Amid intense volatility during the second half of the trading session, key benchmark indices registered small losses at close. After a sharp surge in mid-afternoon trade, key benchmark indices slipped into the red from green later. The barometer index, the S&P BSE Sensex, jumped 394.72 points at the day's high of 29.277.83 in mid-afternoon trade. The index fell 129.82 points at the day's low of 28,753.29 in late trade. The Sensex and the 50-unit CNX Nifty, both, hit their lowest closing level in more than two weeks. The market breadth indicating the overall health of the market was weak. The Sensex fell 32.14 points or 0.11% to settle at 28,850.97. The BSE Mid-Cap index fell 1.28%. The BSE Small-Cap index declined 1.31%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Key benchmark indices dropped for the fifth trading session in a row today, 5 February 2015.
IT stocks edged higher on renewed buying. Public sector oil marketing companies (PSU OMCs) gained on lower crude oil prices. Shares of companies engaged in oil exploration & production (E&P) declined as crude oil prices declined sharply yesterday, 4 February 2015. Telecom stocks declined. Shares of index heavyweights ITC and HDFC edged higher. Shares of public sector banks edged lower. Shares of private sector banks were mixed. HDFC Bank advanced after the bank announced the opening of the issue of shares to qualified institutional investors and also the issue of shares through American Depository Receipts (ADRs). Godrej Consumer Products gained after declaring good Q3 result.
Reserve Bank of India (RBI) Governor Raghuram Rajan said in an interview to a newspaper published today, 5 February 2015, that the RBI still has a way to go in fighting inflation and it is important that the central bank has the credibility to bring down inflation if it picks up.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 21.22 crore from the secondary equity market yesterday, 4 February 2015, as per data from Central Depository Services.
In the overseas markets, European stocks edged lower after the European Central Bank fueled an increasingly tense standoff between the Greek government and its international creditors by declaring it would stop accepting Greek bonds as collateral for central bank loans. Asian stocks edged lower after the European Central Bank (ECB) yesterday, 4 February 2015, abruptly pulled back its soft treatment of Greek debt and cancelled its acceptance of the country's bonds in return for funding. Most US stocks dropped yesterday, 4 February 2015, after the ECB pulled back its soft treatment of Greek debt and cancelled its acceptance of the country's bonds in return for funding.
Ukraine's central bank today, 5 February 2015, increased its key rate to 19.5% from 14% and scrapped foreign currency auctions, moving the battered local currency a step closer to a free float in an effort to steady the market.
Closer home, the Indian rupee edged higher against the dollar in choppy trade.
Brent crude oil futures edged higher in choppy trade.
The S&P BSE Sensex fell 32.14 points or 0.11% to settle at 28,850.97, its lowest closing level since 20 January 2015. The index fell 129.82 points at the day's low of 28,753.29 in late trade. The index jumped 394.72 points at the day's high of 29.277.83 in mid-afternoon trade, its highest level since 30 January 2015.
The CNX Nifty fell 12 points or 0.14% to settle at 8,711.70, its lowest closing level since 20 January 2015. The index hit a low of 8,683.65 in intraday trade. The index hit a high of 8,838.45 in intraday trade, its highest level since 2 February 2015.
The BSE Mid-Cap index fell 137.81 points or 1.28% to settle at 10,603.57. The BSE Small-Cap index fell 149.26 points or 1.31% to settle at 11,283.14. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was weak. On BSE, 1,873 shares declined and 1,024 shares advanced. A total of 119 shares were unchanged.
The total turnover on BSE amounted to Rs 3679 crore, lower than turnover of Rs 4216.09 crore during the previous trading session.
Among sectoral indices on BSE, the S&P BSE Bankex (down 0.47%), the S&P BSE Auto index (down 0.68%), the S&P BSE Capital Goods index (down 0.84%), the S&P BSE Healthcare index (up 0.93%), the S&P BSE Oil & Gas index (down 1.15%), the S&P BSE Metal index (down 1.9%), the S&P BSE Consumer Durables index (down 2.25%), the S&P BSE Realty index (down 2.74%) and the S&P BSE Power index (down 2.8%), underperformed the Sensex.
The S&P BSE IT index (up 2.09%), the S&P BSE Teck index (up 1.34%) and the S&P BSE FMCG index (up 0.59%) outperformed the Sensex.
