A range bound movement was witnessed as key benchmark indices alternately swung between positive and negative zone near the flat line in afternoon trade. Benchmark indices were currently trading just a tad higher for the day. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently up 30 points or 0.11% at 27,916.21.
Metal shares edged higher. FMCG shares were mixed. Kotak Mahindra Bank edged higher after the private bank said it has allotted equity shares to the shareholders of ING Vysya Bank pursuant to merger of ING Vysya Bank with Kotak Mahindra Bank.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their lowest levels in more than three weeks in morning trade as these key benchmark indices witnessed a sudden slide.
Foreign portfolio investors sold shares worth a net Rs 1506.86 crore yesterday, 20 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 962.50 crore on yesterday, 20 April 2015, as per provisional data.
In overseas markets, Germany led European shares higher. Trading in US index futures indicated a firm opening of US stocks later in the global day today, 21 April 2015. Chinese and Japanese led gains in Asian stocks after China's step to prop up its faltering economy. The People's Bank of China (PBOC) on 19 April 2015, announced reduction in reserve requirement ratio (RRR) for all banks by 100 basis points to 18.5% effective from 20 April 2015.
At 13:15 IST, the S&P BSE Sensex was up 30 points or 0.11% at 27,916.21. The index fell 199.14 points at the day's low of 27,687.07 in morning trade, its lowest level since 30 March 2015. The index rose 90.72 points at the day's high of 27,976.93 in early trade.
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The CNX Nifty was up 10 points or 0.12% at 8,458.10. The index hit a low of 8,382.65 in intraday trade, its lowest level since 30 March 2015.The index hit a high of 8,469.35 in intraday trade.
The BSE Mid-Cap index was up 42.91 points or 0.41% at 10,596.87. The BSE Small-Cap index was up 26.81 points or 0.24% at 11,396.40. Both theses indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,373 shares rose and 1,068 shares fell. A total of 108 shares were unchanged.
Kotak Mahindra Bank (KMBL) rose 0.25% at Rs 1,373.50. KMBL during market hours today, 21 April 2015, said it has allotted 13.92 crore equity shares of Rs 5 each of KMBL to the shareholders of ING Vysya Bank as on the record date i.e. 17 April 2015, in the ratio of 725 equity shares of Rs 5 each of KMBL for every 1,000 equity shares of Rs 10 each held in ING Vysya Bank. With this allotment, the aggregate foreign investment in KMBL has reached 48.5% which is approaching the composite cap of 49% on foreign investment under the automatic route, KMBL said. KMBL's application for an approval to increase the aggregate ceiling on foreign investment to 55% is currently under consideration of Foreign Investment Promotion Board (FIPB), KMBL said.
Metal shares edged higher. National Aluminium Company (up 3.01%), Tata Steel (up 1.18%), Steel Authority of India (up 1.22%), Sesa Sterlite (up 0.67%), Jindal Steel & Power (up 0.45%), and NMDC (up 0.12%) edged higher. JSW Steel (down 1.09%) and Hindalco Industries (down 1.95%) edged lower.
Hindustan Zinc fell 1.7% at Rs 167.50. The stock hit a high of Rs 174.40 and a low of Rs 166.50 so far during the day. The company's net profit rose 6.17% to Rs 1997.44 crore on 11.56% growth in total income to Rs 4720.56 crore in Q4 March 2015 over Q4 March 2014. The result was announced after market hours yesterday, 20 April 2015.
Hindustan Zinc's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 14% to Rs 1978 crore in Q4 March 2015 over Q4 March 2014, due to the increase in revenue along with reduction in cost of production. Integrated zinc and lead metal production during the quarter were record high due to higher feed availability and enhanced smelter utilization, Hindustan Zinc said.
With regard to future business outlook, Hindustan Zinc said it expects significant progress in terms of mine development and ore production from the underground mine projects. Rampura Agucha will continue to provide majority of mined metal in year ending 31 March 2016 (FY 2016), although overall production from this mine will be less than in year ending 31 March 2015 (FY 2015). The gap in production will be made up primarily by higher volumes from Sindesar Khurd. In FY 2016, mined metal production is expected to be higher from FY 2015, while integrated refined metal production, including silver, will be significantly higher as the company will process the available mined metal inventory also, Hindustan Zinc said. The cost of production excluding royalty is expected to remain stable, it added. There would be an additional outflow towards DMF and National Exploration Trust in accordance with the MMDRA Act 2015, Hindustan Zinc said.
FMCG shares were mixed. Britannia Industries (down 3.16%), Hindustan Unilever (down 2.49%), Nestle India (down 0.46%) and Colgate-Palmolive (India) (down 0.48%) edged lower. Godrej Consumer Products (up 0.02%), Emami (up 1.55%), Marico (up 1.55%), Bajaj Corp (up 2.3%) and Dabur India (up 0.26%) edged higher.
Proceedings in the parliament during the second and final part of the ongoing Budget session which began yesterday, 20 April 2015, are being closely watched as the government hopes to pass the Constitution Amendment Bill for the introduction of a nationwide Goods and Services Tax (GST) in the country. The government had tabled the Constitution Amendment Bill for GST in the Lok Sabha during the winter session of parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
Meanwhile, global markets are closely monitoring developments with regard to Greece. Greece reportedly ordered state bodies to send cash balances to the country's central bank as it scrambles to pay its bills. The latest move comes as Greece faces further debt repayments to the International Monetary Fund (IMF) and European Central Bank in the coming months. Eurozone finance ministers are scheduled to hold a meeting on Friday, 24 April 2015, to discuss the state of negotiations between Greece and its international creditors.
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