Key benchmark indices hovered in negative zone in a narrow range in mid-morning trade. The barometer index, the S&P BSE Sensex was currently off 85.22 points or 0.3% at 28,378.09. The market breadth indicating the overall health of the market was positive.
ACC dropped after the company reported weak Q2 numbers after market hours on Friday, 17 July 2015. Cement stocks edged lower after poor Q1 results from ACC. Pharma stocks edged higher.
In overseas stock markets, Asian stocks edged lower today, 20 July 2015. US stocks closed mixed on Friday, 17 July 2015, but posted solid gains for the week, as strong earnings boosted the Nasdaq to another record high.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 605.56 crore during the previous trading session on Friday, 17 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 175.15 crore during the previous trading session on Friday, 17 July 2015, as per provisional data.
At 11:15 IST, the S&P BSE Sensex was down 85.22 points or 0.3% at 28,378.09. The index fell 104.30 points at the day's low of 28,359.28 in morning trade, its lowest level since 16 July 2015. The index gained 85.82 points at the day's high of 28,549.13 in early trade.
The CNX Nifty was down 33.45 points or 0.39% at 8,576.40. The index hit a low of 8,569.50 in intraday trade, its lowest level since 16 July 2015. The index hit a high of 8,623.90 in intraday trade.
The BSE Mid-Cap index was up 33.06 points or 0.28% at 11,253.24. The BSE Small-Cap index was up 29.53 points or 0.26% at 11,746.42. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,285 shares gained and 935 shares fell. A total of 85 shares were unchanged.
ACC dropped after the company reported weak Q2 numbers after market hours on Friday, 17 July 2015. The stock was off 2.76% at Rs 1,443.20. ACC's consolidated net profit fell 45.11% to Rs 133.46 crore on 1.58% decline in sales turnover to Rs 2961.21 crore in Q2 June 2015 over Q2 June 2014.
ACC's operating EBITDA (earnings before interest, taxation, depreciation and amortization) dropped 25.86% to Rs 335.16 crore in Q2 June 2015 over Q2 June 2014.
ACC's cement sales volume declined 2.36% to 6.20 million tonnes in Q2 June 2015 over Q2 June 2014.
During the quarter, the cement market was challenging and the company's sales volumes were subdued, ACC said. Overall construction activity remained dull with weak expenditure on infrastructure and housing sectors leading to lack-lustre demand for cement, it added. Surplus capacity in the industry heightened competition and made cement prices volatile, ACC said in a statement.
With regard to update on ongoing projects, ACC said that the Jamul clinkering project is scheduled to be commissioned by the end of 2015 while the cement grinding units at Jamul and Sindri are expected to commence in Q1 2016, which is a delay of around one quarter.
On future business outlook, ACC said it expects demand for cement to pick up gradually over the next couple of quarters, with the government's increasing focus on infrastructure development as well as on the promising new projects of Smart Cities and Housing For All. Interest rates are expected to soften further in the coming months, which may translate to increased participation by retail home buyers, ACC said. Meanwhile, the company will maintain its thrust on controlling costs and emphasis on market oriented initiatives, ACC said in a statement.
Cement stocks edged lower after poor Q1 results from ACC. Ambuja Cements (down 1.46%) and Shree Cement (down 0.49%) edged lower.
UltraTech Cement was off 2.2% at Rs 3,146. The company is set to announce its Q1 June 2015 results today, 20 July 2015.
Grasim Industries was off 1.29% at Rs 3,650.30. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Pharma stocks edged higher. GlaxoSmithkline Pharmaceuticals (up 0.31%), Dr Reddy's Laboratories (up 0.7%), Ipca Laboratories (up 0.58%), Wockhardt (up 0.57%), Sun Pharmaceutical Industries (up 0.54%) and Lupin (up 0.3%) edged higher. Cipla (down 0.39%), Glenmark Pharmaceuticals (down 0.28%) and Strides Arcolab (down 0.4%) edged lower.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 19 July 2015, that the Southwest Monsoon was vigorous over Nagaland, Manipur, Mizoram & Tripura and West Madhya Pradesh and active over Haryana, Chandigarh & Delhi, South Interior Karnataka and Kerala during 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 8% below the Long Period Average (LPA) until 19 July 2015. Region wise, the southwest monsoon was 10% above the LPA in Northwest India, 6% below the LPA in East & Northeast India, 13% below the LPA in South Peninsula and 16% below the LPA in Central India until 19 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key, with July being a crucial month for the sowing of Kharif crops. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
Meanwhile, the weekly data released by the Ministry of Agriculture after trading hours on Friday, 17 July 2015, showed a pick up in the sowing of Kharif crops. The total sown area for Kharif crops as on 17 July 2015 stood at 563.35 lakh hectares compared with 346.34 lakh hectares at this time last year. July is the crucial month for the sowing of Kharif crops.
Meanwhile, the Ministry of Water Resources announced in its weekly report issued after trading hours on Friday, 17 July 2015, that the water storage available in 91 important reservoirs of the country was 51.22 BCM as on 16 July 2015, which is 33% of total storage capacity of these reservoirs. This storage is 133% of the storage of corresponding period of last year and 112% of storage of average of last ten years. The present storage position during current year is better than the storage position of last year and is also better than the storage of average of last ten years.
Meanwhile, the three-week monsoon session of Parliament will begin tomorrow, 21 July 2015, as per reports. The government is looking forward to push through key bills and get approval for the recently-promulgated ordinances in the monsoon session of the Parliament.
In overseas stock markets, Asian stocks edged lower today, 20 July 2015. Key indices in Hong Kong, Taiwan and South Korea were off 0.2% to 0.7%. Key indices in China and Singapore were up 0.13% to 0.35%. Stock markets in Japan and Indonesia were shut for public holidays.
US stocks closed mixed on Friday, 17 July 2015, but posted solid gains for the week, as strong earnings boosted the Nasdaq to another record high.
Federal Reserve Vice Chair Stanley Fischer reportedly said on Friday, 17 July 2015, that there should be no further limits put on the US central bank's emergency lending powers. Fischer reportedly said the Fed could work with the post-financial crisis restrictions on the types of companies it could lend to. But he said the process had gone as far as it should, reports added.
In Europe, Greece has reached the deadline it couldn't afford to miss, for a bill it can finally afford to pay. Greece must today, 20 July 2015, reimburse the European Central Bank (ECB) 4.2 billion euros ($4.5 billion), including interest, as bonds bought during its last debt crisis mature.
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