Gains in bank stocks helped the barometer index, the S&P BSE Sensex, register small gains. On the other hand, the 50-unit CNX Nifty registered miniscule losses as shares of Tech Mahindra fell sharply after the company reported weak Q4 results after trading hours yesterday, 26 May 2015. Tech Mahindra, which is a Nifty constituent, is not a part of the Sensex. The Sensex garnered 33.25 points or 0.12% to settle at 27,564.66. The Nifty fell 4.75 points or 0.06% to settle at 8,334.60. With small losses for the day, the Nifty hit its lowest closing level in almost two weeks. The market breadth indicating the overall health of the market was negative.
Index heavyweight and software major Infosys edged lower. Another index heavyweight and cigarette major ITC edged higher. GAIL (India) declined after the company reported weak Q4 results. Tata Motors tumbled after the company reported weak Q4 March 2015 results after trading hours yesterday, 26 May 2015. Shares of public sector oil marketing companies (PSU OMCs) edged higher after overnight decline for global crude oil prices.
Indian stocks may remain volatile tomorrow, 28 May 2015, as traders roll over positions in the futures & options (F&O) segment from the near month May 2015 series to June 2015 series. The near month May 2015 F&O contracts expire tomorrow, 28 May 2015.
Foreign portfolio investors (FPIs) bought shares worth Rs 215.47 crore from the secondary equity market yesterday, 26 May 2015, as per data from Central Depository Services (India). Domestic institutional investors (DIIs) bought shares worth a net Rs 123.85 crore yesterday, 26 May 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged higher amid the easing of tensions around the Greek situation. Asian stocks were mixed. US stocks declined sharply yesterday, 26 May 2015, as a sharp increase in the dollar spurred global investors to dump riskier assets such as equities and commodities.
The S&P BSE Sensex rose 33.25 points or 0.12% to settle at 27,564.66, its highest closing level since 25 May 2015. The index rose 64.39 points at the day's high of 27,595.80 at the fag end of the trading session. The index lost 167.69 points at the day's low of 27,363.72 in early trade, its lowest level since 15 May 2015.
The Nifty fell 4.75 points or 0.06% to settle at 8,334.60, its lowest closing level since 15 May 2015. The index hit a low of 8,277.95 in intraday trade. The index hit a high of 8,342.85 in intraday trade.
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The BSE Mid-Cap index rose 6.51 points or 0.06% to settle at 10,616.47. The BSE Small-Cap index fell 3.24 points or 0.03% to settle at 11,162.62. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,435 shares fell and 1,196 shares rose. A total of 109 shares were unchanged.
The total turnover on BSE amounted to Rs 2547 crore, higher than turnover of Rs 2436.33 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Bankex (up 1.19%), the S&P BSE Oil & Gas index (up 0.97%), the S&P BSE Consumer Durables index (up 0.95%), the S&P BSE Capital Goods index (up 0.71%), the S&P BSE FMCG index (up 0.70%), the S&P BSE Power index (up 0.58%), the S&P BSE Realty index (up 0.31%) and the S&P BSE Metal index (up 0.27%), outperformed the Sensex. The S&P BSE Healthcare index (down 0.36%), the S&P BSE Teck index (down 1.42%), the S&P BSE IT index (down 1.88%) and the S&P BSE Auto index (down 2.11%) underperformed the Sensex.
Cipla rose 0.19% to Rs 660.45. Cipla announced during trading hours today, 27 May 2015, that the company has signed an agreement with Serum Institute of India (SII) -- a global leader in the production of vaccines -- to exclusively market flu vaccine Nasovac-S in India. Under this agreement, SII will develop and manufacture the vaccine and Cipla will exclusively market it in India. The vaccine will be manufactured at Serum's world class production facilities approved by the WHO, Cipla said in a statement.
Bank stocks edged higher on renewed buying. Among public sector banks, IDBI Bank (up 5.84%), UCO Bank (up 4.51%), Indian Bank (up 4.30%), Syndicate Bank (up 3.79%), Union Bank of India (up 3.71%), Vijaya Bank (up 3.54%), Allahabad Bank (up 2.94%), Corporation Bank (up 2.43%), Andhra Bank (up 2.35%), Canara Bank (up 1.50%), State Bank of India (up 1.23%), Bank of India (up 1.14%), Bank of Baroda (up 1.07%), Bank of Maharashtra (up 0.92%), Punjab and Sind Bank (up 0.88%) and Dena Bank (up 0.52%), edged higher. United Bank of India (down 0.2%) and Central Bank of India (down 1.01%) edged lower.
