Market sentiment was weak in afternoon trade after Finance bill was tabled in the Lok Sabha. The CNX Nifty declined while the S&P BSE Sensex moved alternatively between positive and negative terrain. The market breadth, indicating the overall health of the market, was negative. The barometer index, the S&P BSE Sensex, was up 3.15 points or 0.02%, off about 232 points from the day's high and up close to 73 points from the day's low. Index heavyweight and cigarette major ITC held firm at higher level. Index heavyweight Reliance Industries (RIL) was negative. IT stocks were mostly higher. Metal stocks were mixed.
FMCG major Hindustan Unilever (HUL) surged over 17% to hit record high after the company's foreign parent Unilever PLC announced open offer to acquire 48.70 crore shares, or 22.52% stake in Hindustan Unilever at substantial premium to the ruling market price.
Finance bill was tabled in the Lok Sabha today, 30 April 2013. According to reports, BJP has announced a temporary truce with the government on the coal mines and 2G spectrum allocation issues and said it will allow the passage of Finance bill in the Lok Sabha before resuming its agitation in Parliament against the Manmohan Singh dispensation.
Reports added that the Parliamentary Affairs Minister Kamal Nath on Monday had requested BJP and other political parties to cooperate with the government and ensure passage of the pending Finance Bill, Appropriations Bill, rail budget and the Demands for Grants today.
As per rules, government has to get all money bills related to the union budget passed within 75 days of the presentation of the budget. Since these four Bills will have to go the Rajya Sabha and then to the President for his assent, it is crucial for the government to get Lok Sabha's approval by April 30 to meet the deadline. The on-going budget session gets over on 10 May 2013.
Coming back to equity market, the market surged in early trade. The barometer index, the S&P BSE Sensex hit its highest level in 16-1/2 weeks. The 50-unit CNX Nifty hit its highest level in over 17 weeks. The market held firm in morning trade. Key benchmark indices trimmed intraday gains to hit fresh intraday low in mid-morning trade after the Supreme Court said that sharing information by the Central Bureau of Investigation (CBI) with the government on coal block allocation scam has shaken the entire process. Key benchmark indices alternately moved between gains and losses near the flat line in early afternoon trade after Finance bill was tabled in the Lok Sabha. Market sentiment was weak in afternoon trade after Finance bill was tabled in the Lok Sabha.
Foreign institutional investors (FIIs) bought shares worth a net Rs 620.38 crore on Monday, 29 April 2013, as per provisional data from the stock exchanges.
At 13:15 IST, the S&P BSE Sensex was up 3.15 points or 0.02% to 19,390.65. The index surged 235.18 points at the day's high of 19,622.68 in early trade, its highest level since 15 March 2013. The index fell 70.12 points at the day's low of 19,317.38 in afternoon trade.
The CNX Nifty was down 15.85 points or 0.27% to 5,888.25. The index hit a high of 5,962.30 in intraday trade, its highest level since 11 March 2013. The index hit a low of 5,867.80 in intraday trade.
The S&P BSE Mid-Cap index was down 0.28% and the S&P BSE Small-Cap index was down 0.56%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,252 shares declined and 864 shares rose. A total of 129 shares were unchanged.
Among the 30-share Sensex pack, 19 stocks fell while rest of them rose. ONGC (down 3.39%), Larsen & Toubro (down 2.97%), HDFC (down 2.18%), Mahindra & Mahindra (down 2.13%), HDFC Bank (down 2.06%) and Tata Power (down 1.63%), edged lower from the Sensex pack.
Sun Pharmaceutical Industries (up 0.95%), Dr. Reddy's Laboratories (up 0.77%), Coal India (up 0.43%) and NTPC (up 0.32%), edged higher from the Sensex pack.
Index heavyweight Reliance Industries (RIL) declined 1.58% to Rs 780.10. The scrip hit high of Rs 796.70 and a low of Rs 778 so far during the day. At the time of announcement of its Q4 results, RIL in mid-April 2013 said that the company is working towards next wave of projects to exploit the undeveloped discovered resources in KG-D6 gas field targeted over the next 3-5 years. RIL has submitted an Integrated Block Development Plan (IBDP) for four discoveries in NEC -25 block (D-32, D-40, D-9 and D-10) proposing for a phased manner development. First gas is expected by mid-2019 subject to timely approvals.
Index heavyweight and cigarette major ITC rose 2.05% to Rs 331. The stock hit record high of Rs 335.90 in intraday today, 30 April 2013. The stock hit low of Rs 325 in intraday today, 30 April 2013. West Bengal chief minister Mamata Banerjee on 24 April 2013, announced a 10% hike in the value-added tax (VAT) on cigarettes to 25% from 15% to raise money for a relief fund for those depositors who have lost money in the Saradha chit fund scam.
Earlier, 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, which was unveiled on 28 February 2013.
FMCG major Hindustan Unilever (HUL) surged 17.16% to Rs 583. The stock hit record high of Rs 597 in intraday trade today, 30 April 2013. The company's foreign parent Unilever PLC today, 30 April 2013, announced open offer to acquire additional 48.70 crore shares, or 22.52% stake in Hindustan Unilever at Rs 600 per share.
As on 31 March 2013, foreign promoters held 52.48% stake in HUL. After the open offer, holding of foreign promoters will rise to 75% in HUL.
HUL stock had vaulted 6.98% to Rs 497.60 on Monday on good Q4 results. HUL's net profit before exceptional items rose 18% to Rs 781 crore on 12.13% growth in total income from operations to Rs 6465.81 crore in Q4 March 2013 over Q4 March 2012. The company announced the Q4 results during market hours on Monday, 29 April 2013.
IT stocks were mostly higher. HCL Technologies rose 1.58%. The stock had hit a record high of Rs 809 in intraday trade on 17 April 2013 after the company reported strong Q3 results. Consolidated net profit as per US accounting standards rose 7.8% to Rs 1040 crore on 2.4% growth in revenue at Rs 6425 crore in Q3 March 2013 over Q2 December 2012.
Wipro rose 0.69%. Wipro issued weak revenue outlook at the time of announcement of Q4 March 2014 results on 19 March 2013. Wipro expects a between 0.63% fall to a growth of 1.57% in revenue from IT services business at between $1.575 billion to $1.61 billion in Q1 June 2013 over Q4 March 2013. At a post-result conference call, Wipro's management indicated that Q1 for Wipro will be the traditionally weak quarter on account of softness from the India business. The management expects Q2 September 2013 to be better than Q1 June 2013 for the company.
Wipro's IT services revenue rose 0.5% to $1.585 billion in Q4 March 2013 over Q3 December 2012. On year on year basis, IT services revenue rose 3.2% to $1.585 billion in Q4 March 2013 over Q4 March 2012.
Infosys rose 0.15%. Infosys has forecast a tepid 6% to 10% growth in revenue in both rupee terms and dollar terms for the year ending 31 March 2014 (FY 2014) as the company says that global economic uncertainties remain challenging for the IT industry. The revenue growth outlook is lower than industry body Nasscom's projection of 12% to 14% growth in IT exports in the current fiscal year. Infosys has not given full year earnings guidance this time. Infosys had earlier stopped offering quarterly guidance in July 2012.
Tata Consultancy Services (TCS) fell marginally by 0.05%. TCS posted good Q4 results on 17 April 2013. Its consolidated net profit rose 1.9% to Rs 3616 crore on 2.2% growth in revenue to Rs 16430 crore in Q4 March 2013 over Q3 December 2012. Net profit jumped 33.6% to Rs 13917 crore on 28.8% growth in revenue to Rs 62989 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The company clocked volume growth of 16.8% in FY 2013 over FY 2012.
At a post result conference call held on 17 April 2013, TCS' management said it expects FY 2014 to be better year than FY 2013 and anticipates defending the margins in narrow band despite the headwinds from the wage hikes through other levers.
Mahindra Satyam fell 1.30%. The company today, 29 April 2013, said it has appointed Niraj Vedwa as Global Head - Banking, Payments and Cards. Niraj has over 26 years experience in the IT industry and close to 16 years in the BFSI (banking, financial services and insurance) area. At Mahindra Satyam, he will be responsible to grow and support the existing businesses and also to strategize and incubate new service offerings in the BFSI space.
Metal stocks were mixed. Sterlite Industries rose 1.96% on strong Q4 results. The company's consolidated net profit rose 50.72% to Rs 1924.63 crore on 15.6% rise in total income to Rs 13394.23 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results before market hours today, 30 April 2013.
The company's attributable profit after tax (PAT) after exceptional item rose 26% to Rs 6,060 crore on 10% increase in net sales to Rs 44922 crore in the year ended March 2013 over the year ended March 2012. Revenues for Q4 March 2013 (Q4) and the year ended March 2013 (FY2013) were Rs 12609 crore and Rs 44922 crore, an increase of 17% and 10% respectively. The increase in revenue was driven by higher volumes and depreciation of the Indian Rupee, which more than offset lower metal prices. During Q4 and full year, the company delivered higher refined silver, lead, Copper, Aluminium and Power and higher mined metal production at Zinc India, Sterlite Industries (India) said in a statement.
