A range bound movement was witnessed as key benchmark indices alternately swung between positive and negative zone near the flat line in early afternoon trade. The barometer index, the S&P BSE Sensex, was currently up 31.15 points or 0.11% at 27,592.53. The market breadth indicating the overall health of the market was positive. Meanwhile, in the global commodities markets, Brent crude oil futures edged lower on persistent worries about a global supply glut. The decline in crude oil prices augurs well for India. In overseas stock markets, Chinese stocks edged lower in volatile trade.
Telecom stocks declined. Most IT stocks were trading higher. Punjab National Bank (PNB) jumped after announcing Q1 June 2015 results.
Earlier during the session, key benchmark indices witnessed high intraday volatility. The Sensex had bounced back after hitting its lowest level in more than four weeks in morning trade. The 50-unit CNX Nifty had bounced back after hitting 2-1/2-week low in morning trade.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month July 2015 series to August 2015 series. The near month July 2015 derivatives contracts expire on Thursday, 30 July 2015.
Foreign portfolio investors sold shares worth a net Rs 859.94 crore yesterday, 27 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 238.66 crore yesterday, 27 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian stocks were mixed. US stocks fell yesterday, 27 July 2015, after the steepest decline in Chinese stocks in eight years raised concerns that cooling growth in the world's No. 2 economy could hurt China's trading partners.
At 12:18 IST, the S&P BSE Sensex was up 31.15 points or 0.11% at 27,592.53. The index jumped 115.27 points at the day's high of 27,676.65 in morning trade. The index fell 55.63 points at the day's low of 27,505.75 in morning trade, its lowest level since 29 June 2015.
The Nifty was up 11.70 points or 0.14% at 8,372.70. The index hit a high of 8,397.40 in intraday trade. The index hit a low of 8,344.85 in intraday trade, its lowest level since 10 July 2015.
The BSE Mid-Cap index was up 23.99 points or 0.22% at 11,018.01. The BSE Small-Cap index was up 41.48 points or 0.36% at 11,584.59. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,355 shares rose and 1,032 shares fell. A total of 110 shares were unchanged.
Punjab National Bank (PNB) was up 5.28% to Rs 142.45. The bank's net profit fell 48.7% to Rs 720.71 crore on 4.73% rise in total income to Rs 13432.05 crore in Q1 June 2015 over Q1 June 2014. The result was announced during trading hours today, 28 July 2015.
PNB's provisions and contingencies jumped 95.27% to Rs 1811.39 crore in Q1 June 2015 over Q1 June 2014. PNB's provisioning coverage ratio stood at 59.32% as on 30 June 2015.
The state-run bank said it has no direct exposure to the coal blocks/mines cancelled by the Supreme Court of India. However, the impact if any, of such cancellation on the valuation of security, penalty imposed and the consequent viability of the projects financed by the bank dependent on such coal blocks/mines, being unascertainable at this stage has not been considered, PNB said.
PNB's gross non-performing assets on absolute basis stood at Rs 25397.42 crore as on 30 June 2015, lower than Rs 25694.86 crore on 31 March 2015 and higher than Rs 19602.84 crore as on 30 June 2014. The ratio of gross non-performing assets to gross advances stood at 6.47% as on 30 June 2015, lower than 6.55% on 31 March 2015 and higher than 5.48% as on 30 June 2014. The ratio of net non-performing assets to net advances stood at 0.46% as on 30 June 2015, higher than 0.2% as on 31 March 2015 and lower than 1% as on 30 June 2014.
Most IT stocks were trading higher. Persistent Systems (up 1.51%), CMC (up 1.07%), Oracle Financial Services Software (up 0.61%), Infosys (up 0.58%) and Hexaware Technologies (up 0.52%), edged higher. HCL Technologies (down 0.36%), MindTree (down 0.53%), Wipro (down 0.81%) and MphasiS (down 1.3%), edged lower.
