Weakness in pharma stocks pulled key benchmark indices lower in what was a choppy trading session. With small losses for the day, the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their lowest closing level in almost two weeks. Benchmark indices witnessed intraday volatility as traders rolled over positions in the futures & options (F&O) segment from the near month May 2015 series to June 2015 series. The May 2015 F&O contracts expired today, 28 May 2015. The market breadth indicating the overall health of the market was negative. The Sensex fell 57.95 points or 0.21% to settle at 27,506.71.
In overseas markets, stocks in Shanghai fell sharply as stake sales of two state-owned banks by a Chinese sovereign-wealth fund rattled investors. European stocks edged lower as a reported deal between debt-laden Greece and its creditors hasn't come through, the prospect of which sent shares soaring in the previous session.
Hindalco Industries declined after the company reported weak Q4 results during market hours today, 28 May 2015. BPCL shrugged off weak Q4 results announced during market hours today, 28 May 2015. Index heavyweights Infosys and ITC edged higher. Shares of two other index heavyweights HDFC and Reliance Industries edged lower.
Key benchmark indices witnessed intraday volatility as traders rolled over positions in the futures & options (F&O) segment from the near month May 2015 series to June 2015 series. After languishing in positive zone earlier during the trading session, key benchmark indices reversed direction in early afternoon trade. Key indices soon extended losses, with the Sensex and the Nifty, both, hitting their lowest level in almost two weeks. High volatility was witnessed in late trade as benchmark indices trimmed losses.
Foreign portfolio investors sold shares worth a net Rs 863.95 crore into the secondary equity market yesterday, 27 May 2015, as per data from the depositories. Domestic institutional investors (DIIs) bought shares worth a net Rs 594.03 crore yesterday, 27 May 2015, as per provisional data released by the stock exchanges.
The S&P BSE Sensex fell 57.95 points or 0.21% to settle at 27,506.71, its lowest closing level since 15 May 2015. The index fell 210.31 points at the day's low of 27,354.35 in afternoon trade. The index rose 101.71 points at the day's high of 27,666.37 in early trade, its highest level since 26 May 2015.
The Nifty fell 15.60 points or 0.19% to settle at 8,319, its lowest closing level since 15 May 2015. The index hit a low of 8,270.15 in intraday trade. The index hit a high of 8,364.50 in intraday trade, its highest level since 26 May 2015.
The BSE Mid-Cap index fell 56.43 points or 0.53% to settle at 10,560.04. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index fell 17.37 points or 0.16% to settle at 11,145.04. The decline in this index was lower than the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,406 shares fell and 1,255 shares rose. A total of 115 shares were unchanged.
The total turnover on BSE amounted to Rs 2574 crore, lower than turnover of Rs 2869.66 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Metal index (down 0.38%), the S&P BSE Bankex (down 0.51%) and the S&P BSE Healthcare index (down 1.31%) underperformed the Sensex. The S&P BSE Consumer Durables index (up 1.31%), the S&P BSE IT index (up 0.67%), the S&P BSE Teck index (up 0.41%), the S&P BSE FMCG index (up 0.20%), the S&P BSE Oil & Gas index (up 0.17%), the S&P BSE Auto index (up 0.12%), the S&P BSE Power index (up 0.03%), the S&P BSE Capital Goods index (down 0.05%) and the S&P BSE Realty index (down 0.15%) outperformed the Sensex.
Pharma stocks declined. Wockhardt (down 8.9%), Cipla (down 2.58%), Aurobindo Pharma (down 2.57%), Sun Pharmaceutical Industries (down 1.94%), Dr. Reddy's Laboratories (down 1.74%), IPCA Laboratories (down 1.36%), Divi's Laboratories (down 1.08%), Glenmark Pharmaceuticals (down 0.46%), Lupin (down 0.35%), Strides Arcolab (down 0.24%) and Piramal Enterprises (down 0.09%), edged lower. Cadila Healthcare (up 0.90%) and GlaxoSmithKline Pharmaceuticals (up 1.22%), edged higher.
ONGC fell 0.95% to Rs 328.10. The stock hit a high of Rs 337.15 and a low of Rs 325 during the day. The company's net profit fell 19.51% to Rs 3935.07 crore on 3.07% increase in total income to Rs 23381.07 crore in Q4 March 2015 over Q4 March 2014. The result was announced after trading hours today, 28 May 2015.
The company's net profit fell 19.74% to Rs 17732.95 crore on 2.61% decline in total income to Rs 88238.18 crore in the year ended March 2015 over the year ended March 2014.
