Indian stock market daily morning report (January 20, 2014, Monday)
January 20, 2014, Monday, 05:59 GMT | 01:59 EST | 11:29 IST | 13:59 SGT
Views on markets today
- Markets ended lower after the sharp correction in Tata Consultancy Services dampened sentiment in IT sector while financials which had firmed up on expectation that the RBI may continue to maintain status quo on key policy rates also witnessed profit taking.
The 30-share Sensex ended lower by 202 points at 21,064 and the 50-share Nifty fell 57 points at 6,262.
- TCS closed 5.77% down at Rs 2,215.65 on BSE after the company reported 15.1% rise in consolidated net profit to Rs 5,333 crore on 1.5% increase in revenue to Rs 21,294 crore in Q3 December 2013 over Q2 September 2013.
- HDFC Bank closed 0.84% down at Rs 668.30 on BSE after net profit rose 25.1% to Rs 2,325.70 crore on 17.75% growth in total income to Rs 12,738.95 crore in Q3 December 2013 over Q3 December 2012.
- Shares of three public sector oil marketing firms rose 2.54% to 4.1% on BSE as Brent crude oil futures dropped as concerns over a rise in supply from Libya and Iran dragged on prices.
Indian Oil Corporation (up 4.1% at Rs 220.75), HPCL (up 3.37% at Rs 233.20) and BPCL (up 2.54% at Rs 338.70) edged higher.
- Among the 12 BSE Sectoral Indices 3 sectors closed in positive while 9 sectors ended the day in negative. Top Gainers: BSE Oil & Gas up by 0.25% and BSE FMCG by 0.07%. Top Losers: BSE IT down by 2.55% and BSE Realty by 2.40%.
Market breadth was negative at ~0.4- as investors sold large cap stocks. On provisional basis, FII's bought Rs 4.80bn worth of Indian equities and DII's sold Rs 7.91bn worth of equities.
Economic and Corporate Developments
- After pulling out $14 billion between May and December 2013, foreign institutional investors (FIIs) are returning to the Indian debt market. Soon after the US Federal Reserve announced it intended to taper its stimulus package in May last year, foreign investors began selling Indian bonds, as India's external condition looked precarious. This sell-off led to the rupee going into a free fall.
Between May 21, 2013, and January 1 this year, FIIs have been net sellers of Indian bonds. On May 21, 2013, FII investment in Indian bonds hit a high of $38.52 billion; this fell to $24.95 billion on January 1, 2014. With the currency stabilising and the government getting a grip on the country's recalcitrant current account deficit, foreign investor interest in Indian bonds has revived. This is true for government, as well as corporate bonds.
- Mindtree closed 5.00% down at Rs 1,421.00 on BSE after consolidated net profit declined 31.2% to Rs 88.50 crore on 2.7% growth in revenue to Rs 790.60 crore in Q3 December 2013 over Q2 September 2013.
- Rallis India rose 1.01%, in the opening trade, to Rs 179.60 on BSE after consolidated net profit surged 38% to Rs 30 crore on 17% growth in net sales to Rs 396 crore in Q3 December 2013 over Q3 December 2012.
- Coal India lost 8.31% to Rs 277.55 on BSE, on turning exdividend on 17th January 2014, for an interim dividend of Rs 29 per share for the year ending March 2014.
- Indian Oil Corporation closed 5.87% up at Rs 224.50 on BSE after Oil Minister Veerappa Moily was quoted by media as saying on Thursday that a panel of ministers has approved sale of a 10% stake in IOC through a block deal on the stock exchanges.
- Aksh Optifibre closed 8.28% up at Rs 15.70 on BSE after the company said it has been awarded a Rs 200 crore plus order for Package B of ambitious National Optic Fibre Network backbone project.
- KRBL rose 1.71%, in the early trade, to Rs 41.65 on BSE after consolidated net profit surged 241.7% to Rs 71.0- crore on 40.9% growth in net sales to Rs 703.60 crore in Q3 December 2013 over Q3 December 2012.
- ITC closed 0.26% down at Rs 324.85 on BSE after net profit rose 16.25% to Rs 2,385.34 crore on 13.4% rise in total income to Rs 9,117.91 crore in Q3 December 2013 over Q3 December 2012.
- Ranbaxy Laboratories closed 2.42% down at Rs 406.40 on BSE, after the company issued clarification on media reports suggesting that it is likely to announce a tie-up with a multinational company.
- Federal Bank closed 2.75% down at Rs 79.45 on BSE after net profit rose 9.18% to Rs 230.13 crore on 9.86% growth in total income to Rs 1,895.92 crore in Q3 December 2013 over Q3 December 2012.
- Speciality Restaurants closed 3.95% down at Rs 123.90 on BSE, with the stock sliding on profit booking after Thursday's 6.39% gains triggered by the company's announcement that it has incorporated a joint venture company in Doha, Qatar.
- KSK Energy Ventures closed 0.15% up at Rs 65.50 on BSE after the company said that the Coal Ministry has directed Coal India to execute the fuel supply agreement.
- Hindustan Zinc closed 0.77% down at Rs 129.45 on BSE after net profit rose 7% to Rs 1,723 crore on 9% growth in net sales to Rs 3,410 crore in Q3 December 2013 over Q3 December 2012.