A rangebound movement was witnessed as key benchmark indices traded in negative zone in early afternoon trade. At 12:15 IST, the barometer index, the S&P BSE Sensex was down 92.04 points or 0.33% at 28,116.58. The decline in the Nifty 50 index was lower than the Sensex's fall in percentage terms. The Nifty was currently down 14.35 points or 0.17% at 8,651.95. Weakness in Asian stocks weighed on sentiment on the domestic bourses.
The market breadth indicating the overall health of the market was positive. On BSE, 1,242 shares rose and 1,107 shares declined. A total of 191 shares were unchanged. The BSE Mid-Cap index was currently up 0.89%. The BSE Small-Cap index was currently up 0.53%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian stocks edged lower tracking lacklustre trading in US overnight. In Japan, the Nikkei 225 Average ended 0.56% higher. The Bank of Japan (BOJ) kept interest rates and government bond buying unchanged after the conclusion of a two-day monetary policy meeting. The Nikkei 225 Average was currently up 0.04%. The Japan's central bank said it would buy 6 trillion worth of exchange-traded funds annually, up from 3.3 trillion previously, in an attempt to stoke inflation and growth by pumping money into the economy. BOJ said it would leave its asset-purchase target at 80 trillion a year. US stocks closed slightly higher yesterday, 28 July 2016 amid declines in oil prices, as major tech stocks gained.
Stocks of public sector banks witnessed a mixed trend. Punjab National Bank (down 1.94%), Canara Bank (down 1.72%), Bank of Baroda (down 0.06%) and Union Bank of India (down 0.23%) edged lower. Indian Bank (up 1.22%), IDBI Bank (up 1.21%) and State Bank of India (up 0.01%) edged higher.
Stocks of private sector banks moved higher. Kotak Mahindra Bank (up 1.05%), Axis Bank (up 0.64%), Yes Bank (up 0.07%) and IndusInd Bank (up 0.98%) edged higher.
ICICI Bank was off 2.88%. The bank is scheduled to announce Q1 June 2016 results today, 29 July 2016.
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Index heavyweight HDFC Bank was down 0.52%.
Auto stocks advanced. Bajaj Auto (up 2.19%), TVS Motor Company (up 1.45%), Mahindra & Mahindra (up 1.27%), Hero MotoCorp (up 1.13%) and Ashok Leyland (up 0.74%) rose. Maruti Suzuki India (down 0.3%) edged lower.
Tata Motors was up 0.16%. The company announced after market hours yesterday, 28 July 2016, that the board constituted committee after a meeting held on 28 July 2016 approved offering of 4,000 rated, listed, unsecured, 8% coupon, redeemable, non-convertible debentures (NCDs) of face value Rs 10 lakh each, at par, aggregating upto Rs 400 crore on a private placement basis. The NCDs have a tenure of 1,095 days and a deemed date of allotment is 1 August 2016. The date of maturity of NCDs is 1 August 2019.
Eicher Motors (EML) was up 3.48% at Rs 21,809.65 after consolidated net profit surged 58.6% to Rs 376 crore on 42% growth in total income from operations to Rs 1556 crore in Q1 June 2016 over Q1 June 2015. The stock hit a record high of Rs 22,382.15 in intraday trade. The result was announced after market hours yesterday, 28 July 2016.
The company's earnings before interest, taxation, depreciation and amortization (EBITDA) surged 64.6% to Rs 470 crore in Q1 June 2016 over Q1 June 2015. EBITDA margin expanded to 30.2% in Q1 June 2016 from 26.1% in Q1 June 2015.
EML's Managing Director & CEO Siddhartha Lal said that the management's immediate business outlook for Royal Enfield business remains strong and it continues to grow consistently, competitively and profitably towards leading and expanding the mid-sized motorcyle segment globally.
Commenting on VE Commercial Vehicles' (VECV) performance, Siddhartha said that VECV demonstrated an impressive performance in Q1 June 2016 with sales of 16,071 units recording a growth of 32.5% over Q1 June 2015. VECV also increased its overall market share to 15.1% in Q1 June 2016, as compared to 13.2% recorded in Q1 June 2015. VECV continues to do well in the sub 5-ton category with the introduction of Pro 1049 where it is currently selling more than 100 trucks every month since its launch in the last quarter. Eicher Motors' 50:50 joint venture with Polaris Industries, Eicher Polaris Private Ltd., through its product Multix is generating a lot of interest among its target customers. Multix is now present in 50 locations across 8 states and it continues to gain momentum in its target markets, he further added.
Reliance Infrastructure (RInfra) was up 5.03% after media reports suggested that Brookfield has begun exclusive negotiations with RInfra for acquiring RInfra's road projects. According to media reports, global alternative asset manager Brookfield and RInfra have begun exclusive negotiations for Brookfield's acquisition of a portfolio of 11 road projects of Reliance Infrastructure for an enterprise value of Rs 8000 crore. RInfra is among the largest NHAI concessionaire with concession periods ranging from 18-30 years. The decision to sell the road assets is a part of RInfra's plan to reduce debt and deleverage its balance sheet, according to reports. The road assets belong to the infrastructure division of the company.
Meanwhile, according to reports, the Congress party yesterday, 28 July 2016, indicated to the government that the outcome on its negotiations on the Goods and Services Tax (GST) constitutional amendment bill, particularly scrapping the 1% additional tax on the interstate supply of goods, has been positive. This has paved the way for the government to take up the constitutional amendment bill in the Rajya Sabha as early as next week, reports suggested.
The GST bill, which has been approved by the Lok Sabha is pending in the Rajya Sabha. A constitutional amendment bill requires at least 50% attendance and support of two-third of those present and voting in the house. For the GST bill to become a law, the bill also needs to be approved by half the state assemblies after its passage in the parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. The GST seeks to create a seamless national market in the country by replacing plethora of state taxes and central taxes by one tax. The month-long monsoon session of the parliament will conclude on 12 August 2016.
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