We had mentioned in Friday’s closing report that Nifty, Sensex were still on an uptrend but risks were also rising. The major indices of the Indian stock markets were range-bound on Tuesday and closed with small losses over Friday’s close. The stock markets were closed for trading on Monday. The trends of the major indices in the course of Tuesday’s trading are given in the table below:
Negative global cues depressed the Indian equity markets on Tuesday. Consequently, both the key equity indices closed in the red, as selling pressure was witnessed in IT (information technology) and automobile stocks. The BSE market breadth was tilted in favour of the bears -- with 1,634 declines and 1,095 advances. On the NSE, on Tuesday, there were 604 advances, 988 declines and 68 unchanged.
Consumer goods company Unilever on Tuesday announced the acquisition of air purifying solutions company Blueair for an undisclosed sum. "Blueair will be geared to help potentially billions of people rather than millions to create safer, healthier indoor environments as air pollution rises worldwide," said Bengt Rittri, Founder, Blueair, in a statement. According to a recent World Health Organisation (WHO) report, air pollution is now the world's largest single environmental health risk that "Killed around seven million people in 2012 alone,” Rittri added. Blueair will continue to operate under its existing brand name in all its markets, including India, Sweden, China, the US, Japan and South Korea. Hindustan Unilever shares closed at Rs921.65, down 0.97% on the BSE.
Cipla announced an improvement of around 200 basis points in base business EBITDA (earnings before interest, depreciation and taxes) margin. The recent acquisitions of InvaGen Pharmaceuticals Inc. and Exelan Pharmaceuticals Inc. are EBITDA margin-accretive at a consolidated level with the integration plans progressing smoothly, Cipla said in a press release. The company’s consolidated EBITDA margin stood at 17% for the quarter ended June 30, 2016 (Q1FY17) against 6.7% in March quarter. Cipla shares closed at Rs553.55, up 7.14% on the BSE.
India's annual rate of inflation based on wholesale prices shot up to 3.55% for July from 1.62% in the previous month, due to an 11.82% jump in prices of food articles, official data showed on Tuesday. The prices of potatoes continued to pinch with an annual rise of 58.78%, pulses were dearer by 35.76%, while fruit were 17.30% costlier over the same month of the previous year, as per the Wholesale Price Index (WPI) data of the Commerce Ministry. Data released last week showed that the country's annual retail inflation shot up to a 23-month high of 6.07% for July and beyond the official tolerance level of 6%, again due to higher prices for food articles. The July WPI index at 3.55% marks a two-year high.
Global software major Infosys Ltd. will soon lay off about 3,000 techies since the Royal Bank of Scotland (RBS) has cancelled the contract for setting up a new bank (Williams & Glyn). "Subsequent to this (RBS) decision, we will carry out an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months," the city-based IT major disclosed on its website but did not share details with the media. Infosys shares closed at Rs1,050.95, down 1.16% on the BSE.
US stocks rallied on Monday, with all three major indices setting new closing records, as investors focused on a rebound in oil prices while waiting for the minutes of the US Federal Reserve. Oil prices kept rising on Monday, with both US oil and Brent crude jumping nearly 3%, as speculation intensified about potential producer action to support prices in an oversupplied market. Investors were also waiting for the minutes of the Fed's July policy meeting scheduled for release on Wednesday, for more indications on the timing of the next interest rate hike.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: