A divergent trend for various index constituents resulted in modest losses for key benchmark indices. The barometer index, the S&P BSE Sensex, fell 108.85 points or 0.40% to settle at 27,361.96. The Nifty fell 34.90 points or 0.42% to settle at 8,260.55. The Sensex and the Nifty extended losses at the fag end of the trading session after news report said tremors were felt in North India after a powerful earthquake hit northeastern Afghanistan. Media reports said that intense and prolonged tremors were felt in Kashmir where power supplies and most mobile networks were knocked out and there was structural damage to roads and buildings. No casualties were reported in Kashmir, according to news reports. The Sensex and the Nifty reversed direction after both these key benchmark indices struck 9-1/2-week high at the onset of the trading session.
Shares of index heavyweight and housing finance major HDFC edged lower in volatile trade after reporting second quarter results. Shares of two other index heavyweights Reliance Industries and ITC also edged lower. Stocks of Asian Paints and Bharti Airtel edged lower after both these firms reported disappointing Q2 September 2015 results.
Metal stocks ended on a mixed note after China's central bank unexpectedly cut interest rates and lenders' reserve requirements in a bid to lower corporate financing costs and pump liquidity into the economy. Shares of public sector oil marketing companies dropped. FMCG stocks edged higher. Capital goods shares witnessed a mixed trend after the government unveiled a draft national capital goods policy, seeking comments and suggestions on the various proposals. Auto stocks also witnessed a mixed trend.
The Sensex fell 108.85 points or 0.40% to settle at 27,361.96, its lowest closing level since 21 October 2015. The Sensex fell 152.61 points or 0.55% at the day's low of 27,318.20 at the fag end of the trading session. The barometer index jumped 147.33 points or 0.53% at the day's high of 27,618.14 at the onset of the trading session, its highest level since 20 August 2015.
The Nifty fell 34.90 points or 0.42% to settle at 8,260.55, its lowest closing level since 21 October 2015. The Nifty fell 43.40 points or 0.52% at the day's low of 8,252.05 at the fag end of the trading session. The index rose 40.85 points, or 0.49% at the day's high of 8,336.30 at the onset of the trading session, its highest level since 20 August 2015.
Among the sectoral indices on BSE, the S&P BSE Power index (up 0.46%), the S&P BSE Capital Goods index (up 0.38%), the S&P BSE IT index (up 0.24%), the S&P BSE Auto index (up 0.14%), the S&P BSE FMCG index (down 0.07%), the S&P BSE Teck index (down 0.12%) and the S&P BSE Healthcare index (down 0.15%) outperformed the Sensex. The S&P BSE Bankex (down 0.63%), the S&P BSE Realty index (down 0.69%), the S&P BSE Metal index (down 0.7%), the S&P BSE Consumer Durables index (down 0.87%) and the S&P BSE Oil & Gas index (down 0.95%), underperformed the Sensex.
The market breadth indicating the overall health of the market was weak. On BSE, 1,735 shares declined and 978 shares rose. A total of 151 shares were unchanged. The BSE Mid-Cap index fell 0.52%. The BSE Small-Cap index fell 0.72%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 2654 crore, higher than turnover of Rs 2545.16 crore registered during the previous trading session.
Capital goods shares witnessed a mixed trend after the government unveiled a draft national capital goods policy, seeking comments and suggestions on the various proposals. Jindal Saw (down 3.42%), Punj Lloyd (down 3.28%), BEML (down 2.1%), Pipavav Defence and Offshore Engineering Company (down 1.71%), Praj Industries (down 1.43%), Bharat Electronics (down 1.07%), Lakshmi Machine Works (down 0.68%), ALSTOM India (down 0.62%), Alstom T&D India (down 0.51%), AIA Engineering (down 0.5%), L&T (down 0.14%) and Havells India (down 0.06%), edged lower. SKF India (up 0.28%), Crompton Greaves (up 0.30%), Thermax (up 0.43%), Siemens (up 1.62%), ABB India (up 2.41%), Suzlon Energy (up 3.25%) and Bharat Heavy Electricals (up 3.72%), edged higher.
The draft proposals released by the Department of Heavy Industry include incentivizing foreign direct investment in high technology manufacturing, increasing investment allowance to 25% from 15% over five years, interest subvention scheme for SMEs among others. The Department of Heavy Industry has sought comments on the draft capital goods policy by 31 October 2015.
Index heavyweight and cigarette major ITC fell 0.53% to Rs 356.40. The stock hit a high of Rs 359.75 and a low of Rs 354 in intraday trade.
Index heavyweight Reliance Industries (RIL) fell 1.34% to Rs 943. The stock hit a high of Rs 963 and a low of Rs 940 in intraday trade.
State-run Coal India fell 2.40% to Rs 333.20. The stock hit a high of Rs 344.60 and a low of Rs 332.10 in intraday trade.
