Losses of index heavyweights ITC, Infosys, Reliance Industries outweighed gains for stocks of public sector banks and index heavyweight HDFC with the two key benchmark indices registering small losses. The barometer index, the S&P BSE Sensex, lost 41.79 points or 0.16% at 26,683.81, as per the provisional closing data. The Nifty 50 index fell 18.40 points or 0.22% at 8,160.10, as per the provisional closing data.
The Sensex lost 164.02 points or 0.61% at the day's low of 26,561.58 in mid-afternoon trade, its lowest level since 27 May 2016. The barometer index rose 111.60 points or 0.41% at the day's high of 26,837.20 in early trade, its highest level since 30 October 2015. The Nifty lost 44.20 points or 0.54% at the day's low of 8,134.30 in mid-afternoon trade, its lowest level since 27 May 2016. The index rose 35.10 points or 0.42% at the day's high of 8,213.60 in early trade, its highest level since 27 October 2015.
In overseas stock markets, car makers led losses for European stocks after German car maker Volkswagen reported a higher-than-expected decline in net profit for Q1 March 2016. In Asia, Chinese stocks edged higher on speculation that MSCI Inc., the global index provider, will soon add mainland-traded Chinese stocks, so-called A-shares, in its Emerging Markets Index. In mainland China, the Shanghai Composite index settled 3.34% higher. In Hong Kong, the Hang Seng index settled 0.9% higher. MSCI's inclusion of A-shares into the index will channel billions in passive asset-management money into China. On 27 May 2016, the Shanghai and Shenzhen stock exchanges announced rules on share trading suspensions, removing one potential roadblock for inclusion of Chinese A shares or yuan-denominated shares in MSCI Inc.'s global benchmark indexes. MSCI said in March a decision to include 5 percent of yuan-denominated shares in its index will depend on regulators implementing changes so that widespread halts can't happen again. MSCI will reportedly take a call in mid-June 2016 whether to add Chinese shares to its global benchmark indexes.
Japanese shares edged higher after the latest data showed industrial output in April rose for the second month. The Nikkei 225 Average closed 0.98% higher.
Closer home, the market breadth indicating the overall health of the market was weak. On BSE, 996 shares rose and 1,568 shares declined. A total of 169 shares were unchanged. The BSE Mid-Cap index was provisionally down 0.18%. The decline in this index was higher than the Sensex's decline in percentage terms. The BSE Small-Cap index was provisionally down 0.14%. The decline in this index was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3854 crore, higher than turnover of Rs 2572.88 crore registered during the previous trading session.
Index heavyweight and cigarette major ITC declined 1.18% at Rs 352.40. The stock hit a high of Rs 359.40 and a low of Rs 350 in intraday trade.
IT stocks declined. TCS (down 2.33%), HCL Technologies (down 1.24%), Wipro (down 0.69%), Tech Mahindra (down 0.64%), Oracle Financial Services Software (down 1.25%) and Persistent Systems (down 0.45%) edged lower.
Index heavyweight and software major Infosys was down 0.65% at Rs 1,255.25. The stock hit a high of Rs 1,268 and a low of Rs 1,239 in intraday trade.
Sun Pharmaceutical Industries (Sun Pharma) slumped 6.22% to Rs 762 after the company's Managing Director Dilip Shanghvi reportedly said at a post-result conference call that there would be a short-term adverse impact on the company's profitability as it focuses on building specialty business in the US. Another trigger for the fall in the counter was the company's guidance of a lower-than-expected 8-10% growth in sales for the current financial year (FY 2017). Shanghvi said that the annual revenue growth guidance takes into account continued impact of remediation measures at Halol plant and gains from sale of anti leukemia drug Gleevec for which the company has 180-day exclusivity. Sun Pharma expects its newly acquired branded drug business in Japan to contribute to revenue from second half of FY 2017.
Sun Pharma's consolidated net profit rose 92.71% to Rs 1713.69 crore on 16.82% growth in total income to Rs 7599.21 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 30 May 2016.
Shanghvi said that FY 2016 was a year of consolidation for Sun Pharma. While the company has accrued targeted synergies from the Ranbaxy acquistion, it has also made commensurate investments in building the specialty business in the US, Shanghvi said. These strategic investments will help Sun Pharma drive the sustainable growth of its business, he added.
Sun Pharma's board of directors has convened a meeting on 23 June 2016 to evaluate a proposal for buyback of equity shares of the company.
Aurobindo Pharma rose 3.63% at Rs 781.80 after consolidated net profit rose 39.4% to Rs 563 crore on 18.5% growth in total operating income to Rs 3747 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 30 May 2016. The company's earnings before interest, taxation, depreciation and amortization (EBITDA) before forex rose 34.5% to Rs 882 crore in Q4 March 2016 over Q4 March 2015. EBITDA margin edged higher to 23.5% in Q4 March 2016, from 20.7% in Q4 March 2015.
Aurobindo Pharma's Managing Director N. Govindarajan said that the company continues its growth journey with higher number of ANDA approvals, new launches and better integration of acquired businesses. With growth coming from all business verticals, focus remains on new launches in US and improved cost efficiencies in EU, he said. In addition, Aurobindo continues to work on new businesses and differentiated technology platforms which will drive its future growth, he added.
Tata Motors jumped 8.24% at Rs 455.20 after consolidated net profit jumped 201.6% to Rs 5177.06 crore on 18.97% growth in total income to Rs 80933.04 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 30 May 2016. Tata Motors said that the revenue growth in Q4 March 2016 reflects strong sales in all the regions for Jaguar Land Rover business namely in UK, Europe, North America, China and other overseas markets. The revenue also rose on account of continued robust volume growth in medium & heavy commercial vehicles (M&HCV) segment and start of volume growth in the light commercial vehicles (LCV) segment in standalone business.
Tata Motors said that consolidated profit before tax (before exceptional item) jumped 103.17% to Rs 5957 crore in Q4 March 2016 over Q4 March 2015 due to stronger operating performance in both standalone as well as Jaguar Land Rover business and lower net finance expenses partly offset by higher depreciation and amortization expenses, adverse revaluation of Euro payables and one time reserves and charges of Rs 1580 crore (166 million) for the industry-wide recall in the United States of potentially faulty airbags supplied by Takata, doubtful debts and previously capitalized investment in the Jaguar Land Rover business.
Further, exceptional items for Q4 March 2016 includes further insurance and other recoveries of Rs 555 crore on account of the vehicles damaged at Tianjin Port explosion in Jaguar Land Rover business.
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