Market snaps two-day losing streak

Key benchmark indices eked out small gains on reports the monsoon rains, crucial to farm output, will arrive in time this year. The market snapped two-day losing streak. The barometer index, BSE Sensex, rose 21.70 points or 0.13%, off close to 30 points from the day's high and up about 110 points from the day's low. The market breadth, indicating the overall health of the market was negative.

The Sensex had lost 375.28 points or 2.13% in two trading sessions to settle at 17,222.14 on Monday, 9 April 2012, from a recent high of 17,597.42 on 3 April 2012. The Sensex has fallen 160.36 points or 0.92% so far in April 2012 (till 10 April 2012). The index has surged 1,788.92 points or 11.57% in calendar 2012 so far (till 10 April 2012). From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 2,107.98 points or 13.92%. From a 52-week high of 19,737.33 on 13 April 2011, the Sensex has lost 2,493.49 points or 12.63%.



Coming back to today's trade, index heavyweight Reliance Industries (RIL) edged higher in volatile trade. FMCG stocks moved up on reports that monsoon may arrive in time this year. ITC and Nestle India hit record highs. Capital goods stocks extended recent losses. IT and auto stocks were mixed.

Gas utility stocks tumbled after Petroleum and Natural Gas Regulatory Board (PNGRB) slashed network tariff and compression charges for CNG in respect of the Delhi compressed gas distribution (CGD) network of Indraprastha Gas. Indraprastha Gas and GAIL (India) hit 52-week lows.

A bout of volatility was witnessed in early trade as key benchmark indices trimmed losses after slipping into the red to hit their lowest level in 1-1/2 weeks after opening higher. The market regained strength in morning trade. Volatility continued as the market once again slipped into the red in mid-morning trade. Key benchmark indices alternately swung between gains and losses near the flat line in early afternoon trade. Key benchmark indices hit fresh intraday lows in afternoon trade after European market opened on a weak note. The Sensex regained positive zone in mid-afternoon trade.

The BSE Sensex advanced 21.70 points or 0.13% to settle at 17,243.84, its highest closing level since 4 April 2012. The index fell 86.38 points at the day's low of 17,135.76 in afternoon trade, its lowest level since 30 March 2012. The index rose 52.55 points at the day's high of 17,274.69 in morning trade.

The S&P CNX Nifty advanced 9.20 points or 0.18% to settle at 5,243.60, its highest closing level since 4 April 2012. The Nifty hit a low of 5,211.85 in intraday trade, its lowest level since 30 March 2012. The Nifty hit a high of 5,255.80 in intraday trade.

The BSE Mid-Cap index fell 0.26% and the BSE Small-Cap index declined 0.12%. Both these indices underperformed the Sensex.

BSE clocked turnover of Rs 2288 crore, higher than Rs 1851.14 crore on Monday, 9 April 2012.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1,432 shares fell and 1,337 shares rose. A total of 150 shares were unchanged. Earlier, the market breadth had turned positive from negative in morning trade.

From the 30-share Sensex pack, 18 stocks fell and rest of them rose.

Index heavyweight Reliance Industries (RIL) rose 0.05% to Rs 743. The stock hit a high of Rs 746.40 and a low of Rs 738.30. RIL is seen reporting weak Q4 earnings due to falling refining margins and reduced output from its KG-D6 gas blocks.

RIL early last week said its Jamnagar manufacturing unit is planning to take Maintenance and Inspection (M&I) shutdown of one of the diesel hydro treating unit for approximately three weeks duration from 2 April 2012. Routine activity of catalyst replacement is planned to be carried out during this shutdown and the opportunity will also be utilized to carry out revamp jobs so as to further enhance BS-IV grade diesel production capability from DTA refinery, RIL said. Remaining units of refinery, including crude processing units, are planned to operate at full throughput during this period, RIL said.

Cairn India rose 2.14% to Rs 348.30. The company announced during trading hours today, 10 April 2012, that it had an average daily gross operated production of 180,293 barrels of oil equivalent (boe) in Q4 March 2012, with working interest production at 107,292 barrels of oil equivalent per day (boepd). This gross operated production comprised 137,634 barrels of oil per day (bopd) from Rajasthan, 34,944 boepd from Ravva and 7,715 boepd from the Cambay CB/OS-2 block.

Average daily gross operated production for the financial year ended March 2012 (FY 2011-12) was 172,887 boe that comprised 128,267 bopd from Rajasthan, 36,379 boepd from Ravva and 8,242 boepd from the CB/OS-2 block.

