Market ekes out marginal gains

Key benchmark indices logged marginal gains in a choppy trading session. The barometer index, BSE Sensex, advanced 7.42 points or 0.04%, up 79.62 points from the day's low and off 31.76 points from the day's high. Index heavyweight Reliance Industries (RIL) edged lower in volatile trade. Another index heavyweight and cigarette maker ITC extended gains in late trade. Car major Maruti Suzuki scaled 52-week high. The market breadth was negative. BSE Small-Cap and Mid-Cap indices both edged lower. Indian stocks rose for the fourth straight trading session today, 5 November 2012. From a recent low of 18,430.85 on 30 October 2012, the Sensex has jumped 332.02 points or 1.8% in four trading sessions. The Sensex has surged 3,307.95 points or 21.4% in calendar 2012 so far (till 5 November 2012). The Sensex has gained 257.49 points or 1.39% in first three trading sessions of November month. From a 52-week high of 19,137.29 on 5 October 2012, the Sensex has declined 374.42 points or 1.95%. From a 52-week low of 15,135.86 on 20 December 2011, the Sensex has risen 3,627.01 points or 23.96%. Coming back to today's trade, Piramal Enterprises dropped as the company swung to net loss in Q2 September 2012. IT stocks were mostly lower ahead of the US presidential election tomorrow, 6 November 2012. Reliance Power rose after Q2 results. Pharma major Cipla advanced 1.02% ahead of its Q2 results. Cairn India fell as the stock turned ex-dividend today, 5 November 2012, for interim dividend of Rs 5 per share for the year ending 31 March 2013. PSU OMCs were mostly higher after Friday's slide in crude oil prices. Bank stocks were mixed. Capital goods pivotals saw divergent trend. Realty stocks declined. Metal shares declined as LMEX, a gauge of six metals traded on the London Metal Exchange, dropped on Friday, 2 November 2012. The market edged higher amid a bout of initial volatility. The Sensex retained positive zone in morning trade. A bout of volatility was witnessed as the barometer index, BSE Sensex, pared gains after hitting its highest level in almost two weeks in mid-morning trade. Volatility continued as key benchmark indices dropped to intraday low in early afternoon trade. Key benchmark indices extended intraday losses in afternoon trade. Weakness continued on the bourses in mid-afternoon trade. Volatility ruled the roost as key benchmark indices reversed direction and regained positive zone in late trade. The BSE Sensex advanced 7.42 points or 0.04% to 18,762.87, its highest closing since 22 October 2012. The Sensex fell 72.20 points at the day's low of 18,683.25 in mid-afternoon trade, its lowest level since 1 November 2012. The index rose 39.18 points at the day's high of 18,794.63 in mid-morning trade. The S&P CNX Nifty advanced 6.50 points or 0.11% to 5,704.20, its highest closing since 25 October 2012. The index hit a low of 5,679.50 in intraday trade, its lowest level since 1 November 2012. The index hit high of 5,709.20 in intraday trade. The market breadth, indicating the overall health of the market, was negative. On BSE, 1,515 shares fell and 1,390 shares rose. A total of 141 shares were unchanged. The BSE Mid-Cap index shed 0.26% and the BSE Small-Cap index fell 0.1%. Both these indices underperformed the Sensex. The total turnover on BSE amounted to Rs 1673 crore, lower than Rs 2192.87 crore on Friday, 2 November 2012. From the 30-share Sensex pack, 16 stocks declined while the rest of them rose. Index heavyweight Reliance Industries (RIL) shed 0.41% to Rs 804.50. The stock high a high of Rs 808 and a low of Rs 800.20. The company on Saturday, 3 November 2012, said it has never in the past contested the government's right to conduct an audit by any agency, including the CAG as provided in Section 1.9 of the Accounting Procedure of the production sharing contract (PSC). At all times RIL has fully co-operated with any auditor appointed by the government, including in several cases where the government had already exercised its audit rights earlier or where such audit was beyond the period stipulated in the PSC. RIL said it is a private operator functioning under a PSC. RIL said it appreciates the fact that the CAG is in agreement that it does not conduct performance audit of private operators and expect that no such performance related audit issues applicable to the government will be applied to any such audit. As always, RIL is fully confident of its technical capabilities and welcomes comments on operational matters if such comments come from experts having the requisite knowledge of the complexities of deep water operations in oil and gas sector, RIL said. Mangalore Refinery and Petrochemicals (MRPL) rose 1.46% on strong Q2 results. MRPL's net profit jumped 4811.4% to Rs 1185.11 crore on 38% growth in turnover to Rs 17148 crore in Q2 September 2012 over Q2 September 2011. MRPL reported a net foreign exchange gain of Rs 284 crore in Q2 September 2012, as against a net foreign exchange loss of Rs 352 crore in in Q2 September 2011. The results hit the market after trading hours on Friday, 2 November 2012. The strong financial performance in Q2 September 2012 has enabled MRPL to recover substantial portion of losses that the company had posted in Q1 June 2012. MRPL's gross refining margin (GRM) surged sharply to $9.19 a barrel from $4.8 a barrel in Q2 September 2011. MRPL attributed the sharp surge in GRM to increased throughput and distillate yield, favourable movement of the rupee against the dollar and availability of higher cracks in the market for HSD, MS and ATF. MRPL said that while it has retained strong market presence in its refinery zone for products marketed to direct customers of bitumen and CRMB, the company's share in the fuel oil market has declined due to discount philosophy of the players in the market. MRPL said it is continuing its limited presence in retail marketing of auto fuels, keeping in view the uncertainties in pricing of these products. MRPL also said it is in readiness for marketing of Petcoke and other new products that will be produced from the company's ongoing Phase III refinery expansion and upgradation project. MRPL said the Phase III refinery expansion project is progressing and nearing competition. The overall project progress as on 15 October 2012 was 96.8%. The commissioning of DHDT will be completed by 2nd week of November 2012. The overall progress of the polypropylene project has reached 83.5% as on 15 October 2012 and is scheduled for commissioning by January/February 2013. The progress of CPP by Bharat Heavy Electricals (Bhel) continues to be critical and may delay the commissioning schedule, MRPL said. Cairn India fell 1.36% to Rs 330.25 as the stock turned ex-dividend today, 5 November 2012, for interim dividend of Rs 5 per share for the year ending 31 March 2013. PSU OMCs were mostly higher after Friday's slide in crude oil prices. HPCL (up 1.25%) and BPCL (up 0.94%) gained. But, Indian Oil Corporation (IOC) fell 0.48%. Oil prices sank on Friday, 2 November 2012, after an encouraging US jobs report was overshadowed by post-Sandy shutdowns at US East Coast refineries. The Ministry of Petroleum & Natural Gas on 1 November 2012 said that the under-recovery on High Speed Diesel (HSD) applicable for the 1st fortnight of November 2012 remains at a high level of Rs 9.84 per litre. In case of PDS Kerosene and Domestic LPG, the under-recoveries are Rs 31.30 a litre and Rs 478.50 per cylinder, respectively, for November 2012, according to a review from the Petroleum Planning and Analysis Cell (PPAC). PSU OMCs are currently (effective 1 November 2012) incurring daily under-recovery of about Rs 421 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. Their under-recovery totaled Rs 85586 crore during the period April-September 2012. Their under-recovery totaled Rs 138541 crore for the year ended 31 March 2012 (FY 2012). Index heavyweight and cigarette maker ITC gained 1.71% to Rs 288.50. The Ministry of Health and Family Welfare last month notified new pictorial health warnings to be depicted on tobacco product packs which will come into effect from 1 April 2013. The Ministry of Health and Family Welfare said in a statement on 22 October 2012 that three sets of warnings each have been notified for smoking as well as smokeless forms of tobacco product packages. The well-designed health warnings and messages are part of a range of measures to communicate health risks due to tobacco use. Pictorial health warnings communicate health risks in a visible way, provoke a greater emotional response and increase the motivation of tobacco users to quit and to decrease their tobacco consumption, the ministry's statement said. Graphic warning labels have a greater impact than text-only labels and can be recognized by low-literacy audiences and children, the statement added. Shares of ITC had hit record high on 19 October 2012 after the company announced strong Q2 results during trading hours on that day. The stock had hit record high of Rs 299.20 in intraday trade on 19 October 2012. ITC's net profit jumped 21.27% to Rs 1836.42 crore on 18.65% growth in income from operations to Rs 7226.58 crore in Q2 September 2012 over Q2 September 2011. Godrej Consumer Products (GCPL) dropped 5.12%. The company on Saturday, 3 November 2012, said its consolidated net profit jumped 25% to Rs 159 crore on 35% growth in net sales to Rs 1595 crore in Q2 September 2012 over Q2 September 2011. Earnings before interest, taxation, depreciation and amortization (EBITDA) or operating profit rose 18% to Rs 249 crore in Q2 September 2012. The company said it has a healthy balance sheet, with debt-equity ratio of 0.48. Commenting on the second quarter results, Adi Godrej, Chairman, GCPL, said: "We delivered another quarter with strong financial performance in both our domestic and international operations. We continue to intensify our focus on innovation. We have launched several exciting products and are backing them with substantial marketing investments. Operationally, we continue to perform well on all parameters and are realizing synergies from effective integrations in both our domestic and international businesses. We remain focused on our 3 x 3 strategy, driving to leadership in our 3 core categories in emerging markets across Africa, Latin America and Indonesia. Our continued robust performance is a reflection of clear strategic focus, superior execution and our top notch team". Meanwhile, the board of directors of Godrej Consumer Products (GCPL) has identified Vivek Gambhir, Chief Strategy Officer, Godrej Industries and its associate companies, as the successor to A. Mahendran, Managing Director of GCPL. Mahendran has indicated that he would like to retire when his current term expires on 30 June 2013 to devote time to his family businesses. Mahendran will continue to serve on GCPL's board of directors post his retirement. Over the next eight months, Mahendran and Vivek will work closely together to ensure a smooth transition of responsibilities, GCPL said in a statement today, 5 November 2012. Commenting on the leadership succession plan, Adi Godrej, Chairman of GCPL, said: "Over the last eighteen years, Mahendran has provided tremendous leadership to the Godrej Group in different roles. As Managing Director of GCPL, he successfully guided the company through the merger with Godrej Sara Lee and our internationalization strategy. We are very appreciative that we will continue to benefit from his insights and experience as a member of the board. Given Mahendran's desire to step back from the MD's role upon the conclusion of his current term, we have put in a robust plan in place to ensure a smooth succession. Our announcement several months ahead of the leadership change reflects our commitment to sound governance practices and will ensure a seamless transition of responsibilities. We believe that Vivek is ideally suited to lead GCPL forward. He has been a key architect of GCPL's 3 by 3 growth strategy and has played a key role in the Godrej Group's overall value creation and transformation story over the last few years. Vivek is a proven leader who has shown the ability to attract, develop and retain top talent throughout his career. We are confident that he is the right person to lead GCPL in its next phase of growth". Car major Maruti Suzuki India gained 0.83% to Rs 1,478.80 after scaling a 52-week high of Rs 1,488 in intraday trade today, 5 November 2012. The company early this month said its total sales jumped 85.5% to 1.03 lakh units in October 2012 over October 2011. Maruti Suzuki India said total passenger car sales surged 93.8% to 79,811 units in October 2012 over October 2011. Total domestic sales jumped 86.6% to 96,002 units and total exports rose 71.8% to 7,106 units in October 2012 over October 2011. The sharp surge in sales in October 2012 was due to base effect. Maruti's sales in October of 2011 were hit adversely due to labour unrest at the company's Manesar and Gurgaon factories in Haryana. Maruti last month said its net profit declined 5.4% to Rs 227.50 crore on 8.5% growth in net sales to Rs 8070.10 crore in Q2 September 2012 over Q2 September 2011. Maruti said growth in sales was on account of sales of new model Ertiga and enhanced export realizations. The company said the decline in net profit was due to lower non-operating income. While earnings before interest, depreciation, taxation and amortization (EBITDA) rose 15.4% year-on-year, a 30.4% surge in depreciation resulted in fall in bottom line, Maruti Suzuki India said in a statement. Maruti said it enhanced sales promotion measures for petrol driven cars in Q2 September 2012 in a bid to counter subdued demand for petrol driven cars in India, which adversely impacted profitability. Maruti said it continues to focus on component localisation and reduction in cost and overheads. The car major said that the company has a customer wait list of nearly 1.25 lakh units for its diesel vehicles. India's largest utility vehicle maker by sales Mahindra & Mahindra (M&M) fell 0.92% to Rs 909.20. The stock had hit record high of Rs 920.65 in