Market opens lower on negative Asian cues

Key benchmark indices were trading lower in early trade, tracking negative cues from Asian market. At 9:24 IST, the barometer index, the S&P BSE Sensex, was down 19.08 points or 0.07% at 28,133.32. The Nifty 50 index was down 16 points or 0.18% at 8,656.15.

The market breadth indicating the overall health of the market was positive. On BSE, 749 shares rose and 664 shares fell. A total of 74 shares were unchanged. The BSE Mid-Cap index was currently up 0.24%. The BSE Small-Cap index was currently up 0.06%. Both these indices outperformed the Sensex.

In overseas markets, fresh record closing highs in US market failed to boost sentiment in Asian trade today, 16 August 2016, with most major regional markets slipping. In US, the Dow Jones Industrial Average, the S&P 500 index, and the Nasdaq Composite Index all closed at record highs on Monday, 15 August 2016, for the second time since 1999, thanks in part to a sharp uptick in oil prices, which boosted energy and materials shares.

Cipla was down 0.42%. The company reported 43.74% fall in consolidated net profit to Rs 365.24 crore on 6.94% fall in total income to Rs 3618.92 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Friday, 12 August 2016. Earnings before interest, taxation, depreciation and amortization (EBITDA) fell 42% to Rs 611 crore in Q1 June 2016 over Q1 June 2015.

Cipla said that the growth momentum in key markets - India, South Africa and the US with focused cost containment measures has resulted in enhanced profitability in the base business. The recent acquisitions of InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc. are EBITDA margin-accretive at a consolidated level with the integration plans progressing smoothly. The company is preparing itself for the future with focused investments in R&D as well as portfolio build-up through strategic inorganic moves. The quarter also saw an improvement in cash flows on account of operational efficiencies, Cipla said.

Shares of most automobiles companies rose as prices of petrol and diesel were reduced with effect from midnight of 15 August 2016. Escorts (up 0.87%), Maruti Suzuki (India) (up 0.46%), Bajaj Auto (up 0.39%), Eicher Motors (up 0.36%), Mahindra & Mahindra (up 0.15%) and TVS Motor Company (up 0.15%), edged higher. Hero MotoCorp (down 0.18%), Ashok Leyland (down 0.4%) and Tata Motors (down 1.03%), edged lower.

Petrol prices were reduced by Re 1 a litre at Delhi (including state levies) with corresponding price revision in other states. With this change, the price of Petrol in Delhi reduced to Rs 60.09 a litre. Diesel prices were decreased by Rs 2 a litre at Delhi (including state levies) with corresponding price revision in other states. With this change, the price of Diesel in Delhi reduced to Rs 50.27 a litre.

Infosys was down 3.05%. The company announced on Saturday, 13 August 2016, that The Royal Bank of Scotland will no longer pursue its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G), and instead will pursue other options for the divestment of this business. Infosys has been a W&G program technology partner for Consulting, Application Delivery and Testing services, and subsequent to this decision, will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months. RBS is a key relationship for Infosys and the company said it looks forward to further strengthening its strategic partnership and working with them across other strategic and transformation programs.

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