A bout of volatility was witnessed as key benchmark indices recovered from lower level after trimming intraday gains in afternoon trade. The market breadth indicating the overall health of the market was strong. The barometer index, the S&P BSE Sensex, was currently up 214.72 points or 0.76% at 28,396.86. Meanwhile, the Rajya Sabha Select Committee on the Goods and Services Tax (GST) bill presented its report in the Rajya Sabha today, 22 July 2015, according to reports.
Index heavyweight Reliance Industries (RIL) edged higher. Shares of public sector oil marketing companies (PSU OMCs) rose. Shares of upstream oil exploration & production (E&P) firms also gained. Cement stocks edged lower. Bajaj Finance dropped amid volatility after the company reported strong Q1 results.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 226.88 crore yesterday, 21 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 146.32 crore yesterday, 21 July 2015, as per provisional data released by the stock exchanges.
Earlier, key indices bounced back after an initial slide triggered by weakness in Asian stocks. The Sensex and the 50-unit CNX Nifty, both, hit one-week low in early trade.
In overseas stock markets, European stocks edged lower. Asian stocks edged lower amid disappointing results from technology and industrial heavyweights in the US. US stocks edged lower yesterday, 21 July 2015, after disappointing quarterly reports from IMB and United Technologies Corp.
At 13:15 IST, the S&P BSE Sensex was up 214.72 points or 0.76% at 28,396.86. The index jumped 280.80 points at the day's high of 28,462.94 in early afternoon trade. The index lost 111.23 points at the day's low of 28,070.91 in early trade, its lowest level since 15 July 2015.
The CNX Nifty was up 70.80 points or 0.83% at 8,600.25. The index hit a high of 8,615.95 in intraday trade. The index hit a low of 8,498.65 in intraday trade, its lowest level since 15 July 2015.
The BSE Mid-Cap index was up 88.36 points or 0.8% at 11,178.95, outperforming the Sensex. The BSE Small-Cap index was up 69.22 points or 0.6% at 11,646.04, underperforming the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,616 shares gained and 967 shares fell. A total of 101 shares were unchanged.
Shares of public sector oil marketing companies (PSU OMCs) edged higher. Indian Oil Corporation (up 2.42%), BPCL (up 2.05%) and HPCL (up 3.56%) edged higher.
Shares of upstream oil exploration & production (E&P) firms gained. ONGC (up 2.2%) edged higher. Oil India (down 0.21%) edged lower.
Index heavyweight Reliance Industries (RIL) rose 3.4% at Rs 1,041.80. The stock hit a high of Rs 1,046.50 and a low of Rs 1,005.15 so far during the day.
Cairn India rose 0.61% at Rs 163.75. The stock hit a high of Rs 164.60 and a low of Rs 156.80 so far during the day. Cairn India's consolidated net profit fell 23.59% to Rs 834.98 crore on 36.18% decline in total income to Rs 3190.66 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 21 July 2015. Cairn India's average price realisation dropped 42% to $56 per barrel in Q1 June 2015 over Q1 June 2014 mainly due to 43% decline in oil prices to $56.30 per barrel in Q1 June 2015 over Q1 June 2014.
Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter was Rs 1302 crore with healthy EBITDA margin of 50%. EBITDA for the quarter is higher by 79% compared to Q4 March 2015 which saw an exploration cost write-off of Rs 552 crore. EBITDA margins were boosted by lower operating costs which for Rajasthan waterflood case have reduced by 10% from the previous fiscal year average of $5.8 to $5.2/boe in Q1 June 2015 as a result of reduction in well and facility maintenance costs and MG&A. Along with field opex, corporate MGA too has been brought down by 14% as a result of manpower optimisation and decrease in overheads on account of various cost optimisation initiatives currently underway.
Total cashflow from operations for the quarter was Rs 1268 crore. This quarter saw a net capex spend of $104 million. The company closed the quarter with a healthy cash and cash equivalent position of Rs 16467 crore; of which 72% is invested in rupee funds and the rest in dollar funds.
In its outlook for the year ending 31 March 2016 (FY 2016), the company said it continues to remain committed to creating long term shareholder value. Despite low oil prices and substantial cut in capital expenditure (capex), the company will at a minimum maintain Rajasthan production in current year at the year ending 31 March 2015 (FY 2015) levels. Planned capital investment is for a net capex of $500 million; 45% in Core MBA fields, 40% in Growth projects of Barmer Hill, Satellite Fields & Gas and 15% in exploration. The company retains the flexibility to invest balance $1.4 billion as oil prices improve and costs bottom out and also aims to have healthy cash flows post capex so as to retain the ability to pay dividends.