The gross oil production from operating units was 167,663 bopd and 160,635 bopd during Q4 March 2012 and FY 2011-12, respectively, as compared with 148,288 bopd and 135,811 bopd during the corresponding prior periods. This was higher due to the ramp-up of Rajasthan operations during the year. The gross gas production was 76 million standard cubic feet of gas per day (mmscfd) and 74 mmscfd during Q4 March 2012 and FY 2011-12, respectively, as compared to 77 mmscfd and 80 mmscfd during the corresponding prior periods.

The gross production from the Mangala field in the Rajasthan block was 124,081 bopd and 124,749 bopd during Q4 March 2012 and FY 2011-12, respectively. The Bhagyam field, the second largest discovery in the Rajasthan block, commenced production in January 2012, and has produced 13,247 bopd on a gross basis during the quarter.

With regard to its oil discovery at Nagayalanka-SE-1 well in Krishna-Godavari (KG) basin, which is the second discovery in the onshore KG-ONN-2003/1 block in the KG basin, Cairn India said that testing is underway and the discovery will be appraised further for establishing commerciality.

Gas utility stocks tumbled after Petroleum and Natural Gas Regulatory Board (PNGRB) slashed network tariff and compression charges for CNG in respect of the Delhi compressed gas distribution (CGD) network of Indraprastha Gas with effect from 1 April 2008. Indraprastha Gas tumbled 33.66% to Rs 229.80. The stock hit a 52-week low of Rs 170 today.

Indraprastha Gas (IGL) had proposed to the board a network tariff of Rs 104.05 per million British thermal units and compression charge of Rs 6.66 per kg of CNG. The board approved Rs 38.58 and Rs 2.75, respectively, bringing these down by 63% and 58.7%. PNGRB has also asked the company to make refunds since the 2008-09 financial year based on the revised changes, since that was the first financial year of operation for the company after the regulator came into being in October 2007. Indraprastha Gas is a joint venture of GAIL (India), BPCL and the state government of New Delhi to sell auto and cooking gas in New Delhi and adjacent areas.

GAIL (India) fell 1.82% to Rs 356.55. The stock hit a 52-week low of Rs 326.35 today.

Among other gas distribution stocks, Petronet LNG (down 2.91%), Gujarat State Petronet (down 7.5%) and Gujarat Gas Company (down 15.1%), tumbled.

Airline stocks surged. Jet Airways (up 2.85%), Kingfisher Airlines (up 7.49%), and SpiceJet (up 2.8%), edged higher.

IT pivotals were mixed. India's third largest software services exporter by revenues Wipro rose 1.5%. The company last week said rating agency Standard and Poor (S&P) has upgraded the long term corporate credit rating of Wipro from BBB (outlook positive) to BBB+ (outlook stable).

India's second largest software services exporter by revenue Infosys declined 1.63%. The company announces Q4 March 2012 results on Friday, 13 April 2012.

India's largest software services exporter by revenue Tata Consultancy Services (TCS) fell 0.51%. The company announces FY 2012 results on 23 April 2012

Auto stocks were mixed. India's largest commercial vehicle maker by sales Tata Motors rose 2.85%. Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles in March 2012 were 1,00,414 vehicles, a growth of 20% over 83,363 vehicles sold in March 2011. The company's monthly sales crossed 1,00,000 mark for the first time. The company's domestic sales of Tata commercial and passenger vehicles for March 2012 were 95,047 units, a 23% growth over 77,431 units sold in March last year.

Tata Motors clocked record sales of commercial vehicles and passenger vehicles in the year ended March 2012 (FY 2012).

India's largest utility vehicles and tractors maker by sales Mahindra & Mahindra (M&M) gained 1.35%. The company posted 25% increase in sales at 47,001 units in March 2012 over March 2011. This is the highest ever monthly sales number in the history of the company.

M&M's total tractor sales rose 10.2% to 2.35 lakh units in the year ended March 2012 (FY 2012) over the year ended March 2011 (FY 2011). Domestic tractor sales rose 10% to 2.21 lakh units in FY 2012 over FY 2011. For the month of March 2012, the total tractor sales stood at 17,405 units. Exports for the month registered an impressive growth of 33% at 1,485 units, M&M said. The company said it maintained its leadership position in the tractor industry in FY 2012.

