A disappointment from the Japanese central bank, which held off from expanding monetary stimulus, pulled global stocks lower, with Indian stocks witnessing a sharp slide. The barometer index, the S&P BSE Sensex, fell 482.34 points or 1.85% to 25,581.78, as per the provisional closing data. The losses for the Sensex were higher in percentage terms than those for the Nifty 50 index. The Nifty fell 132.65 points or 1.66% to 7,847.25, as per the provisional closing data. World stocks fell after the Bank of Japan left its main policies unchanged after the conclusion of a two-day monetary policy meeting, disappointing market expectations the central bank would take further extraordinary steps to stimulate Japan's economy.
Stocks of public sector firms, metal and auto companies and index heavyweights Infosys, ITC, HDFC, Reliance Industries, HDFC Bank led losses for key benchmark indices.
The Sensex fell 502.95 points, or 1.93% at the day's low of 25,561.17 in late trade, its lowest level since 26 April 2016. The barometer index rose 36.42 points, or 0.14% at the day's high of 26,100.54 in early trade, its highest intraday level since 4 January 2016. The Nifty fell 145.45 points, or 1.82% at the day's low of 7,834.45 in late trade, its lowest level since 26 April 2016. The index rose 12.10 points, or 0.15% at the day's high of 7,992 in morning trade, its highest level since 6 November 2015.
The broad market depicted weakness. There were almost two losers against every gainer on BSE. 1,677 shares fell and 847 shares rose. A total of 172 shares were unchanged. The BSE Mid-Cap index provisionally fell 0.78%. The BSE Small-Cap index provisionally fell 1.05%. The decline in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 2856 crore, higher than turnover of Rs 2500.07 crore registered during the previous trading session.
In overseas stock markets, Asian and European stocks edged lower after the Bank of Japan unexpectedly held off from expanding monetary stimulus. Japanese stocks led losses for Asian equities. The Nikkei 225 Average ended 3.61% lower. The Bank of Japan (BOJ) voted to keep its current level of asset purchases unchanged and rates on hold while announcing a 300 billion ($2.69 billion) lending program to support banks in the region hit by this month's Kyushu earthquake. Speculation was rise that the Japanese the central bank would announce a further easing of the monetary policy to stimulate Japan's economy.
Trading in US index futures indicated that the Dow Jones Industrial Average could fall 141 points at the opening bell today, 28 April 2016. US stocks closed mostly higher yesterday, 27 April 2016, but the gains were checked by weakness in the technology sector. Meanwhile, the Federal Reserve left interest rates unchanged after the conclusion of a two-day monetary policy meeting yesterday, 27 April 2016. The Fed's signal that it was in no rush to raise rates relieved investors. The stance of monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2% inflation, according to the Fed in its monetary policy statement. The US central bank's mandate centers on maximizing employment and keeping inflation at a 2% target level, which is considered a healthy level of price increases.
Cement major ACC rose 1.30% to Rs 1,448. The company's consolidated net profit dropped 4.05% to Rs 226.95 crore on 1.45% rise in net sales to Rs 2927.38 crore in Q1 March 2016 over Q1 March 2015. Operating earnings before interest, tax, depreciation and amortization (EBITDA) dropped 28.85% to Rs 433.59 crore in Q1 March 2016 over Q1 March 2015. EBITDA dropped in Q1 March 2016 due to higher operating EBITDA in Q1 March 2015 as it included an accrual of Rs 139.74 crore pursuant to a favourable order from the Jharkhand High Court pertaining to sales tax incentives for earlier years. ACC's other operating income declined 67.52% to Rs 63.22 crore in Q1 March 2016 over Q1 March 2015. Other operating income in Q1 March 2015 includes Rs 139.74 crore being accrual of sales tax incentives pertaining to the period August 2005 to March 2015.
Bharti Airtel fell 0.51% to Rs 371.25. The company's consolidated net profit rose 2.78% to Rs 1290.30 crore on 8.43% rise in total income to Rs 24983.10 crore in Q4 March 2016 over Q4 March 2015. The result as per the International Financial Reporting Standards (IFRS) was announced after market hours yesterday, 27 April 2016.
More From This Section
Bharti Airtel's consolidated earnings before interest, tax, depreciation and amortization (EBITDA) rose 14.1% to Rs 9188 crore in Q4 March 2016 over Q4 March 2015. The EBITDA margin increased to 36.8% in Q4 March 2016 from 35% in Q4 March 2015. Stable currencies in most of the geographies resulted in lower forex and derivative losses of Rs 190 crore in Q4 March 2016 compared to Rs 1081 crore in Q4 March 2015. Bharti Airtel's bottom line during the quarter was impacted due to higher exceptional expenses. There were exceptional expenses of Rs 300 crore in Q4 March 2016, higher than exceptional expense of Rs 146.90 crore in Q4 March 2015. Exceptional items during Q4 March 2016 comprises of charge of Rs 10.70 crore pertaining to the divestment of telecom tower assets, charge of Rs 100.30 crore towards operating costs on network refarming and upgradation program. There was a charge of Rs 76.60 crore towards restructuring activities in a few countries and other regulatory costs. A charge of Rs 112.40 crore was incurred on account of termination of a long-term contract.
Bharti Airtel's board of directors approved the proposal to buyback the shares on a proportionate basis through a tender offer. The buy back shall be up to an aggregate amount not exceeding Rs 1434 crore at a price of Rs 400 per share translating into approximately 3.58 crore shares, representing 0.9% of the total paid up equity share capital of the company.
HCL Technologies lost 4.38% to Rs 801 after results for the quarter ended 31 March 2016 fell below market expectations. Consolidated net profit rose 0.3% to Rs 1926 crore on 3.4% growth in revenue to Rs 10698 crore in the quarter ended 31 March 2016 over the quarter ended 31 December 2015. The result was announced before market hours today, 28 April 2016. HCL Technologies' (HCL Tech) revenue in constant currency terms rose 1.7% on sequential basis in the quarter ended 31 March 2016. In dollar terms, HCL Tech's net profit declined 2% to $285 million on 1.3% growth in revenue to $1,587 million in the quarter ended 31 March 2016 over the quarter ended 31 December 2015. HCL Tech has changed its accounting year to the period from 1 April to 31 March from earlier 1 July to 30 June.
Most metal shares edged lower. Hindalco Industries (down 4.96%), Vedanta (down 4.1%), NMDC (down 3.8%), Jindal Steel & Power (down 2.86%), National Aluminium Company (down 2.85%), Tata Steel (down 2.24%), Hindustan Copper (down 1.88%), Bhushan Steel (down 0.84%) and Hindustan Zinc (down 0.55%), edged lower. JSW Steel (up 0.56%) and Steel Authority of India (up 2.18%), edged higher.
Copper prices edged lower in the global commodities markets. High Grade Copper for July 2016 delivery was currently down 0.43% at $2.215 per pound on the COMEX.
Powered by Capital Market - Live News