A divergent trend was witnessed among various index constituents as key benchmark indices languished in negative zone in mid-afternoon trade. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently off 34.40 points or 0.12% at 27,851.81.
Cement shares were mixed. HCL Technologies edged lower in volatile trade after weak Q3 outcome.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their lowest levels in more than three weeks in morning trade as these two key benchmark indices extended losses after a sudden slide.
Foreign portfolio investors sold shares worth a net Rs 1506.86 crore yesterday, 20 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 962.50 crore on yesterday, 20 April 2015, as per provisional data.
At 14:16 IST, the S&P BSE Sensex was off 34.40 points or 0.12% at 27,851.81. The index fell 199.14 points at the day's low of 27,687.07 in morning trade, its lowest level since 30 March 2015. The index rose 90.72 points at the day's high of 27,976.93 in early trade.
The CNX Nifty was down 21.05 points or 0.25% at 8,427.05. The index hit a low of 8,382.65 in intraday trade, its lowest level since 30 March 2015.The index hit a high of 8,469.35 in intraday trade.
The BSE Mid-Cap index was up 21.71 points or 0.21% at 10,575.67. The BSE Small-Cap index was up 8.98 points or 0.08% at 11,378.57. Both theses indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,402 shares rose and 1,150 shares fell. A total of 123 shares were unchanged.
Reliance Industries (RIL) was up 0.52% after credit ratings firm Moody's reportedly said that RIL's credit metrics will improve over the next two years on completion of petrochemical and refinery projects.
ONGC was up 1.62%. Oil India was down 2.08%. Oil secretary Saurabh Chandra was quoted as saying today, 21 April 2015, that ONGC and Oil India would invest $6 billion in exploration and production in the year ending 31 March 2016 in a bid to arrest declining oil and gas production. He also said that the government will soon auction 69 marginal oil and gas fields owned by ONGC and Oil India.
HCL Technologies edged lower in volatile trade after weak Q3 outcome. The stock was off 3.38% at Rs 891.95. The stock hit a high of Rs 919 and a low of Rs 834.10 so far during the day. As per US accounting standards, the company's consolidated net profit fell 12.2% to Rs 1683 crore on 0.2% fall in revenue to Rs 9267 crore in Q3 March 2015 over Q2 December 2014. Earnings before interest, taxation, depreciation and amortization (EBITDA) fell 9.8% to Rs 2091 crore in Q3 March 2015 over Q2 December 2014. The EBITDA margin edged lower to 22.5% in Q3 March 2015 from 25% in Q2 December 2014. The company made net addition of 3,944 employees during the quarter.
Cement shares were mixed. Ambuja Cements (down 1.76%), Saurastra Cement (down 1.15%), The Ramco Cement (down 1.09%), ACC (down 0.91%), Shree Cement (down 0.56%), Mangalam Cement (down 0.32%) and Kakatiya Cement (down 0.08%), edged lower. HeidelbergCement India (up 0.35%), UltraTech Cement (up 0.58%), Birla Corporation (up 0.62%), JK Lakshmi Cement (up 0.82%), India Cements (up 1.36%), J K Cement (up 1.61%) and Prism Cement (up 4.37%), edged higher.
Grasim Industries was up 1.41%. Grasim holds majority stake in UltraTech Cement.
Proceedings in the parliament during the second and final part of the ongoing Budget session which began yesterday, 20 April 2015, are being closely watched as the government hopes to pass the Constitution Amendment Bill for the introduction of a nationwide Goods and Services Tax (GST) in the country. The government had tabled the Constitution Amendment Bill for GST in the Lok Sabha during the winter session of parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
In overseas markets, European stocks trimmed initial gains. Chinese and Japanese led gains in Asian stocks after China's step to prop up its faltering economy. The People's Bank of China (PBOC) on Sunday, 19 April 2015, announced reduction in reserve requirement ratio (RRR) for all banks by 100 basis points to 18.5% effective from 20 April 2015.
Meanwhile, global markets are closely monitoring developments with regard to Greece. Greece needs to agree on a range of economic overhauls with the lenders in order to receive the next much-needed tranche of bailout and avoid running out of cash. The Greece government yesterday, 20 April 2015, ordered public entities including state-owned companies and public pension funds to transfer cash reserves to the central bank, a move that comes as Greece scrambles with finding money it needs to service debt. Eurozone finance ministers are scheduled to hold a meeting on Friday, 24 April 2015, to discuss the state of negotiations between Greece and its international creditors.
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