The market ended slightly lower today in trading devoid of any spectacle. The trend among pivotals was divergent, with heavyweights Reliance Industries and Infosys remaining subdued for almost the entire day. Cement pivotals firmed up expecting strong Q3 results.
The Sensexs provisional closing was 14,110.66, a fall of 19 points.
The benchmark index had recovered from a lower level after having dropped as many as 58.99 points, to 14,070.65, at 14:32 IST. Barring the dip in late-afternoon trade, the market remained ranged for a better part of the day. Earlier, the Sensex struck an all-time high of 14,211.15 at the onset of trading.
The market-breadth was positive, but had weakened compared to that in the early-afternoon. For 1,334 shares rising on BSE, 1321 declined. As many as 50 shares were unchanged.
The BSE clocked a turnover of Rs 3976 crore.
Bajaj Auto witnessed post results volatility. The stock rose 0.3% to Rs 2776. The scrip had declined as much as 1.8% to a low of Rs 2715 at 14:33 IST. Earlier, the stock held firm ahead of the results. It had gained as much as 3.3% to a high of Rs 2859 at 13:52 IST.
Bajaj Autos net profit rose 24% in December 2006 quarter to Rs 345 crore from Rs 279 crore. Net sales rose 28.3% to Rs 2568.23 crore (Rs 2000.94 crore). The operating profit margin (OPM) was under pressure, declining sharply to 14.1% from 17.89% in December 2005 quarter. Bajaj Autos Q3 results hit the market in mid-afternoon trade.
Reliance Industries lost 1.4% to Rs 1345.50. As per reports, the company had picked up large tracts of land in Delhi for Rs 980 crore for its retail venture.
Infosys shed nearly 1.4% to Rs 2211. Infosys and RIL have a combined weightage of 23.2 % in the Sensex.
Hindalco lost 1.3% to Rs 170, tracking weak global metal prices. Global copper was down 1.7% and zinc 3% on Tuesday.
State Bank of India lost nearly 1% to Rs 1211, after SBI chairman said SBIs loan growth in April-December 2006 period was 16-17% compared with a nearly 30% rise for the banking sector.
Wipro firmed up ahead of its Q3 results, which will hit the market tomorrow morning. The stock gained 1.5% to Rs 637.
TCS dropped 0.5% to Rs 1321.15. In early trade, the stock hit a lifetime high of Rs 1399. After trading hours on Monday, TCS reported a consolidated net profit as per US GAAP of Rs 1104.68 crore in December 2006 quarter, a growth of 11.4% sequentially. The net profit was at the top end of forecasts, between 4.4 - 13.9% growth, by eight analysts. Consolidated revenue as per US GAAP rose 8.4% on a sequential basis, surpassing an expected 6.2 - 8.2% growth of eight analysts.
TCS also announced an agreement with Banco Pichincha, Ecuador's largest private bank, to provide a comprehensive outsourcing solution, in a contract valued at over $ 140 million for five years.
International ratings agency Moody's Investors Service said on Tuesday, there is no change to India's sovereign ratings outlook, and said large public debt was keeping its domestic currency rating at a speculative grade.
"A healthy external position is reflected in an investment-grade Baa3 foreign currency rating, but heavy public debt hampers its domestic currency rating," Moody's statement read. India's domestic currency debt is assigned a speculative-grade Ba2 rating, with a stable outlook. Debt as a ratio of gross domestic product now stands at 92%, the agency said.
European markets were subdued. Key benchmark indices in London, Germany and France were down between 0.03 - 0.15%. Asian markets were mixed. Key benchmark indices in Hong Kong, Japan, and South Korea were down between 0.04 - 0.2%. Key benchmark indices in Singapore and Taiwan were up between 0.09 - 0.1%. US markets were closed on Monday.
Oil prices edged lower below $53 a barrel on Tuesday, pressured by warm weather and ample supplies. US crude was down 14 cents at $52.85 a barrel. Prices last week fell to a 19-month low of $51.56 for US crude, taking losses since the end of last year to around 15%.
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