Key benchmark indices trimmed gains in afternoon trade. The barometer index, the S&P BSE Sensex, was up 55.44 points or 0.27%, off 89.73 points from the day's high and up 9.63 points from the day's low. The market breadth, indicating the overall health of the market, was positive. Gains in Asian stocks supported upmove on the domestic bourses today, 29 January 2014.
ICICI Bank edged higher in choppy trade after reporting Q3 December 2013 results. Most metals shares edged lower.
Key benchmark indices edged higher in early trade on firm Asian stocks. Key benchmark indices trimmed initial gains in morning trade. Key benchmark indices recovered from lower level after trimming initial gains in mid-morning trade. Key benchmark indices trimmed gains in afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 1267.35 crore on Tuesday, 28 January 2014, as per provisional data from the stock exchanges.
The market may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month January 2014 series to February 2014 series. The January 2014 F&O contracts expire tomorrow, 30 January 2014.
Asian stocks edged higher on Wednesday, 29 January 2014, after Turkey's central bank on Tuesday, 28 January 2014, more than doubled interest rates to arrest a currency slide that roiled global markets.
At 13:15 IST, the S&P BSE Sensex was up 55.44 points or 0.27% to 20,738.95. The index jumped 145.17 points at the day's high of 20,828.68 in early trade, its highest level since 27 January 2014. The index rose 45.81 points at the day's low of 20,729.32 in afternoon trade.
The CNX Nifty was up 19 points or 0.31% to 6,145.25. The index hit a high of 6,170.45 in intraday trade, its highest level since 27 January 2014. The index hit a low of 6,143.75 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,243 shares gained and 1,106 shares fell. A total of 146 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks gained and rest of them declined. Maruti Suzuki India (up 7.47%), Bhel (up 3.99%), Sun Pharmaceutical Industries (up 2.59%), Hero MotoCorp (up 2.58%), Cipla (up 1.92%), Infosys (up 1.47%), Larsen & Toubro (up 1.09%) and Axis Bank (up 1.06%), edged higher from the Sensex pack.
Hindalco Industries (down 1.62%), Tata Steel (down 1.41%), State Bank of India (down 1.23%), HDFC (down 0.79%), ITC (down 0.55%), Bajaj Auto (down 0.51%), Bharti Airtel (down 0.42%) and Reliance Industries (down 0.23%), edged lower from the Sensex pack.
ICICI Bank edged higher in choppy trade after reporting Q3 December 2013 results. The stock was up 0.8% at Rs 1,027.60. The scrip hit high of Rs 1,040.95 and low of Rs 1,015.45 so far during the day. ICICI Bank's net profit rose 12.53% to Rs 2532.21 crore on 15.4% increase in total income to Rs 14255.96 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours today, 29 January 2014.
ICICI Bank said that the bank creates Special Reserve through appropriation of profits, in order to avail tax deduction as per Section 36(1)(viii) of the Income Tax Act, 1961. The Reserve Bank of India, vide its circular dated 20 December 2013, has advised banks to create a deferred tax liability (DTL) on the amount outstanding in Special Reserve, as a matter of prudence. In accordance with these RBI guidelines, during Q3 December 2013, ICICI Bank has created a DTL of Rs 1419 crore on Special Reserve outstanding as on 31 March 2013, by reducing the reserves. The bank created DTL of Rs 215 crore in Q3 December 2013 based on the estimated Special Reserve for the period April-December 2013, resulting in additional tax provision of Rs 215 crore in Q3 December 2013. Excluding this impact, the growth in the bank's net profit would have been higher at 22% on year-on-year basis in Q3 December 2013, ICICI Bank said.
Total advances increased by 16% year-on-year to Rs 332632 crore (US$ 53.8 billion) at 31 December 2013 from Rs 286766 crore (US$ 46.4 billion) at 31 December 2012. The bank has continued to see healthy growth in its retail disbursements resulting in a year-on-year growth of 22% in the total retail portfolio at 31 December 2013.
