Key indices languish in negative zone

Post result losses for shares of index heavyweight and housing finance major HDFC weighed on key benchmark indices in mid-afternoon trade. At 14:15 IST, the barometer index, the S&P BSE Sensex, was off 44.32 points or 0.16% at 27,426.49. The 50-unit CNX Nifty was off 15.95 points or 0.19% at 8,279.50. The market breadth indicating the overall health of the market was weak. On BSE, 1,606 shares declined and 984 shares rose. A total of 142 shares were unchanged. The BSE Mid-Cap index was off 0.39%. The BSE Small-Cap index was off 0.44%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

In overseas stock markets, European stocks fell as investors assessed the implications of China's latest round of monetary easing before central banks in the US and Japan meet later this week. Asian stocks edged higher after China's central bank unexpectedly cut interest rates and lenders' reserve requirements in a bid to lower corporate financing costs and pump liquidity into the economy. After close of trading hours in Asia on Friday, 23 October 2015, the People's Bank of China announced reduction in one-year lending rate by 25 basis points to 4.35% and cut its one-year deposit rate by 25 basis points to 1.5%. It also announced reduction in banks' reserve-requirement ratio requirement. US stocks rallied during the previous trading session on Friday, 23 October 2015, after a surprise interest-rate cut from the People's Bank of China and a string of better-than-expected earnings from heavyweight tech companies.

Shares of index heavyweight and housing finance major HDFC edged lower in volatile trade after the company announced second quarter earnings. The stock was currently off 0.88% at Rs 1,329. The stock hit high of Rs 1,350 and low of Rs 1,324.45 so far during the day. HDFC's net profit rose 18.19% to Rs 1604.56 crore on 12.13% rise in total income to Rs 7480.24 crore in Q2 September 2015 over Q2 September 2014. On a consolidated basis, HDFC's net profit rose 2.04% to Rs 2106.51 crore on 7.61% rise in total income to Rs 12530.28 crore in Q2 September 2015 over Q2 September 2014.

Meanwhile, HDFC announced that the board of directors of the company has granted in-principle approval for a sponsored level 1 ADR programme in respect of up to 10% of the issued and paid-up share capital of the company. The programme envisages conversion of existing equity shares of the company into ADRs and there will be no fresh issue of equity shares. HDFC's board of directors also granted in-principle approval for issue of rupee denominated bonds aggregating up to $750 million in overseas markets.

The company's board of directors also granted approval for re-appointment of Keki M. Mistry as the Managing Director (designated as Vice-Chairman & Chief Executive Officer) subject to approval of the shareholders of the company.

Tyre stocks were mixed. Apollo Tyres (down 1.95%), CEAT (down 2.98%), JK Tyre & Industries (down 1.59%) and MRF (down 0.9%) fell. TVS Srichakra (up 4.47%), Goodyear India (up 1.25%) and Balkrishana Industries (up 0.69%) rose.

Godrej Consumer Products rose 2.37% after the consolidated net profit rose 22.44% to Rs 287.16 crore on 8.08% rise in total income to Rs 2264.02 crore in Q2 September 2015 over Q2 September 2014. Godrej Consumer Products' consolidated net profit after adjusting exceptional items jumped 37% on year-on-year basis in Q2 September 2015.

Gujarat State Fertilizers & Chemicals surged 9.29% after net profit rose 14.7% to Rs 142.64 crore on 18.9% growth in net sales to Rs 1762.18 crore in Q2 September 2015 over Q2 September 2014. The Q2 result was announced after market hours on Friday, 23 October 2015.

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