Sensex registers a small decline

Key benchmark indices registered small losses after swinging between positive and negative zone throughout the day. The barometer index, the S&P BSE Sensex, fell 12.45 points or 0.07%, up about 35 points from the day's low and off close to 67 points from the day's high. FMCG stocks gained on reports of likely normal monsoon this year. Index heavyweight Reliance Industries (RIL) edged higher. Another index heavyweight and cigarette maker ITC reversed intraday losses in late trade. The market breadth turned negative from positive in late trade. Indian stocks edged lower for fourth day in a row today, 8 April 2013. The Sensex has lost 603.17 points or 3.17% in four trading sessions from a recent high of 19,040.95 on 2 April 2013. The Sensex has fallen 397.99 points or 2.11% in April 2013 (till 8 April 2013). The Sensex has declined 988.93 points or 5.09% in calendar 2013 so far (till 8 April 2013). From a 52-week high of 20,203.66 on 29 January 2013, the Sensex has declined 1,765.88 points or 8.74%. From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 2,688.80 points or 17.07%. IT stocks edged lower on weak US economic data. Metal stocks edged lower as LMEX, a gauge of six metals traded on the London Metal Exchange, dropped 0.63% on Friday, 5 April 2013. Bharti Airtel and Idea Cellular rose after the Supreme Court allowed Bharti Airtel, Vodafone India and Idea Cellular to continue 3G pacts, allowing them to offer 3G services outside their licensed zones, until the next hearing on 11 April 2013. Many pharma stocks gained on renewed buying. Shares of hospitality companies rose after the government announced foreign tourists arrival data for March 2013. Shares of travel & tours companies fell. A bout of volatility was witnessed in early trade as key benchmark indices regained positive zone and hit fresh intraday high after slipping into the red for a brief period after opening higher. The Sensex once again slipped into the red and hit fresh intraday low in morning trade. The Sensex continued to alternately move between gains and losses in mid-morning trade. The market extended intraday losses to hit fresh intraday low in early afternoon trade. Key benchmark indices turned positive in afternoon trade led by strong opening in European markets. The market retained positive terrain in mid-afternoon trade. The market once again slipped into the red later. The market sentiment was affected adversely by data showing that foreign funds remained net sellers of Indian stocks on Friday, 5 April 2013. Foreign institutional investors (FIIs) sold shares worth a net Rs 203.18 crore on Friday, 5 April 2013, as per provisional data from the stock exchanges. The S&P BSE Sensex fell 12.45 points or 0.07% to 18437.78, its lowest closing level since 20 November 2012. The index fell 47.30 points at the day's low of 18,402.93 in early afternoon trade. The index rose 54.25 points at the day's high of 18,504.48 in early trade. The CNX Nifty fell 10.30 points or 0.19% to 5,542.95, its lowest closing level since 13 September 2012. The index hit a low of 5,537.05 in intraday trade. The index hit a high of 5,569.20 in intraday trade. The BSE Mid-Cap index fell 0.18% and the BSE Small-Cap index fell 0.13%. Both these indices underperformed the Sensex. The market breadth, indicating the overall health of the market, turned negative from positive in late trade. On BSE, 1,155 shares fell and 1,056 shares rose. A total of 108 shares were unchanged. The total turnover on BSE amounted to Rs 1359 crore, lower than Rs 1680.05 crore on Friday, 5 April 2013. The S&P BSE Consumer Durables (up 1.18%), the S&P BSE FMCG (up 0.77%), the S&P BSE Healthcare (up 0.71%), the S&P BSE Power (up 0.64%), the S&P BSE Oil & Gas (up 0.55%), the S&P BSE Auto (up 0.35%) and the S&P BSE Realty (up 0.11%), outperformed the Sensex. The S&P BSE PSU (down 0.11%), the S&P BSE Teck (down 0.36%), the S&P BSE Metal (down 0.61%), the S&P BSE banking index -- the Bankex (down 0.79%), the S&P BSE Capital Goods (down 0.87%) and the S&P BSE IT (down 0.98%), underperformed the Sensex. Among the 30-share Sensex pack, 17 stocks gained while rest of them fell. Index heavyweight Reliance Industries (RIL) gained 1.13% at Rs 789.15. The scrip hit high of Rs 793.50 and a low of Rs 778. Shares of Reliance Communications jumped 4.52%. Reliance Jio Infocomm and Reliance Communications (RCom) on 2 April 2013 announced the signing of