Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade. The barometer index, the S&P BSE Sensex, was down 112.73 points or 0.43%, off about 140 points from the day's high and up close to 25 points from the day's low. The market breadth indicating the overall health of the market was weak, with more than two losers for every gainer on BSE. The BSE Small-Cap index was off more than 1%. Indian stocks fell on concerns geopolitical tension in the Middle East and Ukraine could push oil prices higher.
Bharti Infratel rose on good Q1 result. Wipro dropped after the company reported a muted 1.2% growth in IT services revenue on sequential basis in Q1 June 2014. Shares of other IT stocks also declined after Wipro's Q1 results. Tech Mahindra declined as the stock turned ex-dividend today, 25 July 2014, for dividend of Rs 20 per share for the year ended 31 March 2014.
At 11:25 IST, the S&P BSE Sensex was down 112.73 points or 0.43% to 26,159.12. The index dropped 140.93 points at the day's low of 26,130.92 in mid-morning trade. The index rose 28.32 points at the day's high of 26,300.17 in early trade, a record high for the index.
The CNX Nifty was down 36.05 points or 0.46% to 7,794.55. The index hit a low of 7,786.25 in intraday trade. The index hit a high of 7,840.95 in intraday trade, a record high for the index.
The market breadth indicating the overall health of the market was weak, with more than two losers for every gainer on BSE. On BSE, 1,513 shares fell and 730 shares rose. A total of 84 shares were unchanged.
The BSE Mid-Cap index was down 66.64 points or 0.72% at 9,226.82. The BSE Small-Cap index was down 129.87 points or 1.27% at 10,099.46. Both these indices underperformed the Sensex.
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Wipro dropped after the company reported a muted 1.2% growth in IT services revenue on sequential basis in Q1 June 2014. The stock was off 5.54% at Rs 544.85. The stock hit high of Rs 554.95 and low of Rs 528 so far during the day. The company's consolidated net profit as per International Financial Reporting Standards (IFRS) jumped 30% to Rs 2100 crore on 14% growth in total revenue to Rs 11140 crore in Q1 June 2014 over Q1 June 2013. The result was announced after trading hours yesterday, 24 July 2014.
IT services revenue was $1.74 billion in Q1 June 2014, a sequential increase of 1.2% and year on year (YoY) increase of 9.6%. IT services revenues in rupee terms was Rs 10510 crore in Q1 June 2014, an increase of 18% YoY. IT services earnings before interest and tax (EBIT) was Rs 2400 crore in Q1 June 2014, an increase of 35% YoY. Non-GAAP constant currency IT services revenue in dollar terms was $1.725 billion in Q1 June 2014, which was within the company's guidance range of $1.715 billion to $1.755 billion. Wipro expects revenue from IT services business to be in the range of $1.77 billion to $1.81 billion in Q2 September 2014.
T K Kurien, Executive Director & Chief Executive Officer, Wipro, said that the company continues to win large deals, particularly in the application and infrastructure space. These wins demonstrate confidence of clients in Wipro's transformational capabilities, he said. Suresh Senapaty, Executive Director & Chief Financial Officer, Wipro said that Wipro's operating margins for Q1 June 2014 was on expected lines, impacted largely due to wage hikes.
Shares of other IT stocks also declined after Wipro's Q1 results. TCS (down 0.63%), Infosys (down 0.7%), and HCL Technologies (down 0.66%) declined.
Tech Mahindra declined 1.59% as the stock turned ex-dividend today, 25 July 2014, for dividend of Rs 20 per share for the year ended 31 March 2014.
Bharti Infratel rose 0.12% on good Q1 result. The company's consolidated net profit surged 29% to Rs 463 crore on 8% growth in revenue to Rs 2843 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Thursday, 24 July 2014. The results are as per International Generally Accepted Accounting Principles (IGAAP). Bharti Infratel's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) rose 13% to Rs 1185 crore in Q1 June 2014 over Q1 June 2013.
Biocon fell 5.4%. The company's consolidated net profit rose 10.06% to Rs 102.91 crore on 2.60% increase in total income to Rs 741.95 crore in Q1 June 2014 over Q1 June 2013. The company announced the result after market hours on Thursday, 24 July 2014.
Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 9% to Rs 191 crore in Q1 June 2014 over Q1 June 2013.
