Market registers modest losses
Key benchmark indices registered modest losses in the first trading session of the week. The barometer index, the S&P BSE Sensex lost 89.84 points or 0.32% to settle at 27,746.66. The Nifty 50 index lost 32.70 points or 0.38% to settle at 8,508.70. The Sensex settled below the psychologically important 28,000 mark after flirting with that level earlier during the session. The Sensex and Nifty hit one-week closing low. Losses in public sector bank stocks and telecom stocks led losses for key indices. Market slipped into the red in late trade.
Shares of public sector oil marketing companies (PSU OMCs) declined after announcing a slash in petrol and diesel prices. Axis Bank rose after the Reserve Bank of India (RBI) on Friday, 15 July 2016, notified increase in foreign investment ceiling in the bank. Bharti Airtel fell after the company announced an effective reduction in pre-paid data tariffs by increasing data benefits on some of its pre-paid data recharge packs with effect from 17 July 2016.
In overseas markets, European stocks edged lower as investors digest a number of geopolitical events including the failed coup in Turkey. Asian stocks edged higher ahead of a relatively data-light week in the region, while investors had a muted reaction to the risks surrounding a failed military coup in Turkey. In the US market, the Dow Jones Industrial Average edged higher on Friday, 15 July 2016, to post its fourth straight record close, while the S&P 500 broke its winning streak as the rally lost strength ahead of the weekend. The Nasdaq Composite Index shed 4.47 points to 5,029.59 but finished the week 1.5% higher.
The Sensex lost 89.84 points or 0.32% to settle at 27,746.66, its lowest closing level since 11 July 2016. The index rose 177 points or 0.63% at the day's high of 28,013.50. The index fell 138.81 points or 0.49% at the day's low of 27,697.69.
The Nifty fell 32.70 points or 0.38% to settle at 8,508.70, its lowest closing level since 11 July 2016. The index rose 45.70 points or 0.53% at the day's high of 8,587.10. The index fell 47.05 points, or 0.55% at the day's low of 8,494.35.
The BSE Mid-Cap index lost 0.62%. The BSE Small-Cap index fell 0.48%. The losses for both these indices were higher in percentage terms than those for the Sensex.
The market breadth indicating the overall health of the market was weak. On BSE, 1,640 shares declined and 1,092 shares rose. A total of 181 shares were unchanged.
The total turnover on BSE amounted to Rs 3031.86 crore, lower than turnover of Rs 3913.55 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Telecom index (down 3.23%), the BSE Metal index (down 1.04%) and the BSE Oil & Gas index (down 1.61%) underperformed the Sensex. The BSE IT index (up 0.3%) and the BSE Auto index (up 0.35%) outperformed the Sensex.
Stocks of public sector banks edged lower. Canara Bank (down 3.8%), Bank of Baroda (down 3.28%), Bank of India (down 3.53%), IDBI Bank (down 2.34%), Punjab National Bank (down 2.57%), State Bank of India (down 1.25%) and Union Bank of India (down 1%) declined.
Stocks of private sector banks were mixed. Kotak Mahindra Bank (up 0.54%), IndusInd Bank (up 0.52%) and HDFC Bank (up 0.58%) edged higher. Yes Bank (down 0.36%) edged lower.
ICICI Bank fell 0.6% at Rs 263.60. The bank said that its subsidiary company, ICICI Prudential Life Insurance Company, has filed a draft red herring prospectus with the Securities and Exchange Board of India for a public offer of up to 18.13 crore equity shares of ICICI Prudential Life Insurance Company, representing approximately 12.65% of its equity share capital, for cash, through an offer for sale by ICICI Bank. The offer includes a proposed reservation of up to 1.81 crore equity shares or 10% of the offer for individual and Hindu Undivided Family (HUF) shareholders of ICICI Bank. The announcement was made during market hours today, 18 July 2016.
Axis Bank rose rose 0.94% at Rs 570.05 after the Reserve Bank of India (RBI) on Friday, 15 July 2016, notified increase in foreign investment ceiling in the bank. RBI on Friday, 15 July 2016 notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 74% from existing 62% of the paid up capital of the bank under the Portfolio Investment Scheme (PIS). The central bank notified that the total foreign investment in the bank shall not exceed 74% of paid up capital. The RBI has stated that the Axis Bank has passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges.
