Sensex, Nifty hit lowest closing level in nearly two weeks

Key benchmark indices edged lower on weak global cues. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their lowest closing level in nearly two weeks. The Sensex lost 321.94 points or 1.31%, off 294.05 points from the day's high and up 27.65 points from the day's low. The market breadth, indicating the overall health of the market was negative. The market sentiment was hit adversely by data showing that foreign funds were net sellers of Indian stocks on Wednesday, 28 May 2014.

The Sensex has risen 1,816.35 points or 8.1% in this month so far (till 29 May 2014). The Sensex has gained 3,063.47 points or 14.47% in calendar year 2014 so far (till 29 May 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 6,785.44 points or 38.88%. From a record high of 25,375.63 on 16 May 2014, the Sensex has fallen 1,141.48 points or 4.49%.

Coming back to today's trade, Hero MotoCorp declined after announcing weak Q4 results. Hindalco Industries edged higher in choppy trade after the company announced its Q4 results. Coal India edged lower in choppy trade after the company announced weak Q4 result. IT stocks declined. Infosys slumped after the company after market hours on Wednesday, 28 May 2014, announced the resignation of its President and Member of the Board B. G. Srinivas.

The market edged lower in early trade. Key benchmark indices languished in negative terrain in morning trade. Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade. Key benchmark indices languished in negative terrain in early afternoon trade. Key benchmark indices extended losses in afternoon trade. Weakness continued on the bourses in mid-afternoon trade. Key benchmark indices extended losses and hit fresh intraday low in late trade.

The market sentiment was affected adversely by data showing that foreign funds were net sellers of Indian stocks on Wednesday, 28 May 2014. Foreign institutional investors (FIIs) sold shares worth a net Rs 254.60 crore into the secondary equity markets on Wednesday, 28 May 2014, as per the data from the Securities & Exchange Board of India (Sebi).

The S&P BSE Sensex lost 321.94 points or 1.31% to settle at 24,234.15, its lowest closing level since 16 May 2014. The index dropped 349.59 points at the day's low of 24,206.50 in late trade, its lowest level since 21 May 2014. The index fell 27.89 points at the day's high of 24,528.20 in early trade.

The CNX Nifty lost 94 points or 1.28% to settle at 7,235.65, its lowest closing level since 16 May 2014. The index hit a low of 7,224.40 in intraday trade, its lowest level since 21 May 2014. The index hit a high of 7,325.40 in intraday trade.

The BSE Mid-Cap index lost 28.69 points or 0.34% to settle at 8,434.40. The BSE Small-Cap index shed 43.45 points or 0.48% to settle at 8,985.37. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 3674 crore, lower than Rs 3954.80 crore on Wednesday, 28 May 2014.

The market breadth, indicating the overall health of the market was negative. On BSE, 1,551 shares declined and 1,407 shares rose. A total 103 shares were unchanged.

The S&P BSE Realty index (down 1.37%), the S&P BSE Capital Goods index (down 1.49%), the S&P BSE Oil & Gas index (down 1.64%), the S&P BSE Teck index (down 2.92%) and the S&P BSE IT index (down 3.44%) underperformed the Sensex.

The S&P BSE Healthcare index (up 0.02%), the S&P BSE Auto index (down 0.18%), the S&P BSE FMCG index (down 0.31%), the S&P BSE Metal index (down 0.87%), the S&P BSE Bankex (down 0.9%), the S&P BSE Consumer Durables index (down 1.11%), the S&P BSE Power index (down 1.16%) outperformed the Sensex.

Among the 30-share Sensex pack, 18 stocks fell and rest of them rose.

Bharat Heavy Electricals (Bhel) dropped 1.89%. The company's net profit fell 43.02% to Rs 1844.59 crore on 21.42% fall in total income to Rs 15320.38 crore in Q4 March 2014 over Q4 March 2013. The result was announced after trading hours. Bhel's net profit fell 47.68% to Rs 3460.78 crore on 17.8% fall in total income to Rs 40724.86 crore in the year ended 31 March 2014 over the year ended 31 March 2013.

On a consolidated basis, Bhel's net profit fell 47.66% to Rs 3502.86 crore on 17.68% fall in total income to Rs 41192.43 crore in the year ended 31 March 2014 over the year ended 31 March 2013.

