A bout of volatility was witnessed as key benchmark indices sharply pared losses in morning trade. The barometer index, the S&P BSE Sensex was currently off 19.50 points or 0.07% at 27,511.91. The market breadth indicating the overall health of the market was negative.
IT stocks were mixed. Tech Mahindra tumbled after the company reported weak Q4 March 2015 results. Shares of public sector oil marketing companies (PSU OMCs) advanced on decline in global crude oil prices yesterday, 26 May 2015.
Earlier, the S&P BSE Sensex hit its lowest level in more than 1-1/2-weeks and the 50-unit CNX Nifty hit its lowest level in more than a week.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month May 2015 series to June 2015 series. The near month May 2015 F&O contracts expire tomorrow, 28 May 2015.
Foreign portfolio investors bought shares worth a net Rs 114.81 crore yesterday, 26 May 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 123.85 crore yesterday, 26 May 2015, as per provisional data released by the stock exchanges.
In the overseas market, Asian stocks were trading lower today, 27 May 2015. US stock markets declined yesterday, 26 May 2015.
At 10:15 IST, the S&P BSE Sensex was down 19.50 points or 0.07% at 27,511.91. The index lost 167.69 points at the day's low of 27,363.72 in early trade, its lowest level since 15 May 2015. The index rose 17.23 points at the day's high of 27,548.64 in morning trade.
The CNX Nifty was down 15.95 points or 0.19% at 8,323.40. The index hit a low of 8,277.95 in intraday trade, its lowest level since 18 May 2015. The index hit a high of 8,333.35 in intraday trade.
The BSE Mid-Cap index was down 13.50 points or 0.13% at 10,596.46. The BSE Small-Cap index was down 25.10 points or 0.22% at 11,140.55. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 974 shares fell and 765 shares rose. A total of 70 shares were unchanged
IT stocks were mixed. Infosys (down 0.56%), Wipro (down 0.51%) and Oracle Financial Services Software (down 1.71%) edged lower. TCS (up 0.41%), HCL Technologies (up 0.06%), MindTree (up 0.04%) and CMC (up 0.66%) edged higher.
Tech Mahindra tumbled after the company reported weak Q4 March 2015 results. The stock was off 11.99% at Rs 563.75. Tech Mahindra's consolidated net profit before special adjustment related to Mahindra Engineering Services (MESL) fell 39.23% to Rs 472 crore on 6.33% increase in revenue from services to Rs 6116.80 crore in Q4 March 2015 over Q3 December 2014. The result was announced after market hours yesterday, 26 May 2015. The results are not comparable. The 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.
Tech Mahindra's earnings before interest, taxation, depreciation and amortization (EBITDA) fell 19.95% to Rs 928.60 crore in Q4 March 2015 over Q3 December 2014.
Tech Mahindra announced after market hours yesterday, 26 May 2015, that its board approved the proposal for amalgamation of Tech Mahindra BPO and New vC Services, wholly-owned subsidiaries, with Tech Mahindra. As per the proposal, Tech Mahindra BPO and New vC Services would be merged with Tech Mahindra. The appointed date of the merger scheme is 1 April 2015. Tech Mahindra will not issue new shares upon merger since Tech Mahindra BPO and New vC Services are its wholly owned subsidiaries. The merger is subject to the approval from High Court of Bombay and shareholders and creditors of the companies.
Shares of public sector oil marketing companies (PSU OMCs) advanced on decline in global crude oil prices yesterday, 26 May 2015. BPCL (up 1.69%), HPCL (up 0.84%) and Indian Oil Corporation (1.3%) edged higher.
Decline in crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices to that extent. A weak rupee raises the cost of imports. The government has already decontrolled pricing of petrol and diesel.
Brent crude oil futures edged higher after previous trading session's steep decline. Brent for July settlement was up 21 cents at $63.93 a barrel. The contract had declined $1.65 a barrel or 2.52% to settle at $63.72 a barrel during previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 64.1025, compared with closing of 63.98 during the previous trading session.
In the overseas market, Asian stocks were trading lower today, 27 May 2015. Key indices in Hong Kong, Singapore, South Korea and Indonesia were off 0.26% to 1.56%. Key indices in China, Japan and Taiwan were up 0.16% to 0.34%.
Inflation in Japan won't hit a sustained 2% pace this year and any pickup in prices could take considerable time, the Bank of Japan (BoJ) said in minutes of its April board meeting released yesterday, 26 May 2015. A key going forward will be how firms move to raise prices and wages, but for now there is no need for further easing, the minutes showed.
US stock markets declined yesterday, 26 May 2015.
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