Update at 2.09 PM: The BSE Sensex was trading 66 points lower at 30,504; top index losers are Cipla,Sun Pharma and Adani Ports.
Top trending stocks on the BSE include CRISIL, Bank of India, ITC, GAIL (India) and Kotak Mahindra Bank. GAIL (India) over Q4 results, ITC over GST-led gains, Bank of India after Q4 results and Kotak Mahindra Bank for stake sale by promoter.
Uday Kotak, vice-chairman and MD of Kotak Mahindra Bank, sold 1.80 crore shares on Monday for Rs 1,687 crore, which brought down his stake to 29.79 percent from 30.79 percent. The RBI has mandated promoters of private banks to bring down their holding to 30 percent by June 2017. At around 2.15 pm, the Kotak Mahindra Bank stock was trading 0.23 percent higher at Rs 943.
GAIL (India) was trading 2.29 percent lower at Rs 382 after hitting an intraday low of Rs 365.
Original story:
Sun Pharma shares dropped almost 8 percent in early trade on Tuesday after its overseas subsidiary Taro Pharma Industries reported dismal results for March quarter (Q4). In the process, the stock hit a six-month low before recovering to trade at Rs. 602.90 at around 11.47 am, still down 5.83 percent from the previous day's close of Rs. 640.
Taro Pharma's Q4 net profit fell 28 percent on a year-on-year basis to $83 million while sales dropped 26 percent to $196.4 million. Taro contributes about 20 percent to the parent company's sales and profit.
Sun Pharma will be declaring its Q4 and FY2017 results on Friday. The company acquired Taro for $454 million in May 2007.
At around 11.52 am, the BSE Sensex was down 155 points to 30,416. Top index losers apart from Sun Pharma were GAIL (India), Cipla and Adani Ports.
State-run energy company GAIL(India) had reported 69 percent fall in its Q4 net profit to Rs. 260 crore due to an exceptional item, but for which the net profit would have been Rs. 1,043 crore, an increase of 25 percent, YoY.
"The fall in net profit was due to impairment of investments of Rs. 783 crore in the Ratnagiri Gas and Power Pvt Ltd. The LNG terminal there is running at 1.5-2 mt capacity while the power plant is running at 500 MW capacity. The company has already started producing power in one block. The company has indicated that the impairment was necessary as per the accounting standards," Angel Broking said in a note.
Top Sensex gainers were Maruti Suzuki (up 2.36 percent at Rs. 6,858), Wipro (up 1.11 percent at Rs 526) and Hindustan Unilever (up 1.02 percent at Rs. 1,029).
SpiceJet rebounded after hitting an intraday low of Rs. 95.90 and was trading at Rs. 103.45.
In other corporate developments, Tata Sons appointed Saurabh Agrawal as group chief financial officer, who moves from the Aditya Birla Group.
"He brings deep capital markets knowledge and valuable cross-industry experience to this critical leadership role in the Tata group. His expertise will help us in driving rigour and synergy in capital allocation decisions, investment management as well as consolidation and optimisation of the group's business portfolio. We look forward to his contribution in driving financial performance of the group," N Chandrasekaran, chairman of Tata Sons, said in a statement.
