Key benchmark indices slipped into the red after swinging between gains and losses near the flat line in morning trade. Weakness in Asian stocks weighed on sentiment adversely. The barometer index, the S&P BSE Sensex was down 24.54 points or 0.11%, up about 20 points from the day's low and off close to 60 points from the day's high. The market breadth, indicating the overall health of the market, was strong.
Pharma stocks gained as rupee edged lower against the dollar with Lupin hitting record high.
The market edged lower amid initial volatility. The Sensex hit one-week low. The 50-unit CNX Nifty hit lowest level in 1-1/2 weeks. It slipped into the red after swing between gains and losses near the flat line in morning trade.
Asian stocks fell on Monday as investors weighed company earnings amid prospects for additional sanctions against Russia over the Ukraine crisis.
Foreign institutional investors (FIIs) bought shares worth a net Rs 295.01 crore on Friday, 25 April 2014, as per provisional data from the stock exchanges.
At 10:20 IST, the S&P BSE Sensex was down 24.54 points or 0.11% to 22,663.53. The index fell 44.18 points at the day's low of 22,643.89 in early trade, its lowest level since 21 April 2014. The index gained 33.29 points at the day's high of 22,721.36 in early trade.
The CNX Nifty was down 18.90 points or 0.28% to 6,763.85. The index hit a low of 6,763.40 in intraday trade, its lowest level since 17 April 2014. The index hit a high of 6,783.20 in intraday trade.
The BSE Mid-Cap index rose 22.41 points or 0.3% to 7,396.05. The BSE Small-Cap index rose 30.38 points or 0.4% to 7,627.72. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1,002 shares gained and 599 shares fell. A total of 61 shares were unchanged.
Among the 30-share Sensex pack, 17 stocks gained and rest of them declined. Bharat Heavy Electricals (down 1.55%), Tata Motors (down 1.3%) and Bharti Airtel (down 1.42%) edged lower from the Sensex pack.
Pharma stocks gained as rupee edged lower against the dollar. Weakness in rupee could boost sales of pharma companies in rupee terms as pharma firms derive substantial revenue from exports. Cipla (up 1.09%), Dr. Reddy's Laboratories (up 1.22%), Wockhardt (up 2.42%), Ranbaxy Laboratories (up 1.11%) and Sun Pharmaceutical Industries (up 0.84%) gained.
Lupin rose 2.14% to Rs 1,013.10, with the stock hitting record high of Rs 1,014 in intraday trade.
EID Parry (India) rose 1.32% after the company said it has acquired 100% stake in Alimtec SA, Chile. The announcement was made after market hours on Friday, 25 April 2014.
EID Parry (India) after market hours on Friday, 25 April 2014 said that as part of the growth strategy for the Nutraceuticals Business, EID Parry (India) has acquired 100% stake in Alimtec SA, Chile, part of the Bayer Group. The acquisition is by way of purchase of the stake from Bayer Finance and portfolio Management SA, and Nunhems Chile SA, subsidiaries of Bayer AG, EID Parry (India) said in a statement.
With this acquisition, EID Parry would ensure reliable sourcing of Astaxanthin for its subsidiary, US Nutraceuticals LLC (Valensa), the company said. With Valensa's strength in developing Astaxanthin based formulations, this acquisition will culminate in value creation for the Nutraceuticals business. The entire production of Alimtec will be used by Valensa for its Astaxanthin products catering to USA & Europe Markets, EID Parry (India) said in a statement.
Alimtec SA, a Chilean company forming part of the Bayer Group, is active in the business of producing Haematococcus pluvialis (H. pluvialis) biomass, a cultured micro-algae that is a rich natural source of Astaxanthin for human use.
State Bank of Tranvancore lost 1.62% after net profit declined 70.73% to Rs 48.57 crore on 8.98% growth in total income to Rs 2773.37 crore in Q4 March 2014 over Q4 March 2013. The Q4 result was announced after market hours on Friday, 25 April 2014.