The bank has seen healthy trends in current and savings account (CASA) deposits mobilisation. During Q3 December 2013, savings account deposits increased by Rs 2190 crore (US$ 354 million) and current account deposits increased by Rs 1068 crore (US$ 173 million). At 31 December 2013, savings account deposits were Rs 95725 crore (US$ 15.5 billion) and current account deposits were Rs 41441 crore (US$ 6.7 billion). The Bank's CASA ratio was 43.3% at 31 December 2013, at a similar level as 30 September 2013. The average CASA ratio for Q3 December 2013 was at 39.1%.
The bank's capital adequacy at 31 December 2013 as per Reserve Bank of India's guidelines on Basel III norms was 16.81% and Tier-1 capital adequacy was 11.53%, well above regulatory requirements. In line with applicable guidelines, the Basel III capital ratios reported by the bank for at 31 December 2013 do not include the profits for the nine months ended 31 December 2013. Including the profits for nine month ended December 2013, the capital adequacy ratio for the bank as per Basel III norms would have been 17.94% and the Tier I ratio would have been 12.66%.
Net non-performing assets at 31 December 2013 were Rs 3121 crore (US$ 505 million) compared to Rs 2707 crore (US$ 438 million) at 30 September 2013. The net non-performing asset ratio was 0.81% at 31 December 2013 compared to 0.73% at 30 September 2013. The bank's provision coverage ratio, computed in accordance with the RBI guidelines, was 70.0% at 31 December 2013. Net loans to companies whose facilities have been restructured were Rs 8602 crore (US$ 1.4 billion) at 30 December 2013 compared to Rs 6826 crore (US$ 1.1 billion) at 30 September 2013.
On a consolidated basis, ICICI Bank's net profit rose 8.6% to Rs 2872.30 crore on 9.76% increase in total income to Rs 20543.46 crore in Q3 December 2013 over Q3 December 2012.
Sesa Sterlite fell 1.38%. On a consolidated basis, Sesa Sterlite reported a net profit Rs 1868.29 crore on total income of Rs 19912.90 crore in Q3 December 2013. The result was announced after market hours on Tuesday, 28 January 2014. The Q3 December 2013 figures are non comparable with Q3 December 2012 as the merger of copper producer Sterlite Industries (India) and iron-ore miner Sesa Goa, to form Sesa Sterlite took effect in August 2013.
Mr. Anil Agarwal, Chairman, Sesa Sterlite said: "The Sesa Sterlite merger was completed a few months ago, and the merged company has delivered a strong set of results, benefiting from its scale and diversification. We have record production of oil & gas and copper. We continue to focus on driving value-accretive growth across our portfolio of long-life assets and this, combined with efficient cost management has positioned us well to deliver superior returns for our shareholders".
JSW Steel rose 0.65%. The company reported a consolidated net profit of Rs 466.49 crore in Q3 December 2013 as against net loss of Rs 73.70 crore in Q3 December 2012. The Q3 result was announced during trading hours on Tuesday, 28 January 2014.
JSW Steel's consolidated total income rose 53.29% to Rs 13637.21 crore in Q3 December 2013 over Q3 December 2012.
JSW Steel said that the Q3 December 2013 results are after giving effect to the scheme of amalgamation and arrangement (scheme) between the company and JSW ISPAT Steel and others, which became effective 1 June 2013 with appointed date of 1 July 2012. Hence, the current quarter figures are not strictly comparable with that of Q3 December 2012 as the effect of implementation of the scheme is included in the current quarter figures, JSW Steel said in a statement.
Jindal Steel & Power (JSPL) fell 2.18%. The company's consolidated net profit jumped 23% to Rs 559.21 crore 8% growth in turnover to Rs 5377.37 crore in Q3 December 2013 over Q2 September 2013. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 17% to Rs 1700.69 crore in Q3 December 2013 over Q2 September 2013. The company announced the results during trading hours Tuesday, 28 January 2014.
