Losses for stocks of telecom firms, banks and index heavyweight HDFC outweighed gains for stocks of oil production and exploration companies, pharma firms and index heavyweight ITC, with key benchmark indices registering small losses. The barometer index, the S&P BSE Sensex, fell 22.82 points or 0.09% to settle at 24,469.57. The 50-unit Nifty 50 index shed 13.10 points or 0.18% to settle at 7,424.65. 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 and the Nifty snapped a three-day winning streak. Both these key benchmark indices hit their lowest closing level in almost a week.
Pharma stocks advanced as the rupee edged lower against the dollar. Shares of oil exploration and production companies rose after a rebound in crude oil prices. Vedanta shrugged off weak third quarter results. Power Grid Corporation of India edged higher after reporting strong Q3 results. HDFC dropped after the company reported a muted growth in bottom line in Q3 December 2015
The market breadth indicating the overall health of the market was negative. On BSE, 1,313 shares fell and 1,243 shares rose. A total of 178 shares were unchanged. The BSE Mid-Cap index fell 0.36%. The losses for this index were higher in percentage terms than those for the Sensex. The BSE Small-Cap index slipped 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.
The Sensex fell 22.82 points or 0.09% to settle at 24,469.57, its lowest closing level since 22 January 2016. The Sensex rose 94.81 points or 0.38% at the day's high of 24,587.20. The barometer index fell 91.87 points or 0.37% at the day's low of 24,400.52.
The Nifty shed 13.10 points or 0.18% to settle at 7,424.65, its lowest closing level since 22 January 2016. The Nifty rose 31.10 points or 0.41% at the day's high of 7,468.85. The index shed 28.15 points or 0.37% at the day's low of 7,409.60.
Among sectoral indices on BSE, The S&P BSE Telecom index (down 2.41%), the S&P BSE Capital Goods index (down 1.72%), the S&P BSE Bankex (down 0.91%), the S&P BSE Finance index (down 0.9%), the S&P BSE Industrials index (down 0.86%), the S&P BSE Consumer Durables index (down 0.82%), the S&P BSE Teck index (down 0.47%), the S&P BSE Basic Materials index (down 0.43%), the S&P BSE Auto index (down 0.42%), the S&P BSE Realty index (down 0.29%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.26%), the S&P BSE Metal index (down 0.24%) and the S&P BSE IT index (down 0.22%), underperformed the Sensex. The S&P BSE Power index (up 0.43%), the S&P BSE Healthcare index (up 0.65%), the S&P BSE Oil & Gas index (up 0.88%), the S&P BSE Utilities index (up 0.88%), the S&P BSE Energy index (up 1.17%) and the S&P BSE FMCG index (up 1.50%) outperformed the Sensex.
Index heavyweight and cigarette major ITC rose 1.78% to Rs 318.05. The stock hit a high of Rs 321.55 and low of Rs 312 in intraday trade.
Pharma stocks advanced as the rupee edged lower against the dollar. Wockhardt (up 3.19%), Dr Reddy's Laboratories (up 0.68%), Glenmark Pharmaceuticals (up 2.23%), Lupin (up 0.76%), Sun Pharmaceutical Industries (up 1.42%), Alkem Laboratories (up 0.99%) and Aurobindo Pharma (up 1.23%) gained. Cadila Healthcare (down 2%), Cipla (down 0.68%) and GlaxoSmithKline Pharmaceuticals (down 0.32%) fell.
A lower rupee boosts the value of overseas earnings in rupee terms. Pharma companies derive substantial revenue from exports.
In the foreign exchange market, the partially convertible rupee was currently hovering at 68.22, compared with its close of 68.05 during the previous trading session.
FMCG major Hindustan Unilever gained 3.28% to Rs 792.95. The stock hit a high of Rs 795.90 and low of Rs 765.50 in intraday trade.
Bank stocks dropped. Among public sector banks, Bank of Baroda (down 0.27%), Punjab National Bank (down 2.61%), Allahabad Bank (down 3.01%), Bank of India (down 0.85%), Union Bank of India (down 3.49%) edged lower. State Bank of India (SBI) (up 0.81%) and Canara Bank (up 0.87%) rose.
Shares of private sector banks declined. Axis Bank (down 1.66%), Federal Bank (down 2.11%), IndusInd Bank (down 0.4%), Yes Bank (down 1.07%), HDFC Bank (down 0.15%) and Kotak Mahindra Bank (down 1.28%) edged lower.
ICICI Bank dropped 1.81%. The bank's net profit rose 4.46% to Rs 3018.13 crore on 13.11% rise in total income to Rs 17562.95 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours today, 28 January 2016.
The bank's gross non-performing assets (NPA) edged higher to Rs 21149.19 crore as on 31 December 2015 from Rs 15857.82 crore as on 30 September 2015 and Rs 13082.62 crore as on 31 December 2014. The bank's ratio of gross NPAs to gross advances stood at 4.72% as on 31 December 2015, compared with 3.77% as on 30 September 2015 and 3.4% as on 31 December 2014. The bank's ratio of net non-performing assets (NPAs) to net advances stood at 2.28% as on 31 December 2015, compared with 1.65% as on 30 September 2015 and 1.27% as on 31 December 2014.
Provisions and contingencies rose 190.3% to Rs 2844.05 crore in Q3 December 2015 over Q3 December 2014. The provisioning coverage ratio as on 31 December 2015 stood at 53.2%.
Most telecom stocks declined. Reliance Communications (down 1.19%) and Idea Cellular (down 4.67%) declined. Tata Teleservices (Maharashtra) rose 0.6%.
Bharti Airtel fell 2.32%. Bharti Airtel's consolidated net profit fell 22.24% to Rs 1116.90 crore on 3.76% rise in total income to Rs 24103.40 crore in Q3 December 2015 over Q3 December 2014. The results are as per International Financial Reporting Standards (IFRS). The result was announced after market hours today, 28 January 2016. EBITDA rose 8.3% to Rs 8475 crore in Q3 December 2015 over Q3 December 2014. EBITDA margin expanded to 35.2% in Q3 December 2015 from 33.7% in Q3 December 2014.
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 public sector 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 54 cents at $33.64 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 completed 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.
HDFC's consolidated net profit rose 11.01% 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 is finally heard.
Key benchmark indices snapped a three-day winning streak. The Sensex had gained 530.18 points or 2.21% in the preceding three trading sessions to settle at 24,492.39 yesterday, 27 January 2016, from its close of 23,962.21 on 21 January 2016. The Sensex has fallen 1,647.97 points or 6.3% in this month so far (till 28 January 2016). The Sensex is up 629.81 points or 2.64% from a 52-week low of 23,839.76 hit on 20 January 2016. The Sensex is off 5,555.17 points or 18.5% from a record high of 30,024.74 hit on 4 March 2015.
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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