We had mentioned in Wednesday’s closing report that the Nifty, Sensex are moving sideways. The major Indian equity indices ended with losses as Infosys stock price fell after the quarterly result announcement. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
The Indian Equity benchmarks end in red for the second consecutive day, ending at their two-week closing lows. Sensex fell by 182.03 points, closing at 29461.45 and Nifty slipped 52.65 points to 9,150.80, dragged by technology, metals, infrastructure and auto stocks. However, buying in Reliance Industries and banking & financials controlled the fall.
IT major Infosys fell 3.86% after the company reported weak Q4 March 2017 results before market hours today. Infosys's consolidated net profit fell 2.8% to Rs3603 crore on 0.9% decline in revenues to Rs17120 crore in Q4 March 2017 over Q3 December 2016. Consolidated operating profit fell 2.8% to Rs4212 crore in Q4 March 2017 over Q3 December 2016. Infosys said that its consolidated revenue is expected to grow 6.5%-8.5% in constant currency terms in the fiscal year ending 31 March 2018, under IFRS. CEO, Dr. Vishal Sikka, said that unanticipated execution challenges and distractions in a seasonally soft quarter affected the company's overall performance.
Pharma stocks bucked the weak trend. Sun Pharmaceutical Industries (2.07%), Aurobindo Pharma (0.02%), Lupin (0.57%), Wockhardt (0.41%), Dr Reddy's Laboratories (0.56%), Divi's Laboratories (0.23%), and Glenmark Pharmaceuticals (0.19%) gained. Cipla (0.06%) and Cadila Healthcare (0.31%) declined. IOL Chemicals & Pharmaceuticals was locked at 10% upper circuit at Rs 66.30 after the company announced it received EUGMP Certification from National Institute of Pharmacy and Nutrition, Hungary, for its product Ibuprofen, Lamotrigine, Metformin Hydrochloride confirming compliance with principals of Good Manufacturing Practices as provided by European Union Legislation. This will help the company to expand its product portfolio in the European market. The announcement was made after market hours yesterday, 12 April 2017. Reliance Communications slipped nearly 3% as Deutsche Bank downgraded the stock to sell and slashed target price to Rs30 from Rs57 earlier. The company could lose around 100-150 bps revenue share over the next two years, it feels.
The top gainers and top losers of the major indices are given in the table below:
Overseas, European stocks edged lower as investors digested US President Donald Trump's comments that he would prefer the Federal Reserve to keep interest rates low and suggested the dollar is too strong. Meanwhile, Germany's inflation rate dropped notably in March, as expected, because of easing increases of energy and food prices. The annual inflation rate, measured by harmonized European Union standards, fell to 1.5% after hitting a 4 1/2-year high of 2.2% in February, the statistics office said. Asian stocks were mixed. China's exports rose 14.8% in the first quarter from a year earlier in yuan terms, extending an 11% increase in the first two months, official data showed. Imports in the January to March period increased 31.1% in yuan terms from a year earlier, compared with a 34.2% rise in the first two months, the General Administration of Customs said in a release.
The BSE market breadth was marginally bearish today, with 1482 declines, 1421 advances and 145 unchanged. On NSE, there were 873 declines, 793 advances and 81 unchanged. The closing values of the major Asian indices are given in the table below: