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Thursday, January 31, 2013
Markets trade flat ahead of Jan F&O expiry
Sell-off in auto, technology, CG, metal, banking and HC led the markets lower. Volatility is high as investors are cautious ahead of January derivatives contract expiry Global News: Asia stock markets are trading mostly lower on Thursday (January 31, 2013), with Japanese, Hong Kong and Australian markets backing away from multiyear highs, as investors parsed earnings reports and global economic data. Coming to individual stocks, Suzlon Energy is trading with gains after Suzlon Group wins 350 MW Canada Order: largest REpower contract to date. BSE 30-Sensex stocks: Gainers - ONGC up by 0.90%, BHEL up by 0.76% and Bajaj Auto 0.73%. Losers - Tata Motors fell by 1.07%, RIL fell by 1% and Wipro fell by 0.96%. At 9.55 am, the Sensex was trading at 19963, 43 points lower and the Nifty was trading at 6047, down by 8 points.
Bullions glitter
Weak US GDP data and weak dollar boost prices Bullion metal prices ended substantially higher on Wednesday, 30 January 2013. Prices rose for second straight day following weaker than expected fourth quarter GDP data at US and a weak dollar. A friendly Federal Open Market Committee meeting statement on Wednesday afternoon also pushed prices higher. Heavy short covering and bargain hunting were featured in gold and silver. Gold for February delivery ended higher by $19.1 or 1.2%, to settle at $1,679.9 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday. The most-active April gold contract added $18.90, or 1.1%, to settle at $1,681.60 an ounce. March silver closed higher by 99 cents, or 3.2%, at $32.18 an ounce on Wednesday. The dollar index, which weighs the strength of the dollar against a basket of six other currencies fell by 0.2% on Wednesday. The big news of the day for the precious metals was a surprisingly weak U.S. economic report. Fourth-quarter U.S. GDP contracted by 0.1% on an annual basis. It is the first U.S. GDP decline in over three years. The market place was expecting the figure to be up 1.0%. The gold and silver markets popped higher immediately following the GDP report, on ideas the weak data will prompt the Federal Reserve to adhere to is very easy money policies presently in place. Then on Wednesday afternoon the two-day FOMC meeting ended with its official policy statement indicating still-tepid U.S. economic growth that suggests the central bank will keep its monetary policy very easy, including continuing to purchase government bonds. Most traders expected the Fed to keep U.S. monetary policy unchanged. However, traders also were watching for any nuances that were included in the Fed statement, which could provide early clues on when the Fed will stop its asset purchases. Overnight, it was reported Euro zone consumer sentiment continues to creep higher, according to the latest figures released from the European Commission Wednesday. The Euro currency continues to rally and hit a fresh 13-month high against the U.S. dollar on Wednesday, amid better investor sentiment toward the European Union and its handling of its sovereign debt crisis. Traders and investors are for the U.S. employment report is out Friday morning. At the MCX, gold prices for April delivery closed higher by Rs 91 (0.3%) at Rs 30,862 per ten grams. Prices rose to a high of Rs 30,927 per 10 grams and fell to a low of Rs 30,621 per 10 grams during the day's trading. At the MCX, silver prices for March delivery closed higher by Rs 1155 (2%) at Rs 59,061/Kg. Prices opened at Rs 58,030/kg and rose to a high of Rs 59,139/Kg during the day's trading.
Sensex falls below 20,000
Key benchmark indices edged lower amid initial volatility amid weakness in Asian stocks. The barometer index, BSE Sensex, fell below the psychological 20,000 mark in opening trade. The Sensex was down 24.96 points or 0.12%, off 28.79 points from the day's high and up 14.27 points from the day's low. Index heavyweight and cigarette maker ITC edged higher in early trade.Another index heavyweight Reliance Industries (RIL) edged lower. The market breadth, indicating the overall health of the market, was positive. Oil India fell after the company after trading hours on Wednesday, 30 January 2013, said that Government of India will sell 6.01 crore shares constituting 10% of the total paid up capital of the company via Offer for Sale (OFS) through the stock exchanges mechanism on Friday, 1 February 2013. Lupin and Grasim Industries rose ahead of Q3 results today, 31 January 2013. ICICI Bank and Punjab National Bank declined ahead of Q3 results. Siemens rose ahead of its Q1 December 2012 results today, 31 January 2013. The market may remain volatile today, 31 January 2013, as traders roll over positions in the futures & options (F&O) segment from the near month January 2013 series to February 2013 series. The January 2013 F&O contracts expire today, 31 January 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 906.36 crore on Wednesday, 30 January 2013, as per provisional data from the stock exchanges. Asian stocks declined on Thursday, 31 January 2013, after the US Federal Reserve said after the conclusion of a two-day meeting on US interest rates on Wednesday, 30 January 2013, that that US economic activity has paused in recent months after data on Wednesday, 30 January 2013, showed a surprise economic contraction in US economy in Q4 December 2012. At 09:28 IST, the BSE Sensex was down 24.96 points or 0.12% to 19,980.04. The index rose 3.83 points at the day's high of 20,008.83 in early trade. The index fell 39.23 points at the day's low of 19,965.77 in opening trade. The S&P CNX Nifty was down 5.60 points or 0.09% to 6,050.15. The index hit a high of 6,057.70 in intraday trade. The index hit a low of 6,044.60 in intraday trade. The market breadth, indicating the overall health of the market, was positive. On BSE, 835 shares rose and 641 shares fell. A total of 79 shares were unchanged. The total turnover on the BSE amounted to Rs 187 crore by 09:30 IST. Among the 30-share Sensex pack, 19 stocks fell while the rest of them rose. Index heavyweight Reliance Industries (RIL) fell 0.51% to Rs 894.25. The stock had hit 52-week high of Rs 954.80 in intraday trade on 21 January 2013. RIL early this week said it has raised $800 million via perpetual bonds carrying interest rate of 5.875%. The company said it will use the proceeds to fund its ongoing capital expenditure in the infrastructure sector. The transaction was about 4 times over-subscribed with an order book of close to $3 billion from high quality investor accounts, RIL said. The transaction witnessed participation from more than 160 accounts from Asia, Europe and the United States, RIL said. Index heavyweight and cigarette maker ITC rose 0.33% to Rs 304.60. The stock hit record high of Rs 307 on Wednesday, 30 January 2013. ITC on 18 January 2013 said its net profit rose 20.62% to Rs 2051.85 crore on 22.41% growth in total income to Rs 8041.90 crore in Q3 December 2012 over Q3 December 2011. The Ministry of Health and Family Welfare in October 2012 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. State Bank of India (SBI) rose 0.19%. SBI after trading hours on Wednesday, 30 January 2013, said that the bank has reduced the base rate by 5 basis points (bps) to 9.7% per annum (p.a.) from 9.75% per annum effective from 4 February 2013. The bank has also reduced the Benchmark Prime Lending Rate by 5 bps to 14.45% p.a. from 14.5% p.a. effective from 4 February 2013. Oil India fell 2.21%. The company after trading hours on Wednesday, 30 January 2013, said that Government of India will sell 6.01 crore shares constituting 10% of the total paid up capital of the company via Offer for Sale (OFS) through the stock exchanges mechanism on Friday, 1 February 2013. The OFS will start at 9:15 IST and end at 15:30 IST on Friday, 1 February 2013. The floor price for the OFS will be disclosed after market hours on Thursday, 31 January 2013. Shares of Oil India dropped 2.3% to settle at Rs 527.15 on BSE on Wednesday, 30 January 2013, ahead of the announcement. GoI currently holds 78.43% stake in Oil India. The GoI's stake would come down to 68.43% after the stake sale. The Cabinet Committee on Investment on Wednesday, 30 January 2013, directed the Ministry of Defence and Ministry of Petroleum and Natural Gas to resolve differences between them within one month relating to the exploration and production activities in 39 NELP oil and gas blocks. Colgate-Palmolive (India) shed 1.19%. Colgate-Palmolive (India) after trading hours on Wednesday, 30 January 2013, said its net profit declined 3.91% to Rs 111.05 crore on 14% growth in net sales to Rs 762.70 crore in Q3 December 2012 over Q3 December 2011. Colgate-Palmolive (India) said that the company achieved volume growth of 9% during the nine-month period April-December 2012 over the same period last year. The toothpaste volume market share has increased to 54.2% during April-December 2012 from 52.4% during April-December 2011. Toothpaste registered a strong volume growth of 10% through the company's flagship brands Colgate Dental Cream, Colgate Active Salt, Colgate Total, and Colgate Max Fresh, Colgate-Palmolive (India) said. With focused efforts and new launches during the year, the toothbrush volume market share increased by 370 basis points to 39.5% during April-December 2012 from 35.8% during April-December 2011. In the mouthwash category, the company registered a volume market share of 26.7% during April-December 2012. Despite significant inflationary pressures, the company has maintained its gross margin through prudent price increases and cost management efforts, Colgate-Palmolive (India) said. These continuing efforts and focused programs to enhance efficiencies and to reduce costs continue to yield strong, positive results that enabled the company to maintain margin and fund investments in strengthening brand equity and business, Colgate-Palmolive (India) said. Aditya Birla Nuvo rose 0.06%. Aditya Birla Nuvo after trading hours on Wednesday, 30 January 2013, said that the board directors of the company has taken a decision to go for brownfield expansion of the company's urea capacity by 3,850 TPD at existing fertilizer complex at Jagdishpur in Uttar Pradesh at a capital expenditure of around Rs 4000 crore. Power Finance Corporation (PFC) gained 2.47%. PFC after market hours on Wednesday, 30 January 2013, reported 1% growth in net profit to Rs 1117 crore on 36% growth in total income to Rs 4466 crore in Q3 December 2012 over Q3 December 2011. Profit before tax and before extra-ordinary items such as translation/actual exchange