Bhel said that consequent to merger of Bharat Heavy Plates & Vessels (BHPV) with the company with effect from 30 August 2013, the financial results of HPVP unit (erstwhile BHPV) have been included in the above results. In view of this, figures for the current reporting period are not comparable with the figures in corresponding period of previous year.

Index heavyweight Reliance Industries (RIL) slipped 0.79% to Rs 1,079.95. The stock hit high of Rs 1,093.90 and low of Rs 1,069.15.

ONGC declined 2.09% ahead of its Q4 results today, 29 May 2014.

Indian Oil Corporation fell 1.07%. Indian Oil Corporation's net profit fell 35.30% to Rs 9389.85 crore on 5.32% increase in total income to Rs 135465.86 crore in Q4 March 2014 over Q4 March 2013. The result was announced during trading hours today, 29 May 2014.

Indian Oil Corporation's net profit rose 40.24% to Rs 7019.09 crore on 5.77% increase in total income to Rs 476627.38 crore in the year ended March 2014 over the year ended March 2013.

On a consolidated basis, net profit rose 59.26% to Rs 7085.59 crore on 5.69% increase in total income to Rs 491787.31 crore in the year ended March 2014 over the year ended March 2013.

BPCL shed 0.96% to Rs 536.50 on weak Q4 result. The scrip hit high of Rs 555 and low of Rs 532.15. The company's net profit fell 15.19% to Rs 4068.37 crore on 12.53% increase in total income to Rs 75194.71 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours.

BPCL's net profit rose 53.65% to Rs 4060.88 crore on 8.16% increase in total income to Rs 261529.19 crore in the year ended March 2014 (FY 2014) over the year ended March 2013 (FY 2013).

On a consolidated basis, the company's net profit surged 107.92% to Rs 3910.68 crore on 9.07% increase in total income to Rs 265806.39 crore in FY 2014 over FY 2013.

BPCL received discount of Rs 15576.78 crore in FY 2014 (FY 2013: Rs 16844.49 crore) on crude oil/products purchased from ONGC/GAIL (India)/NRL, which has been adjusted against the purchase cost.

The company received compensation of Rs 18374.28 crore from the Government of India by way of subsidy in FY 2014 as against Rs 21896.65 crore in FY 2013

Consequent to non-revision in retail selling prices corresponding to the international prices and applicable foreign exchange rates prevailing during the current year, BPCL has absorbed net under-recovery of Rs 511.50 crore in FY 2014 (FY 2013: Rs 249.29 crore) on sale of sensitive petroleum products.

Other expenditure in FY 2014 includes Rs 678.03 crore (FY 2013: Rs 769.09 crore) towards loss on account of foreign currency transactions and translations.

Coal India edged lower in volatile trade after the company announced weak Q4 result. The stock shed 2.22% at Rs 372.30. The scrip hit high of Rs 383.50 and low of Rs 371.05. The company's consolidated net profit fell 18.09% to Rs 4434.18 crore on 1.22% increase in total income to Rs 22382.35 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours.

Sun Pharmaceutical Industries (Sun Pharma) rose 0.63% to Rs 587.60 after announcing strong Q4 result. The scrip hit high of Rs 591.90 and low of Rs 582.50. The company's consolidated net profit jumped 57% to Rs 1587 crore on 32% increase in net sales/income from operations to Rs 4044 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours.

Sun Pharma has issued guidance of 13% to 15% growth in revenue for the year ending 31 March 2015 (FY 2015). The FY 2015 guidance takes into account the higher base of FY 2014 (year ended 31 March 2014) as well the risks associated with increase in competition for some products, Sun Pharma said. The guidance is at constant exchange rate and excludes the impact of the proposed acquisition of Ranbaxy Laboratories pending the deal closure. The company expects R&D spending at 6-8% of revenue in FY 2015. The company said it is targeting 25 ANDA filings in the US in FY 2015. The company said it is expected to spend Rs 900 crore on capital expenditure in FY 2015.

Metal and mining stocks declined. Steel Authority of India (down 3.19%), Sesa Sterlite (down 0.05%), NMDC (down 2.56%), Hindustan Copper (down 3.35%), Jindal Steel & Power (down 2.92%) and Tata Steel (down 0.75%) declined. Hindustan Zinc was unchanged at Rs 155.

