Volatility continued as key benchmark indices once again trimmed losses after extending intraday losses in early afternoon trade. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was currently off 61.37 points or 0.22% at 27,775.84. In overseas markets, Asian stocks edged lower after a flash manufacturing sector survey showed that Chinese factory activity contracted for a third month in a row in May 2015.
Bajaj Auto rose after announcing Q4 results. Realty shares were mixed. Shares of PSU OMCs fell after crude oil prices rose.
Foreign portfolio investors bought shares worth a net Rs 123.49 crore yesterday, 20 May 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 103.58 crore yesterday, 20 May 2015, as per provisional data released by the stock exchanges.
Meanwhile, the finance ministry yesterday, 20 May 2015, constituted a three-member committee headed Justice A.P. Shah to look into the issue of Minimum Alternate Tax (MAT) on foreign institutional investors (FIIs).
Earlier, the Sensex and the 50-unit CNX Nifty had, both, hit four-week high amid initial volatility.
In the overseas market, Asian stocks edged lower after a flash manufacturing sector survey showed that Chinese factory activity contracted for a third month in a row in May 2015. US stocks ended a choppy trading session slightly lower yesterday, 20 May 2015, as modest post-Fed-minutes gains evaporated by the close of the trading day.
At 12:16 IST, the S&P BSE Sensex was down 61.37 points or 0.22% at 27,775.84. The index fell 124.48 points at the day's low of 27,712.73 in early afternoon trade, its lowest level since 19 May 2015. The index rose 74.23 points at the day's high of 27,911.44 in early trade, its highest level since 23 April 2015.
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The CNX Nifty was down 16.15 points or 0.19% at 8,407.10. The index hit a low of 8,382.50 in intraday trade, its lowest level since 19 May 2015. The index hit a high of 8,446.35 in intraday trade, its highest level since 23 April 2015.
The BSE Mid-Cap index was down 65.56 points or 0.62% at 10,585.22. The BSE Small-Cap index was down 27.87 points or 0.25% at 11,178.98. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,378 shares fell and 926 shares rose. A total of 97 shares were unchanged.
Bajaj Auto was up 4% at Rs 2,237. The stock was volatile. The scrip hit high of Rs 2,245.10 and low of Rs 2,124 so far during the trading session. The company's net profit fell 18.62% to Rs 621.62 crore on 4.36% decline in total income to Rs 4893.61 crore in Q4 March 2015 over Q4 March 2014. The result was announced during trading hours today, 21 May 2015.
Bajaj Auto's operating EBITDA (earnings before interest, taxation, depreciation and amortization) before mark-to-market (MTM) gain/loss declined 9.02% to Rs 937 crore in Q4 March 2015 over Q4 March 2014. Operating EBITDA margin stood at 19.4% in Q4 March 2015 as against 20.6% in Q4 March 2014. Bajaj Auto said that EBITDA margin declined on year-on-year basis in Q4 March 2015 largely due to one-off expenses. For one, there was an increase in employee costs. There was increase in employee costs due to increase in charge due to actuarial valuation for gratuity to Rs 90 crore from Rs 31 crore. Bajaj Auto also said that the company provided for loss on account of a fire incident at the company's Akurdi unit in January 2015 in Q4 March 2015.
With regard to motorcycles, Bajaj Auto said that the newly launched Pulsar RS 200 and Pulsar AS 200 models would see further gain the company's domestic motorcycle market share. Bajaj Auto also said that the newly launched CT100 model has been well received in the domestic market. With the success of CT100 and the new Pulsar models, April 2015 saw the company increase its share in domestic motorcycle market by over 300 basis points sequentially.
Bajaj Auto said that growth in the company's exports is back on track due to normalcy returning across major geographical markets where it exports its vehicles.
Realty shares were mixed. Anant Raj (down 1.69%), Phoenix Mills (down 1.59%), Parsvnath Developers (down 1.36%), Indiabulls Real Estate (down 1.2%), Peninsula Land (down 0.74%), Sunteck Realty (down 0.61%), D B Realty (down 0.51%) and Unitech (down 0.35%), edged lower.
Prestige Estates (up 0.30%), Sobha (up 0.68%), Oberoi Realty (up 0.71%), Housing Development and Infrastructure (HDIL) (up 0.99%) and Godrej Properties (up 2.95%), edged higher.