gain/loss, prior period adjustments and restructuring/prepayment premium etc. jumped 48% to Rs 1557 crore in Q3 December 2012 over Q3 December 2011. PFC's net interest income jumped 53% to Rs 1677 crore in Q3 December 2012 over Q3 December 2011. Interest spread increased by 93 basis points (bps) to 3.08 in Q3 December 2012 from 2.15% in Q3 December 2011. Sanctions, excluding R-APDRP jumped 45% to 18144 crore in Q3 December 2012 over Q3 December 2011. Disbursements, excluding R-APDRP rose 28% to 12621 crore in Q3 December 2012 over Q3 December 2011. Gross NPA edged up to 0.92% as on 31 December 2012 from 0.54% as on 31 December 2011. Net NPA edged up to 0.82% as on 31 December 2012 from 0.48% as on 31 December 2011. The board of directors of the company at its meeting on 30 January 2013 declared and approved the payment of interim dividend at the rate of Rs 6 per share for the year ending 31 March 2013. ICICI Bank (down 0.43%), and Punjab National Bank (down 0.19%) declined ahead of their Q3 results today, 31 January 2013. Lupin (up 0.72%) and Grasim Industries (up 0.6%) rose ahead of their Q3 results today, 31 January 2013. Siemens rose 0.09% ahead of its Q1 December 2012 results today, 31 January 2013. Union Bank of India rose 0.37%. Union Bank of India after trading hours on Wednesday, 30 January 2013, said its board of directors has approved raising of equity capital up to Rs 1000 crore on preferential/QIP/rights basis towards capital infusion in addition to Rs 1500 crore already approved at a board meeting held on 27 December 2012 The focus on the stock market is currently on Q3 December 2012 results. Investors and analysts will closely watch the management commentary that would accompany the result which could cause revision in their future earnings forecast of the company for the current year and or next year. IDFC, Bharat Heavy Electricals and Bharti Airtel announce Q3 results tomorrow, 1 February 2013. Bank of Baroda unveils Q3 results on 4 February 2013. Cipla unveils Q3 results on 6 February 2013. ACC and Ambuja Cement announce Q4 December 2012 results on 7 February 2013. Mahindra & Mahindra, Sun Pharmaceuticals Industries and Hindalco Industries unveil Q3 results on 8 February 2013. ONGC and Tata Power Company unveil Q3 results on 11 February 2013. Coal India and BPCL unveil Q3 results on 13 February 2013. Tata Motors and Dr. Reddy's Laboratories unveil Q3 results on 14 February 2013. Ranbaxy Laboratories unveils Q4 December 2012 results on 26 February 2013. Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for January 2013 tomorrow, 1 February 2013. The HSBC manufacturing Purchasing Managers' Index (PMI), which gauges the business activity of India's factories but not its utilities, rose to six-month high of 54.7 in December 2012 from 53.7 in November 2012. Markit Economics will unveil HSBC India Services PMI for December 2012 on 5 February 2013. The HSBC services Purchasing Managers' Index, based on a survey of around 400 companies, rose to 55.6 in December 2012 from November's 52.1. Services make up nearly 60% of India's economic output. The Reserve Bank of India (RBI) on Tuesday, 29 January 2013, announced a 25 basis points reduction in its key policy rate viz. the repo rate to 7.75% from 8% after a monetary policy review. The central bank also announced a reduction of 25 basis points in the cash reserve ratio (CRR) to 4% from 4.25% effective the fortnight beginning 9 February 2013. As a result of the reduction in the CRR, around Rs 18000 crore of primary liquidity will be injected into the banking system, RBI said. Keeping in view the expected moderation in non-food manufactured products inflation, domestic supply-demand balances and global trends in commodity prices, the baseline WPI inflation projection for March 2013 has been revised downwards from 7.5% set out in the SQR Second Quarter Review (SQR) of Monetary Policy in October 2012 to 6.8%, RBI said. The central bank has also lowered the baseline projection of GDP growth for 2012-13 to 5.5% from 5.8% given in the SQR. With headline inflation likely to have peaked and non-food manufactured products inflation declining steadily over the last few months, there is an increasing likelihood of inflation remaining range-bound around current levels going into 2013-14, the Reserve Bank of India (RBI) said. This provides space, albeit limited, for monetary policy to give greater emphasis to growth risks, the central bank said in its policy guidance. This policy guidance will, however, be conditioned by the evolving growth-inflation dynamic and the management of risks from twin deficits viz. the current account deficit and fiscal deficit, RBI said. The next mid-quarter review of Monetary Policy for 2012-13 will be announced on 19 March 2013. The central bank signaled that there is less room for aggressive policy rate cuts amid any negative surprise emanating from inflation and the twin deficits. Finance minister P. Chidambaram on 22 January 2013 said that the government is on pace to hit its $5 billion target for sales of stakes in state-owned companies before the fiscal year ends in March. The disinvestment will continue next year at the same pace or faster, he said. Mr. Chidambaram said that the government must act to close its gaping current account deficit, a legacy of huge import bills for oil and gold and one reason behind the rupee's poor performance over the past year. The finance minister said India's economy is on the right track and he dismissed any suggestion that the sovereign debt rating could be downgraded. Mr. Chidambaram said the government is committed to lowering the fiscal deficit by 0.6% a year for the next five years. The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The deficit target is 5.3% of gross domestic product for the current fiscal year through March, 4.8% in the next fiscal year, and 3% by the end of the year through March 2017. The government's move to raise diesel prices is positive, but it must keep up the momentum of economic reforms for there to be a material impact on its fiscal position, Moody's Investors Services said on 19 January 2013. The diesel price hike is another signal that the government is willing to take some long-delayed, politically difficult decisions, said Atsi Sheth, Moody's sovereign analyst for India. While the diesel price hike will have a fairly small impact on the actual budget deficit, the fiscal position would improve if fuel subsidies continue to be reduced over time, Ms. Sheth said. She also said Moody's maintains its sovereign rating at Baa3 for India, with a stable outlook. The Ministry of Finance on 14 January 2013 said that the government has decided to defer the implementation of the General Anti Avoidance Rules or GAAR by two years until 1 April 2016 and that it has accepted major recommendations of the Parthasarathi Shome Committee on GAAR with some modifications. The provisions of GAAR will apply to only those foreign institutional investors (FIIs) who seek to take advantage of the double taxation avoidance treaties India has with different countries. The rules won't apply to the non-resident individual investors who put money with the FIIs. Any investments made before 30 August 2010 won't be examined under GAAR. Finance Minister Mr. Chidambaram said that the GAAR provisions strike a balance between the government's need for revenue generation and investors' interests. Chidambaram early this month said attracting foreign funds to India has become an economic imperative. Commerce, Industry and Textiles Minister Mr. Anand Sharma on 9 January 2013 said that the Joint Working Group on Indo-Mauritius Double Taxation Avoidance Convention (DTAC), which is scheduled to meet in February 2013, would be able to take the deliberations forward. The government on 17 January 2013 allowed PSU OMCs to increase diesel prices by a small margin from time to time, a decision aimed at reducing the government's oil subsidy burden and fiscal deficit and improving the government's finances. Oil Minister Veerappa Moily said after a meeting of the Union Cabinet that there was an earlier proposal to deregulate diesel prices, and in pursuance of that, oil companies have been authorised to make price corrections from time to time. Finance Minister P. Chidambaram on 17 January 2013 said the government will factor in the reduction in subsidies and its impact on the deficit once the retailers say how much they intend to increase prices by. The government on 17 January 2013 also said it has increased the limit of subsidized cooking-gas cylinders to nine per year a family from six now. Mr. Moily said that the raising of the cap will cost the government about an additional Rs 10000 crore a year. Bahujan Samaj Party (BSP) chief Mayawati slammed the UPA government for its decision to deregulate diesel prices and said that it would affect prices and hit common man badly. She, however, ruled out the possibility of withdrawing BSP's support to the government, saying she did not want to destabilise it as the general election is not too far. BSP provides outside support to the Congress led UPA government which has already been reduced to a minority government after Trinamool Congress withdrew support to the government in September last year. Asian stocks declined on Thursday, 31 January 2013, after the US Federal Reserve said after the conclusion of a two-day meeting on US interest rates on Wednesday, 30 January 2013, that that US economic activity has paused in recent months after data on Wednesday, 30 January 2013, showed a surprise economic contraction in US economy in Q4 December 2012. Key benchmark indices in Indonesia, Taiwan, Japan, South Korea, Hong Kong and Singapore were down by 0.13% to 0.61%. China's Shanghai Composite rose 0.1%. US stocks dropped on Wednesday, 30 January 2013, retreating from five-year highs after the Federal Reserve said that economic activity paused in recent months, while fourth-quarter data showed a surprise economic contraction. The Federal Reserve on Wednesday maintained its aggressive bond-buying policy given the downside risks to the economic outlook. In a statement after a two-day meeting, the Fed said it would keep buying $85 billion a month in mortgage bonds and Treasurys. The Fed has kept its federal funds target for short-term rates unchanged at a record-low range of 0 to 0.25% for four years. The Commerce Department reported fourth-quarter gross domestic product dropped at a 0.1% annual rate, the worst performance since the second quarter of 2009, when the economy remained in recession. The influential US nonfarms payroll data for January 2013 is due for release tomorrow, 1 February 2013.
