Key benchmark indices could rise today, 21 May 2015. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could rise 16 points at the opening bell.
Foreign portfolio investors bought shares worth a net Rs 123.49 crore yesterday, 20 May 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 103.58 crore yesterday, 20 May 2015, as per provisional data released by the stock exchanges.
In the overseas market, Asian stocks were trading mostly lower. US stocks ended slightly lower yesterday, 20 May 2015, after the minutes from last month's Federal Reserve meeting showed officials were unlikely to raise interest rates in June amid a slowdown in economic growth.
Among corporate announcements, on a consolidated basis, Tata Steel posted net loss of Rs 5674.29 crore in Q4 March 2015 as compared to net profit of Rs 1035.87 crore in Q4 March 2014. The result was announced after market hours yesterday, 20 May 2015. Total income from operations (net) fell 20.65% to Rs 33666.18 crore in Q4 March 2015 over Q4 March 2014. Total exceptional expense surged to Rs 4811.20 crore in Q4 March 2015 from Rs 45.84 crore in Q4 March 2014. The exceptional expense included non-cash write down of goodwill and other assets in certain nonperforming business units with the group, primarily relating to European operations and the group's investments in coal assets.
Crompton Greaves said that the production at the Nasik factory of the company has been disrupted by a faction of employees of the unrecognised union by company, opposing the wage settlement reached by the management with the recognised union earlier this year in accordance with law and in terms of the specific order of the Industrial Court, Nasik, which had directed the management not to negotiate with any Trade Union on any issue other than Recognised Union. The company acted within the ambit of law and as per directions of the Industrial Court in engaging with the Recognised Trade Union, Crompton Greaves said. The action of the unrecognised union is in violation of the order of the Industrial Court, Nasik, based on its members undertaking, directing the workmen not to restrain or cause obstruction to the company and its officers and employees as well as maintain industrial law and order.
All the necessary measures have been undertaken to guarantee the safety of employees, who have chosen not to take part in the action against the company's assets, and assets of third parties in the company's premises, Crompton Greaves said. The company has always acted in the interest of the Workmen and within the framework of the Law and has urged the disruptive workmen to return to work. The management continues to work with the appropriate Authorities for ending the stalemate and normalise production, the company said. In the meanwhile the company has activated its contingency plans in line with business continuity management processes intended to ensure that there is minimum disruption of orders from customers, it added.
Shares of Yes Bank turn ex-dividend today, 21 May 2015 for final dividend of Rs 9 per share for the year ended 31 March 2015.
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On a consolidated basis, Bajaj Finserv's net profit slipped 0.07% to Rs 707.12 crore on 17.07% rise in total income to Rs 2406.65 crore in Q4 March 2015 over Q4 March 2014. The result was announced after market hours yesterday, 20 May 2015. Bajaj Finserv said that the company recorded its highest ever consolidated profit in Q4 March 2015.
Bajaj Finserv said that the conditions continue to be challenging for the financial sector as a whole. Under such circumstances, the strong growth delivered by Bajaj Finance and Bajaj Allianz General Insurance Company (BALIC) is a testimony to the resilience of the group as well as the quality of the management across these enterprises. BALIC, which faced challenges in coping with significant changes in market dynamics, has improved on its new businesses, Bajaj Finserv said.
Indian Oil Corporation will be watched. With respect to media reports titled "Indian Oil Corp to own 45% stake in Ennore LNG's Tamil Nadu terminal", Indian Oil Corporation after market hours today, 20 May 2015, clarified that as per the company's earlier clarification on 5 January 2015, the company's board at its meeting held in October 2014 had accorded approval for setting up a 5 million tonne LNG project at Ennore through a joint venture company. The cost of the project is estimated at Rs 5150 crore. The project would be implemented through a joint venture company and not directly by the company, Indian Oil Corporation said. Indian Oil Corporation will hold 45% equity stake, TIDCO (a Tamil Nadu state government enterprise) will own 5% stake and balance 50% will be held by financial institutions. Indian Oil Corporation clarified that no significant or material development has taken place with respect to this project after this clarification issued by the company on 5 January 2015.
IT stocks and index heavyweights HDFC, HDFC Bank and Reliance Industries (RIL) led modest gains for key benchmark indices. The S&P BSE Sensex rose 191.68 points or 0.69% to settle at 27,837.21, its highest closing level since 22 April 2015.
Asian stocks were trading mostly lower. Key benchmark indices in Hong Kong, Indonesia, Singapore, South Korea and Taiwan were down by 0.05% to 1.03%. Key benchmark indices in China and Japan were up by 0.46% to 0.77%.
US stocks ended slightly lower yesterday, 20 May 2015, after the minutes from last month's Federal Reserve meeting showed officials were unlikely to raise interest rates in June amid a slowdown in economic growth. Officials at the Fed's April policy meeting believed it would be premature to raise interest rates in June and that a bump in inflation was being offset by a weaker labour market and softer data, according to the minutes.
Also, first-quarter earnings season is drawing to a close, contributing to the muted action in the stock market.
Chicago Federal Reserve President Charles Evans reportedly said in Munich yesterday, 20 May 2015, that a hike in US interest rates is not likely to be appropriate until early 2016. Evans, who has long argued for a delay to rate hikes so as not to undermine economic recovery, said that the US central bank should not move on rates until there was greater confidence that its inflation goal could be hit within one or two years, according to reports. Evans is a voting member this year on Fed policy and among the most dovish of US central bankers.
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