Hindalco Industries rose 1.73% to Rs 149.700. The stock was volatile. The stock hit high of Rs 153 and low of Rs 143.15. The company's net profit fell 48.51% to Rs 248.15 crore on 19.68% rise in total income to Rs 8647.53 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours.

The sharp decline in net profit was due to extraordinary expenses of Rs 396 crore provided by the company during the quarter. The extraordinary expenses of Rs 396 crore include a liability of Rs 324 crore under The UP Tax Entry of Goods into Local Areas Act, 2007 (UP Entry Tax) and a liability of Rs 72 crore under The Madhyra Pradesh Gramin Avsanrachna Tatha Sarak Vikas Abhiniyam (MPGATSVA). Both these levies have been contested by the company and appeals against these are pending in the Supreme Court, Hindalco said. Hindalco's profit before exceptional items and tax rose 9.92% to Rs 598 crore in Q4 March 2014 over Q4 March 2013.

Hindalco Industries' net profit declined 16.82% to Rs 1413.33 crore on 7.15% growth in total income to Rs 28975.35 crore in the year ended 31 March 2014 over the year ended 31 March 2013. On a consolidated basis, Hindalco Industries' net profit declined 28.14% to Rs 2175.01 crore on 9.24% growth in total income to Rs 88712.69 crore in the year ended 31 March 2014 over the year ended 31 March 2013. Net profit was lower because of higher interest and depreciation and exceptional items.

National Aluminium Company (Nalco) declined 1.84% on weak Q4 result. The company's net profit fell 29.9% to Rs 172.45 crore on 0.63% decline in total income to Rs 1973.59 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 28 May 2014.

Nalco's net profit rose 8.35% to Rs 642.35 crore on 1.19% decline in total income to Rs 7338.56 crore in the year ended 31 March 2014 (FY 2014) over the year ended 31 March 2013).

Most auto stocks edged lower. Ashok Leyland (down 2.91%) and Maruti Suzuki India (down 0.11%) declined. Mahindra & Mahindra (M&M) rose 1.08%.

Tata Motors shed 1.13% to Rs 424. The stock was volatile. The stock hit high of Rs 432.65 and low of Rs 421.75. Tata Motors early this week said that its domestic operations would likely not post a profit or would have "inadequate" profit for the fiscal year that ended in March, hurt by sluggish demand. The company plans to launch new passenger vehicles from July 2014 to improve performance, Tata Motors said in a notice to the stock exchange on Tuesday, 27 May 2014.

Tata Motors announces its Q4 results today, 29 May 2014.

Shares of other two-wheeler makers were mixed. Bajaj Auto rose 0.12%. TVS Motor Company shed 0.7%.

Hero MotoCorp fell 0.39% to Rs 2,341.20 after announcing weak Q4 results. The stock was volatile. The stock hit high of Rs 2,353.60 and low of Rs 2,268.90. Hero MotoCorp's net profit declined 3.45% to Rs 554.43 crore on 6.31% rise in net sales to Rs 6455.70 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 28 May 2014. Hero MotoCorp's net profit declined 0.43% to Rs 2109.08 crore on 6.54% rise in net sales to Rs 25124.91 crore in the year ended March 2014 over the year ended March 2013.

Earnings before interest, taxes, depreciation and amortization (EBITDA) margin for the quarter stood at a healthy 13.73%, Hero MotoCorp said. The company's EBITDA margin stood at 14.01% in FY 2014.

There is only 30% tax exemption this year, it being the sixth year of the company's operations at Haridwar. The company was entitled to 100% exemption in the first five years of operation at its plant located in Haridwar, which expired last year.

Pawan Munjal, Managing Director & Chief Executive Officer, said: "These numbers are reflective of our new strategic approach focused on bringing path-breaking technologies and consolidating our leadership. FY 2014 was all about setting new benchmarks, which culminated with the sales of 6.25 million during the year - our highest-ever sales for any financial year. However, the industry continued to witness tepid growth during FY 2014, although the sentiments did improve in the second half of the year, starting with the festival season in October. In the fiscal year ending March 2015 (FY 2015), we have an action-packed year ahead of us with a slew of new products lined up for launch and further expansion of our global footprint. The country has just entered a new era of governance. After three long decades, a single political party has come to power with such a huge majority, and it is clearly a mandate for good governance, development and inclusive growth. With the new government expected to speed up the reforms process and improve the investment climate, we look forward to a revival of the economy and the industry this year."

Capital goods stocks edged lower. L&T (down 1.15%), Punj Lloyd (down 1.81%), Siemens (down 1.7%) and Thermax (down 1.84%) declined.

State Bank of India (SBI) shed 0.69%. The stock turned ex-dividend today, 29 May 2014, for dividend of Rs 15 per share for the year ended 31 March 2014 (FY 2014).

Tata Power Company slipped 0.73% ahead of its Q4 results today, 29 May 2014.

IT stocks edged lower. Wipro (down 2.67%), Tech Mahindra down 0.9%) and HCL Technologies (down 2.77%) declined. TCS rose 0.89%.

Infosys slumped after the company after market hours on Wednesday, 28 May 2014, announced the resignation of its President and Member of the Board B. G. Srinivas. The stock shed 7.86%. The resignation of Srinivas is effective 10 June 2014, Infosys said in a statement.

The Board of Directors placed on record their deep sense of appreciation for the services rendered by B. G. Srinivas during his tenure as Member of the Board and for his contribution to the company, Infosys said in a statement.

Srinivas, who joined Infosys in 1999, was the head of some of the largest businesses at Infosys, including the groups that do programming for financial services and manufacturing businesses. His resignation comes at a time when Infosys is the process of appointing a new CEO as current CEO, S.D. Shibulal, retires next January. Infosys said last month that it had hired external agencies to search for a new CEO. Infosys has been struggling with a string of senior management resignations ever since its founder N.R. Narayana Murthy returned to the company in June last year. Infosys had called back Murthy from retirement, hoping he could revive growth at the IT major.

Meanwhile, the Infosys stock turned ex-dividend today, 29 May 2014, for final dividend of Rs 43 per share for the year ended 31 March 2014 (FY 2014).

Infosys during market hours today, 29 May 2014, said that Al Hilal Bank, one of the fastest growing banks in the UAE has successfully implemented the award winning Infosys Finacle e-banking solution.

Telecom stocks declined. Tata Teleservices (Maharashtra) (down 3.78%), Bharti Airtel (down 1.16%), Reliance Communications (down 3.95%) and Idea Cellular (down 1.59%) declined.

Tata Global Beverages lost 4.99% on weak Q4 results. The company's consolidated net profit fell 27.63% to Rs 69.30 crore on 3.25% increase in total income to Rs 1926.15 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 28 May 2014. Tata Global Beverages said net profit declined in Q4 March 2014 over Q4 March 2013 due to higher expenditure on brands, new initiatives and exceptional items. During Q4 March 2014, Tata Global Beverages continued to create magical beverage moments for consumers, across tea, coffee and water. On a consolidated basis, Tata Global Beverages' net profit rose 28.9% to Rs 480.51 crore on 5.14% increase in total income to Rs 7819.41 crore in the year ended 31 March 2014 (FY 2014) over the year ended March 2013 (FY 2013).

Excel Crop Care jumped 9.13% after net profit surged 338.27% to Rs 10.65 crore on 18.90% increase in net sales to Rs 210.90 crore in Q4 March 2014 over Q4 March 2013. The result was announced after market hours on Wednesday, 28 May 2014. Excel Crop Care's net profit surged 213.96% to Rs 67.25 crore on 25.56% increase in net sales to Rs 937.16 crore in the year ended March 2014 over the year ended March 2013.

Bajaj Electricals lost 13.6% after the company reported a net loss of Rs 10.65 crore in Q4 March 2014 as against net profit of Rs 0.63 crore in Q4 March 2013. Bajaj Electricals' total income from operations (net) rose 15.4% to Rs 1270.97 crore in Q4 March 2014 over Q4 March 2013. The result was announced during market hours..

Bajaj Electricals reported a net loss of Rs 5.31 crore in the year ended 31 March 2014 as against net profit of Rs 51.21 crore in the year ended 31 March 2013. Total income from operations (net) rose 19.31% to Rs 4029.83 crore in the year ended 31 March 2014 over the year ended 31 March 2013.

