Key indices slide amid divergent trend among index constituents

Amid a divergent trend in various constituents of the index, key benchmark indices edged lower on the last trading session of the week. The barometer index, the S&P BSE Sensex, shed 47.25 points or 0.17% to settle at 27,868.63. The market breadth indicating the overall health of the market was negative. As per media reports, at least a dozen new ministers are set to be inducted by Narendra Modi government as part of the cabinet expansion that is likely to take place on Sunday, 9 November 2014. Meanwhile, the Indian government is reportedly considering dropping a provision in the tax treaty between India and Cyprus that exempts capital gains made in India by investors from Cyprus from tax.

Index heavyweight and cigarette major ITC edged lower in volatile trade. Telecom stocks were in demand. Bharti Airtel rose in volatile trade after the company said it has decided to terminate the discussions with regard to the transaction for acquiring subscribers of Loop Mobile. Hero MotoCorp dropped on buzz private equity firm Bain Capital Partners sold nearly 4% stake in the company via bulk deal on NSE today, 7 November 2014. Power generation stocks edged lower. Metal and mining stocks declined.

Shares of public sector oil marketing companies rose on fall in crude oil prices. Pharma stocks gained on weak rupee, with Dr Reddy's Laboratories hitting record high. Private sector bank stocks were mixed. Shares of ICICI Bank and IndusInd Bank scaled record high. Axis Bank edged higher after the bank said it has allotted Senior Notes aggregating to $20,000,000 under the MTN Programme through its Dubai International Financial Centre (DIFC) branch. PSU bank stocks declined. IT major Infosys edged higher after the company today, 7 November 2014, announced a strategic partnership with Tableau Software, a global leader in rapid-fire, easy-to-use business analytics software. Realty major DLF gained on reports the Securities Appellate Tribunal has allowed the company to redeem Rs 1806-crore in mutual fund holdings in order to service outstanding loans.

Earlier, the barometer index, the Sensex and 50-unit CNX Nifty, had trimmed losses after both the indices hit one-week low in morning trade.

In overseas markets, European stocks rose with investors hoping the highly anticipated US jobs data later during the global day will give them more to cheer about, after a dovish European Central Bank sent markets higher yesterday, 6 November 2014. Asian stocks ended mixed. US stocks edged higher yesterday, 6 November 2014, with the S&P 500 and Dow Jones Industrial Average climbing to record levels for the second straight day after European Central Bank president Mario Draghi hinted at monetary stimulus of as much as euro 1 trillion for eurozone economy.

In the foreign exchange market, the rupee edged lower against the dollar on broad strength in dollar.

Brent crude futures dropped on a stronger dollar and on lower oil demand forecast by the Organization of the Petroleum Exporting Countries (OPEC).

The S&P BSE Sensex fell 47.25 points or 0.17% to settle at 27,868.63, its lowest closing level since 3 November 2014. The index lost 176.32 points at the day's low of 27,739.56 in morning trade, its lowest level since 31 October 2014. The index gained 65.05 points at the day's high of 27,980.93 in early trade.

The CNX Nifty fell 1.30 points or 0.02% to settle at 8,337, its lowest closing level since 3 November 2014. The index hit a low of 8,290.25 in intraday trade, its lowest level since 31 October 2014. The index hit a high of 8,360.35 in intraday trade.

The market breadth indicating the overall health of the market was negative. On BSE, 1,569 shares declined and 1,436 shares gained. A total of 107 shares were unchanged.

The BSE Mid-Cap index rose 35.08 points or 0.35% to settle at 9,999.69, outperforming the Sensex. The BSE Small-Cap index fell 43.81 points or 0.39% to settle at 11,117.17, underperforming the Sensex.

The total turnover on BSE amounted to Rs 3923 crore, lower than Rs 4410.82 crore on Wednesday, 5 November 2014. The stock market was closed yesterday, 6 November 2014, on account of Gurunanak Jayanti.

Index heavyweight and cigarette major ITC fell 0.77% to Rs 355.60. The stock hit high of Rs 360.60 and low of Rs 352.95 so far during the day.

