Sensex skids 102 points, Nifty ends below 8350; BHEL gains
28 July 2015
03:30 pm Market close: The Sensex ended down 102.15 points or 0.4 percent at 27459.23, and the Nifty slipped 24.00 points or 0.3 percent at 8337. About 1352 shares have advanced, 1391 shares declined, and 169 shares are unchanged.
BHEL, NTPC, HDFC Bank, Hindalco and L&T were top gainers in the Sensex. Among the losers are Hero MotoCorp, HDFC, ICICI Bank and Tata Motors.
03:00 pm Boardroom: Untimely rains and weak rural demand impacted cash flows in the June quarter, Ramesh Iyer, Managing Director of M&M Financial Services told CNBC-TV18. The company reported a decline in its net profit by 42.6 percent to Rs 88.9 crore. The gross non-performing assets (NPAs) rose 8 percent. Iyer said the on-ground activity in rural market has been slow leading to pressurized cash flows for customers. The asset book has not improved in the last quarter. The company has 150 days in FY16 for NPA recognition, Iyer said.
2:50 pm Market check: The Sensex is down 53.71 points at 27507.67, and the Nifty is down 10.75 points at 8350.25. About 1340 shares have advanced, 1304 shares declined, and 168 shares are unchanged.
HDFC Bank is up 1 percent while ICICI Bank is down 2 percent.
2:40 pm Result: Housing Development Finance Corporation (HDFC) missed street forecast on Tuesday with the profit rising 1.2 percent year-on-year to Rs 1,361 crore as against expected growth of 4.5 percent. Total income from operations grew by 9.5 percent to Rs 7,057 crore from Rs 6,447 crore during the same period.
02:20 pm SEBI on IPOs: Capital markets regulator Sebi has sought clarifications from merchant bankers of four firms including IndiGo and Coffee Day Enterprises regarding their proposed initial public offers (IPOs).
The other firms from which Sebi has sought information are RBL Bank (formerly known as Ratnakar Bank) and global sim card provider Matrix Cellular (International) Services.
Without disclosing the details of clarifications sought, Securities and Exchange Board of India (Sebi) has said that it is awaiting response from 'Lead Managers' for the proposed public offers.
According to the latest weekly update on the processing status of draft offer documents filed with Sebi, the market regulator has said clarifications were awaited on the IPO of these four companies as on July 24, 2015.
02:00 pm Market Check
Equity benchmarks remained rangebound in afternoon trade with the Nifty hovering around 8350 level. The broader markets, too, continued to be volatile.
The Sensex declined 10.49 points to 27550.89 and the Nifty rose 3.90 points to 8364.90. About 1318 shares have advanced, 1262 shares declined, and 163 shares are unchanged on the BSE.
Bank of India plunged 4 percent and Syndicate Bank crashed nearly 6 percent after sharp fall in profit and weak asset quality performance.
1:50 pm Market falls: The markket is falling further with pressure from April-June quarter earnings. The Sensex is down 100.52 points or 0.4 percent at 27460.86, and the Nifty is down 24.25 points or 0.3 percent at 8336.75. About 1319 shares have advanced, 1233 shares declined, and 163 shares are unchanged.
Hero Moto, Tata Motors, ICICI Bank, HDFC and Bharti Airtel are among laggards while BHEL, Hindalco, HUL, SBI and HDFC Bank are top gainers.
The Sensex is up 46.26 points at 27607.64, and the Nifty up 20.10 points at 8381.10. About 1397 shares have advanced, 1092 shares declined, and 146 shares are unchanged.
BHEL, SBI, Hindalco HDFC Bank and NTPC are top gainers in the Sensex. Among the losers are Tata Motors, Hero MotoCorp, ICICI Bank and HDFC are major losers.
Prospects of summer crops like rice, pulses and oilseeds are "good" in most parts of the country, barring some interior parts of Maharashtra, Andhra Pradesh, Telangana and Karnataka, IMD chief said today.
More than 50 percent of the sowing of summer crops has been completed so far in this kharif season and farmers have taken up pulses, oilseeds and coarse cereals in a big way, as per the latest data of the Agriculture Ministry. Sowing of kharif crops begins with the onset of southwest monsoon from June.
12:40 pm Acquisition: The country's largest two-wheeler maker Hero MotoCorp will acquire certain assets of Eric Buell Racing for USD 2.8 million as part of a settlement agreement with court-appointed receiver in the bankruptcy matter of the US-based company. The settlement agreement was signed between HMCL (NA) Inc and HMCL Americas Inc - both entities of Hero MotoCorp Ltd (HMCL) - and the receiver appointed by the Circuit Court, Wisconsin, US, in the bankruptcy matter filed by Erik Buell Racing (EBR) and Erik Buell LLC, the company said in a filing to the BSE. "As part of the settlement, the HMCL Americas has agreed to acquire the ownership of certain tangible and intangible assets of EBR Entities, free and clear of all encumbrances, for a consideration of USD 2.8 million," the company said.
