Sensex tanks over 100 points on disappointing HLL results
HLL results weigh down the market
Disappointing quarterly results from FMCG major Hindustan Lever dragged the market lower in the afternoon trades as selling continued after early weakness and subsequent decline in stock prices. While heavyweights led the losses on the bourses, weakness was conspicuous in banking stocks.
At 14:27 IST, the Sensex was trading 117.91 points lower at 6,166.29. The NSE S & P CNX Nifty index was down 33.80 points at 1,907.59.
The market ended with a small gain on Thursday on expiry of the April series futures contracts. However, the May series futures contracts have been trading at sharp discount to the spot market, indicating a bearing view of the market by traders. Besides, in its annual Credit Policy, the Reserve Bank of India on Thursday hiked the reverse repo rate the rate at which banks park their surplus funds with the RBI by 25 basis points to 5%. The decision is a clear signal that the interest rate cycle may have turned.
Hindustan Lever (down 4.56% to Rs 137.10) lost ground having come off its days high of Rs 145 as selling pressure intensified on the counter after the company posted quarterly numbers that fell short of expectations. For quarter ended 31 March 2005, the FMCG giant posted a 15.13% fall in the net profit to Rs 250.25 crore (Rs 294.88 crore) on total income of Rs 2,581.02 crore (Rs 2,424.69 crore). Over 8.40 lakh HLL shares were traded on BSE so far.
Banking stocks traded lower. The BSE Bankex was trading 116.77 points, or 3.24%, lower at 3,491.69.
Banking and financial sector blue chips ICICI Bank (down 4.29% to Rs 359), State Bank of India (down 2.85% to Rs 587), HDFC (down 2.07% to Rs 531.40) and HDFC Bank (down 1.04% to Rs 531) lost further ground as selling continued amid fears that rising bond yields may affect banks profits.
In its annual Credit Policy, the Reserve Bank of India on Thursday, hiked the reverse repo rate the rate at which banks park their surplus funds with the RBI by 25 basis points to 5%. The decision is a clear signal that the interest rate cycle may have turned.
Bank of India (down 6.32% to Rs 80.85) lost ground having come off its days high of Rs 87.90 on selling after the company announced disappointing quarterly results. For quarter ended 31 March 2005, the PSU bank posted a 85% fall in the net profit of Rs 52.79 crore (Rs 349.10 crore) on total income of Rs 1,978.65 crore (Rs 2,059.09 crore). Over 8.50 lakh BoI shares were traded on BSE so far.
Other banking stocks Union Bank of India (down 5.59% to Rs 97.10), Andhra Bank (down 5.52% to Rs 93.35), Bank of Maharashtra (down 4.13% to Rs 30.15), Bank of Baroda (down 4.32% to Rs 173.90), Indian Overseas Bank (down 3.95% to Rs 70.55), Canara Bank (down 3.59% to Rs 174.50), Corporation Bank (down 3.65% to Rs 330) and Kotak Mahindra Bank (down 3.51% to Rs 297.20) also lost further ground on sustained selling pressure.
Punjab National Bank (down 0.55% to Rs 350) traded lower off its days high of Rs 358.80 on selling at higher levels. The PNB stock rose after the bank announced improved quarterly results in early afternoon. Over 6.40 lakh PNB shares were traded on BSE so far.
Grasim (down 3.13% to Rs 1,174.80) remained subdued as selling continued after the company announced disappointing quarterly results. For quarter ended 31 March 2005, the Aditya Birla group flagship posted an 18.63% fall in the net profit to Rs 229.52 crore (Rs 282.07 crore) on total income of Rs 1,724.65 crore (Rs 1,625.27 crore). Close to 50,000 Grasim shares were traded on BSE so far.
Zee Telefilms (up 1.62% to Rs 131.70) traded higher after the company announced quarterly results. On consolidated basis, for quarter ended 31 March 2005, the Zee Telefilms group posted a 2.02% rise in the net profit to Rs 92.69 crore (Rs 90.85 crore) on total income of Rs 400.17 crore (Rs 410.49 crore). Over 3.72 lakh Zee shares were traded on BSE so far.
United Phosphorus (down 0.15% to Rs 743.95) traded flat having come off its days high of Rs 772 after the company announced improved quarterly results. For quarter ended 31 March 2005, the company posted a net profit of Rs 21.48 crore (Rs 10.35 crore) on net sales of Rs 349.06 crore (Rs 261.91 crore).
The volumes on the bourses were modest with shares worth Rs 1,300 crore being traded on BSE so far. The breadth of the market was very weak with 1,673 losers and 593 gainers.
