We had mentioned in Monday’s closing report that Nifty, Sensex might pause for breath. The major indices of the Indian stock markets were range-bound on Tuesday and closed with small losses over Monday’s close. The trends of the major indices, in the course of Tuesday’s trading, are given in the table below:
Profit booking, coupled with caution ahead of release of key macro-economic data, depressed the Indian equity markets on Tuesday. Consequently, the key indices provisionally closed the day's trade flat -- marginally in the red. Selling pressure was witnessed in healthcare, IT (information technology) and capital goods stocks. The BSE market breadth was skewed in favour of the bears - with 1,564 declines and 1,001 advances. The key indices on Monday had closed at their highest levels since October 2015. Initially on Tuesday, the key indices opened on a higher note, in-sync with their Asian peers. The equity markets soon ceded their initial gains on the back of profit booking after five consecutive sessions of rise.
Major macro-economic data like the fourth quarter GDP (gross domestic product), fiscal deficit and eight core industries (ECI) are expected to be released later on Tuesday. These key data points can give further cues towards a rate decision by the Reserve Bank of India (RBI) in its monetary policy meet scheduled on June 7.
Terming the banks non-performing assets (NPAs), or bad loans, issue a serious concern to the economy, Union Minister of State for Finance Jayant Sinha has said the government was working to sort it out and reduce NPAs. "For this, the government has brought the Bankruptcy Bill and given more freedom and transparency to the banking sector," the minister told ETV News Network. "Most of the banks incurred heavy NPAs between 2008 and 2012, during the UPA government. The present government decided to make it public, so that people should know what is the present situation," he said. Sinha said his government is serious about taking action against wilful defaulters. The Bank Nifty gained 0.57% in Tuesday’s trading to close at 17,620.90.
International cigarette companies including ITC and Godfrey Phillips have implemented the rule requiring 85% pictorial warning, they said on Tuesday. According to the companies, the decision was taken following the Supreme Court ruling making the new rule mandatory, even if the case was transferred back to Karnataka High Court. "It is a welcome change to see old packets with 40% warnings on one side of the pack giving way to new packs with larger warnings... There was criticism against the industry that the companies had flooded the market with old stocks in the absence of any clear guideline from the government on the date by which these should be exhausted," said a statement from the companies. "We have implemented the 85% pictorial warnings and now they can be seen on the new packets in the market," a company spokesman told IANS. ITC shares closed at Rs351.60, down 1.40% on the BSE. Godfrey Phillips India closed at Rs892.50, down 0.46% on the BSE.
The Krishi Kalyan Cess of 0.5% on services imposed by Finance Minister Arun Jaitley comes into force from Wednesday through which the government proposes to collect Rs5,000 crore during the remaining 10 months of the current fiscal. The government policies are aimed at improving the rural sector and manufacturers of consumer goods, fertilisers and farm equipment are likely to benefit in the stock market from the improved rural purchasing power. This is however, likely to occur only after the monsoon.
On a consolidated basis, the Sun Pharmaceuticals group has posted a net profit of Rs4,715.91 crore for the year ended March 31, 2016 against Rs4,539.38 crore for the year ended March 31, 2015. The group's total income stood at Rs28,728.95 crore for the year ended March 31, 2016 against Rs27,842.84 crore for the year ended March 31, 2015. According to a company statement, the board of directors of Sun Pharmaceuticals has decided to meet on June 23 to evaluate a proposal for buy-back of equity shares. Sun Pharma shares closed at Rs762.70, down 6.13% on the BSE.
State-run generator NTPC on Monday posted a 7.73% drop in its standalone net profit for the fourth quarter ended March at Rs2,716.41 crore owing to low demand from state distribution companies (discoms). NTPC had posted a net profit of Rs2,944.03 crore in the corresponding quarter of last year, the company said in a stock exchange filing. "The standalone net profit saw a dip this quarter due to lower demand from discoms," a senior company official told reporters. Many discoms' purchasing capacities are under stress from huge accumulated debts. Thus affected, the company's standalone net sales of electricity fell to Rs17,990 crore during the quarter in question, as against sales of Rs19,229.94 crore in the same period year ago. Total standalone income in the fourth quarter fell to Rs18,560.70 crore, from Rs19,879.38 crore in the same quarter of 2014-15. The company supplied 57.95 billion units of electricity during the period as compared to 57.38 billion units in the corresponding quarter of the previous fiscal. For the full fiscal 2015-26, the company reported a standalone net profit of Rs10,242.91 crore as compared to Rs10,290.86 crore in 2014-15. NTPC shares closed at Rs143.25, up 0.10% 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: