A bout of volatility was witnessed as key benchmark indices hit fresh intraday low in early afternoon trade. The barometer index, the S&P BSE Sensex, was down 140.50 points or 0.53%, off about 170 points from the day's high and up close to 15 points from the day's low. The market breadth indicating the overall health of the market was weak. The BSE Mid-Cap index dropped almost 1%. The BSE Small-Cap index was off 1.47%. Indian stocks fell on concerns geopolitical tension in the Middle East and Ukraine could push oil prices higher.
Asian Paints, HDFC and Lupin hit record high. Capital goods stocks declined. Punjab National Bank (PNB) dropped after announcing Q1 result.
At 12:20 IST, the S&P BSE Sensex was down 140.50 points or 0.53% to 26,131.35. The index dropped 156.01 points at the day's low of 26,115.84 in early afternoon trade. The index rose 28.32 points at the day's high of 26,300.17 in early trade, a record high for the index.
The CNX Nifty was down 44.05 points or 0.56% to 7,786.55. The index hit a low of 7,781.60 in intraday trade. The index hit a high of 7,840.95 in intraday trade, a record high for the index.
The market breadth indicating the overall health of the market was weak, with more than two losers for every gainer on BSE. On BSE, 1,712 shares fell and 796 shares rose. A total of 95 shares were unchanged.
The BSE Mid-Cap index was down 88.82 points or 0.96% at 9,204.64. The BSE Small-Cap index was down 150.67 points or 1.47% at 10,078.66. Both these indices underperformed the Sensex.
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Wipro dropped after the company reported a muted 1.2% growth in IT services revenue on sequential basis in Q1 June 2014. The stock was off 5.31% at Rs 546.20. The stock hit high of Rs 554.95 and low of Rs 528 so far during the day. The company's consolidated net profit as per International Financial Reporting Standards (IFRS) jumped 30% to Rs 2100 crore on 14% growth in total revenue to Rs 11140 crore in Q1 June 2014 over Q1 June 2013. The result was announced after trading hours yesterday, 24 July 2014.
IT services revenue was $1.74 billion in Q1 June 2014, a sequential increase of 1.2% and year on year (YoY) increase of 9.6%. IT services revenues in rupee terms was Rs 10510 crore in Q1 June 2014, an increase of 18% YoY. IT services earnings before interest and tax (EBIT) was Rs 2400 crore in Q1 June 2014, an increase of 35% YoY. Non-GAAP constant currency IT services revenue in dollar terms was $1.725 billion in Q1 June 2014, which was within the company's guidance range of $1.715 billion to $1.755 billion. Wipro expects revenue from IT services business to be in the range of $1.77 billion to $1.81 billion in Q2 September 2014.
T K Kurien, Executive Director & Chief Executive Officer, Wipro, said that the company continues to win large deals, particularly in the application and infrastructure space. These wins demonstrate confidence of clients in Wipro's transformational capabilities, he said. Suresh Senapaty, Executive Director & Chief Financial Officer, Wipro said that Wipro's operating margins for Q1 June 2014 was on expected lines, impacted largely due to wage hikes.
Punjab National Bank (PNB) dropped 0.96% to Rs 919.75 after announcing Q1 result. The stock hit high of Rs 934.95 and low of Rs 907.80 so far during the day. The bank's net profit rose 10.17% to Rs 1405.12 crore in 9.18% rise in total income to Rs 12825.13 crore in Q1 June 2014 over Q1 June 2013. The result was announced during market hours.
Asian Paints rose 0.91% to Rs 624.05 after hitting record high of Rs 628.95 in intraday trade.
Lupin rose 1.91% to Rs 1,114.50 after hitting record high of Rs 1,118.20 in intraday trade.
HDFC gained 1.91% to Rs 1,055.35 after hitting record high of Rs 1,058.60 in intraday trade.
Capital goods stocks declined. Bharat Heavy Electricals (Bhel) (down 4.7%), ABB (India) (down 0.77%), L&T (down 0.86%), Siemens (down 1.32%) and Thermax (down 1.14%) declined.
Mahindra & Mahindra Financial Services tumbled 4.62% to Rs 238.35 after consolidated net profit declined 16% to Rs 170 crore on 18% growth in total income to Rs 1384 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced at the fag end of trading hours on Thursday, 24 July 2014. The stock had declined 2.51% to settle at Rs 249.90 on that day.
