Indian stock market daily morning report (January 29, 2014, Wednesday)
January 29, 2014, Wednesday, 05:31 GMT | 01:31 EST | 11:01 IST | 13:31 SGT
Views on markets today
- Markets ended flat, amid a volatile trading session, shrugging of the surprise move by the central bank which hiked the repo rate by 25 bps to 8% in its third quarter monetary policy review on Tuesday.
At close, the Sensex was down 24 points at 20,684 and the Nifty gave off 10 points to end at 6,126.
- Idea Cellular closed 4.13% down at Rs 139.30 on BSE after consolidated net profit jumped 104.6% to Rs 467.70 crore on 18.5% growth in revenue to Rs 6,613.10 crore in Q3 December 2013 over Q3 December 2012.
- Maruti Suzuki India closed 8.12% down at Rs 1,563.20 on BSE after net profit rose 35.88% to Rs 681.15 crore on 3.32% decline in total income to Rs 11,010.79 crore in Q3 December 2013 over Q3 December 2012.
- Among the 12 BSE Sectoral Indices 7 Sectors closed in positive while 5 Sectors ended the day in negative. Top Gainers: BSE Metal up by 1.72% and BSE Realty by 1.08%. Top Losers: BSE IT down by 1.01%, BSE Teck by 1.00%.
Market breadth was flat at ~0.99 as investors traded on both sides of the large cap stocks counter. On provisional basis, FII's sold Rs 12.67bn worth of Indian equities and DII's bought Rs 11.78bn worth of equities.
Economic and Corporate Developments
- For the fourth time in a row, Raghuram Rajan surprised the market and proved pollsters wrong as he decided to hike the key interest rate or the repo rate by 25 bps to 8% during the third quarter review of monetary policy.
This is the third occasion RBI hiked interest rate since Raghuram Rajan took charge in September. Since then, the repo rate has been hiked by 75 bps to tackle inflation which stayed stubbornly high.
The reverse repo rate under the Liquidity Adjustment Facility (LAF) stands adjusted at 7%, and the marginal standing facility (MSF) rate and the bank rate at 9%.
The Cash Reserve Ratio (CRR) was kept unchanged at 4% of Net Demand and Time Liabilities (NDTL).
CPI inflation, however, came down to a three-month low of 9.87% in December compared with 11.16% a month ago -which was record high. The Wholesale Price Index (WPI) inflation also fell to five-month low in December at 6.16% compared with 7.52% the previous month.
- Just Dial closed 12.59% down at Rs 1,287.85 on BSE after net profit rose 3.80% to Rs 29.75 crore on 6.39% increase in total income from operations to Rs 119.86 crore in Q3 December 2013 over Q2 September 2013.
- Munjal Auto Industries spurted 12.72%, in the morning trade, to Rs 42.55 on BSE after net profit jumped 49.6% to Rs 13.49 crore on 24.5% growth in net sales to Rs 216.13 crore in Q3 December 2013 over Q3 December 2012.
- Shree Cement fell 2.64%, in the afternoon trade, to Rs 4,211.55 on BSE, extending Monday's 1.64% fall triggered by the company's weak Q2 December 2013 results.
- NTPC closed 0.58% down at Rs 128.70 on BSE after the company said it entered into two foreign currency loan agreements for financing its Kudgi and Auraiya thermal power projects.
- Lanco Industries surged 5.19%, in the early trade, to Rs 25.35 on BSE after the company reported a net profit of Rs 8.83 crore in Q3 December 2013 as against net loss of Rs 9.11 crore in Q3 December 2012.
- Orient Green Power Company closed 1.32% down at Rs 10.49 on BSE after the company announced that its operating capacities now exceed 500 megawatts.
- Escorts closed 2.85% up at Rs 122.65 on BSE after net profit rose 61.9% to Rs 45.56 crore on 12.5% rise in net sales to Rs 1,154.45 crore in the quarter ended December 2013 over the quarter ended December 2012.
- Ranbaxy Laboratories closed 2.39% up at Rs 317.65 on BSE, with the stock recovering on bargain hunting after recent steep slide triggered by the US drug regulator banning the company's Toansa facility in India from importing drugs to the US.
- SKS Microfinance rose 2%, in the early trade, to Rs 189.10 on BSE, with the stock gaining on renewed buying after the company reported strong Q3 December 2013 earnings.
- IPCA Laboratories closed 3.89% up at Rs 798.30 on BSE after net profit rose 58% to Rs 139.12 crore on 19% increase in total income to Rs 838.37 crore in Q3 December 2013 over Q3 December 2012.
- Granules India closed 8.48% up at Rs 227.75 on BSE after consolidated net profit jumped 275% to Rs 21.80 crore on 46% growth in net sales to Rs 284.10 crore in Q3 December 2013 over Q3 December 2012.
- JSW Steel closed 1.61% up at Rs 930.00 on BSE after the company reported a consolidated net profit of Rs 466.49 crore in Q3 December 2013 as against net loss of Rs 73.70 crore in Q3 December 2012.
- Jindal Steel & Power closed 1.91% up at Rs 258.65 on BSE after net profit fell 35.26% to Rs 561.51 crore on 11.89% increase in total income to Rs 5,385.1- crore in Q3 December 2013 over Q3 December 2012.