A bout of volatility was witnessed as key benchmark trimmed losses after hitting fresh intraday low in afternoon trade. The barometer index, the S&P BSE Sensex, was down 48.39 points or 0.23%, up about 41 points from the day's low and off close to 138 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
Bajaj Auto inched up after decent Q3 results. AXIS Bank dropped in choppy trade as the bank's bad loans rose in Q3 December 2013. LIC Housing Finance rose after strong Q3 results.
A bout of volatility was witnessed in early trade as key benchmark indices pared gains after a firm start triggered by higher Asian stocks. The Sensex hit its highest level in more than five weeks at the onset of the trading session. The 50-unit CNX Nifty hit 2-week high at the onset of the trading session. Key benchmark indices reversed initial gains and hit fresh intraday low in morning trade. Key benchmark indices trimmed losses after hitting fresh intraday low in mid-morning trade. The Sensex languished in negative zone in early afternoon trade. A bout of volatility was witnessed as key benchmark trimmed losses after hitting fresh intraday low in afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 713.29 crore on Wednesday, 15 January 2014, as per provisional data from the stock exchanges.
At 13:16 IST, the S&P BSE Sensex was down 48.39 points or 0.23% to 21,241.10. The index fell 89.84 points at the day's low of 21,199.65 in afternoon trade. The index rose 89.80 points at the day's high of 21,379.29 in early trade, its highest level since 9 December 2013.
The CNX Nifty was down 4.25 points or 0.07% to 6,316.65. The index hit a low of 6,299.85 in intraday trade. The index hit a high of 6,346.50 in intraday trade, its highest level since 2 January 2014.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,453 shares dropped and 1,040 shares rose. A total of 151 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks fell and rest rose. Bharti Airtel (down 4.18%), Tata Motors (down 2.43%), Sun Pharmaceutical Industries (down 1.63%), ONGC (down 1.25%), Cipla (down 0.98%), M&M (down 0.97%), ITC (down 0.82%), Dr. Reddy's Laboratories (down 0.6%), Maruti Suzuki India (down 0.53%) and ICICI Bank (down 0.51%), edged lower from the Sensex pack.
Coal India (up 2.25%), Hindalco Industries (up 1.89%), Bhel (up 1.81%), Tata Steel (up 1.67%), Jindal Steel & Power (up 1.61%), Sesa Sterlite (up 1.32%), HDFC (up 1.14%) and NTPC (up 1.06%), edged higher from the Sensex pack.
Bajaj Auto was up 0.63% to Rs 1,907.35 after net profit rose 10.48% to Rs 904.55 crore on 4.67% decline in total income to Rs 5353.08 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours today, 16 January 2014.
Exports rose 23.5% to Rs 2123 crore in Q3 December 2013 over Q3 December 2012.
Operating earnings before interest, taxation, depreciation and amortization (EBITDA) before mark-to-market gain/loss rose 0.64% to Rs 1092 crore in Q3 December 2013 over Q3 December 2012. Operating EBITDA margin before mark-to-market gain/loss edged up to 21.1% in Q3 December 2013, from 19.8% in Q3 December 2012.
Total automobile sales fell 11.88% to 9.93 lakh units in Q3 December 2013 over Q3 December 2012. Bajaj Auto said that sales during festive period, though reasonable, were not robust. Subsequently, in November and December, industry sales continued to remain sluggish, Bajaj Auto said.
Bajaj Auto said that the quarter witnessed a marked increase in input cost of steel, aluminium and other imported components.
Cash and cash equivalents as on 31 December 2013 stood at Rs 6920 crore, higher than Rs 6516 crore as on 30 September 2013, Bajaj Auto said in a statement.
AXIS Bank dropped in choppy trade as the bank's bad loans rose in Q3 December 2013. The stock was off 0.13% at Rs 1,176.60. AXIS Bank's net profit rose 19.06% to Rs 1604.11 crore on 9.94% increase in total income to Rs 9433.55 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours today, 16 January 2014.
The bank's gross non-performing assets increased to Rs 3008.20 crore as on 31 December 2013, from Rs 2734.47 crore as on 30 September 2013 and Rs 2275.30 crore as on 31 December 2012. The ratio of net non-performing assets to net advances stood at 0.42% as on 31 December 2013, compared with 0.37% as on 30 September 2013 and 0.33% as on 31 December 2012. The ratio of gross non-performing assets (NPA) to gross advances stood at 1.25% as on 31 December 2013, compared with 1.19% as on 30 September 2013 and 1.10% as on 31 December 2012.