Index heavyweight L&T fell 0.83% at Rs 1,675.95. The stock hit a high of Rs 1,705 and a low of Rs 1,675. L&T during market hours today, 5 Feburary 2015, in a clarification with regard to news item titled "L&T in talks with Hyundai to collaborate on LNG carriers", said that it has no comments to make on market speculation. However, L&T said that it is keen to undertake construction of complex commercial ships such as LPG & LNG carriers, chemical tankers etc. in the shipyard at Kattupallli. L&T said that it has been interacting with concerned companies and customers.
Another index heavyweight ITC rose 0.26% at Rs 367.50.
Shares of index heavyweight and housing finance major HDFC rose 0.75% at Rs 1,242.40
Private sector bank stocks were mixed. ICICI Bank (down 2.57%), Kotak Mahindra Bank (down 0.05%) and ING Vysya Bank (down 0.32%) fell. Axis Bank (up 1.47%), Yes Bank (up 1.15%) and IndusInd Bank (up 0.19%) rose.
HDFC Bank advanced after the bank announced the opening of the issue of shares to qualified institutional investors and also the issue of shares through American Depository Receipts (ADRs). The stock rose 0.82% at Rs 1,075.95. The stock hit high of Rs 1,092 and low of Rs 1,070.25. HDFC Bank today, 5 February 2015, said that the bank is raising funds through a combination of share sales to qualified institutional investors and the issue of American Depository Receipts (ADRs). A special committee for the bank has approved raising upto Rs 2000 crore through issue of equity shares to qualified institutional investors. The bank will raise upto Rs 8500 crore through issue of American Depository Receipts (ADRs). The floor price for QIP issue and the ADR issue is fixed at Rs 1,061.84 per equity share.
State-run bank stocks declined. Among PSU bank stocks, Bank of Baroda (down 4.6%), Canara Bank (down 5.74%), Bank of India (down 3.06%), Union Bank of India (down 3.87%), State Bank of India (SBI) (down 0.84%) and Punjab National Bank (down 4.21%) dropped.
Allahabad Bank dropped 3.25%. Allahabad Bank's net profit fell 49.56% to Rs 164.11 crore 1.51% increase in total income to Rs 5386.79 crore in Q3 December 2014 over Q3 December 2013. The result was announced during trading hours today, 5 February 2015.
Allahabad Bank's ratio of net non-performing assets (NPAs) to net advances stood at 3.89% as on 31 December 2014, compared with 3.54% as on 30 September 2014 and 4.19% as on 31 December 2013.
The bank's ratio of gross NPAs to gross advances stood at 5.46% as on 31 December 2014, compared with 5.36% as on 30 September 2014 and 5.47% as on 31 December 2013.
Provisions and contingencies rose 15.58% to Rs 643.66 crore in Q3 December 2014 over Q3 December 2013. The provisioning coverage ratio as on 31 December 2014 stood at 52.05%.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 10.02% as on 31 December 2014, compared with 9.99% as on 30 September 2014 and 10.46% as on 31 December 2013.
UCO Bank shed 6.14% after net profit dropped 3.47% to Rs 303.59 crore on 10.74% rise in total income to Rs 5447.39 crore in Q3 December 2014 over Q3 December 2013. The Q3 result was announced during market hours today, 5 February 2015.
UCO Bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 6.5% as on 31 December 2014, compared with 5.2% as on 30 September 2014 and 5.2% as on 31 December 2013.
The bank's ratio of net NPAs to net advances stood at 4.25% as on 31 December 2014, compared with 3.15% as on 30 September 2014 and 3.06% as on 31 December 2013.
Provisions and contingencies rose 11.81% to Rs 907.54 crore in Q3 December 2014 over Q3 December 2013. The provisioning coverage ratio as on 31 December 2014 stood at 48.82%.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 12.12% as on 31 December 2014, compared with 12.22% as on 30 September 2014 and 11.16% as on 31 December 2013.
UCO Bank said that the board of directors of the bank at its meeting held today, 5 February 2015, has approved a proposal for issue of 6.08 crore shares to Life Insurance Corporation of India on preferential basis at a price to be determined in accordance with Regulation 76 (1) of SEBI ICDR Regulations 2009 subject to necessary approvals from Reserve Bank of India and shareholders of the bank.
