Market snaps 2-day winning streak
Disappointing first quarter results from passenger car major Maruti Suzuki India (MSIL) and weak results from Dr Reddy's Laboratories (DRL) pulled the market lower towards the fag end of the trading session. The barometer index, the S&P BSE Sensex, fell 118.82 points or 0.42% to settle at 27,976.52. The Nifty 50 index fell 45 points or 0.52% to settle at 8,590.65. The Sensex fell below the psychologically important 28,000 level. After moving in an extremely narrow range for most part of the trading sessions, the two key benchmark indices lost ground in late trade after MSIL and DRL results hit the market in late trade. The Sensex and the Nifty snapped a two-day winning streak.
DRL declined after the company announced weak Q1 results. Weak results from DRL hit other pharma stocks. MSIL edged lower after announcing disappointing Q1 June 2016 results. Most other auto stocks declined after MSIL's disappointing Q1 results.
In overseas stock markets, main European markets witnessed a mixed trend. Earlier during the global day, Japanese stocks edged lower as expectations receded with regard to the government's soon-to-be announced fiscal stimulus package. The Nikkei 225 Average ended 1.43% lower. According to reports, the Japanese government will inject 6 trillion yen ($57 billion) in direct fiscal outlays into the economy over the next few years, double the amount initially planned. However, the spending will come over several years, which means the initial impact will be less than hoped. Meanwhile, investors are hoping for further easing of monetary policy from the Bank of Japan (BOJ) after the conclusion of a two-day monetary policy meeting on 28-29 July 2016. Strength in the yen against the dollar post last month's Brexit vote and data showing a slowdown in the Japanese economy have triggered expectations of further easing of monetary policy from the BOJ. A stronger yen hurts the competitiveness of Japanese exporters.
US stocks edged lower yesterday, 25 July 2016, as investors turned cautious ahead of a busy week of earnings and central bank meetings. The Federal Open Market Committee (FOMC) is widely expected to keep the benchmark fed funds rates unchanged after the conclusion of two-day monetary policy tomorrow, 27 July 2016. Market participant will scrutinize the Fed statement for clues on policy direction. The Fed has kept the benchmark fed funds rate unchanged after raising it for the first time in nearly a decade in December 2015.
The Sensex fell 118.82 points or 0.42% to settle at 27,976.52, its lowest closing level since 22 July 2016. The index lost 168.21 points or 0.59% at the day's low of 27,927.13. The index rose 54.19 points or 0.19% at the day's high of 28,149.53.
The Nifty 50 index fell 45 points or 0.52% to settle at 8,590.65, its lowest closing level since 22 July 2016. The index lost 58.50 points or 0.67% at the day's low of 8,577.15.
The index rose 9.25 points or 0.1% at the day's high of 8,644.90.
The market breadth indicating the overall health of the market was weak. On BSE, 1,687 shares fell and 1,012 shares rose. A total of 199 shares were unchanged. The BSE Mid-Cap index rose 0.17%, outperforming the Sensex. The BSE Small-Cap index fell 0.69%. The decline in this index was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 4127 crore, higher than turnover of Rs 3866.53 crore registered during the previous trading session.
Among sectoral indices on BSE, the S&P BSE Realty index (down 1.32%), the S&P BSE Auto index (down 1.12%), the S&P BSE Healthcare index (down 1.11%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.92%), the S&P BSE Bankex (down 0.73%), the S&P BSE Oil & Gas index (down 0.65%), the S&P BSE Industrials index (down 0.52%) and the S&P BSE Basic Materials index (down 0.48%), underperformed the Sensex. The S&P BSE Energy index (down 0.42%) and the S&P BSE Finance index (down 0.42%), matched the Sensex's decline in percentage terms. The S&P BSE Telecom index (down 0.33%), the S&P BSE FMCG index (down 0.31%), the S&P BSE Capital Goods index (down 0.22%), the S&P BSE Metal index (down 0.09%), the S&P BSE Consumer Durables index (down 0.01%), the S&P BSE Power index (up 0.08%), the S&P BSE Utilities index (up 0.13%), the S&P BSE Teck index (up 0.26%) and the S&P BSE IT index (up 0.38%) outperformed the Sensex.
Zee Entertainment Enterprises fell 0.08% to Rs 474.55. On a consolidated basis, the company's net profit rose 21.76% to Rs 216.96 crore on 14.74% increase in total income to Rs 1531.80 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours today, 26 July 2016.
Dr Reddy's Laboratories (DRL) declined after the company announced weak Q1 results. The stock fell 4.37% at Rs 3,322.85. The company's consolidated net profit fell 76.28% to Rs 153.50 crore on 14.06% decline in total income to Rs 3289.50 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours today, 26 July 2016.
DRL co-chairman and CEO GV Prasad said that the company's topline and bottom line were adversely impacted by a decline in volume growth, particularly in the US market and the loss of business in Venezuela. He further said that DRL also faced a number of challenges in the quarter, including price erosion and delayed launches as a result of the warning letter from the US drug regulator received by the company in November 2015, which significantly impacted earnings.
Weak results from DRL hit other pharma stocks. IPCA Laboratories (down 2.44%), Glenmark Pharmaceuticals (down 2.43%), Aurobindo Pharma (down 1.83%), Wockhardt (down 1.72%), Strides Shasun (down 1.59%), Divi's Laboratories (down 1.29%), Lupin (down 1.18%), Sun Pharmaceutical Industries (down 0.36%), Cipla (down 0.3%), GlaxoSmithKline Pharmaceuticals (down 0.29%) and Piramal Enterprises (down 0.09%), edged lower. Alkem Laboratories (up 0.13%) and Cadila Healthcare (up 0.91%), edged higher.
Cement major ACC edged lower in volatile trade after announcing strong Q2 June 2016 results. The stock fell 0.32% at Rs 1,672.75. The stock hit a high of Rs 1,711.15 and a low of Rs 1,661 in intraday trade. The company's consolidated net profit rose 79.2% to Rs 239.12 crore on 3.1% decline in turnover to Rs 2869.84 crore in Q2 June 2016 over Q2 June 2015. The result was announced during market hours today, 26 July 2016.
The company's operating EBITDA (earnings before interest, taxation, depreciation and amortization) rose 36.5% to Rs 457.56 crore in Q2 June 2016 over Q2 June 2015. With regard to its future business outlook, ACC said that it will continue to maintain its focus on reducing costs. The company expects that stabilization of the Jamul integrated project will help in increasing the company's presence in the fast growing East markets, as well as the overall profitability. Prospects of a good monsoon, coupled with the impetus from the government's thrust on infrastructure development, housing and other mega projects are also factors that are expected to have a positive impact on the overall momentum of construction activity in the coming quarters, ACC said in a statement.
Shares of state-run banks were mixed. UCO Bank (down 2.03%), Central Bank of India (down 1.7%), Andhra Bank (down 1.57%), State Bank of India (down 1.46%), Syndicate Bank (down 1.41%), Union Bank of India (down 1.37%), Bank of Baroda (down 1%), Vijaya Bank (down 0.82%), IDBI Bank (down 0.81%), Dena Bank (down 0.76%), Punjab National Bank (down 0.54%), Bank of Maharashtra (down 0.45%), Allahabad Bank (down 0.38%) and United Bank of India (down 0.21%), edged lower. Corporation Bank (up 0.12%), Indian Bank (up 0.46%), Bank of India (up 0.55%), Punjab and Sind Bank (up 0.60%) and Canara Bank (up 1.60%), edged higher.
Shares of private sector banks declined. ICICI Bank (down 2.64%), Federal Bank (down 2.5%), Kotak Mahindra Bank (down 2.01%), HDFC Bank (down 0.53%), City Union Bank (down 0.52%) and IndusInd Bank (down 0.22%), edged lower. Yes Bank (up 1.50%) and Axis Bank (up 2.85%), edged higher.
Passenger car major Maruti Suzuki India (MSIL) edged lower after announcing disappointing Q1 June 2016 results. The stock fell 1.44% at Rs 4,485.25. The stock hit a high of Rs 4,584.95 and a low of Rs 4,460 in intraday trade. The company's net profit rose 23% to Rs 1486.20 crore on 12.1% growth in net sales to Rs 14654.50 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours today, 26 July 2016.
The growth in bottom line was led by a sharp surge in non-operational income and decline in depreciation charge. Non-operational income jumped 134.04% to Rs 483.30 crore in Q1 June 2016 over Q1 June 2015. On the other hand, depreciation charge was lower by Rs 83.30 crore in Q1 June 2016 due to increase in the estimated useful life of dies & Jigs and intangible assets from 4 years to 5 years with effect from 1 April 2016, according to a footnote to the results.
