Sensex, Nifty hit one-week closing low

Key benchmark indices edged lower for the second day in a row after an uptick in crude oil prices on Friday, 25 July 2014. Nevertheless, as crude gave away some of those gains today, 28 July 2014, an intraday recovery was witnessed on the domestic bourses. The barometer index, the S&P BSE Sensex, settled below the psychological 26,000 mark after alternately moving above and below that level in intraday trade. The Sensex and the 50-unit CNX Nifty, both, hit one-week closing low. The Sensex was down 135.52 points or 0.52%, off 190.60 points from the day's high and up 90.98 points from the day's low. The market breadth indicating the overall health of the market was negative.

Hindustan Unilever (HUL) gained on decent Q1 result. Realty stocks declined. Index heavyweight Reliance Industries (RIL) edged lower. Bank of Baroda rose on good Q1 results. Cement stocks dropped. ACC declined as the stock turned ex-dividend today, 28 July 2014, for dividend of Rs 15 per share for the year ending 31 December 2014 (FY 2014).

Reliance Power and Jaiprakash Power Ventures gained after Reliance Power signed memorandum of understanding to acquire the entire hydroelectric power portfolio of Jaiprakash Power Ventures. Cairn India rose after the company in a clarification issued with regard to news item titled "Cairn tanks on $1.25-billion Loan to Sesa arm" said that the company has complied with the applicable regulatory requirements in respect of the said transaction. Metal and mining stocks declined. Most IT stocks gained.

The S&P BSE Sensex lost 135.52 points or 0.52% to settle at 25,991.23, its lowest closing level since 21 July 2014. The index lost 226.50 points at the day's low of 25,900.25 in afternoon trade. The index rose 55.08 points at the day's high of 26,181.83 in early trade.

The CNX Nifty lost 41.75 points or 0.54% to settle at 7,748.70, its lowest closing level since 21 July 2014. The index hit a low of 7,722.65 in intraday trade. The index hit a high of 7,799.90 in intraday trade.

The total turnover on BSE amounted to Rs 2446 crore, lower than Rs 3577.35 crore on Friday, 25 July 2014.

The BSE Mid-Cap index lost 38.99 points or 0.42% to settle at 9,139.22, outperforming the Sensex. The BSE Small-Cap Index shed 70.53 points or 0.7% to settle at 9,966.64, underperforming the Sensex.

The market breadth indicating the overall health of the market was negative. On BSE, 1,665 shares fell and 1,189 shares rose. A total of 115 shares were unchanged.

The S&P BSE Capital Goods index (down 0.66%), the S&P BSE Bankex (down 0.69%), the S&P BSE Auto index (down 0.78%), the S&P BSE Oil & Gas index (down 1.29%), the S&P BSE Metal index (down 1.51%) and the S&P BSE Realty index (down 2.69%) underperformed the Sensex.

The S&P BSE Consumer Durables index (up 0.57%), the S&P BSE FMCG index (up 0.38%), the S&P BSE IT index (up 0.37%), the S&P BSE Teck index (up 0.18%), the S&P BSE Healthcare index (up 0.16%) and the S&P BSE Power index (down 0.16%) outperformed the Sensex.

Among the 30-share Sensex pack, 22 stocks fell and rest of them rose.

Index heavyweight Reliance Industries (RIL) declined 1.84% to Rs 1,003. The stock hit high of Rs 1,023.80 and low of Rs 1,002.25.

GAIL (India) lost 1.25%. The company has entered into a Memorandum of Understanding (MOU) with Sumitomo Corporation, Japan (Sumitomo). Under the MOU, GAIL and Sumitomo will pursue business opportunities in natural gas and LNG value chain business globally, specifically covering cooperation in petrochemicals, natural gas procurement, pipelines and LNG. GAIL and Sumitomo hold half of the capacity in the Cove Point LNG Liquefaction Terminal in the US respectively, and have also agreed to coordinate for ensuring smooth operation of the terminal. Both parties view US market as a growth area for their line of businesses and would cooperate on businesses ranging from upstream to downstream, GAIL (India) said. The announcement was made during trading hours today, 28 July 2014.

