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. Key benchmark indices edged higher in early trade on higher Asian stocks. The barometer index, BSE Sensex, hit its highest level in more than two years at the onset of the trading session. Key benchmark indices were slightly higher in morning trade. Key benchmark indices were off intraday highs in mid-morning trade. The market reversed direction and slipped into the red in early afternoon trade. The market regained positive terrain in afternoon trade. Key benchmark indices were slightly higher in mid-afternoon trade. The Sensex once again slipped into the red in late trade. 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 on Thursday, 31 January 2013. The BSE Sensex settled almost unchanged for the day at 20,103.35. The index gained 68.92 points at the day's high of 20,172.45 in early trade, its highest level since 7 January 2011. The index fell 40.74 points at the day's low of 20,062.79 in early afternoon trade. The S&P CNX Nifty also settled flat at 6,074.80. The index hit a high of 6,088.40 in intraday trade, its highest level since 22 January 2013. The index hit a low of 6,061.40 in intraday trade. The BSE Mid-Cap index rose 0.02% and the BSE Small-Cap index gained 0.27%. Both these indices outperformed the Sensex. The total turnover on the BSE amounted to Rs 1998 crore, lower than Rs 2363.58 crore on Friday, 25 January 2013. The market breadth, indicating the overall health of the market, was positive. On BSE, 1,530 shares rose and 1,323 shares fell. A total of 115 shares were unchanged. Among the 30-share Sensex pack, 15 rose while the rest of them fell. Index heavyweight Reliance Industries (RIL) fell 1.56% to Rs 897.65. The stock hit high of Rs 914.80 and low of Rs 895. The stock had hit 52-week high of Rs 954.80 in intraday trade on 21 January 2013. RIL on 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 is debt free on a net basis as at 31 December 2012, the company said in a statement. 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. RIL on 19 January 2013 said that the company's buyback program has closed on 19 January 2013. Cairn India rose 1.45% as US crude oil futures traded near the highest level in four months on speculation that a global economic recovery will boost fuel demand. US crude oil futures for March 2013 delivery were up 23 cents a barrel at $96.10 a barrel in the electronic trading today, 28 January 2013. Higher crude oil prices will result in higher realizations from crude sales for oil exploration firms like Cairn India. Index heavyweight and cigarette maker ITC rose 0.32% to Rs 300.40. The stock hit high of Rs 300.80 and low of Rs 299. 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. Godrej Consumer Products (GCPL) fell 0.15%. GCPL after market hours on Friday, 25 January 2013, said it has entered into an agreement to divest its non-core foods business to Creador, with the transaction expected to close in about two months. Since the acquisition of this business in 2010, Godrej has been able to enhance the business value significantly. In 2012, this business generated net sales of about $ 22 million. The foods business in Indonesia includes cereals, snacks and instant food products under largely the brands Simba and Turbo. Under this agreement, Godrej's Indonesian subsidiary will continue to distribute these brands for a 2 year period. Commenting on the divestment, Mr. Adi Godrej, Chairman, GCPL said: "Our decision to divest the foods business is very much in line with our strategic intent to focus on home and personal care. The divestiture of this business will improve the margin profile of our Indonesian business and help the team to take the household and personal care platforms to their full potential. Over the last few years, Naveen and his great team have delivered excellent performance and we remain very optimistic of the future growth prospects in Indonesia. The consideration from this divestiture will further strengthen our balance sheet. Suzlon Energy rose 1.9% after the company said it has signed a contract for a 21.75 megawatts project with Sri Kumarswamy Mineral Exports, Bellary. The company announced new order during trading hours today, 28 January 2013. Suzlon Energy said the project with Sri Kumarswamy Mineral Exports (SKMEPL), Bellary comprises nine units of Suzlon's S66 – 1.25 megawatts (MW) and five units of Suzlon's S88 – 2.1 MW wind turbines. The project is set to be commissioned in the Dindigul and Tirunelveli district of Tamil Nadu by the end of March 2013, Suzlon said in a statement. Speaking on the latest order, Mr. Rohit Modi, CEO -- India and emerging markets, Suzlon Energy said, "We are delighted to be working again with Sri Kumarswamy Mineral Exports. India's wind market is unique in its mix of customers and we strive to meet the varied requirements of each of them. This repeat order demonstrates the confidence our customers have in our products and service