Volatility continued as key benchmark indices trimmed intraday gains in afternoon trade after hitting fresh intraday high in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 33.64 points or 0.13%, off about 85 points from the day's high and up close to 150 points from the day's low. The market breadth, indicating the overall health of the market, was negative.
Most pharma stocks declined. Tata Consultancy Services (TCS) surged after the company after trading hours on Thursday, 17 July 2014, reported good Q1 June 2014 result. Realty stocks also declined.
The sentiment was positive after provisional data showed that foreign investors made substantial purchases of Indian stocks on Thursday, 17 July 2014. Foreign portfolio investors (FPIs) bought shares worth a net Rs 1912.42 crore on Thursday, 17 July 2014, as per provisional data from the stock exchanges.
At 13:20 IST, the S&P BSE Sensex was up 33.64 points or 0.13% to 25,594.80. The index gained 117.61 points at the day's high of 25,678.77 in early afternoon trade, its highest level since 10 July 2014. The index fell 119.92 points at the day's low of 25,441.24 in morning trade, its lowest level since 16 July 2014.
The CNX Nifty was up 8.70 points or 0.11% to 7,649.15. The index hit a high of 7,673.85 in intraday trade, its highest level since 10 July 2014. The index hit a low of 7,595.50 in intraday trade, its lowest level since 16 July 2014.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,400 shares declined and 1,256 shares rose. A total of 91 shares were unchanged.
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The BSE Mid-Cap index fell 45.50 points or 0.49% to 9,246.19. The BSE Small-Cap index dropped 13.80 points or 0.14% to 10,179.32. Both these indices underperformed the Sensex.
Among the 30-share Sensex pack, 18 stocks declined and rest of them gained.
Wipro (up 2.74%), ICICI Bank (up 1.16%) and Hero MotoCorp (up 0.78%) edged higher from the Sensex pack.
Most pharma stocks declined. Lupin (down 0.28%), Ranbaxy Laboratories (down 0.82%) and Sun Pharmaceutical Industries (down 0.28%) edged lower.
Cipla rose 1.02%. Cipla after market hours on Thursday, 17 July 2014 said that its wholly owned subsidiary -- Meditab Specialities (MSPL) -- has raised its stake in Mabpharm to 100% after acquiring additional 75% stake. Mabpharm is inter alia engaged in development of monoclonal anitbodies for treatment of cancer and auto-immune diseases. Cipla did not disclose the consideration paid for acquisition of the additional 75% stake.
Dr Reddy's Laboratories rose 0.16%.
Realty stocks also declined. DLF (down 1.31%), Housing Development & Infrastructure (HDIL) (down 2.4%), Sobha Developers (down 1.75%) and Unitech (down 1.62%) declined.
TCS surged 3.4%. TCS after trading hours on Thursday, 17 July 2014, reported 3.9% growth in consolidated net profit to Rs 5568 crore on 2.6% growth in revenue to Rs 22111 crore in Q1 June 2014 over Q4 March 2014. The bottom line was boosted by an exceptional item viz. a write back of depreciation charge of Rs 489.75 crore (net) due to a change in deprecation policy. Operating profit dropped 6% to Rs 5935 crore in Q1 June 2014 over Q4 March 2014.
TCS said that the company added five new $50 million plus clients during the quarter. TCS Chief Executive Officer and Managing Director N Chandrasekaran said that the company has a strong demand pipeline in place. TCS Chief Financial Officer Rajesh Gopinathan said that the company's disciplined stance in operations helped it mitigate the impact of multiple headwinds like currency movements, accelerated depreciation norms and wage hikes during the quarter. He said that the company will continue to maintain operating margins in the desired band by operating efficiently.
The Securities and Exchange Board of India (Sebi) on Thursday, 17 July 2014 put out draft regulations for infrastructure investment trusts that were announced in Union Budget 2014-15 on 10 July 2014 to provide easier financing options to developers of public works. Such trusts will be able to invest in infrastructure projects only directly or through special purpose vehicles (SPVs), the market regulator said. For public-private partnership (PPP) projects, investments can be routed only through an SPV, Sebi said.
The Reserve Bank of India (RBI) on Thursday, 17 July 2014 issued draft guidelines for those seeking a license to set up a payments bank or a small bank. The minimum paid up capital required for both categories of bank licenses would be Rs 100 crore of which the promoter would have to contribute at least 40% initially, the RBI said. Payments banks can accept deposits and remittances of funds but cannot provide loans. Small banks can lend, but have more limited areas of operations than a full-fledged commercial lender. Both, payments banks and small banks are niche or differentiated banks with the common objective of furthering financial inclusion, the RBI said.
The entities eligible to set up a payments bank include existing non-bank Pre-paid Instrument Issuers (PPIs), Non-Banking Finance Companies (NBFCs), corporate BCs, mobile telephone companies, super-market chains, companies, real sector cooperatives, and public sector entities. The entities eligible to set up a small bank include resident individuals with ten years of experience in banking and finance, companies and societies, NBFCs, Micro Finance Institutions and Local Area Banks, the RBI said.
Volatility struck bourses in early trade as the key benchmark indices slipped in negative zone after reversing an initial decline triggered by negative Asian stocks. Key benchmark indices cut losses after hitting fresh intraday low in morning trade. Key benchmark indices extended recovery in mid-morning trade and hovered near the flat line. Key benchmark indices reversed intraday fall and hit fresh intraday high in early afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both hit their highest level in over one week. Key benchmark indices trimmed intraday gains in afternoon trade.
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade. The partially convertible rupee was hovering at 60.305, compared with its close of 60.18 on Thursday, 17 July 2014.
European stocks edged lower today, 18 July 2014, tracking weak Asian stocks and Russian markets plunged after a Malaysian airliner was shot down over Ukraine and Israeli troops moved into Gaza. Key benchmark indices in France, Germany and UK shed 0.39% to 0.51%.
Asian stocks edged lower today, 18 July 2014, on rising geopolitical tension after news on Thursday, 17 July 2014 of a downed Malaysian airlines jet at the Ukraine-Russia border. Key benchmark indices in Hong Kong, Taiwan, Singapore, Japan and South Korea fell by 0.07% to 1.01%. Key benchmark indices in China and Indonesia rose 0.1% to 0.37%.
Trading in US index futures indicated that the Dow could fall 20 points at the opening bell on Friday, 18 July 2014. US markets dropped on Thursday, 17 July 2014 on the news that a Malaysian Airlines passenger jet had crashed near the Ukraine-Russia border.
Geopolitical tensions escalated after Boeing Co. 777 crashed en route to Kuala Lumpur from Amsterdam in the main battleground of Ukraine's civil war, threatening to escalate tensions in Europe's worst geopolitical crisis since the end of the cold war.
Meanwhile, Russian President Vladimir Putin said Ukraine's government bore responsibility for the crash because it wouldn't have occurred without the current strife. Putin has repeatedly denied Russian involvement in the fighting in Ukraine's east, which erupted in the wake of former president Viktor Yanukovych's ouster earlier this year.
Meanwhile, Israel's movement of troops and tanks into the coastal enclave marks the first significant ground operation in Gaza since 2009.
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