Colgate Palmolive (India) rose 3.88% after net profit rose 18.31% to Rs 129.58 crore on 10.58% rise in total income to Rs 1010.44 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Wednesday, 5 November 2014.

Colgate-Palmolive (India) said it posted a strong volume growth of 7% for the quarter on toothpaste and continued to enhance its leadership position in toothpaste category by registering a volume market share of 56.7% for the period January 2014-September 2014, an increase of 80 basis points over the same period of the previous year.

Marico rose 1.67%. Marico's consolidated net profit rose 12% to Rs 118 crore on 28% growth in revenue from operations to Rs 1431 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours today, 7 November 2014. Marico's EBITDA rose 16% to Rs 195 crore in Q2 September 2014 over Q2 September 2013.

Marico registered a healthy volume growth of 8% in India and 5% in International business during the quarter. The company's market share increased in more than 80% of the portfolio.

IT stocks were mixed. Wipro (down 1.06%), Tata Consultancy Services (TCS) (down 1.03%), Oracle Financial Services Software (down 1.6%), Hexaware Technologies (down 2.98%) declined.

HCL Technologies (up 0.94%), Tech Mahindra (up 1.57%), and MphasiS (up 0.41%) rose.

Infosys rose 1% to Rs 4,167.40 after scaling a record high of Rs 4,183.45 in intraday trade. Infosys today, 7 November 2014, announced a strategic partnership with Tableau Software, a global leader in rapid-fire, easy-to-use business analytics software. The announcement was made during market hours today, 7 November 2014. The partnership will combine the global talent pool and client reach of Infosys with Tableau's breakthrough analytics technology. As part of the partnership, Infosys will integrate Tableau's software into the solutions it deploys to help clients unlock the power of big data. Infosys will use its global training facilities to substantially increase the number of Tableau analytics experts in the company. This will ensure that the benefits of business analytics are included within a wide range of client solutions across multiple industries, Infosys said.

Infosys yesterday, 6 November 2014, announced a strategic engineering partnership with DreamWorks Animation. The two companies intend to work together to further develop DreamWorks' technologies to bring them to wider use. Infosys will deploy its global talent pool available across cloud, big data, Java and open source capabilities to develop next generation solutions based on the DreamWorks technology.

Infosys also announced yesterday, 6 November 2014, a major recruitment drive in the US to support the growth of its business and enhance its capabilities.

Hero MotoCorp lost 1.87% to Rs 2,902. As per reports, private equity firm Bain Capital Partners sold 85.60 lakh shares or nearly a 4% stake in Hero MotoCorp at Rs 2,875 per share in bulk deal on NSE today, 7 November 2014. As of 30 September 2014, Bain Capital held 5.77% or 1.15 crore shares in Hero MotoCorp.

Telecom stocks were in demand. Idea Cellular (up 2.47%) and Reliance Communications (up 2.03%) gained.

Bharti Airtel rose 1.22% to Rs 390. The stock was volatile. The stock hit high of Rs 392 and low of Rs 379.05. Bharti Airtel after market hours on Wednesday, 5 November 2014, in a clarification with regard to news item titled Bharti Airtel Calls off Rs 700 cr Deal with Loop" said that under the agreements executed with Loop Mobile (Loop), the transaction was conditional upon DoT approval which has not been received. In light the fact that Loop's mobile license is to expire at the end of this month, Bharti Airtel has decided to terminate the discussions with regard to the transaction for acquiring subscribers of Loop, the company said.

Private sector bank stocks were mixed. HDFC Bank (down 1.51%), Kotak Mahindra Bank (down 0.89%) and Federal Bank (down 0.82%) declined.

Yes Bank rose 0.99%.

ICICI Bank rose 1.12% to Rs 1,691 after scaling a record high of Rs 1,693.20 in intraday trade.

IndusInd Bank rose 0.8% to Rs 728 after scaling a record high of Rs 731.50 in intraday trade.

Axis Bank advanced 2.79% to Rs 470.45 after scaling a record high of Rs 472.10 in intraday trade. The bank today, 7 November 2014, said that it has yesterday, 6 November 2014, allotted Senior Notes aggregating to $20,000,000 under the MTN Programme through its Dubai International Financial Centre (DIFC) branch. The announcement was made before market hours today, 7 November 2014.

PSU bank stocks declined. State Bank of India (SBI) (down 1.51%), Canara Bank (down 1.53%), Bank of India (down 0.33%), Union Bank of India (down 2.82%), Punjab National Bank (down 0.76%) declined.

Bank of Baroda rose 1.69%. The bank's net profit declined 5.46% to Rs 1104.22 crore on 13.11% growth in total income to Rs 11817.32 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced during market hours today, 7 November 2014.

Bank of Baroda's provisions and contingencies rose 3.16% to Rs 888.04 crore in Q2 September 2014 over Q2 September 2013.

The bank's ratio of gross non-performing assets (NPAs) to gross advances stood at 3.32% as on 30 September 2014 as against 3.11% as on 30 June 2014 and 3.15% as on 30 September 2013. The ratio of net NPAs to net advances stood at 1.74% as on 30 September 2014 as against 1.58% as on 30 June 2014 and 1.86% as on 30 September 2013. The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 12.19% as on 30 September 2014 as against 11.91% as on 30 June 2014 and 12.07% as on 30 September 2013.

Syndicate Bank fell 1.1% after net profit declined 32.86% to Rs 315.60 crore on 17.12% growth in total income to Rs 5680.96 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced during market hours today, 7 November 2014.

Metal and mining stocks declined. Sesa Sterlite (down 1.95%), JSW Steel (down 1.35%), Tata Steel (down 1.43%), Steel Authority of India (Sail) (down 1.83%), NMDC (down 0.63%), Hindustan Copper (down 3.52%), Hindustan Zinc (down 1.87%), Jindal Steel & Power (down 0.86%) and Hindalco Industries (down 0.61%) edged lower. National Aluminium Company gained 2.43%.

Capital goods stocks were mixed. ABB India (down 3.9%), Bharat Heavy Electricals (Bhel) (down 3.24%), Crompton Greaves (down 2.11%) declined. Siemens ended unchanged at Rs 879.

Thermax (up 4.97%) and BEML (up 1.15%) rose.

Bharat Electronics jumped 9.67%. The company's net profit surged 147.2% to Rs 146.96 crore on 21.7% growth in total income to Rs 1404.66 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced during market hours today, 7 November 2014.

Larsen & Toubro (L&T) fell 1.17% to Rs 1,647.60. The stock saw volatile. The stock hit high of Rs 1,692.60 and low of Rs 1,631. L&T's consolidated profit after tax rose 7% to Rs 862 crore on 10.4% growth in gross revenue to Rs 21331 crore in Q2 September 2014 over Q2 September 2013. The result hit the market after trading hours today, 7 November 2014.

L&T's consolidated order intake rose 17% to Rs 39797 crore in Q2 September 2014 over Q2 September 2013. The International order inflow during the quarter at Rs 6756 crore constituted 17% of the total order inflow. Major orders during the quarter were secured by the infrastructure, power and hydrocarbon segments. L&T's consolidated order book stood at Rs 2.14 lakh crore as on 30 September 2014, higher by 14% on a year-on-year basis. International order book constituted 27% of the total order book.

With regard to future business outlook, L&T said that while continuing to pursue international business on selective basis, the company with its capabilities spanning across several core sectors, is poised to grow its domestic order book and maintain its leadership position as the opportunities emerge.

Cummins India jumped 7.36% to Rs 792 after scaling a record high of Rs 848 in intraday trade. Cummins India's net profit surged 39.8% to Rs 202.40 crore on 22.3% growth in net sales to Rs 1117.13 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced yesterday, 6 November 2014.

Pharma stocks gained on weak rupee. Weakness in rupee could boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports. Sun Pharmaceutical Industries (up 2.48%), Lupin (up 3.32%) and Wockhardt (up 4.36%) gained. Cipla declined 1.08%.