Tech Mahindra was up 0.53% to Rs 521.75. The stock hit a high of Rs 527.40 and a low of Rs 518 so far in intraday trade. Tech Mahindra's consolidated net profit rose 43.2% to Rs 676 crore on 2.9% growth in revenue to Rs 6294 crore in Q1 June 2015 over Q4 March 2015. The result was announced after market hours yesterday, 27 July 2015. Tech Mahindra's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 0.8% to Rs 936 crore in Q1 June 2015 over Q4 March 2015. Tech Mahindra said Q4 March 2015 results include the results of Lightbridge Communications Corporation (LCC), USA and SOFGEN Holdings (SOFGEN) which were acquired as 100% subsidiary effective from 2 January 2015 and 14 March 2015 respectively.
In dollar terms, Tech Mahindra's consolidated net profit rose 40.5% to $106 million on 0.5% growth in revenue to $989 million in Q1 June 2015 over Q4 March 2015.
Commenting on the company's Q1 performance, Vineet Nayyar, Executive Vice Chairman of Tech Mahindra said that the company's results are in line with expectations and the management remains hopeful of improving the company's performance by expanding its business in the coming quarters. C P Gurnani, Managing Director & CEO of Tech Mahindra said that the company's strategic investments and initiatives across Digital are resonating well with the businesses it serves.
TCS was up 0.66% to Rs 2,513.50. The company announced during trading hours today, 28 July 2015, that the Bank of Bhutan has selected its IT product TCS BaNCS for its Core Banking Solution to power its next generation banking services. Bank of Bhutan is the largest commercial bank in the Kingdom of Bhutan with a network of 46 branches, including extension branches, 62 ATMs, a state-of-the-art mobile banking solution and a dedicated contact center, fulfilling the banking needs of the public, business community and the Royal Government of Bhutan.
Telecom stocks declined. MTNL (down 1.86%), Tata Teleservices (Maharashtra) (down 1.08%), Reliance Communications (down 1.04%), Bharti Airtel (down 0.45%) and Idea Cellular (down 0.32%), edged lower.
Meanwhile, in the global commodities markets, Brent crude oil futures edged lower on persistent worries about a global supply glut. Brent for September settlement was currently off 50 cents at $53.97 a barrel. The contract had fallen $1.15 a barrel or 2.11% to settle at $53.47 a barrel during the previous trading session.
India imports about 80% of its crude requirements and a decline in crude eases concerns on fiscal deficit, inflation and gives more room for the government to boost growth through spending on infrastructure.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 27 July 2015, that the Southwest Monsoon was vigorous over Rajasthan and Gujarat state and was active over Gangetic West Bengal, Odisha and West Madhya Pradesh during the past 24 hours until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 4% below the Long Period Average (LPA) until 27 July 2015. Region wise, the rainfall was 15% below the LPA in South Peninsula, 7% below the LPA in East & Northeast India, 5% below the LPA in Central India and 11% above the LPA in Northwest India until 27 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key; July accounts for about 33% of precipitation during the June-September monsoon season and is critical for 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 markets, Chinese shares edged lower in volatile trade today, 28 July 2015. In mainland China, the Shanghai Composite was currently off 1.57%. In Hong Kong, the Hang Seng index was up 0.88%. China's central bank People's Bank of China today, 28 July 2015, announced that it would inject 50 billion yuan ($8.05 billion) into money markets in its biggest liquidity boost since 7 July 2015. The central bank also said in a statement before the stock market opened that it would use "various monetary tools" to maintain "appropriate levels of liquidity", a signal that the further monetary easing could be in store. The Shanghai Composite Index fell 8.5% yesterday, 27 July 2015, marking its biggest one day drop in more than eight years.
In other Asian markets, key benchmark indices in South Korea and Taiwan were up 0.07% to 0.30%. Key benchmark indices in Japan, Singapore and Indonesia and were off 0.10% to 0.91%.
US stocks fell yesterday, 27 July 2015, after the steepest decline in Chinese stocks in eight years raised concerns that cooling growth in the world's No. 2 economy could hurt China's trading partners. Market reaction to better-than-expected durable-goods orders also was negative, as investors continued to view each data-point as a factor in the Federal Reserve's decision about the timing and pace of interest rate hikes.
Meanwhile, a two-day policy meeting of the Federal Reserve Open Market Committee (FOMC) begins today, 28 July 2015. The US central bank is widely expected to keep interest rates at a record low at the meeting, but expectations are rising that a rate hike could come later this year.
Powered by Capital Market - Live News
