Sensex, Nifty hit lowest closing level in almost 2 weeks
Fears that the US central bank may resume raising interest rates in the United States as early as next month pulled global stocks lower and Indian markets followed suit. The barometer index, the S&P BSE Sensex, lost 304.89 points or 1.19% to settle at 25,399.72. The losses for the Nifty 50 index were lower than those for the Sensex in percentage terms. The Nifty lost 86.75 points or 1.1% to settle at 7,783.40. After hovering in negative almost throughout the trading session, the Sensex and the Nifty extended losses in late trade. The two key benchmark indices dropped for the second day in a row. All the nineteen sectoral indices on BSE registered losses. The Sensex and the Nifty, both, hit their lowest closing level in almost two weeks.
World stocks edged lower after minutes from the US Federal Reserve's April policy meeting signalled the US central bank could raise rates as soon as next month if data supported the case that the American economy is getting stronger. The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 14-15 June 2016. Investors in emerging markets, including India are worried that higher interest rates in the US will drain liquidity from emerging markets and redirect it to developed economies. The US central bank had lifted rates in December 2015 for the first time in nearly a decade.
Stocks of public sector banks, oil exploration and production companies, telecom firms, metal and mining companies and index heavyweights ITC and HDFC led losses for the Sensex and the Nifty. Stocks of exploration and production companies declined as global crude oil prices dropped. Stocks of public sector oil marketing companies (PSU OMCs) rose as crude oil prices fell. Metal and mining stocks dropped as copper prices fell in global commodity markets.
Adani Ports and Special Economic Zone (APSEZ) tumbled after global credit rating firm Moody's Investors Service lowered outlook on the company's Baa3 issuer and senior unsecured rating to negative from stable. Castrol India edged lower after its UK-based parent Castrol Limited UK sold 11.5% stake in the company via open market transactions. Parag Milk Foods made a modest debut on the bourses.
In overseas stock markets, Asian and European stocks edged lower after minutes from the US Federal Reserve's April policy meeting signalled the US central bank could raise rates as soon as next month if data supported the case that the American economy is getting stronger. US stocks finished little-changed after seeing high intraday volatility yesterday, 18 May 2016, after minutes from the Federal Reserve's April 26-27 meeting indicated that most of its members are ready to lift rates as early as June if economic data points to stronger US second-quarter economic growth along with higher inflation and employment. Expectations of a rate hike soared after the release of the minutes yesterday, 18 May 2016. The Fed funds futures market is now pricing in a roughly 34% chance of a rate hike at the Federal Open Market Committee's (FOMC) next monetary policy meeting on 14-15 June 2016. Ahead of the release of the minutes, futures prices had indicated a June rate hike was unlikely. The US central bank had lifted rates in December 2015 for the first time in nearly a decade.
The Sensex lost 304.89 points or 1.19% to settle at 25,399.72, its lowest closing level since 6 May 2016. The index dropped 352.62 points or 1.37% at the day's low of 25,351.99. The index rose 9.95 points or 0.03% at the day's high of 25,714.56.
The Nifty lost 86.75 points or 1.1% to settle at 7,783.40, its lowest closing level since 6 May 2016. The index lost 103.35 points or 1.31% at the day's low of 7,766.80. The index rose 6.05 points or 0.07% at the day's high of 7,876.20.
All the nineteen sectoral indices on BSE registered losses. The S&P BSE Oil & Gas index (down 1.22%), the S&P BSE Capital Goods index (down 2.38%), the S&P BSE Finance index (down 1.48%), the S&P BSE Industrials index (down 1.42%), the S&P BSE Telecom index (down 1.35%), the S&P BSE Metal index (down 1.61%), the S&P BSE Energy index (down 1.49%),and the S&P BSE FMCG index (down 1.74%) underperformed the Sensex.
The S&P BSE Realty index (down 0.8%), the S&P BSE Bankex (down 1.2%), the S&P BSE Basic Materials index (down 1.17%), the S&P BSE Healthcare index (down 0.47%), the S&P BSE IT index (down 0.31%), the S&P BSE Consumer Durables index (down 1.04%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.83%), the S&P BSE Auto index (down 0.4%), the S&P BSE Power index (down 1.03%), the S&P BSE Utilities index (down 1.16%), and the S&P BSE Teck index (down 0.51%) outperformed the Sensex.
