A range bound movement was witnessed as key benchmark indices languished in negative zone in mid-afternoon trade. The losses for the 50-unit CNX Nifty in percentage terms were higher than the losses for the barometer index, the S&P BSE Sensex, as shares of Tech Mahindra fell sharply after reporting weak Q4 results after trading hours yesterday, 26 May 2015. Tech Mahindra, which is a Nifty constituent, is not a part of the Sensex. The Sensex was currently off 47.15 points or 0.17% at 27,484.26. The Nifty was currently off 30.40 points or 0.36% at 8,308.95. The market breadth indicating the overall health of the market was negative.
Pharma stocks edged lower. Telecom stocks were mixed. IndusInd Bank inched up after the private sector bank said it has inaugurated a new branch at Ujjain in Madhya Pradesh.
Earlier, the Sensex hit its lowest level in almost two weeks and the 50-unit CNX Nifty hit its lowest level in more than a week as these two key benchmark indices extended initial losses.
Indian stocks may remain volatile in the near future 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 released by the stock exchanges. 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 overseas markets, European stocks edged higher amid the easing of tensions around the Greek situation. Asian stocks were mixed. US stocks declined sharply yesterday, 26 May 2015, as a sharp increase in the dollar spurred global investors to dump riskier assets such as equities and commodities.
At 14:15 IST, the S&P BSE Sensex was down 47.15 points or 0.17% at 27,484.26. 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 43.47 points at the day's high of 27,574.88 in afternoon trade.
The Nifty was down 30.40 points or 0.36% at 8,308.95. 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 8,341 in intraday trade.
The BSE Mid-Cap index was down 46.72 points or 0.44% at 10,563.24. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was down 18.67 points or 0.17% at 11,146.98, matching the Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was negative. On BSE, 1,404 shares fell and 1,075 shares rose. A total of 97 shares were unchanged.
Tech Mahindra tumbled after the company reported weak Q4 March 2015 results after trading hours yesterday, 26 May 2015. The stock was off 14.42% at Rs 548.20. The stock hit a high of Rs 578.40 and a low of Rs 546.80 so far during the day. 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. It may be recalled that MESL was merged with Tech Mahindra with effect from 8 December 2014.
Tech Mahindra's Q4 March 2015 results are not comparable on sequential basis. 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.
Pharma stocks edged lower. Cipla (down 0.2%), Glenmark Pharmaceuticals (down 1.09%), Sun Pharmaceutical Industries (down 1.43%), GlaxoSmithkline Pharmaceuticals (down 1.1%), Lupin (down 0.01%) and Ipca Laboratories (down 0.43%) edged lower. Wockhardt (up 8.84%), Dr Reddy's Laboratories (up 0.99%) and Strides Arcolab (up 0.02%) edged higher.
Telecom stocks were mixed. Tata Teleservices (Maharashtra) (down 2.56%), Mahanagar Telephone Nigam (down 0.87%) and Reliance Communications (down 1.25%) edged lower. Idea Cellular (up 1.51%) and Bharti Airtel (up 0.61%) edged higher.
IndusInd Bank inched up after the bank said it has inaugurated a new branch in Ujjain in Madhya Pradesh. The stock was up 0.16% at Rs 854.80. The stock hit a high of Rs 859.60 and a low of Rs 845.05 so far during the day. The announcement was made during market hours today, 27 May 2015. With the inauguration of new branch, IndusInd Bank now has 45 branches in Madhya Pradesh. The bank plans to further strengthen its presence and customer reach in Madhya Pradesh with more branches in the coming quarters, IndusInd Bank said in a statement.
Meanwhile, the government yesterday, 26 May 2015, named former finance secretary and economist Vijay Kelkar to head a panel that will recast the public-private-partnership (PPP) model of infrastructure development in which the government partners with private firms. The Kelkar committee will review the PPP policy and suggest a better risk-sharing mechanism between private developers and the government after analysing such projects in different sectors and the existing framework of risk-sharing. It will also propose design changes to contractual arrangements of the PPP in line with the review and international best practices and suggest measures to improve capacity-building in government for implementation of the PPP projects. The committee will submit a report in three months.
The Reserve Bank of India (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 2 June 2015.
In overseas markets, European stocks edged higher today, 27 May 2015, amid the easing of tensions around the Greek situation. Key benchmark indices in UK, France and Germany were up 0.09% to 0.59%.
Greece's finance minister, Yanis Varoufakis, yesterday, 26 May 2015, said that Athens will be able to make its next payment to the International Monetary Fund on 5 June 2015 because it will have reached an agreement with its creditors by then. Greece is scheduled to repay euro 1.6 billion ($1.76 billion) to the IMF between June 5-19.
German consumer sentiment is set to increase again in June, GfK market research group said in its monthly survey today, 27 May 2015. The forward-looking GfK consumer sentiment index is set to rise to 10.2 points in June from 10.1 points in May, the survey showed.
Asian stocks were mixed today, 27 May 2015. Key benchmark indices in Hong Kong, Singapore, South Korea and Indonesia were off 0.74% to 1.68%. Key benchmark indices in Japan, China and Taiwan were up 0.17% to 0.63%.
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.
US stocks declined sharply yesterday, 26 May 2015, as a sharp increase in the dollar spurred global investors to dump riskier assets such as equities and commodities. Meanwhile, Richmond Federal Reserve Bank President Jeffrey Lacker said yesterday, 26 May 2015, that he still hasn't decided whether to vote for an interest-rate increase at the central bank's June 16-17 meeting. Mr. Lacker, who is a voter on this year's Federal Open Market Committee and often has expressed concern about the inflationary risks of the Fed's unconventional policies, reportedly said he will make the call based on incoming data between now and then.
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