The company added that Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) in FY2013 was up 2% at Rs 10574 crore and in Q4 was up 23% higher at Rs 3323 crore, on account of higher production, higher metal premiums and lower costs which more than offset lower metal prices during the year. Interest cost in Q4 and FY2013 was higher as compared to the corresponding prior periods due to capitalisation of new plants.
Depreciation in Q4 was lower due to one-off depreciation reversal at Zinc India. Depreciation cost for FY2013 was higher on account of capitalization of new plants at Zinc India and Sterlite Energy (SEL).
During the year there was gain on account of foreign exchange movement as compared to the previous year, largely on account of foreign exchange hedge contract towards investments made in overseas subsidiaries, as designated contracts, resulting into transfer of foreign exchange movement to reserves, in accordance with AS 30.
During Q4 and FY2013, attributable PAT and basic earning per share (EPS) were significantly higher by 51% and 26% respectively, over the corresponding prior periods on account of higher EBITDA, higher investment income, lower foreign exchange losses and lower tax rate.
The board has declared a second interim dividend of Rs 1.20 per share. The total interim dividend for FY2013 is Rs 2.30 per share and no final dividend is proposed to be declared. The total dividend outgo will be Rs 773 crore as against Rs. 686 crore during the previous year, Sterlite Industries (India) said in a statement.
Commenting on the company's financial performance, Chairman Mr. Anil Agarwal said, "We achieved a strong operating and financial performance in FY2013. With production growth across our portfolio of world class assets, we recorded a net profit of Rs 6060 crore in FY2013 and the board has declared total interim dividend of Rs 2.30 per share for FY2013."
Jindal Steel and Power (JSPL) rose 0.28%, reversing recent losses triggered by weak Q4 results. The company's consolidated net profit after tax and before minority interest and share of profit/loss of associates declined 35% to Rs 752.75 crore on 3% growth in income from operations to Rs 5648.44 crore in Q4 March 2013 over Q4 March 2012. The company announced the results after market hours on 25 April 2013.
JSPL's consolidated net profit after exceptional item declined 27.25% to Rs 2911.62 crore on 9% growth in income from operations to Rs 19806.78 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). Net profit before exceptional item declined 14% to Rs 3485.74 crore in FY 2013 over FY 2012.
Sesa Goa rose 0.16%. The company's consolidated net profit fell 74% to Rs 298 crore on 90% decline in net sales to Rs 291 crore in Q4 March 2013 over Q4 March 2012. The company announced Q4 results on Saturday, 27 April 2013. Sesa Goa's consolidated net profit declined 15% to Rs 2280 crore on 69% drop in net sales to Rs 2554 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
Sesa Goa said it has posted a loss before depreciation and taxes for Q4 March 2013 at Rs 206 crore, as against cash profit of Rs 1110 crore in Q4 March 2012. The cash profit for FY 2013 declined to Rs 23 crore from Rs 3235 crore in FY 2012 on account of suspension of iron ore operations, the company said in a statement.
Sesa Goa said that its iron ore operations were affected by the suspension of mining in Goa and Karnataka. On 18 April 2013, the Supreme Court of India has given clearance for resumption of mining operations for A and B category mines in Karnataka subject to statutory clearances. Sesa Goa's Karnataka mine falls under B category, and the company is awaiting statutory clearances, including forest clearance which expired in October 2012, to resume mining, the company said. The company said it expects to commence mining shortly, subject to the grant of statutory clearances.
Regarding the suspension of mining in Goa, the date for initial hearing is yet to be fixed by Supreme Court of India, Sesa Goa said. In the meantime, the state government and major miners including Sesa Goa, have filed their responses to the Central Empowered Committee report, the company added. Separately, the company has filed an application to the Supreme Court seeking a stay on the suspension of mining and restrictions on ore transportation, Sesa Goa said in a statement.
Among other metal shares, Hindalco Industries (down 2.73%), JSW Steel (down 1.72%), Sail (down 1.59%), Hindustan Zinc (down 1.3%), National Aluminium Company (down 1.27%), Tata Steel (down 0.66%), NMDC (down 0.61%) and Bhushan Steel (down 0.11%), edged lower.
The stock market remains closed tomorrow, 1 May 2013, on account of Maharashtra Day.
