Stock markets across the globe are treading on a slippery path and for the time being you can blame it on China. To push market reforms, China's central bank on Tuesday devalued its yuan by nearly 2% against the US dollar. This move hit companies globally which have exposure to China. The proceedings at Parliament will take centre-stage as despite being in minority, in the Rajya Sabha, the Narendra Modi government on Tuesday mustered enough courage to table the Goods & Services Tax (GST) bill in the upper house. Continued protests from the Opposition will make it tough to pass the bill with barely any days left for the monsoon session of parliament to end. The bill is listed for consideration and passage today. Finance Minister Arun Jaitley lashed out at the Congress for stalling the country’s economic progress by not allowing the passage of the bill under the pretext of the Lalit Modi-Sushma Swaraj issue.
The outlook is a weak start. Macro data including IIP and CPI will be in focus besides results like Coal India, Reliance Infrastructure, JSPL, Ashok Leyland and Aurobindo Pharma. Global markets are in turmoil. US indices came tumbling with stocks like Apple, General Motors and others shedding weight due to China factor. The Dow fell 1.21%, S&P 500 dropped 0.96% and Nasdaq crashed by 1.27%. Asian markets are also in the red. With the Nifty below 8500, investors will remain cautious till a firm uptrend is established. In recent days, the mid-cap and small cap indices are also tumbling adding to the pressure.
Indirect Tax Revenue (Provisional) collections have increased from Rs 40,802 crore in July, 2014 to Rs. 56,739 crore during July, 2015. Thus an increase of 39.1% has been registered during July-2015 over the corresponding period in the previous year. This is an achievement of 32.6 % of the target fixed for BE 2015-16 i.e. Rs. 646267 crore.
Shares of Sun Pharma will be in focus after the company has posted a net profit after taxes & minority interest of Rs. 4789.60 million for the quarter ended June 30, 2015 as compared to Rs. 12045.90 million for the quarter ended June 30, 2014. Total Income has increased from Rs. 65231.30 million for the quarter ended June 30, 2014 to Rs. 68629.60 million for the quarter ended June 30, 2015.
Tata Motors slipped over 4.5% to Rs. 368 amid reports that the company plans to invest up to 1 billion euros for the new JLR plant outside the United Kingdom. According to media reports, the company has signed a letter of intent with the Slovakian government to build the factory in the western city of Nitra, its first European production plant outside of the United Kingdom. The new plant is likely to have a capacity of 300,000 cars per year.
Bosch was the other major gainer in the Nifty-50. The stock jumped 2 percent to Rs. 26,555 after the company reported 12 percent growth in Q1FY16 net profit at Rs. 343.74 crore when compared with Rs. 306.68 crore in Q1FY15. Total income was up 8.3 percent at Rs. 2,665 crore from Rs. 2,460 crore.
Syngene International made a sparkling debut in an otherwise slippery market. The stock was listed at an 18 percent premium at Rs. 295, and touched a high of Rs. 318. The company had successfully raised Rs. 550 crore from its recent IPO (Initial Public Offer) which was subscribed by nearly 24 times. The stock finally ended with a premium of 24.4 percent at Rs. 311 as against the issue price of Rs. 250. Meanwhile, Biocon was down 0.5 percent at Rs. 463.
eClerx Services zoomed to a fresh all-time high at Rs. 1,777, and finally ended with a solid gain of 5.7 percent at Rs. 1,681 on the back of steady Q1 earnings. The company's Q1 standalone net profit jumped by 28.8 percent to Rs. 65.70 crore as compared with Rs. 51.01 crore in the corresponding quarter a year ago.
Polaris Consulting & Services soared to a high of Rs. 224 before ending flat at Rs. 207 amid buzz of likely stake sale. According to media reports, Indian and foreign companies are said to be in race to buy a majority stake in Polaris after founder chairman and mentor Arun Jain and key investors re-initiated talks to sell the company.
Engineers India tumbled 6.5% to Rs. 220 on the back of weak financial earnings for the first quarter ended June, 2015. The company's net profit declined by 29.4 percent to Rs. 56.80 crore in Q1FY16 from Rs. 80.40 crore in Q1FY15.
IL&FS Transportation Networks cracked 7% to Rs. 132 on the back of dismal Q1 performance. The group's consolidated Q1 net plunged by almost 98 percent to Rs. 2.90 crore when compared with Rs. 137.75 crore in the corresponding quarter a year ago.
Gujarat Mineral Development Corporation (GMDC) slipped 2.5 percent to Rs. 87.35 after the company reported 43.4 percent fall in Q1 net profit on year-on-year basis at Rs. 73.54 crore as against Rs. 130 crore in a year ago period.
Alphageo (India) plunged 7.5% to Rs. 354 on the back of reverse turnaround. The company reported consolidated net loss of Rs. 3.05 crore in Q1FY16 as against net profit of Rs. 10.85 crore in Q1FY15.
