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Tuesday, April 30, 2013
ITC scales record high
Key benchmark indices edged higher on first trading session of the week as gains in European stocks and higher US index futures boosted sentiment. The barometer index, the S&P BSE Sensex, jumped 100.78 points or 0.52%, up 103.10 points from the day's low and off 41.44 points from the day's high. Index heavyweight and cigarette major ITC scaled record high. Index heavyweight Reliance Industries (RIL) was slightly lower. The market breadth, indicating the overall health of the market, was positive. The Sensex has risen 551.73 points or 2.93% in this month so far (till 29 April 2013). The Sensex has declined 39.21 points or 0.2% in calendar 2013 so far (till 29 April 2013). From a 52-week high of 20,203.66 on 29 January 2013, the Sensex has declined 816.16 points or 4.04%. From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 3,638.52 points or 23.1%. Coming back to today's trade, FMCG stocks rose after the India Meteorological Department (IMD) on Friday, 26 April 2013, forecast normal southwest monsoon seasonal rainfall during 2013. FMCG major Hindustan Unilever (HUL) jumped after reporting good Q4 results. IT stocks rose on renewed buying.
Bulls may ring the opening bell for Indian markets
The Indian stock markets are expected to open on a positive note as the global cues look supportive. SGX Nifty is trading 24.00 points higher. Events for the day: ABB will quote final dividend. Results: Dabur India, Marico, Petronet LNG and Godrej Consumer will announce their quarterly results today. Headlines for the day: Bosch posts 23% fall in net profit in Jan-Mar Sterlite smelter to stay shut for now after court change IOB hits 4-year low as bad loans rises sharply in Q4 MCX-SX to start 'SX40' derivatives from mid-May
Market may open higher on firm Asian stocks
The market may open higher on firm Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 24.50 points at the opening bell. Sterlite Industries' 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 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. The company announced its Q4 results before market hours today, 30 April 2013. Commenting on the company's 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." HSBC Securities and Capital Markets (India) (Manager to the open offer) said before market hours today, 30 April 2103 that, Unilever PLC along with Unilever N.V. in its capacity as person acting in concert is making a voluntary open offer to acquire 48.70 crore shares representing 22.52% of the total voting share capital from the public shareholders of Hindustan Unilever. The consideration of open offer will be payable in cash of Rs 600 per share. Unilever PLC and Unilever N.V. are the two parent companies of the Unilever Group of companies. Bosch after market hours on Monday, 29 April 2013, reported 22.65% fall in net profit to Rs 259.77 crore on 2.77% fall in total income to Rs 2296.75 crore in Q1 March 2013 over Q1 March 2012. Shree Cement after market hours on Monday, 29 April 2013 reported 139.84% jump in net profit to Rs 274.09 crore on 4.19% rise in total income to Rs 1514.41 crore in Q3 March 2013 over Q3 March 2012. Key benchmark indices edged higher on first trading session of the week on Monday, 29 April 2013 as gains in European stocks and higher US index futures boosted sentiment. The S&P BSE Sensex jumped 100.78 points or 0.52% to 19,387.50 on that day, its highest closing level since 25 April 2013. 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. 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 announces 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. 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. Asian stocks rose on Tuesday after U.S. 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 Key benchmark indices in Japan and Indonesia fell by 0.25% to 1.13%. Stock markets in mainland China were closed for a holiday. US stocks gained on Monday with S&P 500 index ending at an all-time high as growth-oriented stocks, including energy and technology, lead the way to the index's sixth rise in the past seven sessions. 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. 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.
Sunday, April 28, 2013
ICICI Bank drops on profit taking after good Q4 outcome
Key benchmark indices snapped four-day winning streak as weakness in European stocks hit investor sentiment adversely. The barometer index, the S&P BSE Sensex, lost 120.13 points or 0.62%, up close to 35 points from the day's low and off about 100 points from the day's high. The market breadth, indicating the overall health of the market, was negative. Index heavyweight Reliance Industries (RIL) dropped. Index heavyweight and cigarette major ITC was marginally lower. Indian stocks snapped four-day winning streak today, 25 April 2013. The Sensex had risen 675.69 points or 3.61% in four trading days to settle at 19406.85 on 25 April 2013, from its close of 18,731.16 on 17 April 2013. The Sensex has risen 450.95 points or 2.39% in this month so far (till 26 April 2013). The Sensex has declined 139.99 points or 0.72% in calendar 2013 so far (till 26 April 2013). From a 52-week high of 20,203.66 on 29 January 2013, the Sensex has declined 916.94 points or 4.53%. From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 3,537.74 points or 22.46%. Coming back to today's trade, ICICI Bank dropped on profit taking after the bank reported good Q4 results. Idea Cellular surged to hit 52-week high after strong Q4 results. Maruti Suzuki India jumped after the car major reported strong Q4 March results. LIC Housing Finance jumped on strong Q4 results. Castrol India gained after the company's board proposed reduction of capital. Realty stocks reversed intraday gains. Jindal Steel and Power (JSPL) slumped on weak Q4 results. The market edged lower in early trade. The Sensex hovered in negative terrain in morning trade. The market trimmed losses after hitting fresh intraday low in mid-morning trade. The Sensex continued to hover in negative terrain in early afternoon trade. Key benchmark indices hovered in red in afternoon trade. The Sensex weakened once again after paring intraday losses in mid-afternoon trade. The market trimmed losses after hitting fresh intraday low in late trade. The S&P BSE Sensex lost 120.13 points or 0.62% to settle at 19,286.72, its lowest closing level since 23 April 2013. The index declined 157.10 points at the day's low of 19,249.75 in late trade. The index fell 21.90 points at the day's high of 19,384.95 in early trade. The CNX Nifty was down 44.85 points or 0.76% to 5,871.45, its lowest closing level since 23 April 2013. The index hit a high of 5,907.05 in intraday trade. The index hit a low of 5,860.50 in intraday trade. The BSE Mid-Cap index fell 0.64% and underperformed the Sensex. The BSE Small-Cap index declined 0.54% and outperformed the Sensex. The BSE Auto index (up 0.84%), BSE Capital Goods index (up 0.29%), BSE Consumer Durables index (down 0.09%) and the BSE Teck index (down 0.52%), outperformed the Sensex. The BSE Realty index (down 2.2%), BSE Oil & Gas index (down 1.61%), BSE IT index (down 1.51%), BSE Bankex (down 1.39%), BSE Metal index (down 1.38%), BSE Power index (down 1.2%), BSE FMCG index (down 0.8%) and BSE HealthCare index (down 0.8%), underperformed the Sensex. The total turnover on BSE amounted to Rs 2253 crore, lower than Rs 2457.36 crore on Thursday, 25 April 2013. The market breadth, indicating the overall health of the market, was negative. On BSE, 1,340 shares declined and 931 shares rose. A total of 136 shares were unchanged. Among the 30-share Sensex pack, 19 stocks declined while rest of them rose. Index heavyweight Reliance Industries (RIL) fell 3.19% to Rs 793.15. The scrip hit high of Rs 824.85 and a low of Rs 789.80. The company's telecom arm -- Reliance Jio Infocomm -- and Bharti Airtel on Tuesday, 23 April 2013, signed an agreement for international data connectivity under which Bharti will provide Reliance Jio data capacity on its i2i submarine cable. i2i connects India to Singapore and is wholly owned by Bharti. Reliance Jio will utilize a dedicated fiber pair on i2i. The high speed link will enable Reliance Jio to extend its network and service reach to customers across Asia Pacific region. Earlier, 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 net 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. Shares of Bharti Airtel surged 4.06%, with the stock advancing for the second straight day. Index heavyweight and cigarette major ITC declined 0.2% to Rs 319.50 on profit booking. The scrip hit high of Rs 319.75 and a low of Rs 316.75. The stock had hit record high of Rs 323.85 in intraday trade on Thursday, 25 April 2013. West Bengal chief minister Mamata Banerjee on Wednesday, 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. Maruti Suzuki India surged 5.26% after the company reported strong Q4 results. The company said its net profit, excluding the effect