Wednesday, January 30, 2013
Corporate News of the day - Jan 30 2013
Bharti Airtel has bid for a telecom licence in Myanmar as India's biggest private telecom company looks to expand its overseas operations. (ET) Reliance Industries has raised US$800mn through senior unsecured perpetual bond with no maturity at an annual coupon of 5.875%. The bond is redeemable, only at the company’s option, at any time after five years. (ET) State Bank of Mysore is to go for institutional placement programme to raise Rs700-800mn by March 31, to increase minimum public shareholding to 10%. (BL) Technicians of Jet Airways have been protesting against an alleged intimation by the airline company to freeze salaries at the current level. The airline’s pilots have decided to meet on the same issue in the next few days. (BL) SpiceJet will connect Delhi with Guangzhou (China) from February 8 by deploying a 189-seater Boeing 737 aircraft on this route. (BL) HCL Technologies said it has entered into a multi-year, multi-million dollar engineering services agreement with UK-based Cobham, a technology company serving the aerospace and defence industry. (BL) Hindustan Petroleum Corp Ltd is planning to invest Rs6-7bn to set up its second underground liquefied petroleum gas storage facility in Mangalore. The company could rope in its partner, Total SA of France, to build the cavern. (BS) GMR Energy Ltd, a subsidiary of diversified GMR Group, has started power generation at its thermal power plant in Dhenkanal district. The company has commissioned the first unit of its proposed 3X350 MW power project and synchronised it with the central grid network. (BS) Glenmark may soon foray into the injectible oncology segment in the US and Europe. The company has already started filing applications for drug approval in these markets. (BS) Mortgage lender HDFC raised Rs5bn through non-convertible debentures for general corporate requirements. (BL) Kerala-based electrical appliances manufacturer V-Guard Industries, which had launched induction cook tops earlier, is planning to now launch mixer grinders. (BS)
Market seen opening slightly higher
Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 9 points at the opening bell. The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month January 2013 series to February 2013 series. The January 2013 F&O contracts expire tomorrow, 31 January 2013. Asian stocks edged higher on Wednesday, 30 January 2013, ahead of a policy decision from the US Federal Reserve, while selected Japanese shares benefitted from smartphone exposure. Idea Cellular's consolidated net profit rose 13.72% to Rs 228.60 crore on 10.88% growth in gross revenue to Rs 5578.50 crore in Q3 December 2012 over Q3 December 2011. On a standalone basis, net profit rose 13.21% to Rs 191 crore on 10.8% growth in gross revenue to Rs 5613.50 crore in Q3 December 2012 over Q3 December 2011. The result was announced after market hours on Tuesday, 29 January 2013. In-spite of regulatory interventions impacting subscriber acquisition and the value added services business model, Idea reported a sequential quarterly revenue growth of 5% in Q3 December 2012. The quarterly revenue growth is primarily led by expansion of Voice Minutes of 5.2% to 132.2 billion minutes in Q3 December 2013 from 125.6 billion minutes in Q2 September 2012, indicating consumer demand for voice telephony remains robust, Idea Cellular said in a statement. The company clocked 2.9 million VLR subscriber additions in Q3 December 2012, against 0.6 million additions in Q2 September 2012, despite implementation of stricter verification norms. Contrary to expectation, the Average Realised Rate per Minute (ARPM) fell to 41.1 paisa in Q3 December 2013 from 41.3 paisa in Q2 September 2012. The challenge on ARPM is on account of fall in the Non-Voice Revenue contribution to 14.6%, driven down 1% over the last quarter, by TRAI's new VAS regulation, Idea said. The standalone EBITDA rose to Rs 1317.30 crore in Q3 December 2012 from Rs 1261.50 crore in the previous quarter. The EBITDA margin is marginally lower at 23.5% on account of higher inflationary burden in 'Network operating expense' led by full quarter impact of increased diesel price and larger outlay for 'Advertising & Business Promotion' expense. The cost of acquiring a customer also increased to meet the new guidelines on subscriber verification, largely offsetting the benefit of lower customer churn of 6.9% and reduced gross additions, Idea said. Adverse currency movement resulted in forex loss of Rs 13.30 crore in Q3 December 2012, against a forex gain of Rs 18 crore in Q2 September 2012, reflected in increased interest and finance cost (net), Idea said. The company had net debt of Rs 11680 crore as on 31 December 2012 with net debt to equity ratio at 0.83 and Net Debt to EBITDA (Annualised) ratio for the quarter at 2.22. The Net-Worth of Rs 14020 crore, together with an average (last four quarters) cash profit of Rs 1100 crore per quarter, provides a solid foundation to support the company's strategic intent, Idea Cellular said in a statement. The capex guidance for FY 2013 stands at Rs 3000, excluding spectrum payout. Idea Cellular said that the company's global scale of operations, serving around 114 million quality subscribers, generating over 1.44 billion minutes per day, provides the company a strong hedge to counter the emerging headwinds from the uncertain regulatory interventions and weak macroeconomic environment. Idea continues to invest long term value creators -- it launched 2,961 new sites (2G+3G), expanded optical fibre network to 71,600 km and strengthened network capacities in NLD, ILD, ISP, Data Services and Devices. Out of the existing 114 million subscriber base, the number of Idea customers adopting data services has grown to 21.75 million, now contributing 5.7% to total service revenue. The data volume grew by 14.8% to 9,575 TB in Q3 December 2012 (8,339 TB in Q2 September 2012), while revenue on sequential quarter basis grew by 10.8%. The active 3G subscriber base for the company now stands at 4.1 million. Idea is confident to overcome the current uncertain regulatory phase, emerge competitively stronger as the overcapacity comes to an inevitable decline, consolidate its position in the telecom voice market and aggressively expand in the ever evolving wireless broadband business, the company said in a statement. Glenmark Pharmaceuticals' consolidated net profit jumped 375.03% to Rs 212.91 crore on 33.96% growth in revenues to Rs 1381.25 crore in Q3 December 2012 over Q3 December 2011. During the quarter, the company received out-licensing revenue of Rs. 49.30 crore from Forest Laboratories. Excluding out-licensing income, Glenmark's revenue jumped 32.24% on year on year basis in Q3 December 2012. The result was announced after market hours on Tuesday, 29 January 2013 Commenting on the third quarter results, Glenn Saldanha, Chairman & MD, Glenmark Pharmaceuticals said: "We continue to maintain our high growth trajectory by recording a strong sales growth of over 30% for the third quarter. The US, India and Russia markets performed exceptionally well and continue to drive growth for the company. The option agreement with Forest Laboratories for the development of novel mPGES-1 inhibitors and the USFDA approval for Glenmark's in-licensed molecule Crofelemer has come as a big boost and renewed validation for our world-class Drug Discovery capabilities. While the option agreement with Forest Labs marks our seventh out-licensing deal in the innovation R&D space, the USFDA approval for Crofelemer has paved the way for Glenmark becoming the first Indian company to launch a New Chemical Entity (NCE) across multiple geographies". Container Corporation of India after market hours on Tuesday, 29 January 2013, reported 1.9% fall in net profit to Rs 236.58 crore on 3.5% growth in net sales to Rs 1082.78 crore in Q3 December 2012 over Q3 December 2011. The company's board of directors declared interim dividend of Rs 8 per share for the year ending 31 March 2013. Oracle Financial Services Software's consolidated net profit declined 11% to Rs 268 crore on 5% growth in revenue to Rs 853 crore in Q3 December 2012 over Q3 December 2011. During the quarter, eleven customers signed up for the company's products, OFSSL said. The company signed licenses fees of $13 million in the quarter. The result was announced after market hours on Tuesday, 29 January 2013. Commenting on the results, Chet Kamat, managing director and chief executive officer for Oracle Financial Services Software said: "Product revenues in the nine months grew 19% over the corresponding period last year driven by new strategic customer wins and increased penetration of our existing accounts. We signed $13 million in new license fees in the quarter posting an increase of 28% over the corresponding quarter and on a nine month basis, the license fees signed posted an increase of 31% over the same period last year. This performance is a demonstration of the breadth of our product capability and our ability to win customers across regions both direct and through our partner eco-system". Makarand Padalkar, chief financial officer for Oracle Financial Services Software said: "We delivered another strong quarter and nine month performance. While revenues for the nine month period ending December 2012 increased 14% as compared to the corresponding period last year, the operating income increased 15% over the same period. For the quarter ended December 2012, our services business posted an increase of 7% in the revenues and increase of 22% in the operating income over the same quarter year-over-year". Pidilite Industries after market hours on Tuesday, 29 January 2013 reported 51.3% growth in consolidated net profit to Rs 118.99 crore on 20.7% growth in net sales to Rs 927 crore in Q3 December 2012 over Q3 December 2011. Key benchmark indices edged lower in choppy trade on Tuesday, 29 January 2013, as a 25 basis points (bps) reduction in key policy rate by the Reserve Bank of India after a monetary policy review came in line with the market expectations. The BSE Sensex shed 112.45 points or 0.56% to 19,990.90, its lowest closing level since 24 January 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 899.83 crore on Tuesday, 29 January 2013, as per provisional data from the stock exchanges. The Reserve Bank of India (RBI) on Tuesday, 29 January 2013, announced a 25 basis points reduction in its key policy rate viz. the repo rate to 7.75% from 8% after a monetary policy review. The central bank also announced a reduction of 25 basis points in the cash reserve ratio (CRR) to 4% from 4.25% effective the fortnight beginning 9 February 2013. As a result of the reduction in the CRR, around Rs 18000 crore of primary liquidity will be injected into the banking system, RBI said. Keeping in view the expected moderation in non-food manufactured products inflation, domestic supply-demand balances and global trends in commodity prices, the baseline WPI inflation projection for March 2013 has been revised downwards from 7.5% set out in the SQR Second Quarter Review (SQR) of Monetary Policy in October 2012 to 6.8%, RBI said. The central bank has also lowered the baseline projection of GDP growth for 2012-13 to 5.5% from 5.8% given in the SQR. With headline inflation likely to have peaked and non-food manufactured products inflation declining steadily over the last few months, there is an increasing likelihood of inflation remaining range-bound around current levels going into 2013-14, the Reserve Bank of India (RBI) said. This provides space, albeit limited, for monetary policy to give greater emphasis to growth risks, the central bank said in its policy guidance. This policy guidance will, however, be conditioned by the evolving growth-inflation dynamic and the management of risks from twin deficits viz. the current account deficit and fiscal deficit, RBI said. The next mid-quarter review of Monetary Policy for 2012-13 will be announced on 19 March 2013. The focus on the stock market is currently on Q3 December 2012 results. Investors and analysts will closely watch the management commentary that would accompany the result which could cause revision in their future earnings forecast of the company for the current year and or next year. ICICI Bank, Lupin, Grasim Industries and Punjab National Bank unveil Q3 results tomorrow, 31 January 2013. Siemens unveils its Q1 December 2012 results on the same day. IDFC, Bharat Heavy Electricals and Bharti Airtel announce Q3 results on Friday, 1 February 2013. Bank of Baroda unveils Q3 results on 4 February 2012. Cipla unveils Q3 results on 6 February 2013. ACC and Ambuja Cement announce Q4 December 2012 results on 7 February 2012. Mahindra & Mahindra, Sun Pharmaceuticals Industries and Hindalco Industries unveil Q3 results on 8 February 2013. ONGC and Tata Power Company unveil Q3 results on 11 February 2013. Coal India and BPCL unveil Q3 results on 13 February 2013. Tata Motors and Dr. Reddy's Laboratories unveil Q3 results on 14 February 2013. Ranbaxy Laboratories unveils Q4 December 2012 results on 26 February 2012. Finance minister P. Chidambaram on 22 January 2013 said that the government is on pace to hit its $5 billion target for sales of stakes in state-owned companies before the fiscal year ends in March. The disinvestment will continue next year at the same pace or faster, he said. Mr. Chidambaram said that the government must act to close its gaping current account deficit, a legacy of huge import bills for oil and gold and one reason behind the rupee's poor performance over the past year. The finance minister said India's economy is on the right track and he dismissed any suggestion that the sovereign debt rating could be downgraded. Mr. Chidambaram said the government is committed to lowering the fiscal deficit by 0.6% a year for the next five years. The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The deficit target is 5.3% of gross domestic product for the current fiscal year through March, 4.8% in the next fiscal year, and 3% by the end of the year through March 2017. The government's move to raise diesel prices is positive, but it must keep up the momentum of economic reforms for there to be a material impact on its fiscal position, Moody's Investors Services said on 19 January 2013. The diesel price hike is another signal that the government is willing to take some long-delayed, politically difficult decisions, said Atsi Sheth, Moody's sovereign analyst for India. While the diesel price hike will have a fairly small impact on the actual budget deficit, the fiscal position would improve if fuel subsidies continue to be reduced over time, Ms. Sheth said. She also said Moody's maintains its sovereign rating at Baa3 for India, with a stable outlook. The Ministry of Finance on 14 January 2013 said that the government has decided to defer the implementation of the General Anti Avoidance Rules or GAAR by two years until 1 April 2016 and that it has accepted major recommendations of the Parthasarathi Shome Committee on GAAR with some modifications. The provisions of GAAR will apply to only those foreign institutional investors (FIIs) who seek to take advantage of the double taxation avoidance treaties India has with different countries. The rules won't apply to the non-resident individual investors who put money with the FIIs. Any investments made before 30 August 2010 won't be examined under GAAR. Finance Minister Mr. Chidambaram said that the GAAR provisions strike a balance between the government's need for revenue generation and investors' interests. Chidambaram early this month said attracting foreign funds to India has become an economic imperative. Commerce, Industry and Textiles Minister Mr. Anand Sharma on 9 January 2013 said that the Joint Working Group on Indo-Mauritius Double Taxation Avoidance Convention (DTAC), which is scheduled to meet in February 2013, would be able to take the deliberations forward. The government on 17 January 2013 allowed PSU OMCs to increase diesel prices by a small margin from time to time, a decision aimed at reducing the government's oil subsidy burden and fiscal deficit and improving the government's finances. Oil Minister Veerappa Moily said after a meeting of the Union Cabinet that there was an earlier proposal to deregulate diesel prices, and in pursuance of that, oil companies have been authorised to make price corrections from time to time. Finance Minister P. Chidambaram on 17 January 2013 said the government will factor in the reduction in subsidies and its impact on the deficit once the retailers say how much they intend to increase prices by. The government on 17 January 2013 also said it has increased the limit of subsidized cooking-gas cylinders to nine per year a family from six now. Mr. Moily said that the raising of the cap will cost the government about an additional Rs 10000 crore a year. Bahujan Samaj Party (BSP) chief Mayawati slammed the UPA government for its decision to deregulate diesel prices and said that it would affect prices and hit common man badly. She, however, ruled out the possibility of withdrawing BSP's support to the government, saying she did not want to destabilise it as the general election is not too far. BSP provides outside support to the Congress led UPA government which has already been reduced to a minority government after Trinamool Congress withdrew support to the government in September last year. Asian stocks edged higher on Wednesday, 30 January 2013, ahead of a policy decision from the US Federal Reserve, while selected Japanese shares benefitted from smartphone exposure. Key benchmark indices in Taiwan, Indonesia, Japan, South Korea, Hong Kong and Singapore rose by 0.21% to 1.03%. China's Shanghai Composite shed 0.18%. US stocks edged higher on Tuesday, 29 January 2013, with pharmaceutical giant Pfizer Inc.'s better-than-expected earnings helping lift the Dow Jones Industrial Average to its highest finish since October 2007. US monetary policy will be front and center for investors, with the Federal Reserve due to wrap up a two-day policy meeting later in the global day today, 30 January 2013. Investors are on alert for any signals as to the duration of the Fed's bond-buying program. The influential US nonfarms payroll data for January 2013 is due for release on Friday, 1 February 2013.
Bothra Metals files draft prospectus for IPO
It is a combination of fresh issue of shares and offer for sale of shares Bothra Metals & Alloys has filed the draft prospectus with BSE SME Exchange for a public issue of Rs 12.21 crore that consists of fresh issue aggregating up to Rs 6.48 crore and an offer for sale of up to Rs 5.73 crore by the promoters. The total issue would be of 48,84,000 equity shares through fixed price route to be issued at Rs 25 per share (face value of Rs 10 per share) aggregating to Rs 12.21 crore. The issue constitutes 26.39% of the post issue paid up equity share capital of the company. Incorporated in 2001, Bothra Metals & Alloys is primarily engaged in the activities of manufacturing of aluminum extrusion, profiles, billets, non-ferrous metal alloys etc and trading of metals. The company currently operates out of three plants in Kala-amb (Himachal Pradesh), Bhavnagar (Gujarat), Sangli (Maharashtra) and has branch offices in several other cities of India. The proceeds raised through the IPO are to be utilized for working capital requirements and other general corporate purposes pursuant to its future expansion plans.
V-Mart Retail IPO opens on 1 February 2013
IPO price band at Rs 195 to Rs 215 V-Mart Retail's initial public offering (IPO) of 44.96 lakh shares opens for subscription on Friday, 1 February 2013. The issue closes on 5 February 2013. The issue comprises of a fresh issue of 27.61 lakh shares and offer for sale of 17.35 lakh shares by Naman Finance and Investment. The issue will constitute 25.04% of post issue paid up capital of the company. The IPO price band has been fixed at Rs 195 to Rs 215. The issue has been graded by CARE and has been assigned the "CARE IPO Grade 3", indicating average fundamentals. The company proposes to utilise the funds, which are being raised through the fresh issue to open 60 new stores; expansion of distribution centres; working capital requirements; general Corporate Purposes; and to meet the Issue expenses. V-Mart Retail is one of the pioneers in setting up stores across various small Indian towns and cities including Sultanpur, Ujjain, Motihari. It primarily operates in Tier-II and Tier-III cities, with a chain of "value retail" departmental stores offering apparels, general merchandise and kirana, catering to the entire family. Based in New Delhi, its operations are spread across northern, western and eastern parts of India.
Tuesday, January 29, 2013
RBI releases Macroeconomic and Monetary Developments for Q3 FY13
Inflation is likely to moderate below the Reserve Bank’s baseline projection of 7.5 per cent. However, suppressed inflation continues to pose a significant risk to the inflation in 2013-14. As some of the risks materialises, inflation path may turn sticky. The Reserve Bank of India released the Macroeconomic and Monetary Developments Third Quarter Review 2012-13. The document serves as a backdrop to the Third Quarter Review of Monetary Policy Statement 2012-13 to be announced on January 29, 2013. Highlights: Overall Outlook Balance of macroeconomic risks suggests monetary policy needs to be calibrated in addressing growth risks as inflation turns sticky Growth in 2012-13 is likely to fall below the Reserve Bank’s baseline projection of 5.8 per cent. However, output gap may start closing in 2013-14 although at a slow pace on the back of some revival in investment and consumption demand. Inflation is likely to moderate below the Reserve Bank’s baseline projection of 7.5 per cent. However, suppressed inflation continues to pose a significant risk to the inflation in 2013-14. As some of the risks materialises, inflation path may turn sticky. Various surveys show that business confidence remains subdued. Survey shows that forecasters outside the Reserve Bank anticipate growth to recover from 5.5 per cent in 2012-13 to 6.5 per cent in 2013-14. Average WPI inflation is expected to moderate from 7.5 per cent in 2012-13 to 7.0 per cent in 2013-14. Global Economic Conditions Unconventional monetary policies reduce stress, but risks remain ahead Fiscal risks are likely to keep global recovery muted in 2013. While the immediate risk of the fiscal cliff in the US has been averted, risks to global growth emanating from euro area remain significant. There are some signs of growth bottoming out in Emerging Market and Developing Economies (EMDEs). Global inflation scenario may stay benign as demand in advanced economies (AEs) remains weak. Improved supply prospects in commodities like oil and food are likely to restrain commodity price pressures. However, upside risks persist, with possible recovery in EMDEs and large quantitative easing in AEs. Indian Economy Output Growth slowdown continues, revival may take some more time Growth slowdown in India continues with growth remaining below potential for the fifth successive quarter. Policy initiatives of the government are yet to show up fully or definitively in data. Revival may take some more time. Rabi crop is expected to be normal despite deficient rains, but is unlikely to fully compensate for kharif deficiency. Sowing under rabi crop has been broadly the same as the level in the previous year. Weak industrial performance is likely to persist. Subdued external demand and lack of reliable power supply amidst coal shortages are constraining capacity utilisation. Lead indicators of service sector and the Reserve Bank’s Service Sector Composite Indicator signal moderation. The Reserve Banks’ Order Books, Inventory and Capacity Utilisation Survey shows capacity utilisation increased marginally in Q2 of 2012-13. On a sequential basis, new orders moderated in Q2 of 2012-13. Aggregate Demand Improvement in investment climate is a prerequisite for economic recovery Demand conditions remained tepid, with private consumption continuing to decelerate and with investment yet to recover. Investment intentions in new projects improved marginally in Q2 of 2012-13, but investment is held back by project delays. Coal supply issues facing power sectors are yet to be fully resolved. Road investments have stalled due to issues relating to environmental clearances, land acquisition and financial closures. Sales growth moderated further in Q2 of 2012-13 to its lowest level in three years, but net profit growth improved markedly. Early results for Q3 of 2012-13 indicate continuation of the trend of sluggish sales. Quality of fiscal adjustment remains a concern, even as fiscal risks have reduced in 2012-13. Government is working towards achieving revised fiscal deficit target of 5.3 per cent of GDP by restricting both plan and non-plan expenditure during the last quarter of the year, even as significant shortfall in tax revenue is likely. Increased public investment to crowd in private investment along with removal of structural impediments that is slowing private investment is needed to pull the economy out of the current slowdown. External Sector Widening of CAD and its financing remains a key policy challenge Widening current account deficit (CAD) has emerged as a major constraint in easing monetary policy. With the likelihood that CAD/GDP ratio may exceed 4 per cent of GDP for the second successive year in 2012-13, prudence is necessary while stimulating aggregate demand. The CAD/GDP ratio reached its highest ever peak of 5.4 per cent of GDP in Q2 of 2012-13. Early indications are that it may increase further in Q3 of 2012-13. CAD has widened mainly due to worsening trade deficit. Weak external demand alongside structural bottlenecks has led to contraction in exports of India as also of other EMDEs. In addition, continuing large imports of oil and gold has resulted in deterioration in India’s trade balance. Strong capital flows have facilitated financing of CAD, resulting only in marginal draw down of reserves. While increased FII debt investment limits may enhance inflows, they do not provide a solution to CAD financing on a sustainable basis. Monetary and Liquidity Conditions With moderating inflation, Reserve Bank takes measures to infuse liquidity Since the start of 2012, the Reserve Bank has worked towards easing monetary and liquidity conditions in a calibrated manner without jeopardising moderating inflation. With consequent moderation in inflation, the Reserve Bank took measures to combat tight liquidity conditions. Liquidity conditions tightened in Q3 of 2012-13 due to build up of government cash balances and strong currency demand. The Reserve Bank resumed outright open market operations (OMOs). In 2012-13 so far, it has infused liquidity of `1.3 trillion through outright OMOs. Broad money growth remains below indicative trajectory. Deposit growth has decelerated, while credit expansion has been in line with the trajectory. Even as asset quality concerns have impacted credit expansion, the increased wedge between deposit and credit growth remains a concern. Financial Markets Reforms and inflows improve market sentiments and revive the IPO market Improved global liquidity and recent policy reforms have aided FII inflows, leading to a turnaround in equity markets and revival of the Initial Public Offering (IPO) market. Rupee remained largely range-bound in Q3 of 2012-13. Money market remained stable despite liquidity deficit. G-sec yields softened markedly since December 2012 on expectations of no additional government borrowing and policy rate cut, as also resumption of OMOs and deferment of an auction. The Reserve Bank’s House Price Index (HPI) increased by 3 per cent quarter-on-quarter in Q2 of 2012-13 alongside increase in transaction volumes. Price Situation Headline and core inflation moderated, but suppressed inflation poses risks Headline inflation moderated in Q3 of 2012-13 with significant moderation of core inflation, but CPI inflation edged up to double digits. Core inflation pressures are unlikely to re-emerge quickly on demand-side considerations. Near-term inflation outlook indicates that the moderation may continue in Q4 of 2012-13. Wage inflation remains a source of concern. Rural wage inflation declined marginally but remained high at 18 per cent. In organised manufacturing, increases in staff costs remained in double digits. Going forward, risks remain from suppressed inflation, pressure on food prices and high inflation expectations getting entrenched into the wage price spiral. The inflation path for 2013-14 could face downward rigidity.
