Key benchmark indices regained positive terrain after reversing intraday gains in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 1.05 points or 0.004% at 21,206.10, off close to 100 points from the day's high and up about 15 points from the day's low. The market breadth, indicating the overall health of the market, was positive.
Auto stocks edged higher. Tata Motors gained after the company on Monday, 20 January 2014, announced the launch of the REVOTRON Series -- the next generation petrol engine family that will power its future models in the passenger vehicle market. Shares of two-wheeler makers declined. Index heavyweight Reliance Industries (RIL) extended Monday's losses triggered by the company reporting a flat bottom line in Q3 December 2013 due to fall in gross refining margins (GRM).
The market edged higher in early trade on firm Asian stocks. The Sensex extended initial gains and hit fresh intraday high in morning trade. A bout of volatility was witnessed as key benchmark indices trimmed gains after hitting fresh intraday high in mid-morning trade. Key benchmark indices regained positive terrain after reversing intraday gains in early afternoon trade.
Foreign institutional investors (FIIs) bought shares worth a net Rs 384.89 crore on Monday, 20 January 2014, as per provisional data from the stock exchanges.
At 12:20 IST, the S&P BSE Sensex was up 1.05 points or 0.004% at 21,206.10. The index jumped 97.47 points at the day's high of 21,302.52 in mid-morning trade, its highest level since 16 January 2014. The index fell 15.85 points at the day's low of 21,189.20 in early afternoon trade.
The CNX Nifty was up 2.40 points or 0.04% to 6,306.35. The index hit a high of 6,330.30 in intraday trade, its highest level since 16 January 2014. The index hit a low of 6,297.90 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,185 shares gained and 1,052 shares fell. A total of 148 shares were unchanged.
Among the 30-share Sensex pack, 18 stocks fell and rest rose. Coal India (down 2%), Bhel (down 1.27%) and NTPC (down 1.25%) edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) extended Monday's losses triggered by the company reporting a flat bottom line in Q3 December 2013 due to fall in gross refining margins (GRM). The stock was off 0.4%. The company's net profit rose 0.2% to Rs 5511 crore on 10.5% growth in revenue to Rs 106383 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Friday, 17 January 2014.
RIL's profit before depreciation, interest and taxation (PBDIT) declined 1.8% to Rs 9927 crore in Q3 December 2013 over Q3 December 2012. RIL's non-operational income jumped 32.47% to Rs 2305 crore in Q3 December 2013 over Q3 December 2012.
RIL's gross refining margin (GRM) declined to $7.6/barrel in Q3 December 2013, from $7.7/barrel in Q2 September 2013 and $9.6/barrel in Q3 December 2012.
RIL said its refining business maintained stable earnings on Q-o-Q basis in Q3 December 2013 despite lower volumes and decline in regional benchmark complex margins. RIL's margins were positively impacted by widening crude differentials, strength in middle-distillates and naphtha product cracks, which was offset by weak gasoline cracks
RIL said that the net addition to fixed assets for the nine month ended 31 December 2013 was Rs 27645 crore including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej, Silvassa and Hazira.
RIL said its retail unit Reliance Retail continued its growth momentum in Q3 December 2013 despite challenging macroeconomic environment. Reliance Retail's revenue jumped 38.32% to Rs 3927 crore in Q3 December 2013 over Q3 December 2012.
TCS dropped 2.25%. The company today, 21 January 2014, said it has introduced TCS Embedded Code Analyzer (TCS ECA) -- a new solution that enhances the software assurance lifecycle for automotive, high-tech and other industries that develop products which rely on embedded software. TCS ECA has been developed by TCS in collaboration with Nissan Motor Co., (Nissan) in Japan and is available from distribution partner Yokogawa Digital Computer Corporation, TCS said.
Embedded software is the center-point of a vast range of products manufactured across industries and quality software code is a necessity to ensure these products operate properly at all times. TCS ECA has been designed to combine TCS' leadership in engineering software solutions and services with Nissan's expertise in automotive software. TCS ECA is the most scalable product of its kind in the market today and can easily be customized to suit specific needs across industries, TCS said.