of the merger of Suzuki Powertrain India (SPIL), jumped 79.8% to Rs 1147.50 crore on 9.4% rise in net sales to Rs 12566.60 crore in Q4 March 2013 over Q4 March 2012. Suzuki Powertrain India was merged with the company during the year ended 31 March 2013 (FY 2013) and the effect of the merger was given in the books of accounts in Q4 March 2013. Maruti announced the results during market hours today, 26 April 2013. Maruti said that the increase in net profit during the quarter was on account of higher sales of new models such as Ertiga, DZire and Swift, cost reduction and localization efforts and the benefit of a favourable exchange rate. Tata Motors gained 1.02%. Tata Motors' subsidiary Tata Technologies which is a leading global provider of engineering services and manufacturing enterprise IT, today, 26 April 2013, announced that it has signed definitive agreements for the acquisition of US-based Cambric Corporation, a premier engineering services company providing turnkey engineering services to its customers. The partnership will strengthen Tata Technologies' global footprint and domain capabilities to provide high-end engineering services to a diverse set of existing and new clients, especially in Europe. It will also provide Cambric access to the Asia Pacific region. Cambric is a US headquartered global engineering services company with a significant footprint in Eastern Europe. The company has three development centres in Romania and its customers include some of the world's marquee heavy machinery, agricultural, off-highway and automotive companies. Cambric provides system level engineering and design capabilities in engine, powertrain, chassis/structures, body, electrical and hydraulic systems to its global customers. Cambric is a privately held company with private equity investors holding majority stake in the company. Cambric had revenues of $25 million as of 31 December 2012 with majority of revenues coming from the construction and heavy equipment sector. Mahindra & Mahindra (M&M) declined 2.06%. M&M on 22 April 2013 said that the tool down strike at the company's Igatpuri plant, which started on 9 April 2013 has been withdrawn by the workers and production will soon be restored to normalcy. Considering the pipeline of stocks as also assembly of higher number of engines at other plant locations, there was no material impact on sales volume and going forward the company expects to build up the pipeline stock, M&M said. The Minister of Heavy Industries & Public Enterprises has requested the Ministry of Finance either to withdraw the additional 3% excise duty imposed on SUVs in the current Union Budget or to exempt all such vehicles classified as SUV that have an assessable value up to Rs 10 lakh. Giving this information in written reply to a question in the Rajya Sabha on 23 April 2013, the Minister of Heavy Industries & Public Enterprises Mr. Praful Patel said that the auto industry in the country is going through difficult times and the notification issued by the Finance Ministry for the levy of additional 3% excise duty will further impact the industry and will also discourage the consumers as the commonly used vehicles in rural and semi-urban area have come under this additional 3% excise duty. Shares of two-wheeler makers were mixed. Hero MotoCorp declined 1.42%. The company's net profit fell 4.86% to Rs 574.23 crore on 1.79% rise in total income to Rs 6250.26 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results after market hours today, 26 April 2013. Bajaj Auto jumped 3.35%. PSU OMCs announced cut in petrol price by Re 1 per litre, excluding value added tax (VAT) on 15 April 2013 because of fall in international oil prices. The recent cut in petrol price comes on the back of 85 paise a litre reduction in rates on 2 April 2013 and Rs 2 a litre decrease effected on 16 March 2013. Pharma stocks edged lower. Ranbaxy Laboratories gained declined 0.53%. Dr Reddy's Laboratories fell 0.13% to Rs 1990.05. The stock reversed gains after hitting record high of Rs 2008.30 in intraday trade today, 26 April 2013. Sun Pharmaceutical Industries fell 1.99% to Rs 955.85. The stock had scaled a record high of Rs 980.30 in intraday trade on Thursday, 25 April 2013. Lupin declined 0.5%. Lupin announced after market hours today, 26 April 2013 that its subsidiary Lupin Pharmaceuticals Inc. (collectively Lupin) has received final approval for its Pirmella 7/7/7 (Norethindrone and Ethinyl Estradiol Tablets USP, 0.5 mg/0.035 mg, 0.75 mg/0.035 mg and 1mg/0.035 mg) and Pirmella 1/35 Tablets (Norethindrone and Ethinyl Estradiol Tablets USP, 1 mg/0.035 mg) from the United States Food and Drugs Administration (US FDA) to market a generic version of Janssen Pharmaceuticals, Inc.'s Ortho-Novum 7/7/7 Tablets and Ortho-Novum 1/35 tablets. Lupin would commence shipping the product shortly. Lupin's Pirmella 7/7/7 and Pirmella 1/35 Tablets is indicated for the prevention of pregnancy in women who elect to use the product as a method of contraception. The combined annual sales of Ortho Novum 7/7/7 and Ortho Novum 1/35 Oral Contraceptive Tablets stands at $96.5 million (as per IMS MAT December 2012 data). Cement stocks edged lower. ACC, Ambuja Cement and UltraTech Cement shed by 0.7% to 1.5%. NTPC shed 0.23%. The company during market hours today, 26 April 2013, said that unit-III of 500 megawatt (MW) of Indira Gandhi Super Thermal Power Station at Jhajjar of Aravali Power Company, a joint venture of NTPC, Haryana Power Generation Corporation, Government of Haryana and Indraprastha Power Generation Company, Government of Delhi is declared on commercial operation with effect from 26 April 2013. With this the total commercial capacity of Indira Gandhi Super Thermal Power Station has become 1,500 MW and that of NTPC Group 39,684 MW. Tata Steel slipped 2.46%. Tata Steel said after market hours on Thursday, 25 April 2013, Abja Investment Co. Pte, a wholly owned subsidiary of the company incorporated in Singapore, has priced an issue of Singapore dollar 300 million 4.95% Senior Unsecured Notes due 2023. The notes are guaranteed by Tata Steel. Jindal Steel and Power (JSPL) slumped 4.77% on 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 Thursday, 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. JSPL said that it has maintained a double digit growth in its steel business despite a global economic slowdown and subdued steel market. The company with its relentless commitment to operational excellence achieved 100% utilization of steel and pelletisation capacity, JSPL said in a statement. Several new countries and customers were added to expand the market share of JSPL, the company said. New sources of raw material were established and made operational, it added. The company, which hitherto focused mainly on B to B business, made an impressive foray into the retail market for its standard products, JSPL said. The company said it has also reorganized its operations to bring more focus on individual business segments and business units. Specific attention has been paid to strengthen the internal process and systems, the company added. As the organizations steps into 2013-14, it is ready and well poised for an orbital jump to a much larger volume of activity as envisaged in the company's Vision 2020 plan, JSPL said in a statement. JSPL's number of customers increased to 2,758 in FY 2013 from 2,139 in FY 2012. JSPL said its pallet production has reached its full capacity. Exports by value surged 30% in FY 2013. The company said that it has achieved impressive gain in market share particularly in long products segment. The production of coking coal started in Mozambique. The company said it has achieved 100% liquid steel capacity. Production of steel rose 11% in FY 2013. Sales by value rose 12.2% in FY 2013. JSPL said that the company is all set to increase its steel capacity from 3.5 MTPA to 7 MTPA in 2013-14. The company also said it plans to double its power production capacity to 4,969 megawatts (MW) during 2013-14. JSPL's board of directors at a meeting held on Thursday, 25 April 2013, recommended dividend of Rs 1.60 per share for FY 2013. IT stocks declined. Wipro dropped 1.52%. 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 dropped 0.66%. 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. HCL Technologies slumped 4.84% to Rs 683.65. 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. Tata Consultancy Services (TCS) declined 2.42%. TCS posted good Q4 results last week. 