Benchmark indices extend losses in late trade

Losses in IT and telecom sector stocks and index heavyweights HDFC and ITC led losses for the two key benchmark indices. The barometer index, the S&P BSE Sensex, lost 233.24 points or 0.94% at 24,667.39, as per the provisional closing data. The Nifty 50 index fell 67.90 points or 0.89% at 7,546.45, as per the provisional closing data. The Sensex failed to retain the psychologically important 25,000 level which it had crossed at the onset of the trading session. After languishing in negative zone almost throughout the trading session, the two key indices extended losses in late trade as European stocks reversed gains.

The Sensex hit three-week low when it lost 253.15 points or 1.01% at the day's low of 24,647.48 in late trade. The barometer index rose 112.50 points or 0.45% at the day's high of 25,013.13 at the onset of the trading session, its highest level since 5 April 2016. The Nifty hit its lowest level in almost three weeks when it lost 78.50 points or 1.03% at the day's low of 7,535.85 in late trade. The index rose 16.40 points or 0.21% at the day's high of 7,630.75 at the onset of the trading session.

In overseas stock markets, European stocks reversed initial gains. Earlier during the global day, Asian stocks witnessed a mixed trend. US stocks edged higher yesterday, 6 April 2016, after the minutes of the Federal Reserve's March meeting showed that officials favoured more gradual rate hikes amid concerns over global economic growth.

Closer home, the market breadth indicating the overall health of the market was negative. On BSE, 1,455 shares fell and 1,108 shares rose. A total of 124 shares were unchanged. The BSE Mid-Cap index provisionally lost 0.45%. The BSE Small-Cap index provisionally fell 0.42%. The losses for both these indices were lower than the Sensex's slide in percentage terms.

The total turnover on BSE amounted to Rs 2956 crore, higher than turnover of Rs 2208.10 crore registered during the previous trading session.

Index heavyweight and cigarette major ITC fell 1.96% at Rs 319.70. The stock hit a high of Rs 328.40 and a low of Rs 319 in intraday trade. Early this month, ITC announced temporary closure of manufacturing operations at all its cigarette factories in India with effect from 1 April 2016 as it awaits clarity on the quantum of mandatory pictorial health warning on cigarette packages.

IT stocks edged lower. Tech Mahindra (down 2.1%), Wipro (down 1.58%), HCL Technologies (down 1.33%) and Persistent Systems (down 2.1%) dropped. Oracle Financial Services Software (up 0.11%) edged higher.

Index heavyweight and IT major Infosys fell 1.67% at Rs 1,181 after a block deal of 55.20 lakh shares was executed on the counter at Rs 1,176.80 per share at 9:46 IST on BSE. The company will announce its Q4 March 2016 results on 15 April 2016.

TCS fell 0.44% at Rs 2,468.05. The stock hit a high of Rs 2,483.40 and a low of Rs 2,458.90 in intraday trade. The company will announce its Q4 March 2016 results on 18 April 2016.

Shares of state-run power equipment major Bharat Heavy Electricals (Bhel) rose 3.99% at Rs 118.55 after the company said that on provisional basis its order inflow jumped 41.9% at Rs 43727 crore in the year ended 31 March 2016 (FY 2016) over the year ended 31 March 2015 (FY 2015). Based on tentative financial performance, Bhel reported net loss of Rs 877 crore in FY 2016 as against net profit of Rs 1419 crore in FY 2015. Turnover declined 13.71% to Rs 26702 crore in FY 2016 over FY 2015. The company announced the flash results for FY 2016 during market hours today, 7 April 2016.

Bhel said that it has achieved the highest-ever commissioning of projects in its history and the highest order booking in the last five years in FY 2016. Enhanced focus on project execution has resulted in Bhel creating history by way of commissioning/synchronizing an all-time high 15,059 megawatts (MW) of power generating equipment during the year, the company said in a statement. Bhel said it has achieved 94% of the capacity addition target for the twelfth plan in first four years itself. The company's order book stood at over Rs 1.10 lakh crore as on 31 March 2016. The company's continued focus on cash realization during the year has resulted in a cash surplus situation, it said. The rising trend of debtors has also been arrested, the company said.

Bhel said it considers 'Make in India' as an inflexion point to significantly scale up and diversify its business mix. New opportunities are emerging in defence, railways, solar and also in the conventional power sector, with a focus on enhancing technology depth. The company is building new capabilities and exploring new business models to take advantage of emerging big-ticket opportunities and is confident of regaining the growth momentum in the near future.

Index heavyweight and housing finance major HDFC was down 2.73% at Rs 1,071 after the company after market hours yesterday, 6 April 2016, announced that it proposes to make an additional one-time special provision of Rs 450 crore in Q4 March 2016 on standard assets. The special provision is being done voluntarily and not on account of any regulatory requirement, HDFC said. HDFC said that the company holds adequate security in respect of all its loans. Regulatory provision on standard assets and provision for non-performing loans will continue to be made as per current practice in the quarterly accounts, HDFC said.

HDFC said that the profit on sale of investments for Q4 March 2016 was Rs 1520 crore (net of tax Rs 1220 crore) compared to Rs 225 crore in Q4 March 2015. The current quarter's profit includes the profit on sale of shares in HDFC Standard Life Insurance Company to Standard Life (Mauritius Holdings) 2006 Limited. The capital gains tax on the sale of shares is Rs 300 crore.

Income from dividend for Q4 March 2016 was Rs 192 crore compared to Rs 179 crore in the corresponding quarter of the previous year. Meanwhile, under the loan assignment route, HDFC sold loans amounting to Rs 4799 crore in Q4 March 2016 to HDFC Bank compared to Rs 5000 crore during corresponding quarter of the previous year. Loans sold in the preceding twelve months amounted to Rs 12773 crore. HDFC will announce its Q4 March 2016 results on 2 May 2016.

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