Key benchmark indices edged higher in early trade on firm Asian stocks. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in almost five weeks. The Sensex was up 92.91 points or 0.49%, up close to 100 points from the day's low and off about 5 points from the day's high. The Sensex regained the psychological 19,000 mark after slipping below that mark for a brief period at the onset of the trading session. Index heavyweight Reliance Industries (RIL) edged higher. Another index heavyweight and cigarette major ITC hit record high. Pharma major Sun Pharmaceutical Industries also scaled record high. The market breadth, indicating the overall health of the market, was strong.
Bharat Petroleum Corporation (BPCL) gained after announcing a new discovery of natural gas in Mozambique. Wipro slumped nearly 8% after the company said at the time of announcing Q4 results that it expects revenue from IT services business to remain flat on sequential basis in Q1 June 2013.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 18 April 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 940.07 crore on Thursday, 18 April 2013, as per provisional data from the stock exchanges.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month April 2013 series to May 2013 series. The May 2013 F&O contracts expire on Thursday, 25 April 2013. The stock market remains shut on Wednesday, 24 April 2013 on account of Mahavir Jayanti.
At 9:26 IST, the S&P BSE Sensex was up 92.91 points or 0.49% to 19,109.37. The index rose 97.68 points at the day's high of 19,114.14 in early trade, its highest level since 19 March 2013. The index fell 26.68 points at the day's low of 18,989.78 in early trade.
The CNX Nifty was up 33.40 points or 0.58% to 5,816.60. The index hit a high of 5,819.85 in intraday trade, its highest level since 19 March 2013. The index hit a low of 5,789.80 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 738 shares advanced and 292 shares declined. A total of 48 shares were unchanged.
Among the 30-share Sensex pack, 23 stocks advanced while rest of them declined.
Index heavyweight Reliance Industries (RIL) rose 0.1% to Rs 782.70. RIL's net profit jumped 31.9% to Rs 5589 crore on 1.4% fall in turnover to Rs 86618 crore in Q4 March 2013 over Q4 March 2012. On sequential basis, RIL's net profit rose 1.58% to Rs 5589 crore on 10.06% decline in turnover to Rs 86618 crore in Q4 March 2013 over Q3 December 2012. The company reported Q4 March 2013 results after trading hours on 16 April 2013.
Net profit rose 4.8% to Rs 21003 crore on 9.2% growth in turnover to Rs 371119 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
Cairn India gained 0.63% ahead of its Q4 results today, 22 April 2013.
Bharat Petroleum Corporation (BPCL) gained 1.06%. The company after trading hours on Thursday, 18 April 2013, said that Anadarko Mocambique Area 1 Limitada, the operator of the offshore Area 1 block in the Rovuma basin, Mozambique, has announced the discovery of a new natural gas accumulation fully contained within the Offshore Area 1 of the Rovuma basin. Bharat PetroResources (BPRL), a wholly owned subsidiary of BPCL, has 10% participating interest in the block. The Orca-1 discovery well encountered approximately 58 net metres of natural gas pay in a Paleocene fan system. The operator has informed that an initial two well appraisal program is being designed to define the areal extent of the Orca field, which will commence immediately after drilling of the Linguado and Espadarte exploration wells. Orca is a single large Paleocene column, and its proximity to shore provides additional options and flexibility for potential future developments.
Index heavyweight and cigarette major ITC rose 0.22% to Rs 316. The stock hit record high of Rs 317.30 in intraday trade today, 22 April 2013. The government 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.
Sun Pharmaceutical Industries rose 0.79% to Rs 941.65. The stock hit a record high of Rs 943.80 in intraday trade today, 22 April 2013.
UltraTech Cement declined 0.38% ahead of its Q4 results today, 22 April 2013.
Wipro slumped 7.95%. The company on Friday, 19 April 2013, said its consolidated net profit as per International Financial Reporting Standards (IFRS) rose 17% to Rs 1729 crore on 12% growth in revenue to Rs 11026 crore in Q4 March 2013 over Q4 March 2012. Net profit from continuing operations rose 13% to Rs 1576 crore on 13% growth in revenue to Rs 9614 crore in Q4 March 2013 over Q4 March 2012. Wipro demerged all its non-IT businesses into a separate company with effect from 31 March 2013 and therefore the company has given separate information on continuing operations as a pure play IT company. Net profit from continuing operations rose 17% to Rs 6136 crore on 17% growth in revenue to Rs 37688 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012).
