Key benchmark indices extended losses and hit fresh intraday low in afternoon trade after European stocks dropped in early trade there. The barometer index, the S&P BSE Sensex, was down 212.50 points or 0.81%, off 240.82 points from the day's high and up 4.49 points from the day's low. The market breadth indicating the overall health of the market was weak, with more than two losers for every gainer on BSE. The BSE Mid-Cap index was off 1.68%. The BSE Small-Cap index was off 2.17%. Indian stocks fell today, 25 July 2014, on concerns geopolitical tension in the Middle East and Ukraine could push oil prices higher.
Wipro dropped after the company reported a muted 1.2% growth in IT services revenue on sequential basis in Q1 June 2014. Realty stocks declined. Tata Sponge Iron scaled record high. Shriram Transport Finance Company dropped after the company reported weak Q1 result. LIC Housing Finance declined after reporting Q1 result.
At 13:15 IST, the S&P BSE Sensex was down 212.50 points or 0.81% to 26,059.35. The index dropped 216.99 points at the day's low of 26,054.86 in afternoon trade, its lowest level since 23 July 2014. The index rose 28.32 points at the day's high of 26,300.17 in early trade, a record high for the index.
The CNX Nifty was down 65.40 points or 0.84% to 7,765.20. The index hit a low of 7,763.10 in intraday trade, its lowest level since 23 July 2014. The index hit a high of 7,840.95 in intraday trade, a record high for the index.
The market breadth indicating the overall health of the market was weak, with more than two losers for every gainer on BSE. On BSE, 1,909 shares fell and 754 shares rose. A total of 98 shares were unchanged.
The BSE Mid-Cap index was down 156.29 points or 1.68% at 9,137.17. The BSE Small-Cap index was down 222.23 points or 2.17% at 10,007.10. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2186 crore by 13:15 IST.
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Among the 30-share Sensex pack, 21 stocks declined and rest of them gained.
Hindalco Industries (down 3.19%), Sesa Sterlite (down 2.97%) and Tata Motors (down 2.54%) edged lower from the Sensex pack.
India's largest power equipment maker by sales Bharat Heavy Electricals (Bhel) dropped 5.44% to Rs 223.50, with the stock extending intraday slide. The stock was volatile. The stock hit high of Rs 237.70 and low of Rs 223.05 in intraday trade.
Wipro dropped after the company reported a muted 1.2% growth in IT services revenue on sequential basis in Q1 June 2014. The stock was off 4.94% at Rs 548.30. The stock hit high of Rs 554.95 and low of Rs 528 so far during the day. The company's consolidated net profit as per International Financial Reporting Standards (IFRS) jumped 30% to Rs 2100 crore on 14% growth in total revenue to Rs 11140 crore in Q1 June 2014 over Q1 June 2013. The result was announced after trading hours yesterday, 24 July 2014.
IT services revenue was $1.74 billion in Q1 June 2014, a sequential increase of 1.2% and year on year (YoY) increase of 9.6%. IT services revenues in rupee terms was Rs 10510 crore in Q1 June 2014, an increase of 18% YoY. IT services earnings before interest and tax (EBIT) was Rs 2400 crore in Q1 June 2014, an increase of 35% YoY. Non-GAAP constant currency IT services revenue in dollar terms was $1.725 billion in Q1 June 2014, which was within the company's guidance range of $1.715 billion to $1.755 billion. Wipro expects revenue from IT services business to be in the range of $1.77 billion to $1.81 billion in Q2 September 2014.
T K Kurien, Executive Director & Chief Executive Officer, Wipro, said that the company continues to win large deals, particularly in the application and infrastructure space. These wins demonstrate confidence of clients in Wipro's transformational capabilities, he said. Suresh Senapaty, Executive Director & Chief Financial Officer, Wipro said that Wipro's operating margins for Q1 June 2014 was on expected lines, impacted largely due to wage hikes.
Realty stocks declined. DLF (down 4.48%), Indiabulls Real Estate (down 2.47%), Housing Development and Infrastructure (down 2.86%), D B Realty (down 1.96%), Unitech (down 1.82%), Godrej Properties (down 1.72%), Oberoi Realty (down 2.51%) and Parsvnath Developers (down 2.66%) declined.
