MARKET COMMENTARY

After snapping 8-session gaining spree on Friday, Indian indices plunged in negative terrain instantly following a green start. Absence of any buying catalyst led benchmarks to magnify losses with Sensex losing over a ton. Markets continued the southward journey amidst cautiousness ahead of F&O expiry this week. Both barometer gauges settled with a cut of nearly half a percent with Nifty below 7750. On BSE sectorial front, Realty was the top loser.

Among global peers, US markets slipped amidst disappointing corporate earnings. Asian and European markets were trading mixed as investors were a bit cautious on persistent tensions in Ukraine and Middle East.

Back home, on currency front, Rupee stretched its consolidation trend due to the Dollar demand by importers. In futures trades, INR hit an intra-day high of 60.07/USD and an intra-day low of 60.12/USD. In spot trades, INR hit an intra-day high of 60.07/USD and an intra-day low of 60.13/USD. As per RBI reference rates, INR stood at 60.1/USD.

On commodities front, the yellow metal was trading firm after a good start supported by geopolitical events. In futures trades of August expiry, Gold marked an intra-day high at Rs 28035 per 10 grams and an intra-day low at Rs 27890 per 10 grams.

On stock specific front, Anil Ambani led Reliance Power’s (3.47% up) 100% subsidiary, Reliance CleanGen (RCL) signed a Memorandum of Understanding (MOU) with Jaiprakash Power Ventures Ltd (3.17% up) for 100% acquisition of the entire hydroelectric power portfolio. Consequently, Reliance Power will become one of the largest private hydroelectric power producer in India.

Mastek spurted 3.4% on BSE after Mastek UK, wholly owned subsidiary signed a major contract with British Telecom (BT) to support new IT operations and systems for a UK Government agency.

Key Quarterly Results

Hindustan Unilever Ltd (HUL) jumped 3.7% to make fresh 52 week high at Rs 691.05 on BSE after its Q1 Net climbed 3.7% to Rs 1056.85 crore as compared to Rs 1019.25 crore in the same quarter of previous year.

Central Bank of India rallied 7% on BSE after its Q1FY15 Net jumped around 9 fold at Rs 191.60 crore as compared to Rs 21.93 crore for same quarter of the previous year. Bank’s gross NPA for the quarter stood at 6.15%, as compared to 6.03% in Q1FY14.

Bank of Baroda (BoB) Q1FY15 Net rose 16.61% to Rs 1361.88 crore as compared to Rs 1167.87 crore for same quarter of the previous year. Bank’s gross NPA for the quarter stood at 3.11%, as compared to 2.99% in Q1FY14. The stock ended marginally up on BSE.

Indian Overseas Bank gained 1% on BSE after posting over two fold jump in Q1FY15 Net at Rs 271.72 crore as compared to Rs 125.79 crore for same quarter of the previous year. Bank’s gross NPA for the quarter stood at 5.84% as compared to 4.45% in Q1FY14.

Godrej Consumer Products ended flat after recording a decent growth of 12.71% at Rs 120.79 crore in Q1FY15 as compared to Rs 107.16 crore for same quarter in the previous year. On consolidated basis, group’s Net rose 8.09% at Rs 143.45 crore for the quarter as compared to Rs 132.71 crore for Q1FY14.

The market breadth on the BSE closed in negative. Advancing and declining stocks were 1275 and 1714 respectively, while 128 scrips remained unmoved.

The S&P BSE Sensex ended at 25991.23, down 135.52 points or 0.52%. The 30 share index touched a high and a low of 26181.83 and 25900.25 respectively. 9 stocks advanced against 21 declining ones on the benchmark index.

The CNX Nifty lost 41.75 points or 0.54% to settle at 7748.70. The index touched high and low of 7799.90 and 7722.65 respectively. 14 stocks advanced against 36 declining ones on the index.