The market breadth indicating the overall health of the market was weak. On BSE, 1,628 shares fell and 918 shares rose. A total of 170 shares were unchanged. The BSE Mid-Cap index declined 1.12%. The BSE Small-Cap index lost 1.01%. The fall in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 5094 crore, higher than turnover of Rs 2613.94 crore registered during the previous trading session.
Stocks of exploration and production companies declined as global crude oil prices dropped. Cairn India (down 2.77%), Oil India (down 1.7%), and ONGC (down 2.05%) edged lower. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms. >P> Index heavyweight Reliance Industries shed 2.02% to Rs 950.55. The stock hit high of Rs 971.70 and low of Rs 946.15 in intraday trade.
Stocks of public sector oil marketing companies (PSU OMCs) rose as crude oil prices fell. BPCL (up 1.32%) and Indian Oil Corporation (up 1.11%) edged higher. HPCL fell 0.55%. Decline in crude oil prices will reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices. A weak rupee raises the cost of crude oil imports for PSU OMCs. The government has already decontrolled pricing of petrol and diesel.
In the global commodities markets, crude oil futures edged lower on rising US crude inventories, a stronger dollar and surging output from Iran to Europe and Asia. Brent for July settlement was currently down $1.12 a barrel at $47.81 a barrel. The contract had fallen 35 cents or 0.71% to settle at $48.93 a barrel during the previous trading session.
In the foreign exchange market, the partially convertible rupee was currently hovering at 67.365, compared with its close of 66.98 during the previous trading session.
Bharat Heavy Electricals (Bhel) shed 0.5% to Rs 119.20. The stock was volatile. The stock hit high of Rs 121.95 and low of Rs 118.40 in intraday trade. The company during market hours today, 19 May 2016, said that it has commissioned a 250 megawatts thermal power plant in Maharashtra.
Engineering and construction major L&T dropped 3.24% to Rs 1,267. The stock hit high of Rs 1,308.50 and low of Rs 1,261 in intraday trade.
Bank stocks dropped. Among public sector banks, Punjab National Bank (down 2.82%), Bank of Baroda (down 3.93%), State Bank of India (SBI) (down 4.05%), Union Bank of India (down 3.3%), Canara Bank (down 3.33%) and Bank of India (down 3.28%) edged lower.
Corporation Bank lost 4.35% after the bank reported net loss of Rs 510.97 crore in Q4 March 2016 compared with net profit of Rs 45.07 crore in Q4 March 2015. The result was announced after market hours yesterday, 18 May 2016. Corporation Bank's total income declined 3.1% to Rs 5218.62 crore in Q4 March 2016 over Q4 March 2015.
The bank's gross non-performing assets (NPA) stood at Rs 14544.25 crore as on 31 March 2016 as against Rs 10706.97 crore as on 31 December 2015 and Rs 7106.68 crore as on 31 March 2015. The ratio of gross NPA to gross advances stood at 9.98% as on 31 March 2016 as against 7.32% as on 31 December 2015 and 4.81% as on 31 March 2015. The ratio of net NPA to net advances stood at 6.53% as on 31 March 2016 as against 4.84% as on 31 December 2015 and 3.08% as on 31 March 2015.
The bank's provisions and contingencies jumped 111.6% to Rs 1960.21 crore in Q4 March 2016 over Q4 March 2015. Provision coverage ratio stood at 55.05% as on 31 March 2016.
Among private sector banks, Axis Bank (down 2.2%), HDFC Bank (down 0.35%), ICICI Bank (down 0.31%), Kotak Mahindra Bank (down 0.49%), Federal Bank (down 1.29%), Yes Bank (down 0.44%), and IndusInd Bank (down 0.89%) edged lower.
Index heavyweight and housing finance major HDFC lost 2.75% to Rs 1,175. The stock hit high of Rs 1,208.05 and low of Rs 1,173.50 in intraday trade.
