Market ekes out small gains

Key benchmark indices eked out small gains as European stocks reversed initial losses. The barometer index, the S&P BSE Sensex, attained its highest closing level in over 28 months. The 50-unit CNX Nifty attained its highest closing level in more than 30 months. The Sensex advanced 38.79 points or 0.19%, up close to 140 points from the day's low and off about 40 points from the day's high.The market breadth, indicating the overall health of the market, was negative. Indian stocks gained for the fourth straight day today, 17 May 2013. From a recent low of 19,691.67, the Sensex has gained 594.45 points or 3.01% in four trading sessions. The Sensex has gained 781.94 points or 4% in this month so far (till 17 May 2013). The Sensex has gained 859.41 points or 4.42% in calendar 2013 so far (till 17 May 2013). From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 4,537.41 points or 28.8%. Coming back to today's trade, index heavyweight and cigarette major ITC dropped in choppy trade after reporting strong Q4 results. Another index heavyweight Reliance Industries (RIL) trimmed intraday losses in late trade. Power equipment makers rallied across the board. Auto stocks were mixed. Cement stocks rose after the Competition Appellate Tribunal (COMPAT) today, 17 May 2013, passed an order granting a stay on the penalty imposed by the Competition Commission of India on 11 cement firms on allegations of cartelization. The S&P BSE Sensex advanced 38.79 points or 0.19% to settle at 20,286.12, its highest closing level since 5 January 2011. The index rose 80.86 points at the day's high of 20,328.19 in late trade. The index fell 92.32 points at the day's low of 20,155.01 in mid-afternoon trade, its lowest level since 15 May 2013. The CNX Nifty advanced 17.40 points or 0.28% to settle at 6,187.30, its highest closing level since 11 January 2011. The index hit a high of 6,199.95 in intraday trade. The index hit a low of 6,146.15 in intraday trade. The BSE Mid-Cap index rose 0.33% and outperformed the Sensex. The BSE Small-Cap index rose 0.13% and underperformed the Sensex. The total turnover on BSE amounted to Rs 2105 crore, lower than Rs 2387.44 crore on Thursday, 16 May 2013. The market breadth, indicating the overall health of the market, was negative. On BSE, 1,245 shares declined and 1,112 shares rose. A total of 142 shares were unchanged. Among the 30-share Sensex pack, 16 stocks rose and the rest of them fell. Index heavyweight Reliance Industries (RIL) fell 0.68% to Rs 834.40. The stock hit a high of Rs 844.70 and low of Rs 823.50. Index heavyweight and cigarette major ITC fell 0.62% to Rs 334.70 after announcing Q4 results. The stock hit a high of Rs 341.20 and low of Rs 333.45. The stock had hit record high of Rs 355 in intraday trade on 11 May 2013. The company's net profit rose 19.43% to Rs 1927.98 crore on 19.12% growth in total income to Rs 8511.38 crore in Q4 March 2013 over Q4 March 2012. The result was announced during market hours today, 17 May 2013. ITC's net profit rose 20.38% to Rs 7418.39 crore on 18.74% growth in total income to Rs 30839.97 crore in the year ended March 2013 over the year ended March 2012. On a consolidated basis, ITC's net profit rose 21.57% to Rs 7608.07 crore on 19.02% growth in total income to Rs 32505.14 crore in the year ended March 2013 over the year ended March 2012. ITC's board of directors at its meeting held today, 17 May 2013, recommended a dividend of Rs 5.25 per share for the financial year ended 31 March 2013. Power equipment makers rallied across the board. ABB jumped a staggering 21.01%. Crompton Greaves, L&T, Bhel and Siemens advanced 1.84% to 9.13% Auto stocks were mixed. Tata Motors rose 0.05%. The company's British luxury car unit Jaguar Land Rover (JLR) reported 12% increase in sales to 28,503 units in April 2013 over April 2012. During the first four months of the year, Jaguar Land Rover sold 143,974 vehicles, up 16%. India's largest car maker by sales, Maruti Suzuki India fell 1% to Rs 1709.40 on profit booking. The stock had hit record high of Rs 1756 in intraday trade on Wednesday, 15 May 2013. The stock surged recently on the back of a weakening yen. Weak yen could boost earnings of Maruti Suzuki as it imports raw materials from its Japanese parent Suzuki Motor Corporation. It also pays annual royalty on sales to the Japanese parent. Mahindra & Mahindra (M&M) rose 0.03% to Rs 985.50. The stock had hit record high of Rs 997 in intraday trade on Thursday, 16 May 2013. Two wheeler markers were mixed. Bajaj Auto rose 1.44%. The company's net profit fell 1% to Rs 766 crore on 4% rise in turnover to Rs 4990 crore in Q4 March 2013 over Q4 March 2012. Net profit rose 1% to Rs 3044 crore on 3% growth in turnover to Rs 20793 crore in the year ended 31 March 2013 (FY 2013) over the year ended 31 March 2012 (FY 2012). The result was announced during