Data showing massive selling by foreign institutional investors (FIIs) during the previous trading session hurt sentiment as key benchmark indices edged lower in volatile trade. High volatility was witnessed during the last one hour or so of the trading session after media reports suggested that the government will not yield to the demand of FIIs for a tax waiver on capital gains of previous years. Benchmark indices trimmed losses in late trade soon after extending intraday losses. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit 3-1/2-week closing low.
The market breadth indicating the overall health of the market turned negative from positive in late trade. The Sensex declined 210.17 points or 0.75% to settle at 27,676.04. The BSE Small-Cap and Mid-Cap indices, both, slipped into the red from green in late trade.
IT shares advanced on renewed buying. HCL Technologies edged lower in volatile trade after weak Q3 outcome. Sun Pharmaceutical Industries slumped after Japan's Daiichi Sankyo announced that it has completed the sale of its entire stake in the Indian company. Capital goods stocks dropped.
According to reports, the government will not yield to the demand of foreign portfolio investors for a tax waiver on capital gains of previous years. Finance Minister Arun Jaitley already indicated last week that the government is unlikely to intervene with regard to income tax notices directing payment of Minimum Alternate Tax (MAT) by FIIs for past years. Many foreign investors have been receiving notices requesting their MAT calculations for financial year 2011-2012, according to reports. While the government has said that capital gains on sale of shares by foreign institutional investors (FIIs) will not be subject to the provisions of the minimum alternate tax (MAT) from 1 April 2015, concerns of tax demand for earlier years remain. In the Union Budget 2015-16 presented in parliament on 28 February 2015, Jaitley had announced that capital gains on sale of shares by foreign institutional investors (FIIs) will not be subject to the provisions of the minimum alternate tax (MAT) from 1 April 2015.
Key benchmark indices edged lower for fifth day in a row today, 21 April 2015.
Foreign portfolio investors sold shares worth a net Rs 1447.87 crore into the secondary equity market yesterday, 20 April 2015, as per data from Central Depository Services (India). Domestic institutional investors (DIIs) bought shares worth a net Rs 962.50 crore on yesterday, 20 April 2015, as per provisional data released by the stock exchanges.
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The S&P BSE Sensex declined 210.17 points or 0.75% to settle at 27,676.04, its lowest closing level since 27 March 2015. The index fell 288 points at the day's low of 27,598.21 in late trade. The index rose 90.72 points at the day's high of 27,976.93 in early trade.
The Nifty shed 70.35 points or 0.83% to settle at 8,377.75, its lowest closing level since 27 March 2015. The index hit a low of 8,352.70 in intraday trade. The index hit a high of 8,469.35 in intraday trade.
The BSE Mid-Cap index shed 47.25 points or 0.45% to settle at 10,506.71. The BSE Small-Cap index was declined 36.70 points or 0.32% to settle at 11,332.89. The decline in both these indices was lower than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,415 shares fell and 1,277 shares rose. A total of 137 shares were unchanged.
The total turnover on BSE amounted to Rs 4000 crore, lower than turnover of Rs 5004.48 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE FMCG index (down 1.17%), BSE Healthcare index (down 3.24%), BSE Auto index (down 1.31%) and BSE Oil & Gas index (down 1.08%) underperformed the Sensex. The S&P BSE IT index (down 0.02%), BSE Bankex index (down 0.04%), BSE Capital Goods index (down 0.48%), BSE Consumer Durables index (up 0.13%), BSE Metal index (up 0.15%), BSE Power index (down 0.73%), BSE Realty index (down 0.37%) and BSE Teck index (down 0.32%) outperformed the Sensex.
Reliance Industries (RIL) was off 1.09% at Rs 875.90. The stock hit a high of Rs 895.05 and a low of Rs 872.45 in intraday trade. Global credit rating agency Moody's Investors Service has reportedly said that RIL's credit metrics will improve over the next two years on completion of petrochemical and refinery projects.
ONGC was down 0.4% at Rs 320.45. Oil India fell 2.75% at Rs 487.20. Oil secretary Saurabh Chandra was quoted as saying today, 21 April 2015, that ONGC and Oil India would invest $6 billion in exploration and production in the year ending 31 March 2016 in a bid to arrest declining oil and gas production. He also said that the government will soon auction 69 marginal oil and gas fields owned by ONGC and Oil India.
