After seeing initial volatility, key benchmark indices moved in a narrow range in morning trade. The barometer index, the S&P BSE Sensex, was currently trading below the psychological 26,000 mark, having alternately moved above and below that level in intraday trade so far. The Sensex was currently down 6.02 points or 0.02% at 25,993.32. The market breadth indicating the overall health of the market was negative. Meanwhile, foreign portfolio investors sold shares worth a net Rs 1128.37 crore yesterday, 16 October 2014, as per provisional data.
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". HCL Technologies slumped as its earnings before interest, taxes, depreciation and amortization (EBITDA) declined 1.1% in Q1 September 2014 over Q4 June 2014. Hero MotoCorp advanced after strong Q2 earnings. Axis Bank advanced after the bank announced a reduction in its base rate by 10 basis points. Tata Steel advanced after the company said its two indirect 100% subsidiaries executed debt refinancing agreements.
Earlier, 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 climbed from the lowest level in almost four years on speculation prices decreased more than justified.
In the foreign exchange market, the rupee edged higher against the dollar, tracking stronger Asian currencies.
More From This Section
At 10:16 IST, the S&P BSE Sensex was down 6.02 points or 0.02% at 25,993.32. The index rose 85.82 points at the day's high of 26,085.16 in early trade. The index lost 81.76 points at the day's low of 25,917.58 at the onset of the trading session, its lowest level since 13 August 2014.
The CNX Nifty was up 4.40 points or 0.06% at 7,752.60. The index hit a high of 7,769.45 in intraday trade. The index hit a low of 7,729.65 in intraday trade, matching the intraday low hit yesterday, 16 October 2014, which was its lowest level since 13 August 2014.
The BSE Mid-Cap index was down 3.42 points or 0.04% at 9,240.53. The BSE Small-Cap index was down 4.69 points or 0.05% at 10,338.40.
The market breadth indicating the overall health of the market was negative. On BSE, 990 shares dropped while 980 shares rose. A total of 84 shares were unchanged.
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 7.27% at Rs 2,484. The stock hit a high of Rs 2,509.50 and a low of Rs 2,451 so far in the day. On BSE, 2.35 lakh shares exchanged 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.
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 6.44% at Rs 1,549.30. 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.
Among other IT stocks, Tech Mahindra (down 1.13%), MindTree (down 1.31%), MphasiS (down 1.52%), and Wipro (down 0.8%) declined. Infosys rose 0.17% at Rs 3,872.
Hero MotoCorp rose 0.69% at Rs 2,811. The stock hit a high of Rs 2,890 and a low of Rs 2,740.30 so far in the day. The company's net profit jumped 58.56% to Rs 763.37 crore on 21.69% growth in total income to Rs 7108.85 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 16 October 2014.
Tata Motors declined 1.87% at Rs 474.75. Tata Motors Group global wholesales in September 2014, including Jaguar Land Rover (JLR), were 80,104 units. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range in September 2014 were 34,918 units. Global wholesales of all passenger vehicles in September 2014 were 45,186 units. Global wholesales of Tata Motors' passenger vehicles in September 2014 were 12,328 units.
Global wholesales for Jaguar Land Rover for September 2014 were 32,858 vehicles. Jaguar wholesales for September 2014 were 5,715 vehicles, while Land Rover wholesales for the month were 27,143 vehicles.
Axis Bank rose 1.26% at Rs 398.95. The bank on Thursday, 16 October 2014, said it has reduced its base rate by 10 basis points to 10.15% per annum (p.a.) from 10.25% with effect from 15 October 2014. The bank attributed the reduction in base rate to decline in cost of funds. The cost of funds has eased due to softening of interest rates based on improving liquidity and other macroeconomic developments, Sidharth Rath, President (Treasury, Business Banking & Capital Markets), Axis Bank said in a statement.