Mahindra & Mahindra Financial Services (MMFSL) said that Q1 June 2014 results were impacted by lower collection efficiency in April and May due to reduced number of effective working days. The announcement by the India Meteorological Department (IMD) of expected low monsoon also had negative impact, MMFSL said. The outlook for the year got a small boost with the month of June witnessing an improvement over the previous two months of the quarter, MMFSL added.
MMFSL's total assets under management (AUM) stood at Rs 34271 crore as on 30 June 2014 as against Rs 29539 crore as on 30 June 2013, a growth of 16%.
Bayer CropScience jumped 11.94% after net profit rose 23.6% to Rs 108.50 crore on 21.3% increase in net sales to Rs 1172.40 crore in Q1 June 2014 over Q1 June 2013. The company announced the result after market hours on Thursday, 24 July 2014.
The Sensex and the 50-ubit CNX Nifty, both, hit record high amid initial volatility. Key benchmark indices lost ground in morning trade. Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade. A bout of volatility was witnessed as key benchmark indices hit fresh intraday low in early afternoon trade.
Investors are keeping a close watch of crude oil prices amid fears geopolitical tension in the Middle East and Ukraine could push oil prices higher. India imports almost 80% of its crude oil requirements. Brent crude futures for September delivery were up 14 cents at $107.21 a barrel. The contract had closed 96 cents lower on Thursday, 24 July 2014.
The death toll in Gaza's fighting has continued to rise, with over 800 Palestinians and 33 Israelis killed since 8 July 2014, according to reports. At least 13 people were killed and more than 200 injured when a UN-run school used as a shelter came under fire in Gaza on Thursday, 24 July 2014, reports said. Israel launched its military offensive against Gaza on 8 July with the declared objective of stopping Hamas firing rockets into Israel.
Meanwhile, the US reportedly said on Thursday, 24 July 2014, that it has evidence that Russia has fired artillery across the border targeting Ukrainian military positions. Russia has frequently denied sending any rocket launchers into Ukraine. Russia is facing international pressure after Malaysia Airlines flight MH17 crashed in eastern Ukraine on 17 July, with pro-Russian rebels widely accused of shooting it down.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.135, compared with its close of 60.11 on Thursday, 24 July 2014.
The monsoon rains were reportedly 24% above average in the week ended July 23. The annual monsoon arrived over the southern Kerala coast on 6 June, and then covered the entire country on 17 July. Rains are vital to India's farm sector, which accounts for about 14% of the country's nearly $2 trillion economy. Two-thirds of its 1.2 billion population lives in rural areas.
Asian stocks rose in choppy trade today, 25 July 2014. Key benchmark indices in China, Hong Kong, Japan and South Korea were up by 0.14% to 1.13%. Key benchmark indices in Indonesia, Singapore and Taiwan were off 0.36% to 0.93%.
Trading in US index futures indicated that the Dow could fall 5 points at the opening bell on Friday, 25 July 2014. US stocks finished a quiet session mostly flat on Thursday, 24 July 2014, as earnings painted a mixed picture of the economy, though the S&P 500 index set another record closing high.
The number of Americans filing applications for unemployment benefits dropped last week to the lowest level in more than eight years, reflecting what could be a pickup in auto making during a typically slow time of year. Jobless claims fell by 19,000 to 284,000 in the week ended July 19, the fewest since February 2006 and lower than forecast, a Labor Department report showed in Washington.
Fewer US new homes than forecast were sold in June and data for the prior month was revised down by a record, painting a troubling picture of a market struggling to gain traction. Sales declined 8.1% to a 406,000 annualized pace, the fewest since March and lower than forecast, Commerce Department figures showed in Washington. That followed a May rate of 442,000.
The International Monetary Fund yesterday, 24 July 2014, lowered its outlook for global growth this year as expansion rates from China to the US weaken and military conflicts from Ukraine to the Middle East raise the risk of a surge in oil prices. The world economy will expand 3.4% in 2014, the IMF said, less than its 3.6% prediction in April and stronger than last year's 3.2%. Next year, growth will be 4% compared with an April forecast for 3.9%, the fund said.
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