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. 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.
Commenting on the financial performance for the quarter and year ended 31 March 2013, Azim Premji, Chairman of Wipro, said: "We have completed the demerger of the 'Diversified Business' effective 31 March 2013 to make Wipro a pure play IT company. We are confident that being a technology-focused company will provide a fresh momentum for growth."
Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said: "The cross currencies have been volatile and impacted our financial performance in the quarter. Excluding the impact of foreign exchange, we have been able to maintain margins on a sequential basis. We have shown significant improvements in cash flow generation for the year."
T K Kurien, Executive Director & Chief Executive Officer, IT Business, said: "We continue to see improvement in our customer satisfaction and employee engagement. Our continued investments in the go-to-market organization positions us well for the future."
Sesa Goa rose 0.13% after the company on Friday, 19 April 2013 said that it is in the process of securing the necessary statutory clearances to resume iron ore mining operations in Karnataka shortly. 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, vide its order dated 18 April 2013. Sesa Goa's Karnataka mine falls under B category.
United Breweries gained 0.75%. The company said on Friday, 19 April 2013, that High Court of Karnataka has approved the scheme of amalgamation between Scottish & Newcastle India and United Breweries. The certified true copy of the court has been filed with the Registrar of Companies, Karnataka and the Scheme has become effective. The company shall in due course allot equity shares to the eligible shareholders in terms of the scheme, United Breweries said
Reliance Communications (RCom) rose 0.99%. The company before trading hours today, 22 April 2013, said that Samena Capital in a proposed consortium with certain other global PE funds is at an advanced stage of the process of due diligence and completion of definitive documents in relation to the acquisition of the company's global communications services business unit -- Reliance Globalcom. The intended time line for completion of the transaction is end May 2013. At this point, there can be no certainty that this will lead to a transaction, RCom said. A further announcement will be made in due course, if and when appropriate, the company said.
RCom also said that it has discontinued discussions with Batelco Group for selling its sake in Reliance Globalcom. RCom had earlier said in March 2013 that it was in discussions with Batelco Group with respect to Reliance Globalcom.
Tata Steel gained 0.5%. The company said before trading hours today, 22 April 2013, that Abja Investment Co. Pte, Singapore, a wholly owned subsidiary of Tata Steel is contemplating an issuance of Singapore dollar bonds listed on the Singapore Exchange in respect of which a preliminary offering circular has been prepared.
The focus of the market is on Q4 results. HDFC Bank announces Q4 results tomorrow, 23 April 2013. Axis Bank will announce its Q4 March 2013 results on 24 April 2013. Jindal Steel & Power declares its Q4 results on 25 April 2013. Hero MotoCorp, ICICI Bank and Maruti Suzuki unveil Q4 results on 26 April 2013. IDFC announces Q4 results on 1 May 2013.
Bharti Airtel and Kotak Mahindra Bank unveil Q4 results on 2 May 2013. ACC and Ambuja Cements announce Q1 March 2013 results on 3 May 2013. Grasim announces Q4 March 2013 results on 4 May 2013. HDFC unveils Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Dr. Reddys Laboratories announces Q4 results on 14 May 2013. Bajaj Auto announces Q4 results on 16 May 2013.
The Reserve Bank of India (RBI) will announce the Monetary Policy Statement 2013-14 on 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.
The India Meteorological Department will issue its initial forecast of 2013 southwest monsoon in this month.
The second half of the Budget session of the Parliament begins today, 22 April 2013. The government has lined up a number of key bills for consideration and passing during the Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008. The Budget Session of the Parliament ends on 10 May 2013.
Asian stocks rose for the second day in a row on Monday led by Japanese exporters as the yen slid to a four-year low against the US dollar after the Bank of Japan's stimulus policies were unopposed at a Group of 20 meeting. Key benchmark indices in Hong Kong, Indonesia, Japan, South Korea, Singapore and Taiwan rose by 0.06% to 2.1%. China's Shanghai Composite fell 0.42%.
Bank of Japan (BOJ) Governor Haruhiko Kuroda emerged from the G-20 meeting saying he was emboldened to press ahead with the campaign to defeat deflation. The central bank holds a policy meeting this week after pledging on 4 April 2013 to double the monetary base in two years.
US stocks rose on Friday as earnings from Google and other companies lifted tech shares.
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