After seeing high intraday volatility, key benchmark indices ended almost unchanged for the day. The barometer index, the S&P BSE Sensex, registered small losses while the 50-unit CNX Nifty registered minuscule gains. Both these indices hit record high in intraday trade. The Nifty hit record high on intraday basis as well as on closing basis. A divergent trend was witnessed among various constituents of the Sensex and the Nifty. The broad market depicted weakness. The market breadth indicating the overall health of the market was weak. The Sensex fell 11.86 points or 0.04% to settle at 29,559.18. The Nifty rose 3.80 points or 0.04% to settle at 8,914.30.
Ranbaxy Laboratories reversed intraday gain after announcing weak Q3 result during market hours today, 28 January 2015. Telecom stocks fell after the government postponed until 4 March 2015, the auction of mobile phone airwaves which was earlier slated to start on 25 February 2015. Havells India dropped after weak Q3 result. Shares of public sector oil marketing companies rose as crude oil dropped.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1101.54 crore from the secondary equity market yesterday, 27 January 2015, as per data from Central Depository Services.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade.
Brent crude oil futures dropped after an industry report showing a larger-than-expected rise in weekly US crude inventories bolstered speculation that a global glut will persist.
Indian stocks may remain volatile in the immediate future as traders roll over positions in the futures & options (F&O) segment from the near month January 2015 series to February 2015 series. The near month January 2015 derivatives contracts expire tomorrow, 29 January 2015.
In overseas markets, European stocks edged lower on worries about Greece. US stocks edged lower yesterday, 27 January 2015, following a surprise drop in durable-goods orders and disappointing earnings from Microsoft Corp. and Caterpillar Inc.
The S&P BSE Sensex fell 11.86 points or 0.04% to settle at 29,559.18, its lowest closing level since 23 January 2015. The index fell 153.37 points at the day's low of 29,417.67 in late trade. The index jumped 215.28 points at the day's high of 29,786.32 in afternoon trade, a lifetime high for the index.
The CNX Nifty rose 3.80 points or 0.04% to settle at 8,914.30, a record closing high. The index hit a low of 8,874.05 in intraday trade. The index hit a high of 8,985.05 in intraday trade, a lifetime high for the index.
The BSE Mid-Cap index rose 27.97 points or 0.26% to settle at 10,808.44, outperforming the Sensex. The BSE Small-Cap index fell 55.37 points or 0.48% to settle at 11,369.11. The fall in the index was higher than Sensex's decline in percentage terms.
The market breadth indicating the overall health of the market was weak. On BSE, 1,759 shares declined and 1,110 shares rose. A total of 110 shares were unchanged.
The total turnover on BSE amounted to Rs 3941 crore, higher than turnover of Rs 3890.86 crore yesterday, 27 January 2015.
Among sectoral indices on BSE, the S&P BSE Consumer Durables index (up 4.6%), the S&P BSE Realty index (up 1.69%), the S&P BSE Oil & Gas index (up 1.48%), the S&P BSE IT index (up 1%), the S&P BSE Teck index (up 0.28%), the S&P BSE FMCG index (up 0.27%) and the S&P BSE Healthcare index (up 0.14%), outperformed the Sensex. The S&P BSE Power index (down 0.23%), the S&P BSE Bankex (down 0.31%), the S&P BSE Auto index (down 0.72%), the S&P BSE Metal index (down 1.43%) and the S&P BSE Capital Goods index (down 1.45%), underperformed the Sensex.
Maruti Suzuki India rose 1.07% to Rs 3,724.75. The stock hit record high of Rs 3,758 in intraday trade. The stock hit a low of Rs 3,691.15 in intraday trade. The stock extended gains registered during the previous trading session triggered by the company's strong Q3 December 2014 results. Maruti Suzuki India's net profit rose 17.76% to Rs 802.16 crore on 15.38% rise in total income to Rs 12704.72 crore in Q3 December 2014 over Q3 December 2013. The result was announced during market hours yesterday, 27 January 2015.