IDFC Bank rose 1.07% at Rs 52.05 after the Reserve Bank of India (RBI) allowed foreign investors to enhance investment in the company from the existing 24% to 46%. RBI on Friday, 15 July 2016 notified that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now enhance investment from existing 24% to 46% of the paid up capital of IDFC Bank under the portfolio investment scheme (PIS). The RBI further notified that the total foreign investment from all sources i.e. foreign institutional investors (FII)/registered foreign portfolios investors (RFPIs)/foreign direct investment (FDI)/non-resident Indians (NRI)/persons of Indian origin (PIO)/American depository receipts (ADR)/Global depository receipts (GDR)/ in IDFC Bank shall not exceed 46%. The RBI has stated that IDFC Bank has passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges.
Telecom stocks slumped. Idea Cellular (down 6.52%) and Reliance Communications (down 4.45%) edged lower.
Bharti Airtel fell 3.98% at Rs 363.45 after the company announced an effective reduction in pre-paid data tariffs by increasing data benefits on some of its pre-paid data recharge packs with effect from 17 July 2016. Airtel customers will now enjoy more value on these existing packs and can add to their mobile internet experience by staying online longer and download more of their favorite content, the company said.
Under the revised data benefits, the Rs 655 4G/3G monthly recharge pack will now offer 5 GB data vs 3 GB earlier, an increase of 67%. Similarly, the Rs 455 pack 4G/3G pack now offers 50% more data by increasing data benefit to 3 GB from 2 GB. The Rs 989 4G/3G pack will now offer 10 GB data vs 6.5 GB earlier, offering 54% more benefits. 2G/3G/4G Sachet Packs also see major increase in benefits. The Rs 25 2G pack now offers 45% more data at 145 MB vs 100 MB earlier, while the Rs 145 4G/3G pack now offers 32% more data benefits at 580 MB vs 440 MB earlier. Even the Rs 5 one day 2G data pack benefits have been increased by 48% to 30 MB keeping in mind non-regular/first time users, particularly in rural markets.
Bharti Infratel was down 1.02%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Shares of public sector oil marketing companies (PSU OMCs) declined after announcing a slash in petrol and diesel prices. BPCL (down 0.14%), HPCL (down 0.75%) and Indian Oil Corporation (down 1.12%) edged lower. Indian Oil Corporation (IOCL) on Friday, 15 July 2016, announced a decrease in the price of petrol and diesel with effect from the midnight of 15/16 July 2016. Petrol price was decreased by Rs 2.25 per litre and diesel price was dropped by Rs 0.42 a litre at Delhi (including state levies) with corresponding price revision in other states. After the latest revision, petrol in Delhi costs Rs 62.51 per litre and diesel costs Rs 54.28 a litre.
Index heavyweight Reliance Industries fell 0.82% at Rs 1,004.25. The company's consolidated net profit rose 18.1% to Rs 7113 crore on 13.4% decline in turnover to Rs 71451 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Friday, 15 July 2016.
RIL's earnings before interest and tax (EBIT) margin rose by 2.41% to 10.7% in Q1 June 2016 from 8.29% in Q1 June 2015. Decline in revenue was led by the 26% decline in benchmark Brent crude oil price which averaged at $45.6 per barrel in Q1 June 2016 as compared to $61.9 per barrel in Q1 June 2015. Impact of lower prices was partially offset by higher volumes in refining and petrochemicals segments. Gross refining margin rose to $11.5 per barrel in Q1 June 2016 from $10.4 per barrel in Q1 June 2015. Profit before depreciation, interest and tax (PBDIT) increased by 16.7% to Rs 13589 crore in Q1 June 2016 over Q1 June 2015. Strong operating performance from refining and petrochemicals businesses coupled with favorable exchange rate movement enhanced the operating profit. This was partially offset by lower contribution from Oil & Gas business due to lower volumes and weak price environment. Other income was higher at Rs 2378 crore in Q1 June 2016 as against Rs 1584 crore in Q1 June 2015 due to higher interest income and profit on sale of investments.
Reliance Jio Infocomm (RJIL), a subsidiary of RIL, is rolling out a state-of-the-art pan India digital services business. The test program of RJIL's digital services will be progressively upgraded into commercial operations in coming months.
FMCG major Hindustan Unilever (HUL) fell 2.04% at Rs 920.45. The company's net profit rose 9.79% to Rs 1173.90 crore on 3.36% growth in total income to Rs 8235.77 crore in Q1 June 2016 over Q1 June 2015. The result hit the market during the fag end of trading hours today, 18 July 2016.
The Sensex and Nifty dropped for the second straight trading session. The Sensex has dropped 195.45 points or 0.69% in in two sessions from a close of 27,942.11 on 14 July 2016. The Sensex has risen 746.94 points or 2.76% in this month so far (till 18 July 2016). The Sensex has risen 1,629.12 points or 6.23% in calendar year 2016 so far (till 18 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,252.05 points or 23.34%. The Sensex is off 831.67 points or 2.91% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 2,278.08 points or 7.58% from a record high of 30,024.74 hit on 4 March 2015.
