We had mentioned in Tuesday’s closing report that Nifty, Sensex were still struggling to go up. The major indices of the Indian stock markets suffered a sharp correction on Wednesday of around 1% over Tuesday’s close. However, the losses were on relatively thinner trading on the NSE. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
On Wednesday, in line with global cues from the Asian stock markets, the major indices of the Indian stock markets suffered a correction of around 1%. Indian equity markets on Wednesday succumbed to profit booking on uncertainties regarding the passage of the GST (Goods and Services Tax) bill in the Rajya Sabha. Consequently, both the key indices traded in the negative territory during the mid-afternoon trade session as heavy selling pressure was witnessed in automobile, capital goods and fast moving consumer goods (FMCG) stocks. The BSE market breadth was skewed in favour of the bears -- with 1,815 declines and 914 advances. On the NSE, on Wednesday, there were 423 advances, 1,178 declines and 243 unchanged.
Initially, the benchmark indices opened on a negative note, as investors traded with caution on expectations of approval of the GST bill in the Rajya Sabha later in the day. Investors are hopeful about the bill's passage after the union cabinet last week approved key changes in the proposed legislation. The amendments in the bill, scheduled to be moved by Finance Minister Arun Jaitley in the Rajya Sabha, are expected to sail through with the government scrapping the additional levy of 1% proposed earlier. Technically called the Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, it has proposed to delete Clause 18 of the original bill that intended to compensate the manufacturing states with one per cent additional duty for a period of two years or more for revenue losses. The pan-India tax reform has been passed by the Lok Sabha but is stuck in the Rajya Sabha, where the government lacks a majority.
Global software major Infosys Ltd on Wednesday announced investing $4 million (Rs27 crore) in Cloudyn, an Israeli corporation, providing software as a service (Saas) solutions for the management and optimization of hybrid, multi-cloud deployments. "Cloudyn enables enterprises to manage and optimise their hybrid, multi-cloud deployments. The solution provides visibility into usage, performance and cost, coupled with actionable recommendations for confident cloud growth," said the IT major in a regulatory filing with stock exchange BSE in Mumbai. The company did not disclose the minority holding in percentage equivalent to the cash investment in the five-year-old Israeli firm, which has presence in the US. "The investment is expected to be completed on August 15," the filing noted. Infosys shares closed at Rs1,085.00, up 0.06% on the BSE.
Berger Paints India posted a consolidated net profit of Rs120.30 crore for the first quarter of the current fiscal, registering a jump of 54.6% over the corresponding year-ago period, the company said on Wednesday. "Income from operations for the quarter ended in June this year was Rs1,246.10 crore against Rs1,126.30 crore last year, an increase of 10.6%," it said at its 92nd annual general meeting. "Net profit for the quarter ended was Rs120.30 crore against Rs77.80 crore last year, representing an increase of 54.60%," company chairman K.S. Dhingra said. The company's standalone profits stood at Rs114.20 crore against Rs83.30 crore in the corresponding quarter, registering an increase of 37%. Dhingra said the company has approved issue of bonus shares in the proportion of two bonus shares for every existing fully paid up equity shares. Talking about the expansion plans, CEO Abhijit Roy said the company was setting up two plants in Assam. Berger Paints shares closed at Rs234.55, down 2.25% on the BSE.
Global IT services major HCL Technologies Ltd on Wednesday reported a consolidated net profit of Rs2,047 crore for first (April-June) quarter of fiscal 2016-17, registering 14.8% year-on-year growth. The Noida-based software firm said consolidated revenue grew 15.9% year-on-year to Rs 11,336 crore under the Indian accounting standard. Revenue in constant currency was up 11.2%. Under the International Financial Reporting Standard (IFRS), consolidated net income was up 9.5% to $305 million and consolidated revenue up 10% year-on-year to $1,691 million ($1.7 billion). On standalone basis, net income was Rs1,799 crore and revenue Rs4,829 crore for the quarter under review (Q1). The company’s shares closed at Rs825.90, up 3.16% on the BSE.
Public sector Indian Bank on Tuesday said it closed the first quarter of the current fiscal with a net profit of Rs307.35 crore. In a regulatory filing in BSE, the bank said it has posted a net profit of Rs307.35 crore for the quarter ended on June 30, 2016 as compared to Rs215.27 crore for the quarter ended on June 30, 2015. Indian Bank earned a total income of Rs4,512.96 crore for the quarter ended on June 30, up from Rs4,494.53 crore earned during comparable quarter the previous year. The bank’s shares closed at Rs179.70, down 3.49% on Wednesday on the BSE.
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: