Key indices extended losses in afternoon trade after a range bound movement in negative zone until that time. The barometer index, the S&P BSE Sensex, and the CNX Nifty, both, hit their lowest level in more than a week. The market breadth indicating the overall health of the market was weak. The Sensex was down 105.41 points or 0.41% at 25,885.82. Shares of L&T tumbled as growth in the company's net profit in Q1 June 2014 was restricted by a onetime loss of about Rs 942.14 crore at PBIT level from the hydrocarbon segment.
GAIL (India) rose in volatile trade after clarifying that the company will shortly come out with a LNG ship charter hire tender, specifying, inter-alia, that one ship out of every lot of three ships each would be built in India. Shares of biscuits major Britannia Industries edged higher. Among other side counters, shares of travel operator Cox & Kings Cox & Kings surged to 52-week high. JK Lakshmi Cement edged higher, with the stock extending Monday's rally triggered by the cement maker's strong Q1 result.
At 13:15 IST, the S&P BSE Sensex was down 105.41 points or 0.41% to 25,885.82. The index lost 119.10 points at the day's low of 25,872.13 in afternoon trade, its lowest level since 22 July 2014. The index rose 55.08 points at the day's high of 26,022.62 in early trade.
The CNX Nifty was down 32.10 points or 0.41% to 7,716.60. The index hit a low of 7,712.85 in intraday trade, its lowest level since 22 July 2014. The index hit a high of 7,756.85 in intraday trade.
The market breadth indicating the overall health of the market was weak. On BSE, 1,629 shares fell and 959 shares rose. A total of 117 shares were unchanged.
The BSE Mid-Cap index was down 37.88 points or 0.41% at 9,101.34, with the decline in the index matching the Sensex's decline in percentage terms. The BSE Small-Cap index was down 56.59 points or 0.57% at 9,910.05, underperforming the Sensex.
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The total turnover on BSE amounted to Rs 1819 crore by 13:15 IST.
Among the 30-share Sensex pack, 16 stocks declined and rest of them gained.
Tata Power Company (down 2.32%), State Bank of India (SBI) (down 2.12%) and Tata Motors (down 1.93%) edged lower from the Sensex pack.
Engineering and construction major L&T slumped as growth in the company's net profit in Q1 June 2014 was restricted by a onetime loss of about Rs 942.14 crore at PBIT level from the hydrocarbon segment. The stock was off 7.4% at Rs 1,523.05. The stock hit high of Rs 1,595 and low of Rs 1,513.45 so far during the day. The company's consolidated profit after tax (PAT) jumped 111% to Rs 967 crore on 10% growth in gross revenue to Rs 19123 crore in Q1 June 2014 over Q1 June 2013. The sharp rise in PAT was on the back of divestment gains, L&T said. The recurring PAT jumped 68% to Rs 771 crore in Q1 June 2014 over Q1 June 2013. The growth in PAT, however, was restricted by a onetime loss of about Rs 942.14 crore at PBIT level from the hydrocarbon segment. The company provided for all foreseeable future losses of 5 projects in Middle East region during the quarter. The result hit the market after market hours on Monday, 28 July 2014.
L&T's order intake rose 11% to Rs 33408 crore in Q1 June 2014 over Q1 June 2013. The international order inflow at Rs 14754 crore in Q1 June 2014 grew more than 2 times on year-on-year (YoY) and constituted 44% of the total order inflow during the quarter. The consolidated order book of the group stood at Rs 195392 crore as on 30 June 2014, higher by 13% on YoY basis. International order book constituted 26% of the total order book, L&T said.
L&T said that the domestic market holds large potential, awaiting impetus through policy measures and conducive investment environment. The company expects good prospects in the medium term from revival of core sectors such as infrastructure, power, minerals & metals, defence and oil & gas when the initiatives by the new government at the centre take definitive shape and rigour. The company is confident of sustaining its growth momentum by utilizing the emerging opportunities for which it has positioned itself well, L&T said.
Bharat Heavy Electricals (Bhel) declined 1.09% to Rs 226.99. The stock was volatile. The stock hit high of Rs 230 and low of Rs 225.25 so far during the day. The company after market hours on Friday, 25 July 2014, said that the company has bagged an order valued at Rs 68 crore for setting up a 10 MWp grid connected solar power plant for Karnataka Power Corporation (KPCL). The plant will be set up at Shivanasamudram, Belakavadi Village in Mandya District of Karnataka. Bhel's scope of work in the turnkey contract envisages design, engineering, manufacture, supply, erection, testing and commissioning of the 10 MW solar power plant including grid inter-connection, operation and maintenance (O&M) of the plant for 3 years.