Auto stocks were mixed. Mahindra & Mahindra (M&M) (down 1.06%), Ashok Leyland (down 0.29%), TVS Motor Company (down 0.88%), Eicher Motors (down 2.65%) and Bajaj Auto (down 1.04%) fell. Tata Motors (up 0.7%), Hero MotoCorp (up 0.21%) and Maruti Suzuki India (up 0.32%) gained.
Metal and mining stocks dropped as copper prices fell in global commodity markets. Tata Steel (down 0.85%), Vedanta (down 4.28%), National Aluminium Company (down 0.96%), Hindustan Zinc (down 0.6%), Jindal Steel & Power (down 1.95%), Hindalco Industries (down 2.3%), NMDC (down 2.76%), Steel Authority of India (Sail) (down 5.33%) and Hindustan Copper (down 0.87%) fell. JSW Steel rose 0.76%.
High Grade Copper for July 2016 delivery was currently off 1.08% at $2.056 per pound on the COMEX.
Telecom stocks fell. Bharti Airtel (down 1.69%), Idea Cellular (down 2.71%), MTNL (down 1.95%), Reliance Communications (down 0.59%) and Tata Teleservices (Maharashtra) (down 0.9%) declined.
Shares of Bharti Infratel rose 0.09%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Index heavyweight and cigarette major ITC fell 2.36% to Rs 325. The stock hit a high of Rs 332.85 and low of Rs 323.10 in intraday trade. The company is scheduled to announce its Q4 March 2016 results tomorrow, 20 May 2016.
Adani Ports and Special Economic Zone (APSEZ) tumbled after global credit rating firm Moody's Investors Service lowered outlook on the company's Baa3 issuer and senior unsecured rating to negative from stable. The stock shed 6.23%. The change in APSEZ's rating outlook to negative reflects the company's lower volume growth, mainly due to lower coal volumes and an increase in capital expenditure and financial leverage compared to Moody's previous expectations. The sharp decline in coal cargo for APSEZ's ports due to reduction in coal imports by India, together with some state-owned utilities shifting their cargo to government owned ports is likely to have material impact on the growth trajectory of APSEZ, the global rating agency said. The announcement was made during market hours today, 19 May 2016.
Pharma major Lupin rose 0.59% after consolidated net profit rose 47.5% to Rs 807.10 crore on 34% growth in net sales to Rs 4091.30 crore in Q4 March 2016 over Q4 March 2015. The Q4 March 2016 results are not strictly comparable with Q4 March 2015 results due to the acquisition of GAVIS Pharmaceuticals LLC, USA, Novel Laboratories, Inc., USA and VGS Holdings, Inc., USA (GAVIS) with effect from 8 March 2016. Lupin announced the fourth quarter results during market hours today, 19 May 2016.
Commenting on the company's financial performance, Nilesh Gupta, Managing Director of Lupin said that Q4 March 2016 witnessed robust growth across all key markets. Record approvals and significant launches have enabled Lupin to deliver its best results yet and the company is back on the growth path, Gupta said. He said that the company will continue to ramp up its investments in research and is focused on building pipelines in niche high-value areas such as inhalation, biosimilars and complex injectables.
Castrol India fell 2.36% to Rs 376.15 after its UK-based parent Castrol Limited UK sold 5.68 crore shares or 11.5% stake in the company via open market transactions today, 19 May 2016. The stock hit a high of Rs 381 and a low of Rs 364.40 in intraday trade. The counter clocked huge volume of 6.79 crore shares on BSE as compared with two-week average daily volume of 1.71 lakh shares. After the latest share sale, Castrol Limited UK's stake in Castrol India has declined to 59.42% from 70.92%.
Shares of Parag Milk Foods settled at Rs 247.80 on BSE, a premium of 14.88% over the initial public offer price of Rs 215. The stock debuted at Rs 215.70, a premium of 0.33% over the initial public offer (IPO) price. The stock hit a high of Rs 250 and low of Rs 215.70 in intraday trade. On BSE, 44.25 lakh shares were traded on the counter. Parag Milk Foods is one of the leading manufacturers and marketers of dairy-based branded foods in India.
