BREADTH TURNS POSITIVE
DATE: 24/04/2012
Key benchmark indices pared gains after hitting fresh intraday high in afternoon trade. Market sentiment was, however, strong as European market edged higher in early trade and most Asian markets recovered after an initial slide. In the domestic market, the barometer index, BSE Sensex, was up 113.39 points or 0.66%, off close to 22 points from the day's high and up close to 163 points from the day's low. The market breadth turned positive from negative.
IT major TCS jumped over 12% after good Q4 results and positive FY 2013 outlook. Index heavyweight Reliance Industries (RIL) hovered in negative terrain.
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. Key benchmark indices pared gains after hitting fresh intraday high in 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.
At 13:15 IST, the BSE Sensex was up 113.39 points or 0.66% to 17,210.07. The index rose 135.06 points at the day's high of 17,231.74 in 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 22.25 points or 0.43% to 5,222.85. The Nifty hit a high of 5,232.35. 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, turned positive from negative. On BSE, 1,225 shares rose and 1,210 shares declined. A total of 124 shares were unchanged.
From the 30-share Sensex pack, 18 rose while the rest fell. Wipro (up 3.49%), Hindalco Industries (up 2.65%), Tata Power (up 1.91%), Coal India (up 1.75%), Infosys (up 1.56%), Bhel (up 1.55%), Hero MotoCorp (up 1.19%) and Hindustan Unilever (up 1.12%), edged higher from the Sensex pack.
Bharti Airtel (down 2.7%), Jindal Steel & Power (down 1.63%), L&T (down 1.47%), Bajaj Auto (down 1.45%), M&M (down 1.06%), Maruti Suzuki (India) (down 0.96%), ITC (down 0.84%) and GAIL (India) (down 0.52%), edged lower from the Sensex pack.
Index heavyweight Reliance Industries (RIL) declined 0.39% to R 733.25, 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 12.28% to R 1189.30 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.
Commenting on the FY 2012 performance, N. Chandrasekaran, CEO and MD, TCS, said: We have carried our strong momentum through the fourth quarter to close out a year of strong growth. We have kept our focus on profitability and consolidated our market leadership. With our customer-centric approach, strong solution set and investments in game-changing technologies like mobility, big data and cloud, we remain well positioned to help our customers transform and drive growth in their businesses. Looking ahead to FY 2013, Mr N Chandrasekaran said: TCS is well prepared to achieve balanced growth across the industries and markets it operates in, given its holistic portfolio of services which are now achieving significant scale across markets.
S Mahalingam, Chief Financial Officer and Executive Director, TCS said: We have grown very well during 2011-12 and also been able to exit the year at the right margin levels, despite the marked increase in volatility during the past 12 months. Our focus is firmly fixed on the opportunities out there. So while maintaining our cost discipline at an operational level, we continue to invest in capacity and capability as we prepare for growth ahead.
Drug maker Sun Pharmaceuticals Industries rose 0.63% to R 598.90 after the company announced during trading hours today, 24 April 2012, that it received an approval from the US drug regulator for generic version of Zyprexa tablets, used in treating schizophrenia, in various strengths.
Shares of public sector oil marketing companies rose across the board. BPCL (up 3.05%), HPCL (up 2.43%) and Indian Oil Corporation (up 2.24%), edged higher.
Shares of agrochemical makers United Phosphorus and Excel Crop Care fell on reports the Competition Commission of India has found them guilty of cartelization and price manipulations. Excel Crop Care (down 7.53%) and United Phosphorus (down 5.68%), edged lower.
The Competition Commission of India (CCI) has reportedly decided to impose penalty at a rate of 9% on average of three years turnover on these companies under section 27 (b) of the act. As per reports, the fine amount works out to R 252.44 crore on United Phosphorus and R 63.90 crore on Excel Crop Care.
According to reports, United Phosphorus, Excel Crop, along with two more manufacturers, have been accused of cartelization and price manipulations while submitting bids for a tender for Aluminum Phosphide Tablets (APT), a kind of aluminum packaging material being used for preserving central pool food grain, from Food Corporation of India (FCI), a government body.
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.
European stocks edged higher in early trade on Tuesday on bargain hunting after heavy losses in the previous session, although confidence remained fragile due to political tensions in the region and worries about global growth. Key benchmark indices in UK, France and Germany were up by 0.33% to 0.85%.
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, Hong Kong, Singapore and Taiwan rose by between 0.01% to 0.47%. Key benchmark indices in Japan, and South Korea were down by between 0.47% to 0.78%.
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 23 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.
POWERED BY: CAPITAL MARKET NEWS
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