Key benchmark indices witnessed high volatility at the onset of trading with S&P BSE Sensex reclaiming the psychological 26,000 mark. The barometer index, the S&P BSE Sensex was up 18.96 points or 0.07% at 26,018.30. The market breadth indicating the overall health of the market was negative. Meanwhile, foreign portfolio investors sold shares worth a net Rs 1128.37 crore yesterday, 16 October 2014, as per provisional data.
TCS tumbled after weak Q2 earnings. HCL Technologies slumped after Q1 earnings. Hero MotoCorp advanced after strong Q2 earnings. Tata Motors declined after global sales data for September. Axis Bank advanced after the bank said it has reduced its base rate by 10 basis points. Tata Steel advanced after the company said its two indirect 100% subsidiaries executed debt refinancing agreements.
At 9:25 IST, the S&P BSE Sensex was up 18.96 points or 0.07% at 26,018.30. The index rose 84.59 points at the day's high of 26,083.93 in early trade. The index lost 81.76 points at the day's low of 25,917.58 in early trade.
The CNX Nifty was down 3.45 points or 0.04% at 7,744.75. The index hit a high of 7,769.45 in intraday trade. The index hit a low of 7,729.65 in intraday trade.
The BSE Mid-Cap index was up 20.97 points or 0.23% at 9,264.92. The BSE Small-Cap index was up 30.04 points or 0.29% at 10,373.13.
The market breadth indicating the overall health of the market was negative. On BSE, 839 shares declined while 442 shares gained. A total of 35 shares were unchanged.
TCS tumbled 8.16% to Rs 2,460.15 after consolidated net profit fell 5.8% to Rs 5244 crore on 7.7% growth in revenue to Rs 23816 crore in Q2 September 2014 over Q1 June 2014. The result was announced after market hours on Thursday, 16 October 2014.
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TCS said that growth in Q2 September 2014 was broad-based with all industries growing on a sequential basis. The impact of the integration of newly merged entity in Japan also provided additional growth to units like manufacturing, hi-tech. All core markets like North America, Europe and UK grew smartly. Emerging markets continued to be volatile with India growing while Latin America faltered in Q2 September 2014. There was balanced growth across IT and other service lines led by Infrastructure Services and Engineering Services, TCS said.
Commenting on the Q2 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: "Driven by strong volumes and robust utilization rates, this has been a quarter of steady, consistent performance. Our well-rounded showing has been highlighted by broad-based growth in our key markets, industries and services as we continued to deepen our engagement with customers."
HCL Technologies lost 6.41% to Rs 1,549.80. The company's net profit rose 2.1% to Rs 1873 crore on 3.7% growth in revenue to Rs 8735 crore in Q1 September 2014 over Q4 June 2014. The result was announced before market hours.
Hero MotoCorp rose 1.87% at Rs 2,843.95 after net profit jumped 58.56% to Rs 763.37 crore on 21.69% growth in total income to Rs 7108.85 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 16 October 2014.
Tata Motors lost 0.37% to Rs 482. Tata Motors Group global wholesales in September 2014, including Jaguar Land Rover (JLR), were 80,104 units. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range in September 2014 were 34,918 units. Global wholesales of all passenger vehicles in September 2014 were 45,186 units. Global wholesales of Tata Motors' passenger vehicles in September 2014 were 12,328 units.
Global wholesales for Jaguar Land Rover for September 2014 were 32,858 vehicles. Jaguar wholesales for September 2014 were 5,715 vehicles, while Land Rover wholesales for the month were 27,143 vehicles.
Axis Bank rose 0.48% to Rs 395.80. The bank on Thursday, 16 October 2014, said that the bank has reduced its base rate by 10 basis points to 10.15% per annum (p.a.) from 10.25% with effect from 15 October 2014. The bank attributed the reduction in base rate to decline in cost of funds. The cost of funds has eased due to softening of interest rates based on improving liquidity and other macroeconomic developments, Sidharth Rath, President (Treasury, Business Banking & Capital Markets), Axis Bank said in a statement.
Tata Steel rose 0.63% at Rs 442.60. The company after market hours yesterday, 16 October 2014 said that its 100% indirect subsidiary Tata Steel UK Holdings Limited (TSUKH) executed agreements for the refinancing of its bank debt through term loan and revolving credit facilities of euro 3.05 billion. The debt was originally incurred in relation with the acquisition of Corus Group plc in 2007. The new financing structure consists of a 5-year loan of euro 370 million, a 6 year revolving credit facility for working capital purposes of 700 million pounds and a 7-year loan of euro 1.8 billion, with more favourable terms and pricing relative to the earlier debt, Tata Steel said.
Further, Tata Steel Global Holdings Pte Ltd. (TSGH), another 100% indirect subsidiary of Tata Steel incorporated in Singapore has also executed agreements today for loan facilities of US$1.5 billion comprising of a 5 year loan of $700 million and a 7 year loan of $800 million. The proceeds of this loan will be used to repay term debts, term out working capital and fund investment needs of the Tata Steel Group outside India, Tata Steel said.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Thursday, 16 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 1128.37 crore on that day.
Asian bourses today, 17 October 2014, mirrored the choppy trade overnight in the US. Key indices in Japan, China, Taiwan, and South Korea were off 0.76% to 1.21%. Key indices in Hong Kong, Singapore, and Indonesia were up 0.1% to 0.57%.
The MNI China Business Indicator fell to a eight-month low of 51.7 in October, the latest data showed today, 17 October 2014. It was down from September's reading of 52.2. While the indicator remains above the breakeven 50 line that separates expansion from contraction, the trend weakened further, with business sentiment below the average of 54 seen over the past 12 months.
US stocks ended little changed yesterday, 16 October 2014 with the Dow industrials recouping much of a 206-point deficit, as investors balanced worries about global growth against mostly better-than-expected US earnings and economic reports.
The National Association of Home Builders (NAHB)/Wells Fargo housing market index fell unexpectedly last month, official data showed on Thursday, 16 October 2014. In a report, NAHB said that NAHB Housing Market Index fell to 54, from 59 in the preceding month.
The Federal Reserve may want to extend its bond-buying program beyond October to keep its policy options open given falling US inflation expectations, Federal Reserve Bank of St. Louis President James Bullard said on Thursday, 16 October 2014.
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