Sesa Sterlite fell 4.2% to Rs 207.50 on profit booking after the stock rose 9.28% in the preceding two trading sessions to Rs 216.60 on 4 February 2015, from a recent low of Rs 198.20 on 2 February 2015.
IT stocks edged higher on renewed buying. MindTree (up 1.09%), Wipro (up 3.34%), HCL Technologies (up 3.86%), TCS (up 1.83%), Tech Mahindra (up 0.49%), CMC (up 1.21%), Infosys (up 2.1%), and MphasiS (up 1.34%) edged higher.
Meanwhile, the Nasdaq-listed Cognizant Technology beat street estimates with its 6.2% revenue growth QoQ at $2.74 billion in Q4 December 2014, riding on a push from acquisition of US-based healthcare provider TriZetto and higher tech spending. The result was announced after market hours in India yesterday, 4 February 2015. Buoyed by the performance, the company raised its guidance for fiscal year 2015 to a revenue of at least $12.2 billion a 19% growth rate, compared to 16% increase it achieved in 2014.
Shares of public sector oil marketing companies (PSU OMCs) gained as crude oil prices tumbled yesterday, 4 February 2015. BPCL (up 3.52%) and HPCL (up 0.96%) edged higher. Indian Oil Corporation (down 0.97%) edged lower.
Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.
Shares of companies engaged in oil exploration & production (E&P) declined as crude oil prices declined sharply yesterday, 4 February 2015. ONGC (down 3.3%), Oil India (down 1.41%), Cairn India (down 2.82%), and Reliance Industries (down 0.75%) edged lower. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms.
Shares of state-run gas transmission and distribution firm GAIL (India) fell 1.7%. GAIL (India) bears a part of the subsidy burden of PSU OMCs on sale of LPG.
Telecom stocks declined. Mahanagar Telephone Nigam (down 5.11%), Reliance Communications (down 8.29%), Tata Teleservices (Maharashtra) (down 2.54%), and Idea Cellular (down 0.26%) edged lower.
Bharti Airtel fell 1.59% at Rs 362. The stock hit a high of Rs 372 and a low of Rs 360. Bharti Airtel's consolidated net profit surged 135.41% to Rs 1436.50 crore on 5.77% growth in total income to Rs 23228.10 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 4 February 2015.
Consolidated EBITDA rose 9.6% to Rs 7786 crore in Q3 December 2014 over Q3 December 2013. EBITDA margin expanded to 33.5% in Q3 December 2014, from 32.4% in Q3 December 2013.
Consolidated mobile data revenue rose 61.9% to Rs 2872 crore in Q3 December 2014 over Q3 December 2013, uplifted by higher data usage. Mobile data revenues now contribute more than 85% of the incremental revenues of the company, Bharti Airtel said.
Bharti Airtel's overall customer base rose 8.9% to 31.29 crore across 20 countries in Q3 December 2014 over Q3 December 2013.
Gopal Vittal, MD and CEO, India & South Asia, said that the company has remained focused on driving topline through stepped up customer acquisitions with continued focus on churn, ensuring pricing stability, and path-breaking innovations in mobile data.
Christian de Faria, MD and CEO, Africa, said that the company has maintained its focus on growing customer base and topline in a cost-efficient manner. Significant depreciation in most African currencies especially the Nigerian Naira has however depressed the reported results in dollar terms, Christian de Faria said.
Bharat Heavy Electricals (Bhel) fell 3.44% at Rs 275.30. Bhel during market hours today, 5 February 2015, said that the company has successfully commissioned a 270 megawatt (MW) coal based thermal power plant in Maharashtra. The unit was commissioned at RattanIndia Power's (formerly Indiabulls Power) upcoming thermal power project located at village Nandgaonpeth in Amravati district of Maharashtra. This is the third 270 MW unit commissioned by Bhel in Phase-1 of the project.
NHPC fell 1.5%. NHPC during market hours today, 5 February 2015 said that a subsidiary company of NHPC as a joint venture with Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has been incorporated in the name of Bundelkhand Saur Urja on 2 February 2015 for implementation of 50 megawatts (MW) grid connected solar power project in Uttar Pradesh.
