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Last Updated : Jul 24 2015 | 5:01 PM IST

Key benchmark indices dropped sharply on last trading day of the week. After trading with small losses in first half of the day's trade, key benchmark indices extended fall and hit fresh intraday low in late trade. The barometer index, the S&P BSE Sensex was provisionally off 229.67 points or 0.81% at 28,141.17. The market breadth indicating the overall health of the market was negative. Key benchmark indices edged lower today, 24 July 2015, as complete washout of Lok Sabha proceedings in the first week of the monsoon session, because of a political tussle between the National Democratic Alliance (NDA) government and the Congress party triggered concerns about the passage of key reform bills.

Axis Bank slipped in volatile trade after declaring Q1 result. Capital goods stocks dropped.

In overseas markets, European stocks edged higher following further evidence of a modest recovery in the eurozone economy. Asian stocks fell after a survey of Chinese manufacturing activity was weaker than expected, while US jobs data underpinned the dollar as it bolstered bets that the US Federal Reserve is on track to hike interest rates later this year.

Key benchmark indices edged lower today, 24 July 2015, as complete washout of Lok Sabha proceedings in the first week of the monsoon session, because of a political tussle between the National Democratic Alliance (NDA) government and the Congress party triggered concerns about the passage of key reform bills. The House was adjourned for the day till Monday, 27 July 2015 minutes after it assembled morning today, 24 July 2015 No business has been transacted since the session began on 21 July 2015, witnessing adjournments after adjournments over the opposition uproar. The constitutional amendment bill for Goods and Services Tax (GST) needs the support of two-thirds of the members in both Houses of Parliament. The government is targeting the rollout of GST starting on 1 April 2016. 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.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 185.42 crore yesterday, 23 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 276.69 crore yesterday, 23 July 2015, as per provisional data.

As per provisional closing, the S&P BSE Sensex was down 229.67 points or 0.81% at 28,141.17. The index lost 287.08 points at the day's low of 28,083.76 in late trade, its lowest level since 22 July 2015. The index rose 31.80 points at the day's high of 28,402.64 in early trade.

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The CNX Nifty was down 68.25 points or 0.79% at 8,521.55. The index hit a high of 8,589.15 in intraday trade. The index hit a low of 8,513.50 in intraday trade, its lowest level since 22 July 2015.

The market breadth indicating the overall health of the market was negative. On BSE, 1,597 shares declined and 1,248 shares gained. A total of 108 shares were unchanged.

The BSE Mid-Cap index was off 68.20 points or 0.61% at 11,147.99. The BSE Small-Cap index was off 68.01 points or 0.58% at 11,668.12. The fall in both these indices was lower than the Sensex's decline in percentage terms.

The total turnover on BSE amounted to Rs 3405 crore, slightly higher than turnover of Rs 3402.78 crore registered during the previous trading session.

Axis Bank shed 0.45% to Rs 581.20. The stock witnessed intraday volatility after the results hit the market in mid-afternoon trade. The stock hit high of Rs 593.50 and low of Rs 576. The private sector bank's net profit rose 18.69% to Rs 1978.44 crore on 22.58% growth total income to Rs 12234.41 crore in Q1 June 2015 over Q1 June 2014. Axis Bank announced the first quarter results during trading hours today, 24 July 2015.

Axis Bank's provisions and contingencies (net) jumped 190.16% to Rs 1121.77 crore in Q1 June 2015 over Q1 June 2014.

Axis Bank's gross non-performing assets on absolute basis edged higher to Rs 4251.18 crore as on 30 June 2015 from Rs 4110.19 crore as on 31 March 2015 and Rs 3463.27 crore as on 30 June 2014. The ratio of gross non-performing assets to gross advances stood at 1.38% as on 30 June 2015, higher than 1.34% each as on 31 March 2015 and 30 June 2014. The ratio of net non-performing assets to net advances stood at 0.48% as on 30 June 2015, higher than 0.44% each as on 31 March 2015 and 30 June 2014.

The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 14.5% as on 30 June 2015, compared with 15.09% as on 31 March 2015 and 15.53% as on 30 June 2014.

Capital goods stocks dropped. BEML (down 1.87%), Bharat Heavy Electricals (Bhel) (down 1.21%), L&T (down 1.38%), Thermax (down 0.58%), Crompton Greaves (down 4.77%) and Siemens (down 0.66%) declined.

ABB India lost 3.28% as the company's order intake fell 6.14% to Rs 1895 crore in Q2 June 2015 over Q2 June 2014.

ABB India's net profit rose 20.46% to Rs 57.45 crore on 6.03% increase in total income to Rs 1932.64 crore in Q2 June 2015 over Q2 June 2014. ABB India announced its Q2 June 2015 results during trading hours today, 24 July 2015.

ABB India's revenue rose 6.03% to Rs 1932 crore in Q2 June 2015. The company said the growth in revenue was on account of efficient execution and conversion of order backlog across divisions. ABB India said that over the years, the company's initiatives towards operational excellence have been yielding results, fortifying profit margins.

