Amid a divergent trend among various index constituents, the 50-unit CNX Nifty index ended on a flat note and the barometer index, the S&P BSE Sensex, clocked small gains. The Sensex rose 66.12 points or 0.25% to settle at 26,220.95. The Nifty rose 2 points or 0.02% to settle at 7,950.90. The Nifty could not retain the psychological 8,000 level which it crossed in early trade. The flat closing for Nifty versus small gains for Sensex was due to a sharp setback in the HCL Technologies counter. HCL Technologies, a Nifty constituent, is not a part of the Sensex. The shares of the IT firm tumbled after issuing revenue warning for Q1 September 2015.
With small gains, the Sensex attained its highest closing level in more than four weeks. With minuscule gains, the Nifty hit its highest closing level in more than a week.
Cement stocks nudged higher on renewed buying. Shares of frontline pharma companies edged higher. Auto stocks witnessed a mixed trend after announcing monthly sales volume data for September 2015. Most bank stocks dropped as base rates were reduced in the wake of the the Reserve Bank of India's decision to cut repo rate early this week. Among index heavyweights, L&T and Infosys edged higher whereas HDFC dropped.
In overseas stock markets, European stocks edged higher in choppy trade as better-than-expected Chinese manufacturing data for September 2015 helped calm fears about the economic slowdown in the world's second largest economy. Earlier during the global day, Asian stocks nudged higher after the better-than-expected official Chinese manufacturing data for September 2015. Trading in US index futures indicated further gains for US stocks after a rally overnight triggered by solid US private sector payroll data for September 2015. Trading in US index futures indicated that the Dow Jones Industrial Average may surge 102.50 points at the opening bell today, 1 October 2015.
The Sensex rose 66.12 points or 0.25% to settle at 26,220.95, its highest closing level since 31 August 2015. The index rose 276.97 or 1.05% at day's high of 26,431.80 in early trade. The index rose 13.88 points 0.05% at the day's low of 26,168.71 in mid-morning trade.
The CNX Nifty rose 2 points or 0.03% to settle at 7,950.90, its highest closing level since 21 September 2015. The index rose 59.35 points or 0.74% at the day's high of 8,008.25 in intraday trade. The index lost 18.25 points or 0.22% at the day's low of 7,930.65 in intraday trade.
The BSE Mid-Cap index rose 0.18%. The BSE Small-Cap index rose 0.2%. Both these indices underperformed the Sensex.
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The market breadth indicating the overall health of the market was positive. On BSE, 1,377 shares rose and 1,312 shares declined. A total of 130 shares were unchanged.
The total turnover on BSE amounted to Rs 2927 crore, lower than turnover of Rs 4344.13 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 1.46%), BSE Capital Goods index (up 0.73%) and BSE Consumer Durables index (up 0.89%) outperformed the Sensex. The S&P BSE FMCG index (up 0.24%), BSE IT index (down 0.24%), BSE Auto index (down 0.45%), BSE Bankex index (down 0.37%), BSE Metal index (down 0.12%), BSE Oil & Gas index (up 0.1%), BSE Power index (down 0.55%), BSE Realty index (down 1.82%) and BSE Teck index (up 0.24%) underperformed the Sensex.
Most bank stocks dropped as base rates were reduced in the wake of the the Reserve Bank of India's decision to cut repo rate early this week. Among PSU banks, United Bank of India (down 1.58%), UCO Bank (down 1.19%), Syndicate Bank (down 1.03%), Punjab National Bank (down 0.67%), Bank of India (down 0.81%), State Bank of India (down 0.78%), Andhra Bank (down 0.75%), Union Bank of India (down 0.69%) and Canara Bank (down 0.11%) edged lower. Indian Overseas Bank (up 1.66%), Central Bank of India (up 0.6%), and Oriental Bank of Commerce (up 0.23%) edged higher.
Bank of Baroda (BoB) dropped 1.09% at Rs 181.30. The bank announced after market hours yesterday, 30 September 2015, that it has decided to reduce the base rate by 25 basis points to 9.65% and its Benchmark Prime Lending Rate (BPLR) by 25 basis points to 13.9% per annum with effect from 5 October 2015.
IDBI Bank rose 0.83% at Rs 79.40. The bank has cut its base rate by 25 bps to 9.75% with effect from 5 October 2015. The bank has also reduced the Benchmark Prime Lending Rate (BPLR) by 25 bps to 14.25% p.a. with effect from 5 October 2015. The bank has also decided to reduce the retail term deposit rates in select buckets by 25 to 50 bps with effect from 5 October 2015.