intraday trade on Friday, 2 November 2012. M&M announced an all time high monthly auto sales number of 53,438 units in October 2012, representing a 29% growth over October 2011 which stood at 41,506 units. M&M announced the monthly sales data for October 2012 trading hours Thursday, 1 November 2012. M&M's passenger vehicles also registered all time high sales at 26,932 units in October 2012, a growth of 44% over the corresponding period last year. Its domestic sales stood at 51,316 units during October 2012, as against 39352 units during October 2011, an increase of 30%. The 4 wheeler commercial segment which includes the passenger and load categories has registered a growth of 26% at 16561 units. Exports for the month of October 2012 stood at 2,122 units. The production of XUV500 has been increased to 5,000 units per month starting October 2012, which will help in reducing the waiting period for one of the flagship products of the company. M&M on 1 November 2012 said its farm equipment sector (FES) maintained its leadership position in the tractor industry in October 2012. Domestic tractor sales declined 5.39% to 28,872 units in October 2012 over October 2011. The company's total tractors sales including exports declined 7.13% to 29,565 units in October 2012 over October 2011. Exports for the month of October 2012 stood at 693 units. The combined net profit of M&M and its 100% subsidiary -- Mahindra Vehicle Manufacturers (MVML) -- jumped 28.4% to Rs 978.10 crore on 31% growth in gross revenue plus other income to Rs 10786.70 crore in Q2 September 2012 over Q2 September 2011. MVML, located at Chakan near Pune in Maharashtra, has been set up as a 100% subsidiary of M&M with a view to source contemporary products for expanding the market offering of M&M. M&M announced the second quarter results on 25 October 2012. With regard to future business outlook, M&M said while the current economic situation is quite challenging, M&M through its continuous focus on new product introduction, process innovation and cost control expects to rise to this challenge adequately. India's largest commercial vehicle maker by sales Tata Motors fell 0.33% to Rs 269.15. The company's total sales (including exports) of Tata commercial and passenger vehicles rose 6% to 71,771 vehicles in October 2012 over October 2011. The company's domestic sales of Tata commercial and passenger vehicles rose 7% to 68,145 units in October 2012 over October 2011. Exports declined 13% to 3,626 vehicles in October 2012 over October 2011. The company announced the monthly sales data after trading hours on 1 November 2012. The company's sales of commercial vehicles in October 2012 in the domestic market rose 21% to 47,026 units in October 2012 over October 2011. LCV sales jumped 59% to 34,905 units. M&HCV sales declined 28% to 12,121 units. Sales of passenger vehicles for October 2012 were at 21,119 units, lower by 16% over 25,124 units sold in October 2011. There has been encouraging response to the Tata Manza Club Class, now available across the country, and the Tata Safari Storme, now available in the NCR region, Chandigarh and Lucknow, Tata Motors said. Motorcycle major Bajaj Auto fell 2.19% to Rs 1,856.90. The stock had hit a record high of Rs 1,905 in intraday trade on Friday, 2 November 2012. The company on Friday, 2 November 2012, said its total sales rose 4% to 4.11 units in October 2012 over October 2011. Three-wheeler sales jumped 14% to a record 50,316 units in October 2012 over October 2011. Exports declined 4% to 1.26 lakh units in October 2012 over October 2011. Bajaj Auto's motorcycle sales rose 3% to 3.61 lakh units in October 2012 over October 2011. Bajaj Auto said its domestic motorcycle clocked record monthly sales of 2.62 lakh units in October 2012. The company also said that sales of its Discover brand of motorcycles clocked record sales of 1.55 lakh units in October 2012. Hero MotoCorp was unchanged at Rs 1945.10. The company's total motorcycle sales rose 3.31% to Rs 5.29 lakh units in October 2012 over October 2011. Hero registered its highest ever sales for scooters in a single month in October 2012. Scooter sales crossed the 50,000 mark for the first time in the company's history. Encouraged by the strong sales of its scooters Maestro and Pleasure, the two-wheeler giant has increased its scooter production to over 60,000 units a month. IT stocks were mostly lower ahead of the US presidential election tomorrow, 6 November 2012. US is the biggest outsourcing market for the Indian IT firms. India's largest software services exporter by revenues TCS shed 0.31%. IT major Wipro fell 0.58%. On a consolidated basis under International Financial Reporting Standards (IFRS), Wipro's net profit rose 24% to Rs 1611 on 17% increase in total revenue to Rs 10657 crore in Q2 September 2012 over Q2 September 2011. The company announced the result on Friday, 2 November 2012. IT Services revenue was reported at $1.541 billion in Q2 September 2012, a sequential increase of 1.7% and a year-on-year (YoY) increase of 4.6%. The company said it expects 1.23% to 3.17% growth revenues from IT services business at $1.56 billion to $1.59 billion in Q3 December 2012 over Q2 September 2012. Wipro's board of directors on 1 November 2012 approved demerger of the Wipro Consumer Care & Lighting (including Furniture business), Wipro Infrastructure Engineering (Hydraulics & Water businesses), and Medical Diagnostic Product & Services business (through its strategic joint venture), into a separate company to be named Wipro Enterprises. Wipro will remain a publicly listed company that will focus exclusively on information technology. Wipro Enterprises will be an unlisted company. Infosys rose 0.2%. The company last week said Bunna International Bank Partners, a leading player in the Ethiopian market, has selected Finacle core banking solution from Infosys for the bank's transformation journey. Finacle will enable the bank to integrate its front and back office operations and deploy a state-of-the-art loan origination system, Infosys said in a statement. This transformation will help Bunna improve the overall banking experience for its customers. Infosys last month said it has completed the acquisition of Lodestone Holding AG, a leading management consultancy based in Switzerland. The acquisition is in accordance with the terms set out in the agreement announced on September 10, 2012. The deal strengthens the management consulting capabilities of Infosys around the world, adding more than 750 experienced consultants and 200 clients in wide-ranging areas such as manufacturing and the automotive and life sciences industries, Infosys said in a statement. Tech Mahindra rose 0.79%. The company's consolidated net profit declined 12.46% to Rs 296.30 crore on 5.7% growth in revenue from services to Rs 1631.40 crore in Q2 September 2012 over Q1 June 2012. The result was announced after market hours today, 5 November 2012. Operating Profit or earnings before interest, taxation, depreciation and amortization (EBITDA) rose 2.27% to Rs 337.70 crore