India's largest car maker by sales Maruti Suzuki India shed 0.68%. The company said last week that its total sales rose 3.3% to a record 1,25,952 units in March 2012 over March 2011. The company's domestic sales rose 2.1% to a record 1,12,724 units in March 2012 over March 2011.

The country's largest two-wheeler maker Hero MotoCorp fell 0.72%. The company reported 2.41% increase in its sales at 5,28,290 units in March 2012 over March 2011.

The country's second largest two-wheeler maker Bajaj Auto declined 0.2%. The company's total sales rose 9% to 3.35 lakh units in March 2012 over March 2011. Total sales rose 14% to a record 43.49 lakh units in FY 2012 over FY 2011. The data was announced during market hours on Tuesday, 3 April 2012.

Domestic passenger car sales rose by 19.66% to 2,29,866 units in March 2012, from 1,92,105 units in the same month last year. Motorcycle sales in the country grew by 1.15% during the month to 8,50,619 units from 8,40,944 units in the same month last year. Total two-wheeler sales in March increased by 8.27% to 11,83,407 units from 10,93,004 units in the same month last year. Sales of commercial vehicles climbed by 14.82% to 90,415 units from 78,745 units in the year-ago period.

Total sales of vehicles across categories registered 10.11% growth to 16,08,216 units in March 2012, from 14,60,498 units in the same month last year.

India's largest engineering and construction firm, L&T, declined 0.75%, with the stock falling for the third straight day. L&T during trading hours on Monday said that L&T Construction, part of the L&T conglomerate, has commissioned India's largest solar photo voltaic based power plant (40 MWp) owned by Reliance Power at Dhursar village in Jaisalmer district of Rajasthan. As the largest engineering, procurement and construction (EPC) player in solar power, L&T Construction executed the solar power plant from concept (including detailed design) to commissioning in 129 days. With the commissioning of this plant, L&T Construction has installed 114 megawatts (MW) of utility scale solar PV power plants over the last fiscal -- a benchmark in India's solar EPC industry, L&T said.

L&T last week said its Electrical & Automation business has completed the share sale formalities for the acquisition of UK-based Thalest Group, which is engaged in offering integrated platform management system and integrated bridge system solutions for naval warships, mercantile marine ships, vessels and floating systems.

India's largest power equipment maker by order book Bharat Heavy Electricals (Bhel) dropped 2.89%, with the stock extending Monday's 3.71% losses. Bhel's provisional net profit rose 14.25% to Rs 6868 crore on 13.76% growth in turnover to Rs 49301 crore in the year ended March 2012 over the year ended March 2011. Bhel's order inflow fell 63.48% to Rs 22096 crore in the year ended March 2012 (FY 2012) over the year ended March 2011 (FY 2011). The company announced the provisional results during trading hours on 3 April 2012

Separately, Bhel said on that day it had withdrawn draft red herring prospectus (DRHP) filed with the capital market regulator, Securities and Exchange Board of India (Sebi), for the proposed follow-on public offer. The government was planning to divest 5% of its stake through a follow-on public offer in Bhel, which was approved by the Cabinet in 2011. The Government of India (GoI) owns 67.72% stake in Bhel.

FMCG stocks moved up on reports that monsoon may arrive on time this year. FMCG major Hindustan Unilever (HUL) rose 2.63%, with the stock gaining for the second straight day. HUL and entities of Piramal Realty (Ajay Piramal Group) have signed an agreement for assignment of HUL's leasehold rights of the land and building named "Gulita" situated at Worli Sea Face, Mumbai, for a transaction value of Rs 452.50 crore. The consideration includes both fixed and variable components, HUL said after trading hours on Wednesday, 4 April 2012. HUL will declare its year ended March 2012 results on 1 May 2012.

Among other FMCG stocks, Nestle India rose 4.45% to Rs 4783.25. The stock hit a record high of Rs 4839 today.

Cigarette maker ITC rose 2.19% to Rs 228.95. The stock hit a record high of Rs 229.45 today.

Report suggested that conditions indicate that the monsoon season will arrive in India by the first week of June 2012, which is considered on time. FMCG firms derive substantial sales from rural India. Good monsoon may boost farm incomes and consumer spending. India achieved a bumper farm output in 2011 largely because of sufficient monsoon rains.

Metal stocks fell for the second straight day as global hedge fund managers lowered net-long positions in a total of 18 US futures and options of different commodities by 2.8% to 1.1 million contracts in the week ended 3 April 2012. Bhushan Steel, Jindal Steel & Power, Sail, and Hindalco Industries shed by between 0.13% to 1.28%.