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. Asian Paints rose 1.11% after the company after market hours on Thursday, 25 April 2013, said it has scheduled a board meeting on 9 May 2013 to consider sub-division of equity shares along with Q4 March 2013 and year ended 31 March 2013 (FY 2013) results. Siemens declined 2.73% on weak Q2 results. The company's net profit fell 89.94% to Rs 29.94 crore on 26.27% decline in total income to Rs 2968.03 crore in Q2 March 2013 over Q2 March 2012. The company said that the difference in net profit is primarily accounted for by a charge of Rs 90 crore in the Q2 March 2013 on account of revised estimates of revenues, costs and project related provisions as against credit during Q2 March 2012 of Rs 265.98 crore. The company's new orders rose 52% to Rs 2814.10 crore in Q2 March 2013 over Q2 March 2012. The company announced Q2 results during market hours today, 26 April 2013. Dr. Armin Bruck, Managing Director, Siemens said, "The results of the current quarter bear the impact of the prolonged slowdown in the economy. The significant improvement in new orders is positive. However, profits are under pressure due to continued delays by our customers in project completion leading to updates in project costs. Further, the volatility in commodity and foreign exchange rates which, when marked to market, have also resulted in additional costs. The company is continuing its measures to realise synergies from the acquisitions made in the last couple of years to optimise further its cost position to increase its competitiveness in these challenging times." Among the highlights of the second quarter, Siemens IC Sector won an order worth over Rs 350 crore to supply traction motors for Diesel Locomotive Works, Siemens Energy Sector won Rs 100 crore order from BSRM (the highest private sector-funded GIS project in Bangladesh) and Siemens Industry Sector won a significant order worth Rs 97 crore from Surana Industries for its pelletization plan. Siemens Healthcare Sector installed India's firth simultaneous PET-MRI at Indraprastha Apollo Hospital's PET Suite, which features PET-MRI and ultra HD PET CT under one roof. During Q2 March 2013, the company completed the amalgamation of Winergy Drive Systems India. Bank stocks fell on profit booking after recent gains triggered by expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost economic growth at a time when wholesale price inflation is slowing. Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI) declined 1.78%. Among other PSU bank stocks, Canara Bank, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank shed by 1.21% to 3.99%. Axis Bank fell 1.11% on profit booking after Thursday's 4.13% rally triggered by strong Q4 results. The bank's net profit rose 21.75% to Rs 1555.15 crore on 18.39% growth in total income to Rs 9054.72 crore in Q4 March 2013 over Q4 March 2012. The bank announced Q4 results on Wednesday, 24 April 2013. Axis Bank said that the bank is well capitalised with equity capital of Rs 5537 crore raised in Q4 March 2013. The bank said that it is well positioned for growth with a healthy capital adequacy ratio (CAR) of 17%, and Tier-I CAR at 12.23% as on 31 March 2013. HDFC Bank declined 0.03% to Rs 689.15, with the stock declining for the third straight day on profit booking after the private sector bank reported strong Q4 results during trading hours on Tuesday, 23 April 2013. The stock had witnessed pre-result rally. The stock jumped 12.68% to settle at Rs 699.25 on BSE on Monday, 22 April 2013, from a recent low of Rs 620.55 on 9 April 2013. HDFC Bank's net profit rose 30.06% to Rs 1889.84 crore on 21.08% increase in total income to Rs 11127.54 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 30.18% to Rs 6726.28 crore on 24.54% increase in total income to Rs 41917.49 crore in the year ended March 2013 over the year ended March 2012. ICICI Bank dropped 2.98% after Q4 results. The stock had witnessed pre-result rally. The stock had jumped 19.07% to settle at Rs 1,177.45 on Thursday, 25 April 2013, from a recent low of Rs 988.80 on 8 April 2013. The bank's net profit rose 21% to Rs 2304 crore on 10.26% rise in total income to Rs 12573.52 crore in Q4 March 2013 over Q4 March 2012. The bank announced Q4 results during market hours today, 26 April 2013. The bank's gross non-performing asset ratio declined to 2.68% as on 31 March 2013 from 3.04% as on 31 March 2012. The bank's net non-performing asset ratio was 0.64% as on 31 March 2013 compared to 0.62% as on 31 March 2012. Net non-performing assets as on 31 March 2013 were Rs 2234 crore compared to Rs 2185 crore as on 31 December 2012 and Rs 1894 crore as on 31 March 2012. The bank's provision coverage ratio computed in accordance with the RBI guidelines was 76.8% as on 31 March 2013. Net loans to companies whose facilities have been restructured were Rs 5315 crore as on 31 March 2013 compared to Rs 4562 crore as on 31 December 2012 and Rs 4554 crore as on 31 March 2012. Net interest income increased 22% to Rs 3803 crore in Q4 March 2013 from Rs 3105 crore in Q4 March 2012. The cost-to-income ratio reduced to 40% in Q4 March 2013 from 41.6% in Q4 March 2012. Provisions were at Rs 460 crore in Q4 March 2013 compared to Rs 469 crore in Q4 March 2012. Total advances increased by 14% year-on-year to Rs 290249 crore as on 31 March 2013 from Rs 253728 crore as on 31 March 2012. The year-on-year growth in domestic advances was 18%. As on 31 March 2013, savings account deposits were Rs 85651 crore and current account deposits were Rs 36926 crore. During Q4 March 2013, savings account deposits increased by Rs 4188 crore and current account deposits increased by Rs 1252 crore. The bank's current and savings account (CASA) ratio improved to 41.9% as on 31 March 2013 compared to 40.9% as on 31 December 2012. The average CASA ratio improved to 38.1% during Q4 March 2013 compared to 37.4% in Q3 December 2012. The bank's capital adequacy as on 31 March 2013 as per Reserve Bank of India's guidelines on Basel II norms was 18.74% and Tier-1 capital adequacy was 12.80%, well above RBI's requirement of total capital adequacy of 9.0% and Tier-1 capital adequacy of 6%. ICICI Bank's board of directors has recommended a dividend of Rs 20 per share for the year ended 31 March 2013. IDBI Bank rose 0.85%, with the stock reversing intraday losses. The bank said after market hours on Thursday, 25 April 2013, that its net profit fell 28.15% to Rs 554 crore on 9.87% growth in total income to Rs 7544 crore in Q4 March 2013 over Q4 March 2012. IDBI Bank's operating profit rose 32.39% to Rs 1594 crore in Q4 March 2013 over Q4 March 2012. Net interest income (NII) grew by 18.92% to Rs 1440 crore in Q4 March 2013 over Q4 March 2012. Fee based income rose 34% to Rs 875 crore in Q4 March 2013 over Q4 March 2012. Total business (deposits and advances) as of 31 March 2013 stood at Rs 423423 crore as against Rs 391065 crore as of 31 March 2012, registering a growth of 8.27%. Deposits increased to Rs 227116 crore at end-March 2013 from Rs 210493 crore at end-March 2012, with a growth of 7.9%. Advances increased by 8.71% to Rs 196306 crore at end March 2013 from Rs 180572 crore as at end March 2012. As of 31 March 2013, aggregate assets stood at Rs 322769 crore as against Rs 290316 crore as on 31 March 2012, registering a growth of 11.18% LIC Housing Finance surged 6.31% on strong Q4 results. The company's net profit rose 24.66% to Rs 316.15 crore on 22.83% growth in total income to Rs 2074.74 crore in Q4 March 2013 over Q4 March 2012. Idea Cellular surged 5.2% to Rs 123.35 on strong Q4 results. The stock hit 52-week high of Rs 128.70 in intraday trade today, 26 April 2013. The company said after market hours on Thursday, 25 April 2013, that consolidated net profit rose 28.95% to Rs 308.18 crore on 12.88% rise in total income to Rs 6061.38 crore in Q4 March 2013 over Q4 March 2012. On standalone basis, the net profit rose 33.78% to Rs 254.16 crore on 12.67% growth in total income to Rs 5965.46 crore in Q4 March 2013 over Q4 March 2012. The company said that it has returned strongly to its upwards revenue trajectory, with 8.6% sequential quarterly growth in Q4 March 2013 on the back of 5% QoQ growth in Q3 December 2012, reaffirming the increasing consumer preference for brand Idea. The company said it maintains its enviable track record of being the 'fastest growing large Indian mobile operator' with gross revenue of Rs 22594.90 crore for the year ended 31 March 2013 (FY 2013), an annual growth of 14.8%. The high revenue growth is led by sharp expansion of Voice Minutes at 8.5% to 143.4 billion, on sequential quarterly basis, indicating consumer demand for mobile telephony is robust, Idea said in a statement. The VLR growth is back with the company clocking 8.3 million incremental quarterly growth and delivering over 40% of industry incremental VLR in first 11 months of FY 2013 (as per TRAI February 2013 report). Idea now serves 121.6 million quality customers. Contrary to expectations, the ARPM (Average Realised Rate per Minute) was nearly flat at 41.2p against 41.1p in Q3 December 2012. While the challenges on Voice ARPM continue, the company improved 'Non Voice Revenue' to 15.2% (14.6% in Q3) led by data growth. The Q4 March 2013 had the highest data adoption by Idea customers with 4.5 million sequential quarter addition, as the EoP base of data users grew to 26.2 million, now contributing 6.6% to service revenue, Idea said. The data volume expanded by 13.8% to 11.4 billion MB (10 billion MB in Q3) and data realised rate improved by 9.5% to 