in Q2 September 2012 over Q1 June 2012. The results are not comparable as Tech Mahindra said Hutchison Global Services (HGS) was consolidated from the quarter ended 30 September 2012. It may be recalled in September 2012, Tech Mahindra had announced the acquisition of 100% stake in Hutchison Global Services (HGS) for $87.1 million, payable upfront. Tech Mahindra's outstanding debt stood at Rs 1286 crore as on 30 September 2012, sharply higher than Rs 886 crore as on 30 June 2012. The company had cash and cash equivalents of Rs 359 crore as on 30 September 2012, higher than Rs 280 crore as on 30 June 2012 Commenting on the second quarter results, Vineet Nayyar, Executive Vice Chairman of Tech Mahindra said: "This has been an eventful quarter for us with some wins and key non organic initiatives. Our focus on expanding capabilities to service our customers better has helped us gain traction in the market place and deliver a robust performance." C P Gurnani, Managing Director of Tech Mahindra said: "Tech Mahindra has delivered another stable quarter. Our key wins showcase the confidence our customers are reposing in us. Our non organic growth journey has started well with two key additions to our portfolio. We continue with our focus on development of new platforms with our NMACS strategy as a key differentiator." Tech Mahindra said its board has taken note that British Telecommunications Plc. (BT) had sold a substantial portion of its shares in the company as a result of which BT's shareholding in the company had fallen below 10%. The board noted that the Shareholders Agreement (SHA) between Mahindra & Mahindra (M&M) and BT to which the company was also a party, has ceased to be operative. Consequently, Mr. Anand Mahindra and Mr. Bharat Doshi who were nominated by M&M on the board of the company will vacate their office of director. In view of this, the board appointed Mr. Anand Mahindra and Mr. Bharat Doshi as additional directors and Mr. Anand Mahindra was elected as the Chairman of the company. Bank stocks were mixed. Private sector banking giant ICICI Bank slipped 0.24%. ICICI Bank has introduced cashback offers on home loans in a bid to ensure that home loan customers stick around longer in an environment without prepayment charges. ICICI Bank's net profit jumped 30% to Rs 1956 crore in Q2 September 2012 over Q2 September 2011. Net interest income jumped 35% to Rs 3371 crore and non-interest income jumped 17% to Rs 2043 crore in Q2 September 2012 over Q2 September 2011. Net interest margin improved to 3% in Q2 September 2012 from 2.61% in Q2 September 2011. Cost-to-income ratio reduced to 40.9% in Q2 September 2012 from 44.4% in Q2 September 2011. The result was announced on 26 October 2012. India's second largest private sector bank by net profit HDFC Bank rose 0.62% to Rs 635.20. The stock had hit a record high of Rs 644.90 on 30 October 2012. HDFC Bank's net profit jumped 30.06% to Rs 1559.98 crore on 24.47% growth in total income to Rs 9869.8 crore in Q2 September 2012 over Q2 September 2011. HDFC Bank announced the second quarter results on 12 October 2012. India's largest bank by branch network State Bank of India (SBI) fell 0.53% State Bank of Bikaner and Jaipur rose 4.90% after net profit jumped 50.9% to Rs 169.21 crore on 27.8% growth in total income to Rs 2028.45 crore in Q2 September 2012 over Q2 September 2011. The bank announced the results on Saturday, 3 November 2012. State-run Allahabad Bank fell 2.21% after net profit fell 52.01% to Rs 234.20 crore on 9.04% increase in total income to Rs 4582.64 crore in Q2 September 2012 over Q2 September 2011. The result was announced during trading hours today, 5 November 2012. Vijaya Bank lost 3.22% after net profit fell 39.38% to Rs 123.37 crore on 9.69% growth in total income to Rs 2301.72 crore in Q2 September 2012 over Q2 September 2011. The state-run bank announced the Q2 results during trading hours today, 5 November 2012. The Reserve Bank of India said last week it has decided to increase the provision for restructured standard accounts of banks from to 2.75% from current 2% with immediate effect. As indicated in the Monetary Policy Statement of April 2012, a Working Group (Chairman: Shri B. Mahapatra) reviewed the existing prudential guidelines on restructuring of advances by banks/financial institutions. The report of the Working Group was submitted in July and was placed on the website of the Reserve Bank inviting comments from the stakeholders. The recommendations of the Working Group as also the comments/suggestions received in this regard are under examination and draft guidelines will be issued by end-January 2013, RBI said. Capital goods pivotals saw divergent trend. Engineering and construction conglomerate Larsen & Toubro (L&T) fell 0.14%. The company's construction division has bagged an order worth Rs 1252 crore from Delhi Metro Rail Corporation (DMRC). The order will be executed as joint venture with Shanghai Urban Construction Group (SUCG), L&T said in a statement today, 5 November 2012. The joint venture will design and construct a tunnel between Shankar Vihar and Hauz Khas as well as underground stations at Vasant Vihar, Munirka, R.K. Puram, IIT and Hauz Khas. L&T's share in the project is Rs 852 crore. L&T also said it had recently won an order Rs 644 crore contract for construction of a permanent campus facility for IIT, Hyderabad. So far in November 2012, L&T's construction division has bagged orders valued at over Rs 1496 crore, L&T said. India's largest power equipment maker by capacity Bhel rose 0.63%. Voltas rose 1.73%. The company today, 5 November 2012, said it has transferred its entire 34% shareholding comprising 50,000 equity shares of Rs 10 each in Voltas Material Handling (VMH) for a consideration of Rs 58 crore in favour of Linde Material Handling Asia Pacific Pte, Singapore, an affiliate of KION Group, Germany, an existing shareholder with balance 66% shareholding in VMH. Crompton Greaves tumbled 8.35%. The company's consolidated net profit declined 64% to Rs 42.05 crore on 8% growth in revenue to Rs 2924 crore in Q2 September 2012 over Q2 September 2011. Earnings before interest, taxation, depreciation and amortization (EBITDA) declined 39.82% to Rs 136 crore in Q2 September 2012 over Q2 September 2011. The company announced the second quarter results after trading hours on Friday, 2 November 2012. The company said its operational performance was adversely impacted by one off event related to reengineering of power transformer product line. The company said that the restructuring project in its power business is on track and is expected to be completed in current financial year. The company said initiatives on four strategic levers for restoring value are on track. The company also said its consumer business in India is back on track. The company's new order intake rose 14% to Rs 2575 crore in Q2 September 2012 over Q2 September 2011. The order backlog stood at Rs 9400 crore on 30 September 2012. State-run Rural Electrification Corporation (REC) fell 0.52%. After trading