Punjab National Bank (PNB) rose 1.66% at Rs 152.85. The stock hit a high of Rs 153.75 and a low of Rs 148 in intraday trade. PNB announced after market hours yesterday, 26 May 2015, that the additional charge of the Managing Director & CEO of the bank vested with Gauri Shankar has been extended by three months effective from 9 May 2015 or till the date of appointment of regular MD & CEO or until further orders, whichever is earlier. Gauri Shankar, executive director was vested with additional charge of Managing Director & CEO of the bank for a period of three months, effective from 9 February 2015 to 9 May 2015 as per Government order dated 9 February 2015.
Among private sector banks, Axis Bank (up 2.26%), Federal Bank (up 2.09%), HDFC Bank (up 1.32%), City Union Bank (up 1.10%), ICICI Bank (up 1.10%) and Yes Bank (up 1.02%), edged higher. Kotak Mahindra Bank fell 0.07%.
IndusInd Bank inched up after the bank said it has inaugurated a new branch in Ujjain in Madhya Pradesh. The stock rose 0.75% at Rs 859.80. The stock hit a high of Rs 866 and a low of Rs 845.05 in intraday trade. The announcement was made during market hours today, 27 May 2015. With the inauguration of new branch, IndusInd Bank now has 45 branches in Madhya Pradesh. The bank plans to further strengthen its presence and customer reach in Madhya Pradesh with more branches in the coming quarters, IndusInd Bank said in a statement.
Index heavyweight and software major Infosys edged lower. The stock fell 2% at Rs 1969.05. The stock hit a high of Rs 2,015 and a low of Rs 1,953.75 in intraday trade.
Tech Mahindra tumbled after the company reported weak Q4 March 2015 results after trading hours yesterday, 26 May 2015. The stock lost 14.24% at Rs 549.35. The stock hit a high of Rs 578.40 and a low of Rs 545 in intraday trade. Tech Mahindra's consolidated net profit before special adjustment related to Mahindra Engineering Services (MESL) fell 39.23% to Rs 472 crore on 6.33% increase in revenue from services to Rs 6116.80 crore in Q4 March 2015 over Q3 December 2014. It may be recalled that MESL was merged with Tech Mahindra with effect from 8 December 2014.
Tech Mahindra's Q4 March 2015 results are not comparable on sequential basis. The Q4 March 2015 results include the results of Lightbridge Communications Corporation (LCC), USA and SOFGEN Holdings (SOFGEN) which were acquired as 100% subsidiary effective from 2 January 2015 and 14 March 2015 respectively.
Tech Mahindra's earnings before interest, taxation, depreciation and amortization (EBITDA) fell 19.95% to Rs 928.60 crore in Q4 March 2015 over Q3 December 2014.
Another index heavyweight and cigarette major ITC edged higher. The stock rose 1.10% at Rs 317.75. The stock hit a high of Rs 318.40 and a low of Rs 314.05 in intraday trade.
GAIL (India) declined after the company reported weak Q4 results during market hours today, 27 May 2015. The stock shed 1.84% at Rs 381.15. The stock hit a high of Rs 388.95 and a low of Rs 371 in intraday trade. GAIL (India)'s net profit fell 47.45% to Rs 510.75 crore on 2.99% decline in total income to Rs 14529.95 crore in Q4 March 2015 over Q4 March 2014.
There was no subsidy sharing burden for GAIL (India) in Q4 March 2015. The company had shared Rs 500 crore towards LPG subsidy in Q4 March 2014.
GAIL (India) said that effective 1 April 2014, the company has revised the useful life of fixed assets based on Schedule II to the Companies Act, 2013 for the purposes of providing depreciation on fixed assets. This resulted in increase in profit before tax (PBT) to the extent of Rs 55.89 crore in Q4 March 2015.
Tata Motors tumbled after the company reported weak Q4 March 2015 results after trading hours yesterday, 26 May 2015. The stock lost 5.12% at Rs 471.65. The stock hit high of Rs 474.75 and low of Rs 463.90 in intraday trade. Tata Motors' consolidated net profit fell 56.19% to Rs 1716.50 crore on 3.43% increase in total income to Rs 67821.21 crore in Q4 March 2015 over Q4 March 2014.
Tata Motors said its profit before tax (PBT) declined sharply to Rs 2771 crore in Q4 March 2015 from Rs 5053 crore in Q4 March 2014. The sharp decline in PBT was due to higher depreciation and amortization and adverse mark to market of un-matured hedges not eligible for hedge accounting. The company attributed the small increase in revenue in Q4 March 2015 to increase in wholesale volumes and richer product mix both in the standalone business and Jaguar Land Rover (JLR).
JLR's profit after tax declined to GBP 302 million in Q4 March 2015 from GBP 449 million in Q4 March 2014. JLR's profit before tax (PBT) fell 31.3% to GBP 396 million in Q4 March 2015 over Q4 March 2014. The sharp decline in PBT was due to higher depreciation and amortization and unfavourable revaluation of foreign currency debt and unrealised hedges that are not eligible for hedge accounting treatment. JLR's revenue rose 8.9% to GBP 5,826 million in Q4 March 2015 over Q4 March 2014. JLR's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 10.4% to GBP 1,016 million in Q4 March 2015 over Q4 March 2014.