Wockhardt rallied to a high of Rs. 1,683 on the back of near six-fold jump in Q1 consolidated net. The pharma major's Q1FY16 consolidated net soared to Rs. 114.20 crore when compared with Rs. 19.95 crore in Q1FY15. The stock, however, ended wee bit in red at Rs. 1,646.
Titan jumped to a high of Rs. 336 after the BSE counter witnessed a huge block deal of around 1.94 crore shares around Rs. 335. The stock ended unchanged at Rs. 329.
Sun TV Network slumped to a low of Rs. 319 following news report that the Madras High Court cancelled former Union telecom minister Dayanidhi Maran's interim anticipatory bail in the controversial telephone exchange case and directed him to surrender before the Central Bureau of Investigation (CBI) within three days. The stock, however, recouped losses and ended a percent higher at Rs. 345.
Power Grid Corporation soared to a high of Rs. 141 after the company's Q1FY16 net profit surged by over 20 percent to Rs. 1,367 crore when compared with Rs. 1,137 crore in Q1FY15. The stock eventually ended flat at Rs. 138.
Finolex Cables gained 1.2 percent at Rs. 266 on the back of 38.3 percent growth in standalone net at Rs. 48 crore for the quarter ended June 2015, as against net profit of Rs. 34.7 crore in the corresponding quarter ended June 2014.
Housing Development & Infrastructure (HDIL) declined 1.5% to Rs. 87.10 after the company reported consolidated net profit of Rs. 59.24 crore in Q1FY16, as against Rs. 57.58 crore in a year ago period.
India Glycols soared over 10% to Rs. 109 on the back of strong financial earnings. The company booked a net profit of Rs. 7.73 crore in Q1FY16, as against Rs. 1.31 crore in a year ago period.
Subex touched a high of Rs. 18.35 and ended 0.7 percent higher at Rs. 17.45 after the company announced the launch of a new version of the industry leading revenue assurance solution, ROC Revenue Assurance 5.3 yesterday.
Redington India zoomed to a high of Rs. 130 after the company informed the BSE that Xiaomi has appointed the company for distribution of their smartphones in a number of cities across India. The stock, however, pared gains and ended with a loss of 2 percent at Rs. 119.
Shree Uttam Steel & Power and South Korea’s Posco have signed an agreement to set up a 3 million tonne per annum integrated steel manufacturing plant in Maharashtra at an investment of US$3bn (INR 19,200 crore). The new steel plant is to be set up in two phases in the Sindhudurg district of Maharashtra.
Come 2017, the country’s largest carmaker Maruti Suzuki India could run out of production capacity at its existing plants at Manesar and Gurgaon, Chairman RC Bhargava has been quoted as saying. So, naturally the Maruti management is worried that any delays in starting the proposed plant in Gujarat will jeopardize their production strategy, Bhargava told a financial daily.
Bharat Sanchar Nigam Ltd. (BSNL) will soon float a tender for outsourcing operations and management of 65,000 towers across India, according to a business daily. The contract is expected to be valued at Rs.1,500-2,000 crore and an expression of interest (EoI) will be out within the next few weeks, Chairman & MD Anupam Shrivastava has been quoted as saying by the paper.
The Competition Commission of India (CCI) is investigating whether airlines are indulging in cartelisation of air fares, Corporate Affairs Minister Arun Jaitley said in the parliament on Tuesday. In a suo motu case regarding cartelisation in passenger fares by airlines, CCI has directed an investigation by its Director General, he told the Rajya Sabha, adding that the case does not pertain to festive season hike.
Jaguar Land Rover (JLR) has selected Slovakia as the location for its first manufacturing plant in mainland Europe, with a capacity to produce 300,000 cars over the next decade. The premium car maker owned by India's Tata Motors has signed a letter of intent (LoI) with the Slovak government and is conducting a feasibility study for the development of a plant near the city of Nitra, in the west of the country, CEO Ralf Speth has been quoted as saying.
Gujarat’s discoms (power distribution companies) have yet again received top rating (A+), along with the discoms of Punjab for the year 2013-14. Minister of State (Independent Charge) for Power, Coal and New & Renewable Energy, Piyush Goyal announced the ratings accorded to discoms across the country on Tuesday. The four Gujarat discoms that received the A+ rating include Uttar Gujarat Vij Company Ltd, Madhya Gujarat Vij Company Ltd, Dakshin Gujarat Vij Company Ltd and Paschim Gujarat Vij Company Ltd.
The initial public offer (IPO) of Power Mech Projects Ltd. closed on Tuesday with strong subscription, led by QIBs and HNIs, according to data on the NSE web site. The issue was finally subscribed by 38.10 times, as on 21.00 (IST) on Tuesday. The IPO received bids for 11.39 crore shares as against 29.88 lakh shares on offer, as per the NSE data. It had opened for subscription on Friday.
The Government will reportedly consider a proposal tomorrow to provide 50% diesel subsidy to farmers in places where rainfall has been very scanty during this monsoon season. "The Cabinet Committee on Economic Affairs (CCEA) meeting is scheduled for tomorrow and the Agriculture Ministry's proposal on diesel subsidy is on the agenda," according to reports.