BREADTH TURNS NEGATIVE FROM POSITIVE
DATE: 26/04/2012
Key benchmark indices trimmed losses after hitting fresh intraday lows in mid-morning trade. The barometer index, BSE Sensex, was down 39.61 points or 0.23%, off about 80 points from the day's high and up close to 10 points from the day's low. The market breadth turned negative from positive. Index heavyweight Reliance Industries (RIL) reversed initial gains. Metal stocks were mixed. Sterlite Industries fell after weak Q4 results. Auto stocks were mostly lower as profit booking emerged after recent strong gains.
The market trimmed gains after opening higher. Key benchmark indices alternately moved between positive and negative terrain near the flat line in morning trade. It trimmed losses after hitting fresh intraday low in mid-morning trade.
The market may remain volatile today as traders rollover positions in the derivatives segment from the near-month April 2012 series to May 2012 series. The near-month April 2012 derivatives contracts expire today, 26 April 2011.
BSE Sensex was down 39.61 points or 0.23% to 17,111.68. The index gained 41.96 at the day's high of 17,193.25 in early trade. The index fell 49.56 points at the day's low of 17,101.73 in mid-morning trade.
The S&P CNX Nifty was down 10.95 points or 0.21% to 5191.05. The Nifty hit a high of 5,215.60 and a low of 5,183.65 in intraday trade.
The market breadth, indicating the health of the market was turned negative from positive. On BSE, 1206 shares fell and 866 shares rose. A total of 111 shares remained unchanged.
From the 30-share Sensex pack, 22 shares fell and rest of them rose. DLF, Hindustan Unilever and GAIL (India) fell by between 1.23% to 2.27%. Infosys, Cipla and Bharti Airtel rose by between 0.4% to 0.9%.
Index heavyweight Reliance Industries (RIL) fell 0.11% to R 735.25, off the day's high of R 740. RIL last week 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.
Metal stocks were mixed. Sterlite Industries fell 1.21% after company said after market hours on Wednesday that its consolidated net profit fell 33.66% to R 1276.89 crore on 6.65% growth in total income to R 11522.41 crore in Q4 March 2012 over Q4 March 2011. Consequent to acquisition of zinc business at Namibia, South Africa and Ireland in the second half of the FY 2010-11, the results for the quarter reported and year ended 31 March 2012 are not strictly comparable with the corresponding previous periods.
Anil Agarwal, Chairman, Sterlite Industries (India) said, Sterlite Industries delivered strong operating and financial performance during the year, despite macroeconomic headwinds. We continue to deliver on our growth projects, expanding and optimizing our assets to generate strong returns for our shareholders. The board has approved a dividend of R 2 share for FY 2012. Last quarter, we announced a merger of Sterlite with Sesa Goa, and simplification of the Vedanta Group structure. The merger process is well on track to create one of the world's largest natural resources major, and deliver significant long term value for shareholders.
Hindalco Industries declined 0.59%. The company said before market hours today that it has completed issuance of secured redeemable non-convertible debentures amounting to R 3000 crore on private placement basis at a coupon of 9.55% per annum. The proceeds will be used for general business purposes, including capital expenditure, working capital, refinancing of existing debt.
JSW Steel rose 0.91% after company said during market hours today that its crude steel production rose 26% to 2.07 million tonnes in Q4 March 2012 over Q4 March 2011. The company's crude steel production for the year March 2012 (FY 2012) was 7.43 million tonnes, showing 16% growth over previous year. The company gave the guidance of 8.75 million tonnes of crude steel production in the beginning of FY 2012. In view of scarcity of iron ore due to imposition of ban on iron ore mining in the State of Karnataka by Supreme Court, the company had to scale down its production, thus actual achievement is only 85% of initial guidance, company said.
Among other metal stocks, Tata Steel, Jindal Steel & Power, and Hindustan Zinc rose by between 0.24% to 1.09%.
Auto stocks were mostly lower on profit booking after recent strong gains. India's largest small car maker by sales Maruti Suzuki India fell 0.56%. Haryana Chief Minister Bhupinder Singh Hooda on Monday laid the foundation stone for Maruti's Research & Development Centre and Proving Ground at Rohtak in Haryana. The facility is spread over an area of 600 acres. Maruti Suzuki is expected to invest in the range of R 2000 to R 2400 crore to set up this world class R&D facility.
India's largest commercial vehicle maker by sales Tata Motors declined 0.78% to R 311.40. The stock had hit a record high of R 320.60 on Friday, 20 April 2012. 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.
India's largest tractor maker by sales Mahindra & Mahindra (M&M) rose 0.67%. The government reportedly approved the foreign direct investment (FDI) proposal worth of R 25.99 crore for company's radar systems.
Two wheeler makers declined. The country's largest two-wheeler maker Hero MotoCorp shed 2.17% to R 2188.95. The stock had hit a record high of R 2353 on Wednesday.
The country's second largest two-wheeler maker Bajaj Auto dropped 0.37%.
Bank of Baroda rose 0.14% and Asian Paints gained 1.84% ahead of their inclusion in 50-unit S&P CNX Nifty on Friday, 27 April 2012. Asian Paints and Bank of Baroda will replace two Reliance Anil Dhirubhai Ambani (ADA) Group firms--Reliance Power and Reliance Communications in the Nifty from Friday, 27 April 2012. Reliance Power fell 1.05%. India's second largest listed telecom company by sales Reliance Communications fell 1.27%.
Foreign institutional investors (FIIs) sold shares worth R 340.84 crore on Wednesday, 25 April 2012, as per provisional data from the stock exchanges. FIIs have sold shares worth R 1609.10 crore in three days from 23 to 25 April 2012 as per the provisional data.
Global crediting rating agency S&P said on Wednesday, 25 April 2012, revised its outlook on India's long-term rating to negative from stable, citing a slowdown in investment and economic growth and a widening in the current account deficit. This has resulted in a weaker medium-term credit outlook, the rating agency said. S&P affirmed its 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India. The negative outlook signals at least a one-in-three likelihood of the downgrade of India's sovereign ratings within the next 24 months, S&P said. High fiscal deficit and a heavy debt burden remain the most significant constraints on India's sovereign ratings.
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