After rallying to a three-month high level in previous trading session, local equity market with no major surprise, witnessed correction on Thursday in absence of any substantial positive domestic trigger. Both, Sensex and Nifty lost over half of a percent and ended below crucial 28,400 and 8600 levels respectively.
Meanwhile, broader indices also contributing to the somberness, ended with loss in the range of 0.15-0.45%. Disappointment set in further after weak earnings from Bajaj Auto and Lupin, whose shares tanked over 5% after reporting Q1 numbers. However, losses remained capped thanks to positive global cues after Greek parliament approved a contentious bailout package.
Asian shares ended upbeat despite mixed set of economic data. On the macro-front, while South Korea's economy recorded its weakest expansion in six years in the second quarter, hurt by a deadly virus outbreak and poor exports, data showed that Japan recorded higher export growth in June. Meanwhile, European stocks were steady Thursday, as investors weighed the latest easing of Greece’s debt crisis against recent falls in commodity prices. Over in Europe, the Greek government secured enough votes in parliament to pass a second package of reforms for a bailout package.
Closer home, sectoral indices on BSE ended mixed, while stocks from Technology, Banking and Capital Goods counters were the prominent gainers while stocks from Consumer Durable, Auto and Oil & Gas counters were the notable losers.
Healthcare stocks nursed heavy losses after drug major Lupin disappointed street on every parameter with the first quarter profit falling 16 percent year-on-year to Rs 525 crore, impacted by lower US sales. However, impact of Bajaj Auto earnings wasn’t felt across the Auto sector as the Auto index saw gains of around half a percent.
Amar Ambani, Head of Research, IIFL, said, "Bajaj Auto results were below expectations on the back of lower than expected revenues. Operating margins were in line with expectations. The recent rally in the stock was due to the strong volumes reported in the 75-110cc category in domestic markets. This segment, however, will impact margins over the medium term. We see increasing competition for Bajaj Auto in its export markets from players like Hero Motocorp and TVS Motors. With valuations towards the higher end of its historical range, we prefer Hero Motocorp over Bajaj Auto in the two wheeler space."
Meanwhile, Cairn India edged higher after reports suggested that billionaire Anil Agarwal’s plans to merge his two Indian companies - Vedanta (earlier known as Sesa Sterlite) with oil producer Cairn India - may fall through after two large shareholders - LIC of India and Cairn Plc of UK - said they will vote against the move.
The BSE Sensex opened 35-odd points higher at 28,541, and soon touched a high of 25,578. The index, however, could not hold gains and turned choppy soon after.
Weakness crept in late morning trades, with select private banking shares, Lupin and Bajaj Auto coming under selling pressure. The BSE index touched a low of 28,315 - down 263 points in intra-day deals.
The Sensex, thereafter, exhibited high volatility and finally ended with a loss of 134 points at 28,371.
The NSE Nifty touched a high of 8,655, and a low of 8,574, before settling with a loss of 44 points at 8,590.
The India VIX (Volatility) index rose by 2.5 percent to 15.52.
Elsewhere in Asia, the markets ended with notable gains. China's Shanghai Composite index surged 2.4 percent to 4,124. Nikkei and Hang Seng gained 0.4 percent each at 20,684 and 25,398, respectively.
The European markets were seen trading with marginal gains as of 1530 hrs. The FTSE 100, DAX and CAC 40 were up 0.1-0.3 percent each.
Back home, the broader market finished with marginal gains. The CNX Nifty Junior index ended almost unchanged at 20,790. The Midcap index advanced 0.2 percent to 13,687, and the Smallcap index added 0.4 percent to 5,661.
The breadth too was a wee bit positive - out of 1,717 stocks traded on the NSE, 753 advanced and 725 declined today.
Among sectors - the CNX Media index tumbled nearly 2 percent to 2,386. The Bank Nifty, IT and Pharma indices shed around 0.7 percent each at 18,865, 11,559 and 12,275, respectively. The Auto index, however, gained 0.5 percent at 8,581.
Cairn India zoomed over 6 percent to Rs. 177 on buzz that, former parent and one of the largest minority shareholders, Cairn Energy Plc., may vote against Vedanta buyout offer for Cairn India on valuation concerns.
Tata Motors rallied 3.3 percent to Rs. 403. Mahindra & Mahindra advanced 1.3 percent to Rs. 1,360, and Maruti added a percent to Rs. 4,233.
Dr.Reddy's surged 2 percent to Rs. 3,925. Hindalco, Wipro, SBI and Punjab National Bank were some of the other notable gainers.
On the flip side, Lupin slumped over 5 percent to Rs. 1,729 after the company's Q1FY16 net profit tumbled over 31 percent to Rs. 699.92 crore when compared with Rs. 1,016.73 crore in Q1FY15. Total income also declined by 13.5 percent to Rs. 2,595 crore from Rs. 3,002 crore.
Bajaj Auto too plunged over 5 percent to Rs. 2,482 amid reports that the company's operating profit failed to meet the Street expectations.
Zee Entertainment shed 3 percent at Rs. 395. Hindustan Unilever and HCL Technologies dropped 1.7 percent each to Rs. 905 and Rs. 967, respectively.
Bharti Airtel declined over 1.5 percent to Rs. 432 amid reports that the company plans to raise $ 500 million- $ 1 billion in overseas debt to partly fund spectrum related payments and meet capex for network expansion.