33.9p per MB in Q4 (31p in Q3). The active 3G subscriber base for the company stands at 5.1 million, helping overall 2G+3G data revenue growth on sequential quarterly basis by 24.6% and data ARPU reaching to Rs 55. The overall exponential revenue growth has translated into EBITDA of Rs 1503.70 crore, margin improvement by 1.2% to 24.7%, inspite of accounting for one-off regulatory charge of Rs 76 crore reflecting in 'License and WPC Charges'. The EBITDA increased 23.8% to Rs 5371.40 crore in FY 2013 over FY 2012. Idea Cellular said that that company generated healthy cash profit of Rs 4696.80 crore in FY 2013, registering a growth of 30.2% over FY 2012. After 16 years of start of operations, the board of Idea has recommended its maiden dividend of 3%. The company said that it continues to strengthen its competitive standing by investing in long term value creators -- the company launched 2,432 GSM sites and 1,595 3G sites, expanded optical fibre network to 74,000 km and strengthened its presence in NLD, ILD, ISP, Data Services and Smartphone Device business. Idea Cellular said that the company is the biggest net gainer nationally in the Mobile Number Portability program, a strong indicator of the popular appeal of Idea mobile services. Castrol India rose 3.43%. Castrol India's board of directors at a meeting held today, 26 April 2013, proposed a scheme of reduction of the company's share capital u/s 100 of the Companies Act, 1956 i.e. to reduce the face value of the company's equity shares from Rs 10 per share to Rs 5 per share and return the same to the shareholders. Castrol India's net profit rose 1.13% to Rs 124.30 crore on 1.14% decline in total income to Rs 805.90 crore in Q1 March 2013 over Q1 March 2012. Realty stocks reversed intraday gains. DLF, HDIL, D B Realty and Unitech dropped by 1.53% to 6.41%. The focus of the market is on Q4 results. 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 and Jaiprakash Associates unveil Q4 results on 4 May 2013. HDFC unveils Q4 results on 8 May 2013. Ranbaxy announces Q1 March 2013 results on the same day. Asian Paints announces 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 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. In 2013-14, the headline WPI inflation is expected to be around 6%, compared with provisional figure at 5.96% at the end of 2012-13, the PMEAC said. The net FDI inflow is expected at $24 billion in 2013-14 from an estimated $18 billion in 2012-13. In contrast, FII inflows are seen sliding to $18 billion in 2013-14 from an estimated $24 billion in 2012-13, the PMEAC said. 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. 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. 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. The government has lined up a number of key bills for consideration and passing during the ongoing 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. European stock markets edged lower on Friday with investors staying cautious ahead of a closely watched report on US economic growth in the first quarter. Key benchmark indices in UK, France and Germany were down by 0.4% to 0.94%. The European Central Bank's (ECB) Governing Council meets in Bratislava on 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% amid the euro zone's worsening economic outlook and subdued inflation. Most Asian stocks edged lower on Friday. Key benchmark indices in China, Indonesia, Japan and South Korea fell by 0.3% to 0.97%. Key benchmark indices in Hong Kong, and Singapore rose by 0.33% to 0.65%. Taiwan's Taiwan Weighted was flat. The Bank of Japan held off on any new policy moves after a monetary policy meeting today, 26 April 2013, in the wake of major new easing initiatives at its previous meeting. In an unusually terse, two-sentence statement, the Japanese central bank only said that it "will conduct money-market operations so that the monetary base will increase at an annual pace of about 60 [trillion]-70 trillion yen," or roughly $610 billion to $710 billion, unchanged from its previous target. Trading in US index futures indicated that the Dow could fall 35 points at the opening bell on Friday, 26 April 2013. US stocks edged higher on Thursday, buoyed by corporate-earnings reports and data showing a sharp drop in weekly jobless claims.
Thursday, April 18, 2013
Interest rate sensitive stocks lead rally
Key benchmark indices surged as gains in European markets boosted sentiment. The market sentiment was also boosted by data showing that foreign funds were net buyers of Indian stocks on Wednesday, 17 April 2013. The barometer index, the S&P BSE Sensex, settled at over two-week high above the psychological 19,000 mark in late trade. The CNX Nifty attained its highest closing level in more than four weeks. The Sensex jumped 285.30 points or 1.52%, up 324.85 points from the day's low and off 42.34 points from the day's high. Index heavyweight Reliance Industries (RIL) edged higher. Another index heavyweight and cigarette major ITC pared gains in volatile trade after striking record high. The market breadth, indicating the overall health of the market, was positive. Expect the BSE IT index, all the other sectoral indices on BSE rose. The Sensex has risen 180.69 points or 0.96% in this month so far (till 18 April 2013). The Sensex has declined 410.25 points or 2.11% in calendar 2013 so far (till 18 April 2013). From a 52-week high of 20,203.66 on 29 January 2013, the Sensex has declined 1,187.20 points or 5.88%. From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 3,267.48 points or 20.75%. Coming back to today's trade, interest rate sensitive banking, auto and realty stocks edged higher as slowing wholesale price inflation has raised rate cut expectations. IndusInd Bank scaled a record high after the private sector bank reported strong Q4 March 2013 results. FMCG stocks gained on reports of likely normal monsoon this year. Capital goods stocks gained on renewed buying. Aviation stocks were in demand. Telecom stocks were mostly higher. Metal stocks were mixed. IT stocks fell on firm rupee. IT major TCS slipped after reporting Q4 earnings after trading hours on Wednesday, 17 April 2013. Another IT major Wipro dropped ahead of its Q4 results tomorrow, 19 April 2013. Shares of the gold jewellery retailer Titan Industries surged on expectations that the recent steep fall in gold price will boost sales of gold jewellery. Lupin reversed direction after striking a record high. Key benchmark indices turned positive after a negative start triggered by mostly lower Asian stocks. The market pared gains in morning trade. Key benchmark indices regained strength to scale intraday high in mid-morning trade. The market held firm in early afternoon trade. Firmness prevailed on the bourses in mid-afternoon trade. Key benchmark indices struck extended gains to strike fresh intraday high in late trade. The market sentiment was boosted by data showing that foreign funds were net buyers of Indian stocks on Wednesday, 17 April 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 234.70 crore from the secondary equity market on Wednesday, 17 April 2013, as per data from Securities & Exchange Board of India (Sebi). The S&P BSE Sensex jumped 285.30 points or 1.52% to 19,016.46, its highest closing level since 2 April 2013. The index surged 327.64 points at the day's high of 19,058.80 in late trade. The index fell 39.55 points at the day's low of 18,691.61 in early trade. The CNX Nifty was up 94.40 points or 1.66% to 5,783.10, its highest closing level since 18 March 2013. The index hit a high of 5,794.35 in intraday trade. The index hit a low of 5,681.85 in intraday trade. The market breadth, indicating the overall health of the market, was positive. On BSE, 1,342 shares advanced and 1,095 shares declined. A total of 137 shares were unchanged. The total turnover on BSE amounted to Rs 2135 crore, lower than Rs 2277 crore on Wednesday, 17 April 2013. The BSE Mid-Cap index rose 0.74% and the BSE Small-Cap index gained 0.59%. Both these indices underperformed the Sensex. The BSE Auto index (up 2.26%), BSE Capital Goods index (up 2.63%), BSE Bankex (up 2.49%), BSE Realty index (up 1.86%), BSE Consumer Durables index (up 2.78%), outperformed the Sensex. The BSE PSU index (up 1.23%), the BSE HealthCare index (up 0.14%), the BSE Metal index (up 0.09%), BSE FMCG index (up 0.41%), the BSE Oil & Gas index (up 1.34%), BSE Teck index (up 0.5%), BSE Power index (up 1%) and BSE IT index (down 0.31%) underperformed the Sensex. Among the 30-share Sensex pack, 24 stocks advanced while rest of them declined. Index heavyweight Reliance Industries (RIL) rose 0.9% to Rs 781.05 in volatile trade. The scrip hit high of Rs 785.20 and a low of Rs 773. The stock had dropped 3.77% on Wednesday, 17 April 2013, after the company reported muted sequential growth in net profit in Q4 March 2013 after trading hours on Tuesday, 16 April 2013. 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. 