ITC STRIKES RECORD HIGH
DATE: 27/04/2012
Key benchmark indices held positive zone in mid-morning trade. The barometer index, BSE Sensex, was up 81.43 points or 0.48%, off about 30 points from the day's high and up close to 75 points from the day's low. The market breadth was strong. Index heavyweight Reliance Industries (RIL) extended initial losses.
Capital goods stocks rose on bargain hunting after recent losses. FMCG stocks gained after Science and Technology Minister Vilasrao Deshmukh on Thursday, 26 April 2012, said that the country is likely to receive normal monsoon rains for the third year in a row, with the June-September rainfall expected to be 99% of the long-term average. Cigarette maker ITC hit record high.
BSE Sensex was up 81.43 points or 0.48% to 17,212.10. The index rose 111.48 points at the day's high of 17,242.15 in early trade, its highest level since 25 April 2012. The index gained 4.18 points at the day's low of 17,134.85 in early trade.
The S&P CNX Nifty was up 22.90 points or 0.44% to 5,211.90. The Nifty hit a high of 5,223.05 in intraday trade, its highest level since 25 April 2012. The index hit a low of 5,188.90 in intraday trade.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,376 shares gained and 867 shares fell. A total of 102 shares were unchanged.
From the 30-share Sensex pack, 20 rose while the rest declined. Hindalco Industries, ICICI Bank and M&M rose by between 1.72% to 2.75%. Coal India, Sun Pharmaceutical Industries and Bharti Airtel shed by between 0.57% to 1.67%.
Index heavyweight Reliance Industries (RIL) fell 0.69%. 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.
Biocon rose 3.15%. The company said during market hours today that consolidated net profit fell 2.98% to R 97.80 crore on 25.38% growth in total income to R 611.49 crore in Q4 March 2012 over Q4 March 2011. Commenting on the results, Chairperson and Managing Director Kiran Mazumdar-Shaw stated, I am pleased with the overall performance that we have delivered in FY 2012. Group Sales have risen by 16% and PAT was sustained at previous year levels despite lower net licensing income. We have delivered particularly strong growth in our Research Services and Branded Formulations business verticals. Our Balance Sheet remains robust and our cash position is strong. The global economic outlook remains uncertain. However, we are confident that we will make significant progress across all our businesses.
Capital goods stocks rose on bargain hunting after recent losses. Thermax, Bhel, Siemens, L&T, BEML and ABB rose by between 0.4% to 1.82%.
FMCG stocks rose after Science and Technology Minister Vilasrao Deshmukh on Thursday, 26 April 2012, said that the country is likely to receive normal monsoon rains for the third year in a row, with the June-September rainfall expected to be 99% of the long-term average. Marico, Dabur India and Godrej Consumer Products rose by between 0.22% to 1.45%.
FMCG firms derive substantial sales from rural India. Good monsoon may boost farm incomes and consumer spending.
Cigarette maker ITC rose 1.36% to R 252.50. The stock hit a record high of R 252.80 today.
Vesuvius India fell 1% after net profit declined 11.28% to R 11.56 crore on 15.41% rise in net sales to R 138.14 crore in Q1 March 2012 over Q1 March 2011.
Agro Tech Foods rose 1.43% after net profit rose 11.5% to R 12.22 crore on 1.4% decline in net sales to R 174.76 crore in Q4 March 2012 over Q4 March 2011.
Ajanta Pharma gained 3.47% after net profit rose 35.1% to R 23.60 crore on 37.7% growth in net sales to R 172.68 crore in Q4 March 2012 over Q4 March 2011.
Foreign institutional investors (FIIs) sold shares worth R 376.08 crore on Thursday, 26 April 2012, as per provisional data from the stock exchanges. FIIs have sold shares worth R 1985.18 crore in four days from 23 to 26 April 2012 as per the provisional data.
The stock exchanges are holding a special 1-1/2-hour trading session tomorrow, 28 April 2012, as the National Stock Exchange (NSE) is upgrading the capacity of its futures and options (F&O) trading system hardware and software to improve processing capability and handle increased activities in the market. Trading will start at 11:15 IST and end at 12:45 IST.
Science and Technology Minister Vilasrao Deshmukh on Thursday, 26 April 2012, said that the country is likely to receive normal monsoon rains for the third year in a row, with the June-September rainfall expected to be 99% of the long-term average. But the possibility of El Nino weather conditions associated with below-normal rains can't be ruled out in the later part of the season. If El Nino does lead to reduced rains, it may prevent India from repeating the bumper harvests of summer-sown crops it recorded in 2010 and 2011 as rainfall distribution is critical for yields. The summer-sown crops in India include rice, oilseeds, pulses, sugar cane and cotton.
The country is highly reliant on monsoons, as more than 60% of the country's farmland is rain-fed and the June-September monsoon season accounts for about 70% of the country's annual rainfall.
India's high savings rate and a favorable debt profile continue to support its sovereign rating, but the economy faces headwinds due to an anemic fiscal health, ratings firm Moody's said Thursday. India's Baa3 government bond ratings incorporate credit strengths such as a diversified economic structure, a relatively strong medium-term growth outlook, fairly robust domestic savings, and adequate international reserve coverage of external liabilities, Moody's analyst Atsi Seth said. Her comments come a day after Standard & Poor's cut India's long-term rating outlook to negative from stable citing slowing growth and a ballooning current account deficit, reflecting India's deteriorating finances that have put its investment grade rating at a risk.
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