Parliamentary Affairs Minister M. Venkaiah Naidu today, 29 May 2014, said that containing inflation is a priority for the government.

The inaugural session of the new Lok Sabha will commence on 4 June 2014 and end on 11 June 2014, Naidu announced today, 29 May 2014. The seven-day-long session has been convened to enable the newly-elected MPs to be sworn in. This will be followed by the election of the Speaker of the 16th Lok Sabha. President Pranab Mukherjee will also address a joint sitting of the two Houses during the session. The special session will be followed by a full-fledged budget session after a gap.

Finance Minister Arun Jaitley is expected to table Union Budget for 2014-15 in Lok Sabha by July 2014. An interim budget was presented by P. Chidambaram in February this year. Essentially, in the nature of a vote on account, the interim budget was intended to get Parliament approval for expenditure to be incurred during the first few months of fiscal year 2014-15 due to Lok Sabha elections.

The Reserve Bank of India (RBI) undertakes a monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.

European stocks edged lower Thursday, 29 May 2014. Key benchmark indices in France and Germany were off 0.03% to 0.08%. In UK, the FTSE 100 index was up 0.32%.

Spain's statistics institute INE Thursday said it's cutting its estimate for economic growth in the first quarter from the same quarter last year to 0.5%, down from a previous 0.6%, as it presented final gross domestic product data for the period. INE kept unchanged its earlier estimate of 0.4% growth in the first quarter from the fourth quarter of 2013. Despite the cut, the GDP estimate represents a significant acceleration from 0.2% quarterly growth in the fourth quarter last year.

Asian stocks declined in choppy trade on Thursday, 29 May 2014. Key benchmark indices in China, Hong Kong, South Korea and Taiwan were off 0.14% to 0.47%. Key benchmark indices in Japan and Singapore were up 0.07% to 0.88%.

Japan's retail sales dropped at the fastest pace in at least 14 years last month after the first consumption-tax increase since 1997 depressed consumer spending. Sales in April declined 13.7% from the previous month, the trade ministry reported today

Japan's central bank revised its guidance on its government bond operations, giving itself room to cut purchases of debt with maturities exceeding 10 years.

The Bank of Japan will buy about 6 trillion to 8 trillion yen of Japanese government bonds a month, it said today in a statement in Tokyo, revising a previous statement that said it would purchase approximately 7+ trillion yen. It will buy about 150 billion to 350 billion yen of debt of more than 10 years per auction, compared with prior guidance of 200 billion to 300 billion yen, according to today's statement.

The changes come as the duration of the BOJ's holdings bumps up against the upper end of a targeted six- to eight-year range. This is the third time the central bank has officially altered its guidance on its bond operations in 13 months, reflecting the challenge of managing unprecedented easing aimed at lifting Japan out of deflation.

Data released by the Bank of Korea today showed the nation's current account surplus narrowed to $7.12 billion in April from a revised $7.29 billion in March.

Philippine economic growth in first quarter eased to below 6% for the first time in nine quarters, giving the central bank scope to keep interest rates at a record low. Gross domestic product increased 5.7% in the three months through March from a year earlier, the Philippine Statistics Authority said in Manila today, after a 6.3% gain in the previous quarter.

Trading in US index futures indicated that the Dow could gain 15 points at the opening bell on Thursday, 29 May 2014. US stocks fell on Wednesday, 28 May 2014, as losses among retailers overshadowed gains in phone shares and utilities before a report that may show the economy contracted in the first quarter.

The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 17-18 June 2014. The Fed on 30 April 2014 said after a monetary policy review that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends. The FOMC also reduced monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve.

Russia called for unspecified emergency measures to halt the violence in eastern Ukraine after separatist militias suffered the heaviest casualties of their insurgency. Ukraine stepped up air patrols over the eastern city of Donetsk yesterday as a convoy of pro-Russian rebels moved through the city with an anti-aircraft gun in tow, threatening renewed violence after dozens of militants were killed in a government operation to retake the area's biggest airport. Both sides suffered casualties as rebels stormed a National Guard base in Luhansk last night, the Interior Ministry said on its website, without further details. President-elect Petro Poroshenko has vowed to wipe out the insurgents and re-establish order after winning office May 25.

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