DLF rose 0.53% to Rs 124 after consolidated net profit fell 21.87% to Rs 171.62 crore on 16.67% decline in total income to Rs 2101.16 crore in Q4 March 2015 over Q4 March 2014. The stock hit high of Rs 125.90 and low of Rs 122.10 so far during the trading session. DLF's consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) fell 8% to Rs 843 crore in Q4 March 2015 over Q4 March 2014. The Q4 result was announced after market hours yesterday, 20 May 2015.
Shares of most PSU OMCs (public sector oil marketing companies) fell after crude oil prices rose. HPCL (down 1.69%) and BPCL (down 1.44%) edged lower. Higher crude oil prices will increase under recovery of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
Brent crude oil futures extended gains registered during the previous trading session. Brent for July settlement was up 20 cents at $65.23 a barrel. The contract had risen $1.01 a barrel or 1.58% to settle at $65.03 a barrel during the previous trading session.
Indian Oil Corporation dropped 0.39%. With respect to media reports titled "Indian Oil Corp to own 45% stake in Ennore LNG's Tamil Nadu terminal", Indian Oil Corporation after market hours yesterday, 20 May 2015, clarified that as per the company's earlier clarification on 5 January 2015, the company's board at its meeting held in October 2014 had accorded approval for setting up a 5 million tonne LNG project at Ennore through a joint venture company. The cost of the project is estimated at Rs 5150 crore. The project would be implemented through a joint venture company and not directly by the company, Indian Oil Corporation said. Indian Oil Corporation will hold 45% equity stake, TIDCO (a Tamil Nadu state government enterprise) will own 5% stake and balance 50% will be held by financial institutions. Indian Oil Corporation clarified that no significant or material development has taken place with respect to this project after this clarification issued by the company on 5 January 2015.
Meanwhile, the finance ministry yesterday, 20 May 2015, constituted a three-member committee headed Justice A.P. Shah to look into the issue of Minimum Alternate Tax (MAT) on foreign institutional investors (FIIs). It may be recalled that Finance minister Arun Jaitley had on 7 May 2015 announced the constitution of a committee headed by Chairman of Law Commission of India Justice A.P. Shah to look into the issue of the levy of MAT on FIIs as well as other issues which are referred to it.
To begin with, the committee will examine the matter relating to levy of MAT on FIIs for the period prior to 1 April 2015. The committee will also examine all the related legal provisions, judicial/quasi judicial pronouncements and such other relevant aspects as it may consider appropriate, the finance ministry said in a statement. The committee has been requested to give its recommendations on the issue of levy of MAT on FIIs expeditiously. Since initially the committee would focus on the issue of MAT on FIIs for giving its report expeditiously, other issues to be referred to the committee will be notified in due course, the finance ministry said. The term of the committee will be for one year or such period as may be notified by the government from time to time.
In overseas markets, Asian stocks edged lower today, 21 May 2015, after a flash manufacturing sector survey showed that Chinese factory activity contracted for a third month in a row in May 2015. Key benchmark indices in Hong Kong, Indonesia, Singapore, South Korea and Taiwan were off 0.12% to 1.15%. Key benchmark indices in China and Japan were up 0.1% to 1.36%.
The preliminary HSBC China Manufacturing Purchasing Managers Index, a gauge of nationwide manufacturing activity, edged up to 49.1 in May, compared with a final reading of 48.9 in April, HSBC Holdings PLC said today, 21 May 2015. The reading was still below the key 50 mark, which separates expansion from contraction when compared with the previous month, said Markit, which releases the index with HSBC.
The preliminary PMI figure, also called the HSBC Flash China PMI, is based on 85% to 90% of total responses to HSBC's survey each month, and is issued about one week before the final PMI reading.
Meanwhile, China's State Council has unveiled a 10-year plan for upgrading the nation's manufacturing capacity so it can catch up with production powerhouses like Germany and fend off competition from other developing countries. The Ministry of Industry and Telecommunication Technology (MIIT), which led the creation of the Made in China 2025 plan, said the strategy is intended to give China an edge in innovation, green development and quality goods. The MIIT put the focus on 10 sectors, including high-end computerized machinery and robotics, aerospace equipment, renewable-energy cars and biological medicine.
US stocks ended a choppy trading session slightly lower yesterday, 20 May 2015, as modest post-Fed-minutes gains evaporated by the close of the trading day. Officials at the Fed's April policy meeting believed it would be premature to raise interest rates in June and that a bump in inflation was being offset by a weaker labour market and softer data, according to the minutes.
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