MSIL's sales in June 2016 were adversely affected due to a fire accident at a key vendor of the company. The company hopes to recover the lost sales during the course of the current financial year (FY 2017).
Most other auto stocks declined after MSIL's disappointing Q1 results. Hero MotoCorp (down 2.12%), Escorts (down 2.02%), Ashok Leyland (down 1.66%), Bajaj Auto (down 1.11%), Mahindra & Mahindra (down 0.52%) and TVS Motor Company (down 3.08%) edged lower. Eicher Motors rose 0.92%.
Tata Motors fell 1.13% at Rs 503.15. The stock hit a high of Rs 513.50 in intraday trade, which is a 52-week high for the counter. The stock hit a low of Rs 501.65 in intraday trade. Tata Motors intends to raise Rs 400 crore from the issue of rated, listed, unsecured, redeemable, non-convertible debentures (NCDs) aggregating to Rs 400 crore. In this regard, the company is holding a meeting of its duly constituted committee of the board on 28 July 2016. The announcement was made after trading hours yesterday, 25 July 2016.
Steel stocks edged higher on renewed buying. Jindal Steel & Power (up 14.79%), Steel Authority of India (up 0.62%), Tata Steel (up 1.06 %) and JSW Steel (up 1.97%) edged higher.
Shares of key state-run companies declined. ONGC (down 1.17%), National Aluminium Company (Nalco) (down 2.9%), Power Finance Corporation (down 2.39%), Container Corporation of India (down 2.07%), GAIL (India) (down 1.41%), Coal India (down 1.38%), Bharat Electronics (down 1.37%), Rural Electrification Corporation (RCF) (down 1.23%), Oil India (down 0.78%) and Neyveli Lignite Corporation (down 0.51%) edged lower.
The Sensex and the Nifty snapped a two-day winning streak. The Sensex had risen 384.82 points or 1.39% in the preceding two trading sessions to settle at 28,095.34 yesterday, 25 July 2016, from its close of 27,710.52 on 21 July 2016. The Sensex has risen 976.80 points or 3.62% in this month so far (till 26 July 2016). The Sensex has risen 1,858.98 points or 7.12% in calendar year 2016 so far (till 26 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,481.91 points or 24.37%. The Sensex is off 441.07 points or 1.55% from a 52-week high of 28,417.59 hit on 10 August 2015. The Sensex is off 2,048.22 points or 6.82% from a record high of 30,024.74 hit on 4 March 2015.
DRL declined after the company announced weak Q1 results. Weak results from DRL hit other pharma stocks. MSIL edged lower after announcing disappointing Q1 June 2016 results. Most other auto stocks declined after MSIL's disappointing Q1 results.
In overseas stock markets, main European markets witnessed a mixed trend. Earlier during the global day, Japanese stocks edged lower as expectations receded with regard to the government's soon-to-be announced fiscal stimulus package. The Nikkei 225 Average ended 1.43% lower. According to reports, the Japanese government will inject 6 trillion yen ($57 billion) in direct fiscal outlays into the economy over the next few years, double the amount initially planned. However, the spending will come over several years, which means the initial impact will be less than hoped. Meanwhile, investors are hoping for further easing of monetary policy from the Bank of Japan (BOJ) after the conclusion of a two-day monetary policy meeting on 28-29 July 2016. Strength in the yen against the dollar post last month's Brexit vote and data showing a slowdown in the Japanese economy have triggered expectations of further easing of monetary policy from the BOJ. A stronger yen hurts the competitiveness of Japanese exporters.
US stocks edged lower yesterday, 25 July 2016, as investors turned cautious ahead of a busy week of earnings and central bank meetings. The Federal Open Market Committee (FOMC) is widely expected to keep the benchmark fed funds rates unchanged after the conclusion of two-day monetary policy tomorrow, 27 July 2016. Market participant will scrutinize the Fed statement for clues on policy direction. The Fed has kept the benchmark fed funds rate unchanged after raising it for the first time in nearly a decade in December 2015.
The Sensex fell 118.82 points or 0.42% to settle at 27,976.52, its lowest closing level since 22 July 2016. The index lost 168.21 points or 0.59% at the day's low of 27,927.13. The index rose 54.19 points or 0.19% at the day's high of 28,149.53.
The Nifty 50 index fell 45 points or 0.52% to settle at 8,590.65, its lowest closing level since 22 July 2016. The index lost 58.50 points or 0.67% at the day's low of 8,577.15.
The index rose 9.25 points or 0.1% at the day's high of 8,644.90.
The market breadth indicating the overall health of the market was weak. On BSE, 1,687 shares fell and 1,012 shares rose. A total of 199 shares were unchanged. The BSE Mid-Cap index rose 0.17%, outperforming the Sensex. The BSE Small-Cap index fell 0.69%. The decline in this index was higher than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 4127 crore, higher than turnover of Rs 3866.53 crore registered during the previous trading session.
Among sectoral indices on BSE, the S&P BSE Realty index (down 1.32%), the S&P BSE Auto index (down 1.12%), the S&P BSE Healthcare index (down 1.11%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.92%), the S&P BSE Bankex (down 0.73%), the S&P BSE Oil & Gas index (down 0.65%), the S&P BSE Industrials index (down 0.52%) and the S&P BSE Basic Materials index (down 0.48%), underperformed the Sensex. The S&P BSE Energy index (down 0.42%) and the S&P BSE Finance index (down 0.42%), matched the Sensex's decline in percentage terms. The S&P BSE Telecom index (down 0.33%), the S&P BSE FMCG index (down 0.31%), the S&P BSE Capital Goods index (down 0.22%), the S&P BSE Metal index (down 0.09%), the S&P BSE Consumer Durables index (down 0.01%), the S&P BSE Power index (up 0.08%), the S&P BSE Utilities index (up 0.13%), the S&P BSE Teck index (up 0.26%) and the S&P BSE IT index (up 0.38%) outperformed the Sensex.
Zee Entertainment Enterprises fell 0.08% to Rs 474.55. On a consolidated basis, the company's net profit rose 21.76% to Rs 216.96 crore on 14.74% increase in total income to Rs 1531.80 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours today, 26 July 2016.
Dr Reddy's Laboratories (DRL) declined after the company announced weak Q1 results. The stock fell 4.37% at Rs 3,322.85. The company's consolidated net profit fell 76.28% to Rs 153.50 crore on 14.06% decline in total income to Rs 3289.50 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours today, 26 July 2016.
DRL co-chairman and CEO GV Prasad said that the company's topline and bottom line were adversely impacted by a decline in volume growth, particularly in the US market and the loss of business in Venezuela. He further said that DRL also faced a number of challenges in the quarter, including price erosion and delayed launches as a result of the warning letter from the US drug regulator received by the company in November 2015, which significantly impacted earnings.
Weak results from DRL hit other pharma stocks. IPCA Laboratories (down 2.44%), Glenmark Pharmaceuticals (down 2.43%), Aurobindo Pharma (down 1.83%), Wockhardt (down 1.72%), Strides Shasun (down 1.59%), Divi's Laboratories (down 1.29%), Lupin (down 1.18%), Sun Pharmaceutical Industries (down 0.36%), Cipla (down 0.3%), GlaxoSmithKline Pharmaceuticals (down 0.29%) and Piramal Enterprises (down 0.09%), edged lower. Alkem Laboratories (up 0.13%) and Cadila Healthcare (up 0.91%), edged higher.
Cement major ACC edged lower in volatile trade after announcing strong Q2 June 2016 results. The stock fell 0.32% at Rs 1,672.75. The stock hit a high of Rs 1,711.15 and a low of Rs 1,661 in intraday trade. The company's consolidated net profit rose 79.2% to Rs 239.12 crore on 3.1% decline in turnover to Rs 2869.84 crore in Q2 June 2016 over Q2 June 2015. The result was announced during market hours today, 26 July 2016.
The company's operating EBITDA (earnings before interest, taxation, depreciation and amortization) rose 36.5% to Rs 457.56 crore in Q2 June 2016 over Q2 June 2015. With regard to its future business outlook, ACC said that it will continue to maintain its focus on reducing costs. The company expects that stabilization of the Jamul integrated project will help in increasing the company's presence in the fast growing East markets, as well as the overall profitability. Prospects of a good monsoon, coupled with the impetus from the government's thrust on infrastructure development, housing and other mega projects are also factors that are expected to have a positive impact on the overall momentum of construction activity in the coming quarters, ACC said in a statement.
