A divergent trend was witnessed among the two key benchmark indices in afternoon trade. The barometer index, the S&P BSE Sensex, languished in negative zone while the 50-unit CNX Nifty was trading with minuscule gains. The Sensex was currently off 35.26 points or 0.12% at 28,384.86. The Nifty was currently up 1.85 points or 0.02% at 8,605.30. The market breadth indicating the overall health of the market was negative.
Asian Paints edged lower in volatile trade after announcing strong Q1 June 2015 results. Realty stocks were mixed. Shares of power generation and power distribution companies edged lower. 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.
Earlier, the 50-unit CNX Nifty hit 13-1/2-week high in morning trade.
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.
In overseas stock markets, European stocks edged lower. Asian stocks edged higher on the tail of strong corporate earnings in the US and China's stabilizing markets. US stocks closed mildly higher yesterday, 20 July 2015, with the Nasdaq at another record, as investors digested earnings reports.
At 13:17 IST, the S&P BSE Sensex was down 35.26 points or 0.12% at 28,384.86. The index fell 65.31 points at the day's low of 28,354.81 in early trade. The index gained 97.94 points at the day's high of 28,518.06 in morning trade.
The CNX Nifty was up 1.85 points or 0.02% at 8,605.30. 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 51.63 points or 0.46% at 11,198.47. The BSE Small-Cap index was down 40.82 points or 0.35% at 11,722.52. The decline in both these indices was higher than Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,485 shares fell and 1,107 shares rose. A total of 119 shares were unchanged.
Realty stocks were mixed. Unitech (down 6.31%), Oberoi Realty (down 1.94%), DLF (down 0.87%), Phoenix Mills (down 2.9%), and Anant Raj (down 1.35%) edged lower. Godrej Properties (up 0.4%), Sobha (up 1.03%), Indiabulls Real Estate (up 0.19%), and Housing Development & Infrastructure (HDIL) (up 0.9%) gained.
Shares of power generation and power distribution companies edged lower. Torrent Power (down 0.3%), GVK Power & Infrastructure (down 3.17%), Tata Power Company (down 1.68%), NTPC (down 0.11%), Adani Power (down 2.06%), Power Grid Corporation of India (down 0.29%), Reliance Infrastructure (down 1.98%) and Reliance Power (down 1.74%) declined. NHPC rose 1.57%.
Asian Paints edged lower in volatile trade after announcing strong Q1 June 2015 results. The stock was off 0.75% at Rs 845.50. The stock hit high of Rs 869 and low of Rs 835.75 so far during the day. Asian Paints' net profit rose 38.52% to Rs 427.81 crore crore on 7.85% growth total income to Rs 3014.36 crore in Q1 June 2015 over Q1 June 2014. The result was announced during market hours.
Separately, Asian Paints said that as part of the company's plan to consolidate its investments in its overseas subsidiaries, Asian Paints (International), Mauritius, a wholly owned subsidiary of the company has transferred its entire holding of 89.78% held by it in its subsidiary - Asian Paints Bangladesh Limited, Bangladesh to its wholly owned subsidiary, Berger International Limited, Singapore.
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 10.18% at Rs 1,103.90. 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). At the time of announcing Q4 March 2015 results in April 2015, Infosys had forecast 6.2% to 8.2% growth in the company's revenue in dollar terms for FY 2016.
Thanks to weakness of the rupee against the dollar, Infosys has raised full year revenue growth in rupee terms. Infosys now expects its revenue to grow 11.5%-13.5% in rupee terms for the year ending 31 March 2016 (FY 2016). At the time of announcing Q4 March 2015 results in April 2015, Infosys had forecast 8.4%-10.4% growth in the company's revenue in rupee terms for FY 2016. The revised guidance is based on rupee dollar exchange rate of 63.65.
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.
Meanwhile, 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 which began today, 21 July 2015. The contentious Land Acquisition Bill remains stuck in Parliament due to stiff opposition. Meanwhile, a Rajya Sabha Select Committee has reportedly adopted a report endorsing majority provisions of the Goods and Services Tax (GST) Bill after the Centre agreed to compensate states for revenue loss for 5 years even as Congress filed a dissent note. 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.
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, European stocks edged lower today, 21 July 2015. Key indices in France, Germany and UK were off 0.01% to 0.08%.
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.
Asian stocks edged higher today, 21 July 2015, on the tail of strong corporate earnings in the US and China's stabilizing markets. In mainland China, the Shanghai Composite index rose 0.64%. In Hong Kong, the Hang Seng index was up 0.65%. In other Asian markets, key benchmark indices in Singapore, Japan, Taiwan and South Korea were up 0.06% to 0.93%. 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.
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