Metal stocks ended on a mixed note after China's central bank unexpectedly cut interest rates and lenders' reserve requirements in a bid to lower corporate financing costs and pump liquidity into the economy. Hindustan Copper (down 2.8%), NMDC (down 2.73%), National Aluminium Company (down 1.96%), Bhushan Steel (down 1.65%), Jindal Steel & Power (down 1.57%), JSW Steel (down 0.67%) and Hindustan Zinc (down 0.13%) edged lower. Hindalco Industries (up 0.29%), Tata Steel (up 1.38%), Steel Authority of India (up 1.44%) and Vedanta (up 2.40%), edged higher. China is the world's largest consumer of steel, copper and aluminum.
Shares of public sector oil marketing companies dropped. HPCL (down 2.94%), Indian Oil Corporation (down 1.73%) and BPCL (down 0.93%) edged lower.
In global commodities markets, Brent for December settlement was currently up 10 cents at $48.09 a barrel. The contract had fallen 9 cents or 0.18% to settle at $47.99 a barrel during the previous trading session.
Shares of index heavyweight and housing finance major HDFC edged lower in volatile trade after the company announced second quarter earnings. The stock shed 2.09% at Rs 1,312.85. The stock hit high of Rs 1,350 and low of Rs 1,305.90 in intraday trade. HDFC's net profit rose 18.19% to Rs 1604.56 crore on 12.13% rise in total income to Rs 7480.24 crore in Q2 September 2015 over Q2 September 2014. On a consolidated basis, HDFC's net profit rose 2.04% to Rs 2106.51 crore on 7.61% rise in total income to Rs 12530.28 crore in Q2 September 2015 over Q2 September 2014.
Meanwhile, HDFC announced that the board of directors of the company has granted in-principle approval for a sponsored level 1 ADR programme in respect of up to 10% of the issued and paid-up share capital of the company. The programme envisages conversion of existing equity shares of the company into ADRs and there will be no fresh issue of equity shares. HDFC's board of directors also granted in-principle approval for issue of rupee denominated bonds aggregating up to $750 million in overseas markets.
The company's board of directors also granted approval for re-appointment of Keki M. Mistry as the Managing Director (designated as Vice-Chairman & Chief Executive Officer) subject to approval of the shareholders of the company.
Bharti Airtel fell as second quarter results disappointed investors. The stock fell 1.91% to Rs 351.90. The stock hit high of Rs 366 and low of Rs 347.30 in intraday trade. Bharti Airtel's consolidated net profit rose 10.08% to Rs 1522.70 crore on 4.33% growth in total income to Rs 23851.90 crore in Q2 September 2015 over Q2 September 2014. The result is as per International Financial Reporting Standards (IFRS). The result was announced during market hours today, 26 October 2015.
Bharti Airtel's bottom line in Q2 September 2015 was boosted by exceptional items. There was a net exceptional gain of Rs 659.60 crore in Q2 September 2015 as against exceptional loss of Rs 175 crore in Q2 September 2014. There was a net gain of Rs 1044 crore in Q2 September 2015 pertaining to the divestment of telecom tower assets in Zambia, Uganda and Kenya. There were exceptional charges amounting to Rs 384.40 crore in Q2 September 2015 viz. depreciation charge of Rs 16.60 crore arising out of the termination of the tower sale agreement, charge of Rs 213.60 crore towards operating costs on network refarming and up-gradation program, regulatory fee provisions of Rs 142.60 crore arising out of re-assessment of certain positions and charge of Rs 11.60 crore towards restructuring activities in a few countries.
Adverse currency movements resulted in forex and derivative losses of Rs 809 crore in Q2 September 2015, significantly higher than losses of Rs 219 crore in Q2 September 2014.
Asian Paints edged lower as second quarter results fell short of market expectations. The stock lost 4.65% to Rs 816.95. Asian Paints' net profit rose 11.92% to Rs 364.48 crore on 2.6% increase in total income to Rs 3122.98 crore in Q2 September 2015 over Q2 September 2014. The result was announced after trading hours on Friday, 23 October 2015.
Auto stocks were mixed. TVS Motor Company (down 2.96%), Ashok Leyland (down 2.27%), Eicher Motors (down 1.11%), Escorts (down 0.47%) and Mahindra & Mahindra (M&M) (down 0.25%), edged lower. Tata Motors (up 0.43%), Hero MotoCorp (up 0.97%) and Bajaj Auto (up 2.14%), edged higher.
Maruti Suzuki India gained 0.14% to Rs 4,387.75. The company is set to announce its Q2 September 2015 results tomorrow, 27 October 2015.
Force Motors rose 3.93% to Rs 3,613 after net profit rose 65.33% to Rs 42.48 crore on 27.45% rise in net total income from operations to Rs 763.24 crore in Q2 September 2015 over Q2 September 2014. The result was announced on Saturday, 24 October 2015.
The Sensex has risen 1,207.13 points or 4.62% in this month so far (till 26 October 2015). The Sensex has fallen 137.46 points or 0.50% in this calendar year so far (till 26 October 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 2,528.42 points or 10.18%. The Sensex is off 2,662.78 points or 8.87% from a record high of 30,024.74 hit on 4 March 2015.
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