A range bound movement was witnessed as key benchmark indices languished near the day's low in early afternoon trade. The market breadth indicating the overall health of the market was weak. The Sensex was currently off 223.66 points or 0.79% at 28,218.44. The BSE Small-Cap index was off 1.03%. The decline in index was higher than the Sensex's decline in percentage terms. Losses ranged from 2% to about 11% for quite a few stocks which are the constituents of the BSE Small-Cap index.
In overseas markets, Chinese stocks led decline in Asian stocks after China's securities regulator after on Friday, 17 April 2015, tightened rules on margin lending and the Chinese local stock exchanges eased restrictions on short-selling of stocks. The announcement came after end of the trading session in Asian markets on Friday, 17 April 2015.
Auto shares witnessed selling pressure. Reliance Industries (RIL) edged lower on profit booking after reporting record quarterly net profit in Q4 March 2015. Lupin rose after the company's Canadian subsidiary launched an antibiotic medicine in Canada.
Earlier, the Sensex and the 50-unit CNX Nifty, both, hit their lowest level in nearly three weeks in mid-morning trade as these two key benchmark indices extended intraday losses.
Meanwhile, data released by the government after trading hours Friday, 17 April 2015, showed that India's merchandise exports (including re-exports) dipped 21.06% to $23951.16 million in March 2015 over March 2014
Foreign portfolio investors sold shares worth a net Rs 675.71 crore during the previous trading session on Friday, 17 April 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 72.52 crore on Friday, 17 April 2015, as per provisional data released by the stock exchanges.
At 12:16 IST, the S&P BSE Sensex was down 223.66 points or 0.79% at 28,218.44. The index fell 252.93 points at the day's low of 28,189.17 in mid-morning trade, its lowest level since 1 April 2015. The index rose 97.36 points at the day's high of 28,539.46 at the onset of trading session.
The CNX Nifty was down 59.30 points or 0.69% at 8,546.70. The index hit a low of 8,529.15 in intraday trade, its lowest level since 1 April 2015. The index hit a high of 8,619.95 in intraday trade.
The BSE Mid-Cap index was down 106.35 points or 0.99% at 10,665.42. The BSE Small-Cap index was down 119.89 points or 1.03% at 11,502.34. The decline in both theses 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, 1,552 shares fell and 943 shares rose. A total of 99 shares were unchanged.
Auto shares witnessed selling pressure. Eicher Motors (down 3.73%), Hero MotoCorp (down 2.58%), Ashok Leyland (down 1.58%), Tata Motors (down 1.29%), Escorts (down 0.6%), Maruti Suzuki (India) (down 0.59%) and Bajaj Auto (down 0.22%) edged lower. TVS Motor Company was up 0.67%.
Mahindra & Mahindra (M&M) was down 1.91%. With respect to news article titled, "M&M in Final Stages of Talks to Buy Italian Design Firm Pininfarina,"M&M said during trading hours today, 20 April 2015, that there are no agreements which the company has entered into which require disclosure under Clause 36 of the Listing Agreement. As in the past, the company would continue to inform stock exchanges about any price sensitive information before the same is made public, M&M said.
Reliance Industries (RIL) edged lower on profit booking after reporting record quarterly net profit in Q4 March 2015. The stock was off 1.54% at Rs 912.55. The stock hit a high of Rs 937.95 and a low of Rs 907.50 so far during the day. The company announced the fourth quarter results after trading hours on Friday, 17 April 2015. The stock had surged ahead of its results. From a recent low of Rs 824 on 6 April 2015, the stock had gained 12.55% to Rs 927.45 on 16 April 2015 in seven sessions. The stock had dropped 0.06% to Rs 926.85 on Friday, 17 April 2015.
RIL's consolidated net profit rose 8.5% to Rs 6381 crore on 33.3% drop in turnover to Rs 70863 crore in Q4 March 2015 over Q4 March 2014. RIL's net profit of Rs 6381 crore in Q4 March 2015 was a record quarterly net profit for RIL on consolidated basis. The result was announced after market hours on Friday, 17 April 2015.
RIL attributed the sharp fall in turnover in Q4 March 2015 to a sharp fall in benchmark crude oil price. RIL's gross refining margins (GRM) edged up to $10.1 per barrel in Q4 March 2015, from $9.3 per barrel in Q4 March 2014. On sequential basis, the GRM rose sharply from $7.3 a barrel in Q3 December 2014. RIL's GRM edged up to $8.6 a barrel in the year ended 31 March 2015 (FY 2015) from $8.1 a barrel in the year ended 31 March 2014 (FY 2014).
RIL said in a presentation to investors after the company's Q4 March 2015 results that the company plans to restart its entire network of 1,400 retail fuel pumps during the year ending 31 March 2016 (FY 2016). Over 320 fuel outlets have already become operational, RIL said.
RIL's non-operational income rose 3.57% to Rs 2172 crore in Q4 March 2015 over Q4 March 2014. RIL said the increase in non-operational income was primarily on account of higher profit on sale of investments.
With regard to the company's US shale gas business, RIL said that the challenging market outlook would most likely curtail near-term growth for the shale gas business. Given the current weak commodity price environment, the company is focusing on capital preservation by moderating activity levels, reducing service costs and improving efficiencies in the shale gas business, RIL said. Ensuring profitable development and retaining optionality through high grading acreages and improving netbacks will be the key challenges going forward, RIL said. RIL said that the long term outlook for its US shale gas business remains promising.
RIL's total capital expenditure stood at a little over Rs 1 lakh crore in FY 2015, including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej and Hazira, Broad band Access and US shale gas projects.
Ambuja Cements rose 1.22%. With respect to news titled, "Shree cement, Heidelberg cement, JSW group, Ambuja Cement, CRH in race to acquire Lafarge assets," Ambuja Cements clarified during trading hours that the company does not have any comment to offer on the captioned news item. The company said it was commitment to fair disclosure in line with the applicable laws, rules & regulations.
Lupin rose 0.6%. The company announced during trading hours that its Canadian subsidiary, Lupin Pharma Canada (collectively Lupin) has launched its first brand product Zaxine under a strategic licensing agreement with the North Carolina based GI specialty company Salix Pharmaceuticals Inc. The agreement grants Lupin exclusive rights to promote, distribute and market Zaxine in the Canada. Zaxine 550mg (rifaximin) is a long term antibiotic treatment for adults living with hepatic encephalopathy (HE), a complication of liver disease (cirrhosis). HE can lead to a wide spectrum of mental and physical symptoms, including confusion, disruption in sleep patterns, personality changes and coma. Zaxine 550mg has approved by Health Canada under priority review for the reduction in risk of overt HE recurrence in patients over 18 year of age.
Lupin will promote the product to Hepatologists and Gastroenterologists through its own specialty sales force in Canada. Lupin is in the process of establishing its Canadian presence and the launch opens up growth opportunities for the future. Zaxine is a 'First-in-Class' treatment for HE that currently has limited options for long term treatment, the company said in a statement.
Meanwhile, data released by the government after trading hours Friday, 17 April 2015, showed that India's merchandise exports (including re-exports) dipped 21.06% to $23951.16 million in March 2015 over March 2014. Imports fell 13.44% to $35744.68 million in March 2015 over March 2014. Oil imports declined 52.68% to $7413.30 million in March 2015 over March 2014. Non-oil imports rose 10.55% to $28331.38 million in March 2015 over March 2014. The trade deficit for fiscal year 2014-15 was estimated at $137014.46 million, which was higher than trade deficit of $135797.90 million for fiscal year 2013-14.
Proceedings in the parliament during the second half of the Budget session which began today, 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, Chinese stocks led decline in Asian stocks after China's securities regulator after on Friday, 17 April 2015, tightened rules on margin lending and the Chinese local stock exchanges eased restrictions on short-selling of stocks. The announcement came after end of the trading session in Asian markets on Friday, 17 April 2015. In Hong Kong, the Hang Seng index was off 2.47%. In mainland China, the Shanghai Composite index was off 1.85%.
The People's Bank of China (PBOC) yesterday, 19 April 2015, announced reduction in reserve requirement ratio (RRR) for all banks by 100 basis points to 18.5% to be effective from 20 April 2015. Meanwhile, China Securities Regulatory Commission (CSRC) on Saturday, 18 April 2015, stressed that there was no desire to suppress the hot stock market after unveiling a raft of measures on Friday, 17 April 2015, to curb margin trading. Meanwhile, the Shanghai and Shenzhen stock exchanges on Friday, 17 April 2015, issued rules that would make it easier for investors to short, or bet against, stocks. To short a stock, an investor borrows shares and sells them, hoping the price will fall and so allow them to repay with cheaper shares. It has been difficult to short stocks in China even as valuations soared because it has been virtually impossible to borrow shares.
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