Sensex, Nifty waiting for clarity: Thursday closing report
The indices may sell off temporarily if the NDA’s margin of victory is wafer-thin. 

After opening Thursday in the negative, the Indian market immediately went up to higher level to hit its intra-day high but could not sustain at that level and started sliding lower and entered the negative zone. After this, it started trading on either side of yesterday’s close and managed to close in the positive.
The BSE 30-share Sensex opened at 23,809 while NSE 50-share Nifty opened at 7,111. The indices hit a high of 23,972 and 7,153, however losing its strength again edged lower to hit a low of 23,743 and 7,083, respectively. Sensex closed at 23,906 (up 90 points or 0.38%) while the Nifty closed at 7,123 (up 14 points or 0.20%). The NSE recorded a volume of 103.88 crore shares. India VIX rose 13.40% to close at 36.7650.
The top five gainers among the other indices on the NSE were Energy (1.36%), PSE (1.25%), CPSE (0.98%), Finance (0.65%) and FMCG (0.45%) while the top five losers were Media (1.64%), Smallcap (1.30%), Realty (1.11%), Midcap 1%) and Nifty Midcap 50 (1%).
Of the 50 stocks on the Nifty, 22 ended in the green. The top five gainers were ONGC (3.36%), Tata Power (2.65%), Gail (2.59%), Power Grid (2.54%) and NTPC (2.39%). The top five losers were Asian Paints (5.73%), Bajaj Auto (4.30%), Bank of Baroda (3.88%), NMDC (3.33%) and United Spirits (2.43%).
Of the 1,572 companies on the NSE, 526 companies ended in the green, 976 closed in the red while 70 companies closed flat.
Market awaited the government to unveil data on inflation based on the wholesale price index (WPI) for April 2014 today. The annual rate of inflation based on monthly wholesale price index (WPI) eased to 5.2% for the month of April 2014 from 5.7% in March 2014. Simultaneously, the government revised upwards the rate of WPI inflation for February 2014 to 5.03%, from 4.68% reported on 14 March 2014.
Apollo Tyres (rose 5.88%) was the top gainer in the ‘A’ group on the BSE. The company has shown growth in its March quarter results and annual results. Today its board approved greenfield project in Eastern Europe, at a project cost of approx.Euro 500 million over the next 4 years, funded with accruals and debt at the company's European subsidiary. The planned capacity is expected to be 16,000 Passenger Car Tyres (PCR) per day and 3,000 Truck Bus Radial Tyres (TBR) per day.
In spite of recording growth in its quarterly result, Asian Paints was the top loser in ‘A’ group on the BSE. Asian Paints fell 4.89% after hitting its 52- week high today at Rs565.
Ahead of the election outcome four of the PSU stocks in the Sensex 30 pack closed in the positive. NTPC (2.95%), ONGC (2.56%) and  Gail (2.16%) were among the top four gainers while Bhel rose 0.67%.
Weak quarterly results of Bajaj Auto pulled the stock to the lower. Bajaj Auto (4.28%) was the top loser in the Sensex 30 stock.
US indices closed in the negative on Wednesday. Prices paid to American factories and service producers rose in April by the most in more than a year. The 0.6% increase in the producer price index was the biggest since September 2012 and exceeded all estimates, figures from the Labor Department showed.
Except for Nikkei 225 (0.75%), NZSE 50 (0.35%) and Seoul Composite (0.03%) all the other trading Asian indices closed in the positive. Hang Seng (0.66%) was the top gainer.
Japan's economy grew at the fastest pace since 2011 in the first quarter as companies stepped up investment and consumers splurged before the first sales-tax rise in 17 years last month. Gross domestic product grew an annualized 5.9% from the previous quarter, the Cabinet Office said today in Tokyo.
European indices were showing mixed performance while US Futures were trading marginally lower.


