Bank stocks led rebound as key benchmark indices moved into the green from red in early afternoon trade. The barometer index, the S&P BSE Sensex, regained the psychological 26,000 mark. The Sensex was currently up 63.48 points or 0.24% at 26,062.82. The market breadth indicating the overall health of the market was negative. The BSE Mid-Cap index moved into green from red. The BSE Small-Cap index trimmed losses. Foreign portfolio investors sold shares worth a net Rs 1128.37 crore yesterday, 16 October 2014, as per provisional data.
Realty stocks edged lower. TCS tumbled after as the company's operating profit margin (OPM) dropped on sequential basis in Q2 September 2014 and after the company forecast the current period will be "soft". CMC slumped after the company said its board of directors approved a scheme of amalgamation of the company with TCS. HCL Technologies slumped as its earnings before interest, taxes, depreciation and amortization (EBITDA) declined 1.1% in Q1 September 2014 over Q4 June 2014. Crompton Greaves edged higher amid volatility after good Q2 earnings. Delta Corp declined after the company reported reverse turnaround in Q2.
Earlier, key indices had drifted lower in mid-morning trade after a range bound movement in morning trade. Before that, key indices had bounces back after a weak opening.
In overseas markets, Asian stocks were mixed. US stocks recovered from early losses yesterday, 16 October 2014, as St. Louis Federal Reserve Bank President James Bullard said policy makers should consider delaying the end of bond purchases to halt the decline in inflation expectations.
Brent crude oil prices reversed gains on speculation that Saudi Arabia and other members of the Organization of Petroleum Exporting Countries will hold off from supply cuts.
In the foreign exchange market, the rupee edged higher against the dollar, tracking stronger Asian currencies.
At 12:15 IST, the S&P BSE Sensex was up 63.48 points or 0.24% at 26,062.82. The index rose 92.75 points at the day's high of 26,092.09 in early afternoon trade. The index lost 88.57 points at the day's low of 25,910.77 in mid-morning trade, its lowest level since 13 August 2014.
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The CNX Nifty was up 15.50 points or 0.2% at 7,763.70. The index hit a high of 7,777.35 in intraday trade. The index hit a low of 7,723.85 in intraday trade, its lowest level since 13 August 2014.
The BSE Mid-Cap index was up 8.65 points or 0.09% at 9,252.60. The BSE Small-Cap index was off 44.80 points or 0.43% at 10,298.29.
The market breadth indicating the overall health of the market was negative. On BSE, 1,370 shares dropped while 1,008 shares rose. A total of 94 shares were unchanged.
Realty stocks edged lower. Godrej Properties (down 2.37%), D B Realty (down 0.75%), and Housing Development & Infrastructure (down 0.54%) declined.
DLF lost 2.99% at Rs 107.05. Market regulator Securities and Exchange Board of India (Sebi) early this week issued an order barring DLF and its chairman K.P. Singh along with five other company executives from accessing India's capital markets for three years. The order is related to lapses in disclosures made at time of the company's IPO in 2007. DLF has decided to contest the Sebi order. On Wednesday, 15 October 2014, credit rating agency CRISIL placed its ratings on the bank facilities and debt instruments of DLF on 'Rating Watch with Negative Implications'. CRISIL said that the Sebi order will adversely impact DLF's ability to access the capital markets and constrain its financial flexibility, which has been one of its key rating strengths, CRISIL said. The order will impact DLF's plans to raise funds through capital market instruments such as equity, commercial mortgage-backed securities (CMBS) and real estate investment trusts (REITs) over the medium term, CRISIL said.
TCS tumbled after as the company's operating profit margin (OPM) dropped on sequential basis in Q2 September 2014 and after the company forecast the current period will be "soft". The stock was off 7.42% at Rs 2,480. The stock hit a high of Rs 2,509.50 and a low of Rs 2,451 so far during the day. On BSE, 3.37 lakh shares changed hands in the counter so far, compared with average daily volume of 75,777 shares in the past one quarter. The company's consolidated net profit fell 5.8% to Rs 5244 crore on 7.7% growth in revenue to Rs 23816 crore in Q2 September 2014 over Q1 June 2014. The operating profit rose 7.03% to Rs 6800.40 crore in Q2 September 2014 over Q1 June 2014. The OPM declined to 28.55% in Q2 September 2014, from 28.73% in Q1 June 2014. The result was announced after market hours yesterday, 16 October 2014.
TCS predicts a "soft quarter" in the three months through December as the holiday season slows outsourcing work at industries ranging from retail to manufacturing, Chief Executive Officer N. Chandrasekaran told reporters after the announcement of the second quarter results yesterday, 16 October 2014.
CMC tumbled 12.51% at Rs 1,914. The company reported 30.07% rise in consolidated net profit to Rs 75.99 crore on 4.05% growth in income from operations to Rs 616.68 crore in Q2 September 2014 over Q1 June 2014. The result was announced after market hours yesterday, 16 October 2014.
Meanwhile, TCS and CMC in a joint statement after market hours on Thursday, 16 October 2014, said that the board of directors of TCS and CMC, a subsidiary of TCS, at a meeting held on Thursday, 16 October 2014, have approved the scheme of amalgamation of CMC with TCS. As per the terms of the scheme, shareholders of CMC (other than TCS) will receive 79 equity shares of Rs 1 each of TCS for every 100 equity shares of Rs 10 each of CMC held by them.
HCL Technologies slumped as its earnings before interest, taxes, depreciation and amortization (EBITDA) declined 1.1% in Q1 September 2014 over Q4 June 2014. The stock was off 7.88% at Rs 1,525.55. The stock hit a high of Rs 1,600 and a low of Rs 1,510.60 so far in the day. The company's consolidated net profit as per US accounting standards rose 2.1% to Rs 1873 crore on 3.7% growth in revenue to Rs 8735 crore in Q1 September 2014 over Q4 June 2014. EBITDA declined 1.1% to 2192 crore in Q1 September 2014 over Q4 June 2014. EBITDA margin dropped to 25.1% in Q1 September 2014, from 26.3% in Q4 June 2014. The result was announced before market hours today, 17 October 2014.
Crompton Greaves rose 0.69% at Rs 190. The stock hit a high of Rs 196 and a low of Rs 181.80 so far in the day. On a consolidated basis, Crompton Greaves reported 19.14% rise in net profit to Rs 69.59 crore on 6.16% growth in total income to Rs 3475.79 crore in Q2 September 2014 over Q2 September 2014. The result was announced after market hours on Thursday, 16 October 2014.
Crompton Greaves said that the Scheme of demerger of the Consumer Products Business Unit of the company into Crompton Greaves' wholly owned subsidiary Crompton Consumer Products was approved by the board of directors at its meeting held on Thursday, 16 October 2014. The Scheme will come into effect from the Appointed Date of 1 April 2015, subject to receipt of all Regulatory approvals.
The Board also approved an increase in the investment limit for foreign institutional investors (FIIs) and foreign portfolio investors (FPIs) upto 100% of the paid-up equity share capital of the company pursuant to the provisions of Foreign Exchange Management Act, 1999, and the Foreign Exchange Management (Transfer or issue of Security by a Person Resident Outside India) Regulations, 2000.
As part of its continuous asset optimisation initiatives, the doard of directors of the company has approved entering into a definitive agreement for sale of a portion of its land parcel at Kanjurmarg, admeasuring approx 8 acres to Evie Real Estate for an aggregate sum of Rs 302.26 crore, Crompton Greaves added.
Delta Corp lost 3.35% at Rs 87.95. The company reported a consolidated net loss of Rs 3.55 crore in Q2 September 2014 compared to consolidated net profit of Rs 5.52 crore in Q2 September 2013. The result was announced after market hours yesterday, 16 October 2014.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 16 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 1128.37 crore on that day.
In the foreign exchange market, the rupee edged higher against the dollar, tracking stronger Asian currencies. The partially convertible rupee was hovering at 61.565, compared with its close of 61.84 during the previous trading session.
Reserve Bank of India (RBI) Governor Raghuram Rajan said in Hyderabad yesterday, 16 October 2014, that the drop in bond yields is partly signaling RBI's success in controlling inflation. The RBI is targeting consumer price inflation of 8% by January 2015 and 6% by January 2016.
Brent crude oil prices reversed gains on speculation that Saudi Arabia and other members of the Organization of Petroleum Exporting Countries will hold off from supply cuts. Brent for December settlement was off 6 cents at $85.76 a barrel. The contract had risen $1.70 a barrel to settle at $85.82 a barrel yesterday, 16 October 2014.
Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
Asian stocks were mixed today, 17 October 2014. Key indices in Japan, China, Taiwan, and South Korea were off 0.71% to 1.4%. Key indices in Hong Kong, Singapore and Indonesia were up 0.08% to 0.94%.
China is expected to release third-quarter economic growth figures on Tuesday, 21 October 2014.
The MNI China Business Indicator fell to a eight-month low of 51.7 in October, the latest data showed today, 17 October 2014. It was down from September's reading of 52.2. While the indicator remains above the breakeven 50 line that separates expansion from contraction, the trend weakened further, with business sentiment below the average of 54 seen over the past 12 months.
Trading in US index futures indicated that the Dow could gain 33 points at the opening bell today, 17 October 2014. US stocks ended little changed yesterday, 16 October 2014, with the Dow industrials recouping much of a 206-point deficit, as investors balanced worries about global growth against mostly better-than-expected US earnings and economic reports.
The National Association of Home Builders (NAHB)/Wells Fargo housing market index fell unexpectedly last month, official data showed on Thursday, 16 October 2014. In a report, NAHB said that NAHB Housing Market Index fell to 54, from 59 in the preceding month.
The Federal Reserve may want to extend its bond-buying program beyond October to keep its policy options open given falling US inflation expectations, Federal Reserve Bank of St. Louis President James Bullard said yesterday, 16 October 2014.
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