Waiting for RBI…Sensex, Nifty flatten
The anxiety among the market participants was clearly evident as they preferred to stay on the sidelines ahead of the RBI monetary policy scheduled to be held on 29th January, 2013. Benchmark indices were stuck in a narrow trading range throughout the day. However, the interest rate sensitive stocks like the Banking, Auto and the Realty were in demand anticipating a rate cut. Even the IT and select telecom stocks witnessed some buying. The Mid-Cap index remained subdued, while the Small-Cap index marginally gained by 0.3%. Finally, BSE Sensex closed flat at 20103. It had earlier touched a day's high of 20172 and a day's low of 20062. It opened at 20129. The NSE Nifty closed unchanged at 6,075. It earlier touched a day’s high of 6,088 and a day’s low of 6,061. It opened at 6,082. Wipro, TCS, ICICI Bank, Hero MotoCorp, Coal India, Dr Reddys Lab, HDFC, Bajaj Auto, Tata Motors, Hindalco, ITC, Mahindra & Mahindra were among gainers in Sensex and Nifty. RIL, Infosys, NTPC, ONGC, L&T, Sun Pharma, Bharti Airtel, BHEL, Jindal Steel, SBI were among losers in Sensex and Nifty. The INDIA VIX on NSE was up 3% to end at 15.15. It hit a day’s high of 15.49 and day's low of 14.41. Stocks which hit 52 week high during the week were Hinduja Vent, Kinetic Engr, Satyam Comp, Bombay Cycle, and Jolly Board. Stocks which hit 52 week low during the week were Andhra Petro, Bajaj Hind, Parrys Sugar, Industrial Invest and TechNVision Vent. Shares of Reliance Infra ended lower by 2.5%. The company posted a profit after tax, Share in Associates and Minority Interest of Rs7279.40mn for the quarter ended December 31, 2012 as compared to Rs4083.2mn for the quarter ended December 31, 2011. Shares of JSW Steel gained by 0.5% and closed at Rs869. The company posted a net profit after tax of Rs1367.30mn for the quarter ended December 31, 2012 as compared to Rs1682.40mn for the quarter ended December 31, 2011. Shares of Jet Airways erased early gains and ended lower by 2%. Reports stated that the company may finalise deal with Etihad in February. The stock closed at Rs600, down Rs11.35. Shares of Maruti Suzuki edged higher by 0.5% after reports stated that the company has purchased land in Gujarat for its fourth plant, with a view to roughly doubling annual production capacity to about 3 million units. The stock closed at Rs1608, up Rs8.75. Shares of Reliance Industries declined by 2% after reports stated that oil & gas major and its partner BP plc's KG-D6 gas fields and gas discovery area NEC-25 are among 14 oil and gas blocks that have been declared "No-Go" areas by the Defence Ministry. The stock closed at Rs895, down Rs16.10. Most Asian markets ended with gains on Monday following overnight gains in the US markets. However, the Nikkei index in Japan ended with losses from near 3 year highs on account of profit booking. The index declined by 1%. Among the top gainers were, the Shanghai Composite index in China rose by 2.4%, the Taiwan index rose by 0.6%, the Hang Seng index in Hong Kong gained by 0.4% and the Straits Times added 0.2%. The European equity markets were trading in a tight trading range. The FTSE index in UK was almost unchanged, the CAC index in France and the DAX index in Germany were trading marginally lower by 0.2% each.
MCX-SX to launch live trading on February 11
On February 9, 2013, the equity and equity derivative segment of MCX Stock Exchange (MCX-SX) will be launched by Finance Minister P. Chidambaram. Adding further, MCX-SX got 700 applications for new membership out of which 270 membership applications have already been registered by Securities and Exchange Board of India ( SEBI). The company said in a statement that MCX-SX will start live trading two days later from February 9. On December 19, 2012, MCX-SX got 'commencement certificate' for trading in new segments such as equity, futures and options on equity, interest rate derivatives and wholesale debt market by SEBI. Further, on December 21, 2012, the ministry of corporate affairs had granted the status of a 'recognized stock exchange' to MCX-SX. In today's trade, MCX closed at Rs1411.55, up by 3.44%, with a volume of 0.33 lakh shares on the BSE.
Auto, realty stocks build on rate cut expectations
Key benchmark indices settled flat ahead of the Reserve Bank of India (RBI)'s Third Quarter Review of Monetary Policy 2012-13 tomorrow, 29 January 2013. The barometer index, BSE Sensex, settled at 20,103.35, off close to 70 points from the day's high and up about 40 points from the day's low. Index heavyweight and cigarette maker ITC rose marginally. Another index heavyweight Reliance Industries (RIL) extended intraday losses in late trade. The market breadth, indicating the overall health of the market, was positive. The Sensex has risen 676.64 points or 3.48% in this month so far (till 28 January 2013). From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 4,354.37 points or 27.64%. Coming back to today's trade, interest rate sensitive automobile and realty stocks rose as the Reserve Bank of India (RBI) is seen cutting its key policy rate viz. the repo rate by 25 basis points (bsp) at Third Quarter Review of Monetary Policy 2012-13 tomorrow, 29 January 2013. Reliance Infrastructure (RInfra) edged lower as an exceptional one-time profit of Rs 418.34 crore on sale of shares of Reliance Power lifted the company's bottom line in Q3 December 2012. Adani Power dropped as the company's net loss widened in Q3 December 2012 over Q3 December 2011. Adani Ports and Special Economic Zone surged after the company's board of directors gave in-principle approval to divest the company's significant stake in entities controlling the Abbot Point Coal Terminal in Queensland, Australia to the Adani family.
Monday, January 21, 2013
Mkts post modest gains at close; RIL hogs limelight
Key indices ended in green led by better-than-expected results from Reliance Industries on Friday (January 18, 2013). The Sensex rose 63 points while the Nifty shut shop 18 points higher. Major Headlines: Reliance Industries beats street estimates HDFC Q3 consolidated net profit rises by 28% NTPC Q3 net profit surges by 22% SpiceJet reports turn around in Q3 nos Indian Indices: The Indian markets closed today's trading session in the green zone. Buying was seen in sectors like CG, Oil&Gas, FMCG, Power and TECk. The BSE Sensex was hovering near 20,100 while NSE Nifty traded near 6,080 throughout the day. The uptrend in the market was seen on index heavyweight RIL posting better-than-expected Q3 net profit which was up by 24% for the quarter ended December 31, 2012, its highest level since June 10, 2011. The NSE Nifty maintained 6,050 while the BSE Sensex comfortably surpassed the 20100 mark in trade today. At the closing bell, the BSE Midcap index fell by 0.14% and the BSE Smallcap index rose by 0.02%. Movement of the Indian indices for the day: The key indices kick started the first trading day of the week on a positive note as the sentiments were boosted with optimism coming post release of RIL numbers. This was company's first increase in profit after four quarters of declining returns, buoyed by stronger oil refining margins . However, the benchmark index pared gains in afternoon on the back of selling pressure in index heavyweights like Sun Pharma, Tata Motors, NTPC, TCS and Cipla. The strong opening of European markets also helped the domestic shares to trade in the green zone. The Sensex ended at 20101.82, up by 62.78 points, while the Nifty shut shop at 6082.30, up by 17.90 points. Following are the stocks/ sectors which were in news today: 1. Shares of Indian conglomerate Reliance Industries Ltd rose today, after posting a better-than-expected 24% jump in third-quarter net profit. After market hours, the stock closed 2.35% higher. 2. SpiceJet soared on robust Q3 earnings as company posted Q3 net profit at Rs102 crore against net loss of Rs39.26 crore in year ago quarter. After market hours, the stock closed 5.01% higher. 3. Tecpro Systems jumped after the company received an order worth Rs139.80 crore from The West Bengal Power Development Corporation. After market hours, the stock closed 2.50% higher. 4. Aurobindo Pharma rose after the company said it has received final approvals from USFDA to manufacture and market Oxacillin Injection in multiple vials in United States. After market hours, the stock closed 1.45% higher. Market sentiment: The market breadth stood in favor of declines. Of the 3021 stocks traded on the BSE, 1,370 (45.35%) rose, 1,514 (50.12%) fell and 137 (4.53%) stocks remained unchanged. Sectoral & stock screening Among the 13 sectoral indices, seven sectors closed in the red zone while remaining six sectors closed in the green zone. Top Gainers- BSE CG up by 1.49%, BSE Oil & Gas rose by 1.31%, BSE FMCG gained by 1.06%. Top Losers: BSE Realty down by 1.31%, BSE HC fell by 0.41% and BSE Auto slipped by 0.31% Among 'A' group stocks, top three gainers were- United Breweries which rose by 9.43%; Reliance Communication up by 6.91% and JSW Energy surged by 6.49%. Top three losers were- Opto Circuits declined by 8.53%, Oberoi Realty was down by 3.96% and TTK Prestige fell by 3.75%. Global signals: Asian shares ended lower on Monday, taking a breather after hitting multi-month highs, while the yen touched a new low ahead of the outcome of the Bank of Japan policy meeting this week amid expectations for bold monetary easing measures. European indices inched towards two-year highs and German Bund futures dipped on Monday, as a political attempt to break a budget impasse in the United States revived appetite for shares and dented appetite for safe-haven assets. US stock index futures poised for a mixed opening at the Wall Street on Monday.