As per the decision of the Government of India no discount has been extended by ONGC to public sector oil marketing companies (PSU OMCs) during Q4 March 2015. During the corresponding previous year period i.e. in Q4 March 2014, ONGC gave a subsidy discount of a whopping Rs 16202 crore to PSU OMCs on sale of crude oil, PSD kerosene and domestic LPG.
There was an increase in oil and gas production by 6.19% (oil 0.86% and gas 16.37%) in the year ended March 2015 compared with the year ended March 2014. The incremental production was primarily due to better management and addition in the portfolio.
NMDC fell 0.45% to Rs 131.55. The stock hit a high of Rs 133 and a low of Rs 130.10 during the day. The company's net profit fell 31.35% to Rs 1347.09 crore on 19.43% decline in total income to Rs 3554.77 crore in Q4 March 2015 over Q4 March 2014. The result was announced after trading hours today, 28 May 2015.
Index heavyweight and cigarette major ITC rose 0.99% at Rs 320.90. The stock hit a high of Rs 321.60 and a low of Rs 317.05 in intraday trade.
Infosys rose 2.30% at Rs 2,014.30. The stock hit a high of Rs 2,027 and a low of Rs 1,976.30 in intraday trade.
Another index heavyweight and housing finance major HDFC fell 0.9% at Rs 1,228.15. The stock hit a high of Rs 1,248.10 and a low of Rs 1,209.10 in intraday trade.
Reliance Industries fell 1.15% at Rs 876.75. The stock hit a high of Rs 894 and a low of Rs 873.40 in intraday trade.
Hindalco Industries declined after the company reported weak Q4 results during market hours today, 28 May 2015. The stock shed 1.57% at Rs 132. The stock hit a high of Rs 133.90 and a low of Rs 130.20 in intraday trade. Hindalco Industries' net profit fell 35.71% to Rs 159.53 crore on 11.03% growth in total income to Rs 9601.63 crore in Q4 March 2015 over Q4 March 2014. The company's PBITDA (profit before interest, taxation, depreciation and amortization) rose 1.98% to Rs 1078 crore in Q4 March 2015 over Q4 March 2014.
Hindalco said there was an exceptional expenditure of Rs 146 crore in Q4 March 2015 consisting of liability provided towards Renewable Power Obligations (RPO). There was an exceptional expense of Rs 396 crore in Q4 March 2014.
BPCL shrugged off weak Q4 results announced during market hours today, 28 May 2015. The stock rose 2.57% at Rs 817.25. The stock hit a high of Rs 824.20 and a low of Rs 796 in intraday trade. BPCL's net profit fell 29.87% to Rs 2852.89 crore on 30.94% decline in total income to Rs 51928.12 crore in Q4 March 2015 over Q4 March 2014.
BPCL's average gross refining margin (GRM) during FY 2015 was $3.62 per barrel as against $4.33 per barrel in FY 2014.
GAIL (India) ended flat at Rs 381.15. The stock hit a high of Rs 385 and a low of Rs 372 in intraday trade. GAIL (India) during market hours today, 28 May 2015, said that in a significant step towards dispensing of CNG along Delhi-Jaipur highway corridor and distribution of natural gas to various industrial clusters in Rajasthan, Rajasthan State Gas (RSGL) has signed Heads of Agreement (HoA) with GAIL (India) to procure natural gas. RSGL is a joint venture company of GAIL Gas, a subsidiary of GAIL, and Rajasthan State Petroleum Corporation. The HoA will facilitate RSGL's strategy to execute Phase-1 of its project comprising of construction of mega CNG station at Neemrana and daughter booster station at Kukas near Jaipur.
The CGD rights for the city of Kota, presently authorized to GAIL Gas, are in advance stage of being transferred to RSGL which will open many business streams to RSGL including setting up CNG highway from Kota to Jaipur. In a recently held board meeting, RSGL had accorded approval for enhancing authorized capital from Rs 40 crore to Rs 200 crore.
RSGL is also planning natural gas connectivity to Jhalawar, Baran and Ghillot to fuel industrialization in the areas, GAIL (India) said in a statement.
PSU bank stocks edged higher. UCO Bank (up 4.23%), Syndicate Bank (up 2.89%), Andhra Bank (up 2.87%), Allahabad Bank (up 2.23%), Punjab National Bank (up 1.80%), Union Bank of India (up 1.48%), United Bank of India (up 1.02%), Bank of Maharashtra (up 0.91%), Punjab and Sind Bank (up 0.44%), Bank of Baroda (up 0.22%), Dena Bank (up 0.10%), IDBI Bank (up 0.07%) and Canara Bank (up 0.06%) edged higher. Corporation Bank (down 0.18%), Vijaya Bank (down 0.21%), Indian Bank (down 0.58%), Central Bank of India (down 0.65%) and Bank of India (down 6.22%), edged lower.