TCS ECA helps manufacturers accelerate product development, produce more reliable products, reduce time-to-market, and lower costs attributed to software failure. It helps the embedded software developer community improve the software quality and better comply with key regulations, such as MISRA-C and ISO 26262 in the automotive industry. TCS ECA automatically detects the coding defects which are difficult to identify through standard testing and review processes and are often very expensive to locate and fix if not detected early in the software development cycle, TCS said.
TCS' consolidated net profit rose 15.1% to Rs 5333 crore on 1.5% increase in revenue to Rs 21294 crore in Q3 December 2013 over Q2 September 2013. Operating profit grew 0.5% to Rs 6337 crore in Q3 December 2013 over Q2 September 2013. Operating margin was reported at 29.8% in Q3 December 2013. TCS announced the third quarter results after trading hours on Thursday, 16 January 2014.
TCS said growth in Q3 December 2013 was driven by industries like Life Science & Healthcare, Manufacturing, Media, Travel & Hospitality and Telecom. The company's broad based presence across markets and services helped overcome seasonal weakness in some markets. Europe led growth, driven by the continuous investments being made in that market, while North America and UK also grew during the quarter, TCS said in a statement. Among growth markets, Latin America, APAC and MEA registered strong growth. India business suffered from volatility and declined sequentially, TCS said. Among service lines, Business Process Services, Enterprise Solutions, Global Consulting were the leaders.
Auto stocks edged higher. M&M (up 1.18%), Maruti Suzuki India (up 1.56%) and Ashok Leyland (up 0.89%), edged higher.
Tata Motors rose 2.95%. The company on Monday, 20 January 2014, announced the launch of the REVOTRON Series -- the next generation petrol engine family that will power its future models in the passenger vehicle market. The company unveiled the first petrol engine from its REVOTRON series - the Turbocharged Intercooled Multi-point Fuel Injected (MPFi) Petrol Engine, REVOTRON 1.2T. Tata Motors said that the REVOTRON Series has been designed based on extensive feedback from car owners, car enthusiasts and expert drivers from across the globe; observing their driving habits followed by extensive testing in gruelling climatic conditions in India as well as in countries like the UK and Korea.
The REVOTRON Series has been developed by Tata Motors with inputs from renowned global players in the area of combustion, boosting, friction and calibration, to deliver class-leading performance, the company said in a statement. Tata Motors also worked closely with global engine consultant AVL (Austria) and key technology partners like Bosch, Honeywell, Mahle and INA to bring in the latest technology for the new engine series. REVOTRON 1.2T has been tested for global standards along with a testing car by TEnergy of Korea to ensure that the engine performance is best-in-class, Tata Motors said. The engine has been manufactured to be light on weight and low on friction, delivering high performance and fuel economy. The REVOTRON series will include 3-and 4-cylinder petrol engines to offer superior performance as well as high fuel efficiency to our customers, Tata Motors said.
Announcing the launch, Mr. Ranjit Yadav, President, Passenger Vehicle Business Unit, Tata Motors said: "With the launch of REVOTRON 1.2T, Tata Motors passenger vehicles business is making a strategic shift towards a more complete portfolio. The name itself, an amalgamation of Revolution and the French word "tronel", meaning "balance", conveys the essence of this engine brand that uses key technological advances to revolutionize and balance great driving manoeuvrability, without compromising on power or fuel efficiency. We are enhancing our portfolio with the next generation petrol engines - REVOTRON series".
The REVOTRON 1.2T has been engineered to deliver optimum balance of power, performance and fuel economy, Tata Motors said. Developed using a range of eco-friendly and future-oriented technologies, the next-generation petrol engine incorporates latest know-how like multi-drive modes, allowing the best of economy and driving pleasure. The Advance Engine Management Systems (AMS) provides a digitally precise control for vehicle performance and emissions and offers the design of reciprocating components to ensure the best out of every drop of fuel. With enhanced customer benefits for the best driving experience, the REVOTRON series is therefore positioned to be a revolution in Performance, Refinement and Economy, the three pillars of the REVOTRON series, Tata Motors said.
