Indices edge lower in early trade
Key indices edged lower in early trade as data after market hours yesterday, 12 April 2017 showed that industrial production contracted in February while consumer inflation edged higher in March. At 9:30 IST, the barometer index, the S&P BSE Sensex, was down 66.67 points or 0.22% at 29,576.81. The Nifty 50 index was down 24.55 points or 0.27% at 9,178.90. IT and metal stocks declined.
Infosys declined 3.05% after consolidated net profit as per International Financial Reporting Standards (IFRS) fell 2.8% to Rs 3603 crore on 0.9% decline in revenue to Rs 17120 crore in Q4 March 2017 over Q3 December 2016. The result was announced before market hours today, 13 April 2017.
As per the company’s outlook revenues on consolidated basis for the fiscal year ending 31 March 2018, under IFRS are expected to grow 6.5%-8.5% in constant currency. Revenues are expected to grow 2.5%-4.5% in Rupee terms based on the exchange rates as of 31 March 2017.
The breadth, indicating the overall health of the market, was positive. On the BSE, 917 shares rose and 712 shares fell. A total of 58 shares were unchanged.
On macroeconomic data front, India’s industrial production declined 1.2% in February 2017 over February 2016, snapping 3.3% growth recorded in January 2017. The manufacturing sector’s production dipped 2% in February 2017, mainly contributing to the dip in industrial production.
The inflation based on consumer price index (CPI) increased to 3.81% in March 2017 (new base 2012=100), compared with 3.65% in February 2017. The corresponding provisional inflation rate for rural area was 3.75% and urban area 3.88% in March 2017 as against 3.67% and 3.55% in February 2017. The core CPI inflation rose marginally to 4.79% in March 2017 from 4.75% in February 2017. The CPI and IIP data was announced after market hours yesterday, 12 April 2017.
Overseas, Asian stocks were mixed. US stocks closed modestly lower yesterday, 12 April 2017 led by industrial and materials companies on another day of subdued trading ahead of the long Easter holiday weekend.
China’s exports rose 14.8% in the first quarter from a year earlier in yuan terms, extending an 11% increase in the first two months, official data showed. Imports in the January to March period increased 31.1% in yuan terms from a year earlier, compared with a 34.2% rise in the first two months, the General Administration of Customs said in a release.
US Secretary of State Rex Tillerson met with the Russian counterpart Sergei Lavrov to discuss the civil war in Syria and nuclear capabilities of North Korea. In recent days, the trading mood has been dented by heightened geopolitical tensions.
Back home, Adani Ports & Special Economic Zone (down 1.94%), Tata Steel (down 1.1%) and L&T (down 0.85%) fell from the Sensex pack.
JSW Steel fell 0.53%. The company said it has raised $500 million by allotment of fixed rate senior unsecured notes in accordance with Regulation S of the US Securities Act, 1933 and applicable Indian regulations. The notes will be listed on Singapore Exchange Securities Trading. The announcement was made after market hours yesterday, 12 April 2017.
Cipla rose 0.8% after the company announced that its wholly-owned subsidiary, Cipla Medpro South Africa, completed acquisition of Anmaraton 12 April 2017. The announcement was made after market hours yesterday, 12 April 2017.
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