Sensex ends in green, Nifty hangs above 9,100-mark; NALCO shrinks 8%
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Indian markets ended on a mixed note on Wednesday trading session.
Sensex closed at 29,336.57 above 17 points or 0.06% supported by sectors like power, realty, metal, capital goods, utilities and auto which saw some buying movement in the index.
While Nifty 50 finished lower by 1.65 points or 0.02% at 9,103.50 as banking, IT and pharma sector which took the most hit on the index.
Investors are trading cautiously in the past few days, amid weak global cues who trading negative due to geopolitical tension. Little positive movement recorded in Nifty and Sensex can aided by corporate earnings.
Weak indications from the global market.
IndusInd Bank missed analyst estimates and reported 21% rise in net profit for the fourth quarter ended March 31, 2017. The bank reported net profit of Rs 751.61 crore in Q4, up 21.15% compared to Rs 620.35 crore in the corresponding period of the previous year.
Motilal expected net profit of Rs 761.7 crore in Q4 increasing by 22.77% yoy and 1.47% qoq, while net interest income was seen at Rs 1,620.5 crore rising by 27.77% yoy and 2.66% qoq.
Shares of IndusInd Bank tumbled over Rs 10 or 0.73% on BSE, trading at Rs 1,421.35 per piece.
Expert Andrew Holland's outlook on IT stocks in India.
Shares of Jain Irrigation System soared over 7% after when the company said that it will acquire 80% stake in 2 US based micro-irrigation dealers.
At 1329 hours, stock price of Jain Irrigation System was trading at Rs 106.50 per piece on BSE, above Rs 7 or 7.09%.
In a BSE filing, Jain Irrigation said, "The company through it multi generation wholly-owned subsidiary based in United States of America agreed to acquire 80% stake in 2 US entities. Two of the US largest micro-irrigation dealers - Agri-Valley Irrigation (AVI) and Irrigation Design and Construction (IDC) have entered into an agreement to merge ownership of their business into a newly formed distribution company."
Anil Jain, CEO of Jain Irrigation System said, "The transaction gives us the capability to provide grower focused, turn-key, end-to-end project solutions, consistent with our global solutions and capabilities. With the newly formed company, we'll be able to deliver leading agriculture technology irrigation solutions from our recent investment."
Both AVI and IDC have a combined revenue of $ 113 million as on December 31, 2016.
Experts outlook on the expected movement in Indian market.
Shares of National Aluminium Co. Ltd (NALCO) tanked nearly 7% as offer for sale (OFS) issue begins on stock exchanges.
At 1157 hours, shares of NALCO was trading at Rs 68.50 a piece down Rs 5 or 6.74% on BSE - a level which was last recorded on February 28, 2017.
In a BSE filing on Tuesday, NALCO said,"The promoter of the company, President of India (represented by the Ministry of Mines, Government of India), proposed to sell up to 9,66,46,444 (5 percent) equity shares with an additional option to sell up to 9,66,46,444 (5%) equity shares through a separate window of the BSE and the National Stock Exchange of India."
Nifty Bank tumbled the most on the 51-scrip index by over 94 points or 0.43% trading at 21,577.85.
Almost all stocks were trading in red with Punjab National Bank and Axis Bank getting most beating from investors.
PNB shares were trading at Rs 152.65 per piece down 2.08%, followed by Axis Bank at Rs 492 per piece lower by 1.53%.
Among other losers were - IDFC Bank (Rs 58.60 per piece), Bank of Baroda (Rs 174.80 per piece), ICICI Bank (Rs 281.45 per piece), Federal Bank (Rs 91.45 per piece), Kotak Mahindra Bank (Rs 879 per piece), Yes Bank (Rs 1,602.95 per piece), InduInd Bank (Rs 1,429.65 per piece) and HDFC Bank (Rs 1,446.70 per piece) trading negative in the range of 0.4% - 0.90%.
Only shares of Canara Bank was sequentially up by 0.43% trading at Rs 314.10 per piece on the index.
Indian Rupee was trading lower on Wednesday against US dollar. The rupee was trading at 64.563 down 0.044 paisa or 0.07% against dollar.
HDFC Securities said, "The rupee lost ground against the US currency on Tuesday ending lower by 11 paise at 64.63 on dollar demand from importers amid growing geopolitical unrest. The rupee fell for a second day as sluggish domestic equities along with continued selling by foreign investors kept pressure on the domestic currency.
Shares of Tata Consultancy Services (TCS) open lower by nearly 2% after the company reported a disappointing Q4FY17 quarter.
At 9.23, stock price of TCS was trading at Rs 2,289.65 down Rs 19 or 0.82% on BSE.
TCS on Tuesday reported a net profit of Rs 6,608 crore, down 2.5%, as against Rs 6778 crore in the previous quarter. For the whole financial year, the company registered a net profit of Rs 26,289 crore, up 8.9% on year-on-year basis.