State Bank of India dropped on turning ex-dividend today, 28 May 2015. The stock fell 1.12% at Rs 277.50. SBI turned ex-dividend today, 28 May 2015, for a dividend of Rs 3.50 per share for the year ended 31 March 2015.
Most private banks edged lower. Yes Bank (down 1.28%), Federal Bank (down 0.87%), HDFC Bank (down 0.67%), Kotak Mahindra Bank (down 0.59%), IndusInd Bank (down 0.48%), Axis Bank (down 0.46%) and City Union Bank (down 0.3%) edged lower. ICICI Bank rose 0.38%.
The Sensex has risen 495.40 points or 1.83% in this month so far (till 28 May 2015). The Sensex has gained 7.29 points or 0.03% in this calendar year so far (till 28 May 2015). From a 52-week low of 24,163.62 on 30 May 2014, the Sensex has risen 3,343.09 points or 13.84%. The Sensex is off 2,518.03 points or 8.39% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, private weather forecaster Skymet yesterday, 27 May 2015, said that conditions are favorable for the onset of Southwest Monsoon in India. It expects monsoon to hit Kerala around 30 May 2015. The progress of monsoon over Peninsular India is expected to be delayed by a week, according to Skymet.
The government is scheduled to announce the data on gross domestic product (GDP) growth for Q4 March 2015 tomorrow, 29 May 2015. India's GDP grew 7.5% in Q3 December 2014.
Meanwhile, economists expects the Reserve Bank of India (RBI) to cut its benchmark lending rate viz. the repo rate by 25 basis points to 7.25% after a monetary policy review early next week. Economists expect rate cut from the central bank in an attempt to kick-start the economy which has been showing signs of decelerating. The RBI is scheduled to announce the outcome of its second bi-monthly monetary policy review for the year 2015-16 at 11:00 IST on Tuesday, 2 June 2015.
In overseas markets, European shares edged lower today, 28 May 2015, as a reported deal between debt-laden Greece and its creditors hasn't come through, the prospect of which sent shares soaring in the previous session. Key benchmark indices in France and Germany were down by 0.37% to 0.56%. In UK, the FTSE 100 index was up 0.15%.
Greece, which is feared to be running out of cash, needs to cut a deal to unlock its next round of bailout funds. Greece is scheduled to repay euro 1.6 billion ($1.76 billion) to the International Monetary Fund (IMF) between June 5-19. Meanwhile, European Central Bank (ECB) Governing Council member Ewald Nowotny today, 28 May 2015, reportedly said the ECB can't provide interim funding to Greece under current rules.
Nowotny also reportedly said that the ECB will have to be very careful when it eventually unwinds its quantitative-easing (QE) program. He, however, indicated that the ECB has no plans to end QE prematurely. The ECB launched its 60-billion-euro ($66 billion) a-month QE program in March, and the economic data out of the eurozone have been surprisingly good since. That has fueled speculation the ECB will have to begin the tapering process sooner than the planned September 2016 timetable.
Stocks in Shanghai fell sharply today, 28 May 2015, as stake sales of two state-owned banks by a Chinese sovereign-wealth fund rattled investors. The Shanghai Composite index lost 6.5%. The filings to Hong Kong Exchanges & Clearing showed that China Central Huijin Investment, a unit of China's sovereign wealth fund China Investment Corp. (CIC), reduced its stakes in the country's biggest state-owned banks for the first time. Meanwhile, Chinese securities firms also took a hard hit after several brokers tightened up their margin-financing requirements in recent days, including increasing the amount of cash clients must put down for their deposits.
In Hong Kong, the Hang Seng index was off 2.23%. In other Asian markets, Key indices in Singapore and Indonesia were off 0.15% to 0.3%. Key indices in Japan, Taiwan and South Korea were up 0.16% to 0.39%.
US stocks edged higher yesterday, 27 May 2015, recovering most of the losses from the previous session on the back of a big rally in tech stocks, which propelled the Nasdaq Composite to a fresh record close.
The President of the San Francisco Fed John Williams today, 28 May 2015, said that it is not clear how the Federal Reserve should respond to the purported effect that low interest rates are causing excessive risk-taking in financial markets. In a speech to the Monetary Authority of Singapore, Williams said it could either argue for a more rapid rate hike to discourage further risk or imply a more gradual course of action to mitigate the risk of a market tantrum. Overall, Williams said he was "convinced" that monetary policy should not be used to address risks to financial stability given the "very real and sizable costs, not to mention that the potential benefits, are anything but certain."
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