Meanwhile, Maruti Suzuki India announced during trading hours that the Chief Minister of Gujarat, Anandiben Patel, laid the foundation stone for Suzuki group's Gujarat vehicle manufacturing plant in Hansalpur near Ahmedabad today, 28 January 2015. The Suzuki Group will set up three plants at Hansalpur with a total annual capacity of 7.50 lakh vehicles. The first plant is scheduled to start production in mid-2017. It is being set up at an investment of about Rs 3000 crore, and will have an annual capacity of 2.50 lakh units. The vehicles manufactured at these facilities will be supplied exclusively to Maruti Suzuki India (MSIL) and support MSIL's objective of reaching annual sales of two million units in the medium term.
Engineering and construction major L&T fell 2.51% to Rs 1,697.65. With reference to the news items titled, NMDC awards contracts to L&T, MEIL for steel plant, L&T clarified after trading hours that in its press release dated 5 January 2015 titled 'L&T Construction Wins Orders Valued Rs. 4006 Crores' it had mentioned that its Water & Renewable Energy Businesses had secured new orders worth Rs 729 crore. The NMDC order was part of those orders.
Separately, with reference to the news titled L&T Keen to Make Nuke Reactors with US Firms, L&T clarified after trading hours that it has always mentioned about its presence in nuclear business at various occasions. Its press release dated 16 January 2009 titled "L&T Signs MOU with Westinghouse for Modular Nuclear Power Reactors" emphasised its role. Westinghouse is a US-based company. The exchanges were informed before releasing this press release, L&T said.
Ranbaxy Laboratories lost 1.01% to Rs 699.75. The stock reversed intraday gain after announcing weak Q3 result during market hours today, 28 January 2015. The stock hit a high of Rs 724.95 and low of Rs 684. On a consolidated basis, Ranbaxy Laboratories reported net loss of Rs 1029.72 crore in Q3 December 2014, higher than net loss of Rs 158.94 crore in Q3 December 2013. Total income fell 10.23% to Rs 2629.52 crore in Q3 December 2014 over Q3 December 2013.
During Q3 December 2014, the company has reviewed the carrying amount of an asset representing Minimum Alternate Tax (MAT) credit of Rs 822.70 crore and has decided to provide for the same on grounds of conservatism, Ranbaxy Laboratories said.
Commenting on the business results for the quarter, Arun Sawhney, CEO & Managing Director, Ranbaxy, said, "Ranbaxy recorded good growth in India, Russia, APAC & LATAM during the quarter. However, overall sales were impacted by global currency depreciation in some markets. During the quarter, we introduced India's First New Chemical Entity (NCE), SynriamTM in Africa which is a new and convenient therapy option for patients suffering from malaria."
Commenting on the merger with Sun Pharma, Mr. Sawhney said, "The merger process is progressing well and we are working towards the completion of the pre-requisites."
Shares of Sun Pharmaceutical Industries fell 0.50% to Rs 909.30.
Telecom stocks fell after the government postponed until 4 March 2015, the auction of mobile phone airwaves which was earlier slated to start on 25 February 2015. Reliance Communications lost 2.87%. Tata Teleservices (Maharashtra) fell 1.49%. MTNL gained 3.88%.
The Department of Telecom (DoT) in a circular dated 27 January 2015 said that it has postponed until 4 March 2015 the auction of mobile phone airwaves which was earlier slated to start on 25 February 2015. The last date of submission of applications by mobile operators has also been moved to 16 February 2015 from 6 February 2015.
Meanwhile, as per reports, the Union Cabinet is likely to consider today, 28 January 2015, the reserve price for spectrum auction in the 2,100 MHz band, which is being used for providing 3G mobile services.
Bharti Airtel lost 4.99% at Rs 373.75. The stock was volatile. The stock hit a high of Rs 394.45 and a low of Rs 371.70. According to reports, Emirates Telecommunications Corp., the United Arab Emirates's largest phone company by market value, received offers from Vodacom Group and Bharti Airtel to acquire Emirates Telecommunications' controlling stake in Zanzibar Telecom. Zanzibar Telecom is a joint venture between Emirates Telecommunications Corp. which holds 65% stake, the Government of Zanzibar which owns 18%, and Meeco International of Tanzania which owns 17%.
Meanwhile, Bharti Airtel said before market hours today, 28 January 2015, that the company has commissioned Nokia Networks to expand its 4G presence to six new circles using Nokia Networks' radio network. The deal marks India's first FDD-LTE deployment on 1800 MHz that will witness the launch of super-fast mobile broadband in 6 circles. Nokia Networks, already a supplier of Bharti Airtel's TD-LTE network, will also deploy TD-LTE on the 2300 MHz in 2 other circles.
