MARKET SCALES FRESH INTRADAY HIGH; TCS VAULTS 12.5%
DATE: 24/04/2012
Key benchmark indices extended intraday gains to hit fresh intraday highs in early afternoon trade. The barometer index, BSE Sensex, was up 111.40 points or 0.65%, up close to 160 points from the day's low. The market breadth was negative. IT major TCS jumped 12.5% after good Q4 results and positive FY 2013 outlook.
Metal stocks were mostly higher. Most interest rate sensitive auto stocks fell for the second straight day. Index heavyweight Reliance Industries (RIL) trimmed intraday losses.
The market trimmed gains after reversing losses after a firm opening. Volatility continued in morning trade as key benchmark indices alternately moved between positive and negative terrain. The market reversed intraday losses to hit fresh intraday high in mid-morning trade. The market extended intraday gains to hit fresh intraday high in early afternoon trade.
The market may remain volatile this week as traders roll over positions from the near-month April 2012 series to May 2012 series. The April 2012 derivatives contracts expire on Thursday, 26 April 2012.
BSE Sensex was up 111.40 points or 0.65% to 17,208.08. The index rose 115.70 points at the day's high of 17,212.38 in early afternoon trade. The index fell 49.96 points at the day's low of 17,046.72 in morning trade, its lowest level since 16 April 2012.
The S&P CNX Nifty was up 24.10 points or 0.46% to 5,224.70. The Nifty hit a high of 5,226.65. The Nifty hit a low of 5,180.35 in intraday trade, its lowest level since 29 March 2012.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,191 shares declined and 1,068 shares rose. A total of 121 shares were unchanged.
From the 30-share Sensex pack, 15 rose while the rest fell. Bharti Airtel, L&T and ITC shed by between 0.61% to 3.49%. Wipro, Coal India and Tata Power Company rose by between 1.96% to 3.09%.
Index heavyweight Reliance Industries (RIL) declined 0.66% to R 731.10, off the day's low of R 724.05. The company after market hours on Friday, 20 April 2012, reported 21.2% fall in net profit to R 4236 crore on 16.7% growth in turnover to R 87833 crore in Q4 March 2012 over Q4 March 2011. The company reported GRM (gross refining margin), the difference between the price of petroleum products and crude oil, of $7.6 per barrel in Q4 March 2012 compared with GRM of $6.8 per barrel in Q3 December 2011 and $9.2 per barrel in Q4 March 2011.
India's largest software services exporter by revenues Tata Consultancy Services (TCS) jumped 12.51% as company after market hours on Monday reported 3.3% growth in consolidated net profit at R 2895 crore on 0.4% growth in revenue at R 13259 crore in Q4 March 2012 over Q3 December 2011. Net profit rose 15% to R 10413 crore on 31% growth in revenue at R 48894 crore in the year ended March 2012 (FY 2012) over the year ended March 2011 (FY 2011). The board of directors have recommended a final dividend of R 8 and a special dividend of R 8 per share.
India's largest tractor maker by sales Mahindra & Mahindra (M&M) declined 2.17%. The government reportedly approved the foreign direct investment (FDI) proposal worth of R 25.99 crore for company's radar systems.
India's largest commercial vehicle maker by sales Tata Motors rose 1.11% to R 313.20. The stock had hit a record high of R 320.60 on Friday, 20 April 2012. Tata Motors has reportedly signed an agreement with a DRB-Hicom Bhd unit to market and sell light trucks to Malaysia's armed forces. The company said the Malaysian company will initially market and sell Tata's 2.5 ton-5 ton trucks, including the LPTA 715 and the LPTA 1623.
Tata Motors recently reported 26% rise in global vehicle sales to 1.39 lakh units in March 2012 over March 2011. Global sales of all commercial vehicles were reported at 63,791 units in March 2012, a growth of 12% over March 2011.
The country's largest two-wheeler maker Hero MotoCorp rose 1.41%. The country's second largest two-wheeler maker Bajaj Auto lost 0.75%.
Metal stocks were mostly higher. Sterlite Industries, Bhushan Steel, Tata Steel, Sail, and Hindalco Industries rose by between 0.33% to 1.77%. Hindustan Zinc, JSW Steel and Jindal Steel & Power fell by between 0.08% to 1.26%.
Tata Sponge Iron lost 2.57% after net profit fell 65.8% to R 14.65 crore on 7.3% decline in net sales to R 177.69 crore in Q4 March 2012 over Q4 March 2011.
Mahindra & Mahindra Financial Services rose 1.13% after consolidated net profit jumped 46.4% to R 242.39 crore on 47.6% growth in total income to R 891.48 crore in Q4 March 2012 over Q4 March 2011.
Foreign institutional investors (FIIs) sold shares worth R 407.49 crore on Monday, 23 April 2012, as per provisional data from the stock exchanges.
Investors are closely watching India Inc's Q4 March 2012 and year ending March 2012 (FY 2012) earnings. Focus is on the guidance provided by the management for the year ending March 2013 (FY 2013) to gauge the earnings outlook.
Wipro and Sterlite Industries India unveil their Q4 results tomorrow, 25 April 2012. ICICI Bank unveils FY 2012 results on 27 April 2012. Axis Bank, Jindal Steel & Power and Siemens unveil quarterly results on the same day. Maruti Suzuki India unveils FY 2012 results on 28 April 2012.
FMCG giant Hindustan Unilever unveils FY 2012 results on 1 May 2012. Hero MotoCorp announces Q4 results on 2 May 2012. Bank of Baroda unveils Q4 results on 4 May 2012. Housing finance major HDFC announces FY 2012 results on 7 May 2012. Hindalco unveils Q4 results on 8 May 2012. Ranbaxy Laboratories will declare its Q1 March 2012 results on 9 May 2012. Dr Reddy's Laboratories announces FY 2012 results on 11 May 2012. Bajaj Auto announces FY 2012 results on 17 May 2012. BPCL unveils FY 2012 results on 25 May 2012.
Asian markets were mixed on Tuesday after political uncertainty in the euro zone drove US and European stocks lower Monday following failed budget talks that resulted in the collapse of the Dutch government, stoking fresh fears about Europe's debt problems. Key benchmark indices in China, Indonesia, Japan, and South Korea were down by between 0.11% to 1.02%. Key benchmark indices in Hong Kong, Singapore and Taiwan rose by between 0.22% to 0.38%.
Adding to concerns was the threat that existing euro-zone treaties designed to address the debt crisis could be dismantled by French Socialist François Hollande, the front-runner in the nation's presidential election race. A disappointing read on a key European manufacturing index, pointing to a sharper-than-forecast slowdown in activity also weighed on sentiment.
Trading in US index futures indicated that the Dow could gain 25 points at the opening bell on Tuesday, 24 April 2012. US stocks fell on Monday as political turmoil in Europe cast doubts on the euro zone's ability to push through measures to end its debt crisis and as Wal-Mart sank following a report it stymied a bribery probe.
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