The Sensex and the Nifty edged lower for the second day in a row. The Sensex has fallen 373.89 points or 1.45% in two trading sessions from its close of 25,773.61 on 17 May 2016. The Sensex has fallen 206.90 points or 0.8% in this month so far (till 19 May 2016). The Sensex has fallen 717.82 points or 2.74% in calendar year 2016 so far (till 19 May 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 2,905.11 points or 12.91%. The Sensex is off 3,178.61 points or 11.12% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 4,625.02 points or 15.4% from a record high of 30,024.74 hit on 4 March 2015.
On the political front, the trends announced so far for assembly election in Assam showed that Bharatiya Janata Party (BJP), Asom Gana Parishad and Bodoland People's Front alliance was set to form government in the state dislodging Congress, which has ruled the state for three consecutive terms. The trends for the assembly election in West Bengal showed that Chief Minister Mamata Banerjee was all set to retain power in the state with her party Trinamool Congress heading for an emphatic victory. In Tamil Nadu, the trends showed that All India Anna Dravida Munnetra Kazhagam (AIADMK) was set to retain power in the state. In Kerala, the trends showed that the Communist Party of India-Marxist (CPM)-led Left Democratic Front (LDF) alliance was set to oust Congress led United Democratic Front coalition government. The counting of votes for the assembly elections in these four states is underway with final results expected later in the day. The Congress-DMK alliance has emerged victorious in the election for the Union territory of Puducherry.
A win for the BJP led coalition in Assam will put BJP in the right shape for the 2017 assembly election in Uttar Pradesh (UP). The UP assembly has 403 seats. The number of seats in Rajya Sabha, or the upper house of parliament, depends on representation in states. A lack of a majority for the BJP led National Democratic Alliance (NDA) in the Rajya Sabha has delayed passage of a key tax reform bill viz. the Goods and Services Tax (GST) bill in the upper house. The NDA rules the central government after an emphatic victory in the 2014 Lok Sabha election.
Finance Minister Arun Jaitley said in an interview to All India Radio recently that the GST Bill will be put to vote in the monsoon session of Parliament if Congress continues to oppose the Legislation. The GST bill, which has been approved by the Lok Sabha, is pending in the Rajya Sabha because of stiff resistance by the Congress. For the GST bill to become a law, the GST bill also needs to be approved by half the state assemblies.
World stocks edged lower after minutes from the US Federal Reserve's April policy meeting signalled the US central bank could raise rates as soon as next month if data supported the case that the American economy is getting stronger. The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 14-15 June 2016. Investors in emerging markets, including India are worried that higher interest rates in the US will drain liquidity from emerging markets and redirect it to developed economies. The US central bank had lifted rates in December 2015 for the first time in nearly a decade.
Stocks of public sector banks, oil exploration and production companies, telecom firms, metal and mining companies and index heavyweights ITC and HDFC led losses for the Sensex and the Nifty. Stocks of exploration and production companies declined as global crude oil prices dropped. Stocks of public sector oil marketing companies (PSU OMCs) rose as crude oil prices fell. Metal and mining stocks dropped as copper prices fell in global commodity markets.
Adani Ports and Special Economic Zone (APSEZ) tumbled after global credit rating firm Moody's Investors Service lowered outlook on the company's Baa3 issuer and senior unsecured rating to negative from stable. Castrol India edged lower after its UK-based parent Castrol Limited UK sold 11.5% stake in the company via open market transactions. Parag Milk Foods made a modest debut on the bourses.
In overseas stock markets, Asian and European stocks edged lower after minutes from the US Federal Reserve's April policy meeting signalled the US central bank could raise rates as soon as next month if data supported the case that the American economy is getting stronger. US stocks finished little-changed after seeing high intraday volatility yesterday, 18 May 2016, after minutes from the Federal Reserve's April 26-27 meeting indicated that most of its members are ready to lift rates as early as June if economic data points to stronger US second-quarter economic growth along with higher inflation and employment. Expectations of a rate hike soared after the release of the minutes yesterday, 18 May 2016. The Fed funds futures market is now pricing in a roughly 34% chance of a rate hike at the Federal Open Market Committee's (FOMC) next monetary policy meeting on 14-15 June 2016. Ahead of the release of the minutes, futures prices had indicated a June rate hike was unlikely. The US central bank had lifted rates in December 2015 for the first time in nearly a decade.
