A bout of volatility was witnessed as key benchmark indices slipped into the red once again after regaining positive terrain after opening lower. The barometer index, the S&P BSE Sensex and the 50-ubit CNX Nifty, both, hit record high. The Sensex was down 17.05 points or 0.06%, off about 45 points from the day's high and up about 10 points from the day's low. The market breadth indicating the overall health of the market was positive.
Wipro dropped after the company reported a muted 1.2% growth in IT services revenue on sequential basis in Q1 June 2014. Ambuja Cements rose after reporting strong Q1 results. Tata Steel gained after the company announced a successful dual tranche Reg S issuance of $1.5 billion of unsecured bonds in the international markets. Ranbaxy Laboratories rose after the company announced that it has signed a licensing agreement with Cipher Pharmaceuticals Inc. to exclusively market, sell and distribute Cipher's isotretinoin capsules in Brazil. Punjab National Bank declined ahead of its Q1 result today, 25 July 2014. 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 9:30 IST, the S&P BSE Sensex was down 17.05 points or 0.06% to 26,254.80. The index fell 25.15 points at the day's low of 26.246.70 in early 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 8.80 points or 0.11% to 7,821.80. The index hit a low of 7,820.35 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 positive. On BSE, 733 shares rose and 583 shares fell. A total of 47shares were unchanged.
The BSE Mid-Cap index was up 9.50 points or 0.1% at 9,302.96. The BSE Small-Cap index was up 11.30 points or 0.11% at 10,240.66. Both these indices outperformed the Sensex.
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Punjab National Bank declined 0.41% ahead of its Q1 result today, 25 July 2014.
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 4.2%. 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.
Tech Mahindra declined 0.63% as the stock turned ex-dividend today, 25 July 2014, for dividend of Rs 20 per share for the year ended 31 March 2014.
Ranbaxy Laboratories rose 1.02% after the company announced after market hours on Thursday, 24 July 2014, that it has signed a licensing agreement with Cipher Pharmaceuticals Inc. to exclusively market, sell and distribute Cipher's isotretinoin capsules in Brazil. The agreement extends the current relationship with Cipher, under which Ranbaxy is marketing and distributing Cipher's isotretinoin product in the United States under the brand Absorica.
Under the terms of the agreement, Cipher will receive an upfront payment and is eligible for additional pre-commercial milestone payments. Cipher will be supplying the product and Ranbaxy will be responsible for gaining regulatory approval of the product in Brazil. Ranbaxy plans to promote the product through a brand dermatology division in Brazil. The isotretinoin formulation is expected to be a flagship product in Ranbaxy's dermatology franchise in Brazil, once it achieves regulatory approval.
Cipher's isotretinoin product is a novel formulation of isotretinoin, which is used in the treatment of severe recalcitrant nodular acne. Isotretinoin is the most effective severe acne therapy available to teenagers who suffer from acne.
Sun Pharmaceutical Industries gained 1.26%. In April 2014, Sun Pharma acquired Ranbaxy in $4 billion landmark transaction.
Tata Steel gained 0.24% after the company announced before trading hours a successful dual tranche Reg S issuance of $1.5 billion of unsecured bonds in the international markets. The issue comprises $500 million 4.85% Unsecured Bonds due on 31 January 2020 and $1 billion 5.95% Unsecured Bonds due on 31 July 2024 by Abja Investment Co Pte, a wholly owned subsidiary of Tata Steel incorporated in Singapore. The issue is guaranteed by Tata Steel. The bonds are rated BB+ by Fitch and BB by S&P and will be listed on the Frankfurt Stock Exchange.
Tata Steel said that a tremendous response for the offering enabled the issue to be priced about 50 basis points (bps) tighter than the initial price thoughts on the both the tranches. Tata Steel said that the proceeds of the bond offering will be deployed as per the strategic plan of the company, including off shore investment. The successful bond issue enables the company to diversify the investor base, lengthen maturity profile and optimise the financing and capital structure, the steel major said.
Ambuja Cements rose 0.48% on strong Q1 results. The company after market hours on Thursday, 24 July 2014 reported 26.06% rise in net profit to Rs 408.70 crore on 16.61% rise in total income to Rs 2858.14 crore in Q2 June 2014 over Q2 June 2013. Operating earnings before interest, taxation, depreciation and amortization (EBITDA) grew by 12.4% to Rs 588 crore in Q2 June 2014 over Q2 June 2013.
In its outlook, Ambuja Cements said that although macro-economic condition remains challenging, construction activity is expected to pick up pace considering favorable announcement in the Union Budget 2014-15 for infrastructure and housing. The company continues to work on improving efficiencies and focus on customer and commercial excellence. The company believes that these initiatives will help to preserve and also improve performance, Ambuja Cements said.
Ambuja Cements' board of directors at its meeting held on Thursday, 24 July 2014, has approved payment of interim dividend of Rs 1.80 per share.
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 edged higher today, 25 July 2014. Key benchmark indices in Hong Kong, China, Japan and South Korea were up by 0.02% to 0.57%. Key benchmark indices in Indonesia, Singapore and Taiwan fell by 0.25% to 0.84%.
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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