A bout of volatility was witnessed in early trade as key benchmark indices trimmed gains after a positive start. The market breadth indicating the overall health of the market was negative. The barometer index, the S&P BSE Sensex, was currently down 175.36 points or 0.62% at 27,936.95.
Foreign portfolio investors bought shares worth a net Rs 6.62 crore on the previous trading session on Friday, 24 July 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 196.38 crore on the previous trading session on Friday, 24 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian shares edged lower today, 27 July 2015, as weak Chinese manufacturing accelerated the sell-off in oil and other commodities. Investors were also cautious ahead of the Federal Reserve's policy meeting later this week. US stocks tumbled Friday, 24 July 2015, as Wall Street suffered a fourth straight day of losses. The broader market slumped despite a 10% surge in Amazon.com shares on stronger-than-expected earnings.
At 9:21 IST, the S&P BSE Sensex was down 175.36 points or 0.62% at 27,936.95. The index rose 5.34 points at the day's high of 28,117.65 in opening trade. The index fell 198.59 points at the day's low of 27,913.72 at the onset of trading session.
The CNX Nifty was down 68.25 points or 0.80% at 8,453.30. The index hit a high of 8,492.20 in intraday trade. The index hit a low of 8,451.65 in intraday trade.
The BSE Mid-Cap index was down 56.21 points or 0.50% at 11,091.78. The BSE Small-Cap index was down 14.04 points or 0.12% at 11,654.08. The decline in both these indices was lower than the Sensex's decline in percentage terms.
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The market breadth indicating the overall health of the market was negative. On BSE, 698 shares fell and 555 shares rose. A total of 57 shares were unchanged.
Reliance Industries' (RIL) was down 0.60% at Rs 1,018.90. The company's consolidated net profit rose 4.44% to Rs 6222 crore on 25.93% decline in total income to Rs 78962 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours on Friday, 24 July 2015. Decline in revenue was led by the 43.5% decline in benchmark (Brent) oil price in Q1 June 2015 over Q1 June 2014.
Profit before depreciation, interest and tax (PBDIT) increased by 9.8% to Rs 12095 crore in Q1 June 2015 over Q1 June 2014. Profit Before Tax increased by 5.5% to Rs 8152 in Q1 June 2015 over Q1 June 2014. Cash Profit increased by 4.3% to Rs 9367 crore in Q1 June 2015 over Q1 June 2014.
Outstanding debt as on 30th June 2015 was Rs 170814 crore compared to Rs 160860 crore as on 31st March 2015. Cash and cash equivalents as on 30th June 2015 were at Rs 87,391 crore.
The company's gross refining margin (GRM) for crude refining rose to $10.40 per barrel in Q1 June 2015 from $10.1 per barrel in Q4 March 2015 and $8.70 per barrel in Q1 June 2014.
RIL said that strong gasoline cracks led by robust demand growth, lower energy cost and favourable crude differentials helped boost refining margins.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries said: The financial performance reflects the benefits of integrated hydrocarbon chain activities in a benign oil price environment. The sharp increase in demand for transportation fuels helped to realize strong refining margins. The petrochemicals business recorded a strong quarterly performance supported by high operating rates and margin strength in the ethylene chain. In retail business, the company has reached significant milestones over the past couple of years and continue the high growth trajectory for this business.
As the company look forward, it is committed to accelerating the growth of operating EBITDA. The company is leveraging the strength of integrated value chains to deliver sustainable growth. Large investments in petrochemicals and refining businesses are based on advantaged feedstocks to enable to stay among low-cost, competitive producers in an evolving hydrocarbon chain environment. The company maintained rapid progress in project construction activity at Jamnagar. The company's world-scale petcoke gasification project and ethylene cracker are on track for planned start-up in 2016. The company is also in the final lap of launch of Jio services which will bring about a positive transformation in the lives of millions of Indians.
Lupin was up 1.08% at Rs 1,690. The company announced that it has entered into a strategic asset purchase agreement with TEMMLER PHARMA GMBH & CO. KG (Temmler), a part of the Aenova Group, one of the world's largest pharmaceutical contract manufacturers, to acquire Temmler's specialty product portfolio subject to certain closing conditions. The company made announcement after market hours on Friday, 24 July 2015.
Based in Marburg (Germany), Temmler has a fast growing specialty portfolio of 13 products including key Central Nervous System (CNS) products and specialty products that address rare disease areas like Myasthenia Gravis, Huntington disease as well as fast-growing dermatology products for anti-wart treatment. Since Huntington disease has many symptoms ranging from motoric symptoms to personality changes, both Temmler and Hormosan products can be used to treat the disease.