trading hours on Thursday, 16 May 2013. Bajaj Auto said that the company's performance in FY 2013 was good in a very difficult year for the automobile industry. The company's strategy to build strong brands and offer differentiated products in the front-end, and focus on cost and productivity improvements in the back-end, has yielded desired results, Bajaj Auto said. India's largest motorcycle maker by sales, Hero MotoCorp dropped 0.56%. The company said on 1 May 2013 its total sales fell 9.5% to 4.99 lakh in April 2013 over April 2012. Motherson Sumi Systems lost 4.11% after consolidated net profit rose 0.49% to Rs 195.80 crore on 3.9% growth in total income from operations to Rs 6675.84 crore in Q4 March 2013 over Q4 March 2012. The company announced Q4 results during trading hours today, 17 May 2013. Shares of Motherson Sumi Systems had witnessed a pre-result rally. The stock had surged 7.38% in three trading sessions to settle at Rs 213.15 on Thursday, 16 May 2013, from a recent low of Rs 198.50 on 13 May 2013. Motherson Sumi Systems' consolidated net profit jumped 71.21% to Rs 444.54 crore on 71.79% growth in total income to Rs 25633.91 crore in FY 2013 over FY 2012. Motherson Sumi Systems said the consolidated results include results of Samvardhana Motherson B.V. (SMBV) which acquired stake in Peguform GmbH and Peguform Iberica, SL on 23 November 2011 and hence the figures of FY 2013 are not strictly comparable with FY 2012. The company and Samvardhana Motherson International (SMIL) hold directly or indirectly 51% and 49% respectively in SMBV. Further, the company through its subsidiaries has acquired 3.72% stake in Peguform Group (SMP Deutschland GmbH and SMP Automotive Technology Iberica S.L) thereby increasing its stake in the Peguform Group from 80% to 83.72% and in lieu transferred the 50% stake held in Wethje Group to Cross Industries at the cost of acquisition, Motherson Sumi said. Motherson Sumi Systems' board of directors at a meeting held today, 17 May 2013, recommended dividend of Rs 2 per share for FY 2013. Cement stocks rose after the Competition Appellate Tribunal (COMPAT) today, 17 May 2013, passed an order granting a stay on the penalty imposed by the Competition Commission of India on 11 cement firms on allegations of cartelization. The COMPAT has asked 11 cement companies, which were together asked to pay a penalty of Rs 6300 crore by the Competition Commission of India (CCI) in June 2012 to pay Rs 630 crore or 10% of the penalty within the next four weeks ahead of a final hearing in the case in August 2013. The tribunal said that if the cement firms fail to deposit the amount within a 30 days time-frame, their petition would be dismissed. ACC rose 0.71%. The company said after market hours today, 17 May 2013, that the Competition Appellate Tribunal (COMPAT) has passed an order granting the stay on a penalty of Rs 1147.59 crore imposed by the Competition Commission of India on the company relating to the competition law proceedings started in 2010 which aimed at investigating the conduct of several leading cement manufacturers in India including ACC. The stay on order was with condition that company will deposit Rs 114.76 crore which is 10% of the penalty amount within 4 weeks. Ambuja Cements gained 2.06%. The company said during market hours today, 17 May 2013, that the Competition Appellate Tribunal (COMPAT) has passed an order granting the stay on a penalty of Rs 1163 crore imposed by the Competition Commission of India on the company relating to the competition law proceedings started in 2010 which aimed at investigating the conduct of several leading cement manufacturers in India including Ambuja Cements. The stay on order was with condition that company will deposit Rs 116.30 crore which is 10% of the penalty amount within 4 weeks. UltraTech Cement rose 0.76%. The COMPAT has granted stay on Competition Commission of India's (CCI) earlier order imposing penalty of Rs 1175.49 crore on the company alleging cartelization against certain cement manufacturing companies including the company and ordered deposit of 10% of the penalty amount of Rs 1175.49 crore within one month from the date of the order. Shares of Apollo Hospitals Enterprise and GlaxoSmithkline Consumer Healthcare extended Thursday's gains triggered by an announcement of their inclusion in MSCI India Index from close of 31 May 2013. Apollo Hospitals Enterprise rose 1.88% to Rs 1,067.75 after striking a record high of Rs 1,096.15 in intraday trade today, 17 May 2013. GlaxoSmithkline Consumer Healthcare surged 6.49% to Rs 5,093.95, after striking a record high of Rs 5,248.90 in intraday trade today, 17 May 2013. Oil India declined 1.16%. Wockhardt fell 2.69%. Wockhardt and Oil India will also be included in MSCI India Index from close of 31 May 2013. Realty stocks rose for the third straight day on expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013. Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance. HDIL, Sobha Developers and Unitech rose by 2.17% to 3.2%. DLF rose 2.72% to Rs 249.45. The realty major raised Rs 1863.42 crore from the issue of 8.10 crore shares to institutional investors at Rs 230 per share on 14 May 2013. The share sale was undertaken as an institutional placement programme (IPP) via an auction through the stock exchanges mechanism. Many bank stocks extended recent gains triggered by expectations that the RBI may further cut policy rates to perk up economic growth after the latest data showed a sharp fall in wholesale price inflation in April 2013. A rate cut would boost credit offtake. Axis Bank gained 0.18% to Rs 1,532.80. The stock hit 52-week high of Rs 1,540 in intraday trade today, 17 May 2013. Kotak Mahindra Bank rose 1.98% to Rs 791.60. The stock hit record high of Rs 796 in intraday trade today, 17 May 2013. The bank said during market hours on Thursday, 16 May 2013, that at the meeting of the Preferential Issue and Allotment Committee of the bank held on Thursday, 16 May 2013, the Committee has allotted 2 crore equity shares on preferential basis to Heliconia Pte, an affiliate of Government of Singapore Investment Corporation, on the terms approved by the shareholders of the bank at the Extraordinary General Meeting of the bank held on 9 May 2013. ICICI Bank rose 1.92% after the bank after trading hours on Thursday, 16 May 2013, said it has received an aggregate equity capital repatriation of Canadian dollar 75 million from ICICI Bank Canada, its wholly owned banking subsidiary in Canada. Post the repatriation, the share capital of ICICI Bank Canada is Canadian dollar 857 million and its capital adequacy ratio continues to be strong, ICICI Bank said in a statement. ICICI Bank said it already has a strong capital adequacy ratio, and the return of capital by the subsidiary will enhance the bank's ability to optimise capital deployment and return on equity. . HDFC Bank declined 0.55% to Rs 718.70. The stock's intraday high of Rs 724 matched with a record high hit in intraday trade on Thursday, 16 May 2013. Yes Bank fell 0.06% to Rs 542.30. The stock reversed direction after hitting record high of Rs 547.10 in intraday trade today, 17 May 2013. Shares of India's biggest commercial bank in terms of branch network, State Bank of India (SBI), rose 0.41%. HDFC fell 0.49% to Rs 903.50. The stock had hit record high of Rs 916.65 in intraday trade on Thursday, 16 May 2013. Sun TV Network fell 3.17% after Q4 results. The company's net profit rose 12% to Rs 177.50 crore on 12% rise in total income to Rs 494.30 crore in Q4 March 2013 over Q4 March 2012. The company announced its Q4 results during market hours today, 17 May 2013. IT stocks were mixed. Tata Consultancy Services (TCS) rose 0.95%. HCL Technologies declined 2.45%. The company on Wednesday, 15 May 2013, announced that it has been selected by Husqvarna Group, a global leader in products and solutions for garden, park and forest care as well as construction, as a global strategic partner. HCL will provide comprehensive business transformation services to Husqvarna. Infosys rose 0.6%. The company after trading hours on Wednesday, 15 May 2013, said that Turkland Bank (T-Bank), one of Turkey's leading private banks, has deployed Infosys' Finacle core banking, CRM and treasury solutions. This deployment empowers T-Bank to meet the needs of retail and corporate customer segments with faster product rollout and improved customer service, Infosys said. Wipro shed 0.94%. The company on 9 May 2013 said that the Securities & Exchange Board of India (Sebi) has approved its proposal to meet the minimum public shareholding requirement through a transfer of equity shares by the promoter group to an 'Irrevocable Independent Trust' with trustees either from public sector banks or public financial institutions for advancing philanthropic activities through its beneficiaries. Wipro said that the company and the promoter group have undertaken multiple steps to fulfill the minimum public shareholding requirement including Offer for Sale (OFS). The demerger of the 'diversified' business is also expected to increase public shareholding. Any shortfall to meet public shareholding prior to due date of meeting the minimum public shareholding requirement would be transferred to the 'Irrevocable Independent Trust' and the trust shall effect a sale of such equity shares forming part of the trust funds within a period of two years from the date of such settlement, Wipro said. Tech Mahindra declined 1.45%. Mahindra Satyam declined 1.5% after Q4 results. The company's consolidated profit after tax jumped 467.5% to Rs 454 crore on 0.2% decline in revenue to 1936 crore in Q4 March 2013 over Q3 December 2012. The sharp surge in net profit on sequential basis was due to exceptional