Key benchmark indices could decline today, 20 April 2015, amid weak global cues. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 5.50 points at the opening bell.
Foreign portfolio investors sold shares worth a net Rs 675.71 crore on Friday, 17 April 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 72.52 crore on Friday, 17 April 2015, as per provisional data released by the stock exchanges.
Among corporate announcements, Hindustan Zinc announces Q4 results today, 20 April 2015.
On consolidated basis, Reliance Industries (RIL) net profit rose 8.5% to Rs 6381 crore on 33.3% drop in turnover to Rs 70863 crore in Q4 March 2015 over Q4 March 2014. The result was announced after market hours on Friday, 17 April 2015. The net profit of Rs 6381 crore in Q4 March 2015 was a record quarterly net profit for RIL on consolidated basis.
RIL attributed the sharp fall in turnover in Q4 March 2015 to a sharp fall in benchmark crude oil price. RIL's gross refining margins (GRM) edged up to $10.1 per barrel in Q4 March 2015, from $9.3 per barrel in Q4 March 2014. On sequential basis, the GRM rose sharply from $7.3 a barrel in Q3 December 2014. RIL's GRM edged up to $8.6 a barrel in the year ended 31 March 2015 (FY 2015) from $8.1 a barrel in the year ended 31 March 2014 (FY 2014).
RIL said in a presentation to investors after the company's Q4 March 2015 results that the company plans to restart its entire network of 1,400 retail fuel pumps during the year ending 31 March 2016 (FY 2016). Over 320 fuel outlets have already become operational, RIL said.
RIL's non-operational income rose 3.57% to Rs 2172 crore in Q4 March 2015 over Q4 March 2014. RIL said the increase in non-operational income was primarily on account of higher profit on sale of investments.
With regard to the company's US shale gas business, RIL said that the challenging market outlook would most likely curtail near-term growth for the shale gas business. Given the current weak commodity price environment, the company is focusing on capital preservation by moderating activity levels, reducing service costs and improving efficiencies in the shale gas business, RIL said. Ensuring profitable development and retaining optionality through high grading acreages and improving netbacks will be the key challenges going forward, RIL said. RIL said that the long term outlook for its US shale gas business remains promising.
RIL's total capital expenditure stood at a little over Rs 1 lakh crore in FY 2015, including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej and Hazira, Broad band Access and US shale gas projects.
NMDC on Saturday, 18 April 2015 announced reduction in the prices of lump iron ore and fines with effect from 18 April 2015. The price of lump iron ore was reduced to Rs 3,050/WMT from Rs 3,250/WMT in March 2015. The price of fines was slashed to Rs 1,960/WMT from Rs 2,460/WMT in March 2015.
Piramal Enterprises (PEL) after market hours on Friday, 17 April 2015 said that it has agreed to acquire a majority stake in Health SuperHiway (HealthHiway), a healthcare analytics company, over the next 12 months. This investment, which will come in two tranches, continues PEL's development of a global healthcare information business, which it began through its acquisition of Decision Resources Group in 2012, and its subsequent acquisitions of Abacus International and Relay Technology Management, PEL said.
PEL has invested Rs 60 lakh in cash which will make it a minority shareholder in HealthHiway. PEL will be investing up to an additional Rs 44.2 crore in the next 33 months, if HealthHiway achieves a set of specific growth milestones that are based on acquisition of hospital data partnerships, PEL said. Upon the second tranche of investment, PEL will control a majority stake in the business, become the promoter, and assume operational control, PEL said in a statement. The transaction is not subject to any regulatory approvals. No promoter/promoter group/group companies of PEL has any interest in HealthHiway, PEL said in a statement.
NHPC announced after market hours on Friday, 17 April 2015, that Ministry of Environment, Forests & Climate Change vide its letter dated 15 April 2015 has accorded in-principle approval for diversion of 4577.84 hectares of forest land in favour of NHPC for construction of Dibang Multipurpose Project (3000 megawatts (MW)) on Dibang River in Lower Dibang valley district of Arunachal Pradesh.
LIC Housing Finance's net profit rose 2.2% to Rs 378.18 crore on 15.44% growth in total income to Rs 2860.59 crore in Q4 March 2015 over Q4 March 2014. The result was announced on Saturday, 18 April 2015.
LIC Housing Finance's net profit rose 5.23% to Rs 1386.18 crore on 15.68% growth in total income to Rs 10798.65 crore in the year ended 31 March 2015 (FY 2015) over the year ended 31 March 2014 (FY 2014).
On consolidated basis, LIC Housing Finance's net profit rose 5.87% to Rs 1395.60 crore on 15.53% growth in total income to Rs 10828.88 crore in FY 2015 over FY 2014.
Data released by the government after trading hours Friday, 17 April 2015, showed that India's merchandise exports (including re-exports) dipped 21.06% to $23951.16 million in March 2015 over March 2014. Imports fell 13.44% to $35744.68 million in March 2015 over March 2014. Oil imports declined 52.68% to $7413.30 million in March 2015 over March 2014. Non-oil imports rose 10.55% to $28331.38 million in March 2015 over March 2014. The trade deficit for fiscal year 2014-15 was estimated at $137014.46 million, which was higher than trade deficit of $135797.90 million for fiscal year 2013-14.
Disappointing Q4 results from IT major TCS triggered losses for Indian stocks on the last trading session of the week on Friday, 17 April 2015. The S&P BSE Sensex fell 223.94 points or 0.78% to settle at 28,442.10, its lowest closing level since 1 April 2015.
Asian shares were trading lower, following a lower finish on Wall Street on Friday, 17 April 2015. The negative sentiment was triggered by a crackdown on margin lending in China. Key benchmark indices in Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan were down by 0.03% to 0.42%.
However, China's Shanghai Composite was up 0.64% after the central bank cut banks' reserve requirements to combat slowing economic growth, helping to ease fears that regulators were set to crack down on riskier trading after a blistering rally to seven-year highs. The PBOC cut the reserve requirement ratio (RRR) for all banks by 100 basis points to 18.5%, effective 20 April 2015.
Meanwhile, the China Securities Regulatory Commission (CSRC) after trading hours in China on Friday, 17 April 2015, tightened rules on margin lending while the country's two stock exchanges said they would make it easier to bet that stocks will fall in price in an effort to temper the country's soaring stock markets. The China Securities Regulatory Commission on Friday, 17 April 2015, banned a type of financing called umbrella trusts that provided cash for margin trading and placed limits on margin trading for highly risky small stocks that trade over the counter, rather than on exchanges. The regulator said customer accounts needed to be better classified, potentially a warning that limits will be placed on the type of trading permitted for small investors. The CSRC also said it was considering allowing more cash to flow between Hong Kong and Shanghai, where a trading link has been a big driver of the rally.
Meanwhile, the Shanghai and Shenzhen stock exchanges on Friday, 17 April 2015, issued rules that would make it easier for investors to short, or bet against, stocks. To short a stock, an investor borrows shares and sells them, hoping the price will fall and so allow them to repay with cheaper shares. It has been difficult to short stocks in China even as valuations soared because it has been virtually impossible to borrow shares.
US stocks slumped on Friday, 17 April 2015, as investors shunned risk amid new trading regulations in China, renewed worries about Greece running out of money, and tepid US corporate earnings. Also contributing to market weakness were concerns about the timing of an interest-rate increase by the US central bank. The year-over-year core consumer-price index was better than expected, according to data released by the Labor Department on Friday.
US consumer prices rose in March as the cost of gasoline and shelter increased. The Labor Department said on Friday, 17 April 2015, its Consumer Price Index increased 0.2% last month after a similar gain in February.
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