Volatility continued as key benchmark indices slipped into the red and hit fresh intraday low in mid-morning trade. The market breadth indicating the overall health of the market turned negative from positive. The barometer index, the S&P BSE Sensex, was down 37.20 points or 0.15%, off close to 210 points from the day's high and up close to 50 points from the day's low. Concerns about euro zone's financial sector weighed on Indian stocks for the second day in a row after a parent of Portugal's No. 2 lender missed a debt payment.
Pharma stocks gained. IT major Infosys rose in volatile trade after the company retained its revenue guidance for the year ending 31 March 2015 at the time of announcing Q1 June 2014 results.
At 11:20 IST, the S&P BSE Sensex was down 37.20 points or 0.15% to 25,335.55. The index jumped 175.58 points at the day's high of 25,548.33 in morning trade. The index shed 90.20 points at the day's low of 25,282.55 in mid-morning trade.
The CNX Nifty was down 13.60 points or 0.18% at 7,554.15. The index hit a high of 7,625.85 in intraday trade. The index hit a low of 7,541 in intraday trade.
The market breadth indicating the overall health of the market turned negative from positive in mid-morning trade. On BSE, 1,201 shares fell and 1,100 shares rose. A total of 103 shares were unchanged.
The BSE Mid-Cap index was down 32.75 points or 0.36% at 9,099.43, underperforming the Sensex. The BSE Small-Cap index was almost unchanged for the day at 10,019.93, outperforming the Sensex.
HDFC (down 3.12%), Hindalco Industries (down 2.76%) and GAIL (India) (down 1.89%) edged lower from the Sensex pack.
IT major Infosys gained 1.23% to Rs 3,333.45 after announcing its Q1 result. The stock was volatile. The stock hit high of Rs 3,429.35 and low of Rs 3,314 so far during the day. The company's consolidated net profit as per International Financial Reporting Standards (IFRS) fell 3.5% to Rs 2886 crore on 0.8% decline in revenue to Rs 12770 crore in Q1 June 2014 over Q4 March 2014. The result was announced before market hours today, 11 July 2014. Infosys said it added 61 clients during the quarter.
Infosys expects its consolidated revenue to grow 7%-9% in dollar terms in the year ending 31 March 2015 (FY 2015). The guidance is unchanged compared to the one the company had given at the time of announcement of Q4 March 2014 results in April this year. The guidance in rupee terms has also been kept unchanged from that given in April as the company has assumed rupee dollar conversion rate of 60 which is exactly the same conversion rate given in April guidance. The company expects its revenue to grow 5.6%-7.6% in rupee terms in FY 2015.
Pharma stocks gained. Aurobindo Pharma (up 5.71% to Rs 700), Cipla (up 1.47% to Rs 441.40), Dr Reddy's Laboratories (up 1.57% to Rs 2,693.50), Lupin (up 1.87% to Rs 1,060), Ranbaxy Laboratories (up 2.96% to Rs 559.15) and Sun Pharmaceutical Industries (up 2.83% to Rs 745.50) rose
Jay Bharat Maruti rose 1.45% to Rs 90.90 after net profit jumped 32.8% to Rs 6.76 crore on 9.91% growth in total income from operations to Rs 309.95 crore in Q1 June 2014 over Q1 June 2013.
Himachal Futuristic Communications rose 0.95% to Rs 15.90 after net profit galloped 354.34% to Rs 69.47 crore on 139.54% growth in net sales to Rs 618.82 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Thursday, 10 July 2014.
A bout of initial volatility was witnessed as key benchmark indices regained positive terrain after slipping into the red for a brief period after opening higher. Volatility continued as key benchmark indices once again regained positive terrain after slipping into the negative terrain from positive terrain in morning trade. Volatility continued as key benchmark indices lipped into the red and hit fresh intraday low in mid-morning trade.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.165, compared with its close of 60.19/20 on Thursday, 10 July 2014.
Industrial output is seen rising 3.8% in May 2014, higher than 3.4% growth in April, as per the median estimates of a poll of economists carried out by Capital Market. The government will unveil industrial production data for May 2014 today, 11 July 2014.
Finance Minster Arun Jaitley made a number of announcements in Union Budget 2014-15 on Thursday, 10 July 2014, such as a proposal to increase in foreign direct investment in insurance and defence manufacturing, a sharp increase in plan expenditure, measures to boost long term financing for infrastructure by banks and provided clarity on taxation with respect to foreign portfolio investors. But, market expectations that the Finance Minster would scrap the law on retrospective taxation were not met.
Asian stocks edged lower in choppy trade on Friday, 11 July 2014, amid concern that Europe's debt problems haven't been resolved. Key benchmark indices in Hong Kong, Taiwan, Indonesia, South Korea and Japan fell 0.24% to 1.66%. Key benchmark indices in China and Singapore were up 0.54% to 0.62%.
Trading in US index futures indicated a flat opening of US stocks on Friday, 11 July 2014. US stocks fell on Thursday, 10 July 2014, on concerns that trouble at a European bank might spread.
European bonds tumbled on Thursday after a parent of Portugal's No. 2 lender missed a debt payment. Shares of Banco Espirito Santo were suspended yesterday after sliding more than 17%, while its bonds sank to record lows even as Portugal's central bank said it can avoid contagion risks. Espirito Santo International missed payments on commercial paper to a few clients, according to a July 8 statement. The company is the biggest shareholder of Espirito Santo Financial Group (ESFG), which owns 25% of the bank. Trading in ESFG shares and debt was also halted yesterday.
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