Cairn India rose 1.65% after the company after market hours on Friday, 25 July 2014 in a clarification issued with regard to news item titled "Cairn tanks on $1.25-billion Loan to Sesa arm" said that the company has complied with the applicable regulatory requirements in respect of the said transaction. This being a related party transaction (RPT), prior approval of the audit committee was taken and the transaction is being effected on arm's length principle. The said loan has been extended by subsidiaries of Cairn India and the coupon rate is commensurate with the market rate for such transaction, Cairn India said.

Cairn India said that the amended Clause 49, which will be effective from, 1 October 2014, has introduced concept of "material" RPT and also the requirement for seeking approval of shareholders by special resolution for such cases. The transaction in question is not a "material" transaction. Accordingly, no approval of shareholders/disclosure is required, Cairn India said.

Cairn India further said that the loan has been extended for 2 years at floating rate of 3% plus LIBOR. The return from the said facility is benchmarked with return of similar rated instruments and is higher than returns the company was earning from the deposits, Cairn India added.

L&T slipped 0.38%. L&T's consolidated profit after tax (PAT) jumped 111% to Rs 967 crore on 10% growth in gross revenue to Rs 19123 crore in Q1 June 2014 over Q1 June 2013. The sharp rise in PAT was on the back of divestment gains, L&T said. The recurring PAT jumped 68% to Rs 771 crore in Q1 June 2014 over Q1 June 2013. The result hit the market after market hours.

International revenue during Q1 June 2014 stood at Rs 4781 crore, constituting 25% of the total revenue, L&T said.

L&T's order intake rose 11% to Rs 33408 crore in Q1 June 2014 over Q1 June 2013. The international order inflow at Rs 14754 crore in Q1 June 2014 grew more than 2 times on year-on-year (YoY) and constituted 44% of the total order inflow during the quarter. Major orders during Q1 June 2014 were secured by the infrastructure, hydrocarbon and heavy engineering segments, L&T said.

The consolidated order book of the group stood at Rs 195392 crore as on 30 June 2014, higher by 13% on YoY basis. International order book constituted 26% of the total order book, L&T said.

L&T said that notwithstanding the improved sentiments, the domestic business environment and investment cycle continued to remain subdued in Q1 June 2014. The company weathered domestic slowdown by strengthening its international presence in the select overseas markets amidst strong competitive pressures, L&T said.

L&T said that the domestic market holds large potential, awaiting impetus through policy measures and conducive investment environment. The company expects good prospects in the medium term from revival of core sectors such as infrastructure, power, minerals & metals, defence and oil & gas when the initiatives by the new government at the centre take definitive shape and rigour. The company is confident of sustaining its growth momentum by utilizing the emerging opportunities for which it has positioned itself well, L&T said.

Bharat Heavy Electricals (Bhel) rose 0.95%. Bhel after market hours said that the company has bagged an order valued at Rs 68 crore for setting up a 10 MWp grid connected solar power plant for Karnataka Power Corporation (KPCL). The plant will be set up at Shivanasamudram, Belakavadi Village in Mandya District of Karnataka. Bhel's scope of work in the turnkey contract envisages design, engineering, manufacture, supply, erection, testing and commissioning of the 10 MW solar power plant including grid inter-connection, operation and maintenance (O&M) of the plant for 3 years.

Hindustan Unilever (HUL) rose 3.69% to Rs 686.45 on decent Q1 result. The stock hit high of Rs 691.05 and low of Rs 654.55. The company's net profit rose 3.68% to Rs 1056.85 crore on 13.35% rise in total income to Rs 7918.45 crore in Q1 June 2014 over Q1 June 2013. The result was announced during market hours. Profit after tax before exceptional items jumped 15% to Rs 1020 crore in Q1 June 2014 over Q1 June 2013.