capabilities". Mr. Shantesh Gureddi, Managing Director, Sri Kumarswamy Mineral Exports said, "In addition to the environmental benefits, wind energy is also a very good long term investment avenue for us. We intend to capitalize on its multiple revenue offerings and value creation opportunities through this project. We see Suzlon, with its decade plus leadership of the Indian wind sector, as the right, long-term partner in our expanding wind energy business". SKMEPL has an existing installed capacity of 29.25 MW from wind energy projects solely developed by Suzlon, operating in sites across Karnataka, Tamil Nadu and Maharashtra. This new order will augment SKMEPL's existing renewable energy portfolio to 51 MW. Glenmark Pharmaceuticals declined 1.75%. Glenmark Generics Inc., USA, a subsidiary of Glenmark Generics (GGL), has been granted final abbreviated new drug approval (ANDA) from the United States Food and Drug Administration (USFDA) for Mupirocin Calcium Cream USP, 2%. Glenmark will commence shipping the drug immediately, the company said in a statement. Mupirocin Calcium Cream is indicated for the treatment of secondarily infected traumatic skin lesions (up to 10 cm in length of 100 square cm in area) due to susceptible strain of S. aureus anad S. pyogenes, Glenmark said in a statement. Based on IMS Health sales data, Mupirocin Calcium Cream generated sales of $56.5 million in the United States for the 12 months ended September 2012, Glenmark said in a statement. Glenmark Generics (GGL) is a subsidiary of Glenmark Pharmaceuticals. Glenmark's current portfolio consists of 83 products authorized for distribution in the United States marketplace and 46 ANDAs pending approval with the USFDA, the company said. In addition to these internal filings, GGL continues to identify and explore external development partnerships to supplement and accelerate the growth of the existing pipeline and portfolio, Glenmark said in a statement. Metal stocks were mixed. Tata Steel, Jindal Steel & Power and Hindustan Zinc fell by 0.2% to 0.97%. Sail, Bhushan Steel and Hindalco Industries rose by 0.72% to 1.72%. Sterlite Industries (India) rose 1.6% ahead of its Q3 results tomorrow, 29 January 2013. JSW Steel rose 0.85%. The company's profit after tax fell 19% to Rs 137 crore on 5% increase in net sales to Rs 8275 crore in Q3 December 2012 over Q3 December 2011. Operating earnings before interest, taxation, depreciation and amortization (EBITDA) rose 5% to Rs 1314 crore in Q3 December 2012 over Q3 2011. The result was announced during trading hours today, 28 January 2013. JSW Steel said it reported a net profit of Rs 137 crore in Q3 December 2012 in spite of inadequate availability of iron ore, inferior quality of ore with low Fe, high alumina and manganese and unreasonable prices for iron ore in E-auctions. IT stocks gained on renewed buying. TCS gained 0.44%. TCS on 22 January 2013 said its flagship product TCS BaNCS has gone live in the United States at BNP Paribas for its custody operations. Wipro rose 1.43%. The company on 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. HCL Technologies (HCL) gained 2.48%. The company on 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. Infosys shed 0.17%. The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India today, 28 January 2013, announced the launch of eBiz -- India's first Government-to-Business (G2B) portal which has been developed by Infosys in a public private partnership model. Infosys made the announcement during market hours today, 28 January 2013. The eBiz portal which aims at transforming and developing a conducive business environment in India, was launched by Union Minister of Commerce, Industry and Textiles, Mr. Anand Sharma at the CII Partnership Summit in Agra. The eBiz platform will provide a one-stop shop for convenient and efficient online G2B services for the investor and business communities in India, reducing delays and complexity in obtaining information and services. It will serve as a gateway to obtain services relating to planning, starting and operating businesses in India including licenses, approvals, clearances, obtaining no objection certificates, permits and filing returns. Infosys has launched the first phase of the project which will provide investors an interactive tool to assess license and permit requirements to setup and operate a business in India. As a part of the 10 year program, Infosys will roll-out services in a phased manner. In the first year of the three year-long pilot, 29 services will be unveiled in the five states of Andhra Pradesh, Delhi, Haryana, Maharashtra and Tamil Nadu. Further, over the course of the second and third years, an additional 21 services will be launched and five additional states will be brought under the scope of this project, Infosys said in a statement. From the fourth year onwards, the project will see more than 200 services rolled-out across the country. eBiz adheres to global e-Governance standards under the National e-Governance Plan of the Government of India. It is an Integrated Mission Mode Project that aims at providing Central Government, State Government and Local Administration related services. Shares of companies whose fortunes are linked to orders from Indian Railways edged higher on renewed buying. Texmaco, Kernex Microsystems (India), Titagarh Wagons, Kalindee Rail Nirman (Engineers), Stone India, Hind Rectifiers and BEML rose by 0.76% to 6.53%. Interest rate sensitive auto 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. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing. Car major Maruti Suzuki India rose 0.55% to Rs 1,608.95, with the stock extending Friday's gains by triggered by strong Q3 results. The stock hit 52-week high of Rs 1,634 in intraday trade today, 28 January 2013. The company on Friday, 25 January 2013, said its net profit jumped 143.8% to Rs 501.30 crore on 45.6% growth in net sales (net of excise) to Rs 10957 crore in Q3 December 2012 over Q3 December 2011. The company said the growth in net profit was primarily due to higher sales and good response to new models like Ertiga and Swift DZire. The company's continued cost reduction efforts helped to drive profit in the quarter, Maruti said in a statement. Maruti said that the growth in net sales was account of higher volumes, favourable model mix and enhanced export realization. Commercial vehicles maker Tata Motors gained 2.54% to Rs 308.70. Jaguar Land Rover (JLR) on 23 January 2013 said it is likely to report a lower earnings before interest, taxation, depreciation and amortisation (Ebitda) margin in the October-December quarter compared with the previous two quarters due to exchange rate fluctuations and a higher mix of Evoque sales. JRL is a subsidiary of Tata Motors. Jaguar Land Rover Automotive plc (the issuer), the parent company of the Jaguar Land Rover group of companies, on 23 January 2013 announced the offer of $400 million Senior Notes due 2023 (the notes). The notes will be guaranteed on a senior unsecured basis by Jaguar Land Rover, Land Rover, Jaguar Land Rover North America, LLC, Land Rover Exports and Jaguar Land Rover Exports. The net proceeds from the issuance and sale of the notes will be used for general corporate purposes, including to support Jaguar Land Rover's on-going growth and capital spending plans, JLR said in a statement. Utility vehicles and tractors maker Mahindra & Mahindra (M&M) rose 0.38%. M&M on 23 January 2013 said that developments in both the industry environment and in customer procurement frameworks and acquisition strategies have led the shareholders to institute a strategic review of the business of its joint venture viz. Defence Land Systems India (DLSI). DLSI was established in 2009, with M&M holding a majority 74% stake and BAE Systems holding the remaining 26% stake. M&M and BAE Systems both recognise that significant evolution has occurred in the Indian Land Systems market since the establishment of DLSI in 2009, M&M and BAE Systems said in a statement. The strategic review will assess any changes necessary to address the evolving market and to meet emerging customer requirements, the statement said. No decision has yet been taken on the way forward, it said. Mahindra & Mahindra on 22 January 2013 announced the launch of the Verito Executive edition, a premium offering targeted primarily at corporate executives, professionals and businessmen. The Verito Executive edition has been competitively priced at Rs 7.75 lakh ex-showroom Delhi. Shares of two-wheeler makers rose on expectations of pick up in sales during the ongoing wedding season. Typically, the wedding season runs from November to February in India every year. TVS Motor Company (up 1.74%), Bajaj Auto (up 0.33%) and Hero MotoCorp (up 2.03%) edged higher. Bank stocks were mixed. India's largest private sector bank by net profit ICICI Bank rose 1.89% to Rs 1,194.90. The stock had hit 52-week high of Rs 1,209.70 in intraday trade on 15 January 2013. India's second largest private sector bank by net profit HDFC Bank rose 0.69% to Rs 669.10. 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 on 18 January 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. 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. Shares of banking giant State Bank of India (SBI) shed 0.96% to Rs 2,489. The stock had struck 52-week high of Rs 2,550 in intraday trade on 10 January 2013. SBI said on 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. Bank of India shed 2.85%. The state-run bank during market hours today, 28 January 2013, reported 12.19% growth in net profit to Rs 803.48 crore on 11.96% increase in total income to Rs 8959.83 crore in Q3 December 2012 over Q3 December 2011. The bank's provisions and contingencies for non-performing assets jumped 32.13% to Rs 915.78 crore in Q3 December 2012 over Q3 December 2011. The bank's provision coverage ratio as on 31 December 2012 stood at 60.74%. Bank of