hours on Friday, 2 November 2012, the company said its profit after tax jumped 53% to Rs 954 crore on 29% growth in total income to Rs 3313 crore in Q2 September 2012 over Q2 September 2011. Net interest income jumped 35% to Rs 1280 crore in Q2 September 2012 over Q2 September 2011. Loan disbursements rose 25% to Rs 7629 and loan sanctions jumped 147% to Rs 26549 crore in Q2 September 2012 over Q2 September 2011. REC's ratio of gross non-performing assets to outstanding loan (loan outstanding represents principal outstanding, excluding interest accrued and due) stood at 0.44% as on 30 September 2012, higher than 0.3% as on 30 September 2011. The ratio of net non-performing assets to loan outstanding (loan outstanding represents principal outstanding, excluding interest accrued and due) stood at 0.38% as on 30 September 2012, higher than 0.251% as on 30 September 2011. Realty stocks declined. DLF fell 1.73%. DLF last week said it has received the entire amount from Lodha Developers on sale of a land parcel in Mumbai. DLF on 1 November 2012 said that in August 2012, DLF along with its three wholly-owned subsidiaries -- DLF Cyber City Developers, DLF Universal and Jawala Real Estates had entered in to an agreement with Lodha Developers for divesting DLF's group's entire stake in Jawala Real Estates, which owned the land, for an enterprise value estimated to be Rs 2700 crore, subject to final adjustments at completion. Upon fulfillment of all conditions by the parties and receipt of payment of all amounts under the agreement totaling to Rs 2727 crore from Lodha, Jawala has ceased to be as subsidiary of the company, DLF said in a statement. The transaction is in line with the company's objective of divesting its non-strategic assets, DLF said. Among other realty stocks, Unitech (down 0.21%), Orbit Corporation (down 2.25%), Indiabulls Real Estate (down 1.99%) declined. HDIL was unchanged at Rs 99.90. Sobha Developers surged 4.94% after consolidated net profit jumped 47.8% to Rs 50.10 crore on 40.9% growth in net sales to Rs 414 crore in Q2 September 2012 over Q2 September 2011. The company announced the results after market hours on Friday, 2 November 2012. Metal shares declined as LMEX, a gauge of six metals traded on the London Metal Exchange, dropped 1.68% on Friday, 2 November 2012. Jindal Steel & Power (down 2.08%), Sail (down 0.95%), Hindalco Industries (down 2.72%), Tata Steel (down 0.95%) edged lower. Sterlite Industries (India) rose 0.59%. Pharma major Cipla advanced 1.02% ahead of its Q2 results today, 5 November 2012. ACC rose 1.70%. After trading hours on Friday, 2 November 2012, its cement dispatches rose 3.55% to 2.04 million tonnes in October 2012 over October 2011. Production rose 0.49% to 2.05 million tonnes in October 2012 over October 2011. Divi's Laboratories fell 3.88%. The company on Saturday, 3 November 2012, said its profit after tax rose 11.32% to Rs 118 crore on 33.89% growth in total income to Rs 474 crore in Q2 September 2012 over Q2 September 2011. The company said other expenses rose significantly in Q2 September 2012 due to purchase of power from the grid at higher prices due to power shortage in Andhra Pradesh and also due to increasing in manufacturing expenses. The company incurred foreign exchange loss of Rs 21 crore in Q2 September 2012, it said. Divi's Laboratories said it has capitalized fixed assets aggregating to Rs 191 crore during the six-month period April-September 2012, of which fixed assets amounting to Rs 124 crore have been capitalized at the DSN SEZ unit. Reliance Power shed 0.41%. During market hours today, 5 November 2012, the company reported 2.01% rise in consolidated net profit to Rs 240.22 crore on 57.38% increase in total income to Rs 1181.45 crore in Q2 September 2012 over Q2 September 2011. Consolidated operating revenues surged 121% to Rs 1079 crore in Q2 September 2012 over Q2 September 2011. Earnings Before interest, taxes, depreciation and amortization (EBITDA) spurted 227% to Rs 393 crore. The company said its 1200 megwatts (MW) Rosa plant in Uttar Pradesh generated 1,655 million units in Q2 September 2012, an increase of 65% over Q2 September 2012. The firm said the first 300 MW unit if the Butubori project has been synchronised and is ready for full load operations. The company added that its 40 MW Dhursar solar PV plant in Rajasthan generated a record 13.8 million units in Q2 September 2012, which resulted in a net profit of Rs 6.6 crore. Announcing the results, J.P. Chalasani, the Chief Executive Office of RPower, said: "We continue our robust financial performance in Q2 September 2012 as revenue from operating assets grew 121% to Rs 1079 crore. The company also mode rapid strides in the development of the 3,960 MW Sasan Ultra Mega Power Projects with the successful light-up of the boiler of the first 660 MW, supercritical unit. Coal production from the associated coal mines has also started and the project is all set to be commissioned in the coming weeks." Piramal Enterprises (PEL) dropped 0.01% to Rs 492.75. PEL today, 5 November 2012, reported a net loss of Rs 91.50 crore for Q2 September 2012, as against a net profit of Rs 52.90 crore in Q2 September 2011. Total operating income jumped 61.5% to Rs 863.5 crore in Q2 September 2012 over Q2 September 2011. The operating profit margin edged up to 8.5% in Q2 September 2012 from 5.1% in Q2 September 2012. PEL said Q2 September 2012 results include the financial results of Decision Resources Group Inc. (DRG) that was acquired in June 2012 and of NCE R&D unit which was demerged from Piramal Life Sciences into PEL in the year ended 31 March 2012 (FY 2012). DRG recorded sales of Rs 172.60 crore for in Q2 September 2012. PEL said DRG witnessed strong customer retention of 95% in Q2 September 2012 and it won major 2013 contracts from top 25 key customers. PEL's interest cost surged 523.46% to Rs 122.20 crore in Q2 September 2012 as the company raised debt to fund acquisition of DRG. PEL acquired DRG in June 2012 for $635 million. Marico jumped 3.3% to Rs 211.05. Marico during trading hours on Friday, 2 November 2012, said its consolidated profit after tax rose 10% to Rs 86 crore on 19% growth in revenue from operations to Rs 1159 crore in Q2 September 2012 over Q2 September 2011. Focus on franchise expansion led to a growth of 14% in volumes in Q2 September 2012 over Q2 September 2011, Marico said. The organic volume growth excluding the turnover of acquired Youth brands (Set Wet, Zatak and Livon) was 9%. These brands reported a top line growth of 28% in Q2 September 2012 over Q2 September 2011, Marico said in a statement. Marico said that the operating margin of the consumer products business (CPB) was about 17% in Q2 September 2012. The company believes that the operating margins in CPB in the range of 16% to 17% are sustainable in the medium term, Marico said in a statement. With regard to input costs, Marico said that there has been a decline in copra prices since Q4 March 2012. Average copra prices in Q2 September 2012 were about 33% lower than the corresponding