Among other metal shares, Hindustan Zinc (up 0.51%) and Bhushan Steel (up 0.08%), edged higher.
SAIL (down 1.63%), Hindalco Industries (down 1.58%) and Tata Steel (down 1.5%), edged lower.
In the foreign exchange market, the rupee edged higher against the dollar, tracking gains in the Asian currency markets after Turkey stunned investors with a huge hike in interest rates to support its currency lira. The partially convertible rupee was hovering at 62.165, compared with its close of 62.51/52 on Tuesday, 28 January 2014.
Turkey's central bank raised its repurchase rate to 10% from 4.5% and boosted other key borrowing costs at a late-night emergency meeting on Tuesday, 28 January 2014. Turkey's currency's slide to a record low coupled with Argentina's devaluation of the peso and concern over China's economy ignited a rout in world equity markets at the end of last week.
The Reserve Bank of India has not raised interest rates to fight off the recent global emerging market sell-off, but to tamp down inflationary pressures, Governor Raghuram Rajan said today, 29 January 2014. "I think for (some) time we have been saying very clearly we are focused on preserving the value of the rupee, in the domestic context," he told analysts on a conference call a day after the central bank unexpectedly raised its key rate by 25 basis points. "Preserving it in the domestic context will preserve it in the international context. Preserving in the domestic context means bringing inflation under control. Once we do that, we believe investor confidence naturally follows," he said.
Dr. Rajan said he would have liked to see a greater reduction in core inflation. The Reserve Bank of India (RBI) raised its main lending rate viz. the repo rate by 25 basis points to 8% after Third Quarter Review of Monetary Policy for 2013-14 on Tuesday, 28 January 2014, to rein in high consumer price inflation.
Asian stocks edged higher on Wednesday, 29 January 2014, after Turkey's central bank on Tuesday, 28 January 2014, more than doubled interest rates to arrest a currency slide that roiled global markets. Key benchmark indices in Hong Kong, China, Japan, Indonesia and South Korea rose by 0.56% to 2.7%. In Singapore, the Straits Times index fell 0.74%. Stock markets in Taiwan are closed until 4 February 2014 for the Lunar New Year holiday.
Industrial output in South Korea increased 3.4 percent in December from November, the biggest gain since June 2009.
Trading in US index futures indicated that the Dow could advance 77 points at the opening bell on Wednesday, 29 January 2014. US stocks edged higher on Tuesday, 28 January 2014, as earnings at companies from Pfizer Inc. to D.R. Horton Inc. topped estimates.
The Conference Board's index of US consumer confidence rose to 80.7 in January from a revised 77.5 in December, the New York-based private research group said on Tuesday, 28 January 2014.
Federal Reserve officials have been scrutinizing US economic data to determine the timing and pace of reductions to asset purchases. The central bank, which concludes a two-day meeting today, 29 January 2014, decided at its December gathering to begin cutting its monthly bond buying by $10 billion to $75 billion.
US President Barack Obama on Tuesday, 28 January 2014, vowed aggressive action on helping the US economy, saying he would bypass Congress on key issues including creating a new retirement-savings program and raising the minimum wage for workers on new federal contracts. In his State of the Union address, Obama said the economy has grown for four years, that corporate profits and stock prices have "rarely been higher," and wealthy Americans have benefitted. But he said average wages have hardly budged, and inequality has deepened. "America does not stand still," he said. "And neither will I. So wherever and whenever I can take steps without legislation to expand opportunity for more American families, that's what I'm going to do," Obama said.
In his speech, Obama called on Congress to raise the minimum wage for all workers, fix the immigration system, and expand the Earned Income Tax Credit. He said that he would make it easier for states to build factories that use natural gas and that Congress should fund building of fueling stations.
Republicans slammed the president for his pledge to go solo to help narrow the economic gap. "Instead of our areas of common ground, the president focused too much on the things that divide us - many we've heard before - and warnings of unilateral action. The president must understand his power is limited by our constitution," House Speaker John Boehner said in a statement.
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