Don’t miss the latest developments in business and finance.

Weak market breadth

Image
Capital Market
Last Updated : Jul 14 2017 | 7:13 PM IST

Key benchmark indices extended recovery in early afternoon trade. At 12:30 IST, the barometer index, the S&P BSE Sensex, was down 37.48 points or 0.12% at 31,999.90. The Nifty index was down 16.70 points or 0.17% at 9,875. The Sensex was currently trading a tad below the psychological 32,000 level after alternately swinging above and below that level so far during the day. Declines in index heavyweight ITC was almost offset by gains in Infosys.

Key benchmark indices edged lower in early trade weighed by poor Q1 result of IT major TCS. Key benchmark indices extended fall in morning trade. Stocks cut losses soon after hitting fresh intraday low in mid-morning trade.

The S&P BSE Mid-Cap index was up 0.06%, outperforming the Sensex. The S&P BSE Small-Cap index was off 0.3%. The fall in this index was higher than Sensex's decline in percentage terms.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 1,615 shares fell and 856 shares rose. A total of 124 shares were unchanged.

Index heavyweight and cigarette major ITC fell 0.93% to Rs 335.50. The stock hit a high of Rs 340 and low of Rs 335 so far during the day.

FMCG stocks saw mixed trend. GlaxoSmithkline Consumer Healthcare (down 0.27%), Colgate-Palmolive (India) (down 0.19%), Godrej Consumer Products (down 0.13%), Tata Global Beverages (down 0.6%), Jyothy Laboratories (down 1.36%), Bajaj Corp (down 1.99%) fell.

Marico (up 1.18%), Britannia Industries (up 0.03%), Dabur India (up 0.56%), Hindustan Unilever (up 0.03%), Nestle India (up 0.29%), Procter & Gamble Hygiene and Health Care (up 0.24%) rose.

More From This Section

Infosys advanced 1.13% after the company increased its revenue growth guidance in both dollar and rupee terms for FY 2018 at the time of announcing Q1 June 2017 results. Infosys' consolidated net profit fell 3.3% to Rs 3483 crore on 0.2% decline in revenue to Rs 17078 crore in Q1 June 2017 over Q4 March 2017. The results are as per International Financial Reporting Standards (IFRS) and was announced before market hours today, 14 July 2017.

The company expects its consolidated revenue to grow 7.1%-9.1% in dollar terms for the financial year ending March 2018 (FY 2018), which was higher than the revenue growth guidance of 6.1%-8.1% issued by the company at the time of announcing Q4 March 2017 earnings.

The company expects its consolidated revenue to grow 3%-5% in Rupee terms for FY 2018, based on the exchange rates as of 30 June 2017. This was higher than the revenue growth guidance of 2.5%-4.5% issued by the company at the time of announcing Q4 March 2017 earnings.

Vishal Sikka, CEO of Infosys said that the company's persistent focus on execution in Q1 was reflected in broad-based performance on multiple fronts - revenue growth, resilient margins despite multiple headwinds, healthy cash generation and overall business results.

The company's COO U B Pravin Rao commented that the company had broad-based growth across geographical and industry segments. The company's initiatives on operational discipline led to record levels of utilization and better realization during the quarter, he added.

Biocon surged 7.86% after the company said that the US drug regulatory committee recommended approval of Mylan N.V. and Biocon's proposed biosimilar trastuzumab. The announcement was made before market hours today, 14 July 2017.

Mylan N.V. and Biocon announced that the US Food and Drug Administration (FDA) Oncologic Drugs Advisory Committee (ODAC) recommended approval of the companies' proposed biosimilar trastuzumab. The committee voted 16-0 in support of eligible indications of the reference product, Herceptin, which include HER2-positive breast cancer in the metastatic and adjuvant settings.

Mylan and Biocon's proposed biosimilar trastuzumab also is under review by regulatory authorities in Australia, Canada, Europe and several emerging markets.

Pricol rose 2.36% after the company said it will acquire 100% stake in wiping systems business of Ashok Piramal Group's PMP Auto Components. The announcement was made after market hours yesterday, 13 July 2017.

The acquisition will help Pricol diversify its product offerings and provide access to manufacturing facilities in Europe and North America, where it currently does not have a footprint, helping it cement its status as a global supplier. Additionally, with this acquisition, Pricol will increase its presence with passenger vehicles customers diversifying revenue streams and opening up multiple cross selling opportunities.

Overseas, most Asian stocks were trading higher in anticipation of US inflation data and earnings from some of the large banks, Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup Inc.

In US, the Dow yesterday, 13 July 2017 closed at a record for the 24th time in 2017, as gains in the financial sector helped the broader market book modest gains. The Dow Jones Industrial Average, rose 20.95 points, or 0.1%, to close at 21,553.09. The S&P 500 index, gained 4.58 points, or 0.2%, to end at 2,447.83. The Nasdaq Composite Index finished up 13.27 points, or 0.2%, at 6,274.44.

US Federal Reserve Chairwoman Janet Yellen reiterated a dovish stance in her second day of congressional testimony yesterday, 13 July 2017. Yellen told a Senate Banking Committee yesterday, 13 July 2017 the federal-funds rate wouldn't need to rise significantly to get to a neutral policy stance.

Powered by Capital Market - Live News

Also Read

First Published: Jul 14 2017 | 12:35 PM IST

Next Story