The focus of the market is on Q4 results. IDFC announces Q4 results tomorrow, 1 May 2013. Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on Thursday, 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on Friday, 3 May 2013. Grasim and Jaiprakash Associates unveil Q4 results on Saturday, 4 May 2013. HDFC and Lupin unveil Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints and Punjab National Bank unveil Q4 results on 9 May 2013. NTPC announces Q4 results on 10 May 2013. Dr Reddys 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 announces Q4 results on 30 May 2013.
The Supreme Court today, 30 April 2013, said that the details in the CBI affidavit on the coal scam are very disturbing. There has been a massive breach of trust that has shaken our foundation, the apex court said. The court said sharing information with the government has shaken the entire process. The Supreme Court also said that the CBI must not be influenced by its political masters. The CBI's independent position must be restored, the court said.
The CBI had on Friday, 26 April 2013, filed its affidavit on the coal block allocation scam report with the Supreme Court, in which agency director Ranjit Sinha had said that the draft report was shared with the Law Minister and senior officials of PMO and Coal ministry "as desired by them".
In March, the CBI had said in its status report that many companies were given coal blocks through false representations and that there was no rationale for allocation of the blocks.
Meanwhile, the government today, 30 April 2013, tabled the Finance bill in Lok Sabha. The government needs to pass the finance bill in the Budget Session which ends on 10 May 2013. Neither House had transacted any business so far after Parliament reconvened for the second half of the Budget session last week with adjournments and uproar over various issues.
On the macro front, the Prime Minister's Economic Advisory Council (PMEAC) in a report released on 23 April 2013 projected 6.4% growth in India's GDP for the current fiscal year 2013/14, higher than an estimated 5% growth for the fiscal year 2012/13. The net FDI inflow is expected at $24 billion in 2013-14 from an estimated $18 billion in 2012-13, the PMEAC said. In contrast, FII inflows are seen sliding to $18 billion in 2013-14 from an estimated $24 billion in 2012-13, the PMEAC said.
Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for April 2013 tomorrow, 1 May 2013. The HSBC India Manufacturing PMI fell to 52 in March 2013, after a surge to 54.2 in February 2013. Markit Economics will unveil the result of a monthly survey on the performance of India's services sector for April 2013 on Friday, 3 May 2013. The HSBC Services Purchasing Managers' Index, based on a survey of around 400 companies, fell to a 17-month low of 51.4 in March from 54.2 in February. Services make up over 60% of India's economy.
Slowing wholesale price inflation has raised expectations that the Reserve Bank of India (RBI) will cut its key policy rate viz. the repo rate to boost economic growth. The (RBI) will announce the Monetary Policy Statement 2013-14 on Friday, 3 May 2013. The RBI cut its key policy rate viz. the repo rate by 25 basis points to 7.5% after a mid-quarter monetary policy review on 19 March 2013.
Inflation based on the monthly wholesale price index (WPI) eased to the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed. In Europe, the European Central Bank's (ECB) Governing Council meets in Bratislava on Thursday, 2 May 2013, to review euro area interest rates. The ECB is seen cutting euro area interest rates by 25 basis points to a record low of 0.5% as economic conditions continue to deteriorate across the euro zone and as inflation remains well below the bank's target.
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 markets were trading higher in early trade. Key benchmark indices in UK, France and Germany were up by 0.17% to 1.03%.
The European Central Bank's (ECB) Governing Council meets in Bratislava on Thursday, 2 May 2013, to review euro area interest rates. The ECB is seen cutting euro area interest rates by 25 basis points to a record low of 0.5% as economic conditions continue to deteriorate across the euro zone and as inflation remains well below the bank's target.
Asian stocks rose on Tuesday after US housing sales gained and amid speculation central banks will keep stimulating growth. Key benchmark indices in Hong Kong, Taiwan, Singapore and South Korea rose by 0.03% to 1.20%. Key benchmark index in Japan fell 0.17%. Stock markets in mainland China were closed for a holiday.
Japanese and South Korean industrial output was less than estimates in March and Taiwan's first-quarter growth was half the forecast pace as weakness in global demand limits recoveries in Asian economies. In Japan, production climbed 0.2% from the previous month, the trade ministry said in Tokyo today. South Korea's output fell 2.6%, a separate report showed. Taiwan's gross domestic product rose 1.54%.
Trading in US index futures indicated that the Dow could gain 8 points at the opening bell on Tuesday, 30 April 2013. US stocks gained on Monday with S&P 500 index ending at an all-time high led by gains as growth-oriented stocks, including energy and technology. A report showed contracts to buy previously owned homes rose last month to their highest level since April 2010, showing underlying strength in the housing market recovery, even though the pace of sales growth has cooled in recent months.
A two-day meeting of the Federal Open Market Committee on US interest rates begins today, 30 April 2013.
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