Key benchmark indices slipped into negative zone from positive zone in mid-morning trade, with the barometer index, the S&P BSE Sensex, hitting fresh intraday low. The Sensex was down 14.80 points or 0.06%, off 75.55 points from the day's high and up 31.66 points from the day's low. The market breadth indicating the overall health of the market was strong.
IT stocks edged higher on renewed buying. IT major TCS rose ahead of its Q1 June 2014 results today, 17 July 2014. CMC dropped after weak Q1 June 2014 results.
At 11:15 IST, the S&P BSE Sensex was down 14.80 points or 0.06% to 25,534.92. The index gained 60.75 points at the day's high of 25,610.47 in early trade, its highest level since 10 July 2014. The index fell 46.46 points at the day's low of 25,503.26 in mid-morning trade.
The CNX Nifty was down 4.50 points or 0.06% to 7,619.90. The index hit a high of 7,643.60 in intraday trade, its highest level since 10 July 2014. The index hit a low of 7,612.70 in intraday trade.
The market breadth, indicating the overall health of the market was strong. On BSE, 1,446 shares gained and 942 shares fell. A total of 80 shares were unchanged.
The BSE Mid-Cap index was up 72.72 points or 0.79% at 9,238.64. The BSE Small-Cap index was up 82.17 points or 0.82% at 10,139.54. Both these indices outperformed the Sensex.
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The total turnover on BSE amounted to Rs 2513 crore by 11:15 IST, compared with Rs 2108 crore by 10:15 IST.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined.
Mahindra & Mahindra (down 2.81%), ONGC (down 2.43%) and State Bank of India (down 1.23%) edged lower from the Sensex pack.
IT stocks edged higher on renewed buying. IT major TCS rose 0.47% ahead of its Q1 June 2014 results today, 17 July 2014.
Wipro gained 1.51%. HCL Technologies rose 0.53%.
Infosys advanced 1.91%. Infosys expects its consolidated revenue to grow 7%-9% in dollar terms in the year ending 31 March 2015 (FY 2015). The company expects its revenue to grow 5.6%-7.6% in rupee terms in FY 2015. At a conference call held last week after the first quarter results, Infosys management said it expects margins to remain flattish in the current year, excluding the impact of the depreciation as it plans to invest in the business as growth remains top priority. Infosys' depreciation outgo was lower by sharp 36% at Rs 230 crore in Q1 June 2014 over Q4 March 2014 due to a change in depreciation policy during the quarter.
Infosys said that the deal pipeline is stable with marginal improvement. There is greater comfort in the pipeline over the last year due to the increase in the discretionary spending, the management said in conference call. The company is focusing lot more on execution.
Tech Mahindra rose 1.54%. Tech Mahindra after market hours on Wednesday, 16 July 2014, said that the company has signed a memorandum of understanding (MoU) with Wichita State University (WSU), a state educational institution of Kansas in the areas of aerospace engineering, certification, information technology and automotive testing. Tech Mahindra will collaborate with WSU and its National Institute for Aviation Research (NIAR), the largest academic aviation R&D institution in the United States, on multiple areas of engineering including composites, advanced materials and structural testing.
No major sops were announced in the Union budget 2014-15 for the IT industry. While presenting the Union Budget 2014-15 on 10 July 2014, Finance Minster Arun Jaitley said all Central Government Departments and Ministries will integrate their services with a single window IT platform - the eBiz platform -- on priority by 31 December this year. Jaitley also announced the launch of a pan India programme viz. Digital India. This would ensure broad band connectivity at village level, improved access to services through IT enabled platforms, greater transparency in government processes and increased indigenous production of IT hardware and software for exports and improved domestic availability.
The increase in tax from 10% to 20% on long term capital gains from transfer of units of mutual funds, other than equity oriented funds is negative for the Indian IT companies as they invest surplus cash in these instruments.
CMC lost 5% after consolidated net profit fell 34.68% to Rs 58.42 crore on 4.91% decline in income from operations to Rs 592.63 crore in Q1 June 2014 over Q4 March 2014. The result was announced after trading hours on Wednesday, 16 July 2014.
CMC has revised its estimated useful life of fixed assets, wherever appropriate, effective 1 April 2014 based on an evaluation. The carrying amount as on 1 April 2014 is depreciated over the revised remaining useful life. As a result of these changes, the depreciation charge for the quarter ended 30 June 2014 is higher by Rs 24.23 crore and the effect relating to the period prior to 1 April 2014 is Rs 18.82 crore (excluding deferred tax credit of Rs 6.39 crore), which has been shown as an 'exceptional item' in the unaudited financial results, CMC said in a statement.
With small initial gains, the Sensex and the 50-unit CNX Nifty, both, hit one week high. Key benchmark indices slipped into negative zone from positive zone in mid-morning trade.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.1625, compared with its close of 60.13 on Wednesday, 16 July 2014.
Asian stocks edged lower today, 17 July 2014, reversing initial gains triggered by overnight upmove in US stocks. Key benchmark indices in Indonesia, Japan, Singapore, China, Taiwan and Hong Kong were off 0.07% to 0.94%. South Korea's Seoul Composite index rose 0.33%.
Trading in US index futures indicated that the Dow could fall 21 points at the opening bell on Thursday, 17 July 2014. US stocks advanced on Wednesday, 16 July 2014, sending the Dow Jones Industrial Average to an all-time high, as companies from Time Warner Inc. to Intel Corp. rallied amid deals and earnings reports.
The Federal Reserve said in its Beige Book business survey released on Wednesday, 16 July 2014, that economic growth was modest to moderate in the latest period as all 12 of its districts reported stronger consumer spending and expanded manufacturing.
Federal Reserve Chairwoman Janet Yellen concluded her two-day appearance testifying on Capitol Hill. In her comments, she reportedly stressed a softer line on stock valuations, saying the Fed doesn't have a target for equity values. The central bank instead looks to see if valuations are outside historical norms. In that sense, I am not seeing alarming warning signals, she said Wednesday, 16 July 2014.
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