period last year. Mario said that the company is likely to pass on part of the benefit in costs by way of temporary reduction in prices and promotional offers in select packs. The market prices of the other key inputs such as Safflower Oil and Rice bran oil were up 59% and 16%, respectively, during Q2 September 2012 as compared to Q2 September 2012. The cost push in these two is higher than that of other edible oils, Marico said. Marico said that it derives comfort and confidence from the pricing power that its brands enjoy. The company is confident that during an inflationary environment it can pass on the cost push to its consumers. Conversely, in a deflationary environment the company is willing to pass back part of the benefit to the consumer, especially in the lower price point (recruiter) packs in order to ensure regular upgrades from the unorganized market in case of the coconut oil category and from non Saffola users in the super premium refined edible oils category. This would ensure that the company continues to expand its volume base which is critical for an emerging market like India. Marico said it will continue to exercise a bias for franchise expansion as long as margins remain within a band and do not fall below a threshold at the Group level. Commenting on the business out for the short/medium term, Marico said it has positioned itself, strategically, in emerging markets viz. India, South Africa (part of BRICSA), Bangladesh, Vietnam and Egypt (Part of N-11 Group) and the Middle East. These are 11 countries generally considered to be sources of growth potential and of profitable investment opportunities, Marico said. The company said that the management is of the view that in emerging markets, focus on the long term is crucial. Long term success can be ensured only through stronger brands that enjoy loyal consumer franchises. Marico has therefore chosen to prioritize expansion of consumer franchise over expansion of margins, the company said in a statement. Marico said the medium to longer term outlook on all the company's three businesses remains positive. In the medium term, the company will focus on strengthening the building blocks for future value creation -- strong equities for its existing brands amongst its consumers, volume growth, robust new product pipeline and operational effectiveness. The focus of the stock market is currently on the second quarter earnings. Investors and analysts will closely watch the management commentary that would accompany the results which could cause revision in their future earnings forecast of the company for the current year or the next year. Tata Power and Reliance Infrastructure unveil Q2 results tomorrow, 6 November 2012. Hindalco Industries and its US unit Novelis Inc. unveil Q2 results on the same day. Bharti Airtel and Tata Motors unveil Q2 results on 7 November 2012. Sun Pharmaceuticals Industries and ONGC announce Q2 September 2012 results on 8 November 2012. Ranbaxy Laboratories unveils Q3 September 2012 results on the same day. Tata Steel, Jindal Steel & Power, Coal India, State Bank of India, and BPCL unveil Q2 results on 9 November 2012. DLF and Jaiprakash Associates unveil Q2 results on 12 November 2012. Siemens will announce its results for the year ended 30 September 2012 (FY 2012) on 23 November 2012. India's bourses are working with the country's stock-market regulator to prevent a recurrence of the "flash crash" this month, National Stock Exchange (NSE) Chief Executive Ravi Narain said in an interview to international daily newspaper on 14 October 2012. Erroneous orders placed by a single brokerage firm on 5 October 2012 sent the NSE's main index, the 50-unit S&P CNX Nifty, falling a massive 899.40 points or 15.5% in just a few seconds. Although most of the stocks recovered soon after a 15-minute trading halt, the incident created panic among traders, highlighting concerns that high-speed traders have brought instability to the markets. India's services sector grew at its slowest pace in six months during October as weakness in the United States and Europe hurt orders and forced firms to hire fewer workers, a survey showed on Monday, 5 November 2012, suggesting the worst of the economic slump is not over yet. The HSBC Purchasing Managers' Index for the services sector, based on a survey of around 400 companies, fell to 53.8 in October from September's seven-month high of 55.8. Services make up nearly 60% of India's economic output. Despite the two point month-on-month drop in the headline services reading, the index has, since November last year, held above the 50 mark that separates growth from contraction. After Second Quarter Review of Monetary Policy 2012-13, the Reserve Bank of India last week kept its key policy rate viz. the repo rate unchanged at 8% citing high inflation. The central bank cut the cash reserve ratio (CRR) requirement of scheduled banks by 25 basis points to 4.25%. The reduction in the CRR is intended to pre-empt a prospective tightening of liquidity conditions, thereby keeping liquidity comfortable to support growth, RBI said on 30 October 2012. It anticipates the projected inflation trajectory which indicates a rise in inflation before easing in Q4 March 2013, RBI said. While risks to this trajectory remain, the baseline scenario suggests a reasonable likelihood of further policy easing in Q4 March 2013, RBI said. RBI said its latest policy guidance will, however, be conditioned by the evolving growth-inflation dynamic, RBI said. Although inflation has remained persistently high over the past two years, it is important to note that during the 2000s, it averaged around 5.5%, both in terms of WPI and CPI, down from its earlier trend rate of about 7.5%, RBI said. Given this record, the conduct of monetary policy will continue to condition and contain perception of inflation in the range of 4% to 4.5%, RBI said. This is in line with the medium-term objective of 3% inflation consistent with India's broader integration into the global economy, RBI said. The core sector recorded a growth of 5.1% in September 2012, much higher than 2.5% growth in September 2011, the Ministry of Commerce & Industry said on 31 October 2012. The modest growth in the core sector in September 2012 was on account of double digit growth witnessed in the production of coal, petroleum refinery products and cement, a statement from the ministry said. The eight core industries viz. coal, crude oil, natural gas, petroleum refinery products, fertilizers, steel, cement and electricity, have a combined weight of 37.9 in the Index of Industrial Production (IIP). Prime Minister, Dr. Manmohan Singh said early this month that India's growth has decelerated, the country's exports have fallen and fiscal deficits are expanding mainly due to difficult economic conditions worldwide. Addressing a meeting of his new council of ministers convened after a cabinet reshuffle, Dr. Singh said that the area that is at the top of the government's agenda and will require particular attention and effort at multiple levels across