Markets Today
- The markets had a sluggish closing on the last day of May derivatives series due to selling pressure in financials and pharma shares. The weakness in most Asian markets, muted corporate earnings and growing prospects that the Federal Reserve may raise interest rates led to cautiousness on the Street.
The tepid close, however, masked the intra-day volatility that resulted from F&O rollover pressures. The Sensex oscillated in a range of around 300 points before ending at 27,506, lower by 58 points or 0.2% and Nifty settled at 8,319, down 16 points.
- Among the 12 BSE sectoral indices, 7 indices closed in positive while 5 indices closed in negative. Top Gainers: BSE Consumer Durables up by 1.31% and BSE IT by 0.67%. Top Losers: BSE Healthcare down by 1.31% and BSE Bankex by 0.51%.
Market breadth was negative at ~0.97 as investors sold large cap stocks. On provisional basis, FII’s sold Rs 7.92bn worth of Indian equities while DII's bought Rs 6.83bn worth of Indian equities.
Economic and Corporate Developments
- India's economic growth rate in the January-March quarter is likely to slip to 7.2% from 7.5% in the previous three months, mainly on account of lower production and weak global demand, credit rating agency Moody's said today.
It also raised questions on the new GDP data series by the Central Statistical Organisation (CSO), which takes 2011-12 as the base year, saying that new data "is dubious" as they do not align well with other indicators of economy.
It added, however, that India's potential growth rate is "likely closer" to 9%. As regards domestic factors, Moody's said commercial banks have been reluctant to pass on interest rate cuts. "High borrowing costs are hurting the business sector, as manufacturing production grinds lower," it added.
- The Union civil aviation ministry will send a Cabinet note for final approval to replace the incumbent rules to fly abroad by a credit-based system next week, sources said. This means the 5/20 rule which mandates an airline to fly for a minimum five years and have at least 20 planes in order to fly abroad will soon be replaced by a credit-based system.
The Union civil aviation ministry had proposed a 'domestic flying credits' (DFC) system replace the current '5/20' rule to help new airlines such as Vistara and AirAsia India start international operations. It was proposed new airlines need to gain a minimum 300 Domestic Flying Credits (DFCs) before they start flights on long-haul routes (more than six hours long). However, airlines will need at least 600 DFCs to start flights on short-haul routes including in the Persian Gulf countries.
Buzzing Stocks
- BPCL closed 2.57% up at Rs 817.25 on BSE after declaring 29.87% fall in net profit to Rs 2852.89 crore on 30.94% decline in total income to Rs 51928.12 crore in Q4 March 2015 over Q4 March 2014.
- Hindalco Industries closed 1.57% down at Rs 132 on BSE after net profit fell 35.71% to Rs 159.53 crore on 11.03% growth in total income to Rs 9601.63 crore in Q4 March 2015 over Q4 March 2014.
- Godrej Industries closed 3.99% up at Rs 377.65 on BSE after consolidated net profit rose 21.6% to Rs 138.96 crore on 16.9% rise in total income to Rs 2432.63 crore in Q4 March 2015 over Q4 March 2014.
- Bajaj Electricals closed 1.99% up at Rs 269.05 on BSE after the company reported net profit of Rs 46.89 crore in Q4 March 2015 compared with net loss of Rs 10.65 crore in Q4 March 2014.
- Kanoria Chemicals & Industries closed 7.64% down at Rs 39.30 on BSE after net profit fell 19% to Rs 6.66 crore on 28.4% decline in total income to Rs 78.74 crore in Q4 March 2015 over Q4 March 2014.
- Gammon Infrastructure Projects closed 13.27% up at Rs 12.63 on BSE after the Reserve Bank of India notified increase in the ceiling on investment by Registered Foreign Portfolio Investors in the paid up equity share capital of the company.
- Jindal Steel & Power closed 8.31% down at Rs 118.55 on BSE after the company reported consolidated net loss of Rs 519.30 crore in Q4 March 2015 as against net profit of Rs 402.50 crore in Q4 March 2014.
- Reliance Infrastructure closed 1.27% down at Rs 416.55 on BSE after consolidated net profit fell 26.1% to Rs 459.11 crore on 0.2% decline in total income to Rs 5027.63 crore in Q4 March 2015 over Q4 March 2014.
- AstraZeneca Pharma India closed 13.62% up at Rs 974.90 on BSE after the company reported net profit of Rs 38.13 crore in Q4 March 2015 as against net loss of Rs 2.57 crore in Q4 March 2014.
- Bata India closed 1.33% up at Rs 1,051.05 on BSE after net profit rose 48.3% to Rs 58.44 crore on 6.2% rise in total income to Rs 533.83 crore in the quarter ended March 2015 over the quarter ended March 2014.
- Bank of India closed 6.22% down at Rs 191.40 on BSE after the bank reported a standalone net loss of Rs 56 crore in the fourth quarter ended March 31, 2015 (Q4), due to lower interest income and higher employee costs.
Contributed by Keynote Capitals
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