Tata Steel rose 0.49% at Rs 442. The company after market hours yesterday, 16 October 2014, said that its 100% indirect subsidiary Tata Steel UK Holdings Limited (TSUKH) executed agreements for the refinancing of its bank debt through term loan and revolving credit facilities of euro 3.05 billion. The debt was originally incurred in relation with the acquisition of Corus Group plc in 2007. The new financing structure consists of a 5-year loan of euro 370 million, a 6 year revolving credit facility for working capital purposes of 700 million pounds and a 7-year loan of euro 1.8 billion, with more favourable terms and pricing relative to the earlier debt, Tata Steel said.
Further, Tata Steel Global Holdings Pte Ltd. (TSGH), another 100% indirect subsidiary of Tata Steel incorporated in Singapore has also executed agreements today for loan facilities of US$1.5 billion comprising of a 5 year loan of $700 million and a 7 year loan of $800 million. The proceeds of this loan will be used to repay term debts, term out working capital and fund investment needs of the Tata Steel Group outside India, Tata Steel said.
Ranbaxy Laboratories rose 0.08% at Rs 590.35. The company after market hours yesterday, 16 October 2014 in a clarification with regard to a news item titled "Sun, Ranbaxy may be asked to sell some business for CCI approval to merger" said that the news article suggests that the Competition Commission of India (CCI) may ask the parties to the merger to sell parts of their businesses as a pre-condition to approve the merger. As on date, the company has not received any such communication from the CCI to divest any part of the business(s), Ranbaxy said. The parties have made certain submissions to the CCI on which decision of the CCI is awaited, it added.
Sun Pharmaceutical Industries declined 0.18% at Rs 795.45.
Meanwhile, Sun Pharmaceutical Industries before market hours also clarified with regard to above news item that it has not received any direction from CCI for divesting any business as indicated in the said news article.
Siemens rose 0.73% at Rs 786. The company during market hours in a clarification with regard to news item titled "Siemens gets nod to set up six more centres of excellence in Guj" said that the news pertains to Siemens Industry Software (India ), a Group Company of Siemens AG in India, and not Siemens.
UltraTech Cement rose 0.44% at Rs 2,320. The company after market hours yesterday, 16 October 2014 in a clarification with regard to news item titled "UltraTech eyes Holcim-Lafarge assets to cement global position" said that in the course of business, the company evaluates various proposals on a regular basis. There is no proposal which has reached the stage which would trigger Clause 36 of the Listing Agreement, the company said. Recent media reports had suggested that UltraTech Cement is eyeing the assets being divested by Lafarge and Holcim in Europe and Brazil as part of their merger plans
Indian Oil Corporation (IOC) rose 1.01% at Rs 364.40. The company after market hours yesterday, 16 October 2014, in a clarification with regard to news item titled "IOC to Invest $4 b in British Columbia Province in Canada" said that the company, through its wholly owned affiliate Indoil Montney., Canada had signed transaction agreements with Progress Energy Canada (Progress Energy Canada), PETRONAS Carigall Canada BV (PCC BV) -- wholly owned affiliates of PETRONAS -- for the acquisition of a 10% interest in Progress Energy Canada's LNG-destined natural gas reserve in British Columbia and in the proposed Pacific North West LNG Project on 7 March 2014. Indian Oil shall offtake 1.2 MMTPA of LNG from the project, IOC said.
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 61.59, compared with its close of 61.84 during the previous trading session.
Brent crude oil prices climbed from the lowest level in almost four years on speculation prices decreased more than justified. Brent for December settlement was up 58 cents at $86.40 a barrel. The contract had risen $1.70 a barrel to settle at $85.82 a barrel yesterday, 16 October 2014.
Asian stocks were mixed today, 17 October 2014. Key indices in Japan, China, Taiwan, and South Korea were off 0.66% to 1.07%. Key indices in Hong Kong, Singapore and Indonesia were up 0.08% to 0.94%.
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 46 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.
Powered by Capital Market - Live News