Losses for banking and metal sector stocks along with index heavyweights L&T and Reliance Industries (RIL) pushed key benchmark indices lower. The barometer index, the S&P BSE Sensex, fell 81.14 points or 0.33% to settle at 24,772.97. The 50-unit Nifty 50 index fell 25.60 points or 0.34% to settle at 7,536.80. The Sensex and the Nifty, both, staged a strong rebound from an initial steep slide triggered by a fresh setback in global stocks. The Sensex, however, failed to retain the psychological 25,000 level. The index pierced that mark for a brief period in intraday trade. The broad market depicted weakness.
Index heavyweight and IT major Infosys jumped after the company raised its revenue growth guidance for the year ending 31 March 2016 (FY 2016) at the time of announcement of its third quarter results during market hours. Metal shares declined amid continued worries about China's stalling economy. Tata Steel fell after the company announced that the sharp fall in international steel prices has triggered a downgrade of the company's corporate credit rating by Standard and Poor (S&P) by 1 notch. Power Grid Corporation of India edged higher after the company's board of directors accorded approval to investment proposals aggregating Rs 2510.34 crore for various transmission projects.
In overseas stock markets, European shares declined after oil price volatility helped drive Wall Street to its biggest drop in three months overnight. Asian stocks edged lower, with investor sentiment hit adversely due to a selloff in US stocks overnight. Attacks in Indonesia's capital Jakarta also soured sentiment in Asian stock markets. US stocks slumped yesterday, 13 January 2016, as a rout in oil prices heightened worries about the global economy.
The Sensex fell 81.14 points or 0.33% to settle at 24,772.97, its lowest closing level since 12 January 2016. The index fell 380.89 points or 1.53% at the day's low of 24,473.22. The index rose 164.35 points or 0.66% at the day's high of 25,018.46.
The Nifty fell 25.60 points or 0.34% to settle at 7,536.80, its lowest closing level since 12 January 2016. The index fell 118.60 points or 1.56% at the day's low of 7,443.80. The index rose 42.40 points or 0.56% at the day's high of 7,604.80.
The BSE Mid-Cap index lost 1%. The BSE Small-Cap index declined 1.27%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The broad market depicted weakness. More than two stocks fell for each stock that rose on BSE. 1,883 shares fell and 805 shares rose. A total of 171 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Basic Materials index (down 1.59%), the BSE Finance index (down 1.41%), the BSE Industrials index (down 1.65%), the BSE Utilities index (down 1.12%), the BSE Auto index (down 1.27%), the BSE Bankex index (down 1.67%), the BSE Capital Goods index (down 1.77%), the BSE Consumer Durables index (down 1.08%), the BSE Metal index (down 1.19%), the BSE Power index (down 1.32%) and the BSE Realty index (down 1.46%) underperformed the Sensex. The S&P BSE IT index (up 1.93%) and the BSE Teck index (up 1.54%) outperformed the Sensex.
Bank stocks declined. Among private sector banks, Axis Bank (down 3.9%), IndusInd Bank (down 2.01%), ICICI Bank (down 1.47%), Yes Bank (down 1.48%), Kotak Mahindra Bank (down 0.32%) and HDFC Bank (down 0.92%) edged lower.
Among public sector banks, IDBI Bank (down 5.84%), Canara Bank (down 3.94%), Andhra Bank (down 3.97%), Union Bank of India (down 3.33%), State Bank of India (down 2.56%), Bank of India (down 1.8%), Bank of Baroda (down 0.72%) and Punjab National Bank (down 0.31%) edged lower.
Index heavyweight and IT major Infosys jumped after the company raised its revenue growth guidance for the year ending 31 March 2016 (FY 2016) at the time of announcement of its third quarter results during market hours today, 14 January 2016. The stock rose 4.28% at Rs 1,128.70. The stock was volatile. The stock hit a high of Rs 1,155 and a low of Rs 1,054.95 in intraday trade. The counter clocked volumes of 17.42 lakh shares, compared with an average volume of 1.45 lakh shares in the past one quarter.
Infosys' consolidated net profit as per International Financial Reporting Standards (IFRS) rose 2% to Rs 3465 crore on 1.7% increase in revenue to Rs 15902 crore in Q3 December 2015 over Q2 September 2015. Infosys now expects its revenue to grow 8.9%-9.3% in dollar terms for the year ending 31 March 2016 (FY 2016). At the time of announcement of Q2 September 2015 results, Infosys had forecast 6.4%-8.4% growth in the company's revenue in dollar terms for FY 2016. The revenue growth guidance in constant currency terms has been raised to 12.8%-13.2% from previous 10%-12%.
Thanks to weakness of the rupee against the dollar, Infosys has raised revenue growth guidance in rupee terms. Infosys now expects its revenue to grow 16.2%-16.6% in rupee terms for the year ending 31 March 2016 (FY 2016). At the time of announcement of Q2 September 2015 results, Infosys had forecast 13.1%-15.1% growth in the company's revenue in rupee terms for FY 2016. The revised guidance is based on rupee-dollar exchange rate of 66.16.
