Key benchmark indices trimmed losses after hitting fresh intraday lows in mid-afternoon trade. The S&P BSE Sensex hit over one-week low. The 50-unit CNX Nifty hit lowest level in more than two weeks. The Sensex was down 71.84 points or 0.36%, up about 35 points from the day's low and off close to 175 points from the day's high. The market breadth, indicating the overall health of the market, was weak.
Sterlite Industries (India) fell over 6% after weak Q1 results. Many other metal stocks declined after Sterlite Industries' weak Q1 result. Tata Steel hit 52-week low. Bank of India declined as first quarter results showed that the bank's sticky loans rose.
A bout of volatility was witnessed in early trade with key benchmark indices trimming gains after a firm start. Volatility ruled the roost as the barometer index, the S&P BSE Sensex, trimmed gains after regaining positive zone after slipping into the red in morning trade. The Sensex regained positive terrain after slipping into the red to hit fresh intraday low in mid-morning trade. The market trimmed losses after hitting fresh intraday low in early afternoon trade. Key benchmark indices hit their fresh intraday lows in afternoon trade. Key benchmark indices trimmed losses after hitting fresh intraday lows in mid-afternoon trade.
At 14:20 IST, the S&P BSE Sensex was down 71.84 points or 0.36% to 19,732.92. The index fell 105 points at the day's low of 19,699.76 in mid-afternoon trade, its lowest level since 16 July 2013. The index jumped 102.69 points at the day's high of 19,907.45 in early trade.
The CNX Nifty was down 33.25 points or 0.58% to 5,874.25. The index hit a low of 5,869.50 in intraday trade, its lowest level since 10 July 2013. The index hit a high of 5,944.50 in intraday trade.
The market breadth, indicating the overall health of the market, was weak. On BSE, 1,349 shares fell and 707 shares rose. A total of 142 shares were unchanged.
Among the 30-share Sensex pack, 20 stocks fell and rest of them rose. Coal India (down 4.52%), Tata Motors (down 3.85%) and Hindustan Unilever (down 3.77%), edged lower.
Bank of India lost 6.53% as the bank's gross non-performing assets surged to Rs 9413.45 crore as on 30 June 2013, from Rs 8765.25 crore as on 31 March 2013 and sharply higher than Rs 6751.81 crore as on 30 June 2012. Bank of India's (BoI) ratio of gross non-performing assets (NPAs) to gross advances increased to 3.04% as on 30 June 2013, from 2.99% as on 31 March 2013 and 2.56% as on 30 June 2012. The ratio of net NPA to net advances increased to Rs 2.1% as on 30 June 2013, from 2.06% as on 31 March 2013 and 1.69% as on 30 June 2012.
BoI's net profit rose 8.64% to Rs 964.18 crore on 13.7% growth in total income to Rs 9722.01 crore in Q1 June 2013 over Q1 June 2012. The state-run bank announced its first quarter results during trading hours today, 26 July 2013.
BoI's borrowings rose 22.04% to Rs 32953.61 crore as on 30 June 2013, from Rs 27001.67 crore as on 30 June 2012. Deposits grew 22.41% year on year to Rs 414964.19 crore as on 30 June 2013.
The bank's capital adequacy ratio (CAR) as per Basel II norms stood at Rs 10.66% as on 30 June 2013, as against 11.02% as on 31 March 2013 and 11.42% as on 30 June 2012. CAR as per Basel III norms stood at 10.36% as on 30 June 2013.
BoI's provisions and contingencies surged 47.08% to Rs 694.56 crore in Q1 June 2013 over Q1 June 2012.
Sterlite Industries (India) fell 6.1%, with the stock reversing initial gains after the company reported weak Q1 results after trading hours on Thursday, 25 July 2013. Sterlite Industries' consolidated net profit fell 22% to Rs 934 crore on 23% fall net sales/income from operations to Rs 8190 crore in Q1 June 2013 over Q1 June 2012.
Earnings before interest, taxation, depreciation and amortisation (EBITDA) declined 7% to Rs 2173 crore in Q1 June 2013 over Q1 June 2012. Sterlite said revenue and EBITDA were lower primarily on account of a temporary closure of the Tuticorin copper smelter, which was partially offset by higher power generation at the Jharsuguda 2,400 megawatts (MW) power plant and higher production at Zinc India. Temporary closure of the Tuticorin smelter negatively impacted EBITDA by Rs. 180 crore. The profit after tax (PAT) and basic EPS were impacted by lower EBITDA and higher losses at associate. Higher interest cost on borrowings was largely offset by increase in other income.
