The key benchmark indices held firm in mid-afternoon trade as world stocks rose. Index heavyweight Reliance Industries (RIL) edged higher ahead of its Q4 results today. But, IT major TCS fell on profit taking after strong Q4 results. Metal stocks rose as metal prices gained on London Metal Exchange on Wednesday, 20 April 2011. Hindustan Zinc jumped after strong Q4 result. Some realty stocks. The BSE 30-share Sensex was up 147.80 points or 0.76%, up close to 90 points from the day's low and off close to 75 points from the day's high. The market breadth turned negative from positive breadth earlier in the day.
The market edged higher in early trade on firm Asian stocks. The market regained strength after paring initial gains to hit fresh intraday lows in morning trade. The market surged to hit fresh intraday high in mid-morning trade. The market pared gains in early afternoon trade. After hitting a fresh intraday low, the market bounced back in afternoon trade as European shares rose in early trade. The market held firm in mid-afternoon trade.
Indian stocks rose for the third straight day today, 21 April 2011, buoyed by firm global stocks, data showing resumption of buying by foreign funds, strong response from foreign institutional investors to the initial public offer of gold financing firm Muthoot Finance and Indian Meteorological Department's (IMD) recent forecast of normal monsoon this year.
At 14:20 IST, the BSE 30-share Sensex was up 147.80 points or 0.76% to 19,618.79. The Sensex rose 59.52 points at the day's low of 19,530.50 in afternoon trade. The index gained 225 points at the day's high of 19,695.98 in mid-morning trade, its highest level since 15 April 2011.
The S&P CNX Nifty was up 32.75 points or 0.56% to 5,884.40. The Nifty hit high of 5,912.90 in mid-morning trade, its highest level since 13 April 2011.
The BSE Mid-Cap index rose 0.12% and the BSE Small-Cap index gained 0.1%.
The market breadth, indicating the health of the market, turned negative. On BSE, 1472 shares declined while 1345 shares advanced. A total of 110 shares remained unchanged. The breadth was strong earlier in the day.
Among the 30-member Sensex pack, 21 advanced while the rest declined.
Index heavyweight Reliance Industries (RIL) rose 1.1%, with the stock gaining for the third straight day ahead of its Q4 result today, 21 April 2011. The market has been abuzz with talks that the company's plans for the financial sector will be high on the agenda and final details of the deal with DE Shaw would be discussed at RIL's board meet today, 21 April 2011, when RIL announces Q4 result. RIL, last month formed a joint venture with DE Shaw group, to offer an array of financial services. But, it did not share the investment plans or equity structure or even the leadership of the new venture.
RIL, last week, said it has started work on large polyester projects in India to consolidate its position as the world's largest integrated polyester producer. RIL said it has planned its capacity expansion in phases over the next few years including a 2.30 million metric tonne at Dahej, Gujarat, with an ability to increase the capacity by another 1.15 million tonne at a later stage. The expansion also includes a 3.95 lakh tonne of polyester filament yarn and 1.4 lakh tonne polyester texturized yarn at Silvassa.
India's largest IT exporter by sales TCS fell 1.04% on profit taking after strong Q4 results. Consolidated net profit rose 10.7% to Rs 2623 crore on 5.1% rise in revenue to Rs 10157 crore in Q4 March 2011 over Q3 December 2010. The result was announced during market hours today.
Commenting on the results, N. Chandrasekaran CEO and MD TCS said, Excellent execution and a constant focus on the customer has helped TCS round off a sterling performance in the year ended March 2011 (FY 2011) with strong growth in the fourth quarter while maintaining margins at historic highs. Regarding the future outlook he said the demand environment continues to be vibrant. There are opportunities across markets and industries, he said. Chandrasekaran added that TCS' nimble organization structure together with the company's full-services strategy and its domain intensive solutions give TCS a great platform to sustain growth. We continue to shape the adoption of next generation technologies by investing in near areas like mobility, analytics, social media and sustainability solutions
Metal stocks rose as LMEX, a gauge of six metals traded on the London Metal Exchange gained 2.1% on Wednesday, 20 April 2011. Hindalco Industries, JSW Steel, Sterlite Industries, National Aluminum Company, NMDC, Sesa Goa and Bhushan Steel rose by 0.45% to 1.94%.
Hindustan Zinc jumped 3.47% after net profit jumped 42.96% to Rs 1771.27 crore on 27.95% rise in net sales to Rs 3197.02 crore in Q4 March 2011 over Q4 March 2010.
Jindal Steel & Power rose 1.49% ahead of Q4 results today. The stock had risen 2.39% on Wednesday after the company said during trading on that day that it has initiated a cash offer for the entire equity of Australian coal-mining firm Rocklands Richfields (Rocklands). The offer will be made through Jindal Steel's step down wholly owned subsidiary, Jindal Steel and Power (Australia). Jindal is offering AUD $0.25 cash for every Rocklands share held. The offer values Rocklands' total equity at approximately AUD $88 million. Jindal Steel and Power (Australia) currently holds a 14.46% interest in Rocklands and has received approval of foreign investment review board, Australia to increase its stake above the 15% threshold. The open offer has commenced on Wednesday, 20 April 2011.
