Key benchmark indices extended intraday gains in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 85.67 points or 0.44%, up 107 points from the day's low and off 32.98 points from the day's high. Index heavyweight and cigarette major ITC hovered in the red. Another index heavyweight Reliance Industries (RIL) held firm. The market breadth, indicating the overall health of the market, was positive.
Telecom stocks were in demand. Pharma major Sun Pharmaceutical Industries reversed direction after scaling a record high. Adani Power fell after reporting weak Q4 March 2013 results.
Key benchmark indices edged higher in early trade on firm Asian stocks. A bout of volatility was witnessed as the key benchmark indices regained positive zone after slipping into the red in morning trade. The market retained positive zone in mid-morning trade. Volatility continued as key benchmark indices pared gains after striking fresh intraday high in early afternoon trade. The market regained positive terrain after slipping into the red for a brief period in afternoon trade. Key benchmark indices retained positive zone in mid-afternoon trade.
At 14:20 IST, the S&P BSE Sensex was up 85.67 points or 0.44% to 19,661.31. The index jumped 118.65 points at the day's high of 19,694.29 in early afternoon trade. The index declined 21.33 points at the day's low of 19,554.31 in morning trade.
The CNX Nifty was up 21.30 points or 0.36% to 5,965.30. The index hit a high of 5,976.50 in intraday trade. The index hit a low of 5,928.45 in intraday trade, its lowest level since 2 May 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,321 shares advanced and 992 shares declined. A total of 129 shares were unchanged.
The total turnover on BSE amounted to Rs 1259 crore by 14:20 IST.
Among the 30-share Sensex pack, 20 stocks gained while rest of them declined. NTPC (down 1.6%), ONGC (down 1.31%), HDFC Bank (down 1.29%) edged lower from the Sensex pack. Hindalco Industries (up 3.47%), TCS (up 3.27%), and Tata Steel (up 3.07%) edged higher from the Sensex pack.
Index heavyweight Reliance Industries (RIL) rose 2.2% to Rs 818.20. The scrip hit high of Rs 824.70 and a low of Rs 802.50 so far during the day.
Index heavyweight and cigarette major ITC shed 1.16% to Rs 326.90 on profit booking. The scrip hit high of Rs 332.40 and a low of Rs 325.70 so far during the day. The stock had hit record high of Rs 335.90 in intraday on 30 April 2013. The Centre raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14.
Telecom stocks were in demand. Bharti Airtel rose 1.09%, with the stock extending Friday's 0.32% rise. The company on Friday, 3 May 2013, announced that it has entered into a binding agreement with Qatar Foundation Endowment (QFE), under which Bharti will issue 19.98 crore of its new shares to QFE representing a shareholding of 5% in the company, post issuance of the new shares. As per the agreement, QFE will subscribe to 19.98 crore new shares of Bharti at a price of Rs 340 per share amounting to a total consideration of $1.26 billion (Rs 6796 crore). The investment will further strengthen the capital structure and provide further flexibility for the company to deliver on its growth strategy, Bharti said.
Reliance Communications (RCom) rose 1.32%. The company has reportedly increased voice call prices on some of its plans by about a fifth and cut promotional offers and discounts on some others by up to 65%.
MTNL (up 13.28%) and Tata Teleservices (Maharashtra) (up 2.06%) gained.
Idea Cellular fell 1.45%.
Pharma major Sun Pharmaceutical Industries fell 0.08% to Rs 983.50. The stock reversed direction after scaling a record high of Rs 994.45 in intraday trade today, 6 May 2013.
Adani Power shed 0.21% after the company reported a net loss of Rs 586 crore in Q4 March 2013, higher than net loss of Rs 292 crore in Q4 March 2012. The result was announced during trading hours today, 6 May 2013. The company said the increase in net loss in Q4 March 2013 was mainly on account of higher prices of imported coal and transmission constraints. Consolidated total income surged 79% to Rs 1889 crore in Q4 March 2013 over Q4 March 2012.
The consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 109% to Rs 455 crore in Q4 March 2013 over Q4 March 2012.