12:20 pm Interview: Untimely rains and weak rural demand impacted cash flows in the June quarter, Ramesh Iyer, Managing Director of M&M Financial Services told CNBC-TV18. The company reported a decline in its net profit by 42.6 percent to Rs 88.9 crore. The gross non-performing assets (NPAs) rose 8 percent. Iyer said the on-ground activity in rural market has been slow leading to pressurized cash flows for customers. The asset book has not improved in the last quarter. The company has 150 days in FY16 for NPA recognition, Iyer said. Iyer expects activity level to remain subdued in the second quarter as well.
12:00 pm Market Check The market remained choppy after yesterday's steep sell-off.. The 30-share BSE Sensex gained 23.73 points at 27585.11 and the 50-share NSE Nifty rose 10.90 points to 8371.90. The market breadth continued to be positive as about 1358 shares have advanced against 1043 shares declined on the Bombay Stock Exchange. Samir Arora of Helios Capital believes that with lower crude prices India is relatively well placed compared to other markets. Jitendra Sriram of HSBC India pegged Sensex target for 2015-end at 26,900. Asian markets recover from early losses to trade mixed.. Shanghai index, too, recouped some losses to trade down 2 percent. Gold prices struggled near its weakest level since early 2010. Public sector lender Punjab National Bank (PNB) missed street expectations on Tuesday with the first quarter net profit falling 48.7 percent year-on-year to Rs 721 crore but its asset quality improved sequentially. The stock gained more than 5 percent. Union Bank of India's Q1 net profit fell 21.8 percent year-on-year to Rs 519 crore while net interest income increased 0.6 percent to Rs 2,130 crore. Profit was ahead of expectations and NII missed forecast but asset quality worsened. The stock declined half a percent.
11:50 am Big bull: When general indicators like commodity prices fall, India finds itself in a relatively positive trade space, says Helios Capital's Samir Arora. India will certainly get affected if there is a global disturbance of humongous scale, but it certainly is not facing a rocky terrain, he told CNBC-TV18. On the P-note issue unsettling the market, he said the government has already clarified it will not act in a hurry and "I don't think it is coming in the short-term." Arora says many foreign institution investors choose to invest through P-notes. Indian equities are good, India is relatively well-placed, and the government has shown --so it is a long-short market.
11:30 am Hero acquisition: The country's largest two-wheeler maker Hero MotoCorp will acquire certain assets of Eric Buell Racing for USD 2.8 million as part of a settlement agreement with court-appointed receiver in the bankruptcy matter of the US-based company.
The settlement agreement was signed between HMCL (NA) Inc and HMCL Americas Inc - both entities of Hero MotoCorp Ltd (HMCL) - and the receiver appointed by the Circuit Court, Wisconsin, US, in the bankruptcy matter filed by Erik Buell Racing (EBR) and Erik Buell LLC, the company said in a filing to the BSE. "As part of the settlement, the HMCL Americas has agreed to acquire the ownership of certain tangible and intangible assets of EBR Entities, free and clear of all encumbrances, for a consideration of USD 2.8 million," the company said.
The market is going flat as the Sensex is up 0.34 points at 27561.72. The Nifty up 4.85 points at 8365.85. About 1279 shares have advanced, 949 shares declined, and 128 shares are unchanged. BHEL, HDFC Bank, Dr Reddy's Labs, L&T and Maruti Suzuki are top gainers in the Sensex. Among the top losers are Tata Motors, Hero MotoCorp, Tata Steel, Cipla and Bharti Airtel. Realty index fell 2 percent from previous close while Capital Goods index is up 0.6 percent. Oil prices fell close to four month lows in early Asian trade after stock market sell-offs on both sides of the Pacific rattled investor sentiment about the Chinese economy, adding to concerns about a global oil glut. Both the dollar and euro held steady in early Asian trade after the dollar index slipped 0.7 percent in the previous session. The euro surged to a two-week high overnight, which had helped to support oil prices.
10:45 am Q1 expectations: Public sector lender Punjab National Bank's earnings are expected to be weak during April-June quarter. Net profit is seen falling 21 percent year-to-year to Rs 1,111 crore and net interest income may slip 4 percent to Rs 4,204 crore in the quarter gone by, according to a CNBC-TV18 poll.