Among private sector banks, ICICI Bank (down 1.07%) edged lower. IndusInd Bank (up 1.57%) and HDFC Bank (up 0.01%) edged higher.
Kotak Mahindra Bank (KMBL) fell 1.25% at Rs 640.75. KMBL during market hours today, 1 October 2015, said that it has reduced its base rate by 25 basis points to 9.5% per annum with effect from 5 October 2015. All categories of loans other than the exceptions permitted by the Reserve Bank of India (RBI) will be priced with reference to the revised base rate, KMBL said.
Axis Bank was unchanged at Rs 495.55. The stock hit a high of Rs 503.45 and a low of Rs 490.40 in intraday trade. Axis Bank has cut its base rate by 35 basis points (bps) to 9.5% with effect from 5 October 2015. Accordingly, the effective rate applicable to various fund based credit and credit limits which are linked to the bank's base ratee will reduce by 35 basis points.
Meanwhile, Axis Bank announced after market hours yesterday, 30 September 2015, that the board of directors has allotted 15,000 Unsecured Redeemable Non Convertible Subordinated Debentures (Basel - III Compliant Tier II Debentures) (Series - 23) of the face value of Rs 10 lakh each for cash at par aggregating to Rs 1500 crore on a private placement basis. The debentures will be listed on the Wholesale Debt Market segment of the BSE and National Stock Exchange of India. The debentures are rated "AAA" by CRISIL, CARE and ICRA.
Yes Bank dropped 0.18% at Rs 728.30. The stock hit a high of Rs 739.75 and a low of Rs 715.10 in intraday trade. The bank during market hours today, 1 October 2015 said that it has cut its base rate by 25 basis points to 10.25% with effect from 5 October 2015.
A number of banks have announced reduction in their base rate after the Reserve Bank of India (RBI) cut its benchmark interest rate viz. the repo rate by 50 basis points after a monetary policy review early this week.
Shares of public sector oil marketing companies (PSU OMCs) edged higher after raising diesel prices. BPCL (up 0.59%) and HPCL (up 0.57%) edged higher. Indian Oil Corporation (IOCL) (down 0.24%) edge lower. IOCL has announced increase in the retail selling price of diesel by 50 paise per litre at Delhi (including state levies), with corresponding price revision in other states with effect from midnight of 30 September/1 October 2015. After the latest increase, diesel would now cost Rs 44.95 a litre in Delhi, up from Rs 44.45. The price of petrol was left unchanged. Meanwhile, PSU OMCs cut price of non-subsidised LPG, which consumers buy after exhausting their quota of subsidised cooking fuel, by Rs 42 per 14.2-kg cylinder.
Pharma stocks were mostly higher. Lupin (up 3.62%), Sun Pharmaceutical Industries (up 2.57%), Dr Reddy's Laboratories (up 1.8%), Strides Arcolab (up 0.81%) and Divi's Laboratories (up 0.92%) edged higher. Wockhardt (down 0.07%), Cipla (down 0.41%), Glenmark Pharmaceuticals (down 0.88%) and Ipca Laboratories (down 0.63%) edged lower. Shares of GlaxoSmithkline Pharmaceuticals were flat at Rs 3,339.55.
FMCG stocks gained. Britannia Industries (up 1.33%), Godrej Consumer Products (up 0.88%), Colgate Palmolive (India) (up 0.35%), Procter & Gamble Hygiene and Health Care (up 0.31%), Bajaj Corp (up 0.36%), Tata Global Beverages (up 2%), Jyothy Laboratories (up 0.03%), Nestle India (up 0.8%), Dabur India (up 0.92%) and Hindustan Unilever (up 0.15%) edged higher. Marico (down 1.26%) and GlaxoSmithkline Consumer Healthcare (down 0.25%) edged lower.
HCL Technologies tumbled 12.65% at Rs 857.90 after the company after market hours yesterday, 30 September 2015, in a pre-quarter earnings update said that its revenue growth in Q1 September 2015 is likely to be tepid on account of adverse currency impact, a client specific issue and skewness in revenue growth due to transition timelines for complex engagements particularly in infrastructure services vertical. During this quarter, revenues to be reported in US dollar would have an adverse impact of 80 basis points (bps) on account of sharp depreciation of multiple currencies against the US dollar, the company added.
HCL Technologies said that certain differences have arisen with one particular multi-million multi-year custom application development project being executed by the company for one of the customers in the public services vertical. The company further said that the contract is likely to be cancelled and as a matter of prudence the company is considering reserving a sum of up to $20 million in Q1 September 2015.