items. There was a one-time exceptional expense reversal of Rs 134 crore in Q4 March 2013. On the other hand, in Q3 December 2012, the company had incurred exceptional one-time loss of Rs 294.04 crore pertaining to the Aberdeen UK claim settlements. Mahindra Satyam's earnings before interest, taxation, depreciation and amortization (EBITDA) declined 7% to Rs 389.23 crore in Q4 March 2013 over Q3 December 2012. EBITDA margin declined to 20.1% in Q4 March 2013 from 21.6% in Q3 December 2012. The company announced the result after trading hours on Thursday, 16 May 2013. Speaking on the occasion, CP Gurnani, CEO, Mahindra Satyam said, "The large deal win during the quarter is of particular significance and vindicates our investment of time and effort in this area. Our preparedness with Connected Solutions for a Connected World remains positive and we are hopeful of similar wins, which will help us accelerate our growth in the ensuing quarters". Vineet Nayyar, Chairman, Mahindra Satyam said that the merger of Mahindra Satyam with Tech Mahindra is at its penultimate phase. He added that the merger will embark a new chapter for Mahindra Satyam. Cadila Healthcare declined 2.08%. The company after market hours on Thursday, 16 May 2013, announced the launch of a drug for the treatment migraine in the United States. The drug had annual sales of $175 million in the US in 2012 as per IMS Health data. Cadila Healthcare said that the company now has 79 approvals and has so far filed 173 abbreviated new drug applications (ANDAs) since the commencement of the filing process in FY 2003-04. As per the Q4 results calendar, Coal India unveils standalone FY 2013 results on 20 May 2013. L&T unveils Q4 results on 22 May 2013. Tata Steel, State Bank of India and Bharat Heavy Electricals (Bhel) unveil Q4 results on 23 May 2013. Coal India unveils consolidated FY 2013 results on 27 May 2013. Sun Pharma, Power Grid Corporation of India, GAIL (India) and Hindalco Industries unveil Q4 results on 28 May 2013. Tata Motors, ONGC, NMDC and BPCL unveil Q4 results on 29 May 2013. M&M and Tata Power unveil Q4 results on 30 May 2013. Global credit rating agency Standard & Poor's (S&P) today, 17 May 2013, affirmed India's sovereign rating at BBB-minus with a negative outlook, reiterating there was a one-in-three chances of a ratings downgrade over the next 12 months. S&P said the government's ability to prop up investment growth remains uncertain. The ratings agency, however, said there was scope to upgrade the sovereign ratings if the government unleashes public and private investments to spur economic growth. The monsoon rains may arrive on the southern coast around 3 June 2013, the weather office forecast on 15 May 2013. The rains, which run from June to September, are vital for the 55% of farmland without irrigation in India, one of the world's largest producers and consumers of food. The India Meteorological Department (IMD) has predicted normal rains this year. The Reserve Bank of India (RBI) undertakes mid-quarter review of the monetary policy on 17 June 2013. RBI Governor D Subbarao on 14 May 2013 said that the central bank will take note of falling inflation when discussing potential interest rate cuts. The RBI on 3 May 2013 cut its key policy rate viz. the repo rate by 25 basis points (bps) to 7.25% and kept the cash reserve ratio (CRR) for banks unchanged at 4% after a monetary policy review. RBI said at that time that the balance of risks stemming from its assessment of the growth-inflation dynamic provides little space for further monetary easing. The RBI said it will endeavour to condition the evolution of inflation to a level of 5% by March 2014, using all instruments at its command. 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. European stock markets reversed initial losses on Friday. Key benchmark indices in UK, France and Germany rose by 0.15% to 0.4%. Most Asian stocks edged higher on Friday, 17 May 2013. Key benchmark indices in China, Indonesia and Japan were up by 0.67% to 1.38%. Key benchmark indices in Singapore and Taiwan shed by 0.09% to 0.26%. Stock markets in Hong Kong and South Korea were closed for holidays. Trading in US index futures indicated that the Dow could gain 46 points at the opening bell on Friday, 17 May 2013. US stocks fell on Thursday, 16 May 2013, after a Federal Reserve official tipped a pullback in the central bank's easing programs could come as soon as this summer. Media reports had last week suggested that Fed officials have mapped out a strategy for winding down quantitative easing, although the timing hasn't been decided. Meanwhile, the data from the Philadelphia Federal Reserve showed factory activity in the mid-Atlantic region contracted, while the Commerce Department reported that US housing starts plummeted 16.5% in April. New claims for jobless benefits unexpectedly jumped last week.