 "Markets extend gains; Sensex tops 25,900")
Markets extended gains in late morning trades on Tuesday led by a rally in telecom shares and continued buying interest in index heavyweight Reliance Industries. Further, buying by foreign institutional investors also boosted investor sentiment.
At 11:35AM, the 30-share Sensex was up 227 points at 25,943 and the 50-share Nifty was up 62 points at 7,746.
Foreign Institutional Investors remained buyers for the fourth straight session on Monday with net equity purchases of Rs 161 crore.
Asian markets were trading higher but concerns over the geopolitical tensions in Middle East and Ukraine continued to weigh on investor sentiment. Shares in Japan were trading higher after an extended weekend. The benchmark Nikkei was trading 0.9% higher. Hang Seng was up 1.3% and Shanghai Composite was up 1.1% while Straits Times was trading with marginal gains.
Shares of telecom services providers such as Bharti Airtel, Idea Cellular and Reliance Communications (RCom) are trading higher by up to 5% after the telecom regulator authority of India (TRAI) recommended allowing sharing of all categories of airwaves held by operators, the move could help companies to reduce cost of mobile services.
Bharti Airtel was up nearly 4%, RCom and Tata Teleservices (Maharashtra) gained 3% each at Rs 135 and Rs 13 respectively.
India’s third largest telecom operator by subscriber base, was up nearly 45 after it reported a 57 per cent jump in profit after tax at Rs 728 crore in the quarter ended June, beating analysts’ estimates. The company’s profit increased on the back of higher call rates and a 11.5 per cent growth in data usage. In June 2013, Idea had reported profit after tax of Rs 462.7 crore. Analysts had expected the Aditya Birla Group company, which is partly owned by Malaysia’s Axiata, to report profit of Rs 600-650 crore for the April-June quarter.
Reliance Industries is trading higher by 3% at Rs 1,025, extending its Monday’s 2% gain, after reporting a better-than-expected 14% year on year jump in net profit at Rs 5,957 crore for the quarter ended June 30, 2014 (Q1). Analysts, on an average, had expected profit of Rs 5,462 crore for the quarter
HDFC Group shares were also among the top Sensex gainers. HDFC, the country’s largest mortgage financier, was up 0.8% after it reported a 15 per cent growth in net profit to Rs 1,345 crore for the quarter ended June, as compared to Rs 1,173 crore during the same period of the previous year, on the back of 17 per cent net loan growth to individuals.
HDFC Bank which had witnessed a correction post its results on Monday was trading 0.9% higher. On Monday, the private banking major said its net profit for the quarter ended June stood at Rs 2,233 crore, an annual rise of 21 per cent, the least in a decade. This was the fourth consecutive quarter when the annual rise in HDFC Bank’s quarterly profit after tax was below 30 per cent.
Sun Pharma was up over 1%. The pharma major, which has been awaiting various regulatory approvals for its $4-billion merger deal with Ranbaxy, has received clearance from the Bombay Stock Exchange and National Stock Exchange.
Other Sensex gainers include, ITC, TCS and Tata Motors.
Among other shares, Exide Industries has surged 6% to Rs 167 after reporting 16% year on year (yoy) increase in net profit at Rs 185 crore for the first quarter ended June 30, 2014 (Q1), due to higher realisation. The company had posted a net profit of Rs 159 crore in the same period of previous fiscal.
In the broader market, the BSE Mid-cap index was up 0.6% and the Small-cap index was up 0.7%.
Market breadth continued to remain positive with 1,515 gainers and 948 losers on the BSE.
At 11:35AM, the 30-share Sensex was up 227 points at 25,943 and the 50-share Nifty was up 62 points at 7,746.
Foreign Institutional Investors remained buyers for the fourth straight session on Monday with net equity purchases of Rs 161 crore.
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The Indian rupee was trading higher at Rs 60.18 against the previous close of Rs 60.30 tracking weakness in the US dollar against Asian currencies while inflows by foreign funds in equities also boosted sentiment.
Asian markets were trading higher but concerns over the geopolitical tensions in Middle East and Ukraine continued to weigh on investor sentiment. Shares in Japan were trading higher after an extended weekend. The benchmark Nikkei was trading 0.9% higher. Hang Seng was up 1.3% and Shanghai Composite was up 1.1% while Straits Times was trading with marginal gains.
Shares of telecom services providers such as Bharti Airtel, Idea Cellular and Reliance Communications (RCom) are trading higher by up to 5% after the telecom regulator authority of India (TRAI) recommended allowing sharing of all categories of airwaves held by operators, the move could help companies to reduce cost of mobile services.
Bharti Airtel was up nearly 4%, RCom and Tata Teleservices (Maharashtra) gained 3% each at Rs 135 and Rs 13 respectively.
India’s third largest telecom operator by subscriber base, was up nearly 45 after it reported a 57 per cent jump in profit after tax at Rs 728 crore in the quarter ended June, beating analysts’ estimates. The company’s profit increased on the back of higher call rates and a 11.5 per cent growth in data usage. In June 2013, Idea had reported profit after tax of Rs 462.7 crore. Analysts had expected the Aditya Birla Group company, which is partly owned by Malaysia’s Axiata, to report profit of Rs 600-650 crore for the April-June quarter.
Reliance Industries is trading higher by 3% at Rs 1,025, extending its Monday’s 2% gain, after reporting a better-than-expected 14% year on year jump in net profit at Rs 5,957 crore for the quarter ended June 30, 2014 (Q1). Analysts, on an average, had expected profit of Rs 5,462 crore for the quarter
HDFC Group shares were also among the top Sensex gainers. HDFC, the country’s largest mortgage financier, was up 0.8% after it reported a 15 per cent growth in net profit to Rs 1,345 crore for the quarter ended June, as compared to Rs 1,173 crore during the same period of the previous year, on the back of 17 per cent net loan growth to individuals.
HDFC Bank which had witnessed a correction post its results on Monday was trading 0.9% higher. On Monday, the private banking major said its net profit for the quarter ended June stood at Rs 2,233 crore, an annual rise of 21 per cent, the least in a decade. This was the fourth consecutive quarter when the annual rise in HDFC Bank’s quarterly profit after tax was below 30 per cent.
Sun Pharma was up over 1%. The pharma major, which has been awaiting various regulatory approvals for its $4-billion merger deal with Ranbaxy, has received clearance from the Bombay Stock Exchange and National Stock Exchange.
Other Sensex gainers include, ITC, TCS and Tata Motors.
Among other shares, Exide Industries has surged 6% to Rs 167 after reporting 16% year on year (yoy) increase in net profit at Rs 185 crore for the first quarter ended June 30, 2014 (Q1), due to higher realisation. The company had posted a net profit of Rs 159 crore in the same period of previous fiscal.
In the broader market, the BSE Mid-cap index was up 0.6% and the Small-cap index was up 0.7%.
Market breadth continued to remain positive with 1,515 gainers and 948 losers on the BSE.