Index heavyweight and engineering & construction major L&T fell 1.98% at Rs 1,134.90. The stock hit a high of Rs 1,158.05 and a low of Rs 1,111.15 in intraday trade. The company will announce Q3 December 2015 results on 29 January 2016.
Index heavyweight Reliance Industries (RIL) fell 1.5% at Rs 1,061.20. The stock hit a high of Rs 1,081 and a low of Rs 1,052.40 in intraday trade.
Metal shares declined amid continued worries about China's stalling economy. Jindal Steel & Power (down 7.17%), Hindalco Industries (down 2.93%), Vedanta (down 1.98%), Steel Authority of India (down 1.44%), NMDC (down 0.79%), National Aluminium Company (down 0.81%) and JSW Steel (down 0.18%) edged lower. Hindustan Zinc (up 0.11%) edged higher. China is the world's largest consumer of steel, copper and aluminum.
Tata Steel fell after the company announced after market hours yesterday, 13 January 2016, that the sharp fall in international steel prices has triggered a downgrade of the company's corporate credit rating by Standard and Poor (S&P) by 1 notch. The stock fell 3.36% at Rs 238.70.
Most pharmaceutical shares edged lower. Wockhardt (down 3.62%), Strides Shasun (down 2.5%), GlaxoSmithkline Pharmaceuticals (down 1.61%), Ipca Laboratories (down 1.43%), Divi's Laboratories (down 1.16%), Sun Pharmaceutical Industries (down 0.71%) and Glenmark Pharmaceuticals (down 0.63%) edged lower. Lupin (up 3.02%), Dr Reddy's Laboratories (up 0.84%), Cipla (up 0.84%) and Aurobindo Pharma (up 0.86%) edged higher.
Cadila Healthcare declined 1.41% at Rs 315.40. The government has approved the company's proposal for fresh equity infusion of upto Rs 5000 crore under FDI route by way of Qualified Institutional Placement on a private placement basis for financial expansion of the business.
Auto stocks declined. Mahindra & Mahindra (down 1.45%), Ashok Leyland (down 1.61%), Eicher Motors (down 0.41%), Hero MotoCorp (down 1.52%), Bajaj Auto (down 0.08%) and TVS Motor Company (down 2.33%) edged lower.
Tata Motors declined 2.63% at Rs 354.85. The stock hit a high of Rs 358.80 and a low of Rs 346.85 in intraday trade. The company announced after market hours yesterday, 13 January 2016, that a meeting of the board of directors of the company will be held on 18 January 2016 to consider and approve buyback of unsecured non-convertible debentures aggregating Rs 200 crore due to mature on 30 November 2018. The board will also consider buyback of unsecured non-convertible debentures aggregating Rs 250 crore due to mature on 28 May 2019. The buyback is part of the company's debt restructuring programme to ensure balanced maturity profile and/or better terms that would include lower cost of debt.
Maruti Suzuki India (MSIL) was down 1.02% at Rs 4,249.65. The stock hit a high of Rs 2,284.85 and a low of Rs 4,214.60 in intraday trade. The company announced during market hours today, 14 January 2016, that it has added driver airbag as an option in all variants of Alto 800 and Alto K10. Besides driver airbag, the left outside rear mirror is also available across all variants of Alto, MSIL said.
Ambuja Cements was off 0.03% at Rs 198. ACC was off 0.93%. The government has deferred decision on approval sought by Ambuja Cements for the acquisition of 24% shares in its holding company, Holcim (India) from the latter's holding company Holderind Investments (NR) and subsequent reverse merger through a share swap.
Idea Cellular was off 1.44% at Rs 119.40. The stock hit a high of Rs 121.65 and a low of Rs 117.10 in intraday trade. Idea Cellular during trading hours today, 14 January 2016, announced the launch of its high speed 4G LTE services across four more states in India (three Telecom Circles) - Chhattisgarh, Haryana, Madhya Pradesh and Punjab. With this launch, the company has expanded its 4G LTE service footprint to 7 telecom service areas. Idea's 4G LTE services will be available across 183 towns in these 7 telecom service areas by 31 January 2016.
Power Grid Corporation of India edged higher after the company's board of directors accorded approval to investment proposals aggregating Rs 2510.34 crore for various transmission projects. The stock rose 1.03% at Rs 142.50. The company after market hours yesterday, 13 January 2016, announced that the board of directors of the company at its meeting held on 12 January 2016 accorded approval to investment proposals aggregating Rs 2510.34 crore for various transmission projects, including Rs 1455.47 crore for strengthening its network in the southern region.
The Sensex has fallen 1,344.57 points or 5.14% in this month so far (till 14 January 2016). The Sensex has gained 385.28 points or 1.57% from 52-week low of 24,387.69 hit yesterday, 13 January 2016. The Sensex is off 5,251.77 points or 17.49% from a record high of 30,024.74 hit on 4 March 2015.
On the macro front, the latest data showed that inflation based on the wholesale price index (WPI) remained in negative zone last month. WPI inflation stood at minus 0.73% in December 2015, compared with a reading of negative 1.99% in November 2015. Meanwhile, the headline WPI for October 2015 was revised to a reading of minus 3.7% from 3.81% reported earlier.
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