Dr Reddy's Laboratories jumped 4.51% to Rs 3,400 after hitting record high of Rs 3,455 in intraday trade. As per reports the US Food and Drug Administration (FDA) has granted final approval to Dr Reddy's Laboratories and US firm Endo International Plc to make cheaper copies of Roche Holding AG's antiviral Valcyte.

Aurobindo Pharma rose 2.08% after net profit rose 58.41% to Rs 372.18 crore on 51.57% increase in total income to Rs 2908.51 crore in Q2 September 2014 over Q2 September 2013.

Ranbaxy Laboratories gained 2.69% to Rs 671.75. The stock was volatile. The stock hit high of Rs 673.80 and low of Rs 623. The company yesterday, 6 November 2014, announced that it received communication from the US Food and Drug Administration (FDA) wherein FDA has determined that Ranbaxy's Abbreviated New Drug Applications (ANDAs) of concern did not have any data integrity issues. However, FDA has rescinded the previously granted tentative approvals for Ranbaxy's ANDAs for esomeprazole magnesium delayed-release capsules, 20 milligram (mg) and 40 mg and for valganciclovir hydrochloride tablets USP, 450 mg.

FDA has said that its original decisions granting tentative approvals were in error because of the compliance status of the facilities referenced in the ANDAs at the time the tentative approvals were granted. As a consequence, in FDA's view, Ranbaxy has forfeited its eligibility for 180-day exclusivity for its ANDA for valganciclovir hydrochloride tablets USP, 450 mg. Ranbaxy said it is disappointed with this development and is actively evaluating all available options to preserve its rights.

GlaxoSmithKline Pharmaceuticals gained 1.19% after the company's net profit rose 27.46% to Rs 128.67 crore on 17.48% increase in total income to Rs 782.46 crore in Q3 September 2014 over Q3 September 2013.

Cadila Healthcare jumped 5.06% after consolidated net profit rose 51.65% to Rs 278.09 crore on 20.67% rise in total income to Rs 2122.61 crore in Q2 September 2014 over Q2 September 2013.

Torrent Pharmaceuticals rose 2.07% after the company's consolidated net profit surged 75% to Rs 198 crore on 25% growth in revenue to Rs 1217 crore in Q2 September 2014 over Q2 September 2013.

Pfizer shed 3.09% after the company reported net loss of Rs 11.83 crore in Q2 September 2014 as against net profit of Rs 69.59 crore in Q2 September 2013. Pfizer's total income from operations declined 0.83% to Rs 296.48 crore in Q2 September 2014 over Q2 September 2013.

Power generation stocks edged lower. Reliance Infrastructure (down 0.29%), Tata Power Company (down 0.92%), CESC (down 0.41%), NTPC (down 0.34%), Reliance Power (down 2.22%), Jaiprakash Power Ventures (down 4.55%), JSW Energy (down 0.32%) edged lower. Adani Power rose 0.21%.

Minister of State for Power, Coal and Renewable Energy Piyush Goyal yesterday, 6 November 2014, said that the government was pursuing a two-pronged strategy of improving the utilization of existing power generation units in the country by improving plant load factor and freeing up stranded power generation units and improving access to fuel supplies for power generation units. The government was also improving the electricity mix with greater focus on renewable energy sources, Goyal said while addressing a session on "Lighting India" at the India Economic Summit being organized by the World Economic Forum and the Confederation of Indian Industry in New Delhi.

Goyal said that measures were being taken to double the output of coal from Coal India over the next five years. This will help enhance the utilization of existing thermal power plants, Goyal said. Goyal said that the government was planning to invest $250 billion in the power sector over the next five years.

Shares of Coal India fell 0.97%.

Shares of public sector oil marketing companies rose on fall in crude oil prices. BPCL (up 2.54%), Indian Oil Corporation (up 1.79%) and HPCL (up 5.31%) edged higher. Lower crude oil prices will reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of lower global crude oil prices to that extent. The government has already freed pricing of petrol and diesel.

Cairn India slipped 0.13% as crude oil prices declined. Lower crude oil prices will result in lower realizations from crude sales for oil exploration firms like Cairn India.