The Sensex lost 304.89 points or 1.19% to settle at 25,399.72, its lowest closing level since 6 May 2016. The index dropped 352.62 points or 1.37% at the day's low of 25,351.99. The index rose 9.95 points or 0.03% at the day's high of 25,714.56.
The Nifty lost 86.75 points or 1.1% to settle at 7,783.40, its lowest closing level since 6 May 2016. The index lost 103.35 points or 1.31% at the day's low of 7,766.80. The index rose 6.05 points or 0.07% at the day's high of 7,876.20.
All the nineteen sectoral indices on BSE registered losses. The S&P BSE Oil & Gas index (down 1.22%), the S&P BSE Capital Goods index (down 2.38%), the S&P BSE Finance index (down 1.48%), the S&P BSE Industrials index (down 1.42%), the S&P BSE Telecom index (down 1.35%), the S&P BSE Metal index (down 1.61%), the S&P BSE Energy index (down 1.49%),and the S&P BSE FMCG index (down 1.74%) underperformed the Sensex.
The S&P BSE Realty index (down 0.8%), the S&P BSE Bankex (down 1.2%), the S&P BSE Basic Materials index (down 1.17%), the S&P BSE Healthcare index (down 0.47%), the S&P BSE IT index (down 0.31%), the S&P BSE Consumer Durables index (down 1.04%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.83%), the S&P BSE Auto index (down 0.4%), the S&P BSE Power index (down 1.03%), the S&P BSE Utilities index (down 1.16%), and the S&P BSE Teck index (down 0.51%) outperformed the Sensex.
The market breadth indicating the overall health of the market was weak. On BSE, 1,628 shares fell and 918 shares rose. A total of 170 shares were unchanged. The BSE Mid-Cap index declined 1.12%. The BSE Small-Cap index lost 1.01%. The fall in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 5094 crore, higher than turnover of Rs 2613.94 crore registered during the previous trading session.
Stocks of exploration and production companies declined as global crude oil prices dropped. Cairn India (down 2.77%), Oil India (down 1.7%), and ONGC (down 2.05%) edged lower. Lower crude oil prices will result in lower realization from crude sales for oil exploration firms. >P> Index heavyweight Reliance Industries shed 2.02% to Rs 950.55. The stock hit high of Rs 971.70 and low of Rs 946.15 in intraday trade.
Stocks of public sector oil marketing companies (PSU OMCs) rose as crude oil prices fell. BPCL (up 1.32%) and Indian Oil Corporation (up 1.11%) edged higher. HPCL fell 0.55%. Decline in crude oil prices will reduce under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at government controlled prices. However, a weakness in rupee against the dollar will restrict the benefit of falling global crude oil prices. A weak rupee raises the cost of crude oil imports for PSU OMCs. The government has already decontrolled pricing of petrol and diesel.
In the global commodities markets, crude oil futures edged lower on rising US crude inventories, a stronger dollar and surging output from Iran to Europe and Asia. Brent for July settlement was currently down $1.12 a barrel at $47.81 a barrel. The contract had fallen 35 cents or 0.71% to settle at $48.93 a barrel during the previous trading session.
In the foreign exchange market, the partially convertible rupee was currently hovering at 67.365, compared with its close of 66.98 during the previous trading session.
Bharat Heavy Electricals (Bhel) shed 0.5% to Rs 119.20. The stock was volatile. The stock hit high of Rs 121.95 and low of Rs 118.40 in intraday trade. The company during market hours today, 19 May 2016, said that it has commissioned a 250 megawatts thermal power plant in Maharashtra.
Engineering and construction major L&T dropped 3.24% to Rs 1,267. The stock hit high of Rs 1,308.50 and low of Rs 1,261 in intraday trade.