HUL said that the operating environment remained challenging with market growth further slowing down during the quarter. Overall competitive activity remained high despite the lower media intensity in the quarter. Given this context, investments were sustained at competitive levels across segments with absolute advertising & promotion (A&P) spends increasing by Rs 55 crore on year on year basis in Q1 June 2014. Cost inflation continued to be managed through a mix of judicious pricing and cost savings, HUL said.

Dabur India declined 1.05%. The company's consolidated net profit rose 13.33% to Rs 210.81 crore on 13.01% increase in total income to Rs 1,904.80 crore in Q1 June 2014 over Q1 June 2013. The result was announced during trading hours today, 28 July 2014. Dabur India reported strong growth in key categories like health supplements, digestives, hair care, home care and foods in Q1 June 2014.

Godrej Consumer Products (GCPL) declined 0.12%. The company during market hours reported 8.09% growth in consolidated net profit at Rs 143.45 crore on 10.1% growth in total income to Rs 1915.89 crore in Q1 June 2014 over Q1 June 2013.

GCPL said it continues to do well in its core categories in India, backed by the success of new innovations.

Metal and mining stocks declined. Tata Steel (down 1.91%), Steel Authority of India (Sail) (down 0.8%), Sesa Sterlite (down 0.77%), Hindalco Industries (down 2.14%), National Aluminum Company (down 2.26%), NMDC (down 1.96%), Hindustan Zinc (down 2.61%) and Hindustan Copper (down 1.6%) declined. JSW Steel rose 1.27%.

Jindal Steel & Power (JSPL) declined 0.55%. The company after market on Friday, 25 July 2014, said that the Board of Directors of its subsidiary Jindal Power (JPL) at a meeting held on 28 April 2014 gave in-principle approval for sale of JPL's entire equity share in Kamala Hydro Electric Power Company. As and when some proposal is finalized, the same will be appropriately disclosed to stock exchanges, JSPL said. The company clarified this with respect to media reports, "Jindal Power seeks to sell entire stake in Arunachal hydro project".

Most IT stocks gained. HCL Technologies (up 1.76%), Wipro (up 0.66%), Infosys (up 0.23%) and Tech Mahindra (up 0.24%) gained.

TCS declined 0.57% as the stock turned ex-dividend today, 28 July 2014, for interim dividend of Rs 5 per share and special dividend of Rs 40 per share for the year ending 31 March 2015 (FY 2015).

Mastek jumped 4.06% after the company said that Mastek UK, a wholly-owned subsidiary of the company in UK, has signed a major contract with British Telecom (BT), one of the world's leading providers of communications services and solutions, to support new IT operations and systems for a UK Government agency. The announcement was made during trading hours today, 28 July 2014.

Cement stocks dropped. ACC dropped 3.26% as the stock turned ex-dividend today, 28 July 2014, for dividend of Rs 15 per share for the year ending 31 December 2014 (FY 2014).

Ambuja Cements (down 2.71%), and UltraTech Cement (down 3.11%), declined.

Grasim Industries declined 1.76%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.

Shree Cement rose 1.72%.

JK Lakshmi Cement jumped 12.26% after net profit surged 157.7% to Rs 40.46 crore on 31.1% rise in total income to Rs 602.92 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours Friday, 25 July 2014. JK Lakshmi Cement said that increase in turnover was backed by a growth of 14% and 18% in production and sales volume respectively. The company's operating profit rose 58% to Rs 115.98 crore in Q1 June 2014 over Q1 June 2013.

Reliance Power rose 3.47% and Jaiprakash Power Ventures gained 3.17% after Reliance Power signed memorandum of understanding to acquire the entire hydroelectric power portfolio of Jaiprakash Power Ventures. Reliance Power (RPower) and Jaiprakash Power Ventures (JPVL) made the announcement on Sunday, 27 July 2014.