Tata Sponge Iron jumped 15.81% to Rs 1,171 after scaling a record high of Rs 1,203.55 in intraday trade.
Shriram Transport Finance Company lost 2.93%. Shriram Transport Finance Company during market hours reported 14.57% fall in consolidated net profit to Rs 312.90 crore on 5.92% rise in total income to Rs 2149.81 crore in Q1 June 2014 over Q1 June 2013.
LIC Housing Finance tumbled 5.1% after net profit rose 3.8% to Rs 322.30 crore on 16.76% growth in total income from operations to Rs 2509.12 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced during market hours today, 25 July 2014.
The Sensex and the 50-unit CNX Nifty, both, hit record high amid initial volatility. Key benchmark indices lost ground in morning trade. Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade. A bout of volatility was witnessed as key benchmark indices hit fresh intraday low in early afternoon trade. Key benchmark indices extended losses and hit fresh intraday low in afternoon trade.
Investors are keeping a close watch of crude oil prices amid fears geopolitical tension in the Middle East and Ukraine could push oil prices higher. India imports almost 80% of its crude oil requirements. Brent crude futures for September delivery were up 20 cents at $107.27 a barrel. The contract had closed 96 cents lower on Thursday, 24 July 2014.
The death toll in Gaza's fighting has continued to rise, with over 800 Palestinians and 33 Israelis killed since 8 July 2014, according to reports. At least 13 people were killed and more than 200 injured when a UN-run school used as a shelter came under fire in Gaza on Thursday, 24 July 2014, reports said. Israel launched its military offensive against Gaza on 8 July with the declared objective of stopping Hamas firing rockets into Israel.
Meanwhile, the US reportedly said on Thursday, 24 July 2014, that it has evidence that Russia has fired artillery across the border targeting Ukrainian military positions. Russia has frequently denied sending any rocket launchers into Ukraine. Russia is facing international pressure after Malaysia Airlines flight MH17 crashed in eastern Ukraine on 17 July, with pro-Russian rebels widely accused of shooting it down.
In the foreign exchange market, the rupee was unchanged against the dollar in choppy trading. The partially convertible rupee was hovering at 60.11, unchanged from its close of 60.11 on Thursday, 24 July 2014.
The monsoon rains were reportedly 24% above average in the week ended July 23. The annual monsoon arrived over the southern Kerala coast on 6 June, and then covered the entire country on 17 July. Rains are vital to India's farm sector, which accounts for about 14% of the country's nearly $2 trillion economy. Two-thirds of its 1.2 billion population lives in rural areas.
European stocks declined today, 25 July 2014, as LVMH Moet Hennessy Louis Vuitton SA and Danone SA posted worse-than-expected financial results. Key benchmark indices in UK, France and Germany were down 0.23% to 0.58%.
Asian stocks rose in choppy trade today, 25 July 2014. Key benchmark indices in China, Hong Kong, Japan and South Korea were up by 0.22% to 1.13%. Key benchmark indices in Indonesia, Singapore and Taiwan were off 0.35% to 0.93%.
Trading in US index futures indicated a flat opening of US stocks on Friday, 25 July 2014. US stocks finished a quiet session mostly flat on Thursday, 24 July 2014, as earnings painted a mixed picture of the economy, though the S&P 500 index set another record closing high.
The number of Americans filing applications for unemployment benefits dropped last week to the lowest level in more than eight years, reflecting what could be a pickup in auto making during a typically slow time of year. Jobless claims fell by 19,000 to 284,000 in the week ended July 19, the fewest since February 2006 and lower than forecast, a Labor Department report showed in Washington.
Fewer US new homes than forecast were sold in June and data for the prior month was revised down by a record, painting a troubling picture of a market struggling to gain traction. Sales declined 8.1% to a 406,000 annualized pace, the fewest since March and lower than forecast, Commerce Department figures showed in Washington. That followed a May rate of 442,000.
The International Monetary Fund yesterday, 24 July 2014, lowered its outlook for global growth this year as expansion rates from China to the US weaken and military conflicts from Ukraine to the Middle East raise the risk of a surge in oil prices. The world economy will expand 3.4% in 2014, the IMF said, less than its 3.6% prediction in April and stronger than last year's 3.2%. Next year, growth will be 4% compared with an April forecast for 3.9%, the fund said.
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