On standalone basis, Tata Motors reported net loss of Rs 1164.25 crore for Q4 March 2015, which was sharply higher than net loss of Rs 816.61 crore in Q4 March 2014. Revenue (net of excise) jumped 26.2% to Rs 10784 crore in Q4 March 2015 over Q4 March 2014. EBITDA stood at Rs 299 crore in Q4 March 2015 as against negative EBITDA of Rs 528 crore in Q4 March 2014.
Tata Motors said that considering the continued weak operating environment in the standalone business and in view of the losses for the year, no dividend is permitted to be paid to the shareholders of the company for the year ended 31 March 2015 (FY 2015) as per the Companies (Declaration and Payment of Dividend) Rules, 2014.
Tata Chemicals fell 3.84% to Rs 428.10. On a consolidated basis, the company posted a net loss of Rs 74.17 crore in Q4 March 2015, lower than net loss of Rs 1225.72 crore in Q4 March 2014. Total income rose 0.35% to Rs 3765.38 crore in Q4 March 2015 over Q4 March 2014. The result was announced after market hours today, 27 May 2015.
Shares of public sector oil marketing companies (PSU OMCs) edged higher after overnight decline for global crude oil prices. BPCL (up 1.88%), HPCL (up 2.44%) and Indian Oil Corporation (up 3.27%) edged higher.
Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. 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. The government has already decontrolled pricing of petrol and diesel.
Brent crude oil futures edged higher after previous trading session's steep decline. Brent for July settlement was up 11 cents at $63.83 a barrel. The contract had declined $1.65 a barrel or 2.52% to settle at $63.72 a barrel during previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 64.08, compared with close of 63.98 during the previous trading session.
The Sensex has risen 553.35 points or 2.05% in this month so far (till 27 May 2015). The Sensex has gained 65.24 points or 0.24% in this calendar year so far (till 27 May 2015). From a 52-week low of 24,163.62 on 30 May 2014, the Sensex has risen 3,401.04 points or 14.08%. The Sensex is off 2,460.08 points or 8.19% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, the government yesterday, 26 May 2015, named former finance secretary and economist Vijay Kelkar to head a panel that will recast the public-private-partnership (PPP) model of infrastructure development in which the government partners with private firms. The Kelkar committee will review the PPP policy and suggest a better risk-sharing mechanism between private developers and the government after analysing such projects in different sectors and the existing framework of risk-sharing. It will also propose design changes to contractual arrangements of the PPP in line with the review and international best practices and suggest measures to improve capacity-building in government for implementation of the PPP projects. The committee will submit a report in three months.
The Reserve Bank of India (RBI) is scheduled to announce the outcome of its second bi-monthly monetary policy review for the year 2015-16 at 11:00 IST on 2 June 2015.
In overseas markets, European stocks edged higher today, 27 May 2015, amid the easing of tensions around the Greek situation. Key benchmark indices in UK and France were up 0.30% to 0.53%. Germany's DAX was down 0.11%.
Greece's finance minister Yanis Varoufakis yesterday, 26 May 2015, said that Athens will be able to make its next payment to the International Monetary Fund on 5 June 2015 because it will have reached an agreement with its creditors by then. Greece is scheduled to repay euro 1.6 billion ($1.76 billion) to the IMF between June 5-19.
German consumer sentiment is set to increase again in June, GfK market research group said in its monthly survey today, 27 May 2015. The forward-looking GfK consumer sentiment index is set to rise to 10.2 points in June from 10.1 points in May, the survey showed.
Asian stocks were mixed today, 27 May 2015. Key benchmark indices in Hong Kong, Singapore, South Korea and Indonesia were off 0.6% to 1.68%. Key benchmark indices in Japan, China and Taiwan were up 0.17% to 0.63%.
Inflation in Japan won't hit a sustained 2% pace this year and any pickup in prices could take considerable time, the Bank of Japan (BoJ) said in minutes of its April board meeting released yesterday, 26 May 2015.
US stocks declined sharply yesterday, 26 May 2015, as a sharp increase in the dollar spurred global investors to dump riskier assets such as equities and commodities. Meanwhile, Richmond Federal Reserve Bank President Jeffrey Lacker said yesterday, 26 May 2015, that he still hasn't decided whether to vote for an interest-rate increase at the central bank's June 16-17 meeting. Mr. Lacker, who is a voter on this year's Federal Open Market Committee and often has expressed concern about the inflationary risks of the Fed's unconventional policies, reportedly said he will make the call based on incoming data between now and then.
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