 "Markets stage a recovery; Sensex hovers around 26,000")
Markets rebounded in late trades with the Sensex reclaiming 26,000 mark as renewed buying interest in private banking majors helped offset losses in capital goods major L&T.
At 14.30, the S&P BSE Sensex gained 0.1% at 26014.21 level while the CNX Nifty was up 0.3% at 7,769.50.
Meanwhile, the BSE Small-cap index underperformed benchmark indices as the index was down nearly 0.2% while the BSE Mid-cap gained marginally by 0.1%
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The breadth at the BSE was weak as 1575 shares declined while 1162 advanced.
Global Markets
Asian markets were trading mixed ahead of key US economic data and the two-day US FOMC meet which ends today. Japanese shares gained for the fourth straight session to end with marginal gains as better-than-expected corporate earnings helped offset sluggish industrial data. The benchmark Nikkei ended up 0.18% at 15,646.23. The Shanghai Composite was marginally down 0.1% while Hang Seng was up 0.3%.
European shares were trading weak in early deals as the US and the European Union imposed fresh sanctions against Russia. The CAC, DAX and FTSE were down 0.1-0.5% each.
Indian Rupee
The Indian rupee was trading lower at 60.19 compared to its previous close of 60.12 because of dollar month-end dollar demand from crude oil importers. Further, the weakness in domestic equities also weighed on sentiment.
Sectors and Stocks
BSE Heathcare, Consumer durables and Bankex indices has surged over 1% followed by and Realty, Power, Auto and Oil & Gas indices, all up between 0.1- 0.5% each.
BSE Capital Goods index has slumped nearly 5% followed IT and Metal indices, both dipped over 3%.
L&T has tanked over 7% after reporting the consolidated net profit of Rs 967 crore for the quarter ended June 2014 (Q1), mainly on account of one-time gain of Rs 249 crore on disinvestments and stake sale in one of its project.
Futhermore, Sesa Sterlite slipped over 2% 0 after reporting lower-than-expected consolidated net profit of Rs 375 crore for Q1, as the depreciation accounting charges of its oil and gas subsidiary Cairn India ate into its bottom line. The company's consolidated net sales, on the other hand, were a tad down from the estimates at Rs 17,186 crore in the quarter under review.
Tata Motors dipped nearly 1%, extending its past two-days fall, on reports that Jaguar Land Rover (JLR) has reduced its prices on three of its high end models in response to an pricing and anti-monopoly investigation in China.
Tata Power, SBI, Wipro, Reliance and HDFC are among other Sensex losers.
In contrast, Bharti Airtel surged nearly 5% after reporting 61% year-on-year jump in consolidated net profit at Rs 1,108 crore for Q1, backed by a 74% rise in mobile data revenue. The country’s largest cell phone operator had profit of Rs 689 crore in the corresponding quarter last year.
ITC was up over 1% after its cigarette business’ revenues grew 18.8% year-on-year (yoy) to Rs 4,201 crore and Ebit (earnings before interest and tax) margin up 142 basis points to 64.8% for Q1. The country’s largest cigarette maker reported a better-than-expected 25% yoy rise in quarterly sales at Rs 9,160 crore during the quarter under review against Rs 7,339 crore in June 2013. The sales growth during the quarter was highest since March 2010 quarter.
Pharma company Dr Reddy's Lab gained over 2% after the company reported Q1 net profit of Rs 550 crore as compared to Rs 361 crore in the year-ago quarter, an uptick of 52%.
Also, Lupin has surged 5% to Rs 1,175, also its new high on National Stock Exchange, after reporting a better-than-expected 56% year-on-year (y-o-y) jump in net profit at Rs 625 crore for the Q1, on back of strong growth in the US and in India. The pharmaceutical company had profit of Rs 401 crore in the same quarter last fiscal.
ICICI Bank, Gail, HUL, Hindalco, M&M, Cipla and Hero Motocorp are among the Sensex gainers, all up over 1%.