Disappointing Q4 results from IT major TCS triggered losses for Indian stocks on the last trading session of the week. TCS led decline in IT stocks. After languishing in red almost throughout the trading session, the key benchmark indices extended losses in late trade as worries mounted that Greece's debt troubles could trigger an exit for the country from the eurozone and possibly financial contagion. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, hit their lowest level in more than a week.
The Sensex was provisionally off 243.98 points or 0.85% at 28,422.06. The Nifty was provisionally off 100.70 points or 1.16% at 8,606. The fall in the Nifty in percentage terms was higher than the decline in the Sensex because a number of Nifty constituents which are not part of the Sensex declined. Lupin, IndusInd Bank, Idea Cellular, Yes Bank, Kotak Mahindra Bank, Tech Mahindra, Cairn India and Zee Entertainment dropped. All these are Nifty constituents which are not part of the Sensex. Shares of all the three cement makers - ACC, Ambuja Cements and UltraTech Cement - which are Nifty constituents but are not part of the Sensex also dropped.
The market breadth indicating the overall health of the market was negative. The BSE Mid-Cap index was off 2.01%. The BSE Small-Cap index was off 1.45%. The fall in both these indices was higher than the Sensex's decline in percentage terms. Losses ranged from 2% to about 13% for quite a few stocks which are the constituents of the BSE Small-Cap index.
Index heavyweight Reliance Industries (RIL) rose in volatile trade ahead of its Q4 March 2015 results today, 17 April 2015. Sun Pharmaceutical Industries fell as shares allotted by the company to shareholders of Ranbaxy Laboratories on merger of the company with Sun Pharma were admitted for trading on the bourses today, 17 April 2015. Lupin lost after a foreign brokerage reportedly downgraded the stock to neutral, citing slower US sales growth.
Meanwhile, Finance Minister Arun Jaitley yesterday, 16 April 2015, signaled that the government is unlikely to intervene with regard to income tax notices directing payment of Minimum Alternate Taxation (MAT) by foreign institutional investors (FIIs) for past years.
Separately, Prime Minister Narendra Modi assured investors of a predictable and stable tax regime while interacting with major pension fund managers of Canada yesterday, 16 April 2015.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan was quoted as saying in a newspaper interview that talks between RBI and the government have not yet focused on the composition of a planned monetary policy committee.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 214.36 crore yesterday, 16 April 2015, as per provisional data as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 432.27 crore yesterday, 16 April 2015, as per provisional data.
In overseas markets, European stocks edged lower today, 17 April 2015, as worries mounted that Greece's debt troubles could trigger an exit for the country from the eurozone and possibly financial contagion. Earlier during the global day, Asian stocks dropped. US stocks closed slightly lower yesterday, 16 April 2015, as investors digested a mixed batch of economic reports.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged lower as data showing increase in oil production from the Organization of the Petroleum Importing Countries last month tempered some of the bullishness among investors.
As per provisional closing, the S&P BSE Sensex was down 243.98 points or 0.85% at 28,422.06. The index lost 262.28 points at the day's low of 28,403.76 in late trade, its lowest level since 7 April 2015. The index gained 30.15 points at the day's high of 28,696.19 at onset of the day's trading session.
The CNX Nifty was down 100.70 points or 1.16% at 8,606. The index hit a low of 8,596.70 in intraday trade, its lowest level since 7 April 2015. The index hit a high of 8,699.85 in intraday trade.
The market breadth indicating the overall health of the market was negative. On BSE, 1,637 shares fell and 1,174 shares rose. A total of 120 shares were unchanged.
The total turnover on BSE amounted to Rs 3435 crore, higher than turnover of Rs 3085.13 crore registered during the previous trading session.
The BSE Mid-Cap index was off 221.25 points or 2.01% at 10,771.77. The BSE Small-Cap index was off 170.51 points or 1.45% at 11,622.23. The fall in both these indices was higher than the Sensex's decline in percentage terms.
Index heavyweight Reliance Industries (RIL) slipped 0.16% to Rs 925.95. The stock was volatile ahead of its Q4 March 2015 results today, 17 April 2015. The stock hit high of Rs 943.80 and low of Rs 923.15.
