Key benchmark indices drifted lower in early trade on negative Asian stocks. At 9:21 IST, the Sensex was down 72.47 points or 0.28% at 25,807.91. The Nifty 50 index was currently down 21.30 points or 0.27% at 7,890.75.
The market breadth indicating the overall health of the market was negative. On BSE, 528 shares declined and 472 shares gained. A total of 55 shares were unchanged. The BSE Mid-Cap index was currently off 0.03%. The BSE Small-Cap index was currently off 0.02%. The fall in both these indices was lower than the Sensex's decline in percentage terms.
In overseas markets, Asian markets were trading lower following overnight losses in US stocks. US stocks closed lower yesterday, 21 April 2016, as big declines in defensive sectors such as consumer staples, telecoms and utilities weighed on the main indexes. In Europe, the European Central Bank (ECB) yesterday, 21 April 2016 left official interest rates unchanged, as expected. The ECB left the interest rate on its main refinancing operations at 0%, the interest rate on its marginal lending facility at 0.25%, and the interest rate on its deposit facility at minus 0.4%. The announcement came after close of Indian market hours yesterday, 21 April 2016.
Index heavyweight Reliance Industries (RIL) rose 0.24% ahead of its Q4 March 2016 earnings today, 22 April 2016.
HDFC Bank shed 0.3% ahead of its Q4 March 2016 earnings today, 22 April 2016.
Cairn India lost 1% ahead of its Q4 March 2016 earnings today, 22 April 2016.
Bharti Infratel rose 0.46% after company said that its board of directors will consider the recommendations for distribution of profits till the year ended 31 March 2016 (FY 2016), by way of dividend or buyback of a portion of fully paid up equity shares or a combination thereof, in its meeting to be held on 26 April 2016, when the company announces its FY 2016 results. The announcement was made before market hours today, 22 April 2016.
Hindustan Zinc lost 2.41%. The company's net profit rose 8% to Rs 2149 crore on 25% decline in revenue to Rs 3070 crore in Q4 March 2016 over Q4 March 2015. The result was announced at the fag end of the trading session yesterday, 21 April 2016. The decrease in revenue was on account of lower zinc volumes and LME prices, partly offset by higher volumes of lead & silver and rupee depreciation. Net profit rose helped by higher other income due to mark to market gains on investment income. Additionally, the provision for tax during the quarter was negative largely on account of substantial liquidation of investments at year end for payment of special dividend; the corresponding realised profits were set off by carried forward tax losses, significantly lowering the tax for the year.
The zinc metal cost of production per metric tonne (MT) before royalty stood at Rs 58044 ($853) in Q4 March 2016, higher by 4% from a year ago in dollar terms and 14% in rupee terms. The increase was due to lower production volumes from Rampura Agucha open cast mine in accordance with mine plan resulting in lower average grades. This was further accentuated by higher mine development, partly offset by lower coal & commodity prices. Looking at the recent commodity price downturn, the company has re-negotiated several contracts to optimize costs and expect this to translate into significant savings in year ending 31 March 2017 (FY 2017). The above revenue and cost of production resulted in a 35% decline in earnings before interest, taxes, depreciation and amortization (EBITDA) to Rs 1,296 crore in Q4 March 2016 over Q4 March 2015.
The company expects to reach the 1.2 million tonnes per annum (mtpa) mined metal production capacity within the next three years.
Power Finance Corporation (PFC) rose 0.94%. The company announced that Odisha Generation Phase-II Transmission, established for development of common transmission system for phase-II generation projects in Odisha, has been transferred to Sterlite Grid 3, the successful bidder. Odisha Generation Phase-II Transmission is a wholly owned subsidiary of PFC Consulting, which in turn is a wholly owned subsidiary of Power Finance Corporation. The announcement was made after market hours yesterday, 21 April 2016.
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