Asian Paints falls 5% after hitting new 52-week high

For the full year, Asian Paints reported higher net profit at Rs1,169 crore due to robust sales growth. Its shares hits a new 52-week high on Thursday only to fall 5% later

Asian Paints Ltd, India's largest paint manufacturer, posted a higher full year net profit mainly on robust sales. Asian Paints hit a new 52-week high at Rs565 on the BSE today.

For the 12 month to end-March, Asian Paints said its stand alone net profit increased 11.3% to Rs1,169.1 crore from Rs1,050 crore while its total revenues, including sales, grew 16.3% to Rs10,418.8 crore from Rs8,960.1 crore a year ago period.

“Decorative paint demand in India remained resilient in spite of the overall sluggish environment. We registered double digit volume growth with good growth from Tier 2 & Tier 3 cities,” said KBS Anand, managing director and chief executive officer, Asian Paints in a release.

For the quarter to end-March, Asian Paints said its stand alone net profit increased 11.5%  to Rs267.1 crore from Rs239.6 crore while its total revenues, including sales, rose 22.2% to Rs2,724 crore from Rs2,229.6 crore, same period last year.

“Industrial coatings business continues to be affected by the economic slowdown. Automotive coatings growth was subdued due to poor demand in the automotive sector. International business performed well led by good growth in some key markets like Bangladesh, Nepal and Emirates. However, performance in some markets was impacted by continued political unrest and weak economic activity. In order to expand its international presence, Asian Paints had entered into an agreement with Kadisco Chemical Industry Plc, Ethiopia to acquire 51% of its share capital,” Anand added.

As on 31 March 2014, FII shareholding in Asian Paints fell to 17.97% from 19.44%, public shareholding fell to 19.88% from 19.90%, while DII shareholding increased to 9.36% from 7.87%. The promoter's shareholding stood at 52.19%.

Asian Paints declared a final dividend of Rs4.20 per share. During the year Asian Paints split its shares from face value of Rs10 to Rs1 each.

Asian Paints closed Thursday 4.9% down at Rs529 after hitting its 52-week high at Rs565 during early trade on the BSE. The S&P BSE Sensex ended the day flat at 23,836.
For more stock results, check out this page


RIL stealing ONGC’s gas? Delhi HC issue notices

ONGC has alleged that at least three wells drilled by RIL on the boundary of KG-D6 block in Bay of Bengal are within few hundred metres of its gas fields

The Delhi High Court on Thursday issued notices to the union government, Directorate General of Hydrocarbon (DGH) and Reliance Industries Ltd on a plea filed by state-run Oil and Natural Gas Corp (ONGC). The two companies have been involved in a face-off for the past several months over whether RIL took out gas from ONGC's gas blocks in the Krishna Godavari (KG) basin.


ONGC moved the High Court accusing RIL of exploiting substantial gas from its natural gas block. It also accused the DGH for failing to take appropriate action and precautionary measures in the matter that is going on since past few months. According to reports, ONGC has sought a compensation of Rs8,000 crore from the Mukesh Ambani-led company.


Last month, both ONGC and RIL had decided to appoint a reputed global consultant to study data on both sides, says a report from Economic Times.


According to the report, ONGC had said at least three wells drilled by RIL on the boundary of KG-D6 block in Bay of Bengal are within "few hundred meters" of its gas fields. It fears the fields are connected and RIL may be drawing out its gas. RIL disputes the ONGC theory and the two firms have shared data to collaborate on their claims, the report adds.


Earlier, the state-run oil explorer had even written to DGH about the possibility of RIL drawing gas from blocks allotted to it. ONGC has around 11 discoveries in the KG basin gas fields and plans to develop G4 and KG-DWN blocks by 2017. As per ONGC estimates there is over 4 trillion cubic feet of gas reserves in the KG-DWN-98/2 block with an estimated output of 6-9 million standard cubic metres per day of gas.


According to the newspaper reports, ONGC feared that gas discoveries in its nomination block G4 (Godavari PML) and Block KG-DWN-98/2 (KG-D5) extends into RIL's KG-DWN-98/3 or KG-D6 block.



Nagesh Kini

2 years ago

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