Shares of public sector oil marketing companies (PSU OMCs) declined after announcing a slash in petrol and diesel prices. Axis Bank rose after the Reserve Bank of India (RBI) on Friday, 15 July 2016, notified increase in foreign investment ceiling in the bank. Bharti Airtel fell after the company announced an effective reduction in pre-paid data tariffs by increasing data benefits on some of its pre-paid data recharge packs with effect from 17 July 2016.
In overseas markets, European stocks edged lower as investors digest a number of geopolitical events including the failed coup in Turkey. Asian stocks edged higher ahead of a relatively data-light week in the region, while investors had a muted reaction to the risks surrounding a failed military coup in Turkey. In the US market, the Dow Jones Industrial Average edged higher on Friday, 15 July 2016, to post its fourth straight record close, while the S&P 500 broke its winning streak as the rally lost strength ahead of the weekend. The Nasdaq Composite Index shed 4.47 points to 5,029.59 but finished the week 1.5% higher.
The Sensex lost 89.84 points or 0.32% to settle at 27,746.66, its lowest closing level since 11 July 2016. The index rose 177 points or 0.63% at the day's high of 28,013.50. The index fell 138.81 points or 0.49% at the day's low of 27,697.69.
The Nifty fell 32.70 points or 0.38% to settle at 8,508.70, its lowest closing level since 11 July 2016. The index rose 45.70 points or 0.53% at the day's high of 8,587.10. The index fell 47.05 points, or 0.55% at the day's low of 8,494.35.
The BSE Mid-Cap index lost 0.62%. The BSE Small-Cap index fell 0.48%. The losses for both these indices were higher in percentage terms than those for the Sensex.
The market breadth indicating the overall health of the market was weak. On BSE, 1,640 shares declined and 1,092 shares rose. A total of 181 shares were unchanged.
The total turnover on BSE amounted to Rs 3031.86 crore, lower than turnover of Rs 3913.55 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Telecom index (down 3.23%), the BSE Metal index (down 1.04%) and the BSE Oil & Gas index (down 1.61%) underperformed the Sensex. The BSE IT index (up 0.3%) and the BSE Auto index (up 0.35%) outperformed the Sensex.
Stocks of public sector banks edged lower. Canara Bank (down 3.8%), Bank of Baroda (down 3.28%), Bank of India (down 3.53%), IDBI Bank (down 2.34%), Punjab National Bank (down 2.57%), State Bank of India (down 1.25%) and Union Bank of India (down 1%) declined.
Stocks of private sector banks were mixed. Kotak Mahindra Bank (up 0.54%), IndusInd Bank (up 0.52%) and HDFC Bank (up 0.58%) edged higher. Yes Bank (down 0.36%) edged lower.
ICICI Bank fell 0.6% at Rs 263.60. The bank said that its subsidiary company, ICICI Prudential Life Insurance Company, has filed a draft red herring prospectus with the Securities and Exchange Board of India for a public offer of up to 18.13 crore equity shares of ICICI Prudential Life Insurance Company, representing approximately 12.65% of its equity share capital, for cash, through an offer for sale by ICICI Bank. The offer includes a proposed reservation of up to 1.81 crore equity shares or 10% of the offer for individual and Hindu Undivided Family (HUF) shareholders of ICICI Bank. The announcement was made during market hours today, 18 July 2016.
Axis Bank rose rose 0.94% at Rs 570.05 after the Reserve Bank of India (RBI) on Friday, 15 July 2016, notified increase in foreign investment ceiling in the bank. RBI on Friday, 15 July 2016 notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 74% from existing 62% of the paid up capital of the bank under the Portfolio Investment Scheme (PIS). The central bank notified that the total foreign investment in the bank shall not exceed 74% of paid up capital. The RBI has stated that the Axis Bank has passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges.
IDFC Bank rose 1.07% at Rs 52.05 after the Reserve Bank of India (RBI) allowed foreign investors to enhance investment in the company from the existing 24% to 46%. RBI on Friday, 15 July 2016 notified that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now enhance investment from existing 24% to 46% of the paid up capital of IDFC Bank under the portfolio investment scheme (PIS). The RBI further notified that the total foreign investment from all sources i.e. foreign institutional investors (FII)/registered foreign portfolios investors (RFPIs)/foreign direct investment (FDI)/non-resident Indians (NRI)/persons of Indian origin (PIO)/American depository receipts (ADR)/Global depository receipts (GDR)/ in IDFC Bank shall not exceed 46%. The RBI has stated that IDFC Bank has passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges.