On a consolidated basis, RIL reported 8.5% rise in net profit to Rs 6381 crore on 34.76% drop in total income from operations (net) to Rs 67470 crore in Q4 March 2015 over Q4 March 2014. The result was announced after market hours today, 17 April 2015.
On a consolidated basis, RIL reported 4.77% rise in net profit to Rs 23566 crore on 13.58% drop in total income from operations (net) to Rs 375435 crore in the year ended 31 March 2015 over the year ended 31 March 2014.
RIL's board of directors at its meeting held today, 17 April 2015, has recommended a dividend of Rs 10 per share for the year ended 31 March 2015.
Sharp Y-o-Y fall in benchmark oil price of around 50% was the key factor for the decline in Q4 revenue, RIL said.
Consolidated operating profit before other income and depreciation increased by 4.7 % to Rs 9868 crore in Q4 March 2015 over Q4 March 2014.
The company's gross refining margin (GRM) rose to $10.1 a barrel in Q4 March 2015 from $7.3 a barrel in Q3 December 2014 and from $9.3 a barrel in Q4 March 2013.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, RIL said in a time when the collapse of crude oil prices unsettled the hydrocarbons markets, the company's refining business delivered record earnings. The company's organized retail business maintained its high growth trajectory with a wider pan-India footprint, Mukesh D. Ambani said.
Shares of IT major TCS fell after announcing disappointing Q4 results after trading hours yesterday, 16 April 2015. The stock was off 4.07% at Rs 2,480.05. The stock hit high of Rs 2,561 and low of Rs 2,471. TCS' consolidated net profit excluding one time special employee reward rose 8.35% to Rs 5773 crore on 1.14% decline in income from operations to Rs 24220 crore in Q4 March 2015 over Q3 December 2014. TCS' bottom line during the quarter was boosted by 76.39% surge in other income to Rs 1136 crore in Q4 March 2015 over Q3 December 2014. The result was announced after market hours yesterday, 16 April 2015.
TCS' reported net profit during the quarter fell sharply due to one time special employee reward of Rs 2628 crore in Q4 March 2015. Consolidated net profit dropped 30.31% to Rs 3713 crore in Q4 March 2015 over Q3 December 2014. TCS said that it will pay employees a special reward or one-time bonus to mark the 10th anniversary of the company's initial public offering in 2004. For the company, the total consideration for this special reward to employees will be Rs 2628 crore.
Looking forward to financial year (FY) 2015-16, CEO and MD of TCS N. Chandrasekaran said that the company's investments in platforms, digital and automation are gaining traction with clients and together with its market investments in USA, Europe and Japan, the company is upbeat that the coming quarters will bring more opportunities for TCS to partner with customers across multiple industries.
TCS said that the board of directors of the company at its meeting held on 16 April 2015 has recommended a final dividend of Rs 24 per share for the year ended 31 March 2015 (FY 2015).
Shares of many other IT stocks fell after disappointing Q4 results from TCS. Infosys (down 0.47%), Wipro (down 2.23%), HCL Technologies (down 1.34%), Oracle Financial Services Software (down 2.08%), Tech Mahindra (down 1.99%), Hexaware Technologies (down 3.64%) and MphasiS (down 1.42%) declined.
MindTree slumped 7.32%. On a consolidated basis, the company's net profit rose 8.6% to Rs 128.70 crore on 0.7% rise in revenue to Rs 918.10 crore in Q4 March 2015 over Q3 December 2014. The result was announced after market hours yesterday, 16 April 2015. MindTree's net profit rose 19% to Rs 536.30 crore on 17.5% increase in revenue to Rs 3561.90 crore in the year ended March 2015 over the year ended March 2014.
Pharma shares declined. Cadila Healthcare (down 3.05%), Dr Reddy's Laboratories (down 0.6%), Glenmark Pharmaceuticals (down 1.44%), GlaxoSmithKline Pharmaceuticals (down 0.87%), Wockhardt (down 1.99%) and Aurobindo Pharma (down 6.05%) declined. Cipla rose 0.03%.
