A range-bound movement was witnessed as key benchmark indices languished in negative zone in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was currently hovering below the psychological 28,000 level, having alternately moved above and below that level in intraday trade so far. Earlier, the Sensex had fallen below the psychological 28,000 level in early trade. The Sensex was currently off 168.94 points or 0.6% at 27,898.37. The market breadth indicating the overall health of the market once again turned negative from positive in mid-afternoon trade.
Shares of upstream oil exploration and production (E&P) firms edged lower as global crude oil prices fell. FMCG stocks were mixed. Pharma stocks also depicted a mixed trend.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 403.76 crore during the previous trading session on Friday, 14 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 179.20 crore on Friday, 14 August 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged higher after eurozone finance ministers on Friday, 14 August 2015, approved Greece's bailout deal, marking an end to more than six months of turbulent negotiations. Asian stocks edged lower. US stocks closed higher during the previous trading session on Friday, 14 August 2015, after a string of upbeat economic reports.
At 14:17 IST, the S&P BSE Sensex was down 168.94 points or 0.6% at 27,898.37. The index fell 328.18 points at the day's low of 27,739.13 in early trade. The index rose 28.66 points at the day's high of 28,095.97 at the onset of the trading session.
The CNX Nifty was down 37.20 points or 0.44% at 8,481.35. The index hit a low of 8,428.05 in intraday trade. The index hit a high of 8,530.60 in intraday trade, its highest level since 11 August 2015.
More From This Section
The BSE Mid-Cap index was up 30.12 points or 0.26% at 11,483.90. The BSE Small-Cap index was up 27.10 points or 0.23% at 11,793.88. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market once again turned negative from positive in mid-afternoon trade. On BSE, 1,372 shares declined and 1,334 shares rose. A total of 118 shares were unchanged.
Pharma stocks were mixed. GlaxoSmithkline Pharmaceuticals (down 1.19%), Dr Reddy's Laboratories (down 1.64%), Wockhardt (down 1.07%) and Glenmark Pharmaceuticals (down 0.36%) edged lower. Lupin (up 0.3%), Sun Pharmaceutical Industries (up 1.01%), Strides Arcolab (up 1.04%), Ipca Laboratories (up 0.33%) and Divi's Laboratories (up 0.06%) edged higher.
Cipla was off 4.58% at Rs 706.55. The stock hit a high of Rs 748 and a low of Rs 703.20 so far during the day. Cipla's consolidated net profit surged 120.9% to Rs 650.61 crore on 41.3% rise in total income to Rs 3901.70 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours on Friday, 14 August 2015.
Cipla's income from operations jumped 41.6% to Rs 3853 crore in Q1 June 2015 over Q1 June 2014. The sharp surge in Cipla's revenue in Q1 June 2015 was due to one-off revenue from the US market. Cipla said that all business units witnessed strong growth in Q1 June 2015. Cipla's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 91.8% to Rs 1039 crore in Q1 June 2015 over Q1 June 2014.
In domestic business, Cipla's sales rose 8.4% to Rs 1397 crore in Q1 June 2015 over Q1 June 2014. The growth in domestic sales was largely on account of growth in Respiratory, Anti-infectives, Cardiac and Gastro Intestinal therapies, Cipla said. Cipla's exports of formulations jumped 78.5% to Rs 2174 crore in Q1 June 2015 over Q1 June 2014. Exports of active pharmaceutical ingredient (API) increased surged 47% to Rs 206 crore in Q1 June 2015 over Q1 June 2014.
With regard to future business outlook, Cipla said that the management expects 20% top-line growth for the company for the current financial year. Cipla further said that the company is evaluating reinvestment options in R&D, consumer healthcare and biologics.
FMCG stocks were mixed. Jyothy Laboratories (down 3.06%), Nestle India (down 2.16%), Britannia Industries (down 1.43%), Procter & Gamble Hygiene and Health Care (down 1.15%), GlaxoSmithkline Consumer Healthcare (down 0.5%), Tata Global Beverages (down 0.83%) and Colgate-Palmolive (India) (down 0.19%) edged lower. Dabur India (up 2.91%), Marico (up 1.46%), Bajaj Corp (up 0.57%), Godrej Conumer Products (up 0.46%) and Hindustan Unilever (up 0.19%) edged higher.
Shares of upstream oil exploration and production (E&P) firms edged lower as global crude oil prices fell. Cairn India (down 0.58%), Reliance Industries (down 1.7%) and ONGC (down 2.22%) edged lower. Oil India (up 0.24%) edged higher. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms.
In the global commodities markets, Brent for October settlement was currently off 56 cents at $48.63 a barrel. The contract had fallen 44 cents or 0.88% to settle at $49.19 a barrel during the previous trading session.
India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports.
In the foreign exchange market, the partially convertible rupee was currently hovering at 65.2575 against the dollar, compared with its close of 65.01 during the previous trading session on Friday, 14 August 2015.
Meanwhile, investors continue to watch the progress of the monsoon rains which will have a bearing on food prices and rural income. India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 16 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 10% below the Long Period Average (LPA) until 16 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 13% below the LPA in East & Northeast India, 9% below the LPA in Central India and 1% above the LPA in Northwest India until 16 August 2015.
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.
In overseas markets, European stocks edged higher today, 17 August 2015, after eurozone finance ministers on Friday, 14 August 2015, approved Greece's bailout deal, marking an end to more than six months of turbulent negotiations. Key indices in France, Germany and UK were up 0.04% to 0.44%.
In Greece, the Athex Composite Share Price Index was up 0.53%. Eurozone finance ministers on Friday, 14 August 2015, cleared 86 billion euros ($95.22 billion) in new bailout loans for Greece, helping the debt-laden country stave off bankruptcy. The money will come in several installments, with the first tranche of money expected to be made by 20 August 2015, when Athens must repay euro 3.2 billion to the European Central Bank.
Several national parliaments in Europe will now have to vote to back Greece's bailout deal.
Asian stocks edged lower today, 17 August 2015. Key indices in Hong Kong, Taiwan, Singapore, and South Korea were off 0.74% to 1.11%. Key indices in China and Japan were up 0.49% to 0.73%. Indonesian stock market was shut due to holiday.
Japan's economy contracted in the April-June quarter, but managed to perform slightly better than expected, data released today, 17 August 2015 showed. Gross domestic product (GDP) shrank 1.6% on an annualized basis in the April-June quarter.
US stocks closed higher during the previous trading session on Friday, 14 August 2015, after a string of upbeat economic reports.
Powered by Capital Market - Live News