Following the Tamil Nadu Pollution Control Board's (TNPCB) order for closure of the Tuticorin copper smelter on 29 March 2013, the National Green Tribunal (NGT) after hearing company's appeal, passed an interim order on 31 May 2013, conditionally allowing the smelter to recommence operations, and the plant restarted on 23 June 2013. On July 15, 2013, an expert committee confirmed that the plant meets the prescribed standards, and the NGT in its order of even date took cognizance of the findings of the expert committee and observed that the company "is neither an existing pollutant nor is a threat of future pollution (not violating prescribed standards) resulting in health hazards", and declined to modify its earlier interim order dated 31 May 2013, enabling the plant to continue to operate. Separately, the TNPCB has also filed an appeal against the NGT's earlier interim order before the Supreme Court.
Meanwhile, Sterlite Industries (India) said after market hours on Thursday, 25 July 2013 that the proposed merger of the company with Sesa Goa and Vedanta Group consolidation and simplification has received the approval of the High Court of Madras on 25 July 2013 and the High Court of Bombay at Goa on 3 April 2013. One of the shareholders of Sesa Goa has filed an appeal against the order passed dated 3 April 2013 by the High Court of Bombay at Goa before the Division Bench. The hearing before the Division Bench has been completed and the order of the Division Bench is awaited.
Commenting on the company's first quarter results, Mr. Anil Agarwal, Chairman, Sterlite Industries said: "We achieved a strong performance in the first quarter of FY 2014, and delivered production growth at our world-class zinc, silver, power and aluminium businesses despite global economic volatility and lower metal prices. We remain focused on completing the merger with Sesa Goa, and ramping up production from our growth projects across our world class asset portfolio."
Shares of Sesa Goa tumbled 6.4%.
Many other metal stocks declined after Sterlite Industries' weak Q1 result. Hindalco Industries slumped 7.25%, with the stock extending intraday losses.
Shares of steel makers fell across the board. JSW Steel (down 3.49%), Sail (down 1.04%) and Jindal Steel & Power (down 2.97%), edged lower.
Tata Steel fell 2.26% to Rs 218. The stock hit 52-week low of Rs 217.80 in intraday trade today, 26 July 2013.
Vivimed Labs was locked at 20% lower circuit at Rs 138.50 on BSE. The company informed the stock exchanges today, 26 July 2013, that fall in its share price over the last three days is unexpected and unwarranted. The company would like to assure all shareholders that there is no change in its business fundamentals, it said. Vivimed remains committed to delivering growth and profitability across each of its business segments, it said. The company believes it is on course to achieving its strategic goals and remains focused on its longer term objective of delivering sustainable value to all stakeholders, it said. The company further said that none of the shares pledged the promoters of the company in their individual capacity have been invoked by their lenders as of date.
Shares of Financial Technologies slumped 11.62%.
European shares edged higher on Friday, 26 July 2013. Key benchmark indices in UK and France were up by 0.1% to 0.68%. Germany's DAX fell 0.09%.
In Europe, UK's second-quarter gross domestic product expanded 0.6% compared with the first quarter and 1.4% higher than a year ago, data released on Thursday, 25 July 2013, showed.
Asian stocks were mostly in red on Friday, 26 July 2013. Key benchmark indices in Indonesia, China, Taiwan and Japan fell by 0.17% to 2.97%. Key benchmark indices in South Korea, Hong Kong and Singapore rose by 0.02% to 0.31%.
Japan consumer prices rose the most since 2008 in June, an early sign that the world's third-biggest economy may be starting to shake off 15 years of deflation. Consumer prices excluding fresh food increased 0.4% in June from a year earlier, the statistics bureau said in a statement today.
Trading in US index futures indicated that a flat opening of US stocks on Friday, 26 July 2013. US stocks rose on Thursday, 25 July 2013, after better-than-expected results from Facebook Inc. Economic data released on Thursday, 25 July 2013, was mixed. Durable-goods orders in June came in better than expected, but weekly jobless claims posted a modest increase of 7,000 claims to 343,000.
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