India's CASA deposits ratio improved to 33.84% as on 31 December 2012 from 32.41% as on 31 December 2011. Going forward, the bank will continue to focus on CASA growth. Bank of India's (BoI) ratio of gross non-performing assets (NPA) to gross advances stood at 3.08% as on 31 December 2012, lower than 3.42% as on 30 September 2012 but higher than 2.74% as on 31 December 2011. The ratio of net NPA to net advances stood at 1.97% as on 31 December 2012, lower than 2.04% as on 30 September 2012 but higher than 1.78% as on 31 December 2011. Bank of India intends to focus on SME, retail and rural business. The bank will also focus on credit monitoring and recovery. The bank also intends to provide focused attention on human resources. Interest rate sensitive 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. Lower interest rates may revive property demand. Purchases of both residential and commercial property are largely driven by finance. DLF (up 2.69%), Indiabulls Real Estate (up 1.18%), Unitech (up 2.47%), Godrej Properties (up 0.85%), Orbit Corporation (up 4.58%) and Parsvnath Developers (up 0.4%) edged higher. Housing Development and Infrastructure (HDIL) rose 1.7% in volatile trade. The company on 24 January 2013 clarified that it is taking appropriate and due action in carrying out all its obligations and undertakings relating to all its projects. The management is engaged in fulfilling its obligations to all stakeholders, the company said. HDIL said that the recent one-time sale of 50 lakh shares of the company by the company's Vice Chairman & Managing Director Mr. Sarang Wadhawan from his personal holding was carried out to honour certain obligations which are yet to be consummated pertaining to acquisition of land. HDIL said it will like to reiterate that the company and the management are not interested in indulging in any such activities which may damage and affect the interest of the company or its shareholders. The company issued this clarification after the company's shares slumped a staggering 22.44% in a single trading session to settle at Rs 74.65 on 24 January 2013. L&T fell 1.08% on profit booking after gains in previous two trading sessions triggered by good Q3 results. The company's net profit rose 13% to Rs 1122 crore on 10.77% growth in total income to Rs 15959.54 crore in Q3 December 2012 over Q3 December 2011. The company announced the Q3 results during trading hours on 24 January 2013. L&T said that the upward trend in the order inflow was sustained for the third consecutive quarter in Q3 December 2012. Order inflow rose 14% to Rs 19545 crore in Q3 December 2012 over Q3 December 2011. This translates into a cumulative growth of 22% in the order inflow for the nine months ended December 2012, L&T said in a statement. International order inflow contributed 22% of the total order inflow during the quarter. The major orders came from Building & Factories, Infrastructure and Power Transmission & Distribution sectors, L&T said in a statement. L&T's order book stood robust at Rs 162334 crore as on 31 December 2012. International order book constituted 13% of the total order book, L&T said in a statement. With regard to the future business outlook, L&T said that the recent policy measures by the government aimed at correcting the fiscal situation and boost growth are expected to improve economic outlook in India and revive the investments in the various sectors in which the company operates. L&T said the company has delivered consistent performance on the back of execution efficiencies, proven track record, diversified portfolio and international presence. With strong order book, the company expects to sustain its growth in the period ahead, L&T said in a statement. The company said it is strengthening its presence in select international markets, amidst intense competition. 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. The stock shed 2.12%. The company's consolidated net profit jumped 78% to Rs 728 crore on 14.02% fall in total operating income to Rs 5296 crore in Q3 December 2012 over Q3 December 2011. The company announced Q3 results during trading hours today, 28 January 2013. The order book of the company's engineering, procurement and construction business stood at Rs 12145 crore as on 31 December 2012. On consolidated basis, the net worth of the company stood at Rs 26156 crore ($ 4.8 billion) and book value per share at Rs 995 as on 31 December 2012. The company is conservatively financed with debt to equity ratio of 0.72 as on 31 December 2012. Adani Ports and Special Economic Zone gained 4.86%. The company's consolidated net profit rose 12.52% to Rs 361.09 crore on 49.83% growth in total income to Rs 1389.57 crore in Q3 December 2012 over Q3 December 2011. The company announced Q3 results during trading hours today, 28 January 2013. Adani Ports and Special Economic Zone (APSEZ) today, 28 January 2013, said the board of directors of the company has in-principle decided