A range bound movement was witnessed as key benchmark indices languished in negative zone in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex, was down 60.22 points or 0.23% at 26,665.38. The Nifty 50 index was currently down 14.65 points or 0.18% at 8,163.85.
The Sensex lost 117.08 points or 0.43% at the day's low of 26,608.52 in morning trade, its lowest level since 27 May 2016. The barometer index rose 111.60 points or 0.41% at the day's high of 26,837.20 in early trade, its highest level since 30 October 2015. The Nifty lost 33.60 points or 0.41% at the day's low of 8,144.90 in morning trade, its lowest level since 27 May 2016. The index rose 35.10 points or 0.42% at the day's high of 8,213.60 in early trade, its highest level since 27 October 2015.
In overseas stock markets, Chinese stocks edged higher on speculation that MSCI Inc., the global index provider, will soon add mainland-traded Chinese stocks, so-called A-shares, in its Emerging Markets Index. In mainland China, the Shanghai Composite index was currently up 2.59%. In Hong Kong, the Hang Seng index was currently up 1.42%. MSCI's inclusion of A-shares into the index will channel billions in passive asset-management money into China. On 27 May 2016, the Shanghai and Shenzhen stock exchanges announced rules on share trading suspensions, removing one potential roadblock for inclusion of Chinese A shares or yuan-denominated shares in MSCI Inc.'s global benchmark indexes.
Japanese shares edged higher after the latest data showed industrial output in April rose for the second month. The Nikkei 225 Average was currently up 0.97%.
Closer home, the market breadth indicating the overall health of the market was weak. On BSE, 770 shares rose and 1,333 shares declined. A total of 107 shares were unchanged. The BSE Mid-Cap index was currently down 0.15%. The decline in this index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index was currently down 0.39%. The decline in this index was higher than Sensex's decline in percentage terms.
Jewellery stocks edged higher on reports the government has rolled back its budget decision to apply 1% tax collection at source (TCS) on cash purchase of gold jewellery of Rs 2 lakh and above and raised the threshold to the earlier Rs 5 lakh with effect from 1 June 2016. Tribhovandas Bhimji Zaveri (up 6.26%), Shree Ganesh Jewellery House (I) (up 5.38%), Tara Jewels (up 4.17%), Gitanjali Gems (up 3.09%), Titan Company (up 0.96%) and PC Jeweller (up 2.13%) edged higher. Rajesh Exports (down 0.13%), Vaibhav Global (down 1.94%) and Thangamayil Jewellery (down 0.05%) edged lower.
In the Union Budget 2016-17, the government had reduced the TCS threshold on jewellery to Rs 2 lakh. TCS is collected by the seller from the buyer at the time of sale and is deposited with the government.
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IT stocks declined. TCS (down 1.14%), Tech Mahindra (down 0.93%), HCL Technologies (down 0.86%), Wipro (down 0.54%), Persistent Systems (down 0.26%) and Oracle Financial Services Software (down 0.14%) edged lower.
Index heavyweight and software major Infosys was down 1.56% at Rs 1,243.80. The stock hit a high of Rs 1,268 and a low of Rs 1,241.50 so far during the day.
Tata Motors jumped 6.78% at Rs 449.05 after consolidated net profit jumped 201.6% to Rs 5177.06 crore on 18.97% growth in total income to Rs 80933.04 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 30 May 2016. Tata Motors said that the revenue growth in Q4 March 2016 reflects strong sales in all the regions for Jaguar Land Rover business namely in UK, Europe, North America, China and other overseas markets. The revenue also rose on account of continued robust volume growth in medium & heavy commercial vehicles (M&HCV) segment and start of volume growth in the light commercial vehicles (LCV) segment in standalone business.
Tata Motors said that consolidated profit before tax (before exceptional item) jumped 103.17% to Rs 5957 crore in Q4 March 2016 over Q4 March 2015 due to stronger operating performance in both standalone as well as Jaguar Land Rover business and lower net finance expenses partly offset by higher depreciation and amortization expenses, adverse revaluation of Euro payables and one time reserves and charges of Rs 1580 crore (166 million) for the industry-wide recall in the United States of potentially faulty airbags supplied by Takata, doubtful debts and previously capitalized investment in the Jaguar Land Rover business.
Further, exceptional items for Q4 March 2016 includes further insurance and other recoveries of Rs 555 crore on account of the vehicles damaged at Tianjin Port explosion in Jaguar Land Rover business.
L&T was down 0.85% at Rs 1,473.75. The stock hit a high of Rs 1,488.70 and a low of Rs 1,467.95 so far during the day. L&T's wholly-owned subsidiary L&T Hydrocarbon Engineering (LTHE) today, 31 May 2016, announced a teaming agreement with engineering, construction, technical and management services firm Parsons to provide engineering and design solutions for onshore and offshore projects across the hydrocarbon, fertilizer, chemicals, and modular plant sectors in the US. LTHE and Parsons will collaborate to provide customers with conceptual engineering, feasibility studies, front-end engineering design, detailed engineering, specialty and high-end engineering, cost estimating, and engineering, procurement, and construction management services in the US.
NTPC rose 2.52% at Rs 146.70, with the stock extending previous trading session's post-result gains. The stock had risen 2.28% to settle at Rs 143.10 yesterday, 30 May 2016, after announcing Q4 March 2016 results at the fag end of trading session. NTPC's net profit fell 7.73% to Rs 2716.41 crore on 6.19% decline in net total income from operations to Rs 18112.62 crore in Q4 March 2016 over Q4 March 2015.
NTPC said that the group's installed capacity increased to 46,653 megawatts (MW) as on 31 March 2016 from 44,398 MW as on 31 March 2015. Its consolidated commercial capacity increased to 45,103 MW as on 31 March 2016 from 43,143 MW as on 31 March 2015. The plant load factor (PLF) of coal-based generation units was reported at 81.3% in Q4 March 2016, lower than 82.68% in Q4 March 2015. The PLF of gas based generation units was reported at 17.83% in the quarter ended 31 March 2016, which was lower than 26.68% in the quarter ended 31 March 2015.
The company's plant availability factor (PAF) for coal-based units was reported at 95.24% in the quarter ended 31 March 2016, lower than 97.18% in the quarter ended 31 March 2015. PAF for gas-based units was reported at 98.20% in the quarter ended 31 March 2016, higher than 96.46% in the quarter ended 31 March 2015.
Grindwell Norton surged 10.72% at Rs 700.15 after the company's board of directors at a meeting held yesterday, 30 May 2016, recommended a liberal 1:1 bonus issue of shares. Grindwell Norton's consolidated net profit rose 12.18% to Rs 30.57 crore on 8.76% growth in total income from operations to Rs 323.04 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 30 May 2016.
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