HLL results weigh down the market
Disappointing quarterly results from FMCG major Hindustan Lever dragged the market lower in the afternoon trades as selling continued after early weakness and subsequent decline in stock prices. While heavyweights led the losses on the bourses, weakness was conspicuous in banking stocks.
At 14:27 IST, the Sensex was trading 117.91 points lower at 6,166.29. The NSE S & P CNX Nifty index was down 33.80 points at 1,907.59.
The market ended with a small gain on Thursday on expiry of the April series futures contracts. However, the May series futures contracts have been trading at sharp discount to the spot market, indicating a bearing view of the market by traders. Besides, in its annual Credit Policy, the Reserve Bank of India on Thursday hiked the reverse repo rate the rate at which banks park their surplus funds with the RBI by 25 basis points to 5%. The decision is a clear signal that the interest rate cycle may have turned.
Hindustan Lever (down 4.56% to Rs 137.10) lost ground having come off its days high of Rs 145 as selling pressure intensified on the counter after the company posted quarterly numbers that fell short of expectations. For quarter ended 31 March 2005, the FMCG giant posted a 15.13% fall in the net profit to Rs 250.25 crore (Rs 294.88 crore) on total income of Rs 2,581.02 crore (Rs 2,424.69 crore). Over 8.40 lakh HLL shares were traded on BSE so far.
Banking stocks traded lower. The BSE Bankex was trading 116.77 points, or 3.24%, lower at 3,491.69.
Banking and financial sector blue chips ICICI Bank (down 4.29% to Rs 359), State Bank of India (down 2.85% to Rs 587), HDFC (down 2.07% to Rs 531.40) and HDFC Bank (down 1.04% to Rs 531) lost further ground as selling continued amid fears that rising bond yields may affect banks profits.
In its annual Credit Policy, the Reserve Bank of India on Thursday, hiked the reverse repo rate the rate at which banks park their surplus funds with the RBI by 25 basis points to 5%. The decision is a clear signal that the interest rate cycle may have turned.
Bank of India (down 6.32% to Rs 80.85) lost ground having come off its days high of Rs 87.90 on selling after the company announced disappointing quarterly results. For quarter ended 31 March 2005, the PSU bank posted a 85% fall in the net profit of Rs 52.79 crore (Rs 349.10 crore) on total income of Rs 1,978.65 crore (Rs 2,059.09 crore). Over 8.50 lakh BoI shares were traded on BSE so far.
Other banking stocks Union Bank of India (down 5.59% to Rs 97.10), Andhra Bank (down 5.52% to Rs 93.35), Bank of Maharashtra (down 4.13% to Rs 30.15), Bank of Baroda (down 4.32% to Rs 173.90), Indian Overseas Bank (down 3.95% to Rs 70.55), Canara Bank (down 3.59% to Rs 174.50), Corporation Bank (down 3.65% to Rs 330) and Kotak Mahindra Bank (down 3.51% to Rs 297.20) also lost further ground on sustained selling pressure.
Punjab National Bank (down 0.55% to Rs 350) traded lower off its days high of Rs 358.80 on selling at higher levels. The PNB stock rose after the bank announced improved quarterly results in early afternoon. Over 6.40 lakh PNB shares were traded on BSE so far.
Grasim (down 3.13% to Rs 1,174.80) remained subdued as selling continued after the company announced disappointing quarterly results. For quarter ended 31 March 2005, the Aditya Birla group flagship posted an 18.63% fall in the net profit to Rs 229.52 crore (Rs 282.07 crore) on total income of Rs 1,724.65 crore (Rs 1,625.27 crore). Close to 50,000 Grasim shares were traded on BSE so far.
Zee Telefilms (up 1.62% to Rs 131.70) traded higher after the company announced quarterly results. On consolidated basis, for quarter ended 31 March 2005, the Zee Telefilms group posted a 2.02% rise in the net profit to Rs 92.69 crore (Rs 90.85 crore) on total income of Rs 400.17 crore (Rs 410.49 crore). Over 3.72 lakh Zee shares were traded on BSE so far.
United Phosphorus (down 0.15% to Rs 743.95) traded flat having come off its days high of Rs 772 after the company announced improved quarterly results. For quarter ended 31 March 2005, the company posted a net profit of Rs 21.48 crore (Rs 10.35 crore) on net sales of Rs 349.06 crore (Rs 261.91 crore).
The volumes on the bourses were modest with shares worth Rs 1,300 crore being traded on BSE so far. The breadth of the market was very weak with 1,673 losers and 593 gainers.