Zee Entertainment Enterprises (ZEE) jumped 5.12% to Rs 372.85 after hitting a 52-week high of Rs 374 in intraday trade. Motherson Sumi Systems rose 0.59%. MSCI Inc. has reportedly added these two companies to the MSCI India Index from the close of trading on 25 November 2014.

Bata India fell 2.09%. The company's net profit rose 3.77% to Rs 39 crore on 13.22% rise in total income to Rs 558.53 crore in Q3 September 2014 over Q3 September 2013. The result hit the market after trading hours on Wednesday, 5 November 2014.

Realty major DLF surged 5.12% on reports the Securities Appellate Tribunal allowed the company to redeem Rs 1806-crore in mutual fund holdings in order to service outstanding loans. In an interim relief against Securities and Exchange Board of India (Sebi) order, the Securities Appellate Tribunal (SAT) on Wednesday, 5 November 2014, reportedly allowed DLF to redeem Rs 1806-crore in mutual fund holdings in order to service outstanding loans. After hearing an appeal for interim relief by DLF, SAT allowed the company to redeem mutual funds worth Rs 767 crore in the current month and further funds worth Rs 1039 crore in December 2014.

DLF had sought permission to redeem funds locked in mutual funds after being slapped with the market regulator's ban last month from accessing the capital market for 3 years.

In the foreign exchange market, the rupee edged lower against the dollar on broad strength in dollar. The partially convertible rupee was hovering at 61.635, compared with its close of 61.42 during the previous trading session on Wednesday, 5 November 2014. The currency market was shut yesterday, 6 November 2014, on account of Gurunanak Jayanti.

Brent crude futures dropped on a stronger dollar and on lower oil demand forecast by the Organization of the Petroleum Exporting Countries (OPEC). A stronger greenback makes it more expensive for holders of other currencies to buy dollar-denominated commodities. Brent for December delivery was off 3 cents at $82.83 a barrel. The contract had fallen 9 cents a barrel to settle at $82.86 a barrel yesterday, 6 November 2014.

OPEC expects its crude production to fall by 1.8 million barrels a day by the end of 2017 to 28.2 million barrels a day, it said in its annual outlook report. In general, it is expected that the US recovery will provide a significant support factor for medium-term global economic growth, the cartel said, but added that weak data from Brazil, Russia, India and China have lowered the medium-term forecast for these countries.

Meanwhile, as per media reports, at least a dozen new ministers are set to be inducted by Narendra Modi government as part of the cabinet expansion that is likely to take place on Sunday, 9 November 2014. Goa Chief Minister Manohar Parrikar is tipped to get the defence portfolio. Currently Finance Minister Arun Jaitley is handling the defence portfolio. BJP general secretary JP Nadda's name is doing the rounds as a possible environment minister. Jayant Sinha, who is the son of former finance minister Yashwant Sinha, is tipped to become minister of state for finance.

Prime Minister Narendra Modi is also likely to induct some representatives of the BJP allies into the union cabinet. According to reports, Suresh Prabhu might get an important cabinet berth, possibly rural development.

Reserve Bank of India (RBI) Deputy Governor H.R. Khan reportedly said today, 7 November 2014, that India's inflation has a long way to go before it eases because of high input costs. The reasons for elevated food price inflation remain structural, he said. Khan, in a speech in Mumbai, also noted rural inflation was high because of supply chain issues. Khan also warned against too much complacency in markets, but he did not elaborate.

Prime Minister Narendra Modi today, 7 November 2014, said that the government is working towards revitalizing the textile sector through a scientific approach, coupled with infusion of appropriate technology. He said so after laying the foundation stone of the Trade Facilitation Centre and Crafts Museum, and inaugurating the Powerloom Service Centre in Varanasi in Uttar Pradesh.

India's Ministry of Urban Development yesterday, 6 November 2014, said that Singapore has shown keen interest in partnering with India in the urban development sector, including development of a new smart satellite city and a new capital for the state of Andhra Pradesh. Top leadership of Singapore conveyed their areas of interest during the extensive talks that the Minister of Urban Development M.Venkaiah Naidu held with Singapore's Prime Minister Lee Hsien Loong and former Prime Minister and Emeritus Minister Goh Chok Tong in separate meetings in Singapore yesterday, 6 November 2014.