JPVL hydroelectric power portfolio has an aggregate capacity of nearly 1,800 megawatt (MW) fully in operation and with an asset base of over Rs 10000 crore. The portfolio consists of 3 plants with an asset life of over 50 years, each using run-of-the-river technology to convert natural water flow to electricity, eliminating the need for a large reservoir. JPVL is a subsidiary of Jaiprakash Associates (JAL). JAL intends to utilise the entire proceeds of the proposed transaction to reduce its outstanding debt, and thereby deleverage its consolidated balance sheet.

Upon completion of the proposed transaction, Reliance Power will become the largest provider of hydroelectric power in the private sector in India.

Havells India fell 2.22%. The company during market hours reported a 13.22% rise in net profit to Rs 107.27 crore on 22.19% growth in total income to Rs 128.84 crore in Q1 June 2014 over Q1 June 2013.

Bank of Baroda rose 0.56% to Rs 866.40 on good Q1 results. The stock hit high of Rs 878 and low of Rs 856. The bank's net profit rose 16.61% to Rs 1361.88 crore on 9% increase in total income to Rs 11682.50 crore in Q1 June 2014 over Q1 June 2013. The result was announced during trading hours today, 29 July 2014.

The bank's ratio of net non-performing assets (NPAs) to net advances stood at 1.58% as on 30 June 2014, compared with 1.52% as on 31 March 2014 and 1.69% as on 30 June 2013. The bank's ratio of gross NPAs to gross advances stood at 3.11% as on 30 June 2014, compared with 2.94% as on 31 March 2014 and 2.99% as on 30 June 2013.

Provisions and contingencies fell 48.25% to Rs 526.71 crore in Q1 June 2014 over Q1 June 2013. The provisioning coverage ratio as on 30 June 2014 stood at 66.68%.

Central Bank of India jumped 7.24% to Rs 71.80 after net profit surged 773.69% to Rs 191.60 crore on 7.5% rise in operating income to Rs 6927.71 crore in Q1 June 2014 over Q1 June 2013. The result was announced on Saturday, 26 July 2014.

Realty stocks declined. DLF (down 5.2%), Housing Development and Infrastructure (HDIL) (down 3.99%), D B Realty (down 2.26%), Sobha Developers (down 2.18%) and Unitech (down 2.08%), declined.

Indiabulls Real Estate lost 2.01% after consolidated net profit fell 46.5% to Rs 38.85 crore on 18.8% rise in total income to Rs 623.48 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Friday, 25 July 2014. Indiabulls Real Estate said that total sales in terms of area stood at 5.2 lakh sq ft Q1 June 2014 compared to 15.6 lakh sq foot in Q1 June 2013. Total saleable area under construction stood at 30.20 million sq. ft. as on 30 June 2014, Indiabulls Real Estate said.

Ashok Leyland fell 1.5%. The company reported a net loss of Rs 47.95 crore in Q1 June 2014, lower than net loss of Rs 141.75 crore in Q1 June 2013. The company announced the result after market hours on Friday, 25 July 2014. Ashok Leyland's total income rose 5.25% to Rs 2500.92 crore in Q1 June 2014 over Q1 June 2013.

Force Motors rose 1.51% after net profit rose 35.95% to Rs 19.40 crore on 8.31% rise in net sales to Rs 538.42 crore in Q1 June 2014 over Q1 June 2013. The company announced the result on Saturday, 26 July 2014.

Thomas Cook (India) rose 1.31% after consolidated net profit rose 43.4% to Rs 46.60 crore on 82.7% rise in net sales to Rs 549.12 crore in Q2 June 2014 over Q2 June 2013. The company announced the result after market hours on Friday, 25 July 2014.

Eveready Industries India rose 0.65% on strong Q1 result. The company's net profit jumped 157.3% to Rs 10.60 crore on 15.7% growth in net sales to Rs 323.49 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Friday, 25 July 2014. Operating EBITDA (earnings before interest, taxes, depreciation and amortization) rose 36.54% to Rs 33.18 crore in Q1 June 2014 over Q1 June 2013.

