Sensex regains 19,000 on rate cut hopes

Key benchmark indices jumped as steep drop in gold and oil prices eased concerns of high current account and fiscal deficit and data showing easing of wholesale price index triggered expectations of an interest-rate cut by the Reserve Bank of India (RBI). Interest rate sensitive auto, realty and banking stocks led the rally. The S&P BSE Sensex hit its highest level in over 2 weeks above the psychological 19,000 mark. The CNX Nifty hit its highest level in over 4 weeks. The market gained in three out of four trading sessions in the week just gone by. The S&P BSE Sensex jumped 773.90 points or 4.24% to 19,016.46, its highest closing level since 2 April 2013. The CNX Nifty surged 254.55 points or 4.6% to 5,783.10, its highest closing level since 18 March 2013. The BSE Mid-Cap index rose 1.94% and the BSE Small-Cap index gained 1.76%. Both these indices underperformed the Sensex. Key benchmark indices edged higher on Monday, 15 April 2013 as slowing wholesale price inflation raised rate cut expectations. The S&P BSE Sensex was up 115.24 points or 0.63% to 18,357.80 on that day, its highest closing level since 11 April 2013. Key benchmark indices surged on Tuesday, 16 April 2013 as steep drop in gold and oil prices eased concerns of high current account and fiscal deficit and Monday's (15 April 2013) data showing easing of wholesale price index triggered expectations of an interest-rate cut by the Reserve Bank of India (RBI). The S&P BSE Sensex jumped 387.13 points or 2.11% to settle at 18,744.93 on that day, its highest closing level since 3 April 2013. Key benchmark indices closed flat after witnessing high intraday volatility on Wednesday, 17 April 2013. The S&P BSE Sensex lost 13.77 points or 0.07% to 18,731.16 on that day, its lowest closing level since 15 April 2013. Key benchmark indices surged on Thursday, 18 April 2019 as gains in European markets boosted sentiment. The S&P BSE Sensex was up 285.30 points or 1.52% to 19,016.46 on that day, its highest closing level since 2 April 2013. The stock market remains shut on Friday, 19 April 2013, on account of Ram Navmi. From the 30-share Sensex pack, 24 stocks gained, 5 stocks fell and one stock was unchanged. Index heavyweight Reliance Industries (RIL) gained 0.84%. RIL's net profit jumped 31.9% to Rs 5589 crore on 1.4% fall in turnover to Rs 86618 crore in Q4 March 2013 over Q4 March 2012. On sequential basis, RIL's net profit rose 1.58% to Rs 5589 crore on 10.06% decline in turnover to Rs 86618 crore in Q4 March 2013 over Q3 December 2012. The company announced Q4 March 2013 results after trading hours on Tuesday, 16 April 2013. Net profit rose 4.8% to Rs 21003 crore on 9.2% growth in turnover to Rs 371119 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). RIL's gross refining margin (GRM) edged up to $10.1 a barrel in Q4 March 2013 from $9.6 a barrel in Q3 December 2012 and $7.6 a barrel in Q4 March 2012. The GRM edged up to $9.2 a barrel in FY 2013 from $8.6 a barrel in FY 2012. RIL said its retail business achieved cash breakeven with earnings before depreciation, finance cost and tax expense of Rs 78 crore in FY 2013. Turnover of the retail business jumped 42% to Rs 10800 crore in FY 2013 over FY 2012. FMCG stocks gained on reports of likely normal monsoon this year. FMCG companies derive a substantial revenue from rural markets. FMCG major Hindustan Unilever rose 1.04%. Index heavyweight and cigarette major ITC surged 7.57% to Rs 315.30. The stock hit record high of Rs 316.35 in intraday trade Thursday, 18 April 2013. The government raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14, which was unveiled on 28 February 2013. Bank stocks galloped on expectations that the Reserve Bank of India will cut its key policy rate viz. the repo rate to boost growth amid slowing wholesale price inflation. State Bank of India (SBI) surged 10.18%. The bank's Chairman Pradip Chaudhuri on Tuesday, 16 April 2013, said that SBI is looking at merging one of its five banking subsidiaries with it in the current financial year that started on 1 April 2013. ICICI Bank advanced 7.44%. ICICI Bank announces Q4 results on 26 April 2013. HDFC Bank rose 4.57%. HDFC Bank announces Q4 results on 23 April 2013. IT stocks fell on rally in rupee against the dollar. A firm rupee adversely affects operating profit margin of IT firms as the sector derives a lion's share of revenue from exports. IT major TCS was down 4.01%. The company after trading hours on Wednesday, 17 April 2013, said its consolidated net profit rose 1.9% to