Idea Cellular fell 2.55% to Rs 166. The stock hit a high of Rs 172.60 and a low of Rs 163.20. The company's consolidated net profit rose 64% to Rs 767.06 crore on 21.87% increase in total income to Rs 8150.09 crore in Q3 December 2014 over Q3 December 2013. The company announced Q3 results after market hours yesterday, 27 January 2015.
As mobility market services expand, Indian Telecom business offers exciting growth opportunities in Mobile broadband & rural voice telephony. Brand Idea with growing consumer affinity, strong cash flows, expanding 2G & 3G network footprint and competitive spectrum profile, reaffirms its ability to overcome current short term uncertainties, emerge stronger and consolidate its market position to tap emerging telecom and mobile banking opportunities.
Havells India fell 2.82% to Rs 269.05. The stock hit a high of Rs 278.70 and a low of Rs 264.60 in intraday trade. On a consolidated basis, the company reported 74.45% drop in net profit to Rs 35 crore on 0.52% rise in revenue to Rs 2115 crore in Q3 December 2014 over Q3 December 2013. EBITDA (earnings before interest, taxes, depreciation and amortization) declined 25.88% to Rs 169 crore in Q3 December 2014 over Q3 December 2013. The result was announced during market hours today, 28 January 2015.
On a standalone basis, lower growth in cable and de-growth in traditional lighting (non LED) segments impacted Havells India's growth in current quarter. Depreciation increased in Q3 December 2014 due to change in calculation under new Companies Act 2013, which impacted growth of profit before tax. There was an increase in tax rate during the year due to reduction or expiry of available tax exemption in certain manufacturing plants of the company. Higher tax rate impacted growth of PAT.
Domestic cable business grew by 6% in value and 9% in volume. LED business grew by 63% in Q3 December 2014 as compared to Q3 December 2013. Havells has been very aggressive in launching new products in LED and thereby improving its positioning in the premium lighting segment, the company said. However, traditional lighting continues to be substantial part of lighting division and its de growth impacted overall growth of the segment, Havells said.
Shares of public sector oil marketing companies rose as crude oil dropped. HPCL (up 4.07%) and Indian Oil Corporation (up 2.28%), edged higher. Lower crude oil prices could reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
PSU OMCs review fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight.
BPCL rose 1.85% to Rs 705.35. The company announced after trading hours that it has set-up a Medium Term Note (MTN) Programme to facilitate the raising of funds on a regular basis from the international debt capital markets. The aggregate nominal amount of notes outstanding under the program will not exceed $2 billion or its equivalent in other currencies, BPCL said. Fitch Ratings has assigned a 'BBB-' rating and Moody's Investors Service has assigned a provisional (P) Baa3 rating to the MTN Programme.
Shares of private sector banks were mixed. ING Vysya Bank (down 2.74%), Kotak Mahindra Bank (down 2.65%), City Union Bank (down 0.31%), Axis Bank (down 0.29%) and Federal Bank (down 0.03%), edged lower. IndusInd Bank rose 0.5%.
ICICI Bank rose 0.04% to Rs 383.85. The stock hit a high of Rs 393.30 in intraday trade, which is a record high for the counter. The stock hit a low of Rs 381 in intraday trade.
HDFC Bank fell 1.48% to Rs 1,058.10. The stock hit a high of Rs 1,093 in intraday trade, which is a record high for the counter. The stock hit a low of Rs 1,055 in intraday trade.
Yes Bank rose 0.1% to Rs 883.35. The private sector bank after trading hours yesterday, 27 January 2015, announced that the bank has teamed up with the Overseas Private Investment Corporation (OPIC), the US government's development finance institution, by signing a memorandum of understanding to explore OPIC financing of up to $220 million to increase lending to micro, small and medium enterprises (MSMEs) in India. Specifically, $100 million of the financing would be used to support either Micro-SMEs or SMEs in underserved rural and urban markets, Yes Bank and OPIC said in a joint statement. US-based lender Wells Fargo Bank, N.A., will act as sponsor and co-lender to the project.
