Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could drop 60 points at the opening bell on weak Asian stocks.
In overseas markets, Asian markets slumped feeling the aftershocks of China's surprise devaluation of the yuan, which hit US equities overnight and pushed down already-weak emerging currencies. US stocks dropped yesterday, 11 August 2015, after a move by China's government to devalue its currency set off a sell-off in global financial markets yesterday, 11 August 2015, as investors worried about the health of the world's second-largest economy.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 736.81 crore yesterday, 11 August 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 130.74 crore yesterday, 11 August 2015, as per provisional data.
Among corporate news, Tata Steel's consolidated net profit jumped 126.17% to Rs 762.96 crore on 15.23% fall in total income to Rs 31062.50 crore in Q1 June 2015 over Q1 June 2014.
Tata Steel's bottom line in Q1 June 2015 was boosted by a surge in non-operational income and also due to one-time and exceptional items. The operating performance was weak. The company's earnings before interest, taxation, depreciation and amortization (EBITDA) after adjusting for one-time and exceptional items fell 35.28% to 2799 crore in Q1 June 2015 over Q1 June 2014. Tata Steel's non-operational income or other income jumped 252.62% to Rs 762.17 crore in Q1 June 2015 over Q1 June 2014.
Consolidated steel deliveries fell to 6.33 million tonnes in Q1 June 2015 from 6.46 million tonnes in Q1 June 2014.
Tata Steel said that there was significant import of steel into India during the quarter which depressed local steel prices. Tata Steel's turnover from its Indian operations fell 13.12% to Rs 9094 crore in Q1 June 2015 over Q1 June 2014.
T V Narendran, Managing Director of Tata Steel India and South East Asia, said that the Indian steel industry continued to bear the brunt of a surge in imports and tepid domestic demand which led to a sharp drop in steel prices over the quarter. Phased commissioning of the 3 MTPA greenfield expansion project at Kalinganagar has started and the company is gearing up to commence commercial production in second half of year ending 31 March 2016.
With regard to European operations, Tata Steel said that the European operations' liquid steel production and deliveries, both, increased by more than 7% on year-on-year basis in Q1 June 2015, reflecting the more stable operating platform. But surging EU imports, especially from China, and, in the case of the UK operations, the appreciation of sterling against the euro, led to lower turnover and EBIT for the European operations, Tata Steel said. The company is combating these headwinds by progressing market differentiation strategy, improving cost base and shifting focus increasingly from volume to value, the company said.
At the EBIT level, the European operations of Tata Steel reported a loss of Rs 124 crore in Q1 June 2015 as against profit of Rs 136 crore in Q1 June 2014. EBITDA of Tata Steel's European operations fell 42.21% to Rs 575 crore on 13.91% decline in turnover to Rs 17855 crore in Q1 June 2015 over Q1 June 2014.
Separately, Tata Steel also said that Tata Steel has yesterday, 11 August 2015 sold 1.93 crore shares (2.18%) of Titan Company to Tata Sons through a market sale for a net consideration of Rs 637.46 crore.
On a consolidated basis, Sun Pharmaceutical Industries reported 60.23% drop in net profit to Rs 478.96 crore on 6.72% rise in total income from operations (net) to Rs 6767.68 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 11 August 2015.
The Q1 June 2015 net profit was adversely impacted by one-time items as well as exceptional charges of Rs 685 crore, Sun Pharmaceutical Industries said. These exceptional charges relate to impairment of fixed assets and goodwill and other related costs and have arisen on account of integration and optimization measures, the company said.
Sun Pharmaceutical Industries EBITDA stood at Rs 1614 crore in Q1 June 2015, resulting EBITDA margin of 24.7%. EBITDA for Q1 June 2015 includes certain one-time charges related to restructuring and other write-offs. Excluding these one-time items, adjusted EBITDA margin was at 28% in Q1 June 2015 compared to 30.2% in Q1 June 2014.