Sesa Goa dropped 1.77% after the company said during market hours today that sales of iron ore fell 21% to 5.2 million tonnes in Q4 March 2012 over Q4 March 2011 due to the continued mining ban in Karnataka and transport and logistics bottlenecks in Goa. The company said it is expanding existing roads and establishing road corridors in Goa to reduce these bottlenecks. Production of iron ore declined 11% to 4.9 million tonnes in Q4 March 2012 over Q4 March 2011.

Sterlite Industries fell 1.42% and its subsidiary Hindustan Zinc rose 1.87% after unveiling production and sales data for Q4 March 2012 and year ended March 2012 (FY 2012). Sterlite said during market hours today that the company clocked record production of lead, silver and power in Q4 March 2012.

Mined Zinc-Lead metal production was 223,000 tonnes in Q4, 7% higher than in Q3. For the full year, mined Zinc-Lead metal production was marginally lower at 830,000 tonnes, it said. Refined Zinc production was marginally lower at 190,000 tonnes in Q4, and 6% higher at 759,000 tonnes for the year. Lead production in Q4 was 110% higher at a record 37,000 tonnes primarily due to the ramp-up of the new 100 ktpa Dariba Lead smelter, which contributed 18,000 tonnes. Silver production was at a record 88 tonnes in Q4, 77% higher as a result of ramp-ups of the SK mine, the new 100 ktpa Dariba Lead smelter and the new Silver refinery. Silver production for the full year was 35% higher at 242 tonnes.

Power sales were 2,166 million units and 7,579 million units during Q4 and the full year, as compared with 1,040 million units and 2,680 million units during the corresponding prior periods, respectively, as the three new 600 MW units of the Jharsuguda 2,400 MW power plant became operational. Aluminium production at 245 ktpa BALCO-II smelter was 62,000 tonnes, in line with the corresponding prior quarter. Copper cathode production at the Tuticorin smelter was 80,000 tonnes in Q4, in line with the corresponding prior period. For the full year, copper cathode production was 326,000 tonnes.

India's largest steel maker by sales Tata Steel declined 1.37%. The company on Monday said sales from its Indian operations rose 3.3% to 1.77 million tonnes in Q4 March 2012 over Q4 March 2011. The Indian operations account for about a quarter of the group's total annual global capacity of about 28 million tonnes, which includes unit Corus, Europe's second-largest steelmaker. The company's crude steel production in India rose 2.6% to 1.82 million tonnes in Q4 March 2012 over Q4 March 2011. Sales from Indian operations rose 3.4% for the financial year ended March 2012 (FY 2012) to 6.63 million tonnes, helped by a 6% jump in sales of flat products, used in cars and consumer goods.

Reliance Communications (RCom) rose 3.26% after company said during market hours today that it is evaluating a potential public offering and listing in Singapore of its subsea telecommunications infrastructure network business through a Singapore business trust.

Bharti Airtel was flat. The company said on Tuesday it has launched wireless broadband services in Kolkata, becoming the first company to offer high-speed Internet services using fourth-generation technology in India. Bharti in 2010 paid about Rs 3314 crore ($648.5 million) to the government for bandwidth to offer wireless broadband services in four of the country's 22 telecom service areas. Last week, Bharti said it had contracted ZTE Corp. to supply and manage its networks on the new technology in the Kolkata service area.

Interest rate sensitive banking stocks were mixed. India's biggest private sector bank in terms of net profit, ICICI Bank, fell 0.64%. India's second largest bank by net profit HDFC Bank rose 0.3%, with the stock reversing initial losses.

India's largest bank by branch network State Bank of India rose 2.37%. The bank's Managing Director A Krishna Kumar on Saturday, 7 April 2012, said that the bank is aiming for growth of 20% to 25% in credit and deposit in financial year that began April 2012. The bank is expecting a major improvement in its asset quality for the recently ended fiscal year, he said.

Interest rate sensitive realty stocks snapped two-day losing streak. Unitech, HDIL, Godrej Properties, and D B Realty rose by between 0.53% to 2.45%. But, DLF fell 0.63%.

Jaiprakash Associates fell 0.3%. The company after market hours on Monday said that high court at Allahabad on 9 April 2012 has sanctioned the scheme of arrangement between Jaiprakash Associates (JAL) and Jaypee Cement Corporation (JCCL) whereby some units of JAL are hived off to JCCL in terms of the provisions of the said scheme.