ABB's operational EBITDA jumped 17.29% to Rs 156 crore in Q2 June 2015 over Q2 June 2014. Operational EBITDA margins were reported at 8.1% in Q2 June 2015, higher than 7.3% in Q2 June 2014.

Bazmi Husain, Managing Director, ABB India said that the company delivered a steady performance in a market where investments are still to gather momentum.

Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 23 July 2015, that the Southwest Monsoon has been vigorous over Saurashtra, Kutch & Diu and active over Gangetic West Bengal, Odisha, Jharkhand, Gujarat region, Vidarbha and Chhattisgarh during past 24 hours ending until 8:30 IST.

For the country as a whole, cumulative rainfall during this year's monsoon season was 7% below the Long Period Average (LPA) until 23 July 2015. Region wise, the rainfall was 13% below the LPA in South Peninsula, 12% below the LPA in Central India, 6% below the LPA in East & Northeast India and 6% above the LPA in Northwest India until 23 July 2015.

The quantum of and the spatial distribution of rainfall this month holds key; July accounts for about 33% of precipitation during the June-September monsoon season and is critical for crops. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.

Meanwhile, the India Meteorological Department (IMD) said in its weekly monsoon report issued yesterday, 23 July 2015, that the rainfall was below normal by 12% over the country as a whole during the period from 16 July 2015 to 22 July 2015. Region wise, the rainfall was 20% below the Long Period Average (LPA) in Northwest India, 12% below the LPA in Central India, 11% below the LPA in South Peninsula and 3% below the LPA in East & Northeast India during that period.

The IMD expects rainfall to be above normal over northwest & central parts of the country on many days during the period from 23 July 2015 to 29 July 2015. Near normal rainfall is likely over eastern & northeastern parts of the country during 23 to 29 July 2015. Rainfall is likely to be below normal over interior peninsula till 4 August 2015, as per IMD's Extended Range Forecast.

Meanwhile, the Ministry of Water Resources said today, 24 July 2015, that water storage available in 91 important reservoirs of the country as on 16 July 2015 was 58.96 billion cubic metres (BCM) which is 37% of total storage capacity of these reservoirs. This storage is 115% of the storage of corresponding period of last year and 108% of storage of average of last ten years. The present storage position during current year is better than the storage position of last year and is also better than the storage of average of last ten years. The total storage capacity of these 91 reservoirs is 157.799 BCM which is about 62% of the total storage capacity of 253.388 BCM which is estimated to have been created in the country.

In overseas markets, European stocks edged higher today, 24 July 2015 following further evidence of a modest recovery in the eurozone economy. Key indices in France, Germany and UK rose 0.04% to 0.44%.

Preliminary figures today, 24 July 2015 showed the pace of eurozone business activity growth slowed marginally in July, but output remained close to four-year highs despite the ongoing Greek crisis. The Markit Flash Eurozone Purchasing Managers Index was 53.7 in July, down from 54.2 in June. A reading above 50 indicates expansion.

Greece yesterday, 23 July 2015 reportedly moved another step closer to receiving its third bailout package, after the country's parliament approved a second set of economic overhauls required by lenders. The legislative approval is a precondition by the Greece's international creditors for starting official negotiations on the 86-billion-euro ($94.51 billion) aid program, aimed at helping the country stave off a debt default and get back on an economic-growth track.

Meanwhile, officials from the lender institutions the European Commission, the European Central Bank and the International Monetary Fund (formerly known as the Troika) will be in Athens today, 24 July 2015 to open detailed discussions with the Greek government.

Asian stocks edged lower today, 24 July 2015 after a survey of Chinese manufacturing activity was weaker than expected, while US jobs data underpinned the dollar as it bolstered bets that the US Federal Reserve is on track to hike interest rates later this year. Key benchmark indices in Singapore, Taiwan, Japan, Indonesia and South Korea fell by 0.11% to 0.94%.

In Mainland China, the Shanghai Composite index reversed gains, falling 1.29%. Hong Kong's Hang Seng index dropped 1.06%.

China's factory sector contracted by the most in 15 months in July as shrinking orders depressed output, a preliminary private survey showed today, 24 July 2015. The flash Caixin/Markit China Manufacturing Purchasing Managers' Index (PMI) dropped to 48.2, the lowest reading since April last year. It was the fifth straight month below 50, the level which separates contraction from expansion. June's final reading was 49.4. China's Caixin Media Co is publishing the PMI for the first time this month after replacing HSBC as the sponsor of the survey.

The flash Markit/Nikkei Japan Manufacturing Purchasing Managers Index (PMI) rose to a seasonally adjusted 51.4 in July from a final 50.1 in June, suggesting economic growth is picking up after an expected slump in the second quarter.

US equities edged lower for the third consecutive session yesterday, 23 July 2015 as weak earnings from industrial bellwethers weighed on the market.

In US economic data, the weekly employment data yesterday, 23 July 2015 showed that initial jobless claims declined 26,000 to a seasonally-adjusted 255,000, the lowest since November 1973.

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First Published: Jul 24 2015 | 3:32 PM IST

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