Raymond fell 2.85% after the company reported a consolidated net loss of Rs 32.85 crore in Q1 June 2014, lower than net loss of Rs 49.68 crore in Q1 June 2013. The result was announced after market hours on Friday, 25 July 2014. Raymond's net sales rose 25.4% to Rs 1096.09 crore in Q1 June 2014 over Q1 June 2013.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 48% to Rs 63 crore in Q1 June 2014 over Q1 June 2013. EBITDA margins rose to 6% in Q1 June 2014 from 5% in Q1 June 2013.

Sintex Industries rose 2.14% after the company's wholly owned subsidiary announced acquisition of SIMONIN group. The announcement was made after market hours on Friday, 25 July 2014. Sintex Industries acquired 100% equity stake in France-based SIMONIN group, a manufacturer of metal and plastic sub-assemblies and technical components, for a cash consideration of euro 18 million. The deal was struck through Sintex Industries wholly owned subsidiary Sintex NP SAS France. The acquisition will help the company to expand its products portfolio of metal parts like moulded products and move up the supplier value chain, Sintex Industries said. The deal will help Sintex integrate French and Indian plants to offer products and services with a bouquet of manufacturing footprint across with wide variety of technologies and capabilities with differential cost basis.

A bout of volatility was witnessed as key benchmark indices edged lower after opening higher. Key benchmark indices alternately swung between positive and negative terrain near the flat line in morning trade. Key benchmark indices extended losses and hit fresh intraday low in mid-morning trade. Key benchmark indices extended losses and hit fresh intraday low in early afternoon trade. The Sensex and CNX Nifty both hit fresh intraday low in afternoon trade. Key benchmark indices traded off the day's lows in mid-afternoon trade.

Indian stocks fell for the second day in a row today, 28 July 2014. The Sensex has fallen 280.62 points or 1.06% in two trading sessions from its recent high of 26,271.85 on 24 July 2014. The Sensex has risen 577.45 points or 2.27% in this month so far (till 28 July 2014). The Sensex has gained 4,820.55 points or 22.76% in calendar year 2014 so far (till 28 July 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 8,542.52 points or 48.95%.

Investors are keeping a close watch on crude oil prices. Brent crude dropped after Friday's rally. September-delivery Brent was off 93 cents at $107.46 a barrel on the ICE Futures Europe exchange in London. The contract soared $1.32 or 1.2% to close at $108.39 per barrel on Friday, 25 July 2014. It was the highest price the future has closed at since 10 July 2014. India imports about 80% of its crude oil requirement.

The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month July 2014 series to August 2014 series. The near-month July 2014 F&O contracts expire on Thursday, 31 July 2014.

The stock market remains closed tomorrow, 29 July 2014, on account of Ramzan Id.

In the foreign exchange market, the rupee was almost unchanged against the dollar. The partially convertible rupee was hovering at 60.1275, compared with its close of 60.11 on Friday, 25 July 2014.

European stocks edged higher today, 28 July 2014, as investors weighed company earnings and awaited data on American services and home sales. Key benchmark indices in UK and France were up 0.21% to 0.45%. In Germany, the DAX index was off 0.04%.

Chinese stocks led gains in Asian stocks today, 28 July 2014, on strong growth in profit at China's industrial companies in June 2014. Key benchmark indices in China, Hong Kong, Japan, and were up by 0.46% to 2.41%. Taiwan's Taiwan Weighted fell 0.2%.

Chinese industrial-company profits jumped the most last month since September, data yesterday showed. Profits at industrial companies in Asia's largest economy increased by 17.9% in June from a year earlier, after gaining 8.9% in May, data from China's statistics bureau showed. It was the biggest gain since an 18.4% climb in September of last year and came after a private gauge of Chinese manufacturing advanced to an 18-month high.

Trading in US index futures indicated a flat opening of US stocks on Monday, 28 July 2014. US stocks fell on Friday, 25 July 2014, on disappointing earnings reports from Amazon and Visa and Starbucks.

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