The News International Team
After a choppy session, the market ended on lower levels. The Sensex was down 155.11 points or 0.6 percent at 27735.02 and the Nifty slipped 31.40 points or 0.4 percent at 8398.30. About 1370 shares have advanced, 1442 shares declined, and 155 shares are unchanged.
Cement and pharma stocks were under pressure while a weak rupee also added pressure on the indices. The currency has breached the 63-mark against the dollar to hit its lowest level in over 3 months. Ananth Narayan, Head, Financial Markets, Standard Chartered Bank, says the rupee did not keep pace with dollar strengthening against major currencies.
According to him, rupee depreciating further to 64-65 per dollar will not be a big move and will help exports. A gentle depreciation should be the base case for the rupee, he adds.
All major indices were in red except metals and consumer durables. Metal index was up 1.5 percent led by strength in Tata Steel. The stock rose 5 percent after Bank of America Merill Lynch reinstated coverage with a buy rating. The brokerage has set a target price of Rs 500 per share valuing the company at its five-year average P/B of 1.1x one-year forward P/E of 8x.
Coal India also jumped over 1 percent as brokerage firm CLSA has maintained its ‘buy’ rating on Coal India , citing steps by the company and the government of India to ease logistical bottlenecks.
Other gainers in the Sensex were Maruti, BHEL and Cipla.
YES Bank also saw good buying for another day on analysts’ bullishness. What also added to its strength is the company’s board approval for raising FII limit to 74 percent from 49 percent today.
Meanwhile, HDFC Bank’s net profit rose 20.6 percent to Rs 2807 crore in the quarter ended March 2015 as compared to Rs. 2326.52 crore year-on-year. During the quarter, its net interest income was up 21.4 percent at Rs 6013 crore versus Rs 4952 crore on a yearly basis. Net interest margin (NIM) was flat at 4.4 percent quarter-on-quarter.
Capital goods, autos and realty stocks were under pressure. Sun Pharma, SBI, Tata Motors, NTPC and Wipro were major laggards in the Sensex.
Among the midcaps, State Bank of Mysore gained 12 percent while Cera Sanitary lost 16 percent post March quarter results.
Stock to watch
Infosys will be in focus tomorrow as it will announce its March quarter results. Its fourth quarter profit may fall 2.7 percent sequentially to Rs 3,161 crore on weak operational performance and slow growth in revenues, according to a CNBC-TV18 poll. Analysts expect rupee revenue at Rs 13,818 crore during January-March quarter, up 0.15 percent over Rs 13,796 crore in December quarter and dollar revenues growth at USD 2,224 million, up 0.3 percent on sequential basis while constant currency growth is seen at around 2-2.5 percent (against its peers TCS (1.6 percent), HCL Tech (2.7 percent) and Wipro (1.2 percent).