State Bank of India (SBI) rose 1.41% to Rs 334.45. The stock hit a 52-week high of Rs 335.90 in intraday trade. The state-run bank yesterday, 27 January 2015, announced that the Committee of Directors for Capital Raising (the Committee) has decided to take enabling approval from the shareholders for raising additional equity share capital up to Rs 15000 crore by way of public issue (i.e. follow-on-public issue) or rights issue or private placement, including qualified institutions placement (QIP)/global depository receipt (GDRs)/American depository receipt (ADRs) and/or any other mode(s) or a combination(s) thereof. The Committee also decided to seek the approval of the Government of India and the Reserve Bank of India for raising capital under Section 5(2) of the State Bank of India Act, 1955 and take all necessary steps in this regard.
IDFC fell 0.06% to Rs 172.85. The stock hit a high of Rs 177.80 and low of Rs 172.05 in intraday trade. IDFC during market hours today, 28 January 2015, said that the Reserve Bank of India (RBI) has granted no objection to the proposed scheme of arrangement between IDFC and IDFC Bank and their respective shareholders and creditors under Section 391 to 394 of Companies Act, 1956.
In 2014, IDFC along with Bandhan Financial Services Pvt. Ltd received a licence from RBI to start new banks. In October 2014, IDFC had said it will transfer its lending business including project finance, fixed income and treasury into a new step-down subsidiary called IDFC Bank.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 61.33, compared with its close of 61.41 during the previous trading session.
Brent crude oil futures dropped after an industry report showing a larger-than-expected rise in weekly US crude inventories bolstered speculation that a global glut will persist. Brent for March settlement was off 68 cents at $49.92 a barrel. The contract had gained $1.44 a barrel or 2.99% to settle at $49.60 a barrel during the previous trading session.
The Sensex had risen 2,224.22 points or 8.13% in eight trading sessions to 29,571.04 on Tuesday, 27 January 2015 from a recent low of 27,346.82 on 14 January 2015. The Sensex has gained 2,059.76 points or 7.49% in this month so far (till 28 January 2015). From a 52-week low of 19,963.12 on 4 February 2014, the Sensex has risen 9,596.06 points or 48.07%.
Finance Minister Arun Jaitley yesterday, 27 January 2015, said that there is huge curiosity and interest in India especially among domestic and foreign investors. The Finance Minister said that in order to make best use of this opportunity, India has to address two major concerns i.e. quick decision making & stability in policy matters and reforms in tax structure and administration. The Finance Minister made these comments in his speech at the Investiture Ceremony to honour the officers of Central Board of Excise and Customs (CBEC) for their excellent performance and International Customs Day function organised by CBEC. Jaitley said that that the government's revenue collection which was affected due to low manufacturing in the last 2-3 years is turning around and that the government hopes to meet its fiscal targets. Speaking on the occasion, Minister of State for Finance Jayant Sinha said that there is need for more transparency in tax administration and need to build data base for authentic and valid information.
European stocks edged lower today, 28 January 2015, on worries about Greece. Key benchmark indices in UK, Germany and France were off 0.30% to 0.56%.
Stocks and government bond prices dropped in Greece. The weakness in Greek assets comes after radical, far-left Syriza won Greece's general election on Sunday, 25 January 2015, stirring concerns that the new government could put an end to reforms agreed with international lenders as part of the country's bailout program.
Asian stocks were mixed today, 28 January 2015. Key benchmark indices in China, Taiwan and Indonesia were off 0.11% to 1.41%. Key benchmark indices in Singapore, Hong Kong, Japan and South Korea were up 0.15% to 0.47%.
Trading in US index futures indicated that the Dow could fall 50 points at the opening bell today, 28 January 2015. US stock markets fell heavily yesterday, 27 January 2015 following a string of disappointing financial results from big bellwether companies, including Procter & Gamble, Caterpillar, Microsoft and Pfizer.
In economic data, US durable goods, which economists treat as a proxy for business investment, dropped 3.4% in December 2014 following a 2.1% fall in November 2014.
A two-day meeting of the Federal Open Market Committee (FOMC) concludes today, 28 January 2015. In its last meet in December 2014, FOMC had based on its assessment, judged that it can be patient in beginning to normalize the stance of monetary policy.
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