Rajesh Gopinath, CEO and MD, said, "FY17 was a year of broad-based growth amidst economic and political turbulence in our key markets."
Motilal Oswal said, "TCS results were in line with expectations. Expectations were muted post Infosys results. Management has sounded confident of maintaining margins but given the quarterly numbers, concerns over slower growth and likely pressure on margins on account of likely higher costs and currency headwinds, stock could continue to remain range bound."
While Sanjeev Hota, AVP – Research, Sharekhan by BNP Paribas said, "We still see pain for the entire IT sector to continues given the uncertainties in the macro environment, new visas regime and pricing pressure in legacy services line, we maintain our hold rating on TCS."
Top gainers on BSE involved - Adani Ports trading at Rs 324.35 per share up 1.45%, followed by Gail India at Rs 398.30 per share (1.05%), Sun Pharma at Rs 670.25 per share (0.74%), Infosys at Rs 927.95 per share (0.60%), ITC at Rs 280.35 per share (0.50%) and Asian Paints at Rs 1,045 per share (0.39%).
While losers had TCS taking the lead trading at Rs 2,274 per share below 1.50%, followed by Tata Steel at Rs 445.20 per share (1.12%), Coal India at Rs 277.30 per share (0.57%), ONGC at Rs 180.15 per share (0.50%) and Tata Motors at Rs 442.35 per share (0.39%).
The Dalal Street opens on a positive note on the back of corporate earnings and normal monsoon forecast.
At 9.24 am, Sensex was trading at 29,341.22 above 12 points or 0.04%, while Nifty 50 was trading at 9,116.80 up by 11 points or 0.13%.
HDFC Securities said, "Market participants have been looking to corporate earnings to justify a strong rally in equities that had taken stock benchmarks to records as recently as March 1, but that run-up has since stalled as doubts about valuations and concerns about President Donald Trump's ability to quickly implement pro-growth policies weigh on sentiment."
Stocks that will be in focus are:
Yes Bank and IndusInd Bank as both the private banks will be announcing their fourth quarter ended March 31, 2017 result.
Other companies which are set to announce their Q4Y17 result namely Network 18 Media and TV18 Broadcast will also be in focus
TCS: The company reported a net profit of Rs 6608 crore, down 2.5%, as against Rs 6778 crore in the previous quarter. For the whole financial year, the company registered a net profit of Rs 26,289 crore, up 8.9% on year-on-year basis.
Rajesh Gopinath, CEO and MD, said, "FY17 was a year of broad-based growth amidst economic and political turbulence in our key markets."
United Spirits: The company's share tumbled on Tuesday after when Vijay Mallya was arrested by Scotland Yard in London and that he is likely to be presented before a UK court.
However, Mally was shortly granted bail after few hours of arrest.
IT Companies: With an aim to provide employment opportunities to American nationals and to curb misuse of H-1B visas, the US president Donald Trump signed an executive order on Tuesday which is likely to have impact on IT companies in India.
Tata Steel: The company's Dutch Works Council Opposes Possible Thyssen JV - Tata Steel Nederland's Central Works Council maintains opposition to the possibility of a joint venture between Tata Steel Europe and Thyssenkrupp Steel Europe.
VST Industries: The company reported a decline of 8.52% in its standalone net profit to Rs 45.10 crore for Q4FY17 as against Rs 49.30 crore during the previous quarter ended March 2016.
Hindustan Oil Exploration: The company's Q4FY17 saw rise in standalone net profit to Rs 9.82 crore compared to net loss of Rs 1.83 crore during the previous quarter ended March 2016.
NALCO: Government will be selling 5% in National Aluminium Co. through offer for sale on Wednesday. The issue will also have a greenshoe of up to 5% at Rs 67 per share.
Asian stocks are not seeing any relief as geopolitical tension continues to pull down the markets for third in a row.
On Wednesday, Japan's Nikkei 225 was trading flat at 18,417.54.
Hong Kong's Hang Seng was below 189 points or 0.79% trading at 23,734.71, while China's Shanghai SE Composite Index tumbled 37 points or 1.17% trading at 3,159.36.
Meanwhile, Austrailian shares came down 0.44% trading at 5,843 and Taiwan shares lower by 0.62% trading at 9,686.59.
On Tuesday, Indian markets gave away intraday gains and ended on a negative note so much so that Nifty 50 came below 9,110-mark.
Overall, Sensex closed at 29,319.10 down 94 points or 0.32%, while Nifty ended at 9,105.15 lower by 34.15 points or 0.37%.
The Indian Meteorological Department (IMD) released its prediction for this year's monsoon and said that it is set to be normal. It said that monsoon rainfall may be 96% of the normal with an error margin of 5% on either side.
IMD further said that there are more than 50% chance of El-Nino developing from August.