a definitive agreement for approximately Rs 1200 crore as one time indefeasible right to use (IRU) fees for sharing RCom's nationwide inter-city fiber optic network infrastructure. Reliance Jio Infocomm will utilize multiple fiber pairs across RCom's 1.2 lakh kilometres inter-city fiber optic network to provide a robust and future proof backbone for rolling out its state-of-the-art 4G services. As per the agreement, RCom will in turn have reciprocal access to optic fiber infrastructure to be built by Reliance Jio Infocomm in the future. The agreement provides for joint working arrangements to be put in place immediately for upgradation of the optic fiber network to ensure seamless delivery of next generation services. Among other Reliance Anil Dhirubhai Ambani (ADA) Group companies, Reliance Infrastructure, Reliance Capital, and Reliance Power gained by 1.40% to 3.34%. FMCG stocks gained on reports of likely normal monsoon this year. FMCG companies derive a substantial revenue from rural markets. Jyothy Laboratories (up 7.93%), Tata Global Beverages (up 3.39%), Godrej Consumer Products (up 2.98%), Marico (up 1.54%), Hindustan Unilever (up 1.51%), Britannia Industries (up 0.53%), Bata India (up 0.22%) and GlaxoSmithKline Consumer Healthcare (up 0.03%), edged higher. Index heavyweight and cigarette major ITC rose 0.50% to Rs 292.90. The scrip hit high of Rs 293.75 and a low of Rs 285.65. The stock had hit record high of Rs 310.75 on 4 February 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. The India Meteorological Department will issue its initial official forecast of 2013 southwest monsoon in this month. Bharti Airtel and Idea Cellular rose between 3.90% to 3.63% after the Supreme Court today, 8 April 2013, allowed Bharti Airtel, Vodafone India and Idea Cellular to continue 3G pacts, allowing them to offer 3G services outside their licensed zones, until the next hearing on 11 April 2013. The telecom department had termed Airtel, Vodafone and Idea operations in seven circles, where they don't have licence, as illegal. The department had earlier said that the 3G roaming pacts were forged in a sheer violation of licensing terms and conditions, and such pacts have deep impact on spectrum auction. The telecommunications ministry had asked Bharti Airtel, Vodafone and Idea Cellular to end the pacts. Metal stocks edged lower as LMEX, a gauge of six metals traded on the London Metal Exchange dropped 0.63% on Friday, 5 April 2013. Sesa Goa (down 2.34%), Jindal Steel & Power (down 1.3%), Tata Steel (down 0.75%), Hindustan Zinc (down 0.69%) and NMDC (down 0.6%), edged lower. Sterlite Industries (India) fell 1.85% to Rs 87.60. The stock hit a 52-week low of Rs 86.95 in intraday trade today, 8 April 2013. JSW Steel declined 0.53%. The company said during market hours today, 8 April 2013, that its crude steel production rose 2% to 2.109 million tonnes in Q4 March 2013 over Q4 March 2012. The production of flat rolled products rose 11% to 1.65 million tonnes in Q4 March 2013 over Q4 March 2012. The production of long rolled products fell 6% to 0.438 million tonnes in Q4 March 2013 over Q4 March 2012. The crude steel production rose 15% to 8.518 million tonnes in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The production of flat rolled products rose 17% to 6.28 million tonnes in FY 2013 over FY 2012. The production of long rolled products rose 18% to 1.8 million tonnes in FY 2013 over FY 2012. JSW Steel said in spite of sever constraints in availability and quality of iron ore in the state of Karnataka, the company could operate its Vijayanagar plant at about 80% capacity due to its unique ability of using low grade iron ore through beneficiation process. IT stocks edged lower on weak US economic data. The United States is the biggest outsourcing market for the Indian IT firms. Infosys shed 1.07%. Infosys announces Q4 results on Friday, 12 April 2013. Infosys said during market hours on 2 April 2013, that it has signed an agreement with RWE Supply & Trading (RWEST), a leading European energy trading house to provide technology services to transform RWEST's trading operations to create business efficiencies and drive growth from new markets and commodities. Infosys on 15 March 2013 announced that it has been selected by India Post to implement and manage a platform that will transform its rural operations. With this new agreement, Infosys will facilitate India Post's Rural Systems Integration (RSI) program. Software major TCS declined 1.27%. The company on 26 March 2013 said that it has bagged a contract from Southern Water to implement a customer services and revenue transformation programme for the latter. The programme will combine front and back-end technology deployments with internal process redevelopment. Southern Water will benefit from enhanced customer service capabilities, improved cash collection and debt management, and will see a reduction in operating expenditure, TCS said a statement. Wipro edged lower in choppy trade. The scrip dropped 1.39% to Rs 448.45. The stock hit high of Rs 455.80 and low of Rs 430.05. HCL Technologies declined 1.62% to Rs 745.20. The company on 3 April 2013 said that it is collaborating with North Carolina New Schools -- a statewide public-private catalyst for education innovation -- to create and promote science, technology, engineering and math (STEM) programs and get college students ready for the 21st century workforce. HCL will design an online technology hub which will serve as a central gathering place for featured content and discussion between teachers, principals, school staff, students, counselors, college liaisons, district office superintendents and NC New Schools administration staff. NC New Schools will leverage HCL's services for content creation and management of its collaborative, online community offering access to tools and resources required to accelerate systemic, sustainable innovation in schools. NC New Schools will move approximately 3,000 NC New Schools intranet users to the new technology hub. Bhel rose 2.62% after the company said during market hours today, 8 April 2013, that as per provisional figures, the company's order inflows surged 42.69% to Rs 31528 crore in the year ended March 2013 (FY 2013) over the year ended March 2012 (FY 2012). The company announced provisional earnings for FY 2013 during trading hours today, 8 April 2013. Bhel's net profit fell 7.88% to Rs 6485 crore on 1.02% increase in turnover to Rs 50,015 crore in FY13 over FY12. Profit before tax (PBT) fell 10.40% to Rs 9231 in FY13 over FY12. Many pharma stocks gained on renewed buying. Glenmark Pharmaceuticals (up 5.49%), Cipla (up 2.19%), Divi's Laboratories (up 1.49%), Dr. Reddy's Laboratories (up 1.44%), Aurobindo Pharma (up 1.36%), Sun Pharmaceutical Industries (up 0.88%), Wockhardt (up 0.69%), Biocon (up 0.14%) and Lupin (up 0.08%), edged higher. Shares of hospitality companies rose after the government announced foreign tourists arrival data for March 2013. Country Club (India) (up 9.04%), Hotel Leela Venture (up 4.16%), Oriental Hotels (up 1.39%), EIH (up 1.08%), Indian Hotels Company (up 0.73%) and Taj GVK Hotels & Resorts (up 0.23%), edged higher. Shares of travel & tours companies fell. Thomas Cook (India) and Cox & Kings shed by 0.10% to 0.58%. Foreign Tourist Arrivals (FTAs) in India rose 2.8% to 6.4 lakh in March 2013 over March 2012, data released by the Ministry of Tourism today, 8 April 2013, showed. Foreign Exchange Earnings (FEEs) from tourism rose 11.9% to $1.75 billion in March 2013 over March 2012. In rupee terms, FEEs from tourism jumped 21% to Rs 9491 crore in March 2013 over March 2012. United Spirits clocked a highest turnover of Rs 73.83 crore on BSE. State Bank of India (Rs 46.16 crore), Reliance Capital (Rs 38.41 crore), Reliance Communications (Rs 36.47 crore) and L&T (Rs 25.96 crore), were the other turnover toppers on BSE in that order. Cals Refineries reported highest volumes of 77.32 lakh shares on BSE. Reliance Communications (55.25 lakh shares), TVS Motor Company (50.02 lakh shares), Avance Technologies (34.05 lakh shares) and Birla Power Solutions (33.04 lakh shares), were the other volume toppers on BSE in that order. The upside on the bourses may be capped as reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms will result in supply of equity in the market over the next few months. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 30 June 2013, while the deadline for state-run firms is 31 August 2013. PSU divestment will also add to share sale glut in FY 2014. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014. The next major trigger for the market is Q4 March 2013 results. The Q4 March 2013 corporate earnings season will begin around mid-April 2013. Infosys announces Q4 results on Friday, 12 April 2013. IndusInd Bank announces Q2 results on 18 April 2013. Cairn India announces Q4 results on 22 April 2013. HDFC Bank announces Q4 results on 23 April 2013. Axis Bank will announce its Q4 March 2013 results on 24 April 2013. ICICI Bank announces Q4 results on 26 April 2013. HDFC announces Q4 results on 8 May 2013. On the macro front, the government will unveil industrial production data for February 2013 on Friday, 12 April 2013. Industrial production had risen 2.4% in January 2013, as against a contraction of 0.5% in December 2012. The government will unveil data on the combined consumer price index for urban and rural India for March 2013 on 12 April 2013. Inflation based on the combined consumer price index for urban and rural India had edged up to 10.91% in February 2013, from 10.79% in January 2013. The government will unveil data on the wholesale price index (WPI) for March 2013 on 15 April 2013. The annual rate of inflation, based on the monthly wholesale price index (WPI), edged up to 6.84% in February 2013 from 6.62% in January 2013. The India Meteorological Department will issue its initial forecast of 2013 southwest monsoon in this month. Reserve Bank of India Governor D. Subbarao said Saturday, 6 April 2013, said that the high fiscal deficit is a problem because it exacerbates inflation and impedes monetary policy transmission. The Reserve Bank of India (RBI) will announce the Monetary Policy Statement 2013-14 on 3 May 2013. The RBI cut its key policy rate viz. the repo rate by 25 basis points to 7.5% after a mid-quarter monetary policy review on 19 March 2013. The key macroeconomic priorities are to raise the growth rate, restrain inflation pressures and mitigate the vulnerability of the external sector, RBI said at that time. Even as the policy stance emphasises addressing the growth risks, the headroom for further monetary easing remains quite limited, the RBI said. The RBI said it will continue to actively manage liquidity through various instruments, including open market operations (OMO), so as to ensure adequate flow of credit to productive sectors of the economy. On the political front, the Congress led UPA government has been reduced to a minority government, with DMK removing support to the government in March this year citing differences on the issue of atrocities on Tamils in Sri Lanka. Earlier, the Trinamool Congress withdrew support to the government in September last year as it opposed economic reforms. The Samajwadi Party (SP) along with its regional rival in Uttar Pradesh Bahujan Samaj Party (BSP) provide outside support to the UPA government. SP has 22 MPs in Lok Sabha and BSP has 21 MPs. The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017. The second half of the Budget session of the Parliament begins on 22 April 2013. The Budget Session of the Parliament ends on 10 May 2013. The government has lined up a number of key bills for consideration and passing during the Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008. Assembly elections will be held in Karnataka on 5 May 2013 and the counting of votes and results of the election will be declared on 8 May 2013. European stocks rose for the first time in four days on Monday, rebounding from the biggest weekly drop since November, before a report on German industrial production. Key benchmark indices in UK, France and Germany were up by 0.23% to 0.59%. Most Asian stocks dropped on Monday after China reported more infections from a deadly new strain of bird flu. Key benchmark indices in China, Hong Kong, Indonesia, Singapore, South Korea and Taiwan shed by 0.04% to 2.39%. Japan's Nikkei Average jumped 2.8%. China tried to ease concerns that a new strain of bird influenza will spark an epidemic as authorities reported three more infections of the deadly H7N9 virus that's killed six people since March. Japan rebounded to a current-account surplus in February as a depreciating yen and record monetary stimulus boost the outlook for a revival in the world's third-biggest economy. The surplus, the first in four months, was 637.4 billion yen ($6.5 billion), the Ministry of Finance said in Tokyo today. Trading in US index futures indicated that the Dow could gain 34 points at the opening bell on Monday, 8 April 2013. US stocks fell on Friday after the government reported a sharp slowdown in hiring last month that was far worse than economists had expected. US employers added just 88,000 jobs in March, the Labor Department reported. That's half the average of the previous six months.