Nifty ends flat amid deteriorating economic, corporate data
09 August 2012
It was another topsy turvy ride for Indian markets in trade today. Depressing June IIP data coupled with dismal corporate results including some of the heavyweights like Tata Motors, Ranbaxy and Bharti Airtel weighed heavily on the market.
The Sensex shuts shop at 17560.87 down 39.69 points or 0.23% at 17560.87, and the Nifty closed at 5322.95 down 15.05 points or 0.28%. About 1109 shares advanced, 1619 shares declined, and 713 shares remain unchanged.
Moody's joins downgrade bandwagon
Moody's Analytics cut India's growth forecast to 5.5% for this year, citing a lack of government or RBI action despite a broad-based slowdown, as well as a poor monsoon.
Also Read: Here is what's pouring this drought season - GDP downgrades
Murky IIP data
The Index of Industrial production (IIP) for the month of June has come in at a dismal -1.8%, way below the CNBC-TV18 poll estimate of 1%. The number suggests that all gains accumulated in the previous month have been wiped out.
The impact of the number was felt on the stock market, which gave up morning gains. The IIP figure for the month of May, however, has been revised slightly higher to 2.5% from 2.4%.
Amid slowdown in economic activities, the government today said it will reassess the fiscal deficit target of 5.1% of GDP for the current fiscal after mid-year review of the economy.
The government aims to bring down fiscal deficit - the gap between expenditure and revenue collection - from 5.9% of GDP in 2011-12 to 5.1% or about Rs 5.13 lakh crore in current financial year.
Tata Motors misses
Tata Motors posted a 12 percent rise in first-quarter net profit, falling below expectations, as a jump in sales at its Jaguar Land Rover (JLR) subsidiary offset falling profit at its domestic business.
The focus shifts to telecom sector where challenging outlook given by Bharti Airtel has raised concerns over the EBITDA margins. Bharti has lost more than 10% over the last two days. Similarly, Idea Cellular shed by 8% over two days.
Indecisive market pushed investors to park money in FMCG stocks. Hindustan Unilever and ITC touched all-time high in trade today.
Top losers on the Nifty were Bharti Airtel, SBI, HDFC, BPCL and Ranbaxy Labs. Sterlite Industries, Mahindra and Mahindra, Tata Power, HUL and Coal India manage to end in green.
No rain, Inflation pain
Indian inflation probably crept up in July as poor monsoon rains drove food prices higher, a Reuters polls showed on Wednesday, giving the RBI less room to cut interest rates to revive a flagging economy.
Car sales in India rose an annual 6.7% in July, data from an industry body showed on Thursday, in the ninth consecutive monthly rise but below industry estimates as high interest rates and a hike in excise tax stunted demand.
Europe at 5-month high
European shares rose toward five-month highs on Thursday and the euro was steady, despite evidence of weakening activity across the region, as softer Chinese data kept alive talk of further central bank policy easing to tackle declining global growth.
Gold extends gains
Indian gold futures extended gains for another session on Thursday, recovering from their lowest level in more than two weeks, while physical traders stayed away, unwilling to get stuck with high-priced stocks during the festival season.
Choppy Sensex drifts lower; SBI, Bharti, RIL extend losses
Indian shares drifted lower with marginal losses due to further selling in Bharti Airtel, State Bank of India and Reliance Industries. Capital goods and banks stocks too were under pressure while the buying in FMCG, power, technology majors and Coal India capped the downside.
The BSE benchmark was down 55.46 points to 17,545.10 and the NSE benchmark fell 17.30 points to 5,320.70.
Country's largest telecom operator Bharti Airtel extended losses to 5.7% from 4% in afternoon trade as investors disappointed with the first quarter perfomance of telecom leader. Company expects the possibility of further fall in EBITDA margin.
Top lender State Bank of India tanked nearly 4% after the weak industrial output data in June. Market experts feel the Reserve Bank of India may not cut policy rates in the September policy, even after disappointing data. PNB declined 1% and Axis Bank was down 0.5% whereas HDFC Bank gained 0.8%. Housing finance company plunged 3%.
