Bank stocks led gains as key benchmark indices edged higher on positive cues from European stocks and a rally in US index futures. High volatility was witnessed in late trade as key benchmark indices trimmed gains soon after extending intraday gains. The barometer index, the S&P BSE Sensex, regained the psychological 26,000 mark. The Sensex was provisionally up 107.56 points or 0.41% at 26,106.90. The market breadth indicating the overall health of the market was negative.
TCS tumbled after as the company's operating profit margin (OPM) dropped on sequential basis in Q2 September 2014 and after the company forecast the current period will be "soft". HCL Technologies slumped as its earnings before interest, taxes, depreciation and amortization (EBITDA) declined 1.1% in Q1 September 2014 over Q4 June 2014. Hero MotoCorp rose in volatile trade after strong Q2 earnings.
Key indices witnessed high intraday volatility. Earlier, key indices had drifted lower in mid-morning trade after a range bound movement in morning trade. Before that, key indices had bounces back after a weak opening.
In overseas markets, European stocks edged higher as an ailing euro-area economy increases pressure on policy makers to provide more stimulus measures. Asian stocks were mixed. Trading in US index futures indicated a rally for US stocks at the opening bell later in the global day today, 17 October 2014. US stocks recovered from early losses yesterday, 16 October 2014, as St. Louis Federal Reserve Bank President James Bullard said policy makers should consider delaying the end of bond purchases to halt the decline in inflation expectations.
Brent crude oil prices climbed from the lowest level in almost four years on speculation prices decreased more than justified.
In the foreign exchange market, the rupee edged higher against the dollar, tracking stronger Asian currencies.
As per the provisional figures, the S&P BSE Sensex was up 107.56 points or 0.41% to 26,106.90. The index jumped 249.20 points at the day's high of 26,248.54 in late trade. The index lost 88.57 points at the day's low of 25,910.77 in mid-morning trade, its lowest level since 13 August 2014.
The CNX Nifty was up 31.50 points or 0.41% at 7,779.70, as per provisional figures. The index hit a high of 7,819.20 in intraday trade. The index hit a low of 7,723.85 in intraday trade, its lowest level since 13 August 2014.
The BSE Mid-Cap index was up 28.54 points or 0.31% at 9,272.49. The BSE Small-Cap index was off 29.12 points or 0.28% at 10,313.97. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,501 shares dropped while 1,320 shares rose. A total of 124 shares were unchanged.
The total turnover on BSE amounted to Rs 3081 crore, lower than turnover of Rs 3234.62 crore on Thursday, 16 October 2014.
TCS tumbled after as the company's operating profit margin (OPM) dropped on sequential basis in Q2 September 2014 and after the company forecast the current period will be "soft". The stock lost 8.99% at Rs 2,438. The stock hit a high of Rs 2,509.50 and a low of Rs 2,433.10. On BSE, 5.75 lakh shares changed hands in the counter, compared with average daily volume of 75,777 shares in the past one quarter. The company's consolidated net profit fell 5.8% to Rs 5244 crore on 7.7% growth in revenue to Rs 23816 crore in Q2 September 2014 over Q1 June 2014. The operating profit rose 7.03% to Rs 6800.40 crore in Q2 September 2014 over Q1 June 2014. The OPM declined to 28.55% in Q2 September 2014, from 28.73% in Q1 June 2014. The result was announced after market hours yesterday, 16 October 2014.
TCS predicts a "soft quarter" in the three months through December as the holiday season slows outsourcing work at industries ranging from retail to manufacturing, Chief Executive Officer N. Chandrasekaran told reporters after the announcement of the second quarter results yesterday, 16 October 2014.
HCL Technologies slumped as its earnings before interest, taxes, depreciation and amortization (EBITDA) declined 1.1% in Q1 September 2014 over Q4 June 2014. The stock lost 9.06% at Rs 1,506. The stock hit a high of Rs 1,600 and a low of Rs 1,496.95. The company's consolidated net profit as per US accounting standards rose 2.1% to Rs 1873 crore on 3.7% growth in revenue to Rs 8735 crore in Q1 September 2014 over Q4 June 2014. EBITDA declined 1.1% to 2192 crore in Q1 September 2014 over Q4 June 2014. EBITDA margin dropped to 25.1% in Q1 September 2014, from 26.3% in Q4 June 2014. The result was announced before market hours today, 17 October 2014.
Hero MotoCorp rose 3.16% at Rs 2,880. The stock hit a high of Rs 2,909 and a low of Rs 2,740.30. The company's net profit jumped 58.56% to Rs 763.37 crore on 21.69% growth in total income to Rs 7108.85 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 16 October 2014.