Telecom stocks slumped. Idea Cellular (down 6.52%) and Reliance Communications (down 4.45%) edged lower.
Bharti Airtel fell 3.98% at Rs 363.45 after the company announced an effective reduction in pre-paid data tariffs by increasing data benefits on some of its pre-paid data recharge packs with effect from 17 July 2016. Airtel customers will now enjoy more value on these existing packs and can add to their mobile internet experience by staying online longer and download more of their favorite content, the company said.
Under the revised data benefits, the Rs 655 4G/3G monthly recharge pack will now offer 5 GB data vs 3 GB earlier, an increase of 67%. Similarly, the Rs 455 pack 4G/3G pack now offers 50% more data by increasing data benefit to 3 GB from 2 GB. The Rs 989 4G/3G pack will now offer 10 GB data vs 6.5 GB earlier, offering 54% more benefits. 2G/3G/4G Sachet Packs also see major increase in benefits. The Rs 25 2G pack now offers 45% more data at 145 MB vs 100 MB earlier, while the Rs 145 4G/3G pack now offers 32% more data benefits at 580 MB vs 440 MB earlier. Even the Rs 5 one day 2G data pack benefits have been increased by 48% to 30 MB keeping in mind non-regular/first time users, particularly in rural markets.
Bharti Infratel was down 1.02%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
Shares of public sector oil marketing companies (PSU OMCs) declined after announcing a slash in petrol and diesel prices. BPCL (down 0.14%), HPCL (down 0.75%) and Indian Oil Corporation (down 1.12%) edged lower. Indian Oil Corporation (IOCL) on Friday, 15 July 2016, announced a decrease in the price of petrol and diesel with effect from the midnight of 15/16 July 2016. Petrol price was decreased by Rs 2.25 per litre and diesel price was dropped by Rs 0.42 a litre at Delhi (including state levies) with corresponding price revision in other states. After the latest revision, petrol in Delhi costs Rs 62.51 per litre and diesel costs Rs 54.28 a litre.
Index heavyweight Reliance Industries fell 0.82% at Rs 1,004.25. The company's consolidated net profit rose 18.1% to Rs 7113 crore on 13.4% decline in turnover to Rs 71451 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Friday, 15 July 2016.
RIL's earnings before interest and tax (EBIT) margin rose by 2.41% to 10.7% in Q1 June 2016 from 8.29% in Q1 June 2015. Decline in revenue was led by the 26% decline in benchmark Brent crude oil price which averaged at $45.6 per barrel in Q1 June 2016 as compared to $61.9 per barrel in Q1 June 2015. Impact of lower prices was partially offset by higher volumes in refining and petrochemicals segments. Gross refining margin rose to $11.5 per barrel in Q1 June 2016 from $10.4 per barrel in Q1 June 2015. Profit before depreciation, interest and tax (PBDIT) increased by 16.7% to Rs 13589 crore in Q1 June 2016 over Q1 June 2015. Strong operating performance from refining and petrochemicals businesses coupled with favorable exchange rate movement enhanced the operating profit. This was partially offset by lower contribution from Oil & Gas business due to lower volumes and weak price environment. Other income was higher at Rs 2378 crore in Q1 June 2016 as against Rs 1584 crore in Q1 June 2015 due to higher interest income and profit on sale of investments.
Reliance Jio Infocomm (RJIL), a subsidiary of RIL, is rolling out a state-of-the-art pan India digital services business. The test program of RJIL's digital services will be progressively upgraded into commercial operations in coming months.
FMCG major Hindustan Unilever (HUL) fell 2.04% at Rs 920.45. The company's net profit rose 9.79% to Rs 1173.90 crore on 3.36% growth in total income to Rs 8235.77 crore in Q1 June 2016 over Q1 June 2015. The result hit the market during the fag end of trading hours today, 18 July 2016.
The Sensex and Nifty dropped for the second straight trading session. The Sensex has dropped 195.45 points or 0.69% in in two sessions from a close of 27,942.11 on 14 July 2016. The Sensex has risen 746.94 points or 2.76% in this month so far (till 18 July 2016). The Sensex has risen 1,629.12 points or 6.23% in calendar year 2016 so far (till 18 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,252.05 points or 23.34%. The Sensex is off 831.67 points or 2.91% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 2,278.08 points or 7.58% from a record high of 30,024.74 hit on 4 March 2015.
No comments:
Post a Comment