Index heavyweight Reliance Industries dropped 1.5%. Top commercial vehicle maker Tata Motors (ahead of Q1 results today) and private oil & gas producer Cairn India (as Rahul Dhir will step down at MD and CEO with effect from August 31) tanked nearly 3%.
State-owned oil retailer BPCL tumbled 2.7% ahead of numbers of its peers HPCL and IOC today. Ranbaxy Labs declined 1.5% ahead of Q1 earnings today.
Coal India, country's largest coal mining company, gained more than 2%. Sterlite Industries topped the buying list with gains of 3.6%.
FMCG majors ITC and HUL were up 1.3% and 2%, respectively. Top software services exporter TCS rose 0.8%.
Utility vehicle maker Mahindra & Mahindra rallied over 2% following a rally of 4% yesterday after strong numbers in Q1.
Nifty, Sensex flat; HDFC, SBI, Bharti under pressure
Indian equity benchmarks remained flat amid choppy trade in afternoon trade due to lack of global and domestic cues. European markets opened marginally higher on Thursday.
The market already priced in disappointing industrial output data by erasing gains. The 30-share BSE Sensex fell just 0.71 points to 17,599.85 after losing 100 points from day's high. Meanwhile, the 50-share NSE Nifty dropped below the 5350 level, which was trading flat at 5,337.55.
Index of industrial production dropped to negative 1.8% as against 2.5% in previous month due to contraction in capital goods and manufacturing sectors. Growth in basic goods declined while there was some improvement in consumer goods, mining and electricity sectors.
The Index of Industrial production (IIP) for the month of June has come in at a dismal -1.8%, way below the CNBC-TV18 poll estimate of 1%. The number suggests that all gains accumulated in the previous month have been wiped out. The IIP figure for the month of May, however, has been revised slightly higher to 2.5% from 2.4%.
The components which dealt the severest blow to any hope of revival are capital goods and manufacturing. From a year-on-year perspective, capital goods witnessed degrowth of negative 27.9% versus 38.7% recorded in previous June. Manufacturing sector too contracted at (-) 3.2% versus a growth of 2.5% in the previous month and 11.1% in the previous year.
Capital goods majors Larsen & Toubro and BHEL were down more than 0.6%. Country's largest lender State Bank of India tanked nearly 2% that means the RBI may not cut rates in September policy, though there is an indication to cut policy rates after disappointing industrial output data.
Housing finance company HDFC tumbled 3%. Private sector lender ICICI Bank trimmed gains to 0.5% from 1% while its rival HDFC Bank gained 1.4%.
Top commercial vehicle maker Tata Motors extended losses to 2.34% from 0.7% ahead of Q1 earnings.
Index heavyweight Reliance Industries and telecom operator Bharti Airtel were down more than 1% and 4%, respectively.
FMCG majors ITC and HUL gained 1-2%. Shares of M&M, Sterlite Industries, Coal India and Tata Power were up 2-3%.
India's largest software services exporters TCS and Infosys moved up 1% and 0.6%, respectively.
Sensex off day's high after disappointing IIP data
The BSE Sensex and NSE Nifty trimmed gains after lower than expected industrial output data in June. Index of industrial production dropped to negative 1.8% as against 2.5% in previous month due to contraction in capital goods and manufacturing sectors. Growth in basic goods declined while there was some improvement in consumer goods, mining and electricity sectors.
The BSE benchmark moved up 40 points to 17,640.66 and the NSE benchmark was up 10 points to 5,347.7.
Country's largest lender State Bank of India declined 0.8% while its rivals ICICI Bank and HDFC Bank gained 1% each. Housing finance company HDFC tanked 3%.
Engineering and construction major Larsen & Toubro was down 0.77% and state-owned power equipment manufacturer BHEL slipped 0.4%.
Top commercial vehicle maker Tata Motors lost 0.9% on profit booking after rising 10% in previous three sessions whereas utility vehicle producer remained strong with 3% gains after Q1 results.
Bharti Airtel, India's largest telecom operator plunged 4% after weak performance in June quarter. The stock had fallen nearly 7% yesterday.
FMCG majors ITC and HUL gained 1% and 1.7%, respectively. Software services exporters TCS, Infosys and Wipro were up nearly 1%.
Shares of Bajaj Auto, Coal India, Sun Pharma, Sterlite Industries and GAIL climbed 1-2%.
Volatile Nifty holds 5350 ahead of IIP data; M&M rises 3%
Indian shares were trading higher with marginal gains ahead of industrial output data. Experts expect index of industrial production (IIP) in the vicinity of a contraction of around 0.6% to a growth of around 1.3% for June.
The BSE benchmark was up 60.65 points at 17,661.21 and the NSE benchmark rose 14 points to 5,352.20. The broader markets too were marginally higher.
Atul Badkar of Edelweiss Securities says, it doesn't look like the Nifty is in a hurry to stop. "I think there is some consolidation. We may probably taper back towards 5,300. It looks like we will go towards the 5,400 sooner or later," he adds.
Country's largest private sector lenders ICICI Bank and HDFC Bank were up 1% and 0.7%, respectively while their rival State Bank of India was up 0.2%.
Utility vehicle maker Mahindra & Mahindra shot up over 3% after strong numbers in first quarter. Commercial vehicle maker Tata Motors gained 1% ahead of Q1 earnings today.
Software services exporters TCS, Infosys and Wipro moved up 0.6%-1%. FMCG majors ITC and HUL were up 0.8% and 1.3%, respectively.
Power producers NTPC and Tata Power gained more than 0.6%. Oil & gas producers Reliance Industries and ONGC were trading marginally higher.
Telecom operator Bharti Airtel crashed another 4% after shedding 7% yesterday due to disappointed numbers in Q1 and outlook for next quarters.
Cairn India lost nearly 3% after the news that Rahul Dhir will step down as MD and CEO of the company with effect from August 31. Housing finance company HDFC was down over 2%.
Advancers outnumbered decliners by 1037 to 803 on the BSE.
Sensex opens 100 pts up on Asia cues; Bharti, Cairn down 3%
The BSE Sensex gained 100 points amid volatility in early trade following positive Asian cues. Hang Seng, Nikkei, Kospi and Taiwan Weighted moved up 0.8%-1.4% while Shanghai went up 0.2%.
The BSE benchmark gained 99.48 points to 17,700.04 and the NSE benchmark rose 29 points to 5,367 led by banks, capital goods, technology and auto stocks.
M&M gained another 2% after showing 4% rally yesterday due to higher than expected numbers in Q1.
Tata Motors and Ranbaxy Labs were up over 1% ahead of June quarter earnings today.
Coal India, TCS, L&T, ICICI Bank, Kotak Mahindra Bank, PNB, JP Associates, Reliance Infrastructure, DLF, L&T, BHEL and Asian Paints too were on buyers' radar.
Cairn India tanked 3% after the news Rahul Dhir will step down as MD & CEO w.e.f. August 31.
Bharti Airtel fell another 3% after lower than expected net profit and EBITDA in the quarter ended June 2012.
Tata Power was down 0.5% after sharp fall in net profit in Q1.
The CNX Midcap Index went up 22 points to 7,294 as about two shares advanced for every share declining on the National Stock Exchange.
In the second line shares, PFC climbed 3% after its net profit surged to Rs 972 crore from Rs 686 crore YoY.
Pantaloon was down 3% as its Q4FY12 net profit dropped sharply to Rs 6.8 crore from Rs 18 crore QoQ.
Apollo Tyres was up 1.6% ahead of Q1 numbers today.
Jaypee Infratech was up 2.5% as Yamuna Expressway will open today.
Chambal Fertilisers, RCF and National Fertilisers gained over 0.5%.
V-Guard Industries went up another 2% after rising 6% yesterday due to strong numbers in June quarter.
Lanco Infratech, Unitech, Elecon Engg, MMTC and Balrampur Chini were up 0.6-1%.
UB Holdings fell 0.55%. Idea Cellular was down 1.5% after top telecom operator Bharti said the margin pressure possibly would continue during Q1 results' conference.