State Bank of Tranvancore (SBT)'s ratio of gross non-performing assets (NPAs) to gross advances stood at 4.35% as on 31 March 2014 as against 4.41% as on 31 December 2013 and 2.56% as on 31 March 2013. The ratio of net NPAs to net advances stood at 2.78% as on 31 March 2014 as against 2.73% as on 31 December 2013 and 1.46% as on 31 March 2013.
The bank's provisions and contingencies surged 68.45% to Rs 184.90 crore in Q4 March 2014 over Q4 March 2013.
SBT's Capital Adequacy Ratio (CAR) as per Basel III stood at 10.79% as on 31 March 2014 as against 10.03% as on 31 December 2013.
In terms of RBI Circular dated 23 August 2013, on "Investments portfolio of banks - Classification, Valuation and Provisioning" the bank has transferred SLR securities with face value of Rs 4246.40 crore (Book Value of Rs 4456.28 crore) held under AFS portfolio to HTM portfolio and the loss on such transfer amounting to Rs 50.63 crore has been recognized during the quarter.
Siemens gained 2.47% after net profit jumped 194.7% to Rs 88.27 crore on 8.6% fall in net sales to Rs 2657.74 crore in Q2 March 2014 over Q2 March 2013. The company announced Q2 results after market hours on Friday, 25 April 2014.
Siemens registered new orders of Rs 2620.10 crore in Q2 March 2014 compared to Rs 2806.50 crore in Q2 March 2013.
Sunil Mathur, Managing Director and Chief Executive Officer, Siemens, said, The volumes are stable when viewed in the backdrop of the macro-economic fundamentals. The improved profitability is a clear indication that internal measures aimed at increasing competitiveness have begun to take effect.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.67, lower than its close of 60.60/61 on Friday, 25 April 2014.
The Reserve Bank of India (RBI) next undertakes monetary policy review on 3 June 2014. The RBI left its main lending rate viz. the repo rate unchanged at 8% after a monetary policy review on 1 April 2014, as consumer-price inflation eased to a two-year low and as the rupee firmed up against the dollar.
A major near term trigger for the stock market is the outcome of the upcoming Lok Sabha elections. The 36 days long voting process began on 7 April 2014 and will conclude on 12 May 2014. The results will be declared on 16 May 2014 after which India will get a new government. The term of the current Lok Sabha expires on 1 June and the new House has to be constituted by 31 May.
Asian stocks fell on Monday as investors weighed company earnings amid prospects for additional sanctions against Russia over the Ukraine crisis. Key benchmark indices in Japan, China, Indoensia, Hong Kong and Singapore were off 0.09% to 1.23%. Key benchmark indices in South Korea and Taiwan were up 0.15% to 0.33%.
Asian policy makers must push ahead with structural changes to ensure the region continues to lead global growth and withstand volatility as the US reduces monetary stimulus, the International Monetary Fund said. Asian economies will face higher interest rates and bouts of volatility in capital flows and asset prices as global liquidity tightens amid a recovery in advanced nations, the Washington-based lender said in its Regional Economic Outlook for Asia and Pacific released today. Tightening of global liquidity is one of the four main risks confronting Asia this year and next year, the IMF said. Other dangers include a sharper-than-envisaged slowdown in China, waning effectiveness of growth-supporting policies in Japan, and political and geopolitical tensions that disrupt trade, it said.
Trading in US index futures indicated that the Dow could gain 4 points at the opening bell on Monday, 28 April 2014. US stocks declined on Friday, 25 April 2014 as investors tracked escalating tension in Ukraine, with the geopolitical strife overshadowing upbeat results from Microsoft.
The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 29-30 April 2014. The Federal Reserve on 19 March 2014 decided after the conclusion of a monetary policy review to trim its monthly bond purchases by $10 billion to $55 billion.
The US and European Union will impose new sanctions on Russia amid the detention of international observers by pro-Russian separatists. Russia is one of the world's biggest nickel producers and is the fifth-largest wheat exporter, followed by Ukraine.
Russia has stoked tensions in Ukraine by threatening military maneuvers and by taking "no concrete steps" to implement an April 17 accord meant to diffuse the crisis, the Group of Seven nations -- the US, Japan, Canada, the UK, France, Germany and Italy -- said in an April 25 statement.
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