Shares of two-wheeler makers declined. Hero MotoCorp (down 0.01%), TVS Motor Company (down 0.07%) and Bajaj Auto (down 0.2%) declined.
Aurobindo Pharma rose 3.42%, with the stock extending Monday's 6.31% rally triggered by the company signing a binding offer to acquire commercial operations in seven Western European countries from Actavis plc. Closing of the transaction is conditional on certain antitrust approvals and completion of employee consultation processes, Aurobindo Pharma said in a statement.
Aurobindo said it expects to acquire personnel, commercial infrastructure, products, marketing authorizations and dossier license rights in seven European countries. Actavis and Aurobindo will be entering into a long term commercial and supply arrangement in order to support the ongoing growth plans of these businesses. The acquisition expands Aurobindo's front-end operations into five segments (generics, prescription products, over-the-counter products, hospital products and generics tenders) with approximately 1,200 products and an additional pipeline of over 200 products, Aurobindo Pharma said in a statement.
Aurobindo Pharma said that the management estimates the net sales for the acquired businesses would be around euro 320 million in 2013 with a growth rate of over 10% year-on-year. Although these businesses are currently loss-making, Aurobindo said it expects them to return to profitability in combination with its vertically integrated platform and existing commercial infrastructure. The acquisition will make Aurobindo one of the leading Indian pharmaceutical companies in Europe, it added. Since 2006 Aurobindo has been steadily expanding its European footprint through an increasing presence in UK, Spain and Germany. The acquisition will enable Aurobindo to achieve critical mass in Western Europe with a top 10 position in several key markets, Aurobindo Pharma said in a statement.
Actavis plc is a global, integrated specialty pharmaceutical company focused on developing, manufacturing and distributing generic, brand and biosimilar products. Actavis has global headquarters in Dublin, Ireland and US administrative headquarters in Parsippany, New Jersey, USA.
Lakshmi Machine Works advanced 3.68% after net profit jumped 174.34% to Rs 52.40 crore on 46.19% growth in total income from operations (net) to Rs 629.63 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Monday, 20 January 2014.
Century Plyboards (India) jumped 8.59% after the company reported net profit of Rs 19.74 crore in Q3 December 2013 as compared to net loss of Rs 8.23 crore in Q3 December 2012. Century Plyboards (India)'s net sales rose 10.1% to Rs 303.50 crore in Q3 December 2013 over Q3 December 2012. The company announced Q3 results after market hours on Monday, 20 January 2014.
In the foreign exchange market, the rupee edged higher against the dollar as foreign banks offer dollars on strong inflows. The partially convertible rupee was hovering at 61.515, compared with its close of 61.62/63 on Monday, 20 January 2014.
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 Tuesday, 21 January 2014, as China's money-market rates dropped after the central bank pumped funds into the financial system. Key benchmark indices in China, Japan, Singapore, Hong Kong, Indonesia, and South Korea were up 0.3% to 0.99%. Taiwan's Taiwan Weighted fell 0.25%.
The People's Bank of China yesterday added funds and expanded access to a lending facility as rising demand for cash before the Lunar New Year drove the biggest jump in money-market rates in seven months. Small- and medium-sized Chinese banks will also be able to tap the PBOC's Standing Lending Facility for loans of up to two weeks on a trial basis after the seven-day repurchase rate, a gauge of interbank funding availability, jumped 153 basis points yesterday to 6.32%.
The Bank of Japan's two-day monetary policy meeting began today, 21 January 2014.
Trading in US index futures indicated that the Dow could advance 64 points at the opening bell on Tuesday, 21 January 2014. The US stock market was closed on Monday, 20 January 2014, for a holiday commemorating civil rights leader Martin Luther King Jr.
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.
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