Losses for banking and metal sector stocks along with index heavyweights L&T and Reliance Industries (RIL) pushed key benchmark indices lower. The barometer index, the S&P BSE Sensex, fell 50.76 points or 0.2% to 24803.35, as per the provisional closing data. The losses for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty fell 25.60 points or 0.34% to 7,536.80, as per the provisional closing data. The Sensex fell below the psychological 25,000 level soon after piercing that mark in afternoon trade. The broad market depicted weakness.
Index heavyweight and IT major Infosys jumped after the company raised its revenue growth guidance for the year ending 31 March 2016 (FY 2016) at the time of announcement of its third quarter results during market hours.
The Sensex and the Nifty, both, staged a strong rebound from an initial steep slide triggered by a fresh setback in global stocks. The Sensex rose 164.35 points or 0.66% at the day's high of 25,018.46 in afternoon trade, its highest level since 8 January 2016. The barometer index fell 380.89 points or 1.53% at the day's low of 24,473.22 in early trade. The Nifty rose 42.40 points or 0.56% at the day's high of 7,604.80 in afternoon trade, its highest level since 11 January 2016. The index fell 118.60 points or 1.56% at the day's low of 7,443.80 in early trade.
The total turnover on BSE amounted to Rs 3070 crore, lower than turnover of Rs 4506.31 crore registered during the previous trading session.
In overseas stock markets, European shares declined after oil price volatility helped drive Wall Street to its biggest drop in three months overnight. Asian stocks edged lower, with investor sentiment hit adversely due to a selloff in US stocks overnight. US stocks slumped yesterday, 13 January 2016, as a rout in oil prices heightened worries about the global economy.
Closer home, the broad market depicted weakness. There were more than two losers against every gainer on BSE. 1,861 shares fell and 823 shares rose. A total of 175 shares were unchanged. The BSE Mid-Cap index was provisionally down 1%. The BSE Small-Cap index was provisionally down 1.27%. The decline in both these indices was higher than the Sensex's decline in percentage terms.
Index heavyweight and IT major Infosys jumped after the company raised its revenue growth guidance for the year ending 31 March 2016 (FY 2016) at the time of announcement of its third quarter results during market hours today, 14 January 2016. The stock rose 5.05% at Rs 1,137. The stock was volatile. The stock hit a high of Rs 1,155 and a low of Rs 1,054.95 in intraday trade. The counter clocked volumes of 17.42 lakh shares, compared with an average volume of 1.45 lakh shares in the past one quarter.
Infosys' consolidated net profit as per International Financial Reporting Standards (IFRS) rose 2% to Rs 3465 crore on 1.7% increase in revenue to Rs 15902 crore in Q3 December 2015 over Q2 September 2015.
Infosys now expects its revenue to grow 8.9%-9.3% in dollar terms for the year ending 31 March 2016 (FY 2016). At the time of announcement of Q2 September 2015 results, Infosys had forecast 6.4%-8.4% growth in the company's revenue in dollar terms for FY 2016. The revenue growth guidance in constant currency terms has been raised to 12.8%-13.2% from previous 10%-12%.
Thanks to weakness of the rupee against the dollar, Infosys has raised revenue growth guidance in rupee terms. Infosys now expects its revenue to grow 16.2%-16.6% in rupee terms for the year ending 31 March 2016 (FY 2016). At the time of announcement of Q2 September 2015 results, Infosys had forecast 13.1%-15.1% growth in the company's revenue in rupee terms for FY 2016. The revised guidance is based on rupee-dollar exchange rate of 66.16.
Index heavyweight and engineering & construction major L&T fell 1.88% at Rs 1,136. The stock hit a high of Rs 1,158.05 and a low of Rs 1,111.15 in intraday trade. The company will announce Q3 December 2015 results on 29 January 2016.
Index heavyweight Reliance Industries (RIL) fell 1.47% at Rs 1,061.50. The stock hit a high of Rs 1,081 and a low of Rs 1,052.40 in intraday trade.
Power Grid Corporation of India edged higher after the company's board of directors accorded approval to investment proposals aggregating Rs 2510.34 crore for various transmission projects. The stock 1.03% at Rs 142.50. The company after market hours yesterday, 13 January 2016, announced that the board of directors of the company at its meeting held on 12 January 2016 accorded approval to investment proposals aggregating Rs 2510.34 crore for various transmission projects, including Rs 1455.47 crore for strengthening its network in the southern region.
Metal shares declined amid continued worries about China's stalling economy. Jindal Steel & Power (down 7.43%), Hindalco Industries (down 2.99%), Bhushan Steel (down 2.56%), Vedanta (down 2.16%), Steel Authority of India (down 1.99%), Hindustan Copper (down 1.3%), National Aluminium Company (down 0.81%), NMDC (down 0.74%) and JSW Steel (down 0.33%) edged lower. Hindustan Zinc rose 0.07%. China is the world's largest consumer of steel, copper and aluminum.
Tata Steel fell after the company announced after market hours yesterday, 13 January 2016, that the sharp fall in international steel prices has triggered a downgrade of the company's corporate credit rating by Standard and Poor (S&P) by 1 notch. The stock fell 3.14% at Rs 239.25.
On the macro front, the latest data showed that inflation based on the wholesale price index (WPI) remained in negative zone last month. WPI inflation stood at minus 0.73% in December 2015, compared with a reading of negative 1.99% in November 2015. Meanwhile, the headline WPI for October 2015 was revised to a reading of minus 3.7% from 3.81% reported earlier.
Powered by Capital Market - Live News
