Key benchmark indices provisionally closed with small losses after a sudden reversal of trend in late trade. The barometer index, the S&P BSE Sensex, fell 48.06 points or 0.2% at 24,444.33, as per the provisional closing data. The 50-unit Nifty 50 index shed 13.95 points or 0.19% at 7,423.80, as per the provisional closing data. After seeing a lacklustre movement during the first half of the trading session, key indices turned volatile later. After reversing intraday losses in afternoon trade, the Sensex and the Nifty extended gains in mid-afternoon trade. The two key benchmark indices once again slipped into the red from green after a sudden slide in late trade.
The Sensex rose 94.81 points or 0.38% at the day's high of 24,587.20 in mid-afternoon trade. The barometer index fell 91.87 points or 0.37% at the day's low of 24,400.52 in early trade, its lowest level since 22 January 2016. The Nifty rose 31.10 points or 0.41% at the day's high of 7,468.85 in mid-afternoon trade. The index shed 28.15 points or 0.37% at the day's low of 7,409.60 in early trade, its lowest level since 22 January 2016.
The market breadth indicating the overall health of the market was negative. On BSE, 1,307 shares fell and 1,243 shares rose. A total of 184 shares were unchanged. The BSE Mid-Cap index was provisionally down 0.36%. The losses for this index were higher in percentage terms than those for the Sensex. The BSE Small-Cap index was provisionally down 0.04%. The losses for this index were lower in percentage terms than those for the Sensex.
The total turnover on BSE amounted to Rs 2440 crore, lower than turnover of Rs 2657.17 crore registered during the previous trading session.
Shares of oil exploration and production stocks rose after a rebound in crude oil prices. Cairn India (up 4.76%), Reliance Industries (RIL) (up 1.86%), Oil India (up 0.22%) and ONGC (up 0.82%) edged higher. Higher crude oil prices would result in higher realization from crude sales for oil exploration firms.
Shares of state-run oil marketing companies (PSU OMCs) also gained. HPCL (up 2.07%) and Indian Oil Corporation (IOCL) (up 0.79%) gained. BPCL fell 0.32%.
Brent for March settlement was currently up 67 cents at $33.77 a barrel. The contract had surged $1.30 a barrel or 4.08% to settle at $33.10 a barrel during the previous trading session.
Vedanta shrugged off weak third quarter results. The stock jumped 5.64%. The company's consolidated net profit slumped 99% to Rs 18 crore on 23% drop in revenue to Rs 14801 crore in Q3 December 2015 over Q3 December 2014. The sharp decline in bottom line was due to lower oil and metal prices. The result was announced during market hours today, 28 January 2016.
Earnings before interest, taxes, depreciation and amortization (EBITDA) fell 48% to Rs 3212 crore in Q3 December 2015 over Q3 December 2014. EBITDA fell primarily due to weak commodity prices.
Meanwhile, the company said that it expects the merger of Cairn India with the company to be competed by Q1 June 2016.
Power Grid Corporation of India gained 4.01% after the company reported 31.26% rise in net profit to Rs 1613.12 crore on 22.7% rise in total income to Rs 5504.83 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 27 January 2016.
Meanwhile, Power Grid Corporation during market hours today, 28 January 2016, announced that the board of directors of the company at its meeting held yesterday, 27 January 2016, accorded investment approval for two projects totaling Rs 328.55 crore.
HDFC dropped 1.52% after the company reported a muted growth in bottom line in Q3 December 2015. Net profit rose 6.66% to Rs 1520.51 crore on 6.46% rise in total income to Rs 7327.69 crore in Q3 December 2015 over Q3 December 2014. As at 31 December 2015, the loan book stood at Rs 248097 crore as against Rs 219939 crore as at 31 December 2014. The result was announced after market hours yesterday, 27 January 2016.
On a consolidated basis, HDFC reported 11.01% rise in net profit to Rs 2419 crore on 2.96% rise in total income to Rs 12306.52 crore in Q3 December 2015 over Q3 December 2014.
Meanwhile, HDFC's board of directors at its meeting held on 27 January 2016 granted its approval for issuance of Secured Redeemable Non-convertible Debentures (NCD) aggregating to Rs 35000 crore on a private placement basis under a Shelf Disclosure Document in terms of the Sebi (Issue and Listing of Debt Securities) Regulations, 2008.
Adani Ports and Special Economic Zone declined 2.09%. The company said during market hours today, 28 January 2016, that the Supreme Court has passed an order allowing Adani Hazira Port Private Limited (AHPPL), a wholly owned subsidiary of the company, to continue its port operations and construction activity. The apex court passed the order after AHPPL challenged an order issued by National Green Tribunal, Pune cancelling the environment clearance for expansion of facilities. The court has also stayed the direction of demolition of 25 ha area on the condition that AHPPL will deposit Rs 25 crore before the collector which is to be kept in escrow account till matter id finally heard.
In overseas stock markets, European stocks witnessed a mixed trend. Asian stocks edged higher after China's central bank People's Bank of China announced a large injection of cash into the financial system to pre-empt a holiday-induced funding squeeze and offset rapid capital outflows. But, Chinese stocks fell on continued concerns about China's slowing economy. In mainland China, the Shanghai Composite ended 2.92% lower with losses accelerating late in the session.
US stocks fell yesterday, 27 January 2016, after the Federal Reserve left the door open to a March rate increase despite acknowledging that US economic growth slowed since its last meeting in December 2015. The Fed held US interest rates unchanged as expected and said it is closely monitoring global economic and financial developments. The stance of the monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation, the Fed said in a statement.
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