY, the company said in a statement.
TV18's Broadcast operations turned in a very strong quarter with an operating profit of Rs 91.10 crore, up 110% on a year over year basis.
Commenting on the results, Raghav Bahl, Managing Director, Network18 said, "We are greatly enthused by the strong performance of TV18 despite the continued uncertainty in the macro-economic landscape. While environmental risks may continue in the medium term, we are confident of maintaining our growth trajectory. During the quarter, our pre-tax profits almost tripled due to the robust operating performance of our broadcast operations and a significantly deleveraged balance sheet. We are now in the sustained value creation phase of our journey even as we look to further strengthen our existing operations and consolidate our regional acquisition".
Commenting on the results for the quarter, B. Saikumar, Group CEO, Network18 said, "It has been a stellar quarter for our broadcast operations, which grew their margins substantially in a challenging environment. Our News business realised value from operating efficiencies. Our Entertainment operations at Viacom18, led by Colors delivered a healthy performance even as Motion Pictures saw losses in this quarter. Infotainment operations at A+E Networks I TV18 broke into positive territory and IndiaCast continued on its robust growth trajectory. We look forward to building on network synergies with the launches of Rishtey India, MTV Indies and CNBC Bajar, while sustaining our trajectory of profitable growth in the year ahead".
In the foreign exchange market, the rupee reversed intraday gains against the dollar. The partially convertible rupee was hovering at 62.375, lower than its close of 62.28 on Friday, 7 February 2014.
The Union Cabinet on Friday, 7 February 2014 cleared the Bill for the creation of Telangana. The Bill will be introduced in the Parliament on 11 or 12 February 2014. The Bill will be presented in the Rajya Sabha in the present form and the government will move 32 amendments when it is taken up for consideration. The Bill will be tabled along with a summary of 30-odd pages on the proceedings in the Andhra Pradesh Assembly and Council, along with a number of amendments proposed by the State legislators.
The Indian economy is expected to continue to expand at a pace of less than 5% in the year ending 31 March 2014, according to a government forecast released after trading hours on Friday, 7 February 2014. In the latest official forecast for the fiscal year ending next month, the Ministry of Statistics & Programme Implementation projected a 4.9% expansion for 2013-14. The weak growth projection underscores the severity of the slowdown in the south Asian economy which grew close to 9% as recently as in the year ended 31 March 2011. The statistics ministry's estimates show that the manufacturing output is expected to contract 0.2% during the current fiscal year while mining output is expected to fall 1.9%. However, farm output growth is expected to be much better this year on the back of higher-than-usual rainfall. The ministry estimates a 4.6% expansion in farm output, compared with the 1.4% increase in the last fiscal year. Output of services, which contribute about 60% to India's GDP, is expected to grow 6.9% this year, almost the same as the 7% expansion last fiscal year.
On 31 January 2014, the statistics ministry revised down GDP growth for the previous fiscal year to 4.5%, from an earlier estimate of 5%.
Finance Minister P Chidambaram will present the Vote-on-Account or interim budget on 17 February 2014. The objective of a Vote-on-Account is to get Parliament's nod for expenditure to be incurred in the months prior to elections. The next full-fledged budget will be presented by the new government which comes to power after the Lok Sabha polls in April-May 2014.
The government will unveil data on inflation based on the combined consumer price index (CPI) for urban and rural India for the month of January 2014 on Wednesday, 12 February 2014. The CPI inflation slowed to 9.87% in December 2013, from 11.16% in November 2013.
The government will unveil data on inflation based on the wholesale price index (WPI) for the month of January 2014 on Friday, 14 February 2014. The WPI inflation eased to 6.16% in December 2013, from 7.52% in November 2013.
Data on industrial production for December 2013 will be out on Wednesday, 12 February 2014. Industrial output declined 2.1% in November 2013, recording decline for second consecutive month after 1.6% dip in October 2013.
The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Sighting elevated consumer price inflation, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.
European stocks rose on Monday as optimism grew the Federal Reserve will delay a third cut in bond purchases. Key benchmark indices in France, Germany and UK rose 0.13% to 0.42%.
Asian stocks rose on Monday after US jobs data spurred the biggest two-day rally for US equities since October. Key benchmark indices in China, South Korea, Singapore, Japan, and Taiwan rose 0.04% to 2.03%. Key benchmark indices in Indonesia and Hong Kong fell 0.27% to 0.36%.
China's central bank signaled volatility in money-market interest rates will persist and borrowing costs will rise, underscoring the risk of defaults that could weigh on confidence and drag down growth.
Japan's current-account deficit widened to a record in December on soaring imports, adding to Prime Minister Shinzo Abe's challenges as he tries to drive a recovery in the world's third-biggest economy. The 638.6 billion yen ($6.2 billion) shortfall surpassed November's gap of 592.8 billion yen, the finance ministry said in Tokyo today.
Business activity across emerging markets expanded in January at the slowest pace in four months, dragged down by sluggish services sectors in the BRIC quartet of big developing countries, a survey showed on Monday. HSBC's composite emerging markets index of manufacturing and services purchasing managers' surveys slipped for the second month running to 51.4 in January. It stayed under the 2013 average of 51.7 and well below the score of 64.1 posted last January.
But the monthly index remained above the 50 threshold which marks the difference between expansion and contraction. Based on data from purchasing managers at about 8,000 firms in 17 countries, the survey showed signs of manufacturing and export revival in some countries but Chinese factory output fell below the 50 mark, Brazilian manufacturing growth slowed and output fell in Russia and Indonesia. Growth was stronger in India, Poland, Taiwan and Mexico. January services activity in the biggest emerging markets was at a six-month low. India and Brazil both posted declines, while growth rates in China and Russia were weak, HSBC said.
Trading in US index futures indicated that the Dow could fall 30 points at the opening bell on Monday, 10 February 2014. US stocks surged on Friday amid optimism economic growth is robust enough to weather stimulus cuts even as data showed weaker-than-forecast hiring.
Payrolls rose less than projected in January and the jobless rate unexpectedly dropped to the lowest level in more than five years, clouding the outlook for the US economy and Federal Reserve. The 113,000 gain in hiring fell short of the estimates and followed a 75,000 increase the prior month, Labor Department data showed in Washington. Unemployment declined to 6.6%, the least since October 2008, from 6.7% in December.
Federal Reserve chairman Janet Yellen takes center stage on Capitol Hill tomorrow, delivering her first semi-annual monetary testimony as markets weigh how mixed economic reports last week will affect the central bank's plan for reducing stimulus.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion. The Fed also signaled that it is likely to keep reducing bond purchases in the coming months, citing a pickup in US economic activity and improvement in the US labor market.
Powered by Capital Market - Live News