Shares of pharmaceutical companies declined. Dr Reddy's Laboratories (down 2.81%), Divi's Laboratories (down 2.54%), Lupin (down 1.66%), Glenmark Pharmaceuticals (down 1.77%), Cipla (down 0.94%), Aurobindo Pharma (down 0.79%), GlaxoSmithKline Pharmaceuticals (down 0.08%), edged lower. IPCA Laboratories (up 0.56%), Wockhardt (up 1.06%) and Cadila Healthcare (up 1.08%) edged higher.
Sun Pharmaceutical Industries slumped after Japan's Daiichi Sankyo announced that it has completed the sale of its entire stake in the Indian company. The stock was off 8.86% at Rs 951.60. The stock hit a high of Rs 976.15 and a low of Rs 933.10. On NSE, the stock witnessed huge volumes as 26.57 crore shares changed hands, compared with average daily volume of 24.46 lakh shares in the past one quarter.
Daiichi Sankyo today, 21 April 2015, announced that it has sold its entire holding of 21.49 crore shares of Sun Pharma. Daiichi Sankyo had yesterday, 20 April 2015, announced that its board had approved selling all or part of its stake in Sun Pharma. The existing business partnership with Sun Pharma will remain unchanged after the deal, it had said. Earlier, Daiichi had received shares of Sun Pharma in March this year following the merger of Ranbaxy Laboratories with Sun Pharma.
Shares of most companies operating in the capital goods sector declined. Crompton Greaves (down 4.03%), Suzlon Energy (down 1.33%), BEML (down 0.68%), Havells India (down 0.93%), Bharat Heavy Electricals (down 0.78%), Siemens (down 0.84%), Larsen & Toubro (down 0.54%) and Thermax (down 0.72%), edged lower. Bharat Electronics (up 0.18%), Alstom T&D India (up 2.12%) and ABB India (up 2.9%) edged higher.
Shares of public sector banks were mixed. UCO Bank (up 1.9%), IDBI Bank (up 2.43%), Canara Bank (up 1.35%), Corporation Bank (up 1.1%), Bank of India (up 1.02%), State Bank of India (up 0.56%), Punjab National Bank (up 0.41%) and Bank of Baroda (up 0.22%) edged higher. Bank of Maharashtra (down 1.57%), Vijaya Bank (down 1.29%), Dena Bank (down 1.06%), Central Bank of India (down 0.83%) and Andhra Bank (down 0.81%) edged lower.
Among private sector banks, ICICI Bank (down 0.06%), HDFC Bank (down 0.42%), Yes Bank (down 0.4%), IndusInd Bank (down 0.7%) and Federal Bank (down 0.16%) edged lower. Shares of Axis Bank rose 1%.
Kotak Mahindra Bank (KMBL) fell 1.2% at Rs 1,353.60. The stock hit a high of Rs 1,381 and a low of Rs 1,349.15 in intraday trade. KMBL during market hours today, 21 April 2015, said it has allotted 13.92 crore equity shares of Rs 5 each of KMBL to the shareholders of ING Vysya Bank as on the record date i.e. 17 April 2015, in the ratio of 725 equity shares of Rs 5 each of KMBL for every 1,000 equity shares of Rs 10 each held in ING Vysya Bank. With this allotment, the aggregate foreign investment in KMBL has reached 48.5% which is approaching the composite cap of 49% on foreign investment under the automatic route, KMBL said. KMBL's application for an approval to increase the aggregate ceiling on foreign investment to 55% is currently under consideration of Foreign Investment Promotion Board (FIPB), KMBL said.
Bajaj Finance fell 4.25% at Rs 4,365.20. The company announced during trading hours that its board approved issuing securities for an aggregate amount upto Rs 1400 crore through qualified institutions placement. The board also approved preferential issue of upto 9.25 lakh warrants convertible into equivalent number of equity shares to Bajaj Finserv, the promoter.
Metal shares mixed. National Aluminium Company (up 1.51%), Tata Steel (up 1.06%), Steel Authority of India (up 0.41%), Sesa Sterlite (up 1.59%) and NMDC (up 0.28%) edged higher. JSW Steel (down 1.03%), Hindalco Industries (down 2.78%) and Jindal Steel & Power (down 1.52%) edged lower.
Hindustan Zinc fell 1.26% at Rs 168.25. The stock hit a high of Rs 174.40 and a low of Rs 166.50 in intraday trade. The company's net profit rose 6.17% to Rs 1997.44 crore on 11.56% growth in total income to Rs 4720.56 crore in Q4 March 2015 over Q4 March 2014. The result was announced after market hours yesterday, 20 April 2015.
