Markets Today
-The markets declined for the second consecutive session due to weakness in index heavyweights such as ONGC, RIL, Tata Motors and ITC. The absence of fresh triggers, weak quarterly earnings from India Inc, lingering Greece fiscal woes and the impending derivatives expiry seem to have dampened sentiments on Dalal Street.
The benchmark indices had slid by around 1% on Monday and there were no signs of a rebound; the Sensex ended this session at 27,531, lower by 112 points or 0.4% and the Nifty settled below the crucial technical level of 8,350 at 8339, down 31 points or 0.3%.
- ITC closed 1.05% down at Rs 314.30 on BSE sliding for a second straight session on disappointing earnings reported on Friday 22nd May, 2015.
- Tata Motors closed 1.60% down at Rs 497.10 on BSE ahead of its January-March earnings scheduled to be announced after the market hours on 26th May, 2015.
- Among the 12 BSE sectoral indices, 2 indices closed in positive while 10 indices closed in negative. Top Gainers: BSE Bankex up by 0.08% and BSE Power by 0.02%. Top Losers: BSE Oil & Gas down by 1.03% and BSE Realty by 0.86%.
Market breadth was negative at ~0.76 as investors sold large cap stocks. On provisional basis, FII's bought Rs 1.14bn worth of Indian equities while DII's bought Rs 1.23bn worth of Indian equities.
Economic and Corporate Developments
- The enrolment of beneficiaries under the ambitious modified Direct Benefits Transfer for LPG (DBTL) scheme has finally stopped at 128.7 million people, oil ministry data showed. This translates into annual subsidy savings for the government to the tune of Rs 5,060 crore at the current prices that was linked to the rest 21.3 million customers. These include mostly fake accounts and people who have voluntarily surrendered subsidy or lack bank accounts.
- India's adequate food stocks would help contain inflation, even if summer monsoon rains turn out to be weak, Chief Economic Adviser Arvind Subramanian said on Tuesday.
The June-September monsoon season is vital for India as half its croplands lack irrigation, but a forecast of less rain than usual this summer due to the emergence of the El Nino has threatened farm output.
- The direct tax collection target of Rs 7.98 lakh crore for the current financial year is likely to be met on account of improvement in economic growth, the government said.
“The target of Rs 7.98 lakh crore that has been set for 2015-16 is very much achievable. It is a very realistic target, aligned with the kind of GDP growth which has been forecast in the economic survey and it is also based on our internal analysis and past and historical trends,” Revenue Secretary Shaktikanta Das.
Buzzing Stocks
- Essar Oil closed 3.05% down at Rs 104.75 on BSE after net profit fell 45.8% to Rs 546 crore on 37.6% fall in total income to Rs 16102 crore in Q4 March 2015 over Q4 March 2014.
- ONGC closed 2.05% down at Rs 322.55 on BSE after the company's wholly owned subsidiary ONGC Videsh declared weak result for the year ended 31 March 2015 after market hours yesterday, 25 May 2015.
- Dish TV India closed 14.21% up at Rs 96.85 on BSE after the company reported net profit of Rs 35.01 crore in Q4 March 2015 as compared to net loss of Rs 149.05 crore in Q4 March 2014.
- GAIL (India) closed 0.53% up at Rs 388.30 on BSE after the company announced commencement of project work on the first phase of Jagdishpur-Haldia Pipeline.
- PTC India Financial Services closed 19.57% down at Rs 47.05 on BSE, after net profit declined 65.9% to Rs 15.81 crore on 45.4% rise in total income to Rs 217.25 crore in Q4 March 2015 over Q4 March 2014.
- Shares of PNC Infratech closed down at Rs 360.20 on BSE, a 4.71% discount compared to initial public offer price of Rs 378 per share.
- GMR Infrastructure closed flat at Rs 14.48 on BSE in a volatile trade after the company's subsidiary GMR Airports acquired an additional 10% stake in Delhi International Airport.
- HeidelbergCement India closed 1.78% down at Rs 69.10 on BSE after net profit dropped 82.9% to Rs 8.16 crore on 11.9% fall in total income to Rs 410.20 crore in Q1 March 2015 over Q1 March 2014.
- VA Tech Wabag closed 5.47% down at Rs 735.05 on BSE after consolidated net profit fell 1.2% to Rs 70.50 crore on 0.6% increase in total income to Rs 907.73 crore in Q4 March 2015 over Q4 March 2014.
- VRL Logistics closed 8.06% up at Rs 320.50 on BSE after net profit jumped 130.6% to Rs 19.37 crore on 9.1% increase in total income to Rs 403.20 crore in Q4 March 2015 over Q4 March 2014.
Contributed by Keynote Capitals
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