Nifty January 2013 futures at premium
Turnover declines Nifty January 2013 futures were at 6097.90, at a premium of 15.60 points over spot closing of 6082.30. Turnover on NSE's futures & options (F&O) segment declined to Rs 105441.56 crore from Rs 111473.43 crore on Friday, 18 January 2013. Reliance Industries January 2013 futures were at 923.90, at a premium over spot closing of 919.90. Reliance Communications January 2013 futures were at 89.25, near spot closing of 89.20. State Bank of India (SBI) January 2013 futures were at 2505.50, at a premium over spot closing of 2493. In the spot market, the 50-unit S&P CNX advanced 17.90 points or 0.3% to settle at 6,082.30, its highest closing level since 4 January 2011. The January 2013 derivatives contracts expire on 31 January 2013
Nifty January 2013 futures at premium
Turnover declines Nifty January 2013 futures were at 6097.90, at a premium of 15.60 points over spot closing of 6082.30. Turnover on NSE's futures & options (F&O) segment declined to Rs 105441.56 crore from Rs 111473.43 crore on Friday, 18 January 2013. Reliance Industries January 2013 futures were at 923.90, at a premium over spot closing of 919.90. Reliance Communications January 2013 futures were at 89.25, near spot closing of 89.20. State Bank of India (SBI) January 2013 futures were at 2505.50, at a premium over spot closing of 2493. In the spot market, the 50-unit S&P CNX advanced 17.90 points or 0.3% to settle at 6,082.30, its highest closing level since 4 January 2011. The January 2013 derivatives contracts expire on 31 January 2013
Market ekes out small gains
Key benchmark indices edged higher on the first trading session of the week after global credit rating agency Moody's Investors Services on Saturday, 19 January 2013, retained its Baa3 sovereign rating on India with a stable outlook. The barometer index, BSE Sensex, and the 50-unit S&P CNX Nifty, both, attained their highest closing level in more than two years. The Sensex, advanced 62.78 points or 0.31%, off 61.56 points from the day's high and up 45.36 points from the day's low. Reliance Infrastructure (RInfra) jumped after the company said that the Delhi Airport Metro line will resume commercial operations tomorrow, 22 January 2013. Index heavyweight Reliance Industries (RIL) edged higher after the company reported strong Q3 results after market hours on Friday, 18 January 2013. Another index heavyweight and cigarette maker ITC extended Friday's gains triggered by good Q3 results. Shares of commercial vehicles and utility vehicles makers dropped on concerns higher diesel prices will hit sales adversely as the government on 17 January 2013 allowed PSU OMCs to change diesel prices by a small margin from time to time. Housing finance major HDFC edged lower in choppy trade after Q3 results. UltraTech Cement reversed initial losses triggered by weak Q3 results. Other cement stocks were mixed. The market breadth was negative. IT stocks were mostly higher. Capital goods stocks rose on renewed buying. NTPC declined after Q3 results. Bharat Heavy Electricals (Bhel) gained after the company said it has achieved a significant milestone in Africa with the successful commissioning of its first Steam Turbine Generator (STG) Unit in Ethiopia. Bhushan Steel declined after poor Q3 results. Indian stocks rose for the third day in a row today, 21 January 2013. From a recent low of 19,817.63 on 16 January 2012, the Sensex has gained 284.19 points or 1.43% in three trading sessions. The Sensex has risen 675.11 points or 3.48% in this month so far (till 21 January 2013). From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 4,352.84 points or 27.64%. Coming back to today's trade, the Sensex edged higher in early trade after global credit rating agency Moody's Investors Services on Saturday, 19 January 2013, maintained its Baa3 sovereign rating at on India with a stable outlook. The Sensex and the Nifty, both, hit their highest level in more than two years at the onset of the trading session. The market held firm in morning trade. The Sensex retained positive zone in mid-morning trade. The market retained positive zone in early afternoon trade. Key benchmark indices pared intraday gains in afternoon trade. The market regained strength in mid-afternoon trade. The market was range bound in late trade. The market sentiment was boosted by data showing that foreign funds remained buyers of Indian stocks on Friday, 18 January 2013. Foreign institutional investors (FIIs) bought shares worth net Rs 1198.20 crore from the secondary equity markets on Friday, 18 January 2013, as per data from Securities & Exchange Board of India (Sebi). The BSE Sensex advanced 62.78 points or 0.31% to settle at 20,101.82, its highest closing level since 6 January 2011. The index rose 17.42 points at the day's low of 20,056.46 in afternoon trade. The index jumped 124.34 points at the day's high of 20,163.38 at the onset of the trading session. The S&P CNX Nifty was up 17.90 points or 0.3% to 6,082.30, its highest closing level since 4 January 2011. The index hit high of 6,094.35 and low of 6,065.10 in intraday trade. The total turnover on BSE amounted to Rs 2355 crore, lower than Rs 2578 crore on Friday, 18 January 2013. The market breadth, indicating the overall health of the market, was negative. On BSE, 1,514 shares declined and 1,370 shares rose. A total of 137 shares were unchanged. Among the 30-share Sensex pack, 19 rose while the rest of them fell.. Index heavyweight Reliance Industries (RIL) rose 2.35% to Rs 920.10 on strong Q3 results. The stock pared gains after hitting 52-week high of Rs 954.80 in early trade today, 21 January 2013. The stock hit low of Rs 918.15 in intraday trade. RIL after trading hours on Friday, 18 January 2013, said its net profit jumped 23.9% to Rs 5502 crore on 10.1% growth in turnover to Rs 96307 crore in Q3 December 2012 over Q3 December 2011. RIL's gross refining margin (GRM) surged to $9.6 a barrel in Q3 December 2012 from $6.8 a barrel in Q3 December 2011. RIL's outstanding debt as on 31 December 2012 was Rs 72266 crore, higher than Rs 68259 crore as on 31 March 2012. RIL had cash and cash equivalents of Rs 80962 crore as on 31 December 2012. These were in bank deposits and CDs, mutual funds and government securities/bonds. RIL is debt free on a net basis as at 31 December 2012, the company said in a statement. Commenting on the third quarter results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries said: "RIL's performance has improved in this quarter with margin expansion in petrochemicals and record earnings in the refining business. We are investing over Rs 1 lakh crore by expanding our petrochemical capacities and adding value to our refining business. These investments will secure a significant change in RIL's earning capacity on commissioning of these projects. It will also provide employment opportunity for thousands of young Indians and support India's economic growth". RIL said its subsidiary, Infotel Broadband Services (Infotel), which has emerged as a successful bidder in all the 22 circles of the auction for Broadband Wireless Access (BWA) spectrum conducted by the Department of Telecommunications, Government of India is in the process of setting up a world class broadband network using state-of-the-art technologies and finalizing the arrangement with leading global technology players, service providers, infrastructure providers, application developers, device manufacturers and others to help usher the 4G revolution into India. Infotel plans to provide end-to-end solutions that address the complete digital value chain across various digital services in key domains of national interest such as education, healthcare, security, financial services, government-citizen interfaces, entertainment and working on building the requisite parts of this customers' experience which fundamentally change the lives of millions of Indians, RIL said. Reliance Industries on Saturday, 19 January 2013, said that the company's buyback program has closed on 19 January 2013. Cairn India rose 1.1% ahead of its Q3 results today, 21 January 2013. FMCG major, Hindustan Unilever rose 0.81% ahead of its Q3 results tomorrow, 22 January 2013. Index heavyweight and cigarette maker ITC rose 1.24% to Rs 290.60, with the stock extending gains for the second straight day on strong Q3 results. The stock hit high of Rs 291.80 and low of Rs 286.30. ITC during trading hours Friday, 18 January 2013, said its net profit rose 20.62% to Rs 2051.85 crore on 22.41% growth in total income to Rs 8041.90 crore in Q3 December 2012 over Q3 December 2011. The Ministry of Health and Family Welfare in October 2012 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. Asian Paints shed 0.75%. After market hours today, 21 January 2013, Asian Paints reported 30.51% growth in consolidated net profit to Rs 335.23 crore on 19.38% growth in total income to Rs 3083.83 crore in Q3 December 2012 over Q3 December 2011. Reliance Communications (RCom) galloped 6.91% to Rs 89. RCom last week said it has awarded a multi-year contract valued at more than $1 billion to Alcatel-Lucent to manage its network. The network managed services contract aims at delivering world-class, seamless voice and data communications services to RCom customers in Eastern and Southern India upto 2020. Reliance Infrastructure (RInfra) jumped 4.06%. The company through its Special Purpose Vehicle (SPV) Delhi Airport Metro Express (DAMEPL), today, 21 January 2013, announced that the Airport Metro line would resume commercial operations at its regular timing of 5:30 IST tomorrow, 22 January 2013. This line initially started its commercial operation on February 23, 2011. However, keeping in view passenger safety issues arising due to defects in civil structures, the services had to be suspended in July 2012. These defects have since been rectified by DMRC and the line was offered for re-inspection to the Commissioner Metro Rail Safety (CMRS) in December 2012. The line was inspected by CMRS on 15th and 16th January, 2013 and a formal clearance for commercial operation was received on January 18, 2013, RInfra said in a statement. Reliance Metro's Airport Express Line would run daily from 5.30 AM to 11.30 PM at a frequency of 15 minutes. Airport Express Line, India's first high speed Metro developed under Public Private Partnership provides world class connectivity from New Delhi Railway Station to Indira Gandhi Airport (T3) terminating at Dwarka Sector 21. Apollo Hospitals Enterprise fell 1.29%. The company during market hours today, 21 January 2013, announced its plans to establish a Proton Therapy Center in India, the first of its kind across South East Asia, Africa and Australia. The launch that marks the beginning of the next wave of advancement in radiation therapy in India is worth approximately Rs 400 crore, which covers the equipment and services supplied by IBA (Ion Beam Applications S.A.) to help establish the Apollo Proton Therapy Center including the long term operation and maintenance contract, Apollo Hospitals Enterprise said in a statement. NTPC fell 1.13%. The company's net profit rose 21.89% to Rs 2596.76 crore on 1.76% increase in total income to Rs 16529.55 crore in Q3 December 2012 over Q3 December 2011. The result was announced during trading hours today, 21 January 2013. JSW Energy jumped 6.49% to Rs 73.80. The company will unveil Q3 results on 23 January 2013. Housing finance major HDFC fell 1.13% to Rs 813.05. The stock hit high of Rs 828.05 and low of Rs 808. HDFC today, 21 January 2013, said its net profit rose 16.18% to Rs 1140.10 crore on 17.49% growth in income from operations to Rs 5145.70 crore in Q3 December 2012 over Q3 December 2011. The company earned profit of Rs 96.32 crore on sale of investments in Q3 December 2012, higher than Rs 87.99 crore in Q3 December 2011. HDFC said its loan book stood at Rs 1.6 lakh crore as on 31 December 2012, as against Rs 1.31 lakh crore in the previous year. This is after considering the loans sold during the preceding 12 month amounting to Rs 5264 crore. HDFC's consolidated net profit jumped 27.55% to Rs 1705.83 crore on 58.75% growth in total income to Rs 10128.58 crore in Q3 December 2012 over Q3 December 2011 UltraTech Cement rose 0.67%, with the stock reversing initial losses. The company's net profit fell 