Sensex ekes out minuscule gains
Amid a divergent trend among various index constituents, key benchmark indices settled near the flat line. The barometer index, the S&P BSE Sensex, rose 27.82 points or 0.11% to settle at 25,844.18. The Nifty 50 index ended almost unchanged for the day. The index gained 0.05 points to settle at 7,914.75. The Sensex gained for the fifth day in a row and the Nifty edged higher for the sixth day in a row. The Sensex and the Nifty, both, hit their highest closing level in nearly 16 weeks.
Metal and mining stocks surged on recent rally in copper and steel prices in global commodities markets. National Aluminium Company (Nalco) dropped after the company said that due to unavoidable reasons the meeting of board of directors scheduled to be held on 22 April 2016 to consider buyback of shares has been postponed. Steel stocks rose after a foreign brokerage initiated coverage on Indian steel sector and assigned outperform rating on Tata Steel, JSW Steel and Jindal Steel and Power. Tata Steel surged on media reports that senior officials at the company's Port Talbot steelworks in UK have been briefed about a possible management buyout of the Port Talbot manufacturing facilities.
TCS edged lower after the company reported a 50 basis points decline in its operating profit margin at 27.7% in Q4 March 2016 from 28.2% in Q3 December 2015. Wipro edged higher ahead of the announcement of its fourth quarter earnings. Index heavyweight and housing finance major HDFC edged higher after the company announced that it intends to sell up to 10% stake in its subsidiary HDFC Standard Life Insurance Company (HDFC Life) through offer for sale (OFS) in an initial public offer (IPO) of HDFC Life subject to market conditions.
The Sensex rose 27.82 points or 0.11% to settle at 25,844.18, its highest closing level since 1 January 2016. The index gained 139.98 points or 0.54% at the day's high of 25,956.34. The index fell 99.55 points or 0.38% at the day's low of 25,716.81.
The Nifty 50 index rose 0.05 points at 7,914.75, its highest closing level since 1 January 2016. The index rose 35.70 points or 0.45% at the day's high of 7,950.40. The index fell 37.15 points or 0.46% at the day's low of 7,877.55.
The market breadth indicating the overall health of the market was positive. On BSE, 1,477 shares gained and 1,145 shares declined. A total of 148 shares were unchanged. The BSE Mid-Cap index rose 0.1%, underperforming the Sensex. The BSE Small-Cap index gained 0.64%, outperforming the Sensex.
The total turnover on BSE amounted to Rs 2688 crore, higher than turnover of Rs 2223.34 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Telecom index (down 1.22%), the S&P BSE Realty index (down 0.43%), the S&P BSE Teck index (down 0.55%), the S&P BSE IT index (down 0.38%), the S&P BSE FMCG index (down 0.14%), the S&P BSE Energy index (down 1.24%), the S&P BSE Healthcare index (down 0.31%), the S&P BSE Oil & Gas index (down 0.73%) the S&P BSE Auto index (down 0.57%),and the S&P BSE Consumer Discretionary Goods & Services index (up 0.09%) underperformed the Sensex.
The S&P BSE Metal index (up 3.77%), the S&P BSE Power index (up 1.07%), the S&P BSE Capital Goods index (up 0.94%),the S&P BSE Basic Materials index (up 1.65%), the S&P BSE Bankex (up 0.77%), the S&P BSE Finance index (up 0.73%), the S&P BSE Utilities index (up 1.34%), the S&P BSE Industrials index (up 0.57%), and the S&P BSE Consumer Durables index (up 1.81%) outperformed the Sensex.
In overseas stocks markets, Asian and European stocks dropped as a decline in crude oil prices sapped risk appetite. Chinese stocks fell on concerns of a share supply glut. In mainland China, the Shanghai Composite index settled 2.31% lower. In Hong Kong, the Hang Seng index settled 0.93% lower. According to news reports, China has cleared initial public offer (IPO) proposals of 72 companies. US stocks closed on a mixed note yesterday, 19 April 2016, as a slump in shares of large-cap tech firms offset positive sentiment from stable oil prices and a string of better-than-expected earnings.
Bharti Infratel fell 2.47% to Rs 386.50 on reports Bharti Airtel will sell more than 5% stake in the telecom tower company through an open market block deal. Bharti Airtel owns a 71.7% stake in Bharti Infratel (as on 31 December 2015). Bharti Airtel plans to use the sale proceeds to cut debt, media reports suggested. The report did not give a timeline for the planned sale. Bharti Airtel dropped 0.57% to Rs 356.50.
Metal and mining stocks surged on recent rally in copper and steel prices in global commodities markets. Vedanta (up 9.2%), Hindustan Zinc (up 4.54%), Hindalco Industries (up 4.53%), NMDC (up 2.66%) and Hindustan Copper (up 8.6%) edged higher.
High Grade Copper for May 2016 delivery was currently off 0.49% at $2.2125 per pound on the COMEX.
Steel stocks rose after a foreign brokerage initiated coverage on Indian steel sector and assigned outperform rating on Tata Steel, JSW Steel and Jindal Steel and Power. JSW Steel (up 2.02%), Steel Authority of India (Sail) (up 4.05%) and Jindal Steel & Power (up 7.44%) rose. The brokerage reportedly cited factors such as bottoming out of inventory cycle, weakness in dollar and China demand stimulus among positives for the steel sector.
Tata Steel surged 6.87% on media reports that senior officials at the company's Port Talbot steelworks in UK have been briefed about a possible management buyout of the Port Talbot manufacturing facilities. According to media reports, Stuart Wilkie, Managing Director of Tata Strip Products UK, is heading up a buying team alongside other staff members. Reports suggested that Port Talbot is Tata Steel's biggest UK plant with about 4,000 workers.
Tata Steel Europe announced early this week that it has appointed Standard Chartered Bank as an additional adviser for the divestment of its entire holding in its British subsidiary Tata Steel UK. On 11 April 2016, Tata Steel Europe announced that the company has commenced the formal process for the divestment of its entire holding in its British subsidiary Tata Steel UK. Tata Steel Europe has decided to sell its entire holding in Tata Steel UK due to the deteriorating financial performance of the UK subsidiary.
On 18 April 2016, Tata Steel announced changes in leadership at Tata Steel UK. Bimlendra Jha, an Executive Committee member of Tata Steel Europe has been appointed as the Chief Executive Officer of Tata Steel UK. Jha is currently Executive Chairman of Tata Steel Europe's Long Products Europe business and has successfully led the divestment process that resulted in the signing of a sale and purchase agreement with Greybull Capital on 11 April 2016.
National Aluminium Company (Nalco) lost 3.21% after the company said that due to unavoidable reasons the meeting of board of directors scheduled to be held on 22 April 2016 to consider buyback of shares has been postponed. The new date of board meeting will be informed in due course, Nalco said. The announcement was made yesterday, 19 April 2016, when the stock market was closed for a holiday.
HDFC rose 1.2% after the company announced that it intends to sell up to 10% stake in its subsidiary HDFC Standard Life Insurance Company (HDFC Life) through offer for sale (OFS) in an initial public offer (IPO) of HDFC Life subject to market conditions. As on 31 March 2016, HDFC held 61.63% of the issued and paid-up share capital of HDFC Life. Post the sale of shares, HDFC Life would continue to be a subsidiary of HDFC.
HDFC Life reported profit after tax of Rs 818 crore on total income of Rs 17954 crore in the year ended 31 March 2016 (FY 2016). It reported gross premium income of Rs 16313 crore in FY 2016. Net worth as on 31 March 2016 was Rs 3150 crore.
Tata group stocks rose. Tata Chemicals (up 5.04%), Titan Company (up 3.91%), Tata Communications (up 2.83%), Tata power Company (up 1.56%) and Tata Global Beverages (up 1.25%) gained.