Meanwhile, the Indian government is reportedly considering dropping a provision in the tax treaty between India and Cyprus that exempts capital gains made in India by investors from Cyprus from tax. India, which has blacklisted the tax haven for not sharing information on bank accounts, will lift this restriction only if Cyprus agrees to scrap the capital gains exemption. A team of officials from the external affairs ministry will reportedly travel to Cyprus this month. India is also concerned at the misuse of the tax benefit by investors from third countries that route their investments via Cyprus into the South Asian nation to take advantage of the tax exemption.

European stocks rose today, 7 November 2014, with investors hoping the highly anticipated US jobs data later during the global day will give them more to cheer about, after a dovish European Central Bank sent markets higher yesterday, 6 November 2014. Key benchmark indices in UK and Germany were up 0.6% to 0.7%. In France, the CAC 40 index was off 0.23%.

The latest data showed that Germany's industrial production rose less than expected in September, potentially augmenting growth concerns about Europe's largest economy. In monthly terms, industrial output increased by 1.4% in September, data provided by the country's economy ministry showed today, 7 November 2014. Data for August was revised upward to show a decline of only 3.1%, versus the 4% drop originally reported.

French industrial output was stable in September as a rise in energy production offset a decline in the production of agricultural and other goods, official data showed today, 7 November 2014. Industrial production in the eurozone's second largest economy was flat in September compared with August, the national statistics agency Insee said. Insee revised down the industrial production figure for August to a 0.2% contraction from a previous reading of no change that month.

The European Central Bank, left interest rates unchanged after a policy meeting yesterday, 6 November 2014. The ECB's key lending rate, known as the refi rate, was left at 0.05%, while the rate the ECB pays on deposits held at the central bank remains at minus-0.2%. ECB President Mario Draghi said policy makers will be ready to implement further measures if needed as he signaled officials may cut growth forecasts next month. Speaking at a press conference in Frankfurt yesterday, 6 November 2014, Draghi said that the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate.

The Bank of England yesterday, 6 November 2014, held the size of its bond-buying program steady and left its key lending rate at a record low of 0.5%, where it has stood since March 2009. The central bank's Monetary Policy Committee maintained its asset purchases, the centerpiece of its quantitative-easing strategy, at 375 billion pounds ($599 billion).

Asian stocks were mixed today, 7 November 2014. Key benchmark indices in Singapore, China, Hong Kong and Indonesia were off 0.14% to 0.93%. Key benchmark indices in Taiwan, Japan and South Korea were up 0.18% to 0.52%.

China's central bank vowed to lower funding costs for corporate borrowers amid increasing pressure on the nation's slowing economy. In a report published yesterday, 6 November 2014, on third-quarter monetary policy, the People's Bank of China also confirmed it had already conducted two rounds of liquidity injections into the country's banking system in September and October totaling 769.5 billion yuan ($125.9 billion) in a bid to guide interest rates lower and support economic growth. A report on the central bank's website indicated that the central bank had pumped the funds with a tenor of 3 months at an interest rate of 3.5% into the country's state, midsize and smaller lenders.

Trading in US index futures indicated that the Dow could rise 7 points at the opening bell today 7 November 2014. US stocks edged higher yesterday, 6 November 2014, with the S&P 500 and Dow Jones Industrial Average climbing to record levels for the second straight day after European Central Bank president Mario Draghi hinted at monetary stimulus of as much as euro 1 trillion for eurozone economy. In economic news, the number of Americans applying for new jobless benefits lingered below 300,000 for the eighth straight week amid the lowest level of layoffs in years. US productivity in the third quarter grew at a 2% annual pace, preliminary data show, marking the fourth sizable increase in the past five quarters.

The influential US nonfarm payrolls report for October will be released later in the global day today, 7 November 2014.

Powered by Capital Market - Live News