2.6% to Rs 600.81 crore on 6.4% growth in net sales to Rs 4857.40 crore in Q3 December 2012 over Q3 December 2011. UltraTech Cement said the cement demand was subdued in Q3 December 2012. The company's domestic cement sales growth of grey cement remained flat at 9.62 MnT in Q3 December 2012. Sales of white cement and wall care putty rose 6.5% to 2.62 LmT in Q3 December 2012 over Q3 December 2011. The company announced the Q3 results on Saturday, 19 January 2013. On the cost front, the raw materials and logistics cost rose due to increase in railway freight and hike in diesel prices, UltraTech Cement said in a statement. Energy cost, i.e. imported coal remained at $100/tonne levels, the company said. The benefit of softening in coal prices was partly offset by the depreciation in rupee, UltraTech Cement said. Throwing light on its capital expenditure (capex) plans, UltraTech Cement said the on-going capex towards setting up of additional clinkerisation plants at Chhattisgarh and Karnataka is on track. These projects are expected to be operational by early FY 2014, the company added. The expansion will augment the company's cement capacity by 9.2 mtpa bringing it to a total of 62 mtpa, UltraTech Cement said in a statement. With regard to future business outlook, the company said the long term cement demand is likely to see an 8% growth, with housing, infrastructure and allied spending being the key value drivers. However, cement glut is expected to continue over the next three years, UltraTech added. Input costs are likely to increase in line with general inflation, with margins remaining range bound, UltraTech Cement said in a statement. Other cement stocks were mixed. Ambuja Cement (up 0.78%), JK Lakshmi Cement (up 1.14%), India Cement (up 0.82%) and Birla Corporation (up 2.66%) gained. ACC (down 0.74%) and Madras Cement (down 2.31%) declined. Shree Cement dropped 2.42%. After market hours today, 21 January 2013, the company reported 267.35% surge in net profit to Rs 217.44 crore on 20.39% growth in total income to Rs 1460.33 crore in Q3 December 2012 over Q3 December 2011. Hindustan Zinc rose 0.54%. The company's net profit rose 26.61% to Rs 1612.54 crore on 15.52% growth in total income to Rs 3684.29 crore in Q3 December 2012 over Q3 December 2011. Segment-wise results showed that operating profit margin at the company's zinc and lead mining operations declined sharply in Q3 December 2012. The revenue and profit of the company's silver mining operation surged in Q3 December 2012. The growth in Hindustan Zinc's bottom line in Q3 December 2012 was aided by a sharp surge in non-operational income and sharp fall in taxation provision. The company announced the results during trading hours Friday, 18 January 2013. The company said that based on long-term evaluation of assets and in consultation with mining experts, the company has finalised the next phase of growth plan, which will involve sinking of underground shafts and developing underground mines. The plan comprises of developing a 3.75 mtpa underground mine at Rampura Agucha and expanding Sindesar Khurd mine from 2 mtpa to 3.75 mtpa, Zawar mines from 1.2 mtpa to 5 mtpa, Rajpura Dariba mine to 1.2 mtpa and Kayad mine to 1 mtpa. It will also involve opening up of a small new mine at Bamnia Kalan in Rajpura Dariba belt. The growth plan will increase the company's mined metal (MIC) production capacity to 1.2 million tonnes per annum (mtpa). The company currently has metal production capacity of over one million tonnes per annum. The mines will be developed using best-in-class technology and equipment and in consultation with leading global mine experts, ensuring highest level of productivity. The projects will be completed in six years and benefit of growth projects will start flowing in from third year, even as projects will continue till FY 2018-19, Hindustan Zinc said. The annual capital expenditures for these projects will average $250 million a year over next six years, the company said in a statement on Friday, 18 January 2013. Hindalco Industries shed 0.08%. Hindalco Industries Friday, 18 January 2013, said it has finalized its arrangement for acquiring alumina refinery and bauxite mines from Novelis Do Brasil Ltda., a wholly owned subsidiary of Novelis Inc. Novelis Inc. is a subsidiary of Hindalco Industries. The agreement has been executed between Novelis Do Brasil Ltda., Novelis Inc. and AV Minerals (Netherlands) B.V., a wholly owned subsidiary of Hindalco Industries. The alumina refinery, with a capacity of 145 KTPA, situated in the city of Ouro Preto, State of Minas Gerias, Brazil, has mining rights of over 50 million tones of bauxite reserves, Hindalco said in a statement. In June 2009, Novelis Do Brasil Ltda. had suspended the production of alumina at this refinery, Hindalco said. The latest corporate reorganization will allow the new company, with its sole focus on mining and alumina business, to create value out of the moth-balled assets for all the stakeholders, while Novelis Do Brasil Ltda. will continue to focus on its core downstream aluminum rolling business, Hindalco said. Bhushan Steel declined 0.09% to Rs 432.50. The stock fell in volatile trade after poor Q3 results. The company on Saturday, 19 January 2013, said its net profit fell 20.03% to Rs 221.20 crore on 4.7% growth in total income to Rs 2532.72 crore in Q3 December 2012 over Q3 December 2011. Bhushan Steel also said that the board of directors of the company at its meeting held on 19 January 2013 has considered and approved setting up of a 0.35 million tons per annum (MTPA) capacity Cold Rolling cum Electrical Steel (CRNGO) Complex at estimated project cost of Rs 1560 crore and reaffirming the proposal to set up a 1.8 MTPA capacity Pickling Line coupled with Tandem Cold Rolling Mill (PLTCM) at estimated cost of Rs 6000 crore, at Meramandali plant in Orissa. IT stocks were mostly higher. Wipro rose 0.06%. The company before trading hours Friday, 18 January 2013, said its net profit as per International Financial Reporting Standards (IFRS) rose 18% to Rs 1716 crore on 10% growth in total revenue to Rs 11025 crore in Q3 December 2012 over Q3 December 2011. Non-GAAP adjusted net profit rose 17% to Rs 1709 crore in Q3 December 2012 over Q3 December 2011. IT Services Revenue was $1.577 billion in Q3 December 2012, a sequential increase of 2.4% and year on year (YoY) increase of 4.8%, Wipro said. Non-GAAP constant currency IT Services Revenue in dollar terms was $1.571 billion in Q3 December 2012. IT Services Revenue in rupee terms was Rs 8602 crore in Q3 December 2012, an increase of 13% YoY. IT Services Earnings Before Interest and Tax (EBIT) was Rs 1792 crore ($327 million) in Q3 December 2012, an increase of 13% YoY. Operating Income to Revenue for IT Services was 20.8% in Q3 December 2012, up 0.1% sequentially. Wipro expects revenues from IT Services business at $1.585 billion to $1.625 billion in Q4 March 2013. TCS declined 1.49%. The company last week said it has entered into a long-term agreement with Nokia, a global leader in mobile communications, to help transform its IT landscape. As a part of this engagement, TCS will work with Nokia in realizing its future IT roadmap, driving consolidation, rationalization and simplification of applications and also enabling business transformation across the core portfolios, TCS said in a statement. India's second largest software services exporter by revenues Infosys rose 0.37%. The company's CEO and Managing Director S. D. Shibulal said at the time of announcement of the company's Q3 December 2012 results on 11 January 2013 that the management continues to gain confidence from a strong pipeline of large deals. Infosys won 8 large outsourcing deals amounting to $731 million of total contract value in Q3 December 2012. HCL Technologies (HCL) gained 2.13%. The company today, 21 January 2013, said that the Enterprise Application Services (EAS) division of the company has signed a transformational engagement with D+M Group (D&M Holdings, Inc.) to provide services in support of the deployment of SAP solutions. Under the agreement, apart from reconfiguring D+M Japan's implementation of financial solutions from SAP and other related applications and helping to align the company's code structure, HCL will also consolidate the company's financial data. HCL Tech last week said its consolidated net profit as per US accounting standards rose 9.7% to $177 million on 3.6% growth in revenue to $1.154 billion in Q2 December 2012 over Q1 September 2012. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 5.5% to $260.6 million in Q2 December 2012 over Q1 September 2012. EBITDA margin edged up to 22.6% in Q2 December 2012 from 22.2% in Q1 September 2012. The company said TCV of deals won aggregate $1 billion. HDFC Bank fell 1.01% to Rs 656. The stock dropped for the second day in a row as the bank's gross NPA ratio rose on sequential basis in Q3 December 2013. The bank's ratio of gross NPA to gross advances stood at 1% as on 31 December 2012, higher than 0.91% as on 30 September 2012 and lower than 1.03% as on 31 December 2011. HDFC Bank's ratio of net non-performing assets (NPA) to net advances stood at 0.2% as on 31 December 2012, unchanged compared with 0.2% as on 30 September 2012 and 0.2% as on 31 December 2011. The bank's net profit rose 30.04% to Rs 1859.07 crore on 23.01% increase in total income to Rs 10,606.51 crore in Q3 December 2012 over Q3 December 2011. The result was announced during trading hours on Friday, 18 January 2013. Provisions and contingencies fell 6.68% to Rs 307.24 crore in Q3 December 2012 over Q3 December 2011. The NPA coverage ratio as on 31 December 2012 stood at 80% Total restructured loans (including applications received and under process for restructuring) were at 0.3% of gross advances as of 31 December 2012. India's largest private sector bank by net profit ICICI Bank rose 0.43% to Rs 1,180.25. The stock had hit 52-week high of Rs 1,209.70 in intraday trade on 15 January 2013. Shares of banking giant State Bank of India (SBI) were unchanged at Rs 2,491. The stock had struck 52-week high of Rs 2,550 in intraday trade on 10 January 2013. SBI said on Saturday, 19 January 2013, that its board approved a capital infusion of Rs 3004 crore by the government through preferential allotment of shares in the current fiscal year ending March 2013. The funds will be used to support local and international banking operations, and the bank is seeking separate approvals from the government and the Reserve Bank of India (RBI) to raise its issued capital, SBI said in a statement to the Punjab National Bank fell 0.38%. The state-run bank during market hours today, 21 January 2013, said that the Government of India (GoI) has decided to infuse Rs 1248 crore in the bank. Funds will be raised through preferential allotment of equity shares to GoI. IDBI Bank shed 1.01% after Q3 results. The bank said after market hours on Friday, 18 January 2013, its net profit rose 1.7% to Rs 416.76 crore on 12.5% growth in total income to Rs 7070.19 crore in Q3 December 2012 over Q3 December 2011. IDBI Bank also said after market hours on Friday, 18 January 2013, the board of directors of the bank at its meeting held on January 18, 2013, has approved the proposal for Preferential Issue of equity capital to Government of India of Rs 555 crore and other QIBs, if any, aggregating upto Rs 2500 crore subject to approval from shareholders and other Statutory/Regulatory approvals, if any. Shares of commercial vehicles and utility vehicles makers dropped for the second straight day on concerns higher diesel prices will hit sales adversely as the government on 17 January 2013 allowed PSU OMCs to increase diesel prices by a small margin from time to time. Indian Oil Corporation (IOC) hiked diesel prices by 45 paise a liter from Friday, 18 January 2013. The three state-run fuel retailers -- IOC, BPCL and HPCL -- raised diesel prices for bulk buyers by more than Rs 9 a liter from Friday, 18 January 2013, as they stopped subsidizing bulk sales of the fuel. Tata Motors declined 1.37%. Mahindra & Mahindra (M&M) fell 0.41%. The company on 14 January 2013 announced that it has hiked the capacities of its three best selling brands viz. the Quanto, XUV500 and Rexton with immediate effect. This has been necessitated due to the