We had mentioned in last week’s closing report that Nifty, Sensex may remain under pressure. The market closed in the red every day of the week, except for Tuesday, when the benchmarks ended with marginal gains. On Friday, the markets remained closed for Good Friday. Overall, for the whole week, the major indices closed with losses. The trends of the major indices in the course of the week’s trading are given in the table below:
Indian Equity markets closed in the red on Monday for the third consecutive session due to lack of any major triggers and apprehensions about the March quarter results. The S & P BSE Sensex ended 131 points lower, at 29575.74, with Infosys (-2.88%), Reliance Industries (-1.74%) and HDFC being the major contributors to the fall. The broader Nifty 50 Index closed below the 9200 levels, at 9,181.45.
Tata Motors rose 1.51% after the company said group global sales, including Jaguar Land Rover, rose 9%, at 1.29 lakh units, in March 2017 over March 2016. The global sales of all commercial vehicles and Tata Daewoo range fell 6%, at 42,596 units, in March 2017 over March 2016. This was compenasated by 19% rise in global sales of all passenger vehicles. Breaking the three-day falling streak, markets closed in green on Tuesday, with S & P BSE Sensex rising by 213 points and Nifty ending above the 9,200 mark. ITC was the leading contributor to the gains of both Sensex and Nifty, rising by over 3%, followed by Infosys, ICICI bank and Power Grid Corporation of India.
Riddled with crippling debt and a tough operating environment, telecom companies have been laying off employees over the last six months. While bigger players like Bharti Airtel and Vodafone India are managing to cut losses through consolidation, it is the smaller companies that are suffering the most. According to a CNBC-TV18 report, nearly 3,400 job losses have been reported in the last six months by telcos to cut down on costs and support falling margins.The head-finance of Asian Granito, Himanshu Shah, in an interview said that the promoters of the company have a acquired 5% stake in the open market in the fourth quarter.
The Indian equity benchmarks reversed gains of the previous day on Wednesday, despite positive global cues, as investors preferred to book profits ahead of Infosys earnings on Thursday and factory and retail inflation data to be released later today. S&P BSE Sensex fell 144.87 points, or 0.49%, to settle at 29,643.48. The Nifty 50 index shed 33.55 points, or 0.36%, to settle at 9,203.45.
IT major Infosys edged higher ahead of its Q4 March 2017 results on the next day, 13 April 2017. Vedanta and Cairn India advanced after Vedanta and Cairn India announced that the merger of Cairn India with Vedanta, pursuant to the scheme of arrangement, has become effective.
Tata Power Company was flat in volatile trade after the company announced that the Supreme Court on Tuesday, 11 April 2017, conveyed its judgment on the Compensatory Tariff mailer on the Mundra Ultra Mega Power Projects (UMPP). The announcement was made after market hours, 11 April 2017.The order, verbally conveyed, set aside the previous favourable order of the Appellate Tribunal for Electricity (APTEL), which had allowed compensatory tariff on account of ‘Forced Majeure’ conditions in Indonesia. It did not mention the use of Regulatory Powers of the Central Electricity Regulatory Commission (CERC) in adjudicating compensatory tariff as per previous order. The final order got uploaded in the evening and the company is studying it. The company will continue to pursue all alternative options at Coastal Gujarat Power (CGPL), including sourcing of competitive coal from other relevant geographies.
The all-India general CPI inflation increased to 3.65% in February 2017 (new base 2012=100), compared with 3.17% in January 2017. The Indian Equity benchmarks ended in the red on Thursday, for the second consecutive day, ending at their two-week closing lows. Sensex fell by 182.03 points, closing at 29,461.45, 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 Rs4,212 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.
The BSE market breadth was bearish, with 1,793 declines, 1,115 advances and 128 unchanged. On NSE, there were 1,090 declines, 590 advances and 61 unchanged.