Sun Pharmaceutical Industries said that the financials for Q1 June 2015 include several one-time and exceptional charges related to the integration of Sun and Ranbaxy businesses, and hence are not strictly comparable with Q1 June 2014. Both these quarters include the financials of erstwhile Ranbaxy Laboratories, Sun Pharmaceutical Industries said.
Dilip Shanghvi, Managing Director of Sun Pharmaceutical Industries said that the company continues to invest significantly in R&D and in building critical talent for enhancing specialty and complex generics pipeline.
Sun Pharmaceutical Industries said that the Board of Directors of the Company at its meeting held on 11 August 2015, has recorded the approval of the Scheme of Amalgamation of Sun Pharma Global Inc., wholly-owned subsidiary of the Company, into Sun Pharmaceutical Industries with effect from the appointed date of 1 January 2015 as per the order of the High Court of Gujarat, at Ahmedabad at its hearing held on 30 July 2015 and accordingly after taking into effect the above Scheme and recommendation of the payment of dividend, approved the revised annual accounts for the year ended 31 March 2015.
NMDC reported 47.25% fall in net profit to Rs 1010.12 crore on 48.04% fall in total income from operations (net) to Rs 1806.43 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 11 August 2015.
Meanwhile, investors continue to watch the progress of the monsoon rains which will have a bearing on food prices and rural income. India's weather office, the India Meteorological Department (IMD), said in a daily report issued yesterday, 11 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 9% below the Long Period Average (LPA) until 11 August 2015. Region wise, the rainfall was 21% below the LPA in South Peninsula, 11% below the LPA in East & Northeast India, 9% below the LPA in Central India and 2% above the LPA in Northwest India until 11 August 2015.
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.
Among key macro economic announcements this week, the government is scheduled to unveil the consumer price index (CPI) data for the month of July 2015 and industrial production data for June 2015 at 17:30 IST today, 12 July 2015. The CPI inflation accelerated to 5.4% in June 2015 from 5.01% in May 2015. Industrial production rose 2.7% in May 2015, compared with a revised growth of 3.4% in April 2015.
The government will release data on inflation based on the wholesale price index (WPI) for July 2015 at around 12:00 noon on Friday, 14 August 2015. The WPI inflation continued to be in negative zone for the eighth straight month in June 2015. The WPI inflation stood at negative 2.4% in June 2015, unchanged from the level in May 2015.
Ministry of Finance said yesterday, 11 August 2015, Indirect Tax Revenue (Provisional) collections have increased 39.1% to Rs. 56739 crore in July 2015 over July 2014. This is an achievement of 32.6% of the target fixed for BE 2015-16 i.e. Rs 646267 crore. Central Excise collections have increased from 64.8% to Rs 22273 crore in July 2015 over July 2014. Service Tax collections have increased rose 30.3% to Rs 15470 crore in July 2015 over July 2014. Customs collections have increased 23.2% to Rs 18996 crore in July 2015 over July 2014.
Mining, metal and banking stocks led losses for key benchmark indices, with the barometer index, the S&P BSE Sensex, falling below the psychological 28,000 mark yesterday, 11 August 2015. The S&P BSE Sensex fell 235.63 points or 0.84% to settle at 27,866.09, its lowest closing level since 30 July 2015.
In overseas markets, Asian markets edged lower today, 12 August 2015 feeling the aftershocks of China's surprise devaluation of the yuan, which hit US equities overnight and pushed down already-weak emerging currencies. Key indices in South Korea, China, Hong Kong, Taiwan, Indonesia, Japan and Singapore were off 0.85% to 2.55%.
Meanwhile, China's yuan hit a four-year low today, 12 August 2015, slipping further a day after authorities devalued the yuan in a move that sparked fears of a global currency war and raised concerns that Beijing was looking to support its struggling exporters.
US stocks dropped yesterday, 11 August 2015, after a move by China's government to devalue its currency set off a sell-off in global financial markets yesterday, 11 August 2015, as investors worried about the health of the world's second-largest economy.
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