A bout of volatility was witnessed as key benchmark indices extended gains after trimming intraday gains in afternoon trade. Gains in European stocks aided upmove on the domestic bourses. The barometer index, the S&P BSE Sensex, retained the psychological 26,000 mark which it had regained earlier during the day. The Sensex was currently up 132.16 points or 0.51% at 26,131.50. The market breadth indicating the overall health of the market was negative. Foreign portfolio investors sold shares worth a net Rs 1128.37 crore yesterday, 16 October 2014, as per provisional data.
Bank stocks rose on renewed buying. Shares of private sector bank IndusInd Bank scaled record high. Capital goods stocks were in demand on renewed buying. Crompton Greaves edged higher amid volatility after good Q2 earnings. 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". CMC slumped after the company said its board of directors approved a scheme of amalgamation of the company with TCS. Zee Entertainment Enterprises hit 52-week high ahead of its Q2 results today, 17 October 2014.
Earlier, key indices had drifted lower in mid-morning trade after a range bound movement in morning trade. Before that, key indices had bounces back after a weak opening.
In overseas markets, European stocks edged higher as an ailing euro-area economy increases pressure on policy makers to provide more stimulus measures. 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 reversed gains on speculation that Saudi Arabia and other members of the Organization of Petroleum Exporting Countries will hold off from supply cuts.
In the foreign exchange market, the rupee edged higher against the dollar, tracking stronger Asian currencies.
At 13:15 IST, the S&P BSE Sensex was up 132.16 points or 0.51% at 26,131.50. The index jumped 134.58 points at the day's high of 26,133.92 in afternoon trade. The index lost 88.57 points at the day's low of 25,910.77 in mid-morning trade, its lowest level since 13 August 2014.
The CNX Nifty was up 40.35 points or 0.52% at 7,788.55. The index hit a high of 7,789.60 in intraday trade. The index hit a low of 7,723.85 in intraday trade, its lowest level since 13 August 2014.
The BSE Mid-Cap index was up 21.07 points or 0.23% at 9,265.02. The BSE Small-Cap index was off 29.61 points or 0.29% at 10,313.48. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,415 shares dropped while 1,119 shares rose. A total of 101 shares were unchanged.
The total turnover on BSE amounted to Rs 1861 crore by 13:15 IST.
Capital goods stocks were in demand on renewed buying. Bharat Heavy Electricals (Bhel) (up 3.04%), BEML (up 0.12%), Bharat Electronics (up 1.78%), L&T (up 1.52%), and Thermax (up 1.86%) gained. ABB India fell 1.32%.
Crompton Greaves rose 2.57% to Rs 193.55. The stock was volatile. The stock hit a high of Rs 196 and a low of Rs 181.80 so far in the day.
On a consolidated basis, Crompton Greaves reported 19.14% rise in net profit to Rs 69.59 crore on 6.16% growth in total income to Rs 3475.79 crore in Q2 September 2014 over Q2 September 2014. The result was announced after market hours on Thursday, 16 October 2014.
Crompton Greaves said that the Scheme of demerger of the Consumer Products Business Unit of the company into Crompton Greaves' wholly owned subsidiary Crompton Consumer Products was approved by the board of directors at its meeting held on Thursday, 16 October 2014. The Scheme will come into effect from the Appointed Date of 1 April 2015, subject to receipt of all Regulatory approvals.
The board also approved an increase in the investment limit for foreign institutional investors (FIIs) and foreign portfolio investors (FPIs) upto 100% of the paid-up equity share capital of the company pursuant to the provisions of Foreign Exchange Management Act, 1999, and the Foreign Exchange Management (Transfer or issue of Security by a Person Resident Outside India) Regulations, 2000.
As part of its continuous asset optimisation initiatives, the board of directors of the company has approved entering into a definitive agreement for sale of a portion of its land parcel at Kanjurmarg, admeasuring approx 8 acres to Evie Real Estate for an aggregate sum of Rs 302.26 crore, Crompton Greaves added.
Siemens rose 1.25%. 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.
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 7.79% at Rs 2,470.45. The stock hit a high of Rs 2,509.50 and a low of Rs 2,451 so far during the day. On BSE, 3.67 lakh shares changed 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.
CMC tumbled 13.7% at Rs 1,888. The company reported 30.07% rise in consolidated net profit to Rs 75.99 crore on 4.05% growth in income from operations to Rs 616.68 crore in Q2 September 2014 over Q1 June 2014. The result was announced after market hours yesterday, 16 October 2014.