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). RIL's gross refining margin (GRM) edged up to $10.1 a barrel in Q4 March 2013 from $9.6 a barrel in Q3 December 2012 and $7.6 a barrel in Q4 March 2012. The GRM edged up to $9.2 a barrel in FY 2013 from $8.6 a barrel in FY 2012. RIL said its retail business achieved cash breakeven with earnings before depreciation, finance cost and tax expense of Rs 78 crore in FY 2013. Turnover of the retail business jumped 42% to Rs 10800 crore in FY 2013 over FY 2012. FMCG stocks gained on reports of likely normal monsoon this year. FMCG companies derive a substantial revenue from rural markets. Britannia Industries (up 1.11%), Colgate-Palmolive (India) (up 2.67%), Dabur India (up 1.65%), Godrej Consumer Products (up 1.08%), Hindustan Unilever (up 0.12%) and Tata Global Beverages (up 1.06%) gained. Index heavyweight and cigarette major ITC rose 0.27% to Rs 314 in volatile trade. The stock hit record high of Rs 316.35 in intraday trade today, 18 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. Auto stocks edged higher as slowing wholesale price inflation has raised rate cut expectations. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing. Mahindra & Mahindra (M&M) surged 3.12%. M&M on Tuesday, 16 April 2013, said Mahindra USA (MUSA), a part of Mahindra Group, closed the fiscal year 2013 with record billings and record retail sales, gaining over 2% points, delivering its highest ever market share in the US. Tata Motors advanced 3.78%. The company on 12 April 2013 said that its global wholesales, including Jaguar Land Rover were 116,521 units in March 2013. Cumulative wholesales for the year ended 31 March 2013 (FY 2013) were 1,196,416 units. Tata Motors' British luxury car unit Jaguar Land Rover (JLR) on 10 April 2013 said its global sales rose 16% to a record 53,772 units in March 2013 over March 2012. JLR's global sales rose 17% to a record 115,504 units in Q1 March 2013 over Q1 March 2012. JLR said the Jaguar brand demonstrated strong growth with sales of 9,856 in March up 28% and sales for the quarter of 20,210 up 31%. Land Rover, meanwhile, delivered the best single month and quarter in its 65 year history with March sales of 43,916, up 14% and quarter one sales of 95,294, up 15% versus 2012, JLR said. Small-car maker Maruti Suzuki India rose 1.74%. Shares of two-wheeler makers rose after PSU OMCs reduced petrol prices by Rs 1 per litre on Monday. Hero MotoCorp (up 0.3%), Bajaj Auto (up 0.54%) and TVS Motor Company (up 0.14%) gained. Bank stocks extended recent gains triggered by expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost growth amid slowing wholesale price inflation. State Bank of India (SBI) edged higher after Chairman Pradip Chaudhuri on Tuesday, 16 April 2013, said that SBI is looking at merging one of its five banking subsidiaries with it in the current financial year that started on 1 April 2013. The stock was up 2.16%. Among other PSU bank stocks, Canara Bank (up 1.77%), Union Bank of India (up 2.33%), Bank of India (up 5.04%), Bank of Baroda (up 1.49%) and Punjab National Bank (up 2.19%) gained. ICICI Bank advanced 2.03%. ICICI Bank announces Q4 results on 26 April 2013. HDFC Bank rose 2.17%. HDFC Bank announces Q4 results on 23 April 2013. IndusInd Bank jumped 7.97% to Rs 453.25 after striking a record high of Rs 455.70 in intraday trade today, 18 April 2013. IndusInd Bank's net profit rose 37.61% to Rs 307.40 crore on 23.55% increase in total income to Rs 2190.66 crore in Q4 March 2013 over Q4 March 2012. The result was announced during trading hours today, 18 April 2013. IndusInd Bank's net profit rose 32.22% to Rs 1061.18 crore on 31% increase in total income to Rs 8346.19 crore in the year ended March 2013 over the year ended March 2012. The bank's ratio of net non-performing assets to net advances stood at 0.31% as on 31 March 2013, compared with 0.30% as on 31 December 2012 and 0.27% as on 31 March 2012. The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 1.03% as on 31 March 2013, compared with 0.99% as on 31 December 2012 and 0.98% as on 31 March 2012. Provisions and contingencies jumped 77.97% to Rs 81.85 crore in Q4 March 2013 over Q4 March 2012. The bank's Capital Adequacy Ratio (CAR) as per Basel II norms stood at 15.36% as on 31 March 2013, compared with 15.01% as on 31 December 2012 and 13.85% as on 31 March 2012. Yes Bank rose 2.19%, with the stock extending Wednesday's gain triggered by the bank declaring strong Q4 results during market hours on Wednesday, 17 April 2013. The bank's net profit rose 33.24% to Rs 362.15 crore on 30% rise in total income to Rs 2667.03 crore in Q4 March 2013 over Q4 March 2012. Yes Bank also said that the board of directors has empowered the Capital Raising Committee, a sub Committee of the board, to raise funds by way of issuance of equity capital up to $500 million in one or more tranches on such terms and conditions as it may deem fit. The issuance may be by way of Qualified Institutions Placement (QIP) or any other international offering like Global Depository Receipts (GDRs)/American Depository Receipts (ADRs), Ordinary Shares through (Depository Receipt Mechanism) Scheme 1993, Follow on Public Issue or by any other appropriate mode as decided by the Capital Raising Committee. CRISIL lost 2.98% as the company's consolidated net profit fell 13% to Rs 49.57 crore on 11% growth in income from operations to Rs 255 crore in Q1 March 2013 over Q1 March 2012. In the corresponding quarter of the previous year, there was a onetime revenue impact of Rs 7.30 crore on account of certain price renegotiations, CRISIL said. The operating environment in India, the US and Europe, the principal markets for CRISIL, remained challenging during the quarter. While India witnessed muted economic growth with a weak overall investment climate, there was continued pressure on the global banking industry. Despite the challenging environment, growth in CRISIL Global Research & Analytics (GR&A) business was driven by the acquisition of Coalition and new client additions, CRISIL said. In India, revenue growth was driven by SME Ratings and a pick-up in the securitisation transactions towards the end of the quarter, the rating agency said. The CRISIL Research business, too, has been impacted by the slowdown in the economy and volatility in the capital markets, CRISIL said. During the quarter, CRISIL Research won a prestigious mandate from the National Pension Systems (NPS) Trust, set up under Pension Fund Regulatory and Development Authority (PFRDA), to review the performance of the pension fund managers under the NPS. The uncertain investment climate and delayed decisionmaking had a bearing on the infrastructure advisory and risk solutions businesses, CRISIL said. However, the company won several prestigious assignments in the urban infrastructure space, cementing its position as the leading provider of advisory services in the urban sector in India, the company said. IT stocks fell on firm rupee. A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports. The rupee was trading at 53.05/06, higher than its previous close of 54.20/21. IT major TCS was down 1.04% to Rs 1,444. The stock hit high of Rs 1,485 and low of Rs 1,429. The company after trading hours on Wednesday, 17 April 2013, said 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. The company clocked volume growth of 4.4% on sequential basis in the fourth quarter. 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. TCS said there was balanced growth across markets and industries in FY 2013. All industry verticals grew in double digits in FY 2013, it said. TCS' full service capabilities continue to be leveraged by customers with new service lines growing at a fast pace. The infrastructure services segment grew 47%, Business Process Outsourcing grew 46% while Assurance Services, Enterprise Solutions and Global Consulting grew by 33%, 25% and 52% respectively, TCS said. Commenting on the FY 2013 results, Mr. N. Chandrasekaran, CEO and MD, TCS, said: "TCS has delivered a year of strong growth with all markets and industry segments growing in double digits. Our ability to co-create with customers, remain relevant to their business and our investments in digital technologies are delivering tangible value as customers optimize, transform and growth." With regard to the outlook for the current year ending 31 March 2014 (FY 2014), Mr. Chandrasekaran said: "We remain confident that 2013-14 will bring greater opportunities as technology plays an increasing role in reimagining business globally. We continue to identify new growth engines and are investing ahead of the curve in products, platforms and intellectual property that is of great relevance to our customers and their business growth. As an industry leader, we remain focused on sustaining our momentum." Rajesh Gopinathan, Chief Financial Officer, TCS, said: "Our growth has been well-rounded in FY 2013 and we have endeavored to maintain our profitability despite stiff headwinds and increased volatility through the year. We continue to ensure cost discipline at an operational