Bank stocks dropped. Among public sector banks, Punjab National Bank (down 2.82%), Bank of Baroda (down 3.93%), State Bank of India (SBI) (down 4.05%), Union Bank of India (down 3.3%), Canara Bank (down 3.33%) and Bank of India (down 3.28%) edged lower.
Corporation Bank lost 4.35% after the bank reported net loss of Rs 510.97 crore in Q4 March 2016 compared with net profit of Rs 45.07 crore in Q4 March 2015. The result was announced after market hours yesterday, 18 May 2016. Corporation Bank's total income declined 3.1% to Rs 5218.62 crore in Q4 March 2016 over Q4 March 2015.
The bank's gross non-performing assets (NPA) stood at Rs 14544.25 crore as on 31 March 2016 as against Rs 10706.97 crore as on 31 December 2015 and Rs 7106.68 crore as on 31 March 2015. The ratio of gross NPA to gross advances stood at 9.98% as on 31 March 2016 as against 7.32% as on 31 December 2015 and 4.81% as on 31 March 2015. The ratio of net NPA to net advances stood at 6.53% as on 31 March 2016 as against 4.84% as on 31 December 2015 and 3.08% as on 31 March 2015.
The bank's provisions and contingencies jumped 111.6% to Rs 1960.21 crore in Q4 March 2016 over Q4 March 2015. Provision coverage ratio stood at 55.05% as on 31 March 2016.
Among private sector banks, Axis Bank (down 2.2%), HDFC Bank (down 0.35%), ICICI Bank (down 0.31%), Kotak Mahindra Bank (down 0.49%), Federal Bank (down 1.29%), Yes Bank (down 0.44%), and IndusInd Bank (down 0.89%) edged lower.
Index heavyweight and housing finance major HDFC lost 2.75% to Rs 1,175. The stock hit high of Rs 1,208.05 and low of Rs 1,173.50 in intraday trade.
Auto stocks were mixed. Mahindra & Mahindra (M&M) (down 1.06%), Ashok Leyland (down 0.29%), TVS Motor Company (down 0.88%), Eicher Motors (down 2.65%) and Bajaj Auto (down 1.04%) fell. Tata Motors (up 0.7%), Hero MotoCorp (up 0.21%) and Maruti Suzuki India (up 0.32%) gained.
Metal and mining stocks dropped as copper prices fell in global commodity markets. Tata Steel (down 0.85%), Vedanta (down 4.28%), National Aluminium Company (down 0.96%), Hindustan Zinc (down 0.6%), Jindal Steel & Power (down 1.95%), Hindalco Industries (down 2.3%), NMDC (down 2.76%), Steel Authority of India (Sail) (down 5.33%) and Hindustan Copper (down 0.87%) fell. JSW Steel rose 0.76%.
High Grade Copper for July 2016 delivery was currently off 1.08% at $2.056 per pound on the COMEX.
Telecom stocks fell. Bharti Airtel (down 1.69%), Idea Cellular (down 2.71%), MTNL (down 1.95%), Reliance Communications (down 0.59%) and Tata Teleservices (Maharashtra) (down 0.9%) declined.
Shares of Bharti Infratel rose 0.09%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Index heavyweight and cigarette major ITC fell 2.36% to Rs 325. The stock hit a high of Rs 332.85 and low of Rs 323.10 in intraday trade. The company is scheduled to announce its Q4 March 2016 results tomorrow, 20 May 2016.
Adani Ports and Special Economic Zone (APSEZ) tumbled after global credit rating firm Moody's Investors Service lowered outlook on the company's Baa3 issuer and senior unsecured rating to negative from stable. The stock shed 6.23%. The change in APSEZ's rating outlook to negative reflects the company's lower volume growth, mainly due to lower coal volumes and an increase in capital expenditure and financial leverage compared to Moody's previous expectations. The sharp decline in coal cargo for APSEZ's ports due to reduction in coal imports by India, together with some state-owned utilities shifting their cargo to government owned ports is likely to have material impact on the growth trajectory of APSEZ, the global rating agency said. The announcement was made during market hours today, 19 May 2016.