However, some analysts feel the net interest income and profit could surprise consensus. They expect provisions to decline on sequential basis but if provisions do not fall then that may be taken very negatively on the street. Provisions in Q4FY15 had spiked 79 percent Y-o-Y to Rs 3,834 crore. Asset quality in first quarter is expected to continue being stressed year-on-year, but could be lower on sequential basis. The management, after Q4 earnings, said they have been taking efforts to improve asset quality but the street expects that to happen in the medium term.
10:30 am Earnings: Drug firm Torrent Pharma reported 75.39 percent rise in consolidated net profit to Rs 449 crore for the first quarter ended June year-on-year, mainly on account of a new product launch in the US. The firm's consolidated net income from operations also rose to Rs 1,947 crore for the quarter under review as against Rs 1,114 crore in the year-ago period. "The exceptional growth in the revenues and profits for the quarter is primarily on account of launch of a new product in the US market, which currently has limited competition...," Torrent Pharmaceuticals said. For the quarter ended June 30, the company had total sales of Rs 601 crore in India as against Rs 372 crore in the same quarter a year ago, it added. Total sales outside India also witnessed an upsurge to Rs 1,287 crore for the quarter ended June this year.
10:00 am Market Check The market entered into consolidation mode after a fall in previous three consecutive sessions. The Sensex fell 40.23 points to 27521.15 and the Nifty declined 10.30 points to 8350.70. About 962 shares have advanced against 813 shares declined on the Bombay Stock Exchange. Rakesh Arora, Macquarie said there is enough happening to keep the long-term interest alive in the market but not good enough to break out of the current range in the near term. He expects Nifty to remain stuck in the 8,000-8,800 range for some more time. ONGC and Tata Motors topped the selling list, falling nearly 3 percent followed by Wipro, Cipla, Tata Steel, GAIL, Vedanta and Hindalco Industries with 1 percent loss. HDFC and PNB fell 0.5 percent and 2 percent, respectively, ahead of their June quarter earnings. However, Maruti Suzuki gained 1 percent on hopes of spectacular earnings with the profit rising 69 percent year-on-year.
9:50 am Market check: Once again the market is struggling to keep firm. The Sensex is up 1.35 points at 27562.73 and the Nifty is up 1.35 points at 8362.35. About 1018 shares have advanced, 633 shares declined, and 105 shares are unchanged.
BHEL, Dr Reddy's Labs, L&T, Maruti and Reliance are top gainers in the Sensex. Tata Motors, ONGC, Wipro, Hindalco and HUL are among losers.
9:30 am Poll: Housing Development Finance Corporation 's (HDFC) first quarter profit is seen rising 4.5 percent year-on-year to Rs 1,406 crore, according to the average of estimates of analysts polled by CNBC-TV18. The housing finance company will announce its earnings on July 28. The profitability is likely to be impacted due to lower other income. Other income (non-interest income) is expected to fall over 50 percent year-on-year due to deferment of dividend from HDFC Bank to Q2. Other income in Q1FY15 grew by 40 percent Y-o-Y to Rs 482.2 crore.
The market has opened in green after the severe loss on Monday. The Sensex is up 57.02 points at 27618.40 and the Nifty is up 16.25 points at 8377.25. About 566 shares have advanced, 174 shares declined, and 66 shares are unchanged. ICICI Bank, Bharti Airtel, Infosys, Maruti and Hero are top gainers in the Sensex while Tata Motors, GAIL, M&M, HDFC and Axis Bank are among laggards.
The Indian rupee opened marginally higher by 5 paise at 64.11 per dollar on Tuesday against previous close of 64.16. Ashutosh Raina of HDFC Bank said, "The turmoil in the China had ripple effects across global equity markets and prices of key commodities.
The outcome of FOMC meeting will be keenly awaited for cues." The US dollar fell nearly 1 percent against major world currencies. The safe-haven yen remained firm in early trade, as investors remained cautious ahead of a two-day US Federal Reserve meeting beginning later this session. Asian market is at multi-week lows amid China volatility and as decline in commodities continues.
US and European stocks too closed lower on Monday under pressure from an overnight plunge in the Shanghai Composite amid a lackluster earnings season.
The safe-haven yen held firm in early trade, as investors remained cautious ahead of a two-day US Federal Reserve meeting. Crude prices slipped further, with the Nymex trading close to a four-month lows after a stock market sell-off rattled investors, adding to concerns of an oil supply glut. Brent crude slipped below USD 54.
Precious metal gold is trading near its 5.5 year lows with expectations for a near-term US interest rate hike seen keeping momentum firmly with the bears.