GAIL (India) rose 1.07%. With respect to news article titled "GAIL plans to buy US shale gas asset for $1.5 billion to meet future Indian demand", GAIL (India) during market hours today, 22 July 2015, clarified that at present there is no concrete discussion or proposal for buying any US Shale gas asset.
Cement stocks edged lower. UltraTech Cement (down 0.05%), ACC (down 0.62%) and Shree Cement (down 3.38%) edged lower. Ambuja Cements (up 0.74%) edged higher.
Grasim Industries was up 0.84% at Rs 3,701.70. The stock hit a high of Rs 3,705 and a low of Rs 3,667 so far during the day. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Bajaj Finance dropped amid volatility after the company reported strong Q1 results. The stock was down 0.12% at Rs 5,094.90. The stock hit a high of Rs 5,203.65 and a low of Rs 4,975.40 so far during the day. Bajaj Finance's net profit rose 31% to Rs 276 crore on 33% growth in total income to Rs 1656 crore in Q1 June 2015 over Q1 June 2014. The result was announced during market hours today, 22 July 2015.
Bajaj Finance's loan losses and provisions rose 24% to Rs 103 crore in Q1 June 2015 over Q1 June 2014. The company continued to strengthen its provisioning policy, Bajaj Finance said in a statement.
The company's gross non-performing assets (NPAs) and net NPAs as of 30 June 2015 stood at 1.69% and 0.55% respectively. The provisioning coverage ratio stood at 68% as of 30 June 2015. The company continues to provide for loan losses in excess of RBI requirements, Bajaj Finance said. During Q1 June 2015, as required by RBI guidelines, the company has moved its NPA recognition policy from 180 days over-dues to 150 days over-dues.
Bajaj Finance's capital adequacy ratio (including Tier-II capital) as of 30 June 2015 stood at 20.72%. The Tier-I capital stood at 17.41%. The company continues to be well capitalized to support its growth trajectory, Bajaj Finance said in a statement.
Meanwhile, the Rajya Sabha Select Committee on the Goods and Services Tax (GST) bill presented its report in the Rajya Sabha today, 22 July 2015, according to media reports. The government is looking forward to push through key reforms bills in the monsoon session of the Parliament which began yesterday, 21 July 2015.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 21 July 2015, that the Southwest Monsoon was active over Andaman & Nicobar Islands, West Madhya Pradesh and Konkan & Goa during past 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 7% below the Long Period Average (LPA) until 21 July 2015. Region wise, the rainfall was 14% below the LPA in Central India, 12% below the LPA in South Peninsula, 6% below the LPA in East & Northeast India and 8% above the LPA in Northwest India until 21 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key, with July being a crucial month for the sowing of Kharif crops. 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.
In overseas stock markets, European stocks edged lower today, 22 July 2015. Key indices in Germany, UK and France were off 0.41% to 0.91%.
Standard & Poor's yesterday, 21 July 2015, upgraded Greece's sovereign credit rating by two notches and revised its outlook to stable from negative, citing euro zone countries' initial agreement to start negotiations with Athens on a third bailout.
Asian stocks edged lower today, 22 July 2015, amid disappointing results from technology and industrial heavyweights in the US. Key benchmark indices in Singapore, Taiwan, Hong Kong, Japan and South Korea fell by 0.43% to 1.19%. Key benchmark indices in China and Indonesia rose 0.05% to 0.22%.
Chinese business sentiment fell sharply in July, suggesting that recent dramatic falls in company share prices had severely dented optimism. The MNI China Business Indicator fell 8.8% to 48.8 in July, below the 50 score which marks optimism. The reading matches the April level, which was the lowest since January 2009. The index had jumped 7.6% in June to 53.5. MNI, a part of Deutsche Bse Group, surveys 200 companies listed on the Shanghai and Shenzhen stock exchanges.
Trading in US index futures indicated a weak opening of US stocks later in the global day today, 22 July 2015, after Apple Inc.'s forecast disappointed investors. Trading in US index futures indicated that the Dow could slide 65 points at the opening bell. US stocks dropped yesterday, 21 July 2015 on weak earnings from bellwethers International Business Machines Corp. (IBM) and United Technologies Corp.
Powered by Capital Market - Live News