government is infrastructure. "During the Twelfth Plan, we have set ourselves a target of realizing nearly 1 trillion dollars of investment in infrastructure sectors. To do so, we will have to overcome the constraints that currently deter or slow down this investment", Dr. Singh said. Fuel supply arrangements, security and environmental clearances and financing difficulties are among these constraints, Dr. Singh said. The growing gap between demand and supply of energy has emerged as a major constraint on India's development. It is a major factor in widening the deficit on India's current account as well the fiscal deficit. "It is imperative that we come to a common understanding on these issues and work out mechanisms and remedial measures that will enable us to tackle these critical deficiencies on a priority basis", Dr. Singh said. A news agency quoted Finance Minister P. Chidambaram as saying on Sunday, 4 November 2012, that the government will borrow more to fund a fiscal deficit that is now estimated at 5.3% of GDP this fiscal year. Previously, the government had pegged gross market borrowing for the current fiscal year at Rs 5.7 lakh crore to finance a fiscal deficit that was originally projected at 5.1%. Finance Minister Mr. P. Chidambaram said last week that the best efforts would be made to contain fiscal deficit at 5.3% during the current financial year. Addressing the 4th meeting of the Consultative Committee attached to his Ministry on the issue of "The Economic Impact of Internal and External Debt", Chidambaram said the strategy to achieve the 5.3% fiscal deficit target would be to maximize revenue collections and control expenditure. Chidambaram further said that serious efforts would also be made to bridge the gap in the Current Account Deficit (CAD) which presently stood at $70.3 billion. He said there are mainly three major heads to do the same viz. through FDI, FIIs and ECBs (External Commercial Borrowings). In this regard, he mentioned that capital inflows through FDI and FIIs are vital in meeting the current account deficit. He said that the FDI is not an option, but an imperative. He sought the support of members of all the political parties in strengthening the government's efforts to contain both the fiscal deficit and current account deficit. The Members of the Consultative Committee representing different political parties participated in the discussion and gave various suggestions including following the credible path of fiscal consolidation, framing of debt and fiscal management policy, and keeping debt to GDP ratio at a low level among others. Many members suggested that there is as a need to review the functioning of various Central Sponsored Schemes (CSS) which are not able to deliver the benefits. The Finance Minister said that the Finance Ministry is in favour of fewer CSS with larger amount so that desired objectives and targets are achieved. Chidambaram last week laid out a roadmap to put the government's fiscal house in order, stressing the need to control expenses and generate more revenue as it targets budget deficits of 5.3% of gross domestic product this fiscal year and 4.8% next year. The fiscal deficit stood at 5.8% in the year ended 31 March 2012. The plan that Mr. Chidambaram unveiled also envisages bringing down the government's budget deficit to 4.2% of GDP in the fiscal year ending March 31, 2015; 3.6% in fiscal 2016 and 3% in fiscal 2017. The announcement of the fiscal consolidation plan comes at a time when there are concerns that the government may increase its expenditure on social-sector programs in its budget for the next fiscal year through March 2014 as it prepares for next general elections, due before May 2014. The Department of Disinvestment has obtained approval of the Cabinet for disinvestment in Hindustan Copper, Nalco, Sail, RINL, Bhel, Oil India, MMTC and NMDC. The government expects to realise the budgeted receipts under 'disinvestment' and 'non-tax receipts', Chidambaram said early this week at time of announcing the roadmap for fiscal consolidation. The Finance Ministry last month said that the government has decided not to proceed for the time being with the initial public offer for divestment 10% equity in Rashtriya Ispat Nigam (RINL). The government remains committed to the disinvestment programme and it will evaluate the decision in due course keeping in view all relevant factors, the statement from the Finance Ministry added. The Ministry of Agriculture on Friday, 2 November 2012, said that as per reports received from different states, sowing of Rabi or winter crops has begun in some parts of the country. Preliminary data shows that pulses have been grown in 18.79 lakh hectares (LHa) so far. This acreage is more than double the average area under pulses at this time of the year (9.08 LHa) but is lower than the acreage of this time last year (27.23 LHa), a statement from the ministry said. The outlook for Rabi or winter crops has improved following wide-spread rains in August and September. The four-month southwest monsoon season that starts from June accounts for almost 70% of total annual moisture that Indian soil receives in a year. Winter crops will gain from high soil moisture and brimming water reservoirs. The government has set food grain target for 2012-13 at 249.52 million tonnes. The Ministry of Agriculture on 24 September 2012 said as per the first advance estimates of production of Kharif crops, 117.18 million tonnes (MT) foodgrains is likely to be produced in the current Kharif season. On the political front, Prime Minister Dr. Manmohan Singh announced a major reshuffle of his Council of Ministers on 28 October 2012. In the biggest reshuffle of the Congress-led United Progressive Alliance Cabinet, Dr. Singh inducted 17 new faces and a total of 22 ministers giving several new and young faces a chance to prove their mettle as his government tries to remove the taint of scams and non-performance from its progress report. The Congress has also shown that it is the big brother in the UPA by having 69 of the 79 ministers, including the Railways. On the occasion of taking additional charge as Minister of Parliamentary Affairs, Union Urban Development Minister Mr. Kamal Nath said on 29 October 2012 said that he will attempt to bring consensus among all political parties on national policies that are formed in the national interest that is dear to all parties. Answering queries from the media persons how he intends to face the challenge of running a smooth winter session of parliament starting next month, the minister highlighted the prominence of the parliament in the democratic system of the country and expressed desire that all political parties will discuss and debate the issues of national interest without resorting to politics of disruption rising above narrow political interests. Bahujan Samaj Party's (BSP) chief Mayawati on 10 October 2012 said she has not taken a decision yet on whether or not to continue support to the UPA. Mayawati said that her party has left the final decision on her