overwhelming demand for the Quanto, XUV500 and Rexton across the country, M&M said. With the increase in capacity for these three products, Mahindra hopes to bring down the waiting period for these popular products and thereby facilitate its customers in getting early deliveries of their products, M&M said. In addition, the bookings for these brands have been opened across more centres in India, M&M said. Quanto has garnered bookings of more than 12,000 units within the first two months of its launch while deliveries for the XUV500 areas per schedule, M&M said. The company's premium SUV, the SsangYong Rexton which has over 1,500 bookings across 9 cities is now poised to be launched in additional cities starting this month, M&M said. The capacity for the Quanto has been raised to 3,500 units, XUV500 to 4,500 units and the Rexton to 500 units per month, respectively so as to effectively deliver the vehicles in the shortest Possible time to customers, M&M said. Ashok Leyland rose 0.38% in volatile trade. Capital goods stocks rose on renewed buying. Siemens, BEML, Punj Lloyd, and L&T gained by 0.12% to 2.12%. Bharat Heavy Electricals (Bhel) gained 2.36% after company today, 21 January 2013, said it has achieved a significant milestone in Africa with the successful commissioning of its first Steam Turbine Generator (STG) Unit in Ethiopia. Significantly, this is also the company's first STG set to be commissioned in the African continent, Bhel said in a statement. The STG set of 12 MW capacity, is the first unit of the 2x12 MW project to be commissioned at the Finchaa Sugar Factory for cogeneration application. The plant will supply process steam and power to the sugar factory and the excess power will be supplied to the Ethiopian Electricity Power Company. Bhel also said that the company is taking a number of strategic business initiatives to fuel further growth in its overseas business. This includes firmly establishing itself in target export markets, positioning of Bhel as a regular EPC contractor in the global market, both in the utility and IPP segments, and exploring various opportunities for setting up overseas joint ventures and marketing offices, etc. NHPC gained 1.15%. The company announced after market hours Friday, 18 January 2013, that unit-2 of Teesta Low Dam Project, Stage-III has been synchronized with grid on 16 January 2013. Mukta Arts jumped 10.12% to Rs 41.90 after the company said it has entered into a contract with Zee Entertainment Enterprises for the assignment of satellite and other electronic rights of its 35 films for 5 years from the dates on which current satellite rights expire. The Deal is for Rs 25 crore plus applicable taxes. The entire deal amount is being paid during the calendar year 2013, Mukta Arts said. Shares of Zee Entertainment Enterprises were down 1.09% Bharti Airtel was the top traded counter on the BSE with turnover of Rs 130.80 crore followed by RIL (Rs 108.39 crore), United Breweries (Rs 74.28 crore), SpiceJet (Rs 68.69 crore) and Reliance Communications (Rs 55.44 crore). Sigrun Holdings was the volume topper on the BSE with volume of 3.01 crore shares followed by SpiceJet (1.49 crore shares), Cals Refineries (98.86 lakh shares), Reliance Communications (63.59 lakh shares) and Unitech (45.75 lakh shares). The government's move to raise diesel prices is positive, but it must keep up the momentum of economic reforms for there to be a material impact on its fiscal position, Moody's Investors Services said on Saturday, 19 January 2013. The diesel price hike is another signal that the government is willing to take some long-delayed, politically difficult decisions, said Atsi Sheth, Moody's sovereign analyst for India. While the diesel price hike will have a fairly small impact on the actual budget deficit, the fiscal position would improve if fuel subsidies continue to be reduced over time, Ms. Sheth said. She also said Moody's maintains its sovereign rating at Baa3 for India, with a stable outlook. The focus on the stock market is currently on Q3 December 2012 results. Investors and analysts will closely watch the management commentary that would accompany the result which could cause revision in their future earnings forecast of the company for the current year and or next year. Hindustan Unilever and Kotak Mahindra Bank will unveil Q3 results tomorrow, 22 January 2013. L&T and Sesa Goa unveil Q3 results on Thursday, 24 January 2013. Maruti Suzuki India unveils Q3 results on Friday, 25 January 2013. Reliance Infrastructure announces Q3 results on 28 January 2013. Sterlite Industries (India) announces Q3 results on 29 January 2013. ICICI Bank, Lupin, Grasim Industries and Punjab National Bank unveil Q3 results on 31 January 2013. Siemens will unveil its Q1 December 2012 results on 31 January 2013. IDFC, Bharat Heavy Electricals and Bharti Airtel announce Q3 results on 1 February 2013. Bank of Baroda unveils Q3 results on 4 February 2012. ACC and Ambuja Cement announce Q4 December 2012 results on 7 February 2012. Mahindra & Mahindra and Hindalco Industries unveil Q3 results on 8 February 2013. Tata Power Company unveils Q3 results on 11 February 2013. BPCL announces Q3 results on 13 February 2013. The Ministry of Finance on 14 January 2013 said that the government has decided to defer the implementation of the General Anti Avoidance Rules or GAAR by two years until 1 April 2016 and that it has accepted major recommendations of the Parthasarathi Shome Committee on GAAR with some modifications. The provisions of GAAR will apply to only those foreign institutional investors (FIIs) who seek to take advantage of the double taxation avoidance treaties India has with different countries. The rules won't apply to the non-resident individual investors who put money with the FIIs. Any investments made before 30 August 2010 won't be examined under GAAR. Finance Minister Mr. Chidambaram said that the GAAR provisions strike a balance between the government's need for revenue generation and investors' interests. Chidambaram early this month said attracting foreign funds to India has become an economic imperative. Commerce, Industry and Textiles Minister Mr. Anand Sharma on 9 January 2013 said that the Joint Working Group on Indo-Mauritius Double Taxation Avoidance Convention (DTAC), which is scheduled to meet in February 2013, would be able to take the deliberations forward. The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The deficit target is 5.3% of gross domestic product for the current fiscal year through March, 4.8% in the next fiscal year, and 3% by the end of the year through March 2017. The government on 17 January 2013 allowed PSU OMCs to increase diesel prices by a small margin from time to time, a decision aimed at reducing the government's oil subsidy burden and fiscal deficit and improving the government's finances. Oil Minister Veerappa Moily said after a meeting of the Union Cabinet that there was an earlier proposal to deregulate diesel prices, and in pursuance of that, oil companies have been authorised to make price corrections from time to time. Finance Minister P. Chidambaram on 17 January 2013 said the government will factor in the reduction in subsidies and its impact on the deficit once the retailers say how much they intend to increase prices by. The government on Thursday, 17 January 2013, also said it has increased the limit of subsidized cooking-gas cylinders to nine per year a family from six now. Mr. Moily said that the raising of the cap will cost the government about an additional Rs 10000 crore a year. Bahujan Samaj Party (BSP) chief Mayawati slammed the UPA government for its decision to deregulate diesel prices and said that it would affect prices and hit common man badly. She, however, ruled out the possibility of withdrawing BSP's support to the government, saying she did not want to destabilise it as the general election is not too far. BSP provides outside support to the Congress led UPA government which has already been reduced to a minority government after Trinamool Congress withdrew support to the government in September last year. Increase in diesel price will stoke inflation pressures as most of India's trucks and trains run on diesel. Reserve Bank of India (RBI) Governor Duvvuri Subbarao on 15 January 2013 refused to lower his guard on inflation despite some recent softening, saying price pressures remain quite high. The comments come a day after government data showed that wholesale price index based inflation, India's main inflation gauge, rose at its slowest pace in three years in December 2012. Inflation based on the All-India Consumer Price Index for Agricultural Labourers (CPI-AL) edged up to 11.33% in December 2012 from 10.31% in November 2012, data released by the government today, 21 January 2013, showed. Inflation based on food index of CPI-AL stood at 11.59% in December 2012. Inflation based on the All-India Consumer Price Index for Rural Labourers (CPI-RL) edged up to 11.31% in December 2012 from 10.47% in November 2012. Inflation based on food index of CPI-RL stood at 11.9% in December 2012. The Reserve Bank of India (RBI) undertakes Third Quarter Review of Monetary Policy 2012-13 on 29 January 2013. RBI kept its key policy rate viz. the repo rate unchanged at 8% after mid-quarter monetary policy review on 18 December 2012. RBI said it is closely monitoring the evolving growth-inflation dynamic and will update the formal numerical assessment of its growth and inflation projections for 2012-13 as part of the third quarter review in January 2013. The Election Commission on 11 January 2013 said that assembly polls will be held in Tripura on 14 February 2013. Assembly polls in two other states viz. Meghalaya and Nagaland will be held on 23 February 2013. The counting of votes for assembly elections held in Tripura, Meghalaya and Nagaland will take place on the same day on 28 February 2013. European stocks edged higher on Monday, 21 January 2013, with oil firms and food retailers leading the charge north. Key benchmark indices in France, Germany and UK rose by 0.23% to 0.63%. Euro-area finance ministers, gathering in Brussels today, will begin talks on how to channel firewall funds directly to banks. Policy makers are likely to clash over how and when the 500 billion-euro ($666 billion) European Stability Mechanism can bypass governments. An assessment of Spain, Cyprus and Greece is also expected to feature. Germany's center-right coalition parties narrowly lost an election in the state of Lower Saxony. The defeat came ahead of general elections expected in September 2013. Most Asian stocks fell on Monday, 21 January 2013, with Japanese shares sliding back from last week's multi-year peaks as a two-day meeting at the Bank of Japan got underway. Key benchmark indices in Japan, Indonesia, Hong Kong, South Korea and Taiwan shed by 0.05% to 1.52%. Key benchmark indices in Singapore and China rose 0.31% to 0.48% respectively. The Bank of Japan's two-day meeting on interest rates in Japan got underway today, 21 January 2013. Market expectations are that the Japanese central bank will further ease its accommodative policy stance to boost the economy. US stocks ended Friday's session, with the S&P 500 index closing the day at a five-year high. Investors were cheered by earnings from industrial heavyweight General Electric Co., as well as signs of progress on a debate over the US borrowing limit. US markets are closed today, 21 January 2013, for the Martin Luther King Jr. holiday. The Federal Open Market Committee (FOMC) holds a two-day meeting on interest rates in the United States on 29 and 30 January 2013. President Barack Obama took the official oath for his second term on Sunday at the White House in a small, private ceremony that set a more subdued tone compared to the historic start of his presidency four years ago. Gathered with his family in the Blue Room on the White House's ceremonial main floor, Obama put his hand on a Bible and recited the 35-word oath that was read to him by US Chief Justice John Roberts. Obama, who became the first African-American US president four years ago, will be sworn in publicly for his second term on Monday in a much bigger ceremony before an audience of as many as 800,000 people outside the US Capitol.
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