A bout of volatility was witnessed as key benchmark indices retained positive zone in morning trade. The 50-unit CNX Nifty hit 13-1/2-week high. Shares of IT major Infosys jumped after the company raised its full year revenue growth guidance in dollar terms at the time of announcing its Q1 June 2015 results during market hours today, 21 July 2015. . The barometer index, the S&P BSE Sensex was currently up 61.46 points or 0.22% at 28,481.58. The market breadth indicating the overall health of the market was positive.
Pharma stocks edged lower. Sun Pharmaceutical Industries tumbled after the company said in a business update that its various consolidation initiatives globally due to the acquisition of Ranbaxy Laboratories are likely to adversely impact the company's revenue and profits during the current financial year.
In overseas stock markets, Asian stocks were mixed today, 21 July 2015. US stocks closed mildly higher yesterday, 20 July 2015, with the Nasdaq at another record, as investors digested earnings reports.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 714.40 crore yesterday, 20 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 848.76 crore yesterday, 20 July 2015, as per provisional data released by the stock exchanges.
At 10:15 IST, the S&P BSE Sensex was up 61.46 points or 0.22% at 28,481.58. The index gained 97.94 points at the day's high of 28,518.06 in morning trade. The index fell 65.31 points at the day's low of 28,354.81 in early trade.
The CNX Nifty was up 19.15 points or 0.22% at 8,622.60. The index hit a high of 8,646.75 in intraday trade, its highest level since 17 April 2015. The index hit a low of 8,588.25 in intraday trade.
The BSE Mid-Cap index was down 8.71 points or 0.08% at 11,241.39. The BSE Small-Cap index was up 20.44 points or 0.17% at 11,783.78. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,083 shares gained and 900 shares fell. A total of 76 shares were unchanged.
Shares of IT major Infosys jumped after the company raised its full year revenue growth guidance in dollar terms at the time of announcing its Q1 June 2015 results during market hours today, 21 July 2015. The stock was up 9.53% at Rs 1,097.40. The stock hit a high of Rs 1,115 and a low of Rs 1,022.20 so far during the day. Infosys now expects its revenue to grow 7.2%-9.2% in dollar terms for the year ending 31 March 2016 (FY 2016). The revenue growth guidance for FY 2016 has been kept unchanged at 10%-12% in constant currency terms.
Infosys' consolidated net profit fell 2.1% to Rs 3030 crore on 7% growth in revenue to Rs 14354 crore in Q1 June 2015 over Q4 March 2015. The results are as per International Financial Reporting Standards (IFRS).
Infosys' CFO Rajiv Bansal said that the company is operating within its stated margin band, balancing strategic investments and client focus with operational efficiencies. Pricing environment is competitive which the company is addressing through automation and improvement in productivity, Bansal said.
Pharma stocks edged lower. Glenmark Pharmaceuticals (down 2.58%), Lupin (down 1.44%), Wockhardt (down 0.79%), Ipca Laboratories (down 0.18%), Dr Reddy's Laboratories (down 0.13%) and Strides Arcolab (down 0.13%) edged lower. GlaxoSmithkline Pharmaceuticals (up 0.72%) edged higher.
Sun Pharmaceutical Industries tumbled after the company said in a business update that its various consolidation initiatives globally due to the acquisition of Ranbaxy Laboratories are likely to adversely impact the company's revenue and profits during the current financial year. The stock tumbled 12.08% at Rs 832.40. Sun Pharmaceutical Industries after market hours yesterday, 20 July 2015, said that following the acquisition of Ranbaxy, the company has embarked on various consolidation initiatives globally to drive future growth and profitability and to enhance long-term shareholder value. However, these measures are likely to adversely impact the overall revenues and profits of the company for year ending 31 March 2016 (FY 2016), Sun Pharmaceutical Industries said. Consolidated revenue is expected to remain flat or show a decline in FY 2016, the company said. Consolidated profit may also be adversely impacted due to certain expenses/charges arising out of integration as well as remedial actions. These initiatives will help the company revert to a more sustainable growth trajectory post FY 2016, Sun Pharmaceutical Industries said.
Cipla edged higher after the company said that its board of directors at its meeting held yesterday, 20 July 2015, approved a potential investment by FIL Capital Investments (Mauritius) II, or any of its affiliate in a wholly owned subsidiary of Cipla (proposed to be incorporated) to whom Cipla will be divesting its consumer healthcare business on a going-concern basis. The stock was up 0.69% at Rs 687.65. The announcement was made before market hours today, 21 July 2015. The approval is subject to execution of binding agreements, and the transaction will be subject to relevant regulatory approvals, Cipla said.
Meanwhile, the three-week long monsoon session of Parliament begins today, 21 July 2015. 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. The contentious Land Acquisition Bill remains stuck in Parliament due to stiff opposition, and the Prime Minister yesterday, 20 July 2015, urged parties to work collectively to break the logjam.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 20 July 2015, that the Southwest Monsoon was vigorous over West Madhya Pradesh and active over Gangetic West Bengal, East Rajasthan, Coastal Karnataka and South Interior Karnataka during 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 7% below the Long Period Average (LPA) until 20 July 2015. Region wise, the rainfall was 15% below the LPA in Central India, 12% below the LPA in South Peninsula, 6% below the LPA in East & Northeast India and 9% above the LPA in Northwest India until 20 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.
In overseas stock markets, Asian stocks were mixed today, 21 July 2015. Key indices in Japan, China and Hong Kong were up 0.26% to 0.53%. Key indices in Taiwan, Singapore and South Korea were off 0.02% to 0.08%. Indonesian stock market was shut for a holiday.
Several Bank of Japan (BoJ) board members said the impact of the bank's massive stimulus might be fading, according to minutes of its June meeting released yesterday, 20 July 2015. The nine-member board agreed underlying inflation, which excludes volatile food and energy prices, would continue to improve in the long term, the minutes showed.
US stocks closed mildly higher yesterday, 20 July 2015, with the Nasdaq at another record, as investors digested earnings reports.
In Europe, Greece reportedly repaid the roughly 2 billion euros ($2.2 billion) it owed to the International Monetary Fund (IMF) yesterday, 20 July 2015. The country is paying its bills using a 7.16 billion euro bridging loan secured last week after it agreed to a series of harsh reforms. The measures, which have to be put into law, should result in the country receiving its third bailout.
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