and she will soon take a decision. The BSP chief said the BSP is ready for early Lok Sabha elections. Attacking the UPA over corruption, Mayawati said that the government has not taken any strong steps to control corruption. BSP provides outside support to the Congress led UPA government at the Centre which has been reduced to a minority government after Trinamool Congress (TMC) withdrew support to the UPA in September 2012. The TMC withdrew support from the UPA to register its protest against the reformist decisions viz. allowing 51% FDI in multi-brand retail, increasing the diesel price by Rs 5 per litre, and imposing a cap on the number of subsidized LPG cylinders per family at six. Prime Minister Dr. Manmohan Singh on 21 September 2012 said that the time has come for hard decisions. Explaining the rationale for the hike in diesel price, capping of subsidised LPG cylinders per household per year and allowing foreign direct investment in multi-brand retail trade, Dr. Singh said that rapid growth in the economy is necessary to raise the government's revenue for financing its programmes in education, health care, housing and rural employment. Dr. Singh said that India must avoid high fiscal deficit which could cause a loss of confidence in the economy. The government braved intense political opposition and initiated economic reform measures in September 2012, by allowing 51% foreign direct investment (FDI) in multi-brand retail. The government also notified the relaxed conditions for single brand retail as well as the norms for allowing 49% investment by foreign airlines in Indian carries and permitted greater foreign investment in some sections of the broadcasting sector. The Cabinet Committee on Political Affairs (CCPA) raised price of heavily subsidised diesel by Rs 5 per liter on 13 September 2012 to balance government's fiscal deficit situation. The CCPA also restricted the supply of subsidized LPG cylinders to each consumer to six cylinders (of 14.2 kg) per annum. The Union Cabinet on 4 October 2012 approved a long-pending proposal to raise the foreign investment limit in insurance companies to 49% from 26%. It also approved a plan to open up the pension sector to overseas investors, allowing them to own stakes of up to 49% in local companies. Both the proposals viz. the increase in foreign investment ceiling in insurance sector and opening of pension sector to overseas investors will require Parliament's approval. Himachal Pradesh (HP) on Sunday reportedly registered a record high polling of around 75% in elections for 68 assembly constituencies. In 2007, the state had registered 71% turnout. It will take long time to know the outcome of the HP assembly polls as the counting of assembly elections in HP and Gujarat will take simultaneously after assembly polls take place in Gujarat in two phases on 13 and 17 December 2012. Counting of votes of assembly elections in Gujarat and HP Pradesh will take place on the same day on 20 December 2012 European markets declined on Monday, 5 November 2012, as uncertainty about the outcome of the U.S. presidential election weighed on investors' minds. Key benchmark indices in UK, Germany and France were down by 0.43% to 0.77%. Greece was also on investors mind, as parliament prepared to vote on the latest rounds of austerity measures later this week. Asian stocks edged lower on Monday, 5 November 2012, as data showing higher than expected addition of jobs in the United States in October 2012 led investors to question the longevity and future size of easing measures from the Federal Reserve and as caution prevailed ahead of closely-fought US presidential election. Key benchmark indices in China, Hong Kong, Japan, Indonesia, South Korea, Taiwan and Singapore were down by between 0.14% to 0.83%. China's manufacturing activity rose to a multi-month high in October, according to rival business surveys released last week, bolstering the view that the world's second largest economy has turned the corner. China's Communist Party start its 18th Congress on Thursday, 8 November 2012, when 2,270 delegates meet over several days to decide on changes to the organization's top leadership. Chinese President Hu Jintao is expected to hand over the role of party chief to heir apparent Xi Jinping, among other changes. Trading in US index futures indicated that the Dow could gain 15 points at the opening bell on Monday, 5 November 2012. US stocks fell sharply on Friday, 2 November 2012, as cheer over better-than-expected employment data gave way to nervousness ahead of the US presidential election. The Dow Jones Industrial Average dropped 139.46 points, or 1.1%, to 13,093.16. The S&P 500 index lost 13.39 points, or 0.9% to 1,414.20 and the Nasdaq Composite index fell 37.93 points, or 1.3%, to 2,982.13. Data on Friday showed the US created a better-than-expected 171,000 jobs in October and hiring rose faster in prior months than previously believed, but the politically sensitive unemployment rate rose a tick to 7.9%. Election for a new president in the United States, the world's biggest economy, takes places tomorrow, 6 November 2012. The presidential election between President Barack Obama and Republican challenger Mitt Romney is expected to be a close race, with a weekend poll showing Obama leading Romney 48% to 47%. Investors are worried about US fiscal cliff. The "cliff" refers to the year-end deadline for the expiration of hundreds of billions of dollars worth of tax cuts and the triggering of $109 billion in across-the-board spending cuts. The US Congress created the hazardous deadline of 31 December 2012 in August 2011 when it agreed to a deficit deal as a way out of a deadlock over raising the US debt ceiling. The appointment of next chairman of the US Federal Reserve is being closely watched by investors as current chairman Ben Bernanke's term ends on 31 January 2014. Although Bernanke is eligible to serve another four years, he has hinted that he may not seek another term. In addition, Republican presidential candidate Mitt Romney has made it clear that if he wins the US Presidential election, he will appoint a new chairman whether or not Bernanke seeks another term. As per market speculation, if Mitt Romney is elected as US President, Columbia University business school dean Glen Hubbard or Harvard economist Greg Mankiw are most likely to replace Ben Bernanke as the next chairman of the Federal Reserve. Among other names that have come up in various press reports as Romney's possible choice as next Fed chief are former Fed Governor Kevin Warsh and Stanford University economist John Taylor. If President Barack Obama wins US presidential election for the second term, the most likely choices are Roger Ferguson, former Fed vice chairman, or Janet Yellen, current vice chairwoman of the Fed, according to reports. Among other names that have come up in various press reports as Obama's possible choice as next Fed chief are former Treasury Secretary Lawrence Summers, current Treasury Secretary Tim Geithner and New York Fed President William Dudley.