Shares from capital goods sector were mostly lower after a steep post-results slide in shares of L&T. BEML (down 1.09%), Siemens (down 1.44%) and Thermax (down 3.58%) declined. ABB India (up 0.81%) and Bharat Electronics (up 0.55%) rose.
Crompton Greaves declined 1.2%. The stock turned ex-dividend today, 30 July 2014, for final dividend of Rs 0.40 per share for the year ended 31 March 2014.
GAIL (India) rose 1.77% to Rs 432.15. The stock was volatile. The stock hit high of Rs 434.50 and low of Rs 423.65 so far during the day. GAIL (India) during market hours today clarified that the company has signed long term agreements with the US based companies viz. Cheniere Energy Partner and Dominion Resources for transportation of LNG from Sabine Pass and Cove Point terminals in USA. Under the advice of Ministry of Petroleum & Natural gas, GAIL (India) will shortly come out with a LNG ship charter hire tender specifying, inter-alia, that one ship out of every lot of three ships each would be built in India. Quotes for three such lots of three ships each would be specified in the tender. It is proposed to allow six years delivery period for the Indian built ships as against about 2 and half years for the foreign built ships, GAIL (India) said
Britannia Industries gained 3.46% to Rs 1,106.05 after scaling a record high of Rs 1,115.70 in intraday trade.
Cox & Kings jumped 6.49% to Rs 272.45 after hitting a 52-week high of Rs 276.40 in intraday trade.
JK Lakshmi Cement edged higher, with the stock extending Monday's rally triggered by the cement maker's strong Q1 result. The stock was up 3.13% at Rs 253.55. The stock hit 52-week high of Rs 259.20 in intraday trade. The company's net profit surged 157.7% to Rs 40.46 crore on 31.1% rise in total income to Rs 602.92 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours Friday, 25 July 2014.
Indoco Remedies jumped 11.75% after net profit surged 118.30% to Rs 20.04 crore on 29.01% increase in total income from operations to Rs 198.63 crore in Q1 June 2014 over Q1 June 2013. The result was announced during trading hours today, 30 July 2014.
The market may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month July 2014 series to August 2014 series. The near-month July 2014 F&O contracts expire tomorrow, 31 July 2014..
In the foreign exchange market, the rupee was slightly higher against the dollar in choppy trade. The partially convertible rupee was hovering at 60.13, compared with its close of 60.14 on Monday, 28 July 2014.
European stocks slipped today, 30 July 2014, as investors weighed corporate earnings, and as the US joined Europe in imposing new sanctions on Russia for its role in the insurgency in Ukraine. Key benchmark indices in UK, France and Germany were down 0.08% to 0.36%.
Asian stocks rose for a fourth day today, 30 July 2014, before the Federal Reserve updates markets on monetary policy later in the global day today, 30 July 2014. Key benchmark indices in Japan, Hong Kong, South Korea, and Taiwan rose by 0.18% to 1%. Key benchmark indices in China and Singapore fell by 0.08% to 0.09%.
Trading in US index futures indicated that the Dow could gain 26 points at the opening bell on Wednesday, 30 July 2014. US stocks fell on Tuesday, 29 July 2014, after US President Barack Obama announced new sanctions against Russia and warned its actions in Ukraine are "setting back decades of progress".
The US sanctioned three Russian banks and a state-owned shipbuilder that serves Russia's navy and oil and gas industry, joining with the European Union in escalating penalties for action in Ukraine. The EU curbed Russia's access to bank financing and advanced technology in its widest-ranging sanctions yet over President Vladimir Putin's backing of rebels in eastern Ukraine.
Economic reports yesterday showed improving US consumer sentiment while the housing market remains in a slowdown. The Conference Board's consumer confidence index rose to 90.9, the highest reading since October 2007. Residential real-estate prices advanced 9.3% in the 12 months ended May, the slowest pace in more than a year, according to the S&P/Case-Shiller index of property values in 20 cities.
Expectations are that the Federal Reserve's Federal Open Market Committee (FOMC) will announce reduction of another $10 billion from its monthly asset purchases, or quantitative easing (QE) program after its two-day policy meeting which concludes later in the global day today, 30 July 2014. So far in 2014, the FOMC has been consistently trimming its quantitative easing at each meeting by $10 billion per month. This is the purchase of Treasury and mortgage-backed securities meant to push down long-term interest rates. As the Fed approaches the end of its QE program, Fed watchers are looking for a signal on when the central bank will raise interest rates.
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