Key benchmark indices trimmed intraday losses after hitting fresh intraday low. The barometer index, the S&P BSE Sensex, was down 181.06 points or 0.69%, up about 80 points from the day's low and off close to 210 points from the day's high. The market breadth indicating the overall health of the market was weak, with more than two losers for every gainer on BSE. The BSE Mid-Cap index was off 1.6%. The BSE Small-Cap index was off 2.14%. Indian stocks fell today, 25 July 2014, on concerns geopolitical tension in the Middle East and Ukraine could push oil prices higher. Weakness in European stocks also dampened sentiment.
Colgate-Palmolive (India) dropped in volatile after the company announced Q1 results. Wipro dropped after the company reported a muted 1.2% growth in IT services revenue on sequential basis in Q1 June 2014. Steel Authority of India (Sail) dropped after Finance Minister Arun Jaitley reportedly said today, 25 July 2014, that the government plans to sell 5% stake in the steel major in the current fiscal year. Shares of jewellery retailers declined after Minister of State for Finance Nirmala Sitharaman was quoted as saying today, 25 July 2014, the government does not have any current proposal to cut the record 10% import duty on gold. Shares of organised retailers declined after Sitharaman reportedly said today, 25 July 2014, the government has not decided its stance on a policy in place to allow foreign direct investment in supermarkets.
At 14:20 IST, the S&P BSE Sensex was down 181.06 points or 0.69% to 26,090.79. The index dropped 264.54 points at the day's low of 26,007.31 in mid-afternoon trade, its lowest level since 23 July 2014. The index rose 28.32 points at the day's high of 26,300.17 in early trade, a record high for the index.
The CNX Nifty was down 57.05 points or 0.73% to 7,773.55. The index hit a low of 7,748.60 in intraday trade, its lowest level since 22 July 2014. The index hit a high of 7,840.95 in intraday trade, a record high for the index.
The market breadth indicating the overall health of the market was weak, with more than two losers for every gainer on BSE. On BSE, 2,017 shares fell and 745 shares rose. A total of 88 shares were unchanged.
The BSE Mid-Cap index was down 148.80 points or 1.6% at 9,144.66. The BSE Small-Cap index was down 218.80 points or 2.14% at 10,010.53. Both these indices underperformed the Sensex.
Wipro dropped after the company reported a muted 1.2% growth in IT services revenue on sequential basis in Q1 June 2014. The stock was off 4.73% at Rs 549.50. The stock hit high of Rs 554.95 and low of Rs 528 so far during the day. The company's consolidated net profit as per International Financial Reporting Standards (IFRS) jumped 30% to Rs 2100 crore on 14% growth in total revenue to Rs 11140 crore in Q1 June 2014 over Q1 June 2013. The result was announced after trading hours yesterday, 24 July 2014.
IT services revenue was $1.74 billion in Q1 June 2014, a sequential increase of 1.2% and year on year (YoY) increase of 9.6%. IT services revenues in rupee terms was Rs 10510 crore in Q1 June 2014, an increase of 18% YoY. IT services earnings before interest and tax (EBIT) was Rs 2400 crore in Q1 June 2014, an increase of 35% YoY. Non-GAAP constant currency IT services revenue in dollar terms was $1.725 billion in Q1 June 2014, which was within the company's guidance range of $1.715 billion to $1.755 billion. Wipro expects revenue from IT services business to be in the range of $1.77 billion to $1.81 billion in Q2 September 2014.
T K Kurien, Executive Director & Chief Executive Officer, Wipro, said that the company continues to win large deals, particularly in the application and infrastructure space. These wins demonstrate confidence of clients in Wipro's transformational capabilities, he said. Suresh Senapaty, Executive Director & Chief Financial Officer, Wipro said that Wipro's operating margins for Q1 June 2014 was on expected lines, impacted largely due to wage hikes.
Steel Authority of India (Sail) dropped after Finance Minister Arun Jaitley reportedly said today, 25 July 2014, that the government plans to sell 5% stake in the steel major in the current fiscal year. The stock was off 3.33% at Rs 86.95. The government currently owns 80% stake in Sail.
Colgate-Palmolive (India) dropped in volatile after the company announced Q1 results. The stock was off 0.8% at Rs 1,646.85. The stock hit high of Rs 1,698 and low of Rs 1,619.95 so far during the day. The company's net profit excluding exceptional item rose 4% to Rs 134.90 crore on 13% growth in net sales to Rs 950.60 crore in Q1 June 2014 over Q1 June 2013. The result was announced during market hours today, 25 July 2014.
There was an exceptional gain in Q1 June 2013 relating to the slump sale of Global Shared Services Organisation to Colgate Global Business Services, a 100% subsidiary of Colgate-Palmolive Company.
Colgate-Palmolive (India) said it has posted strong volume growth of 5% for the quarter and continued to enhance its leadership position in toothpaste category by registering a volume market share of 57% for the period January-June 2014, an increase of 110 basis points (bps) over the same period last year. The flagship brands Colgate Dental Cream, Active Salt, Max Fresh and Colgate Total along with the recently launched Visible White have contributed to this growth, the company said in a statement.
Shares of organised retailers declined after trade minister Nirmala Sitharaman reportedly said today, 25 July 2014, the government has not decided its stance on a policy in place to allow foreign direct investment in supermarkets. Trent (down 1.16%), Shoppers Stop (down 1.48%) and Future Retail (down 4.28%) dropped.
The Bharatiya Janata Party-led government opposes the policy put in place by its predecessor to allow foreign supermarkets to operate in India. But the new administration has not been clear whether it will revoke the policy.
Shares of jewellery retailers declined after Minister of State for Finance Nirmala Sitharaman quoted as saying today, 25 July 2014, the government does not have any current proposal to cut the record 10% import duty on gold. Shree Ganesh Jewellery House (down 5%), Gitanjali Gems down 4.53%), Tribhovandas Bhimji Zaveri (down 4.2%), Tara Jewels (down 2.64%), Titan Company (down 1.44%) and PC Jeweller (down 1.4%) declined.
The Sensex and the 50-unit CNX Nifty, both, hit record high amid initial volatility. Key benchmark indices lost ground in morning trade. Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade. A bout of volatility was witnessed as key benchmark indices hit fresh intraday low in early afternoon trade. Key benchmark indices extended losses and hit fresh intraday low in afternoon trade. Key benchmark indices trimmed losses in mid-afternoon trade.
Finance Minister Arun Jaitley reportedly said today, 25 July 2014, that he is preparing to take a final decision on the controversial General Anti-Avoidance Rules (GAAR). GAAR is a tool to curb tax avoidance. GAAR announced by the previous government had sparked alarm among foreign investors because of provisions that included tightening rules on investments from countries that have double taxation treaties with India. The implementation of GAAR was deferred by two years until 1 April 2015.
Investors are keeping a close watch of crude oil prices amid fears geopolitical tension in the Middle East and Ukraine could push oil prices higher. India imports almost 80% of its crude oil requirements. Brent crude futures for September delivery were up 11 cents at $107.18 a barrel. The contract had closed 96 cents lower on Thursday, 24 July 2014.
The death toll in Gaza's fighting has continued to rise, with over 800 Palestinians and 33 Israelis killed since 8 July 2014, according to reports. At least 13 people were killed and more than 200 injured when a UN-run school used as a shelter came under fire in Gaza on Thursday, 24 July 2014, reports said. Israel launched its military offensive against Gaza on 8 July with the declared objective of stopping Hamas firing rockets into Israel.
Meanwhile, the US reportedly said on Thursday, 24 July 2014, that it has evidence that Russia has fired artillery across the border targeting Ukrainian military positions. Russia has frequently denied sending any rocket launchers into Ukraine. Russia is facing international pressure after Malaysia Airlines flight MH17 crashed in eastern Ukraine on 17 July, with pro-Russian rebels widely accused of shooting it down.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trading. The partially convertible rupee was hovering at 60.0725, unchanged from its close of 60.11 on Thursday, 24 July 2014.
The monsoon rains were reportedly 24% above average in the week ended July 23. The annual monsoon arrived over the southern Kerala coast on 6 June, and then covered the entire country on 17 July. Rains are vital to India's farm sector, which accounts for about 14% of the country's nearly $2 trillion economy. Two-thirds of its 1.2 billion population lives in rural areas.
European stocks declined today, 25 July 2014, as LVMH Moet Hennessy Louis Vuitton SA and Danone SA posted worse-than-expected financial results. Key benchmark indices in UK, France and Germany were down 0.04% to 0.65%.
Asian stocks rose in choppy trade today, 25 July 2014. Key benchmark indices in China, Hong Kong, Japan and South Korea were up by 0.31% to 1.02%. Key benchmark indices in Indonesia, Singapore and Taiwan were off 0.2% to 0.93%.
Trading in US index futures indicated a flat opening of US stocks on Friday, 25 July 2014. US stocks finished a quiet session mostly flat on Thursday, 24 July 2014, as earnings painted a mixed picture of the economy, though the S&P 500 index set another record closing high.
The number of Americans filing applications for unemployment benefits dropped last week to the lowest level in more than eight years, reflecting what could be a pickup in auto making during a typically slow time of year. Jobless claims fell by 19,000 to 284,000 in the week ended July 19, the fewest since February 2006 and lower than forecast, a Labor Department report showed in Washington.
Fewer US new homes than forecast were sold in June and data for the prior month was revised down by a record, painting a troubling picture of a market struggling to gain traction. Sales declined 8.1% to a 406,000 annualized pace, the fewest since March and lower than forecast, Commerce Department figures showed in Washington. That followed a May rate of 442,000.
The International Monetary Fund yesterday, 24 July 2014, lowered its outlook for global growth this year as expansion rates from China to the US weaken and military conflicts from Ukraine to the Middle East raise the risk of a surge in oil prices. The world economy will expand 3.4% in 2014, the IMF said, less than its 3.6% prediction in April and stronger than last year's 3.2%. Next year, growth will be 4% compared with an April forecast for 3.9%, the fund said.
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