to divest the company's significant stake in entities controlling the Abbot Point Coal Terminal in Queensland, Australia to the Adani family, subject to requisite approvals, formalities and clearances, at a valuation determined by an independent valuer. This divestment will further enhance the financial strength of APSEZ in order to pursue its plans to acquire/set up new ports and logistics assets in India, the company said in a statement. APSEZ will focus on high growth Indian ports and logistics sector and maintain its leadership position in India, the company said while providing the logic for its decision to divest its stake in entities controlling the Abbot Point Coal Terminal, Australia. Adani Power dropped 4.4% after the company reported consolidated net loss of Rs 619.01 crore in Q3 December 2012, higher than net loss of Rs 356.30 crore in Q3 December 2011. Total income rose 75% to Rs 1884 crore in Q3 December 2012 over Q3 December 2011. Adani Power declared the Q3 results during market hours today, 28 January 2013. Commenting on the company's Q3 performance, Mr. Gautam Adani, Chairman, Adani Power said, "The domestic outlook for the power sector seems set to improve on the back of recent policy measures addressed by the government like PMO direction to sign FSA and to work on coal-pooling mechanism, SEB debt restructuring approval by cabinet, rail links for coal evacuation etc. We see these steps as clear indication of the importance attached to this vital sector and boost for more investment under the 12th five year plan". Mr. Prabal Banerji, CFO of Adani Power Business, said, "Our Profitability was already impacted mainly by high coal cost due to high cost incidence of imported coal and due to change of law in coal exporting countries. In addition, coal linkage and regular supply from the linkage of Coal India and its subsidiaries is also a must to ensure smooth power generation at optimal cost at our near 10 GW capacity at three plants. We have filed petition to CERC to revise tariff because of force majeure scenario due to change in law in coal exporting countries making imported coal very expensive and due to short supply of coal by CIL against FSA forcing us to use already expensive Imported Coal". 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. Sterlite Industries (India) announces Q3 results tomorrow, 29 January 2013. ICICI Bank, Lupin, Grasim Industries and Punjab National Bank unveil Q3 results on Thursday, 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. 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. BPCL announces Q3 results on 13 February 2013. Dr. Reddy's Laboratories unveils Q3 results on 14 February 2013. 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. According to a poll carried out by Capital Market, economists expect 50 bsp to 100 bsp reduction in repo rate during the first half of calendar year 2013 including a minimum 25 bsp rate cut expected at Third Quarter Review of Monetary Policy 2012-13 on 29 January 2013. 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. European stocks edged lower on Monday, 28 January 2013. Key benchmark indices in France, UK and Germany were up by 0.01% to 0.08%. Asian stocks edged higher on Monday, 28 January 2013, after a corporate-results-driven rally on Wall Street on Friday, 25 January 2013, and amid a positive earnings outlook for Chinese firms. Key benchmark indices in China, Hong Kong, Taiwan and Singapore rose by 0.14% to 2.41%. Key benchmark indices in Indonesia, Japan and South Korea fell by 0.36% to 0.94%. Data released on Sunday, 27 January 2013, showed that profit growth at major Chinese industrial enterprises slowed sharply to 5.3% in 2012, nearly one-fifth of the 25.4% jump seen the previous year. A 17.3% jump in December profits help improve the latest annual figure, fueled by better earnings momentum in the last quarter of the year. China is the world's second biggest economy after the United States. Japanese Finance Minister Taro Aso has rebutted foreign criticism that Tokyo is manipulating its currency lower to benefit Japan's exporters. Aso said the yen's fall in recent months was merely a side effect of his country's fight against the deflation that has long plagued the Japanese economy, according to reports. The finance minister's comments came amid growing talk of international tensions over what some see as competitive currency devaluations among the major economies. As per reports, Japanese Prime Minister Shinzo Abe and US President Barack Obama are close to finalizing plans for a summit on Feb. 21 or 22. The report didn't mention the yen as a possible agenda item. Trading in US index futures indicated a flat opening of US stocks on Monday, 28 January 2013. The Federal Open Market Committee (FOMC) holds a two-day meeting on interest rates in the United States on 29 and 30 January 2013. The influential US nonfarms payroll data for January 2013 is due for release on Friday, 1 February 2013.