 "Sensex ends 145 points higher; ICICI Bank top gainer")
Markets ended higher after a bout of consolidating in the previous session amid buying interest in financials with ICICI Bank leading the gains.
The S&P BSE Sensex ended up 145 points at 28,129.84 and the Nifty50 settled 40 points higher at 8,699.40. In the broader markets, BSE Midcap ended flat and Smallcap index ended up 0.5%. Market breadth ended positive with 1597 gainers 1227 losers on the BSE.
"Positive earnings and resilient banks, lent positivity, lifting indices to a 4 day high. The reluctance to chase prices any further higher was understandable as markets await ECB’s take on tapering. Rupee, meanwhile has started to slip against US dollar, and FIIs have been largely sellers in Indian equities lately." said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services
Meanwhile, foreign institutional investors were net sellers in equities worth Rs 283 crore on Wednesday as per provisional data released by the stock exchanges.
GST Council Meet
Industry and consumers would have to wait at least a fortnight to know the much-awaited goods and services tax (GST) rates, as the meeting of the Council to decide it ended abruptly on Wednesday, a day ahead of schedule. The Centre and the states failed to reach any consensus on it. Also, the issue of administrative control over tax assesses or dual control - claimed to have been settled earlier - cropped up again. It was decided the GST Council would meet again on November 3 and 4.
Earnings Calendar
Reliance Industries, Biocon, DB Corp, Gulf Oil Lubricants India, Praj Industries and LIC Housing Finance will unveil their second quarter earnings today.
Index Stocks
ICICI Bank surged over 4% on expectations that it would receive its due after the Essar group last week signed a binding agreement with Russia’s Rosneft, United Capital Partners and Trafigura Group Pte. to sell 98% in its most priced asset, the 20 million tonnes per annum Vadinar refinery and Vadinar port in Gujarat. Axis Bank which is also a lender to the Essar Group ended up 0.5%.
Adani Ports & Special Economic Zone jumped over 5% after the company announced a fund raising plan by issuing non-convertible debentures on private placement basis.
Bharti Airtel ended nearly 1% higher. The telecom major has announced a plan wherein any customer buying a new 4G handset will get 10 GB of 3G/4G data on a recharge of Rs 259.
GAIL reversed intra-day losses to end 0.6% higher. The Competition Commission of India (CCI) has ordered an investigation against public sector GAIL India for alleged unfair business practices regarding supply and distribution of gas to industrial players.
SBI ended up 2%. The country's largest lender is planning to raise up to Rs 3,300 crore through additional tier-1 (AT1) bonds to shore up capital adequacy.
Reliance Industries ended flat with positive bias ahead of its second quarter earnings to be announced later today.
Earnings Impact
YES Bank gained 1.3% after the bank reported a better-than-expected 31% year on year (YoY) growth in net profit at Rs 802 crore for the quarter ended September 30, 2016 (Q2FY17). The private sector lender had posted a profit of Rs 610 crore in year ago quarter.
Kajaria Ceramics dropped 9% after it reported a single digit 7.7% year on year (YoY) growth in consolidated net profit at Rs 63.62 crore for the quarter ended September 30, 2016 (Q2FY17). The company had profit of Rs 59.08 crore in year ago quarter. The profit growth in September quarter was lowest in last three years. Edelweiss Securities was expected 23% YoY jump in net profit and 10% growth in net sales for the quarter.
Broader Markets
Among other shares, RBL Bank ended nearly 5% higher after the bank reported a healthy 34% year on year (YoY) jump in net profit after exceptional item at Rs 89.89 crore for the quarter ended September 30, 2016 (Q2FY17).
Aptech closed 3% higher after the company reported nearly three-fold jump in consolidated net profit of Rs 7.17 crore for the quarter ended September 30, 2016 (Q2FY17)
Quess Corp surged 6% after the company posted a strong 65.9% year on year (YoY) jump in consolidated net profit at Rs 30.10 crore for the quarter ended September 30, 2016 (Q2FY17). The company had posted a profit of Rs 18.16 crore in the quarter ended September 30, 2015 (Q1FY16).