India's largest steel maker by sales Tata Steel rose 0.58% after company said during market hours today that Japan's Krosaki Harima Corporation will acquire 51% stake out of Tata Steel's 77.46% stake in Tata Refractories (TRL). Tata Steel will continue to hold 26.46% in Tata Refractories. The transaction is based on an equity valuation of TRL of approximately Rs 1130 crores and is subject to approval of relevant regulatory authorities in India and Japan.
Some realty stocks rose on bargain hunting after recent losses. HDIL, DLF and Unitech rose by between 0.79% to 1.65%.
Global markets including Indian bourses remain shut on Friday, 22 April 2011, on account of Good Friday.
Foreign institutional investors (FIIs) bought shares worth Rs 193 crore on Wednesday, 20 April 2011, provisional data released by the stock exchanges showed. FIIs had bought shares worth a net Rs 1836 crore from the secondary equity markets on Tuesday, 19 April 2011.
The initial public offer of Muthoot Finance, India's largest gold financing company in terms of loan portfolio, has received strong response from qualified institutional buyers (QIBs). The IPO received bids worth 45.07 crore from QIBs. The bidding for the issue from QIBs ended on Wednesday, 20 April 2011. Foreign institutional investors (FIIs) put in bids for 29.2 crore shares compared with 1.8 crore shares reserved for the QIB category as a whole.
The near term major trigger for the market is Q4 March 2011 results of India Inc. Investors will scrutinize post-result management commentary to gauge outlook on earnings at a time when rising salaries, raw materials prices and interest rates are pressurizing profit margins of India Inc. High global commodity prices will add to pressure on profit margins of Indian firms.
The combined net profit of a total of 86 companies rose 24.6% to Rs 6412 crore on 27.9% rise in sales to Rs 52050 crore in Q4 March 2011 over Q4 March 2010.
The food price index rose 8.74% and the fuel price index climbed 13.05% in the year to 9 April 2011 government data on Thursday showed. In the previous week, annual food and fuel inflation stood at 8.28% and 12.97% respectively. The primary articles price index was up 11.96% compared with an annual rise of 11.40% a week earlier.
India Meteorological Department (IMD) has predicted the southwest monsoon 2011 to be 98% (normal) of the long period average (LPA) with a model error of plus/minus 5%. IMD has indicated that there is very low probability for the season rainfall to be deficient (below 90% of LPA) or excess (above 110% of LPA). The IMD released its initial forecast for the June to September monsoon after market hours on Tuesday 19 April 2011. The forecast is made in two stages in April and in June. The forecast for the season as a whole (June-September) is issued in the first stage.
Normal monsoon this year could help ease food inflation and boost rural income. The quantity and geographical spread of rainfall during the monsoon season is crucial for India's agriculture sector as the country lacks irrigation facilities on more than half of its farm land. The South Asia Climate Outlook Forum last week predicted that South Asia is likely to receive normal monsoon rains in 2011. It said the La Nina weather phenomenon, which aids monsoon in the region, would continue until June.
With inflation remaining above its comfort level, the Reserve Bank of India (RBI) is seen raising key short term policy rates by 25 basis points at its annual 2011-2012 monetary policy review on 3 May 2011.
A sharp surge in global crude oil prices over the past few months has raised macroeconomic worries. India imports majority of its crude oil requirements and high oil prices had raised concerns about widening current account deficit. High oil prices had also raised concerns about higher oil subsidy bill for the government and its negative impact on the government's fiscal position. US crude futures were up 37 cents or 0.33% at 111.82 a barrel.
India's exports surged 37.5% to $246 billion in the year ended March 2011 (FY 2011) their fastest annual growth since independence-despite a strong rupee and weak demand in developed markets, data released on Tuesday showed. The government is reportedly targeting a 25% rise in exports in the current fiscal. Imports rose 21.5% to $350.5 billion in FY 2011. Exports in March added to $29.1 billion, highest for a single month so far.
European shares advanced for a third straight session to a one-week high on Thursday as strong company results improved sentiment, with technology shares gaining further after Apple smashed forecasts. The key benchmark indices in UK, France and Germany were up by 0.17% to 0.65%.
A rally in US technology shares spurred by results that beat analyst expectations boosted stock markets in Asia on Thursday. The key benchmark indices in Hong Kong, China, Japan, Singapore, South Korea and Taiwan rose by between 0.67% to 1.64%. Indonesia's Jakarta Composite fell 0.12%.
Trading in US index futures indicated that the Dow could gain 44 points at the opening bell on Thursday, 21 April 2011.
Big earnings surprises gave a positive turn to investor sentiment on Wednesday, propelling US stocks to their best day in a month and lifting the Dow Jones Industrials Average to its highest in almost three years. Sales of previously owned US homes rose more than expected in March, a trade group said on Wednesday, suggesting the housing market's downward trend may be close to hitting a bottom.