But TCS bucked the trend after the company reported a 50 basis points decline in its operating profit margin at 27.7% in Q4 March 2016 from 28.2% in Q3 December 2015. The stock shed 2.79%. On consolidated basis, the company's net profit rose 5% to Rs 6413.12 crore on 4% growth in sales to Rs 28448.61 crore in Q4 March 2016 over Q3 December 2015. Higher non-operational income or the so-called other income boosted TCS' bottom line during the quarter. Other income rose 32% to Rs 917.01 crore in Q4 March 2016 over Q3 December 2015. Operating profit rose 2% to Rs 7887.27 crore in Q4 March 2016 over Q3 December 2015. The result was announced after market hours on Monday, 18 April 2016. The stock market was closed yesterday, 19 April 2016, for a holiday.
TCS' top management in a post Q4 result conference call stated that with most of the headwinds behind, the company is well placed to deliver a strong performance in FY 2017. The management believes that TCS' scale and digital capability positions the company strongly to become the preferred digital partner for more and more clients and win a disproportionate share of their incremental digital spending. BFSI, North America and Continental Europe have shown very good resilience and have grown very well in Q4 March 2016 with a good exit, building up strong momentum going into FY 2017. The business in Latin America has turned the corner and has done very well during the last couple of quarters.
IT major Wipro gained 2.12% to Rs 601.65. The stock hit high of Rs 606.75 and low of Rs 589.55 in intraday trade. Wipro's consolidated net profit fell 2% to Rs 2240 crore on 12% rise in gross revenue to Rs 13630 crore in Q4 March 2016 over Q4 March 2015. The results are as per International Financial Reporting Standards (IFRS). The result was announced after market hours today, 20 April 2016. On an annualized basis, the employee attrition rate dropped to 14.9% in Q4 March 2016 from 16.3% in Q3 December 2015.
Revenue from IT services business rose 2.4% to $1,882 million in Q4 March 2016 over Q3 December 2015. On sequential basis, the company expects 1% to 3.02% growth in revenue from IT services business at between $1,901 million to $1,939 million in Q1 June 2016.
Wipro's board of directors approved a proposal to buyback up to 4 crore equity shares of the company for an aggregate amount of up to Rs 2500 crore, being 1.62% of the total paid up equity share capital. The buyback will be through the tender offer route at Rs 625 per share. The promoters of the company have indicated their intention to participate in the proposed buyback.
Bank stocks edged higher on renewed buying. Among private bank stocks, Axis Bank (up 3.13%), HDFC Bank (up 0.76%), Kotak Mahindra Bank (up 0.15%), ICICI Bank (up 0.59%), and IndusInd Bank (up 0.12%) gained. Yes Bank (down 1.3%) and Federal Bank (down 2.44%) declined.
Among PSU bank stocks, State Bank of India (SBI) (up 0.24%), Punjab National Bank (up 0.12%), Bank of Baroda (up 2.73%), Canara Bank (up 1.65%), IDBI Bank (up 0.77%) and Bank of India (up 2.16%) rose. Union Bank of India declined 0.66%.
Reserve Bank of India said in a notification issued on Monday, 18 April 2016, that commercial banks should normally provide for the entire amount due to the bank or for which the bank is liable (including in case of deposit accounts), immediately upon a fraud being detected. Banks have the option to make the provisions over a period of up to four quarters, commencing from the quarter in which the fraud has been detected. Banks shall make suitable disclosures with regard to number of frauds reported, amount involved in such frauds, quantum of provision made during the year and quantum of unamortised provision debited from 'other reserves' as at the end of the year, RBI said.
Stocks of oil exploration and production (E&P) firms edged higher after overnight gains in crude oil prices. ONGC (up 1.03%), Cairn India (up 0.67%) and Oil India (up 0.1%) edged higher. Higher crude oil prices would result in higher realization from crude sales for oil exploration firms.
Index heavyweight Reliance Industries (RIL) dropped 2.21% to Rs 1,038.30. The stock hit high of Rs 1,070 and low of Rs 1,035.35 in intraday trade.