Hindustan Zinc's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 14% to Rs 1978 crore in Q4 March 2015 over Q4 March 2014, due to the increase in revenue along with reduction in cost of production. Integrated zinc and lead metal production during the quarter were record high due to higher feed availability and enhanced smelter utilization, Hindustan Zinc said.
Hindustan Zinc said it expects significant progress in terms of mine development and ore production from the underground mine projects. Rampura Agucha will continue to provide majority of mined metal in year ending 31 March 2016 (FY 2016), although overall production from this mine will be less than in year ending 31 March 2015 (FY 2015). The gap in production will be made up primarily by higher volumes from Sindesar Khurd. In FY 2016, mined metal production is expected to be higher from FY 2015, while integrated refined metal production, including silver, will be significantly higher as the company will process the available mined metal inventory also, Hindustan Zinc said. The cost of production excluding royalty is expected to remain stable, it added. There would be an additional outflow towards DMF and National Exploration Trust in accordance with the MMDRA Act 2015, Hindustan Zinc said.
IT shares advanced on renewed buying. MindTree (up 1.24%), Tech Mahindra (up 0.67%), MphasiS (up 0.7%), TCS (down 0.16%), Hexaware Technologies (up 0.48%), Infosys (up 0.52%) and Oracle Financial Services Software (up 1.34%) edged higher.
HCL Technologies edged lower in volatile trade after weak Q3 outcome. The stock fell 3.48% at RS 891.05. The stock hit a high of Rs 919 and a low of Rs 834.10 in intraday trade. As per US accounting standards, the company's consolidated net profit fell 12.2% to Rs 1683 crore on 0.2% fall in revenue to Rs 9267 crore in Q3 March 2015 over Q2 December 2014. Earnings before interest, taxation, depreciation and amortization (EBITDA) fell 9.8% to Rs 2091 crore in Q3 March 2015 over Q2 December 2014. The EBITDA margin edged lower to 22.5% in Q3 March 2015 from 25% in Q2 December 2014. The company made net addition of 3,944 employees during the quarter.
Power Grid Corporation of India (PGCIL) fell 0.47% at Rs 148.50. The stock hit a high of Rs 151.95 and a low of Rs 148.30. PGCIL at the fag end of trading hours today, 21 April 2015, said that its board of directors at a meeting held on 17 April 2015 accorded investment approvals for two projects aggregating Rs 5184.91 crore.
Key benchmark indices edged lower for fifth day in a row today, 21 April 2015. The Sensex has lost 1,368.40 points or 4.71% in five trading session from a recent high of 29,044.44 on 13 April 2015. The Sensex has fallen 281.45 points or 1% in this month so far (till 21 April 2015). The Sensex has risen 176.62 points or 0.64% in this calendar year so far (till 21 April 2015). From a 52-week low of 22,277.04 on 8 May 2014, the Sensex has risen 5,399 points or 24.23%. The Sensex is off 2,348.70 points or 7.82% from a record high of 30,024.74 hit on 4 March 2015.
Proceedings in the parliament during the second and final part of the ongoing Budget session which began yesterday, 20 April 2015, are being closely watched as the government hopes to pass the Constitution Amendment Bill for the introduction of a nationwide Goods and Services Tax (GST) in the country. The government had tabled the Constitution Amendment Bill for GST in the Lok Sabha during the winter session of parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
In overseas markets, European stocks edged lower in choppy trade. Chinese and Japanese led gains in Asian stocks after China's step to prop up its faltering economy. The People's Bank of China (PBOC) on Sunday, 19 April 2015, announced reduction in reserve requirement ratio (RRR) for all banks by 100 basis points to 18.5% effective from 20 April 2015.
Meanwhile, global markets are closely monitoring developments with regard to Greece. Greece needs to agree on a range of economic overhauls with the lenders in order to receive the next much-needed tranche of bailout and avoid running out of cash. The Greece government yesterday, 20 April 2015, ordered public entities including state-owned companies and public pension funds to transfer cash reserves to the central bank, a move that comes as Greece scrambles with finding money it needs to service debt. Eurozone finance ministers are scheduled to hold a meeting on Friday, 24 April 2015, to discuss the state of negotiations between Greece and its international creditors.
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