Views on markets today
- Benchmark share indices extended losses for the fourth straight session registering their biggest single-day drop in 3 weeks amid broad based sell-off with index heavyweight Reliance Industries leading the decline. Further, selling by foreign funds and the widening trade deficit in March also dampened sentiment.
The 30-share Sensex ended down 556 points at 27,886 and the 50-share Nifty ended down 158 points at 8,444.
- Shares of seven IT firms closed 0.94% to 6.30% down on BSE on reports that Indian IT companies are losing market share as IT outsourcing companies clients are increasingly favouring local firms while awarding technology contracts. MindTree (down 6.30%), Infosys (down 2.23%), Persistent Systems (down 1.55%), Tech Mahindra (down 0.94%), TCS (down 1.84%), HCL Technologies (down 1.69%) and Wipro (down 1.98%) edged lower.
- LIC Housing Finance closed 0.94% up at Rs 441.65 on BSE after net profit rose 2.2% to Rs 378.18 crore on 15.44% growth in total income to Rs 2860.59 crore in Q4 March 2015 over Q4 March 2014.
- All the 12 BSE sectoral indices closed in negative. Top Losers: BSE Realty down by 2.78%, BSE FMCG by 2.71%, BSE Capital Goods by 2.17% and BSE IT by 2.08%.
Market breadth was negative at ~0.42 as investors sold large cap stocks. On provisional basis, FII's sold Rs 15.06bn worth of Indian equities while DII's bought Rs 9.62bn worth of Indian equities.
Economic and Corporate Developments
- Under backlash from various quarters the government has decided to withdraw certain contentious clauses from the new Income Tax returns forms and is likely to release the new forms in speedy manner. Sources in consultation on the matter say that the centre may amend the clause and sections that sought detailed disclosure of foreign travel, passport copy and expenses incurred.
- Global rating agency Fitch on Monday said the likely upturn in the country's investment climate and reduction in interest rates will improve the property market by the end of March 2016 and provide relief to the debt-ridden developers. "The property development sector (will) be a key beneficiary of reductions in housing loan interest rates by several domestic banks in April 2015," the agency said, adding that they would also boost credit growth.
- The department of commerce is pushing all ministries to ease the rules on services trade even as the government is trying to bring out a more robust data on services export.
The commerce department has also engaged with the Reserve Bank of India to develop real time statistics on trade in services. This is because the ministry of commerce and industry has recently announced freely transferable duty scrips for services exports under the Services Exports from India Scheme (SEIS), commerce secretary Rajeev Kher said here today.
Buzzing Stocks
- Reliance Industries (RIL) closed 4.46% down at Rs 885.55 on BSE on profit booking after announcing Q4 results. RIL's consolidated net profit rose 8.5% to Rs 6381 crore on 33.3% drop in turnover to Rs 70863 crore in Q4 March 2015 over Q4 March 2014.
- Sasken Communication Technologies closed 7.07% up at Rs 259 on BSE after the company said its board of directors will meet on 23 April 2015, inter alia, to consider a proposal for buy-back of equity shares of the company.
- MIC Electronics closed 7.28% up at Rs 11.20 on BSE after the company as a lead member in consortium stood as lowest bidder in the bid against tender for commissioning LED street lights in five districts of Andhra Pradesh.
- GMR Infrastructure closed 3.78% down at Rs 16.55 on BSE after the company said it has allotted 93.45 crore equity shares at Rs 15 per share on rights basis to the eligible equity shareholders.
- Glenmark Pharmaceuticals closed 4.30% up at Rs 901.60 on BSE after the company's board of directors at its meeting held on 17 April 2015, decided to raise funds by way of preferential issue of shares to Aranda Investments (Mauritius).
- Piramal Enterprises closed flat at Rs 943.60 on BSE in a volatile trade after the company said that it has agreed to acquire a majority stake in Health SuperHiway, a healthcare analytics company over the next 12 months.
- Delta Corp closed flat at Rs 87.60 on BSE in a volatile trade after the company reported consolidated net profit of Rs 0.77 crore in Q4 March 2015 compared with net loss of Rs 1.95 crore in Q4 March 2014.
- Lupin closed 1.10% up at Rs 1,788.05 on BSE after the firm said its Canadian unit has launched its first branded product Zaxin under a strategic licensing agreement with the North Carolina based GI specialty company Salix Pharmaceuticals Inc.
- Essar Ports closed 0.21% up at Rs 120.50 on BSE after the company announced that its subsidiary, Vadinar Liquid Terminals, has entered into a concession agreement with Kandla Port Trust for development of marine liquid terminal facilities.
- Cimmco closed 9.26% up at Rs 103.20 on BSE after the company reported net loss of Rs 3.78 crore in Q4 March 2015 compared with net profit of Rs 0.05 crore in Q4 March 2014.
- KNR Constructions closed 1.98% up at Rs 447.40 on BSE after the company said it has received orders worth of Rs 937.08 crore.
- Claris Lifesciences closed 11.20% down at Rs 274.40 on BSE after the company said it has reached a settlement on litigations and license agreement for its generic DIPRIVAN in USA.
- NMDC closed 5.20% down at Rs 126.80 on BSE after the company reduced the prices of lump iron ore and fines with effect from 18 April 2015.
Contributed by Keynote Capitals
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