Stocks of public sector oil marketing companies (PSU OMCs) edged lower after overnight gains in crude oil prices. BPCL (down 1.32%), HPCL (down 2.58%) and Indian Oil Corporation (down 1.3%) edged lower. Gains in crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.
Crude oil prices edged lower after overnight gains as investor focus returned to worries about oversupply after Kuwaiti workers ended a three-day strike that had halved the nation's crude output. Brent for June settlement was currently down 71 cents at $43.32 a barrel. The contract had risen $1.12 a barrel or 2.61% to settle at $44.03 a barrel during the previous trading session.
Meanwhile, the latest trade data showed that India's merchandise exports continue to see decline on year on year basis. Merchandise exports declined 5.47% to $22.71 billion in March 2016 over March 2015. Non-petroleum exports declined 3.49% to $20.63 billion in March 2016 over March 2015. The Ministry of Commerce & Industry said that the trend of falling exports is in tandem with other major world economies. Imports declined 21.56% to $27.78 billion in March 2016 over March 2015. Oil imports dropped 35.3% to $4.79 billion in March 2016 over March 2015. Non-oil imports fell 17.92% to $22.99 billion in March 2016 over March 2015. The trade deficit declined sharply to $5.07 billion in March 2016 from $11.39 billion in March 2015.
Reserve Bank of India Governor Raghuram Rajan reportedly said in a speech in Pune today, 20 April 2016, that he would not be euphoric if the country were to become the fastest growing large economy. Rajan said that implementation of several reforms would be key to ensuring India posts high growth. In a speech in New York, Rajan reportedly said early this week said that the central bank will continue to use currency intervention to reduce volatility in the country's exchange rates.
The Sensex rose for the fifth straight trading session. The barometer index has risen 1,170.34 points or 4.74% in five trading sessions from its close of 24,673.84 on 8 April 2016. The Sensex has risen 502.32 points or 1.98% in this month so far (till 20 April 2016). The Sensex has fallen 273.36 points or 1.04% in calendar year 2016 so far (till 20 April 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the Sensex has risen 3,349.57 points or 14.89%. The Sensex is off 2,734.15 points or 9.56% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 4,180.56 points or 13.92% from a record high of 30,024.74 hit on 4 March 2015.
Metal and mining stocks surged on recent rally in copper and steel prices in global commodities markets. National Aluminium Company (Nalco) dropped after the company said that due to unavoidable reasons the meeting of board of directors scheduled to be held on 22 April 2016 to consider buyback of shares has been postponed. Steel stocks rose after a foreign brokerage initiated coverage on Indian steel sector and assigned outperform rating on Tata Steel, JSW Steel and Jindal Steel and Power. Tata Steel surged on media reports that senior officials at the company's Port Talbot steelworks in UK have been briefed about a possible management buyout of the Port Talbot manufacturing facilities.
TCS edged lower after the company reported a 50 basis points decline in its operating profit margin at 27.7% in Q4 March 2016 from 28.2% in Q3 December 2015. Wipro edged higher ahead of the announcement of its fourth quarter earnings. Index heavyweight and housing finance major HDFC edged higher after the company announced that it intends to sell up to 10% stake in its subsidiary HDFC Standard Life Insurance Company (HDFC Life) through offer for sale (OFS) in an initial public offer (IPO) of HDFC Life subject to market conditions.
The Sensex rose 27.82 points or 0.11% to settle at 25,844.18, its highest closing level since 1 January 2016. The index gained 139.98 points or 0.54% at the day's high of 25,956.34. The index fell 99.55 points or 0.38% at the day's low of 25,716.81.
The Nifty 50 index rose 0.05 points at 7,914.75, its highest closing level since 1 January 2016. The index rose 35.70 points or 0.45% at the day's high of 7,950.40. The index fell 37.15 points or 0.46% at the day's low of 7,877.55.
The market breadth indicating the overall health of the market was positive. On BSE, 1,477 shares gained and 1,145 shares declined. A total of 148 shares were unchanged. The BSE Mid-Cap index rose 0.1%, underperforming the Sensex. The BSE Small-Cap index gained 0.64%, outperforming the Sensex.