TCS, Tata Power, ICICI Bank, Larsen & Toubro, Bosch, Axis Bank, Kotak Bank, Tata Steel, Ambuja Cements and Grasim were the other prominent losers - down over a percent each.
Among other stocks - Sun TV Network soared 7.4 percent to Rs. 278 following reports that the Madras High Court has issued an interim order permitting the Sun Group to participate in Phase-III auction process of FM radio.
Shasun Pharmaceuticals surged to a high of Rs. 407 amid reports that the Madras High Court approved merger of the company with Strides Arcolab. The merger will be effective after Bombay High Court and FIPB approvals. The stock, however, finally ended 0.5 percent lower at Rs. 392.
Dewan Housing Finance gained 2 percent at Rs. 482 after the company's board approved bonus share issue in the ratio 1:1, i.e. one free share for every shareholder holding a share. The company also reported 6.8 percent rise in Q1FY16 net profit at Rs. 173.28 crore when compared with Rs. 162.28 crore in the corresponding quarter a year ago.
TTK Prestige slipped 2.5 percent to Rs. 4,000 after the company today posted more than 17 percent drop in Q1 standalone net at Rs. 21.96 crore when compared with Rs. 26.52 crore on y-o-y basis.
KPIT Technologies zoomed 5.6 percent to Rs. 112 on reporting 67 percent surge in Q1 standalone net profit at Rs. 55.98 crore as against Rs. 33.50 crore in a year ago period.
SKS Microfinance scaled to a fresh 52-week high at Rs. 574, and finally ended with a gain of 5.3 percent at Rs. 566 on the back strong Q1 earnings. The company's net profit rose by 24 percent to Rs. 61.15 crore in Q1FY16, from Rs. 49.32 crore in Q1FY15.
Bajaj Finserv hit a fresh 52-week high at Rs. 1,800, and ended 3.1 percent higher at Rs. 1,727 on the back strong Q1 performance. The company posted 46.2 percent jump in Q1 consolidated net at Rs. 466.90 crore when compared with Rs. 319.37 crore in the corresponding quarter a year ago.
Muthoot Finance declined 1.5 percent to Rs. 200. The company recorded a net profit of Rs. 183 crore for Q1FY16, when compared with Rs. 180 crore in a year ago period.
Ceat rallied 3.3 percent to Rs. 805 after the company's Q1 net profit more-than-doubled to Rs. 121 crore for the quarter ended June 2015, as against Rs. 51.67 crore in a year ago period.
Hester Biosciences jumped to a high of Rs. 789, before ending flat at Rs. 760 after the company reported 7.3 percent rise in Q1FY16 net. The company reported a net profit of Rs. 4.66 crore for the quarter ended June 2015 when compared with Rs. 4.34 crore in the corresponding quarter a year ago.
JSW Energy tanked almost 6 percent to Rs. 93.10 after the company's Q1FY16 net profit declined by 14.8 percent to Rs. 277.45 crore when compared with Rs. 325.47 crore in Q1FY15.
Container Corporation of India shed 5.5 percent at Rs. 1,650 after the company reported lower-than-expected Q1 earnings. The company reported 21 percent drop in Q1 standalone net at Rs. 206 crore as against Rs. 261 crore on year-on-year basis.
Alstom India tumbled to a low of Rs. 788 on reporting 46.3 percent fall in Q1 net profit on year-on-year basis. The company's Q1FY16 net profit fell to Rs. 8.05 crore from Rs. 14.99 crore in Q1FY15. The stock, however, recouped most of the losses and ended barely 0.5 percent in red at Rs. 817.
As many as 85 stocks surged to a fresh 52-week high in trades today, while 22 stocks declined to a new 52-week low on the NSE.
Aarti Industries, Abbott India, Aditya Birla Nuvo, Asahi India Glass, Ashok Leyland, BPCL, CCL Products (India), Cosmo Films, Deep Industries, Dish TV India, Dr. Reddy's Laboratories, Fedders Lloyd Corporation, Foseco India, Future Retail, Godrej Industries, Gufic Biosciences, Himatsingka Seide, HPCL, Indiabulls Housing Finance, Indian Hume Pipe Company, IOC, JMT Auto, Jubilant Life Sciences, Jyothy Laboratories, KEC International, Lokesh Machines, Maruti Suzuki India, Mirza International, NRB Industrial Bearings, NIIT, Nilkamal, NOCIL, Nucleus Software Exports, OnMobile Global, Onward Technologies, PVR, Rajesh Exports, Relaxo Footwears, Reliance Industries, Saregama India, Shasun Pharmaceuticals, SKS Microfinance, Supreme Petrochem, Tata Chemicals, Techno Electric & Engineering Company, Tamil Nadu Newsprint & Papers, TVS Srichakra, Uniply Industries, Vadilal Industries, Vakrangee, Visaka Industries, Welspun India, Zee Entertainment Enterprises and Zen Technologies were some of the prominent stocks to register a fresh 52-week high.
Notable stocks at 52-week low were - Adani Enterprises, Andhra Cements, Godawari Power And Ispat, Indian Bank, Lanco Infratech, MOIL, Onelife Capital Advisors, ONGC, Sarda Energy & Minerals and Vipul.