The S&P BSE Sensex ended up 145 points at 28,129.84 and the Nifty50 settled 40 points higher at 8,699.40. In the broader markets, BSE Midcap ended flat and Smallcap index ended up 0.5%. Market breadth ended positive with 1597 gainers 1227 losers on the BSE.
"Positive earnings and resilient banks, lent positivity, lifting indices to a 4 day high. The reluctance to chase prices any further higher was understandable as markets await ECB’s take on tapering. Rupee, meanwhile has started to slip against US dollar, and FIIs have been largely sellers in Indian equities lately." said Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services
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Meanwhile, foreign institutional investors were net sellers in equities worth Rs 283 crore on Wednesday as per provisional data released by the stock exchanges.
GST Council Meet
Industry and consumers would have to wait at least a fortnight to know the much-awaited goods and services tax (GST) rates, as the meeting of the Council to decide it ended abruptly on Wednesday, a day ahead of schedule. The Centre and the states failed to reach any consensus on it. Also, the issue of administrative control over tax assesses or dual control - claimed to have been settled earlier - cropped up again. It was decided the GST Council would meet again on November 3 and 4.
Earnings Calendar
Reliance Industries, Biocon, DB Corp, Gulf Oil Lubricants India, Praj Industries and LIC Housing Finance will unveil their second quarter earnings today.
Index Stocks
ICICI Bank surged over 4% on expectations that it would receive its due after the Essar group last week signed a binding agreement with Russia’s Rosneft, United Capital Partners and Trafigura Group Pte. to sell 98% in its most priced asset, the 20 million tonnes per annum Vadinar refinery and Vadinar port in Gujarat. Axis Bank which is also a lender to the Essar Group ended up 0.5%.
Adani Ports & Special Economic Zone jumped over 5% after the company announced a fund raising plan by issuing non-convertible debentures on private placement basis.
Bharti Airtel ended nearly 1% higher. The telecom major has announced a plan wherein any customer buying a new 4G handset will get 10 GB of 3G/4G data on a recharge of Rs 259.
GAIL reversed intra-day losses to end 0.6% higher. The Competition Commission of India (CCI) has ordered an investigation against public sector GAIL India for alleged unfair business practices regarding supply and distribution of gas to industrial players.
SBI ended up 2%. The country's largest lender is planning to raise up to Rs 3,300 crore through additional tier-1 (AT1) bonds to shore up capital adequacy.
Reliance Industries ended flat with positive bias ahead of its second quarter earnings to be announced later today.
Earnings Impact
YES Bank gained 1.3% after the bank reported a better-than-expected 31% year on year (YoY) growth in net profit at Rs 802 crore for the quarter ended September 30, 2016 (Q2FY17). The private sector lender had posted a profit of Rs 610 crore in year ago quarter.
Kajaria Ceramics dropped 9% after it reported a single digit 7.7% year on year (YoY) growth in consolidated net profit at Rs 63.62 crore for the quarter ended September 30, 2016 (Q2FY17). The company had profit of Rs 59.08 crore in year ago quarter. The profit growth in September quarter was lowest in last three years. Edelweiss Securities was expected 23% YoY jump in net profit and 10% growth in net sales for the quarter.
Broader Markets
Among other shares, RBL Bank ended nearly 5% higher after the bank reported a healthy 34% year on year (YoY) jump in net profit after exceptional item at Rs 89.89 crore for the quarter ended September 30, 2016 (Q2FY17).
Aptech closed 3% higher after the company reported nearly three-fold jump in consolidated net profit of Rs 7.17 crore for the quarter ended September 30, 2016 (Q2FY17)
Quess Corp surged 6% after the company posted a strong 65.9% year on year (YoY) jump in consolidated net profit at Rs 30.10 crore for the quarter ended September 30, 2016 (Q2FY17). The company had posted a profit of Rs 18.16 crore in the quarter ended September 30, 2015 (Q1FY16).