The total turnover on BSE amounted to Rs 2688 crore, higher than turnover of Rs 2223.34 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Telecom index (down 1.22%), the S&P BSE Realty index (down 0.43%), the S&P BSE Teck index (down 0.55%), the S&P BSE IT index (down 0.38%), the S&P BSE FMCG index (down 0.14%), the S&P BSE Energy index (down 1.24%), the S&P BSE Healthcare index (down 0.31%), the S&P BSE Oil & Gas index (down 0.73%) the S&P BSE Auto index (down 0.57%),and the S&P BSE Consumer Discretionary Goods & Services index (up 0.09%) underperformed the Sensex.
The S&P BSE Metal index (up 3.77%), the S&P BSE Power index (up 1.07%), the S&P BSE Capital Goods index (up 0.94%),the S&P BSE Basic Materials index (up 1.65%), the S&P BSE Bankex (up 0.77%), the S&P BSE Finance index (up 0.73%), the S&P BSE Utilities index (up 1.34%), the S&P BSE Industrials index (up 0.57%), and the S&P BSE Consumer Durables index (up 1.81%) outperformed the Sensex.
In overseas stocks markets, Asian and European stocks dropped as a decline in crude oil prices sapped risk appetite. Chinese stocks fell on concerns of a share supply glut. In mainland China, the Shanghai Composite index settled 2.31% lower. In Hong Kong, the Hang Seng index settled 0.93% lower. According to news reports, China has cleared initial public offer (IPO) proposals of 72 companies. US stocks closed on a mixed note yesterday, 19 April 2016, as a slump in shares of large-cap tech firms offset positive sentiment from stable oil prices and a string of better-than-expected earnings.
Bharti Infratel fell 2.47% to Rs 386.50 on reports Bharti Airtel will sell more than 5% stake in the telecom tower company through an open market block deal. Bharti Airtel owns a 71.7% stake in Bharti Infratel (as on 31 December 2015). Bharti Airtel plans to use the sale proceeds to cut debt, media reports suggested. The report did not give a timeline for the planned sale. Bharti Airtel dropped 0.57% to Rs 356.50.
Metal and mining stocks surged on recent rally in copper and steel prices in global commodities markets. Vedanta (up 9.2%), Hindustan Zinc (up 4.54%), Hindalco Industries (up 4.53%), NMDC (up 2.66%) and Hindustan Copper (up 8.6%) edged higher.
High Grade Copper for May 2016 delivery was currently off 0.49% at $2.2125 per pound on the COMEX.
Steel stocks rose after a foreign brokerage initiated coverage on Indian steel sector and assigned outperform rating on Tata Steel, JSW Steel and Jindal Steel and Power. JSW Steel (up 2.02%), Steel Authority of India (Sail) (up 4.05%) and Jindal Steel & Power (up 7.44%) rose. The brokerage reportedly cited factors such as bottoming out of inventory cycle, weakness in dollar and China demand stimulus among positives for the steel sector.
Tata Steel surged 6.87% on media reports that senior officials at the company's Port Talbot steelworks in UK have been briefed about a possible management buyout of the Port Talbot manufacturing facilities. According to media reports, Stuart Wilkie, Managing Director of Tata Strip Products UK, is heading up a buying team alongside other staff members. Reports suggested that Port Talbot is Tata Steel's biggest UK plant with about 4,000 workers.
Tata Steel Europe announced early this week that it has appointed Standard Chartered Bank as an additional adviser for the divestment of its entire holding in its British subsidiary Tata Steel UK. On 11 April 2016, Tata Steel Europe announced that the company has commenced the formal process for the divestment of its entire holding in its British subsidiary Tata Steel UK. Tata Steel Europe has decided to sell its entire holding in Tata Steel UK due to the deteriorating financial performance of the UK subsidiary.