level while supporting diversified business growth." Wipro dropped 2.44%. The company announces Q4 results tomorrow, 19 April 2013. The Securities & Exchange Board of India (Sebi) has exempted Wipro from a rule that prevents promoters of companies from selling their stakes within 12 weeks of another deal. Wipro after market hours on 15 April 2013 said that the Securities & Exchange Board of India (Sebi) has accepted the company's request and permitted the promoter and promoter group (including the entities that carried out the inter-se transfer) to divest through the offer for sale (OFS) route during the twelve weeks cool off period. Earlier, Wipro had on 25 March 2013 applied to SEBI seeking a specific relaxation exemption from the twelve week cooling off period for carrying out OFS through the stock exchange mechanism following the inter-se transfer amongst the promoter and promoter group entities on 15 March 2013. HCL Technologies fell 2.02% to Rs 736. The stock had hit a record high of Rs 809 in intraday trade on Wednesday, 17 April 2013. The company before trading hours on Wednesday, 17 April 2013, said its 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. Earnings before interest, taxation, deprecation and amortization (EBITDA) rose 1.6% to Rs 1439.30 crore in Q3 March 2013 over Q2 December 2012. The EBITDA margin declined to 22.4% in Q3 March 2013 from 22.6% in Q2 December 2012. Infosys rose 0.58%. The company on Tuesday, 16 April 2013, said it has signed a major new strategic partnership with Queen's University Belfast aimed at combating the global cyber security threat. The collaboration brings together Infosys with Queen's University Belfast's Centre for Secure Information Technologies (CSIT), one of UK's largest and most prestigious university cyber security research labs, and Invest Northern Ireland, the Northern Ireland government's regional business development agency. 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. Capital goods stocks gained on renewed buying. ABB (up 0.38%), Bhel (up 1.75%), Bharat Electronics (up 0.63%), Siemens (up 3.04%) and Thermax (up 1.2%) edged higher. L&T advanced 3.69%. The company on 12 April 2013 said that it would acquire 50% stake in L&T-Komatsu (LTK) held by Komatsu Asia & Pacific Pte, a wholly owned subsidiary of Komatsu, Japan. With this buy-out, LTK will become a wholly owned subsidiary of L&T. LTK will continue to manufacture construction equipment and hydraulic components. Komatsu will be responsible for the production of Komatsu equipment including hydraulic excavators, L&T said in a statement. As a result of this transaction, the companies expect to able to provide premium products and services to customers, and maintain leadership position in construction & mining equipments business, offering state-of-the-art machines with highest level of quality and latest designs from Komatsu, L&T said. L&T will continue to be responsible for marketing, sales and product support in India for the Komatsu range of products, assuring customers of the highest level of Support, L&T said in a statement. Realty stocks gained as slowing wholesale price inflation has raised rate cut expectations. Purchases of both residential and commercial property are largely driven by finance. DLF (up 1.46%), D B Realty (up 2.11%), HDIL (up 3.58%), Unitech (up 2.4%), and Sobha Developers (up 0.87%) gained. Metal stocks were mixed. Sterlite Industries (India) rose 0.17% to Rs 88.70. The stock had hit a 52-week low of Rs 83.15 in intraday trade on Tuesday, 16 April 2013. Tata Steel rose 0.61% to Rs 299. The stock had struck a 52-week low of Rs 292.70 in intraday trade Tuesday, 16 April 2013. Hindustan Zinc was unchanged at Rs 109.90. The stock had hit a 52-week low of Rs 106.90 in intraday trade on Wednesday, 17 April 2013 Jindal Steel & Power shed 0.16%. Jindal Steel & Power declares its Q4 results on 25 April 2013. Sail fell 1.69% to Rs 61.10. The stock had hit a 52-week low of Rs 56.40 in intraday trade on Tuesday, 16 April 2013. JSW Steel declined 2.17%. JSW Steel's crude steel production rose 2% to 2.109 million tonne in Q4 March 2013 over Q4 March 2012. The production of flat rolled products rose 11% to 1.65 million tonne in Q4 March 2013 over Q4 March 2012. The production of long rolled products fell 6% to 0.438 million tonne in Q4 March 2013 over Q4 March 2012. JSW Steel reported crude steel production data for Q4 March 2013 and the year ended 31 March 2013 (FY 2013) on 8 April 2013. The crude steel production rose 15% to 8.518 million tonne in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The production of flat rolled products rose 17% to 6.282 million tonne in FY 2013 over FY 2012. The production of long rolled products rose 18% to 1.801 million tonne in FY 2013 over FY 2012. JSW Steel said in spite of severe constraints in availability and quality of iron ore in the state of Karnataka, the company could operate its Vijayanagar plant at about 80% capacity due to its unique ability of using low grade iron ore through beneficiation process. Iron ore miners saw mixed trend. Sesa Goa rose 0.3%. NMDC dropped 2.68%. The Supreme Court today, 18 April 2013, allowed nine more iron ore mines to resume production in Karnataka. The court also cancelled mining leases for all illegal mines in the state. The ruling is the latest step back from a total ban on mining in the state that was put in force in 2011, because of environmental concerns. In September 2012, the Supreme Court allowed 18 mines in Karnataka to resume operations, while state-run miner NMDC was cleared to produce one million tonnes a month in August 2011. Jindal Stainless jumped 12.88%. Jindal Stainless on 10 April 2013 said that it has signed a Memorandum of Understanding (MoU) with POSCO to mutually cooperate with each other for long-term joint business opportunities. The said MOU is applicable for 3 years and can be extended by mutual agreement. The MoU calls for long term supply of 200 series stainless steel products of the company to POSCO or its subsidiaries. The two companies will also review joint establishment and exploration for nickel smelter process in Indonesia. The two companies will also review joint co-operation in Jindal Stainless' Odisha project. The two companies have also mutually agreed to co-operate on reviewing overseas joint projects including but not limited to the establishment of service centers and cold rolling mills. Titan Industries jumped 5.28% to Rs 259. Shares of the gold jewellery retailer surged on expectations that the recent steep fall in gold price will boost sales of gold jewellery. As per reports, jewellery retailers have witnessed brisk sales this week as gold prices declined sharply in just a few days after 12 years of sustained upside. Lupin shed 0.45% to Rs 670.25, with the stock reversing direction after striking a record high of Rs 685.70 in intraday trade today, 18 April 2013. The company said at the fag end of the trading session on Wednesday, 17 April 2013, that the US Court of Appeals for the Federal Circuit has ruled in its favor regarding its appeal of a previous judgment by a lower court for Bayer AG's Yaz oral contraceptive product. Lupin is currently seeking approval from the USFDA for its generic and is working out its commercialization plan. Lupin's Generic Drospirenone and Ethinyl Estradiol Tablets (3 mg + 0.02 mg) of Bayer AG's Yaz tablets are indicated for prevention of pregnancy, to treat the symptoms of premenstrual dysphoric disorder (PMDD) for women and to treat moderate acne for women at least 14 years old only if the patient desires an oral contraceptive for birth control. The total sales for branded and generic sales for the product stood at $361 million (IMS MAT Dec 2012). Jet Airways (India) surged 2.89% on reports the stake sale deal of Jet Airways and Abu Dhabi-based Etihad Airways could be finalised in a month. Reports suggested that the deal would inject much-needed funds into Jet Airways and help Etihad expand its reach into the vast Indian aviation market. Etihad has been in talks for a strategic equity equity stake in Jet Airways ever since India relaxed ownership rules and allowed foreign airlines to buy up to 49% in local carriers. Among other aviation shares, SpiceJet (up 2.86%) and Kingfisher Airlines (up 4.93%) gained. Telecom stocks were mostly higher. Reliance Communications (up 5.24%), Idea Cellular (up 1.75%), and Bharti Airtel (up 4.49%) gained. Tata Teleservices (Maharashtra) (down 0.12%) and MTNL (down 1.98%) declined. MRF rose 4.81% after net profit jumped 40.29% to Rs 210.61 crore on 2.87% decline in net sales to Rs 2904.77 crore in Q2 March 2013 over Q2 March 2012. The result was announced during trading hours today, 18 April 2013. The stock market remains closed tomorrow, 19 April 2013, on account of Ram Navmi. The focus of the market is on Q4 results. Wipro announces Q4 results tomorrow, 19 April 2013. Cairn India announces Q4 results on 22 April 2013. UltraTech Cement announces Q4 results on the same day. HDFC Bank announces Q4 results on 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. India's exports declined 1.76% to $300.6 billion in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012), mainly on account of slowdown in the global economy, Commerce and Industry Minister Anand Sharma said today, 18 April 2013. The government had fixed an export target of $360 billion for FY 2013 which had been missed by a wide margin. The declining exports pushed up the trade deficit during FY 2013 to $190.91 billion from $183.4 billion in FY 2012. The government today, 18 April 2013, announced a host of steps including extension of the zero-duty export Export Promotion Capital Goods (EPCG) scheme beyond March 2013 to encourage exports at the time of announcing the annual supplement to the Foreign Trade Policy. The EPCG scheme, which is a major incentive programme of the government, would be available to all sectors, the Minister said. Besides other schemes, the Minister also announced incentives for Special Economic Zones (SEZs) to encourage exports. Reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms could result in supply of equity in the market over the next few months. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 30 June 2013, while the deadline for state-run firms is 31 August 2013. PSU divestment will also add to share sale glut in FY 2014. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014. 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. Inflation based on the monthly wholesale price index (WPI) eased 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. The government revised upwards WPI inflation for January 2013 to 7.31% from 6.62% reported earlier. Build up inflation rate in the financial year so far was 5.96% compared to a build up rate of 7.69% in the corresponding period of the previous year, the Ministry of Commerce & Industry said in a statement. The combined consumer price inflation for rural and urban India stood at 10.39% in March 2013, lower than 10.91% in February 2013, recent data showed. Inflation under the category 'food and beverages' stood at 12.42%, the data showed. The index of industrial production rose 0.6% in February 2013, data released by the government on 12 April 2013 showed. Industrial production rose 0.9% during the period April 2012 to February 2013. The India Meteorological Department will issue its initial forecast of 2013 southwest monsoon in this month. 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. On the political front, the Congress led UPA government has been reduced to a minority government, with DMK removing support to the government in March this year citing differences on the issue of atrocities on Tamils in Sri Lanka. Earlier, the Trinamool Congress withdrew support to the government in September last year as it opposed economic reforms. The Samajwadi Party (SP) along with its regional rival in Uttar Pradesh Bahujan Samaj Party (BSP) provide outside support to the UPA government. SP has 22 MPs in Lok Sabha and BSP has 21 MPs. The second half of the Budget session of the Parliament begins on 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. Assembly elections will be held in Karnataka on 5 May 2013 and the counting of votes and results of the election will be declared on 8 May 2013. European markets rose in choppy trade on Thursday, a day after most major bourses closed at 2013 lows and extended losses into a fourth straight trading day. Key benchmark indices in UK, France and Germany were up by 0.41% to 0.89%. Asian stocks were mostly down on Thursday as sentiment took hits from falling commodity prices and weak US corporate results, with some technology stocks dropping after a sharp fall in Apple Inc. Key benchmark indices in Hong Kong, South Korea, Taiwan and Japan were down by 0.23% to 1.24%. Key benchmark indices in Singapore, China and Indonesia were up by 0.15% to 0.28%. Trading in US index futures indicated the Dow could rise 44 points at opening bell on Thursday, 18 April 2013. US stocks fell sharply on Wednesday, 17 April 2013, led by a sharp drop in Apple shares on worries about slowing demand for its products and weaker-than-expected results from Bank of America.
Market may remain volatile in truncated week
The market may remain volatile in a truncated 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. The focus of the market is on Q4 results. Cairn India announces Q4 results on Monday, 22 April 2013. UltraTech Cement announces Q4 results on the same day. HDFC Bank announces Q4 results on Tuesday, 23 April 2013. Axis Bank will announce its Q4 March 2013 results on Wednesday, 24 April 2013. Jindal Steel & Power declares its Q4 results on Thursday, 25 April 2013. Hero MotoCorp, ICICI Bank and Maruti Suzuki India unveil Q4 results on Friday, 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. ABB and HDFC unveil 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. Investors will keenly track gold and oil prices as recent steep drop in these commodities eased concerns of India's high current account and fiscal deficit. India is the world's largest importer of gold and also imports around 80% of its overall oil requirement. Reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms could result in supply of equity in the market over the next few months. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 30 June 2013, while the deadline for state-run firms is 31 August 2013. PSU divestment will also add to share sale glut in FY 2014. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014. 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 on Monday, 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. Assembly elections will be held in Karnataka on 5 May 2013 and the counting of votes and results of the election will be declared on 8 May 2013.
Sensex regains 19,000 on rate cut hopes
Key benchmark indices jumped as steep drop in gold and oil prices eased concerns of high current account and fiscal deficit and data showing easing of wholesale price index triggered expectations of an interest-rate cut by the Reserve Bank of India (RBI). Interest rate sensitive auto, realty and banking stocks led the rally. The S&P BSE Sensex hit its highest level in over 2 weeks above the psychological 19,000 mark. The CNX Nifty hit its highest level in over 4 weeks. The market gained in three out of four trading sessions in the week just gone by. The S&P BSE Sensex jumped 773.90 points or 4.24% to 19,016.46, its highest closing level since 2 April 2013. The CNX Nifty surged 254.55 points or 4.6% to 5,783.10, its highest closing level since 18 March 2013. The BSE Mid-Cap index rose 1.94% and the BSE Small-Cap index gained 1.76%. Both these indices underperformed the Sensex. Key benchmark indices edged higher on Monday, 15 April 2013 as slowing wholesale price inflation raised rate cut expectations. The S&P BSE Sensex was up 115.24 points or 0.63% to 18,357.80 on that day, its highest closing level since 11 April 2013. Key benchmark indices surged on Tuesday, 16 April 2013 as steep drop in gold and oil prices eased concerns of high current account and fiscal deficit and Monday's (15 April 2013) data showing easing of wholesale price index triggered expectations of an interest-rate cut by the Reserve Bank of India (RBI). The S&P BSE Sensex jumped 387.13 points or 2.11% to settle at 18,744.93 on that day, its highest closing level since 3 April 2013. Key benchmark indices closed flat after witnessing high intraday volatility on Wednesday, 17 April 2013. The S&P BSE Sensex lost 13.77 points or 0.07% to 18,731.16 on that day, its lowest closing level since 15 April 2013. Key benchmark indices surged on Thursday, 18 April 2019 as gains in European markets boosted sentiment. The S&P BSE Sensex was up 285.30 points or 1.52% to 19,016.46 on that day, its highest closing level since 2 April 2013. The stock market remains shut on Friday, 19 April 2013, on account of Ram Navmi. From the 30-share Sensex pack, 24 stocks gained, 5 stocks fell and one stock was unchanged. Index heavyweight Reliance Industries (RIL) gained 0.84%. 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 announced Q4 March 2013 results after trading hours on Tuesday, 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). RIL's gross refining margin (GRM) edged up to $10.1 a barrel in Q4 March 2013 from $9.6 a barrel in Q3 December 2012 and $7.6 a barrel in Q4 March 2012. The GRM edged up to $9.2 a barrel in FY 2013 from $8.6 a barrel in FY 2012. RIL said its retail business achieved cash breakeven with earnings before depreciation, finance cost and tax expense of Rs 78 crore in FY 2013. Turnover of the retail business jumped 42% to Rs 10800 crore in FY 2013 over FY 2012. FMCG stocks gained on reports of likely normal monsoon this year. FMCG companies derive a substantial revenue from rural markets. FMCG major Hindustan Unilever rose 1.04%. Index heavyweight and cigarette major ITC surged 7.57% to Rs 315.30. The stock hit record high of Rs 316.35 in intraday trade Thursday, 18 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. Bank stocks galloped on expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost growth amid slowing wholesale price inflation. State Bank of India (SBI) surged 10.18%. The bank's Chairman Pradip Chaudhuri on Tuesday, 16 April 2013, said that SBI is looking at merging one of its five banking subsidiaries with it in the current financial year that started on 1 April 2013. ICICI Bank advanced 7.44%. ICICI Bank announces Q4 results on 26 April 2013. HDFC Bank rose 4.57%. HDFC Bank announces Q4 results on 23 April 2013. IT stocks fell on rally in rupee against the dollar. A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports. IT major TCS was down 4.01%. The company after trading hours on Wednesday, 17 April 2013, said 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. The company clocked volume growth of 4.4% on sequential basis in the fourth quarter. 