Key benchmark indices hovered in negative terrain in morning trade after a weak start triggered by lower Asian stocks and a sharp fall for US stocks on Thursday, 31 July 2014. The barometer index, the S&P BSE Sensex, was down 132.79 points or 0.51% at 25,762.18. The market sentiment was hit adversely after provisional data showed that foreign investors made heavy selling during the previous trading session. The market breadth indicating the overall health of the market was negative. DLF dropped in volatile trade after the company's weak Q1 results. Shares of other realty companies also declined after DLF's weak Q1 results. Castrol India dropped on weak Q1 results.
At 10:20 IST, the S&P BSE Sensex was down 132.79 points or 0.51% to 25,762.18. The index slumped 215.51 points at the day's low of 25,679.46 in early trade, its lowest level since 21 July 2014. The index declined 121.69 points at the day's high of 25,773.28 in morning trade.
The CNX Nifty was down 44.10 points or 0.57% to 7,677.20. The index hit a low of 7,649.75 in intraday trade, its lowest level since 18 July 2014. The index hit a high of 7,679.60 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,060 shares fell and 727 shares rose. A total of 71 shares were unchanged.
The BSE Mid-Cap index was down 31.45 points or 0.34% at 9,156.74. The BSE Small-Cap index was down 11.95 points or 0.12% at 9.977.47. Both these indices outperformed the Sensex.
NTPC (down 2.41%), Mahindra & Mahindra (M&M) (down 2.16%) and GAIL (India) (down 2.03%) edged lower from the Sensex pack.
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DLF declined 1.44% to Rs 195.55 on weak Q1 results. The stock hit high of Rs 195.65 and low of Rs 190.20 so far during the day. The company's consolidated net profit fell 29.48% to Rs 127.77 crore on 24.52% fall in total income to Rs 1851.60 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Thursday, 31 July 2014.
EBITDA (earnings before interest, taxes, depreciation and amortization) fell 18% to Rs 863 crore in Q1 June 2014 over Q1 June 2013.
DLF said that a slew of favourable measures for the realty sector in the Union Budget 2014-15 such as additional tax exemptions for consumers, categorization of affordable housing an infrastructure status and tax benefits to the REITs will go a long way in revival of the realty sector industry. The company said it expects the market conditions to be challenging and demanding in the short term. DLF believes that while the slowdown for the realty sector is bottoming out, it will take a couple of quarters for the ground situation to improve.
DLF said it remains committed to its medium term strategy of continuing with its execution run rate, thereby creating more stock which can result in better and faster realizations as the cycle turns. Additionally, the company will continue to invest to improve the quality of land through payment of government charges and infrastructural improvements. The company also remains focused to improve the quality and pricing of debt through instruments such as CMBSs, DLF said.
Shares of other realty companies declined after DLF reported weak Q1 results. D B Realty (down 1.53%), Sobha Developers (down 1.51%) and Unitech (down 1.15%) declined.
Castrol India lost 2.44% on weak Q1 results. The company's net profit fell 19.01% to Rs 124.40 crore on 4.82% increase in total income to Rs 923.90 crore in Q2 June 2014 over Q2 June 2013. The result was announced after market hours on Thursday, 31 July 2014.
The market sentiment was hit adversely after provisional data showed that foreign investors made heavy selling during the previous trading session. Foreign portfolio investors (FPIs) sold shares worth a net Rs 1654.86 crore on Thursday, 31 July 2014, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.8325, compared with its close of 60.54 on Thursday, 31 July 2014.
Markit Economics will unveil the results of a monthly survey on India's manufacturing sector for July 2014 today, 1 August 2014. The seasonally adjusted HSBC India Purchasing Managers' Index (PMI) rose marginally to 51.5 in June from 51.4 in May.
The index of the eight core industries rose 7.3% in June 2014 over June 2013, data released by the government after trading hours on Thursday, 31 July 2014, showed. The eight core industries have a combined weight of 37.9% in the Index of Industrial Production (IIP).
The fiscal deficit for the first quarter of the fiscal year ending 31 March 2015 (FY 2015) was at Rs 297859 crore, which amounted to 56.1% of the budget estimates. The month of June 2014 saw a fiscal deficit of Rs 57022 crore, against a fiscal deficit of Rs 127383 crore in May 2014. The data was released after market hours on Thursday, 31 July 2014.
The World Trade Organization reportedly failed on Thursday to reach a deal to standardise customs rules, which would have been the first global trade reform in two decades but was blocked by India's demands for concessions on agricultural stockpiling. The deadline passed without a breakthrough. WTO ministers had already agreed the global reform of customs procedures known as "trade facilitation" last December, but it needed to be put into the WTO rule book by 31 July 2014.
Asian stocks dropped today, 1 August 2014, extending the biggest global rout in six months that saw the Dow Jones Industrial Average wipe out this year's gains in one session yesterday amid weaker earnings and credit-market concerns. Key benchmark indices in Hong Kong, Singapore, Japan, South Korea and Taiwan were off 0.17% to 0.88%.
China's Shanghai Composite rose 0.07%. China's manufacturing purchasing managers' index increased to 51.7 in July from 51 the previous month, according to data released today by the National Bureau of Statistics and China Federation of Logistics. A private gauge of factory activity from HSBC Holdings Plc and Markit Economics rose to 51.7 last month from 50.7 in June. Levels of 50 or higher signal expansion.
Developments in Latin America will be closely watched as Argentina missed a deadline yesterday to pay $539 million in interest after two full days of negotiations in New York failed to produce an accord with creditors.
S&P declaring Argentina in default melded with concern over Europe's debt position as Portugal's Banco Espirito Santo SA was told to raise capital. Banco Espirito Santo SA plunged by the most on record and the bonds slumped on Thursday, 31 July 2014, after the Portuguese lender was ordered to raise capital following a 3.6 billion euro ($4.8 billion) first-half net loss.
Trading in US index futures indicated that the Dow could gain 46 points at the opening bell on Friday, 1 August 2014. US stocks joined a global selloff on Thursday, 31 July 2104, erasing the year's gains for the Dow Jones Industrial Average, as Exxon Mobil Corp. to Micron Technology Inc. tumbled amid weaker corporate results.
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