SJVN rose 1.16%. SJVN's net profit rose 28.28% to Rs 270.60 crore on 47.13% growth in total income to Rs 642.94 crore in Q3 December 2014 over Q3 December 2013. The result was announced during market hours today, 5 February 2015. In view of the seasonal nature of business, the financial results for the quarter may not be comparable with the forthcoming quarters, SJVN said.
Power Grid Corporation of India (PGCIL) fell 2.19% at Rs 142.90. The stock hit a high of Rs 146.70 and a low of Rs 142.90. PGCIL during market hours today, 5 February 2015, in a clarification with regard to news items titled "PowerGrid wins in ministry's U-turn" and "Powergrid to get 8 new projects" said that as per the present guidelines notified by Government of India (GoI), all the interstate transmission projects are to be implemented with tariff based competitive route with few exemptions like transmission projects involving complex technology of 1,200 kv HVDC, works required to cater to urgent situation or required in compressed time schedule etc. As such, when transmission projects are required on urgent basis and implementation involves technical challenges, the decisions are taken for the transmission projects on nomination basis to Power Grid, the Central Transmission Utility, which has been mandated by EA 2003, Section 38-(2)-(c) to ensure development of an efficient, coordinated and economical system of inter-state transmission lines for smooth flow of electricity from generating stations to the load centres so that it is completed in shortest possible time, PGCIL said.
Accordingly, the Ministry of Power, GoI has assigned eight transmission schemes to PGCIL, the CTU under compressed time schedule through regulated tariff mechanism, PGCIL said.
Crompton Greaves fell 3.54%. With respect to media reports titled Advent leads race for Crompton arm, Crompton Greaves after market hours today, 5 February 2015, stated that the company has no information regarding the rumoured news.
Jindal Steel & Power (JSPL) (down 5.66%) and Hindalco Industries (down 2.33%) edged lower. According to reports, these two firms have bid aggressively for coal blocks. It may be recalled that the government promulgated a special ordinance for auction of coal blocks, which were cancelled by the Supreme Court in August last year, citing them illegal.
Godrej Consumer Products gained 4.97%. On a consolidated basis, the company reported 34.63% rise in net profit to Rs 263.57 crore on 12.41% rise in total income to Rs 2247.78 crore in Q3 December 2014 over Q3 December 2013. The result was announced during market hours today, 5 February 2015. EBITDA rose 27% to Rs 398 crore in Q3 December 2014 over Q3 December 2013. EBITDA margin improved 210 basis points to 17.9% in Q3 December 2014 from 15.8% in Q3 December 2013.
Godrej Consumer Products said India business grew by 12%, nearly 1.6 times of the overall household and personal care sector (HPC) growth. International business grew by 20% on an organic constant currency basis. Consolidated organic constant currency earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 28%, driven by a strong growth of 18% in the India business and 43% growth in EBITDA in the international business. GCPL continued to gain market share across its core categories across geographies. Organic constant currency EBITDA excludes Darling trademarks licensing fees and Ghana profitability aggregating to Rs 9 crore.
Commenting on the financial performance of Q3 December 2014, Adi Godrej, Chairman, Godrej Group, said that after a few quarters of sluggish growth, consumer demand in India started to show early signs of a recovery in Q3 December 2014. Organic constant currency operating earnings growth was even stronger at 28%, led by prudent cost management, benign raw material costs and the company's efforts to effectively leverage brand platforms, Adi Godrej said. The company expects growth in the second half of this fiscal year to be better than the first half, he added.
Aurobindo Pharma dropped 5.23%. The company's consolidated net profit declined 7.93% to Rs 384.35 crore on 49.34% growth in total income to Rs 3202.08 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours yesterday, 4 February 2015.
Realty stocks declined. DLF (down 2.43%), Indiabulls Real Estate (down 4.38%), Housing Development and Infrastructure (down 2.53%), D B Realty (down 4.95%), Unitech (down 13.25%), Sobha (down 1.44%), Oberoi Realty (down 1.05%) declined. Godrej Properties rose 2%.
Great Eastern Shipping Company (GE Shipping) dropped 6.37%. GE Shipping's consolidated net profit jumped 79.01% to Rs 181.70 crore on 19.07% growth in total income to Rs 944.25 crore in Q3 December 2014 over Q3 December 2013. The result was announced during market hours today, 5 February 2015.
Key benchmark indices dropped for the fifth trading session in a row today, 5 February 2015. The Sensex has declined 830.80 points or 2.79% in five trading days from a recent high of 29,681.77 on 29 January 2015. The Sensex has lost 331.98 points or 1.13% in this month so far (till 5 February 2015). The Sensex has risen 1,351.55 points or 4.91% in this calendar year so far (till 5 February 2015). From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 8,887.85 points or 44.52%. The Sensex is off 993.19 points or 3.32% from a record high of 29,844.16 hit on 30 January 2015.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 61.73, compared with its close of 61.7525 during the previous trading session.
Brent crude oil futures edged higher in choppy trade. Brent for March settlement was up 83 cents at $54.99 a barrel. The contract had slumped $3.75 a barrel or 6.47% to settle at $54.16 a barrel during the previous trading session.
Reserve Bank of India (RBI) Governor Raghuram Rajan said in an interview to a newspaper published today, 5 February 2015, that the RBI still has a way to go in fighting inflation and it is important that the central bank has the credibility to bring down inflation if it picks up. India has to ensure that if there are supply shocks in future, they don't increase inflationary expectations, Rajan said. Rajan also stressed on the need for the country to accelerate growth, saying India should not settle for anything less than double-digit growth in the medium term. The RBI left its benchmark lending rate viz. the repo rate unchanged at 7.75% after a monetary policy review early this week, as the central bank awaits further evidence to gauge whether the disinflationary process is continuing. Earlier, the RBI had surprised financial markets by announcing a cut in the repo rate by 25 basis points in an unscheduled monetary policy review on 15 January 2015, citing easing of inflationary pressures in the economy.
European stocks edged lower today, 5 February 2015, after the European Central Bank fueled an increasingly tense standoff between the Greek government and its international creditors by declaring it would stop accepting Greek bonds as collateral for central bank loans. Key benchmark indices in UK and France were off 0.24% to 0.34%. In Germany, the DAX rose 0.02%.
The European Central Bank (ECB) yesterday, 4 February 2015, announced that it will no longer accept Greek government bonds from banks seeking funds, raising costs and volatility for Greece's lenders at a time of growing deposit outflows. It is currently not possible to assume a successful conclusion of Greece's current bailout, the ECB said, just hours after its president, Mario Draghi, met with Greece's new finance minister, Yanis Varoufakis. The announcement marked the first time since 2012when Athens was locked in another round of acrimonious negotiations with its creditorsthat the central bank has suspended its waiver for Greece's junk-rated bonds. Mr. Varoufakis and newly elected Greek Prime Minister Alexis Tsipras have been touring European capitals, promoting a plan to overhaul the country's sagging economy that relies less on budget cuts and seeks easier terms on repaying debts.
Ukraine's central bank today, 5 February 2015, increased its key rate to 19.5% from 14% and scrapped foreign currency auctions, moving the battered local currency a step closer to a free float in an effort to steady the market. The bank said the moves were aimed at stabilizing Ukraine's currency hryvnia, which has lost half of its values against the dollar over the last year amid Ukraine's deepening economic crisis and the war with pro-Russian separatists in the country's east. The latest moves are part of a loan program being finalized with the International Monetary Fund and will reduce the plethora of different rates at which the currency has been trading.
Asian stock markets edged lower today, 5 February 2015, after the European Central Bank (ECB) yesterday, 4 February 2015, abruptly pulled back its soft treatment of Greek debt and cancelled its acceptance of the country's bonds in return for funding. Key indices in Japan, Taiwan, Singapore, South Korea and Indonesia were off 0.02% to 0.98%. In Hong Kong, the Hang Seng index was up 0.35%.
In China, the Shanghai Composite was off 1.18%. The People's Bank of China (PBOC) yesterday, 4 February 2015, cut its reserve-requirement ratio for banks by 0.5 percentage points, in a bid to boost lending to businesses and bolster the economy. The central bank said the ratio for most banks will fall to 19.5% after the cut takes effect.
Trading in US index futures indicated that the Dow could gain 75 points at opening bell today, 5 February 2015. Most US stocks dropped yesterday, 4 February 2015, after the ECB pulled back its soft treatment of Greek debt and cancelled its acceptance of the country's bonds in return for funding.
The US government is schedule to release nonfarm payroll data for January 2015 tomorrow, 6 February 2015.
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