Indian stock market daily morning report (January 27, 2014, Monday)
January 27, 2014, Monday, 05:24 GMT | 00:24 EST | 10:54 IST | 13:24 SGT
Views on markets today
- Markets snapped a four-day winning streak on Friday with rate sensitive leading the decline after comments from Reserve Bank of India Governor Raghuram Rajan late Thursday. The Governor commented that inflation is a destructive disease which is forcing the central bank to keep interest rates high.
Further, a Reuters poll on Friday which indicated that emerging economies would contribute less to global growth in 2014 than earlier expected also weighed on market sentiment.
India is expected to grow at a lacklustre pace of 5.4% in fiscal 2015, as a result of the weak investment cycle gripping the country, which goes to elections this year, the report said.
The 30-share Sensex ended down 240 points at 21,134 mark and the 50-share Nifty ended down 79 points at 6,267 levels.
The broader markets underperformed the benchmark indices-BSE Midcap and Smallcap indices plunged by nearly 2% each.
- Ranbaxy Laboratories closed 19.54% down at Rs 335.65 on BSE after the US drug regulator banned the company from manufacturing and distributing active pharmaceutical ingredients from its facility in Toansa in India to the US market.
- All the 12 BSE Sectoral Indices ended the day in negative. Top Losers: BSE Realty down by 3.19%, BSE Capital Goods by 2.68% and BSE Consumer Durables by 2.65%.
Market breadth was sharply negative at ~0.50 as investors sold large cap stocks. On provisional basis, FII's sold Rs 2.31bn worth of Indian equities and DII's sold Rs 0.78bn worth of equities.
Economic and Corporate Developments
- Financial research and analysis firm ZyFin said India's gross domestic product (GDP) grew 5.4 per cent in November 2013 on a year-on-year (y-o-y) basis, compared to 5.2 per cent y-o-y growth in October 2013.
This is the second-highest monthly growth since January 2012, when the economy expanded 5.7 per cent, ZyFin said in a statement on Thursday. It noted the growth showed an uptrend for a sixth consecutive month.
Interestingly, official data showed that industrial production contracted 2.1 per cent in November 2013.
India's economy grew only 4.- per cent in the second quarter of the current financial year (FY14), the fourth straight quarter to show a below five per cent growth. Policy makers are looking for green shoots of recovery, which have so far remained elusive.
- Cairn India closed 0.03% down at Rs 324.55 on BSE after the company's consolidated profit after tax fell 14% to Rs 2,884 crore on 17% growth in revenue to Rs 5,000 crore in Q3 December 2013 over Q3 December 2012.
- Mastek closed 4.03% down at Rs 181.05 on BSE on profit booking after the company announced good Q3 December 2013 results after market hours on Thursday, 23 January 2014
- L&T Finance Holdings closed 4.21% down at Rs 70.50 on BSE after consolidated net profit declined 62.77% to Rs 109.6- crore on 30.52% growth in total income to Rs 1,283.37 crore in Q3 December 2013 over Q3 December 2012.
- MBL Infrastructures jumped 4.38%, in the opening trade, to Rs 122.65 on BSE after the company said it bagged five orders worth Rs 502.2- crore.
- Sun Pharma Advanced Research Company closed 0.28% up at Rs 161.30 on BSE after the company announced that its licensee has received an approval from the Drug Controller General of India for a drug used in treatment of breast cancer.
- Triveni Turbine closed 4.13% down at Rs 58.00 on BSE after net profit fell 31.80% to Rs 20.80 crore on 19.53% decline in net sales to Rs 140.90 crore in Q3 December 2013 over Q3 December 2012.
- Vakrangee rose 3.24%, in the afternoon trading, to Rs 95.50 on BSE after the company said that the Reserve Bank of India has granted the company the final authorization of the White Label ATM license on 24th January 2014.
- Bharat Electronics closed 1.98% down at Rs 981.00 on BSE after net profit fell 2.96% to Rs 191.74 crore on 18.29% decline in total income to Rs 1303.11 crore in Q3 December 2013 over Q3 December 2012.
- Mahindra Lifespace Developers closed 2.45% down at Rs 388.50 on BSE after consolidated net profit surged 70.58% to Rs 29 crore on 18.18% growth in total income to Rs 156 crore in Q3 December 2013 over Q3 December 2012.
- Atul closed 5.60% down at Rs 420.65 on BSE after net profit surged 133.83% to Rs 65.24 crore on 31.08% growth in total income from operations to Rs 592 crore in Q3 December 2013 over Q3 December 2012.
- Novartis India closed 4.06% down at Rs 419.45 on BSE after net profit fell 47.5% to Rs 15.23 crore on 4.3% fall in net sales to Rs 218.54 crore in Q3 December 2013 over Q3 December 2012.
- UCO Bank closed 2.00% up at Rs 75.80 on BSE after net profit jumped 206.94% to Rs 314.53 crore on 12.79% growth in total income to Rs 4,919.04 crore in Q3 December 2013 over Q3 December 2012.