Key benchmark indices drifted lower in early trade on negative Asian stocks. The barometer index, the S&P BSE Sensex was currently down 86.45 points or 0.31% at 28,095.69. The market breadth indicating the overall health of the market was positive.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 226.88 crore yesterday, 21 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 146.32 crore yesterday, 21 July 2015, as per provisional data.
At 9:27 IST, the S&P BSE Sensex was down 86.45 points or 0.31% at 28,095.69. The index lost 111.23 points at the day's low of 28,070.91 in early trade. The index fell 22.72 points at the day's high of 28,159.42 in early trade.
The CNX Nifty was down 22.65 points or 0.27% at 8,506.80. The index hit a high of 8,524.70 in intraday trade. The index hit a low of 8,498.65 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 772 shares gained and 515 shares fell. A total of 46 shares were unchanged.
The BSE Mid-Cap index was down 0.41 points at 11,090.18. The fall in the index was lower than Sensex's decline in percentage terms. The BSE Small-Cap index was up 10.22 points or 0.09% at 11,587.04, outperforming the Sensex.
The total turnover on BSE amounted to Rs 121 crore by 09:30 IST.
Cairn India fell 0.92%. Cairn India's consolidated net profit fell 23.59% to Rs 834.98 crore on 36.18% decline in total income to Rs 3190.66 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 21 July 2015.
Average price realisation for Cairn India dropped 42% to $56/boe in Q1 June 2015 over Q1 June 2014.
Earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter was Rs 1302 crore with healthy EBITDA margin of 50%. EBITDA for the quarter is higher by 79% compared to Q4 March 2015 which saw an exploration cost write-off of Rs 552 crore. EBITDA margins were boosted by lower operating costs which for Rajasthan waterflood case have reduced by 10% from the previous fiscal year average of $5.8 to $5.2/boe in Q1 June 2015 as a result of reduction in well and facility maintenance costs and MG&A. Along with field opex, corporate MGA too has been brought down by 14% as a result of manpower optimisation and decrease in overheads on account of various cost optimisation initiatives currently underway.
In its outlook for the year ending 31 March 2016 (FY 2016), the company said it continues to remain committed to creating long term shareholder value. Despite low oil prices and substantial cut in capex, the company will at a minimum maintain Rajasthan production in current year at FY 2015 levels. Planned capital investment is for a net capex of $500 million; 45% in Core MBA fields, 40% in Growth projects of Barmer Hill, Satellite Fields & Gas and 15% in exploration. The company retains the flexibility to invest balance $1.4 billion as oil prices improve and costs bottom out and also aims to have healthy cash flows post capex so as to retain the ability to pay dividends subject to board.
Idea Cellular declined 0.99%. Idea Cellular's net profit rose 27.8% to Rs 821.23 crore on 18.04% rise in total income to Rs 8868.61 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 21 July 2015.
Idea Cellular's consolidated net profit rose 27.82% to Rs 930.83 crore on 17.45% rise in total income to Rs 8920.78 crore in Q1 June 2015 over Q1 June 2014.
Cipla rose 1.19%. Cipla announced after market hours yesterday, 21 July 2015, that the company's board has approved an investment by Fidelity Growth Partners India and US-based Fidelity Biosciences, through FIL Capital Investments (Mauritius) II Limited or its affiliates, in its recently launched consumer healthcare business which is under incorporation.
The investment is subject to execution of definitive agreements, and regulatory approvals. Through Cipla Consumer Healthcare, the company has entered the rapidly growing over-the-counter (OTC) healthcare market in India. The vision is to improve the lives of Indian consumers, building on Cipla's strengths in bringing good science to good medicine, while also leveraging its market outreach and equity with the Indian healthcare system.
The idea is to leverage Cipla R&D and innovation platform to provide innovative solutions to meet the unmet needs of the Indian consumer. The business will focus on opportunities arising from the shift from illness to wellness and self-care.
Meanwhile, the government is looking forward to push through key bills and get approval for the recently-promulgated ordinances in the monsoon session of the Parliament which began yesterday, 21 July 2015. The contentious Land Acquisition Bill remains stuck in Parliament due to stiff opposition. Meanwhile, a Rajya Sabha Select Committee has reportedly adopted a report endorsing majority provisions of the Goods and Services Tax (GST) Bill after the Centre agreed to compensate states for revenue loss for 5 years even as Congress filed a dissent note. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
Asian stocks edged lower today, 22 July 2015 amid disappointing results from technology and industrial heavyweights in the US yesterday, 21 July 2015. Key benchmark indices in Singapore, China, Taiwan, Hong Kong, Japan, Indonesia and South Korea fell by 0.11% to 1.16%.
Chinese business sentiment fell sharply in July, suggesting that recent dramatic falls in company share prices had severely dented optimism. The MNI China Business Indicator fell 8.8% to 48.8 in July, below the 50 score which marks optimism. The reading matches the April level, which was the lowest since January 2009. In June the index had jumped 7.6% in June to 53.5. MNI, a part of Deutsche Bse Group, surveys 200 companies listed on the Shanghai and Shenzhen stock exchanges.
US stocks dropped yesterday, 21 July 2015 on weak earnings from bellwethers International Business Machines Corp. (IBM) and United Technologies Corp.
In Europe, the Greek government reportedly yesterday, 21 July 2015 said that it wants to see a final deal on its international bailout hammered out by 20 August 2015, as it presented parliament with more draft legislation on the cash-for-reforms agreement.
Lawmakers are due to vote on a second batch of reforms tomorrow, 23 July 2015 in a fresh test of Prime Minister Alexis Tsipras' authority, after he suffered a major rebellion in his radical-left party Syriza during a vote on a first tranche of bailout measures last week, reports indicated.
After parliament has voted on the second bill - which must pass if Greece is to receive the bailout worth up to 86 billion euros ($93 billion) over three years - the government will immediately resume negotiations with the (lender) institutions, EU, ECB and IMF, which should take until 20 August 2015 at the latest, reports added.
Meanwhile, Standard & Poor's yesterday, 21 July 2015 upgraded Greece's sovereign credit rating by two notches and revised its outlook to stable from negative, citing euro zone countries' initial agreement to start negotiations with Athens on a third bailout.
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