Zee Entertainment Enterprises rose 2.92% at Rs 322. The stock hit a 52-week high of Rs 331.20 in intraday trade. The stock hit a low of Rs 311 in intraday trade. The company's consolidated net profit fell 3.69% to Rs 227.55 crore on 1.19% rise in total income to Rs 1170.03 crore in Q2 September 2014 over Q2 September 2013. Due to change in arrangement with various operators across territories, subscription revenue for the current period is accounted net of Subscription Management Service cost, Zee said. This change has no impact on the profits for the quarter and half year ended 30 September 2014. Accordingly previous periods figures are not comparable with that of current period, the company said. The result was announced during market hours.
DLF lost 0.45% at Rs 109.85. The stock hit a high of Rs 114.45 and a low of Rs 105.45. According to reports, DLF has filed an appeal with the Securities Appellate Tribunal (SAT) against a ban from tapping capital markets for three years. Market regulator Securities and Exchange Board of India (Sebi) early this week issued an order barring DLF and its chairman K.P. Singh along with five other company executives from accessing India's capital markets for three years. The order is related to lapses in disclosures made at time of the company's IPO in 2007.
On Wednesday, 15 October 2014, credit rating agency CRISIL placed its ratings on the bank facilities and debt instruments of DLF on 'Rating Watch with Negative Implications'. CRISIL said that the Sebi order will adversely impact DLF's ability to access the capital markets and constrain its financial flexibility, which has been one of its key rating strengths, CRISIL said. The order will impact DLF's plans to raise funds through capital market instruments such as equity, commercial mortgage-backed securities (CMBS) and real estate investment trusts (REITs) over the medium term, CRISIL said.
Meanwhile, the provisional data released by the stock exchanges after trading hours yesterday, 16 October 2014, showed that foreign portfolio investors (FPIs) sold shares worth a net Rs 1128.37 crore on that day.
In the foreign exchange market, the rupee edged higher against the dollar, tracking stronger Asian currencies. The partially convertible rupee was hovering at 61.52, compared with its close of 61.84 during the previous trading session.
Reserve Bank of India (RBI) Governor Raghuram Rajan said in Hyderabad yesterday, 16 October 2014, that the drop in bond yields is partly signaling RBI's success in controlling inflation. The RBI is targeting consumer price inflation of 8% by January 2015 and 6% by January 2016.
Brent crude oil prices climbed from the lowest level in almost four years on speculation prices decreased more than justified. Brent for December settlement was up $1.32 a barrel at $87.14 a barrel. The contract had risen $1.70 a barrel to settle at $85.82 a barrel yesterday, 16 October 2014.
European stocks climbed today, 17 October 2014, as an ailing euro-area economy increases pressure on policy makers to provide more stimulus measures. Key benchmark indices in UK, France and Germany were up 0.9% to 1.48%.
German Chancellor Angela Merkel told lawmakers in Berlin yesterday, 16 October 2014, that existing economic aid had been underused and now wasn't the moment to ease up on the fiscal discipline she credits with bringing stability to the continent.
Asian stocks were mixed today, 17 October 2014. Key indices in Japan, China, Taiwan, and South Korea were off 0.65% to 1.4%. Key indices in Hong Kong, Singapore and Indonesia were up 0.41% to 1.56%. China is expected to release third-quarter economic growth figures on Tuesday, 21 October 2014.
The MNI China Business Indicator fell to a eight-month low of 51.7 in October, the latest data showed today, 17 October 2014. It was down from September's reading of 52.2. While the indicator remains above the breakeven 50 line that separates expansion from contraction, the trend weakened further, with business sentiment below the average of 54 seen over the past 12 months.
Trading in US index futures indicated that the Dow could gain 175 points at the opening bell today, 17 October 2014. US stocks ended little changed yesterday, 16 October 2014, with the Dow industrials recouping much of a 206-point deficit, as investors balanced worries about global growth against mostly better-than-expected US earnings and economic reports.
The National Association of Home Builders (NAHB)/Wells Fargo housing market index fell unexpectedly last month, official data showed on Thursday, 16 October 2014. In a report, NAHB said that NAHB Housing Market Index fell to 54, from 59 in the preceding month.
The Federal Reserve may want to extend its bond-buying program beyond October to keep its policy options open given falling US inflation expectations, Federal Reserve Bank of St. Louis President James Bullard said yesterday, 16 October 2014.
The Federal Open Market Committee (FOMC) next undertakes a monetary policy review at a two-day meeting on 28-29 October 2014.
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