A range bound movement was witnessed as key benchmark indices languished in negative zone in early afternoon trade. The losses for the benchmark indices were currently small. The barometer index, the S&P BSE Sensex, was currently off 51.27 points or 0.19% at 27,480.14. The market breadth indicating the overall health of the market was negative.
Realty stocks edged higher on renewed buying. Auto stocks edged lower. Tata Motors tumbled after the company reported weak Q4 March 2015 results after trading hours yesterday, 26 May 2015.
Earlier, the Sensex hit its lowest level in almost two weeks and the 50-unit CNX Nifty hit its lowest level in more than a week as these two key benchmark indices extended initial losses.
Indian stocks may remain volatile in the near future 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 bought shares worth a net Rs 114.81 crore yesterday, 26 May 2015, as per provisional data released by the stock exchanges. 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, 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.
At 12:16 IST, the S&P BSE Sensex was down 51.27 points or 0.19% at 27,480.14. 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 index rose 17.62 points at the day's high of 27,549.03 in morning trade.
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The CNX Nifty was down 23.80 points or 0.29% at 8,315.55. The index hit a low of 8,277.95 in intraday trade, its lowest level since 18 May 2015. The index hit a high of 8,334.85 in intraday trade.
The BSE Mid-Cap index was down 22.08 points or 0.21% at 10,587.88. The decline in the index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was down 10.44 points or 0.09% at 11,155.21. The decline in the index was lower than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,273 shares fell and 983 shares rose. A total of 89 shares were unchanged.
Realty stocks edged higher on renewed buying. DLF (up 2.13%), Housing Development & Infrastructure (up 1.68%), Godrej Properties (up 1.09%), Anant Raj (up 1.22%), Indiabulls Real Estate (up 0.17%) and Oberoi Realty (up 0.05%) edged higher. Unitech (down 1.41%), Sobha (down 1.37%) and Prestige Estates (down 1.78%) edged lower.
Auto stocks edged lower. Eicher Motors (down 3.44%), Mahindra & Mahindra (down 2.14%), Maruti Suzuki India (down 0.13%) and Bajaj Auto (down 0.03%) edged lower. TVS Motor Company (up 1.36%) and Hero MotoCorp (up 0.43%) edged higher.
Tata Motors tumbled after the company reported weak Q4 March 2015 results after trading hours yesterday, 26 May 2015. The stock was off 5% at Rs 472.25. The stock hit high of Rs 474.75 and low of Rs 463.90 so far during the trading session. 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.
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.
In overseas markets, Asian stocks were mixed today, 27 May 2015. Key benchmark indices in Hong Kong, Singapore, South Korea and Indonesia were off 0.76% to 1.68%. Key benchmark indices in Japan, China and Taiwan were up 0.17% to 0.77%.
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.
In Europe, 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.
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