Rs 3616 crore on 2.2% growth in revenue to Rs 16430 crore in Q4 March 2013 over Q3 December 2012. The company clocked volume growth of 4.4% on sequential basis in the fourth quarter. Net profit jumped 33.6% to Rs 13917 crore on 28.8% growth in revenue to Rs 62989 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The company clocked volume growth of 16.8% in FY 2013 over FY 2012. TCS said there was balanced growth across markets and industries in FY 2013. All industry verticals grew in double digits in FY 2013, it said. TCS' full service capabilities continue to be leveraged by customers with new service lines growing at a fast pace. The infrastructure services segment grew 47%, Business Process Outsourcing grew 46% while Assurance Services, Enterprise Solutions and Global Consulting grew by 33%, 25% and 52% respectively, TCS said. Wipro dropped 3.82%. The company announces Q4 results Friday, 19 April 2013. The Securities & Exchange Board of India (Sebi) has exempted Wipro from a rule that prevents promoters of companies from selling their stakes within 12 weeks of another deal. Wipro after market hours on 15 April 2013 said that the Securities & Exchange Board of India (Sebi) has accepted the company's request and permitted the promoter and promoter group (including the entities that carried out the inter-se transfer) to divest through the offer for sale (OFS) route during the twelve weeks cool off period. Earlier, Wipro had on 25 March 2013 applied to SEBI seeking a specific relaxation exemption from the twelve week cooling off period for carrying out OFS through the stock exchange mechanism following the inter-se transfer amongst the promoter and promoter group entities on 15 March 2013. Infosys was flat. The company on Tuesday, 16 April 2013, said it has signed a major new strategic partnership with Queen's University Belfast aimed at combating the global cyber security threat. The collaboration brings together Infosys with Queen's University Belfast's Centre for Secure Information Technologies (CSIT), one of UK's largest and most prestigious university cyber security research labs, and Invest Northern Ireland, the Northern Ireland government's regional business development agency. Infosys has forecast a tepid 6% to 10% growth in revenue in both rupee terms and dollar terms for the year ending 31 March 2014 (FY 2014) as the company says that global economic uncertainties remain challenging for the IT industry. The revenue growth outlook is lower than industry body Nasscom's projection of 12% to 14% growth in IT exports in the current fiscal year. Infosys has not given full year earnings guidance this time. Infosys had earlier stopped offering quarterly guidance in July 2012. Capital goods stocks gained on renewed buying. The state-run power equipment major Bhel rose 3.48%. L&T jumped 8.33%. The company on 12 April 2013 said that it would acquire 50% stake in L&T-Komatsu (LTK) held by Komatsu Asia & Pacific Pte, a wholly owned subsidiary of Komatsu, Japan. With this buy-out, LTK will become a wholly owned subsidiary of L&T. LTK will continue to manufacture construction equipment and hydraulic components. Komatsu will be responsible for the production of Komatsu equipment including hydraulic excavators, L&T said in a statement. As a result of this transaction, the companies expect to able to provide premium products and services to customers, and maintain leadership position in construction & mining equipments business, offering state-of-the-art machines with highest level of quality and latest designs from Komatsu, L&T said. L&T will continue to be responsible for marketing, sales and product support in India for the Komatsu range of products, assuring customers of the highest level of Support, L&T said in a statement. Metal stocks edged higher. Jindal Steel & Power rose 2.73%. Hindalco Industries gained 2.29%. Sterlite Industries (India) rose 0.56% to Rs 89. The stock hit a 52-week low of Rs 83.15 in intraday trade on Tuesday, 16 April 2013. Tata Steel gained 0.2% to Rs 299.95. The stock had struck a 52-week low of Rs 292.70 in intraday trade on Tuesday, 16 April 2013. Tata Power declined 0.16%. The Central Electricity Regulatory Commission in an order issued on 15 April 2013 allowed the company to raise electricity tariffs on a temporary basis at its Mundra power plant on account of rising cost of imported coal. The CERC has allowed Coastal Gujarat Power, a unit of Tata Power that operates the plant in Gujarat, to charge "compensatory" tariffs for electricity until the fuel supply situation