Shares of state-run banks were mixed. UCO Bank (down 2.03%), Central Bank of India (down 1.7%), Andhra Bank (down 1.57%), State Bank of India (down 1.46%), Syndicate Bank (down 1.41%), Union Bank of India (down 1.37%), Bank of Baroda (down 1%), Vijaya Bank (down 0.82%), IDBI Bank (down 0.81%), Dena Bank (down 0.76%), Punjab National Bank (down 0.54%), Bank of Maharashtra (down 0.45%), Allahabad Bank (down 0.38%) and United Bank of India (down 0.21%), edged lower. Corporation Bank (up 0.12%), Indian Bank (up 0.46%), Bank of India (up 0.55%), Punjab and Sind Bank (up 0.60%) and Canara Bank (up 1.60%), edged higher.
Shares of private sector banks declined. ICICI Bank (down 2.64%), Federal Bank (down 2.5%), Kotak Mahindra Bank (down 2.01%), HDFC Bank (down 0.53%), City Union Bank (down 0.52%) and IndusInd Bank (down 0.22%), edged lower. Yes Bank (up 1.50%) and Axis Bank (up 2.85%), edged higher.
Passenger car major Maruti Suzuki India (MSIL) edged lower after announcing disappointing Q1 June 2016 results. The stock fell 1.44% at Rs 4,485.25. The stock hit a high of Rs 4,584.95 and a low of Rs 4,460 in intraday trade. The company's net profit rose 23% to Rs 1486.20 crore on 12.1% growth in net sales to Rs 14654.50 crore in Q1 June 2016 over Q1 June 2015. The result was announced during market hours today, 26 July 2016.
The growth in bottom line was led by a sharp surge in non-operational income and decline in depreciation charge. Non-operational income jumped 134.04% to Rs 483.30 crore in Q1 June 2016 over Q1 June 2015. On the other hand, depreciation charge was lower by Rs 83.30 crore in Q1 June 2016 due to increase in the estimated useful life of dies & Jigs and intangible assets from 4 years to 5 years with effect from 1 April 2016, according to a footnote to the results.
MSIL's sales in June 2016 were adversely affected due to a fire accident at a key vendor of the company. The company hopes to recover the lost sales during the course of the current financial year (FY 2017).
Most other auto stocks declined after MSIL's disappointing Q1 results. Hero MotoCorp (down 2.12%), Escorts (down 2.02%), Ashok Leyland (down 1.66%), Bajaj Auto (down 1.11%), Mahindra & Mahindra (down 0.52%) and TVS Motor Company (down 3.08%) edged lower. Eicher Motors rose 0.92%.
Tata Motors fell 1.13% at Rs 503.15. The stock hit a high of Rs 513.50 in intraday trade, which is a 52-week high for the counter. The stock hit a low of Rs 501.65 in intraday trade. Tata Motors intends to raise Rs 400 crore from the issue of rated, listed, unsecured, redeemable, non-convertible debentures (NCDs) aggregating to Rs 400 crore. In this regard, the company is holding a meeting of its duly constituted committee of the board on 28 July 2016. The announcement was made after trading hours yesterday, 25 July 2016.
Steel stocks edged higher on renewed buying. Jindal Steel & Power (up 14.79%), Steel Authority of India (up 0.62%), Tata Steel (up 1.06 %) and JSW Steel (up 1.97%) edged higher.
Shares of key state-run companies declined. ONGC (down 1.17%), National Aluminium Company (Nalco) (down 2.9%), Power Finance Corporation (down 2.39%), Container Corporation of India (down 2.07%), GAIL (India) (down 1.41%), Coal India (down 1.38%), Bharat Electronics (down 1.37%), Rural Electrification Corporation (RCF) (down 1.23%), Oil India (down 0.78%) and Neyveli Lignite Corporation (down 0.51%) edged lower.
The Sensex and the Nifty snapped a two-day winning streak. The Sensex had risen 384.82 points or 1.39% in the preceding two trading sessions to settle at 28,095.34 yesterday, 25 July 2016, from its close of 27,710.52 on 21 July 2016. The Sensex has risen 976.80 points or 3.62% in this month so far (till 26 July 2016). The Sensex has risen 1,858.98 points or 7.12% in calendar year 2016 so far (till 26 July 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,481.91 points or 24.37%. The Sensex is off 441.07 points or 1.55% from a 52-week high of 28,417.59 hit on 10 August 2015. The Sensex is off 2,048.22 points or 6.82% from a record high of 30,024.74 hit on 4 March 2015.
No comments:
Post a Comment