The company reported a net loss of Rs 2295 crore in the year ended March 2013 (FY 2013), much higher than net loss of Rs 294 crore in the year ended March 2012 (FY 2012). Adani Power's total income surged 66% to Rs 6779 crore in the year ended March 2013 over the year ended March 2012. The consolidated EBITDA decreased by 22% to Rs 1150 crore in the year ended March 2013 over the year ended March 2012.
Commenting on the financial performance of the company Mr Gautam Adani, chairman, Adani Power said, "We welcome CERC order as a step forward to resolve the tariff issue as it will be in the best interests of all stakeholders and consumers. The developmental mindset of the Government is set to benefit the power sector as a whole and in particular the players which will have large power generating capacity in future."
Mr. Prabal Banerjji, CFO of Adani Poweer, said, "The challenges of limited resources and evacuation bottleneck have affected our profitability in the past year. However, with FSA signing, timely delivery of the domestic coal and with fully operationalized capacity, the company is confident of posting a strong operational and financial performance to bring value to its stakeholders."
The Central Bureau of Investigation (CBI) said in a fresh affidavit filed in the Supreme Court on its probe into the coal blocks allocation today, 6 May 2013, that changes were made by law minister, coal ministry, attorney general and officials of the Prime Minister's Office in CBI's draft status report on coal scam. Last week, the Supreme Court had issued strong observations against CBI sharing the draft coal block scam report with the government. The apex court had asserted that the probe agency must be liberated and should not be controlled by political masters.
The stock exchanges have decided to conduct a special trading session for a short duration on Saturday, 11 May 2013, as the Bombay Stock Exchange (BSE) is testing its disaster recovery software. Trading will start at 11:15 IST and end at 12:45 IST.
The focus of the market is on Q4 results. HDFC and Lupin unveil Q4 results on Wednesday, 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints and Punjab National Bank unveil Q4 results on Thursday, 9 May 2013. NTPC announces Q4 results on Friday, 10 May 2013. Bank of Baroda unveils Q4 results on 13 May 2013. Dr Reddy's Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013. BPCL announces Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013.
Indian services sector growth eased sharply during April as new orders came in at a much slower pace, a business survey showed today, 6 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to 50.7 in April 2013, its lowest since October 2011. It was the third straight month of decline, and took the index dangerously close to the 50 mark that separates growth from contraction. The index had stood at 51.4 in March. Services make up over 60% of India's economy.
The Central Statistics Office (CSO) will issue data on industrial production for March 2013 on Friday, 10 May 2013. Industrial production rose 0.6% in February 2013.
The Budget session of the Parliament ends on Friday, 10 May 2013.
The RBI on Friday, 3 May 2013, cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The central bank said that with upside risks to inflation still significant in the near term in view of sectoral demand supply imbalances, ongoing correction in administered prices and pressures stemming from MSP increases, monetary policy cannot afford to lower its guard against the possibility of resurgence of inflation pressures. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command.
The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017.
European stocks were mixed on Monday. France's CAC 40 fell 0.05%. Germany's DAX rose 0.07%. The stock market in UK was closed for a holiday.
Asian stocks rose on Monday as investors gave thumbs up to an upbeat US labor force report that sent Wall Street to an all-time closing high on Friday, 3 May 2013. Key benchmark indices in China, Hong Kong, Taiwan, Indonesia and Singapore rose by 0.41% to 1.38%. South Korea's KOSPI Composite index fell 0.22%. Japanese financial markets are shut on Monday for a public holiday and will reopen on Tuesday.
Trading in US index futures indicated that the Dow could gain 20 points at the opening bell on Monday, 6 May 2013. US stocks on Friday, 3 May 2013, rose to record highs, with the Dow industrials soaring above 15,000 and the S&P 500 index above 1,600, as Wall Street celebrated an upbeat April jobs report. US nonfarm payrolls rose by 165,000 last month and the jobless rate fell to a four-year low of 7.5%, the Labor Department said on Friday, 3 May 2013.
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