The market is likely to open lower on first trading day of the week today, 16 June 2014 as Asian stocks edged lower amid an escalation of violence in Iraq. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 23.50 points at the opening bell. On the macro front, the government will announce data on inflation based on the wholesale price index (WPI) for May 2014 at 12:00 noon today, 16 June 2014. Asian stocks edged lower on Monday, 16 June 2014 amid an escalation of violence in Iraq.
US-based private equity firm Bain Capital on Friday, 13 June 2014, sold 56.18 lakh shares of Hero MotoCorp via bulk deals on BSE and NSE. Bain Capital through its arm BC India Private Investors II sold 24.09 lakh shares of Hero MotoCorp at an average price of Rs 2,636.15 per share on BSE. BC India Private Investors II sold 32.08 lakh shares of the two-wheeler major at an average price of Rs 2,636.76 per share on NSE. Goldman Sachs Singapore Pte bought 10.45 lakh shares of Hero MotoCorp at an average price of Rs 2,635.59 per share on NSE on that day, the bulk deals data showed.
Tata Consultancy Services (TCS) on Friday, 13 June 2014, said that the appreciation of the rupee against the dollar will adversely impact the company's EBIT margin by about 100 basis points in Q1 June 2014. This is based on the rupee movement so far during the quarter and these estimates could change depending on the rupee movement in June. TCS also said that annual salary increments will adversely impact profit margin in Q1 June 2014 which is in line with and proportionate to impact seen in earlier years. TCS also said that other income in Q1 June 2014 will be in line with expectations.
TCS also said that there will be one-time additional depreciation charge of about 2% of fixed assets in financial results as per International Financial Reporting Standards (IFRS) due to a change in depreciation policy. There will be a write back of depreciation of 4% to 5% of fixed assets in consolidated results as per Indian accounting standards due to the change in depreciation policy.
TCS said that there is no change in revenue outlook issued at conference call held after announcing Q4 March 2014 results in April 2014. The TCS management had at that time said that the company was upbeat that the next 12 months will bring many more opportunities for growth across multiple industries and markets.
The Reserve Bank of India on Friday, 13 June 2014, notified that foreign institutional investors (FIIs), through primary market and stock exchanges, can now purchase up to 49% of the paid up capital of Idea Cellular under the portfolio investment scheme (PIS). The FII investment ceiling in the company's shares has been raised from earlier 24% after the company's board of director and shareholders approved the proposal for raising FII investment ceiling, the RBI said. Total holding of FIIs in Idea Cellular stood at 21.57% as per the shareholding pattern as on 11 June 2014.
DLF after market hours on Friday, 13 June 2014 said that DLF Promenad, a subsidiary of the company has successfully placed the commercial mortgage backed security (CMBS) issuance of Rs 375 crore, with a competitive coupon rate of 10.90% per annum and legal maturity of 7.5 years. DLF Promenade owns and operates approximately 4.5 lakh sq. ft luxury mall in New Delhi. The CMBS issue is rated CRISIL AA (SO). This is a 2nd issuance from DLF Group. Commenting on the issuance, Mr. Saurabh Chawla Executive Director - Finance said- This completes the Phase I of such issuances. We shall continue to explore more such transactions in the future.
Future Lifestyle Fashions after market hours on Friday, 13 June 2014 said that duly authorized Committee of Directors, at its meeting held on 13 June 2014, has made allotment of 1.55 crore equity shares of Rs 2 each at a premium of Rs 78.50 per share to PI Opportunities Fund-I, a SEBI registered venture capital fund, on preferential basis.
JK Cement said after market hours on Friday, 13 June 2014, that the board of directors of the company at its meeting held on 10 June 2014, has decided to raise long term funds by way of issue of securities and/or non convertible debentures with warrants on preferential allotment basis, qualified institutional placement (QIP) basis or such other form as may be permissible under law for an amount upto Rs 300 crore with a green shoe option subject to shareholders' approval sought in the ensuing Annual General Meeting of the company convened on 26 July 2014.
Asian Paints turns ex-dividend today, 16 June 2014, for final dividend of Rs 4.20 per share for the year ended 31 March 2014 (FY 2014).
IndusInd Bank turns ex-dividend today, 16 June 2014, for dividend of Rs 3.50 per share for the year ended 31 March 2014 (FY 2014).
Torrent Pharmaceuticals turns ex-dividend today, 16 June 2014, for final dividend of Rs 5 per share for the year ended 31 March 2014 (FY 2014).
DIC India turns ex-dividend today, 16 June 2014, for dividend of Rs 4 per share for the year ended 31 December 2013 (FY 2013).
On the macro front, the rate of inflation based on the wholesale price index (WPI) is seen accelerating to 5.4% in May 2014, from 5.2% in April 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will announce data on inflation based on the wholesale price index (WPI) for May 2014 at 12:00 noon today, 16 June 2014. WPI inflation eased to 5.2% in April 2014, from 5.7% in March 2014, helped by a decline in fuel prices.
Key benchmark indices dropped on Friday, 13 June 2014 as oil rose amid escalating violence in Iraq. The S&P BSE Sensex lost 348.04 points or 1.36% to settle at 25,228.17, its lowest closing level since 5 June 2014.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1099.92 crore on Friday, 13 June 2014, as per provisional data from the stock exchanges.
Asian stocks edged lower on Monday, 16 June 2014 amid an escalation of violence in Iraq. Key benchmark indices in Taiwan, Hong Kong, Japan, Indonesia and South Korea fell by 0.01% to 0.62%. Key benchmark indices in China and Singapore rose by 0.04% to 0.11%.
US stock rose modestly on Friday, 13 June 2014 but trading was choppy with news out of Iraq resulting in price swings in late trade.
In economic news, the University of Michigan/Thomson Reuters sentiment gauge fell in June to 81.2 the lowest level in three months. Separately, government data ahead of the open showed wholesale prices for May fell unexpectedly.
Geopolitical concerns shifted from the crisis in Ukraine to the worsening situation in Iraq. President Barack Obama said he'll consider over the next several days options to help Iraqi forces turn back militants sweeping across the country. The insurgency highlights the risks to the world's oil supply.
On the global front, the Federal Open Market Committee (FOMC) undertakes monetary policy review at a two-day meeting that begins tomorrow, 17 June 2014. The FOMC after a monetary policy review on 30 April 2014 reduced its monthly debt purchases to $45 billion, its fourth straight $10 billion cut, and said further reductions are likely in "measured steps" if the economy continues to improve. The Fed also said at that time that it will keep the benchmark interest-rate target at almost zero for a "considerable time" after its bond-buying program ends.
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