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. TCS said there was balanced growth across markets and industries in FY 2013. All industry verticals grew in double digits in FY 2013, it said. TCS' full service capabilities continue to be leveraged by customers with new service lines growing at a fast pace. The infrastructure services segment grew 47%, Business Process Outsourcing grew 46% while Assurance Services, Enterprise Solutions and Global Consulting grew by 33%, 25% and 52% respectively, TCS said. Wipro dropped 3.82%. The company announces Q4 results Friday, 19 April 2013. The Securities & Exchange Board of India (Sebi) has exempted Wipro from a rule that prevents promoters of companies from selling their stakes within 12 weeks of another deal. Wipro after market hours on 15 April 2013 said that the Securities & Exchange Board of India (Sebi) has accepted the company's request and permitted the promoter and promoter group (including the entities that carried out the inter-se transfer) to divest through the offer for sale (OFS) route during the twelve weeks cool off period. Earlier, Wipro had on 25 March 2013 applied to SEBI seeking a specific relaxation exemption from the twelve week cooling off period for carrying out OFS through the stock exchange mechanism following the inter-se transfer amongst the promoter and promoter group entities on 15 March 2013. Infosys was flat. The company on Tuesday, 16 April 2013, said it has signed a major new strategic partnership with Queen's University Belfast aimed at combating the global cyber security threat. The collaboration brings together Infosys with Queen's University Belfast's Centre for Secure Information Technologies (CSIT), one of UK's largest and most prestigious university cyber security research labs, and Invest Northern Ireland, the Northern Ireland government's regional business development agency. 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. Capital goods stocks gained on renewed buying. The state-run power equipment major Bhel rose 3.48%. L&T jumped 8.33%. The company on 12 April 2013 said that it would acquire 50% stake in L&T-Komatsu (LTK) held by Komatsu Asia & Pacific Pte, a wholly owned subsidiary of Komatsu, Japan. With this buy-out, LTK will become a wholly owned subsidiary of L&T. LTK will continue to manufacture construction equipment and hydraulic components. Komatsu will be responsible for the production of Komatsu equipment including hydraulic excavators, L&T said in a statement. As a result of this transaction, the companies expect to able to provide premium products and services to customers, and maintain leadership position in construction & mining equipments business, offering state-of-the-art machines with highest level of quality and latest designs from Komatsu, L&T said. L&T will continue to be responsible for marketing, sales and product support in India for the Komatsu range of products, assuring customers of the highest level of Support, L&T said in a statement. Metal stocks edged higher. Jindal Steel & Power rose 2.73%. Hindalco Industries gained 2.29%. Sterlite Industries (India) rose 0.56% to Rs 89. The stock hit a 52-week low of Rs 83.15 in intraday trade on Tuesday, 16 April 2013. Tata Steel gained 0.2% to Rs 299.95. The stock had struck a 52-week low of Rs 292.70 in intraday trade on Tuesday, 16 April 2013. Tata Power declined 0.16%. The Central Electricity Regulatory Commission in an order issued on 15 April 2013 allowed the company to raise electricity tariffs on a temporary basis at its Mundra power plant on account of rising cost of imported coal. The CERC has allowed Coastal Gujarat Power, a unit of Tata Power that operates the plant in Gujarat, to charge "compensatory" tariffs for electricity until the fuel supply situation improves. The regulator will direct the setting up of a panel to finalise details of the compensatory tariff. The order follows a similar ruling by the regulator earlier this month, which allowed Adani Power to raise tariffs for electricity from its power plant at Mundra. Tata Power's 4,000-megawatt (MW) plant at Mundra runs on imported coal from Indonesia, but it has been suffering from mounting losses after the South East Asian nation raised levies on coal exports, which Tata Power has not been able to pass on to its customers so far. Auto stocks rose as slowing wholesale price inflation raised rate cut expectations. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing. Mahindra & Mahindra (M&M) surged 9.55%. M&M on Tuesday, 16 April 2013, said Mahindra USA (MUSA), a part of Mahindra Group, closed the fiscal year 2013 with record billings and record retail sales, gaining over 2% points, delivering its highest ever market share in the US. Tata Motors rose 2.51%. The company on 12 April 2013 said that its global wholesales, including Jaguar Land Rover were 116,521 units in March 2013. Cumulative wholesales for the year ended 31 March 2013 (FY 2013) were 1,196,416 units. Tata Motors' British luxury car unit Jaguar Land Rover (JLR) on 10 April 2013 said its global sales rose 16% to a record 53,772 units in March 2013 over March 2012. JLR's global sales rose 17% to a record 115,504 units in Q1 March 2013 over Q1 March 2012. JLR said the Jaguar brand demonstrated strong growth with sales of 9,856 in March up 28% and sales for the quarter of 20,210 up 31%. Land Rover, meanwhile, delivered the best single month and quarter in its 65 year history with March sales of 43,916, up 14% and quarter one sales of 95,294, up 15% versus 2012, JLR said. Small-car maker Maruti Suzuki India surged 8.26%. Shares of two-wheeler makers rose after PSU OMCs reduced petrol prices by Rs 1 per litre on 15 April 2013. Hero MotoCorp (up 3.26%) and Bajaj Auto (up 4.14%) gained. PSU OMCs announced cut in petrol price by Re 1 per litre, excluding value added tax (VAT), effective midnight 15 April 2013 because of fall in international oil prices. The recent cut in petrol price comes on the back of 85 paise a litre reduction in rates on 2 April 2013 and Rs 2 a litre decrease effected on 16 March 2013. Among pharma stocks, Cipla declined 0.85%. Dr Reddy's Laboratories rose 0.16%. Sun Pharmaceutical Industries rose 5.27% to Rs 916.05. The stock hit record high of Rs 925 in intraday trade Thursday, 18 April 2013. The company on 15 April 2013, announced that the USFDA has granted its subsidiary, two tentative approvals for its Abbreviated New Drug Applications (ANDA) for generic version of Januvia, Sitagliptin Tablets and generic version of Glumetza, Metformin HCl Extended-release tablets. Telecom services major Bharti Airtel jumped 9.55%. The stock was the second top gainer from the Sensex pack. Inflation based on the monthly wholesale price index (WPI) eased 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. The government revised upwards WPI inflation for January 2013 to 7.31% from 6.62% reported earlier. Build up inflation rate in the financial year so far was 5.96% compared to a build up rate of 7.69% in the corresponding period of the previous year, the Ministry of Commerce & Industry said in a statement. India's exports declined 1.76% to $300.6 billion in the year ended 31 March 2013 (FY 2013) mainly on account of slowdown in the global economy, Commerce and Industry Minister Anand Sharma said on Thursday, 18 April 2013. The government had fixed an export target of $360 billion for FY 2013 which had been missed by a wide margin. The declining exports pushed up the trade deficit during FY 2013 to $190.91 billion from $183.4 billion in FY 2012. The government Thursday, 18 April 2013, announced a host of steps including extension of the zero-duty export Export Promotion Capital Goods (EPCG) scheme beyond March 2013 to encourage exports at the time of announcing the annual supplement to the Foreign Trade Policy. The EPCG scheme, which is a major incentive programme of the government, would be available to all sectors, the Minister said. Besides other schemes, the Minister also announced incentives for Special Economic Zones (SEZs) to encourage exports.
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