improves. The regulator will direct the setting up of a panel to finalise details of the compensatory tariff. The order follows a similar ruling by the regulator earlier this month, which allowed Adani Power to raise tariffs for electricity from its power plant at Mundra. Tata Power's 4,000-megawatt (MW) plant at Mundra runs on imported coal from Indonesia, but it has been suffering from mounting losses after the South East Asian nation raised levies on coal exports, which Tata Power has not been able to pass on to its customers so far. Auto stocks rose as slowing wholesale price inflation raised rate cut expectations. Purchases of automobiles, including that of cars, utility vehicles and commercial vehicles are substantially driven by financing. Mahindra & Mahindra (M&M) surged 9.55%. M&M on Tuesday, 16 April 2013, said Mahindra USA (MUSA), a part of Mahindra Group, closed the fiscal year 2013 with record billings and record retail sales, gaining over 2% points, delivering its highest ever market share in the US. Tata Motors rose 2.51%. The company on 12 April 2013 said that its global wholesales, including Jaguar Land Rover were 116,521 units in March 2013. Cumulative wholesales for the year ended 31 March 2013 (FY 2013) were 1,196,416 units. Tata Motors' British luxury car unit Jaguar Land Rover (JLR) on 10 April 2013 said its global sales rose 16% to a record 53,772 units in March 2013 over March 2012. JLR's global sales rose 17% to a record 115,504 units in Q1 March 2013 over Q1 March 2012. JLR said the Jaguar brand demonstrated strong growth with sales of 9,856 in March up 28% and sales for the quarter of 20,210 up 31%. Land Rover, meanwhile, delivered the best single month and quarter in its 65 year history with March sales of 43,916, up 14% and quarter one sales of 95,294, up 15% versus 2012, JLR said. Small-car maker Maruti Suzuki India surged 8.26%. Shares of two-wheeler makers rose after PSU OMCs reduced petrol prices by Rs 1 per litre on 15 April 2013. Hero MotoCorp (up 3.26%) and Bajaj Auto (up 4.14%) gained. PSU OMCs announced cut in petrol price by Re 1 per litre, excluding value added tax (VAT), effective midnight 15 April 2013 because of fall in international oil prices. The recent cut in petrol price comes on the back of 85 paise a litre reduction in rates on 2 April 2013 and Rs 2 a litre decrease effected on 16 March 2013. Among pharma stocks, Cipla declined 0.85%. Dr Reddy's Laboratories rose 0.16%. Sun Pharmaceutical Industries rose 5.27% to Rs 916.05. The stock hit record high of Rs 925 in intraday trade Thursday, 18 April 2013. The company on 15 April 2013, announced that the USFDA has granted its subsidiary, two tentative approvals for its Abbreviated New Drug Applications (ANDA) for generic version of Januvia, Sitagliptin Tablets and generic version of Glumetza, Metformin HCl Extended-release tablets. Telecom services major Bharti Airtel jumped 9.55%. The stock was the second top gainer from the Sensex pack. Inflation based on the monthly wholesale price index (WPI) eased the lowest level in 40 months at 5.96% in March 2013, and sharply lower than 6.84% in February 2013, data released by the government on 15 April 2013 showed. Non-food manufacturing inflation or core inflation slowed further to 3.41% in March 2013, the data showed. The government revised upwards WPI inflation for January 2013 to 7.31% from 6.62% reported earlier. Build up inflation rate in the financial year so far was 5.96% compared to a build up rate of 7.69% in the corresponding period of the previous year, the Ministry of Commerce & Industry said in a statement. India's exports declined 1.76% to $300.6 billion in the year ended 31 March 2013 (FY 2013) mainly on account of slowdown in the global economy, Commerce and Industry Minister Anand Sharma said on Thursday, 18 April 2013. The government had fixed an export target of $360 billion for FY 2013 which had been missed by a wide margin. The declining exports pushed up the trade deficit during FY 2013 to $190.91 billion from $183.4 billion in FY 2012. The government Thursday, 18 April 2013, announced a host of steps including extension of the zero-duty export Export Promotion Capital Goods (EPCG) scheme beyond March 2013 to encourage exports at the time of announcing the annual supplement to the Foreign Trade Policy. The EPCG scheme, which is a major incentive programme of the government, would be available to all sectors, the Minister said. Besides other schemes, the Minister also announced incentives for Special Economic Zones (SEZs) to encourage exports.