On 18 April 2016, Tata Steel announced changes in leadership at Tata Steel UK. Bimlendra Jha, an Executive Committee member of Tata Steel Europe has been appointed as the Chief Executive Officer of Tata Steel UK. Jha is currently Executive Chairman of Tata Steel Europe's Long Products Europe business and has successfully led the divestment process that resulted in the signing of a sale and purchase agreement with Greybull Capital on 11 April 2016.
National Aluminium Company (Nalco) lost 3.21% after the company said that due to unavoidable reasons the meeting of board of directors scheduled to be held on 22 April 2016 to consider buyback of shares has been postponed. The new date of board meeting will be informed in due course, Nalco said. The announcement was made yesterday, 19 April 2016, when the stock market was closed for a holiday.
HDFC rose 1.2% after the company announced that it intends to sell up to 10% stake in its subsidiary HDFC Standard Life Insurance Company (HDFC Life) through offer for sale (OFS) in an initial public offer (IPO) of HDFC Life subject to market conditions. As on 31 March 2016, HDFC held 61.63% of the issued and paid-up share capital of HDFC Life. Post the sale of shares, HDFC Life would continue to be a subsidiary of HDFC.
HDFC Life reported profit after tax of Rs 818 crore on total income of Rs 17954 crore in the year ended 31 March 2016 (FY 2016). It reported gross premium income of Rs 16313 crore in FY 2016. Net worth as on 31 March 2016 was Rs 3150 crore.
Tata group stocks rose. Tata Chemicals (up 5.04%), Titan Company (up 3.91%), Tata Communications (up 2.83%), Tata power Company (up 1.56%) and Tata Global Beverages (up 1.25%) gained.
But TCS bucked the trend after the company reported a 50 basis points decline in its operating profit margin at 27.7% in Q4 March 2016 from 28.2% in Q3 December 2015. The stock shed 2.79%. On consolidated basis, the company's net profit rose 5% to Rs 6413.12 crore on 4% growth in sales to Rs 28448.61 crore in Q4 March 2016 over Q3 December 2015. Higher non-operational income or the so-called other income boosted TCS' bottom line during the quarter. Other income rose 32% to Rs 917.01 crore in Q4 March 2016 over Q3 December 2015. Operating profit rose 2% to Rs 7887.27 crore in Q4 March 2016 over Q3 December 2015. The result was announced after market hours on Monday, 18 April 2016. The stock market was closed yesterday, 19 April 2016, for a holiday.
TCS' top management in a post Q4 result conference call stated that with most of the headwinds behind, the company is well placed to deliver a strong performance in FY 2017. The management believes that TCS' scale and digital capability positions the company strongly to become the preferred digital partner for more and more clients and win a disproportionate share of their incremental digital spending. BFSI, North America and Continental Europe have shown very good resilience and have grown very well in Q4 March 2016 with a good exit, building up strong momentum going into FY 2017. The business in Latin America has turned the corner and has done very well during the last couple of quarters.
IT major Wipro gained 2.12% to Rs 601.65. The stock hit high of Rs 606.75 and low of Rs 589.55 in intraday trade. Wipro's consolidated net profit fell 2% to Rs 2240 crore on 12% rise in gross revenue to Rs 13630 crore in Q4 March 2016 over Q4 March 2015. The results are as per International Financial Reporting Standards (IFRS). The result was announced after market hours today, 20 April 2016. On an annualized basis, the employee attrition rate dropped to 14.9% in Q4 March 2016 from 16.3% in Q3 December 2015.
Revenue from IT services business rose 2.4% to $1,882 million in Q4 March 2016 over Q3 December 2015. On sequential basis, the company expects 1% to 3.02% growth in revenue from IT services business at between $1,901 million to $1,939 million in Q1 June 2016.
Wipro's board of directors approved a proposal to buyback up to 4 crore equity shares of the company for an aggregate amount of up to Rs 2500 crore, being 1.62% of the total paid up equity share capital. The buyback will be through the tender offer route at Rs 625 per share. The promoters of the company have indicated their intention to participate in the proposed buyback.