Provisions and contingencies fell 47.65% to Rs 202.49 crore in 31 December 2013 over Q3 December 2012. Provisions and contingencies declined 70.54% on sequential basis
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 15.50% as on 31 December 2013, compared with 15.85% as on 30 September 2013.
LIC Housing Finance rose 0.23% to Rs 213.50 after net profit rose 38.24% to Rs 326.58 crore on 21.56% increase in total income to Rs 2376.36 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours today, 16 January 2014.
In the foreign exchange market, the rupee edged lower against the dollar on broad gains in dollar triggered by strong US economic data. The partially convertible rupee was hovering at 61.56, compared with its close of 61.54/55 on Wednesday, 15 January 2014.
An India downgrade is not on the cards, a foreign news agency reported, citing Moody's rating analyst Thomas Byrne. Moody's has an investment grade rating of Baa3 on India with a stable outlook.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014. The RBI kept its main lending rate viz. the repo rate unchanged after its last policy review in December and said at that time that it expected inflation to ease in the following months.
Asian stocks edged higher on Thursday, 16 January 2014, as better-than-projected bank earnings boosted investor confidence and drove US stock gauges to record highs on Wednesday, 15 January 2014. Key benchmark indices in China, Hong Kong, South Korea and Taiwan were up 0.02% to 0.25%. Key benchmark indices in Indonesia, Japan and Singapore fell 0.16% to 0.39%.
Foreign direct investment in China rose a modest 5.3% last year compared with 2012. China's Ministry of Commerce said on Thursday that China attracted a total of $117.6 billion in foreign direct investment in 2013, and that pointed to continued confidence among investors in the health of the world's second-largest economy, a ministry spokesman said Thursday. "We saw a stable development in foreign investment with positive growth starting from February last year," Shen Danyang told a news briefing. "I'm confident that actual foreign direct investment will see steady progress in 2014," he added.
Mr. Shen said China has been stepping up its outbound investment, and it could soon surpass incoming investment. Chinese companies made nonfinancial investments of $90.17 billion in overseas markets last year, up 16.8% from the previous year. In 2013, China's nonfinancial direct investment to Russia totaled $4.1 billion, five times the amount of 2012, and investment to the US more than doubled to $4.23 billion.
Mr. Shen also said that the outlook for China's trade faced "severe challenges" this year, though he gave no precise estimates. Mr. Shen cited a survey by the ministry saying that about 77% of companies surveyed said that external demand wasn't strong, while more than half pointed to concerns about rising costs and growing competition from other emerging markets. Exports were up 7.9% last year while imports rose 7.3%, giving the nation a trade surplus of $259.8 billion.
Trading in US index futures indicated that the Dow could drop 6 points at the opening bell on Thursday, 16 January 2014. The S&P 500 index closed at a record high Wednesday, narrowly beating its previous peak reached on December 31, as investors took upbeat manufacturing data, Bank of America Corp. earnings, and Apple Inc.'s China deal as signs economic growth was on solid ground.
The Federal Reserve said "moderate" growth across most of the US last month was buoyed by gains in holiday spending by consumers, an improving labor market and strength in manufacturing. "The economic outlook is positive in most districts, with some reports citing expectations of 'more of the same' and some expecting a pickup in growth," the Fed said yesterday in its Beige Book business survey, based on reports gathered on or before 6 January 2014.
The Federal Reserve Bank of New York said that its general business conditions index jumped to 12.51 in January from an upwardly revised 2.22 in December.
The US producer price index rose 0.4% in December, the biggest increase since June, recovering from a 0.1% decline in November and was 1.2% higher from a year earlier. Core PPI was up 0.3% in December and rose 1.4% on a year-over year basis, compared to expectations for a monthly increase of 0.1% and an annual gain of 1.3%.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014.
International Monetary Fund Managing Director Christine Lagarde said yesterday that momentum in the world economy in the second half of last year should continue in 2014. The Washington-based fund plans to raise its forecast for global growth when it releases a report later this month.
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