HDFC fell 1.15% at Rs 1,199.25. The stock hit a high of Rs 1,231 and a low of Rs 1,195.30 in intraday trade. The company during market hours today, 1 October 2015, announced the opening of the issue of secured redeemable non-convertible debentures (NCDs). HDFC is simultaneously issuing warrants exchangeable into equity shares along with the NDC issue on qualified institutional placement basis. Each warrant is convertible into one equity share of the company. The floor price for the warrants has been fixed at Rs 1,189.66 each. The warrants proposed to be issued along with the NCD issue are exchangeable for equity shares within a period of 36 months from the date of allotment of warrants. The maximum dilution that could take place in future, if all the warrants are exchanged for equity shares, would be up to 2.2% of the expanded equity share capital of the company.
IDFC slumped 57.32% at Rs 60.30 as the demerger scheme has come into effect today, 1 October 2015, in which the financing undertaking of IDFC gets transferred to IDFC Bank. Post 1 October 2015, the lending and financing business of IDFC will be carried out by IDFC Bank. After the demerger scheme becoming effective, the shares of IDFC Bank will be listed on the stock exchanges. IDFC has fixed 5 October 2015 as the record date for the purpose of entitlement of shares of IDFC Bank to shareholders of IDFC pursuant to the demerger scheme. IDFC Bank will issue and allot 1 share of IDFC Bank for every one share held by them in IDFC.
IDFC said after market hours yesterday, 30 September 2015, that Dr. Rajiv Lall will be taking over the position of MD & CEO of IDFC Bank with effect from 1 October 2015 pursuant to the Reserve Bank of India (RBI), vide its letter dated 23 July 2015, issuing a license to IDFC Bank to launch the banking business. As a result, the board of directors of IDFC has accepted the resignation of Dr. Rajiv Lall, as executive Chairman of the company with effect from 30 September 2015.
Maruti Suzuki India (MSIL) declined 2.33% at Rs 4,579.85. The stock hit a high of Rs 4,720 and a low of Rs 4,567 in intraday trade. MSIL's total sales rose 3.7% to 1.13 lakh units in September 2015 over September 2014. Total domestic sales rose 6.8% to 1.06 lakh units in September 2015 over September 2014. Exports dropped 26.6% to 7,676 units in September 2015 over September 2014.
Mahindra & Mahindra (M&M) dropped 0.44% at Rs 1,255.15. The stock hit a high of Rs 1,278.95 and a low of Rs 1,242.05 in intraday trade. M&M's total tractor sales declined 37% to 18,087 units in September 2015 over September 2014. Domestic tractor sales fell 38% to 17,052 units in September 2015 over September 2014. Exports declined 27% to 1,035 units in September 2015 over September 2014. The company announced its tractor sales volume data for the month of September during market hours today, 1 October 2015.
Separately, M&M during market hours today, 1 October 2015 said that its total auto sales dropped 5% to 42,848 units in September 2015 over September 2014. Domestic auto sales fell 6% to 39,693 units in September 2015 over September 2014. Exports rose 26% to 3,155 units in September 2015 over September 2014.
Eicher Motors rose 2.69% at Rs 18,270.55 after company's subsidiary VE Commercial Vehicles reported 27.72% rise in total sales to 4,248 units in September 2015 over September 2014. The announcement was made during market hours today, 1 October 2015.
Ashok Leyland rose 2.22% at Rs 94.25 after the company said that its total sales jumped 61% to 14,771 units in September 2015 over September 2014. Sales of medium & heavy commercial vehicles (M&HCV) jumped 83% to 12,134 units in September 2015 over September 2014. Sales of light commercial vehicles (LCV) rose 3% to 2,637 units in September 2015 over September 2014. The company made announcement during market hours today, 1 October 2015.
Key benchmark indices edged higher for the third consecutive session. The Sensex has garnered 604.11 points or 2.35% in the the preceding three trading sessions from its close of 25,616.84 on 28 September 2015. The Sensex has fallen 1,278.47 points or 4.64% in this calendar year so far (till 1 October 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 1,387.41 points or 5.58%. The Sensex is off 3,803.79 points or 12.66% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, the outcome of a monthly survey showed that India's manufacturing sector lost growth momentum last month. Due to slower increase in new business, the Nikkei India Manufacturing Purchasing Managers' Index (PMI) fell to seven-month low of 51.2 in September 2015 from 52.3 in August 2015.
Separately, data released by the government after trading hours yesterday, 30 September 2015, showed that the output of eight core industries, comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) registered growth of 2.6% in August 2015 over August 2014. Its cumulative output growth during April to August 2015-16 was 2.2% compared with 5.6% growth in the corresponding period of last year.
Meanwhile, India's stock market remains closed tomorrow, 2 October 2015, on account of Gandhi Jayanti.
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