Revenue from biopharmaceuticals rose 1% to Rs 547 crore in Q1 June 2014 over Q1 June 2013. Revenue from contract research rose 12% to Rs 172 crore in Q1 June 2014 over Q1 June 2013.
In its outlook, Biocon said that the inherent growth drivers for its business remain intact and will play out over the course of this year. The progress in its development pipeline (across biosimilars and novel molecules) will help some of its molecules to enter the clinic. However, these milestones are subject to various external dynamics including the business and clinical trial environment in the country. The company said it continues to make investments across infrastructure and people, to support its growth and work steadfastly to deliver strong, sustained value growth to its stakeholders.
PI Industries spurted 6.35% after net profit surged 48% to Rs 71.74 crore on 16% growth in revenue to Rs 471.20 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Thursday, 24 July 2014. PI Industries attributed the growth in top line during the quarter to compact portfolio of niche, high-potential products domestically which worked in the company's favour though less than conducive agro-climatic conditions in parts of the country have moderated the performance expectations.
The Sensex and the 50-ubit CNX Nifty, both, hit record high amid initial volatility. Key benchmark indices lost ground in morning trade. Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade.
Investors are keeping a watch of crude oil prices amid fears geopolitical tension in the Middle East and Ukraine could push oil prices higher. India imports almost 80% of its crude oil requirements. Brent crude futures for September delivery were up 14 cents at $107.21 a barrel. The contract had closed 96 cents lower on Thursday, 24 July 2014.
The death toll in Gaza's fighting has continued to rise, with over 800 Palestinians and 33 Israelis killed since 8 July 2014, according to reports. At least 13 people were killed and more than 200 injured when a UN-run school used as a shelter came under fire in Gaza on Thursday, 24 July 2014, reports said. Israel launched its military offensive against Gaza on 8 July with the declared objective of stopping Hamas firing rockets into Israel.
Meanwhile, the US reportedly said on Thursday, 24 July 2014, that it has evidence that Russia has fired artillery across the border targeting Ukrainian military positions. Russia has frequently denied sending any rocket launchers into Ukraine. Russia is facing international pressure after Malaysia Airlines flight MH17 crashed in eastern Ukraine on 17 July, with pro-Russian rebels widely accused of shooting it down.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.1425, compared with its close of 60.11 on Thursday, 24 July 2014.
The monsoon rains were reportedly 24% above average in the week ended July 23. The annual monsoon arrived over the southern Kerala coast on 6 June, and then covered the entire country on 17 July. Rains are vital to India's farm sector, which accounts for about 14% of the country's nearly $2 trillion economy. Two-thirds of its 1.2 billion population lives in rural areas.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 282.44 crore on Thursday, 24 July 2014, as per provisional data from the stock exchanges.
Asian stocks fell today, 25 July 2014, on geopolitical tension in the Middle East and Ukraine. Key benchmark indices in Hong Kong, Indonesia, Singapore and Taiwan were off 0.03% to 0.99%. Key benchmark indices in China, Japan and South Korea were up by 0.36% to 0.86%.
Trading in US index futures indicated that the Dow could fall 10 points at the opening bell on Friday, 25 July 2014. US stocks finished a quiet session mostly flat on Thursday, 24 July 2014, as earnings painted a mixed picture of the economy, though the S&P 500 index set another record closing high.
The number of Americans filing applications for unemployment benefits dropped last week to the lowest level in more than eight years, reflecting what could be a pickup in auto making during a typically slow time of year. Jobless claims fell by 19,000 to 284,000 in the week ended July 19, the fewest since February 2006 and lower than forecast, a Labor Department report showed in Washington.
Fewer US new homes than forecast were sold in June and data for the prior month was revised down by a record, painting a troubling picture of a market struggling to gain traction. Sales declined 8.1% to a 406,000 annualized pace, the fewest since March and lower than forecast, Commerce Department figures showed in Washington. That followed a May rate of 442,000.
The International Monetary Fund yesterday, 24 July 2014, lowered its outlook for global growth this year as expansion rates from China to the US weaken and military conflicts from Ukraine to the Middle East raise the risk of a surge in oil prices. The world economy will expand 3.4% in 2014, the IMF said, less than its 3.6% prediction in April and stronger than last year's 3.2%. Next year, growth will be 4% compared with an April forecast for 3.9%, the fund said.
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