Pharma major Lupin rose 0.59% after consolidated net profit rose 47.5% to Rs 807.10 crore on 34% growth in net sales to Rs 4091.30 crore in Q4 March 2016 over Q4 March 2015. The Q4 March 2016 results are not strictly comparable with Q4 March 2015 results due to the acquisition of GAVIS Pharmaceuticals LLC, USA, Novel Laboratories, Inc., USA and VGS Holdings, Inc., USA (GAVIS) with effect from 8 March 2016. Lupin announced the fourth quarter results during market hours today, 19 May 2016.
Commenting on the company's financial performance, Nilesh Gupta, Managing Director of Lupin said that Q4 March 2016 witnessed robust growth across all key markets. Record approvals and significant launches have enabled Lupin to deliver its best results yet and the company is back on the growth path, Gupta said. He said that the company will continue to ramp up its investments in research and is focused on building pipelines in niche high-value areas such as inhalation, biosimilars and complex injectables.
Castrol India fell 2.36% to Rs 376.15 after its UK-based parent Castrol Limited UK sold 5.68 crore shares or 11.5% stake in the company via open market transactions today, 19 May 2016. The stock hit a high of Rs 381 and a low of Rs 364.40 in intraday trade. The counter clocked huge volume of 6.79 crore shares on BSE as compared with two-week average daily volume of 1.71 lakh shares. After the latest share sale, Castrol Limited UK's stake in Castrol India has declined to 59.42% from 70.92%.
Shares of Parag Milk Foods settled at Rs 247.80 on BSE, a premium of 14.88% over the initial public offer price of Rs 215. The stock debuted at Rs 215.70, a premium of 0.33% over the initial public offer (IPO) price. The stock hit a high of Rs 250 and low of Rs 215.70 in intraday trade. On BSE, 44.25 lakh shares were traded on the counter. Parag Milk Foods is one of the leading manufacturers and marketers of dairy-based branded foods in India.
The Sensex and the Nifty edged lower for the second day in a row. The Sensex has fallen 373.89 points or 1.45% in two trading sessions from its close of 25,773.61 on 17 May 2016. The Sensex has fallen 206.90 points or 0.8% in this month so far (till 19 May 2016). The Sensex has fallen 717.82 points or 2.74% in calendar year 2016 so far (till 19 May 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 2,905.11 points or 12.91%. The Sensex is off 3,178.61 points or 11.12% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 4,625.02 points or 15.4% from a record high of 30,024.74 hit on 4 March 2015.
On the political front, the trends announced so far for assembly election in Assam showed that Bharatiya Janata Party (BJP), Asom Gana Parishad and Bodoland People's Front alliance was set to form government in the state dislodging Congress, which has ruled the state for three consecutive terms. The trends for the assembly election in West Bengal showed that Chief Minister Mamata Banerjee was all set to retain power in the state with her party Trinamool Congress heading for an emphatic victory. In Tamil Nadu, the trends showed that All India Anna Dravida Munnetra Kazhagam (AIADMK) was set to retain power in the state. In Kerala, the trends showed that the Communist Party of India-Marxist (CPM)-led Left Democratic Front (LDF) alliance was set to oust Congress led United Democratic Front coalition government. The counting of votes for the assembly elections in these four states is underway with final results expected later in the day. The Congress-DMK alliance has emerged victorious in the election for the Union territory of Puducherry.
A win for the BJP led coalition in Assam will put BJP in the right shape for the 2017 assembly election in Uttar Pradesh (UP). The UP assembly has 403 seats. The number of seats in Rajya Sabha, or the upper house of parliament, depends on representation in states. A lack of a majority for the BJP led National Democratic Alliance (NDA) in the Rajya Sabha has delayed passage of a key tax reform bill viz. the Goods and Services Tax (GST) bill in the upper house. The NDA rules the central government after an emphatic victory in the 2014 Lok Sabha election.
Finance Minister Arun Jaitley said in an interview to All India Radio recently that the GST Bill will be put to vote in the monsoon session of Parliament if Congress continues to oppose the Legislation. The GST bill, which has been approved by the Lok Sabha, is pending in the Rajya Sabha because of stiff resistance by the Congress. For the GST bill to become a law, the GST bill also needs to be approved by half the state assemblies.
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