Sun Pharmaceutical Industries fell as shares allotted by the company to shareholders of Ranbaxy Laboratories on merger of the company with Sun Pharma were admitted for trading on the bourses today, 17 April 2015. The stock was off 4.54%. Sun Pharma had allotted 33.49 crore equity shares of Re 1 each to the shareholders of erstwhile Ranbaxy Laboratories in the ratio of eight equity shares of Re 1 each of the Sun Pharma for every ten equity shares of Rs 5 each held in erstwhile Ranbaxy Laboratories pursuant to merger of Ranbaxy with Sun Pharma.
Lupin lost 6.48% after a foreign brokerage reportedly downgraded the stock to 'neutral' from 'buy', citing slower US sales growth. According to the brokerage, slower US sales growth and high R&D spend will slowdown Lupin's earnings growth in FY 2016. The brokerage added that the earlier-than-expected generic competition for Suprax and Antara has been a negative surprise. Aurobindo Pharma recently announced that the company received final approvals from the US Food and Drug Administration (USFDA) to manufacture and market Cefixime (bioequivalent to Lupin's Suprax) for oral suspension USP, 100mg/5mL and 200mg/5mL.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 62.345, compared with closing of 62.30 during the previous trading session.
Brent crude oil futures edged lower as data showing increase in oil production from the Organization of the Petroleum Importing Countries last month tempered some of the bullishness among investors. Brent for June settlement was off 63 cents at $63.35 a barrel. The contract had gained 66 cents or 1.04% to settle at $63.98 a barrel during previous trading session.
Meanwhile, Finance Minister Arun Jaitley yesterday, 16 April 2015, signaled in his speech at a seminar in Washington that the government is unlikely to intervene with regard to income tax notices directing payment of Minimum Alternate Taxation (MAT) by foreign institutional investors (FIIs) for past years. Many foreign investors have been receiving notices requesting their MAT calculations for financial year 2011-2012. This has also sparked worries among FIIs that the income tax department will raise MAT demand on FIIs for earlier years. In the Union Budget 2015-16 presented in parliament on 28 February 2015, Jaitley had announced that capital gains on sale of shares by foreign institutional investors (FIIs) will not be subject to the provisions of the minimum alternate tax (MAT) from 1 April 2015. Jaitley yesterday, 16 April 2015, reportedly said that with regard to applicability of MAT for previous years, FIIs had gone to a judicial tribunal and lost. He suggested that if they want relief, they should appeal rather than asking for him to step in.
Separately, Prime Minister Narendra Modi assured investors of a predictable and stable tax regime while interacting with major pension fund managers of Canada yesterday, 16 April 2015. Modi is currently in Canada for an official visit.
Meanwhile, Reserve Bank of India (RBI) Governor Raghuram Rajan was quoted as saying in a newspaper interview that talks between RBI and the government have not yet focused on the composition of a planned monetary policy committee.
In overseas markets, European stocks edged lower today, 17 April 2015, as worries mounted that Greece's debt troubles could trigger an exit for the country from the eurozone and possibly financial contagion. Key indices in Germany, France and UK were off 0.72% to 1.8%.
There has been speculation of a likely debt default from Greece. The country's Syriza-led government has been locked in negotiations with its international creditors since coming to power in late January, with progress slow. Greece needs to strike a deal within the next few months to secure billions of euros in bailout aid to avoid defaulting on its debts and potentially exiting the euro.
Asian stocks edged lower today, 17 April 2015 on fears that Greece may run out of money as debt repayments loom. Key benchmark indices in Indonesia, Singapore, Hong Kong, Taiwan and Japan fell by 0.18% to 1.17%. Key benchmark indices in China and South Korea were up 0.17% to 2.22%.
Singapore's key non-oil domestic exports unexpectedly surged in March due to growth in both electronics and non-electronic shipments. Exports of goods made in Singapore rose 18.5% in March compared with a year earlier, after falling 9.7% in February, trade promotion agency International Enterprise Singapore said today, 17 April 2015.
Trading in US index futures indicated that the Dow could fall 132 points at the opening bell today, 17 April 2015. US stocks closed slightly lower yesterday, 16 April 2015 as investors digested a mixed batch of economic reports.
US economic data released yesterday, 16 April 2015 showed housing starts rose far less than expected in March and factory activity in the mid-Atlantic region grew modestly this month, suggesting the economic momentum will probably not be strong enough for the Federal Reserve to decide to start raising interest rates as early as June.
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