Kingfisher Airlines clocked highest volume of 1.58 crore shares on BSE. Indraprastha Gas (1.47 crore shares), Dazzel Confindiv (1.41 crore shares), Avance Technologies (1.05 crore shares) and Cals Refineries (1.04 crore shares) were the other volume toppers in that order.

Indraprastha Gas clocked highest turnover of Rs 339.61 crore on BSE. SBI (Rs 95.27 crore), Petronet LNG (Rs 55.57 crore), Compton Greaves (Rs 45.54 crore) and ICICI Bank (Rs 41.59 crore) were the other turnover toppers in that order.

Foreign institutional investors (FIIs) sold shares worth Rs 269.43 crore on Monday, 9 April 2012, as per provisional data from the stock exchanges.

The next major trigger for the market is Q4 March 2012 and year ending March 2012 (FY 2012) earnings. Investors will focus on the guidance provided by the management for the year ending March 2013 (FY 2013) to gauge the earnings outlook.

IT bellwether Infosys announces Q4 March 2012 results on Friday, 13 April 2012. Lube oil major Castrol announces Q1 March 2012 results on 16 April 2012. Private sector bank HDFC Bank unveils FY 2012 results on 18 April 2012. HCL Tech unveils Q3 March 2012 results on the same day. ACC, Ambuja Cements and Hindustan Zinc unveil quarterly results on 19 April 2012. IndusInd Bank reports FY 2012 results on the same day. Cairn India reports FY 2012 results on 20 April 2012. TCS unveils FY 2012 results on 23 April 2012.

ICICI Bank unveils FY 2012 results on 27 April 2012. Axis Bank and Siemens announces quarterly results on the same day. Maruti Suzuki India unveils FY 2012 results on 28 April 2012. Titan Industries, Godrej Consumer Products, Exide Industries and Dabur India unveil FY 2012 results on 30 April 2012. FMCG giant Hindustan Lever unveils FY 2012 results on 1 May 2012. Shree Cement unveils FY 2012 results on 15 May 2012. Housing finance major HDFC announces FY 2012 results on 7 May 2012. Colgate Palmolive (India) unveils FY 2012 results on 30 May 2012.

On the macro front, data on industrial production for February 2012 and that on inflation for March 2012 could provide cues on the central bank's likely policy stance at the monetary policy review for 2012-13 due on 17 April 2012.

The government will unveil industrial production data for February 2012 on Thursday, 12 April 2012. Industrial production grew 6.8% in January 2012, lower than 7.5% growth recorded in January 2011.

On Friday, 13 April 2012, the government will unveil data on inflation based on the wholesale price index (WPI) for March 2012. The annual rate of inflation, based on monthly WPI, stood at 6.95% (provisional) for the month of February, 2012 (over February 2011) as compared to 6.55% (provisional) for the previous month and 9.54% during the corresponding month of the previous year.

European market edged lower on Tuesday as recent downbeat US jobs data and mixed trade figures from China spoiled investor sentiment. Key benchmark indices in UK, France and Germany were down by 0.76% to 1.55%.

Asian shares were mixed on Tuesday. Key benchmark indices in China, Singapore, and Taiwan rose by between 0.52% to 0.88%. Key benchmark indices in Japan, Indonesia, South Korea and Hong Kong fell by between 0.09% to 1.15%. Asian markets had declined on Monday after weak US job data.

China's imports grew less than expected in March, highlighting concerns of an internal slowdown that could point to weakening demand, customs-department data released on Tuesday showed. China posted a trade surplus of $5.35 billion in March, swinging from a deficit a month earlier, and lifting the nation's trade surplus for the first quarter to $670 million, according to General Administration of Customs data. Exports rose 8.9% from a year earlier to $165.66 billion, while imports rose 5.3% to $160.31 billion

China's gross-domestic-product growth data for Q1 March 2012 is due to be released on Friday, 13 April 2012.

The Bank of Japan (BOJ) on Tuesday left its key interest rate and stimulus programs unchanged besides refraining from announcing any new easing measures.

Trading in US index futures indicated that the Dow could gain 36 points at the opening bell on Tuesday, 10 April 2012. US stocks closed sharply lower Monday on disappointing job growth in March. US markets were closed Friday, giving investors a long weekend to brood over the disappointing report.