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Market provisionally ends near the flat line

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Capital Market
Last Updated : Apr 21 2016 | 5:49 PM IST

Losses for IT, auto, cement stocks and index heavyweight ITC outweighed gains for stocks of public sector banks and index heavyweight HDFC, with key benchmark indices provisionally registering marginal losses. The barometer index, the S&P BSE Sensex, fell 17.16 points or 0.07% at 25,827.02, as per the provisional closing data. The Nifty 50 index fell 2.70 points or 0.03% at 7,912.05, as per the provisional closing data. The Sensex provisionally settled below the psychologically important 26,000 mark. The index had surpassed the psychologically important mark in early trade on the back of higher Asian stocks.

After hovering in green for most part of the trading session, key benchmark indices reversed direction amid volatility in late trade. The Sensex lost 61.06 points or 0.23% at the day's low of 25,783.12 in late trade. The barometer index gained 235.89 points or 0.91% at the day's high of 26,080.07 in morning trade, its highest level since 4 January 2016. The Nifty fell 30.65 points or 0.38% at the day's low of 7,884.10 in late trade. The index rose 63.70 points or 0.8% at the day's high of 7,978.45 in morning trade, its highest level since 2 December 2015.

The market breadth indicating the overall health of the market was negative. On BSE, 1,500 shares declined and 1,075 shares rose. A total of 156 shares were unchanged. The BSE Mid-Cap index was provisionally off 0.5%. The BSE Small-Cap index was provisionally off 0.52%. Both these indices underperformed the Sensex.

The total turnover on BSE amounted to Rs 2798 crore, higher than turnover of Rs 2706.85 crore registered during the previous trading session.

In overseas stock markets, European stocks edged lower on caution ahead of monetary policy meeting from the European Central Bank (ECB). The ECB is widely expected to leave monetary policy unchanged after a monetary policy review later in the global day today, 21 April 2016. The ECB is likely to emphasis that it will do everything it can to bring inflation back to target and support economic recovery in the euro zone.

In Asia, Japan and Hong Kong markets led gains. Japanese stocks rose as the yen weakened against the dollar overnight. The Nikkei 225 index settled 2.7% higher. Exporters benefit from a weak currency, which makes their products more competitive overseas. Chinese stocks ended on a mixed note after the nation's central bank announced net cash injection of 220 billion yuan into the financial system in its bid to ease worries about a short-term liquidity squeeze. In mainland China, the Shanghai Composite index settled 0.65% lower. In Hong Kong, the Hang Seng index settled 1.82% higher. US stocks clocked small gains yesterday, 20 April 2016, after upbeat housing data.

IT stocks declined. Oracle Financial Services Software (down 1.22%), Tech Mahindra (down 1.7%), Hexaware Technologies (down 0.68%) and MphasiS (down 1.77%) declined. HCL Technologies rose 0.28%.

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Wipro tumbled after the company reported weak Q4 results and issued muted guidance for Q1 June 2016. The stock lost 7.3%. Wipro's consolidated net profit fell 2% to Rs 2240 crore on 12% rise in gross revenue to Rs 13630 crore in Q4 March 2016 over Q4 March 2015. The results are as per International Financial Reporting Standards (IFRS). The result was announced after market hours yesterday, 20 April 2016.

Revenue from IT services business rose 2.4% to $1,882 million in Q4 March 2016 over Q3 December 2015. On sequential basis, the company expects 1% to 3.02% growth in revenue from IT services business at between $1,901 million to $1,939 million in Q1 June 2016. On an annualized basis, the employee attrition rate dropped to 14.9% in Q4 March 2016 from 16.3% in Q3 December 2015.

Wipro's board of directors approved a proposal to buyback up to 4 crore equity shares of the company for an aggregate amount of up to Rs 2500 crore, being 1.62% of the total paid up equity share capital. The buyback will be through the tender offer route at Rs 625 per share. The promoters of the company have indicated their intention to participate in the proposed buyback.

TCS fell 1.43%. TCS announced the release of a new TCS Intelligent Urban Exchange (IUX) application for Intelligent Water. The new urban analytics application offers pre-built 'use cases' to cost-effectively reduce Non Revenue Water (NRW) loss and ensure delivery of safe, reliable water. The application leverages IUX's scalable analytics platform to allow cities and partners to easily integrate and localize, in order to accelerate the deployment of smart city solutions and enable a future-ready infrastructure for cross domain urban solutions. The announcement was made after market hours yesterday, 20 April 2016.

Index heavyweight and software major Infosys declined 1.63% to Rs 1,223. The stock hit high of Rs 1,250 and low of Rs 1,219 so far during the day.

Index heavyweight and cigarette major ITC lost 1.7% to Rs 329.30. The stock hit a high of Rs 336.60 and low of Rs 327.50 in intraday trade.

IndusInd Bank lost 1.46% as sticky loans rose in Q4 March 2016. The bank's net profit rose 25.25% to Rs 620.35 crore on 23.38% growth in total income to Rs 4044.49 crore in Q4 March 2016 over Q4 March 2015. The bank's provisions and contingencies jumped 98.86% to Rs 213.66 crore in Q4 March 2016 over Q4 March 2015. The result was announced during market hours today, 21 April 2016. IndusInd Bank's gross non-performing assets increased to Rs 776.82 crore as on 31 March 2016, from Rs 681.13 crore as on 31 December 2015 and Rs 562.92 crore as on 31 March 2015. The bank's ratio of gross non-performing assets (NPA) to gross advances stood at 0.87% as on 31 March 2016 as against 0.82% as on 31 December 2015 and 0.81% as on 31 March 2015. The bank's ratio of net NPA to net advances stood at 0.36% as on 31 March 2016 as against 0.33% as on 31 December 2015 and 0.31% as on 31 March 2015.

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First Published: Apr 21 2016 | 3:34 PM IST

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