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Reports India

Indian stock market daily morning report (April 21, 2014, Monday)

April 21, 2014, Monday, 08:48 GMT | 03:48 EST | 12:18 IST | 14:48 SGT
Contributed by Keynote Capitals

Views on markets today

- On Thursday, Indian markets rose about 1.5 per cent, snapping three days of losses, after the US Federal Reserve said it remained committed to supporting an economic recovery. The US central bank's comments, coupled with hopes of a rating upgrade, infused optimism and ended a three-day selling spree by foreign institutional investors (FIIs).

The benchmark Sensex gained 351.6 points, or 1.5- per cent, at 22,628.84; all but one of its components gained. The 50-share Nifty, meanwhile, closed at 6,779.40, up 104.10, or 1.56 per cent, the most since March 7.

- All the 12 BSE Sectoral indices ended in positive. Top Gainers: BSE Realty up by 2.79%, BSE Auto by 2.25% and BSE Power by 1.85%.

Market breadth was positive at ~1.5- as investors bought large cap stocks. On provisional basis, FII's bought Rs4.33bn worth of Indian equities and DII's sold Rs1.23bn worth of equities.

Economic and Corporate Developments

- The government on Thursday stuck to its stance of not allowing foreign portfolio investors (FPIs) to hold stake in companies engaged in manufacturing in the defence sector. This was stated through clarifications on a consolidated policy issued on foreign direct investment.

Earlier, there was speculation the Centre might lift the ban in this regard.

Before August 22, 2013, up to 26 per cent foreign investment was allowed in the defence sector; this included foreign direct investment and foreign institutional investment. Now, foreign institutional investors (FIIs) are included in the broader category of FPIs.

Buzzing Stocks

- Backed by broad-based growth across service lines and verticals, HCL Technologies' net profit rose 59 per cent year-on-year to Rs 1,624 crore during the quarter, while its revenue increased 29.- per cent to Rs 8,349 crore. On a quarter-on-quarter basis, net profit was up 8.5 per cent, while revenue increased two per cent. The stock closed 1.04% up at Rs.1,424.30 on BSE on Thursday.

- India's second largest no-frills airline, SpiceJet, requires $200 million (approximately Rs 1,200 crore) to turn operations around, according to the Centre for Asia Pacific Aviation (CAPA), an aviation advisory firm.

The need for more funds comes at a time when the airline is expected to post losses of around Rs 1,000 crore in 2013-14. The estimated net loss for the previous financial year almost equals the Rs 1,186 crore combined losses over seven years from 2006-07. The stock of the company closed 2.22% up at Rs.17.02 on BSE on Thursday.

- Wipro, India's third-largest information technology (IT) services company, on Thursday announced a 41 per cent year-on-year increase in consolidated net profit to Rs 2,226.5 crore for the quarter ended March. Consolidated revenue increased 22 per cent to Rs 11,704.5 crore. Sequentially, net profit and revenue rose 11 per cent and three per cent, respectively. The stock closed 2.39% up at Rs.585.55 on BSE on Thursday.

- Ratings firm Crisil today posted a 38.6% jump in consolidated net profit to Rs 68.71 crore for the quarter ended March, 2014. It had reported a net profit of Rs 49.57 crore during the corresponding (January-March) quarter of previous year.

"Crisil's consolidated income from operations rose 21.4% to Rs 308.9- crore for the quarter ended March 31, 2014, compared with Rs 254.49 crore in the corresponding quarter of the previous year," it said in a release.

- GlaxoSmithKline Pharmaceuticals posted 42.87% decline in its net profit at Rs 96.54 crore for the first quarter ended March 31, 2014, as the company continued to be impacted by the revamped price control order. The company had registered a net profit of Rs 169.01 crore during the same period last year. The stock closed 0.43% down at Rs.2,467 on BSE on Thursday.

- Strong rural demand, spurred by a favourable monsoon and increased preference for scooters, particularly in urban markets, drove up volumes for Hero MotoCorp, which beat market estimates to post sales of 524,02- units in March. The stock closed 2.29% up at Rs.2,217.70 on BSE on Thrusday.