Meanwhile, TCS and CMC in a joint statement after market hours on Thursday, 16 October 2014, said that the board of directors of TCS and CMC, a subsidiary of TCS, at a meeting held on Thursday, 16 October 2014, have approved the scheme of amalgamation of CMC with TCS. As per the terms of the scheme, shareholders of CMC (other than TCS) will receive 79 equity shares of Rs 1 each of TCS for every 100 equity shares of Rs 10 each of CMC held by them.
Bank stocks rose on renewed buying. Among private bank stocks, ICICI Bank (up 1.89%), Yes Bank (up 1.38%), HDFC Bank (up 2.84%) and Kotak Mahindra Bank (up 0.68%) gained.
Axis Bank rose 1.85% ahead of its Q2 September 2014 results today, 17 October 2014. The bank on Thursday, 16 October 2014, said that the bank 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.
IndusInd Bank rose 1.59% to Rs 656.20. The stock scaled a record high of Rs 658.05 in intraday trade. IndusInd Bank's net profit rose 30.27% to Rs 430.20 crore on 20.60% increase in total income to Rs 2937.03 crore in Q2 September 2014 over Q2 September 2013. The result was announced early this week.
Among PSU bank stocks, State Bank of India (SBI) (up 2.12%), Punjab National Bank (up 0.82%), Bank of Baroda (up 0.7%), Bank of India (up 2.63%) and Union Bank of India (up 4.75%) gained.
Zee Entertainment Enterprises gained 4.46% to Rs 326.80 after hitting a 52-week high of Rs 329.50 in intraday trade. The company announces its Q2 results today, 17 October 2014.
Insecticides (India) jumped 6.34% after the company said that a meeting of the board of directors of the company will be held on 30 October 2014, to consider and recommend bonus issue. The company made announcement after market hours on Thursday, 16 October 2014. The board will also take on record company's Q2 results on 30 October 2014.
Supreme Petrochem lost 7.27% after net profit fell 59.55% to Rs 10.74 crore on 11.40% decline in net sales to Rs 694.23 crore in Q1 September 2014 over Q1 September 2013. The result was announced after market hours on Thursday, 16 October 2014.
Rallis India dropped 5.9% after the company's consolidated net profit fell 1.76% to Rs 73.43 crore on 6.25% rise in total income to Rs 642.71 crore in Q2 September 2014 over Q2 September 2013. The company announced Q2 results after market hours on Thursday, 16 October 2014.
Aban Offshore rose 1.73% to Rs 582.35 on bargain hunting after the stock fell 7.89% in the preceding three trading sessions to Rs 572.45 on 16 October 2014 from a recent high of Rs 621.50 on 10 October 2014.
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 61.575, compared with its close of 61.84 during the previous trading session.
Reserve Bank of India (RBI) Governor Raghuram Rajan said in Hyderabad yesterday, 16 October 2014, that the drop in bond yields is partly signaling RBI's success in controlling inflation. The RBI is targeting consumer price inflation of 8% by January 2015 and 6% by January 2016.
Brent crude oil prices reversed gains on speculation that Saudi Arabia and other members of the Organization of Petroleum Exporting Countries will hold off from supply cuts. Brent for December settlement was off 7 cents at $85.75 a barrel. The contract had risen $1.70 a barrel to settle at $85.82 a barrel yesterday, 16 October 2014.
Lower crude oil prices will help India in containing its fiscal deficit, current account deficit and fuel price inflation. India imports 80% of its crude oil requirement.
European stocks climbed today, 17 October 2014, as an ailing euro-area economy increases pressure on policy makers to provide more stimulus measures. Key benchmark indices in UK, France and Germany were up 0.75% to 1.39%.
German Chancellor Angela Merkel told lawmakers in Berlin yesterday, 16 October 2014, that existing economic aid had been underused and now wasn't the moment to ease up on the fiscal discipline she credits with bringing stability to the continent.
Asian stocks were mixed today, 17 October 2014. Key indices in Japan, China, Taiwan, and South Korea were off 0.65% to 1.4%. Key indices in Hong Kong, Singapore and Indonesia were up 0.12% to 1.44%.
China is expected to release third-quarter economic growth figures on Tuesday, 21 October 2014.
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 57 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.
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