The Indian equity market ended in the negative terrain for the first time in seven trading sessions amid profit booking in the scrips across the sectors. The decline was seen despite better than expected corporate earning from the Indian corporate Inc.
Barring the BSE Auto and BSE Capital Goods index all the other major sectoral indices ended in the red. The BSE Realty, IT, Oil & Gas, Metals and the Banking stocks were among the top laggards. The Mid-Cap and Small-Cap indices too declined by half a percent each.
The interest rates sensitive stocks which were in action throughout the week witnessed some profit booking. “Material moderation in WPI inflation and improved outlook for CAD after correction in oil and gold prices have rekindled expectations that RBI would cut the policy rate by 25bps in May 3 review. The central bank may also pay heed to Government’s continued commitment to fiscal discipline and reforms,” says Amar Ambani, Head of Research, IIFL.
On the earnings front, ICICI Bank announced its Q4 FY13 results which beat expectations. The Bank’s operational numbers were stronger than expected. NIM expansion by 20-25bps qoq was a positive surprise; it stood at multi-year high of 3.3%. In the domestic business, benign wholesale funding cost and stable lending yields are likely to have been the key drivers of margin improvement. NII growth was at a robust 23% yoy. Asset quality remained resilient as Gross NPA ratio improved marginally to 3.2%. Slippages are likely to have been within Rs10bn as expected. Credit cost was in-line with PCR sustained near 77%.
LIC Housing Finance was the star performer of the day; the stock skyrocketed by over 8% to close at Rs250 after the NBFC posted a net profit of Rs3161.5mn for the quarter ended March 31, 2013 as compared to Rs2536mn for the quarter ended March 31, 2012. Total Income has increased from Rs16890.2mn for the quarter ended March 31, 2012 to Rs20747.4mn for the quarter ended March 31, 2013.
Maruti results were a positive surprise. Operating margins were higher at 10.4% mainly on account of currency benefits and better product mix in the domestic market. In a weak market, the stock surged by 5% to close at Rs1674.
Finally, BSE Sensex closed at 19286, down 120 points over the previous close. It had earlier touched a day’s high of 19384 and a day’s low of 19249. It opened at 19376.
The NSE Nifty closed at 5,871, down 45 points over the previous close. It earlier touched a day’s high of 5,907 and a day’s low of 5,860. It opened at 5,899.
Maruti, Bharti Airtel, Bajaj Auto, Gail India, HDFC, L&T, Hindalco Inds, Tata Motors, Coal India, Tata Power and Dr Reddy’s Lab were gainers in Sensex and Nifty.
RIL, TCS, ICICI Bank, Infosys, Wipro, ONGC, Tata Steel, Sun Pharma, SBI, NTPC, HDFC Bank, Jindal Steel and HUL were among losers in Sensex and Nifty.
The advance-decline ratio was in favour of the bears. On the BSE, 1353 stocks declined against 951 advancing stocks, while 137 stocks remained unchanged.
The INDIA VIX was down 2.2% to close at 13.88. It hit a day’s high of 14.60 and low of 13.85.
Stocks which hit a 52-week high during the week were Dabur India, Dr Reddy’s Lab, Global Offshore, Rollatainers and Grandma Trading.
Stocks which hit a 52-week low during the week were Mangalore Ref, Elantas Beck, Kakatiya Cem, Samtel India and Speciality Pap.
Despite good results, Hero MotoCorp closed at Rs. 1602.95 down by Rs. 14.80 or 0.9% on the NSE. The stock touched a high of Rs. 1645 and a low of Rs. 1576.10. Total traded volumes on the counter stood at 4.285 lakhs. Hero MotoCorp Ltd posted a net profit of Rs. 5742.30 mn for the quarter ended March 31, 2013 as compared to Rs. 6035.90 mn for the quarter ended March 31, 2012. Total Income has increased from Rs. 61399.00 mn for the quarter ended March 31, 2012 to Rs. 62502.60 mn for the quarter ended March 31, 2013.
Idea Cellular Ltd surged 5.75% after it reported a better-than-expected 30% rise in quarterly profit. The stock closed at Rs. 123.15 up by Rs. 6.70 or 5.75% on the NSE. The stock touched high of Rs. 128 and a low of Rs. 121.30. Total traded volumes on the counter stood at 1.48 crore.