Key benchmark indices extended recovery in mid-morning trade and hovered near the flat line. The barometer index, the S&P BSE Sensex, was down 12.02 points or 0.05%, up 107.90 points from the day's low and off 21.71 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
Tata Consultancy Services (TCS) surged after the company after trading hours on Thursday, 17 July 2014, reported good Q1 June 2014 result. PSU OMCs dropped as crude oil futures jumped amid Europe's worst geopolitical crisis since the end of the cold war.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1912.42 crore on Thursday, 17 July 2014, as per provisional data from the stock exchanges.
At 11:23 IST, the S&P BSE Sensex was down 12.02 points or 0.05% to 25,549.14. The index rose 9.69 points at the day's high of 25,570.85 in early trade. The index fell 119.92 points at the day's low of 25,441.24 in morning trade, its lowest level since 16 July 2014.
The CNX Nifty was down 6.95 points or 0.09% to 7,633.50. The index hit a high of 7,639.90 in intraday trade. The index hit a low of 7,595.50 in intraday trade, its lowest level since 16 July 2014.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,211 shares declined and 1,106 shares rose. A total of 87 shares were unchanged.
The BSE Mid-Cap index fell 10.86 points or 0.12% to 9,280.83, underperforming the Sensex. The BSE Small-Cap index rose 13.17 points or 0.13% to 10,206.29, outperforming the Sensex.
The total turnover on BSE amounted to Rs 1117 crore by 11:15 IST compared to Rs 712 crore by 10:15 IST.
Among the 30-share Sensex pack, 19 stocks declined and rest of them gained.
Hindalco Industries (down 2.25%), Bharat Heavy Electricals (Bhel) (down 1.87%) and Coal India (down 1.66%) edged lower from the Sensex pack.
TCS surged 3.54%. TCS after trading hours on Thursday, 17 July 2014, reported 3.9% growth in consolidated net profit to Rs 5568 crore on 2.6% growth in revenue to Rs 22111 crore in Q1 June 2014 over Q4 March 2014. The bottom line was boosted by an exceptional item viz. a write back of depreciation charge of Rs 489.75 crore (net) due to a change in deprecation policy. Operating profit dropped 6% to Rs 5935 crore in Q1 June 2014 over Q4 March 2014.
TCS said that the company added five new $50 million plus clients during the quarter. TCS Chief Executive Officer and Managing Director N Chandrasekaran said that the company has a strong demand pipeline in place. TCS Chief Financial Officer Rajesh Gopinathan said that the company's disciplined stance in operations helped it mitigate the impact of multiple headwinds like currency movements, accelerated depreciation norms and wage hikes during the quarter. He said that the company will continue to maintain operating margins in the desired band by operating efficiently.
In Q1 June 2014, TCS posted the highest incremental revenue of $191 million in the last 15 quarters driven by holistic growth across markets led by North America, the company said in a statement. Growth was seen across all industry segments led by Media & Information Services, Life Sciences, Retail and Telecom, with all non-BFS verticals growing in excess of five percent sequentially, TCS said.
PSU OMCs dropped as crude oil futures jumped amid Europe's worst geopolitical crisis since the end of the cold war. HPCL (down 2.67%), BPCL (down 1.57%), and Indian Oil Corporation (down 1.21%) edged lower.
US crude oil futures for August 2014 delivery rose 50 cents to $103.69 a barrel in electronic trade today, 18 July 2014. The contract had jumped $1.99 a barrel or 1.96% to settle at $103.19 on the New York Mercantile Exchange on Thursday, 17 July 2014, amid escalating geopolitical tensions.
Higher crude oil prices could increase under-recoveries of state-run oil marketing companies (PSU OMCs) on domestic sale of diesel, LPG and kerosene at controlled prices. The government has adopted the policy of gradually increasing diesel prices to eliminate under recovery and deregulate the diesel prices. The government has already freed pricing of petrol.
The Securities and Exchange Board of India (Sebi) on Thursday, 17 July 2014 put out draft regulations for infrastructure investment trusts that were announced in Union Budget 2014-15 on 10 July 2014 to provide easier financing options to developers of public works. Such trusts will be able to invest in infrastructure projects only directly or through special purpose vehicles (SPVs), the market regulator said. For public-private partnership (PPP) projects, investments can be routed only be through an SPV, Sebi said.
The Reserve Bank of India (RBI) on Thursday, 17 July 2014 issued draft guidelines for those seeking a license to set up a payments bank or a small bank. The minimum paid up capital required for both categories of bank licenses would be Rs 100 crore of which the promoter would have to contribute at least 40% initially, the RBI said. Payments banks can accept deposits and remittances of funds but cannot provide loans. Small banks can lend, but have more limited areas of operations than a full-fledged commercial lender. Both, payments banks and small banks are niche or differentiated banks with the common objective of furthering financial inclusion, the RBI said.
The entities eligible to set up a payments bank include existing non-bank Pre-paid Instrument Issuers (PPIs), Non-Banking Finance Companies (NBFCs), corporate BCs, mobile telephone companies, super-market chains, companies, real sector cooperatives, and public sector entities. The entities eligible to set up a small bank include resident individuals with ten years of experience in banking and finance, companies and societies, NBFCs, Micro Finance Institutions and Local Area Banks, the RBI said.
Volatility struck bourses in early trade as the key benchmark indices slipped in negative zone after reversing an initial decline triggered by negative Asian stocks. Key benchmark indices cut losses after hitting fresh intraday low in morning trade. Key benchmark indices extended recovery in mid-morning trade and hovered near the flat line.
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade. The partially convertible rupee was hovering at 60.33, compared with its close of 60.18 on Thursday, 17 July 2014.
Asian stocks edged lower today, 18 July 2014 on rising geopolitical tension after news on Thursday, 17 July 2014 of a downed Malaysian airlines jet at the Ukraine-Russia border. Key benchmark indices in Hong Kong, Taiwan, Singapore, Japan and South Korea fell by 0.1% to 1.16%. Key benchmark indices in China and Indonesia rose 0.37% to 0.41%.
Trading in US index futures indicated that the Dow could fall 34 points at the opening bell on Friday, 18 July 2014. US markets dropped on Thursday, 17 July 2014 on the news that a Malaysian Airlines passenger jet had crashed near the Ukraine-Russia border.
The Boeing Co. 777 crashed en route to Kuala Lumpur from Amsterdam in the main battleground of Ukraine's civil war, threatening to escalate tensions in Europe's worst geopolitical crisis since the end of the cold war. Israel's movement of troops and tanks into the coastal enclave marks the first significant ground operation in Gaza since 2009.
Meanwhile, Russian President Vladimir Putin said Ukraine's government bore responsibility for the crash because it wouldn't have occurred without the current strife. Putin has repeatedly denied Russian involvement in the fighting in Ukraine's east, which erupted in the wake of former president Viktor Yanukovych's ouster earlier this year.
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