Bank stocks edged higher on renewed buying. Among private bank stocks, Axis Bank (up 3.13%), HDFC Bank (up 0.76%), Kotak Mahindra Bank (up 0.15%), ICICI Bank (up 0.59%), and IndusInd Bank (up 0.12%) gained. Yes Bank (down 1.3%) and Federal Bank (down 2.44%) declined.
Among PSU bank stocks, State Bank of India (SBI) (up 0.24%), Punjab National Bank (up 0.12%), Bank of Baroda (up 2.73%), Canara Bank (up 1.65%), IDBI Bank (up 0.77%) and Bank of India (up 2.16%) rose. Union Bank of India declined 0.66%.
Reserve Bank of India said in a notification issued on Monday, 18 April 2016, that commercial banks should normally provide for the entire amount due to the bank or for which the bank is liable (including in case of deposit accounts), immediately upon a fraud being detected. Banks have the option to make the provisions over a period of up to four quarters, commencing from the quarter in which the fraud has been detected. Banks shall make suitable disclosures with regard to number of frauds reported, amount involved in such frauds, quantum of provision made during the year and quantum of unamortised provision debited from 'other reserves' as at the end of the year, RBI said.
Stocks of oil exploration and production (E&P) firms edged higher after overnight gains in crude oil prices. ONGC (up 1.03%), Cairn India (up 0.67%) and Oil India (up 0.1%) edged higher. Higher crude oil prices would result in higher realization from crude sales for oil exploration firms.
Index heavyweight Reliance Industries (RIL) dropped 2.21% to Rs 1,038.30. The stock hit high of Rs 1,070 and low of Rs 1,035.35 in intraday trade.
Stocks of public sector oil marketing companies (PSU OMCs) edged lower after overnight gains in crude oil prices. BPCL (down 1.32%), HPCL (down 2.58%) and Indian Oil Corporation (down 1.3%) edged lower. Gains in crude oil prices could increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. The government has already decontrolled pricing of petrol and diesel.
Crude oil prices edged lower after overnight gains as investor focus returned to worries about oversupply after Kuwaiti workers ended a three-day strike that had halved the nation's crude output. Brent for June settlement was currently down 71 cents at $43.32 a barrel. The contract had risen $1.12 a barrel or 2.61% to settle at $44.03 a barrel during the previous trading session.
Meanwhile, the latest trade data showed that India's merchandise exports continue to see decline on year on year basis. Merchandise exports declined 5.47% to $22.71 billion in March 2016 over March 2015. Non-petroleum exports declined 3.49% to $20.63 billion in March 2016 over March 2015. The Ministry of Commerce & Industry said that the trend of falling exports is in tandem with other major world economies. Imports declined 21.56% to $27.78 billion in March 2016 over March 2015. Oil imports dropped 35.3% to $4.79 billion in March 2016 over March 2015. Non-oil imports fell 17.92% to $22.99 billion in March 2016 over March 2015. The trade deficit declined sharply to $5.07 billion in March 2016 from $11.39 billion in March 2015.
Reserve Bank of India Governor Raghuram Rajan reportedly said in a speech in Pune today, 20 April 2016, that he would not be euphoric if the country were to become the fastest growing large economy. Rajan said that implementation of several reforms would be key to ensuring India posts high growth. In a speech in New York, Rajan reportedly said early this week said that the central bank will continue to use currency intervention to reduce volatility in the country's exchange rates.
The Sensex rose for the fifth straight trading session. The barometer index has risen 1,170.34 points or 4.74% in five trading sessions from its close of 24,673.84 on 8 April 2016. The Sensex has risen 502.32 points or 1.98% in this month so far (till 20 April 2016). The Sensex has fallen 273.36 points or 1.04% in calendar year 2016 so far (till 20 April 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the Sensex has risen 3,349.57 points or 14.89%. The Sensex is off 2,734.15 points or 9.56% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 4,180.56 points or 13.92% from a record high of 30,024.74 hit on 4 March 2015.
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