With respect to news article titled "Lupin's Goa Unit Comes Under USFDA Scanner", Lupin clarified after market hours on Friday, 24 July 2015, that the observations have already been complied with and accordingly responded to the United States Food & Drug Administration (USFDA)
Tata Consultancy Services (TCS) was down 0.63% at 2,487.90. The company announced after market hours on Friday, 24 July 2015, a new global partnership with FICO, a leading analytics software company, to enable clients to purchase and implement FICO solutions through TCS. This alliance will accelerate the development of innovative decision centric applications, enable faster turnaround for implementation and increase user productivity for agile digital transformation programs.
TCS and FICO will develop a Center of Solutions Excellence (COSE) across TCS' global delivery centers to allow installation of FICO solutions provided to TCS. The COSE will provide an environment for training, application development, integration practices, delivery resources, testing, support, and maintenance.
This Global Strategic partnership will provide new opportunities including a vast set of capabilities in decision management centric technologies to offer process led digital transformation, rapid application development and customer experience excellence for the enterprise. Creating innovative customer and decision centric applications will enable agility in business management and digital transformation.
Power Finance Corporation (PFC) was down 1.16% at Rs 256.55. The Government of India acting through and represented by the Ministry of Power, Government of India, the promoter of Power Finance Corporation has made an offer for sale up to 6.60 crore shares, representing 5% of the total paid up equity share capital of Power Finance Corporation (through a sale on the separate window provided by stock exchanges for this purpose. The announcement was made after market hours on Friday, 24 July 2015. The offer shall take place during trading hours on a separate window of the stock exchanges and today, 27 July 2015 at 9:15 IST and shall close on the same day at 15:30 IST. The floor price of the offer is fixed at Rs 254 per share.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued on Sunday, 26 July 2015, that the Southwest Monsoon has been vigorous over Rajasthan and West Madhya Pradesh and active over Gangetic West Bengal, Odisha, Himachal Pradesh and Gujarat region during 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 5% below the Long Period Average (LPA) until 26 July 2015. Region wise, the southwest monsoon was 10% above the LPA in Northwest India, 6% below the LPA in East & Northeast India, 7% below the LPA in Central India and 15% below the LPA in South Peninsula until 26 July 2015.
The weekly data released by the Ministry of Agriculture after trading hours on Friday, 24 July 2015, showed a pick up in the sowing of Kharif crops. The total sown area for Kharif crops as on 24 July 2015 stood at 693.83 lakh hectares compared with 550.42 lakh hectares at this time last year. July is the crucial month for the sowing of Kharif crops.
Meanwhile, the Ministry of Water Resources announced in its weekly report issued after trading hours on Friday, 24 July 2015, that the Water storage available in 91 important reservoirs of the country as on 23 July 2015 was 58.596 BCM which is 37% of total storage capacity of these reservoirs. This storage is 115% of the storage of corresponding period of last year and 108% of storage of average of last ten years. The present storage position during current year is better than the storage position of last year and is also better than the storage of average of last ten years. States having better storage than last year for corresponding period are Himachal Pradesh, Punjab, Odisha, West Bengal, Tripura, Maharashtra, Uttar Pradesh, Uttarakhand, Madhya Pradesh, Karnataka, Kerala and Tamil Nadu. States having lesser storage than last year for corresponding period are Rajasthan, Jharkhand, Gujarat, Chhattisgarh, Andhra Pradesh and Telangana.
Asian shares edged lower today, 27 July 2015, as weak Chinese manufacturing accelerated the sell-off in oil and other commodities. Investors were also cautious ahead of the Federal Reserve's policy meeting later this week. Key benchmark indices in China, Hong Kong, Singapore, Indonesia, Japan, South Korea and Taiwan were down by 0.46% to 2.56%.
US stocks tumbled Friday, 24 July 2015, as Wall Street suffered a fourth straight day of losses. The broader market slumped despite a 10% surge in Amazon.com shares on stronger-than-expected earnings. Late Thursday, the e-commerce giant reported a surprise second-quarter profit instead of a loss. Its rally Friday lifted Amazon market capitalization above that of retailing titan Walmart (WMT) and Chinese e-commerce rival Alibaba (BABA).
Meanwhile, the Commerce Department said new home sales slipped 6.8% to 482,000 whilst May 2015 sales were also revised lower from 546,000 to 517,000.
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