A bout of volatility was witnessed in early trade as key benchmark indices turned negative after a firm start. The market breadth indicating the overall health of the market was positive. The barometer index, the S&P BSE Sensex, was currently down 21.91 points or 0.08% at 27,815.30.
Foreign portfolio investors bought shares worth a net Rs 123.49 crore yesterday, 20 May 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 103.58 crore yesterday, 20 May 2015, as per provisional data released by the stock exchanges.
In the overseas market, Asian stocks were trading mostly lower. US stocks ended slightly lower yesterday, 20 May 2015, after the minutes from last month's Federal Reserve meeting showed officials were unlikely to raise interest rates in June amid a slowdown in economic growth.
At 9:17 IST, the S&P BSE Sensex was down 21.91 points or 0.08% at 27,815.30. The index rose 61.21 points at the day's high of 27,898.42 at the onset of trading session. The index fell 31.29 points at the day's low of 27,805.92 at the onset of trading session.
The CNX Nifty was down 11.35 points or 0.13% at 8,411.90. The index hit a high of 8,437.80 in intraday trade. The index hit a low of 8,409.65 in intraday trade.
The BSE Mid-Cap index was down 7.19 points or 0.07% at 10,643.59. The decline in the index was lower than the Sensex's decline in percentage terms. The BSE Small-Cap index was up 14.46 points or 0.13% at 11,221.31, outperforming the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 495 shares rose and 364 shares fell. A total of 39 shares were unchanged.
Tata Steel fell 4.03% to Rs 346.80. On a consolidated basis, Tata Steel posted net loss of Rs 5674.29 crore in Q4 March 2015 as compared to net profit of Rs 1035.87 crore in Q4 March 2014. The result was announced after market hours yesterday, 20 May 2015. Total income from operations (net) fell 20.65% to Rs 33666.18 crore in Q4 March 2015 over Q4 March 2014. Total exceptional expense surged to Rs 4811.20 crore in Q4 March 2015 from Rs 45.84 crore in Q4 March 2014. The exceptional expense included non-cash write down of goodwill and other assets in certain nonperforming business units with the group, primarily relating to European operations and the group's investments in coal assets.
Yes Bank was down 1.06% to Rs 865.50 on turning ex-dividend today, 21 May 2015 for final dividend of Rs 9 per share for the year ended 31 March 2015.
Bajaj Finserv was up 0.39%. On a consolidated basis, Bajaj Finserv's net profit slipped 0.07% to Rs 707.12 crore on 17.07% rise in total income to Rs 2406.65 crore in Q4 March 2015 over Q4 March 2014. The result was announced after market hours yesterday, 20 May 2015. Bajaj Finserv said that the company recorded its highest ever consolidated profit in Q4 March 2015.
Bajaj Finserv said that the conditions continue to be challenging for the financial sector as a whole. Under such circumstances, the strong growth delivered by Bajaj Finance and Bajaj Allianz General Insurance Company (BALIC) is a testimony to the resilience of the group as well as the quality of the management across these enterprises. BALIC, which faced challenges in coping with significant changes in market dynamics, has improved on its new businesses, Bajaj Finserv said.
Indian Oil Corporation (IOC) was down 0.06%. With respect to media reports titled "Indian Oil Corp to own 45% stake in Ennore LNG's Tamil Nadu terminal", Indian Oil Corporation after market hours today, 20 May 2015, clarified that as per the company's earlier clarification on 5 January 2015, the company's board at its meeting held in October 2014 had accorded approval for setting up a 5 million tonne LNG project at Ennore through a joint venture company. The cost of the project is estimated at Rs 5150 crore. The project would be implemented through a joint venture company and not directly by the company, Indian Oil Corporation said. Indian Oil Corporation will hold 45% equity stake, TIDCO (a Tamil Nadu state government enterprise) will own 5% stake and balance 50% will be held by financial institutions. Indian Oil Corporation clarified that no significant or material development has taken place with respect to this project after this clarification issued by the company on 5 January 2015.
Asian stocks were trading mostly lower. Key benchmark indices in Hong Kong, Indonesia, Singapore, South Korea and Taiwan were down by 0.05% to 1.03%. Key benchmark indices in China and Japan were up by 0.46% to 0.77%.
US stocks ended slightly lower yesterday, 20 May 2015, after the minutes from last month's Federal Reserve meeting showed officials were unlikely to raise interest rates in June amid a slowdown in economic growth. Officials at the Fed's April policy meeting believed it would be premature to raise interest rates in June and that a bump in inflation was being offset by a weaker labour market and softer data, according to the minutes.
Also, first-quarter earnings season is drawing to a close, contributing to the muted action in the stock market.
Chicago Federal Reserve President Charles Evans reportedly said in Munich yesterday, 20 May 2015, that a hike in US interest rates is not likely to be appropriate until early 2016. Evans, who has long argued for a delay to rate hikes so as not to undermine economic recovery, said that the US central bank should not move on rates until there was greater confidence that its inflation goal could be hit within one or two years, according to reports. Evans is a voting member this year on Fed policy and among the most dovish of US central bankers.
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