Stocks of public sector banks, metal and mining firms and pharma companies led the rally for key benchmark indices. The barometer index, the S&P BSE Sensex, rose 327.92 points or 1.35% at 24,666.35, as per the provisional closing data. The gains for 50-unit Nifty 50 index were lower in percentage terms than those for Sensex. The Nifty rose 85.10 points or 1.15% at 7,489.10, as per the provisional closing data. The two key benchmark indices extended gains after seeing a bout of volatility in late trade. In overseas stock markets, Asian and European stocks edged higher amid reduced expectations for further interest rate increases from the US Federal Reserve in this calendar year.
The Sensex rose 334.47 points or 1.37% at the day's high of 24,672.90 in late trade, its highest level since 2 February 2016. The barometer index rose 7.36 points or 0.03% at the day's low of 24,345.79 at the onset of the trading session. The Nifty rose 99.15 points or 1.33% at the day's high of 7,503.15 in late trade, its highest level since 2 February 2016. The index rose 2.65 points or 0.03% at the day's low of 7,406.65 at the onset of the trading session.
In overseas stock markets, Asian and European stocks edged higher amid reduced expectations for further interest rate increases from the US Federal Reserve in this calendar year. US stocks registered modest gains yesterday, 4 February 2016, led by advances in the materials and industrials sectors.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 1,619 shares rose and 1,016 shares declined. A total of 136 shares were unchanged. The BSE Mid-Cap index was provisionally up 1.9%, outperforming the Sensex. The BSE Small-Cap index was provisionally up 1.21%, underperforming the Sensex.
The total turnover on BSE amounted to Rs 2843 crore, higher than turnover of Rs 2742.06 crore registered during the previous trading session.
Lupin jumped after the company reported strong financial performance on sequential basis in Q3 December 2015. The stock jumped 10.72% at Rs 1,829.20. Lupin's consolidated net profit rose 29.6% to Rs 529.80 crore on 5.6% growth in net sales to Rs 3357.70 crore in Q3 December 2015 over Q2 September 2015. Consolidated net profit fell 11.9% to Rs 529.80 crore on 6.8% growth in net sales to Rs 3357.70 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours today, 5 February 2016.
Nilesh Gupta, Managing Director of Lupin said that the quarter saw a significant pick up in approvals as well as product launches with the company clocking in good growth in the US, India and Japan. The company would continue its investments in research as well as its manufacturing operations and this will drive long-term growth, Gupta said.
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Bosch edged lower after announcing third quarter results. The stock fell fell 5.17% at Rs 16,100. The stock was volatile. The stock hit a high of Rs 17,646 and a low of Rs 16,005 in intraday trade. The company's net profit rose 99.12% to Rs 220.77 crore on 12.7% growth in total income to Rs 2786.08 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours today, 5 February 2016.
Bosch's board of directors at its meeting held today, 5 February 2016, approved in principle the transfer by way of sale, of the Starter Motors and Generators business of the company (SG-IN) to a subsidiary of Robert Bosch Starter Motors Generators Holding GmbH. The board approved the sale of SG-IN business as a going concern on a slump sale basis for a consideration of Rs 486.2 crore. In case the global SG transaction gets executed within the next 18 months and results in a higher implicit price for SG-IN, there will be an additional contingent consideration payable to Bosch, the company said.
Steel sector stocks edged higher on media reports the government may set minimum import price (MIP) on steel imports. Jindal Steel & Power (up 10.7%), Steel Authority of India (up 6.23%) and JSW Steel (up 3.02%) edged higher. The government has been considering MIP on steel in order to protect domestic steel manufacturers from cheap imports from China, according to reports.
Tata Steel edged higher in volatile trade. The stock rose 4.69% at Rs 236.75. The stock hit a high of Rs 239.10 and a low of Rs 215 in intraday trade. The company reported consolidated net loss of Rs 2127 crore in Q3 December 2015 compared with net profit of Rs 157 crore in Q3 December 2014. Turnover fell 16.63% to Rs 28039 crore in Q3 December 2015 over Q3 December 2014. Earnings before interest, taxation, depreciation and amortization (EBITDA) excluding one-offs and profit on sale of investments declined 69.96% to Rs 838 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 4 February 2016.
T V Narendran, Managing Director of Tata Steel India and South East Asia said that steel markets in India have been affected by depressed international steel prices and predatory imports. The quarter saw a sharp decline in steel prices which has impacted the margins, Narendran said. Koushik Chatterjee, Group Executive Director (Finance and Corporate), Tata Steel said that the current business conditions for the global steel industry are extremely challenging with confluence of elevated imports across regions, currency headwinds and depressed market sentiments affecting Tata Steel Group's profitability. The Tata Steel Group has embarked on significant cost rationalisation program including fixed cost reduction, right sizing of manpower, productivity management and enriching the product mix across all geographies, Chatterjee said. These programs are expected to enhance the sustainable profitability profile of the company, he added. The company has also undertaken significant portfolio restructuring and will continue to pursue the same in the future, Chatterjee said.
Among other metal stocks, Vedanta (up 9.08%), Hindalco Industries (up 4.15%), NMDC (up 4.75%), Hindustan Zinc (up 4.74%), National Aluminium Company (up 3.16%) and Hindustan Copper (up 2.28%) gained.
GAIL (India) was off 3.62% at Rs 341.75. The stock hit a high of Rs 354.60 and a low of Rs 338.50 in intraday trade. Oil India rose 0.37% at Rs 343.15. The stock hit a high of Rs 347.95 and a low of Rs 338.05 in intraday trade. GAIL (India) during market hours today, 5 February 2016, announced that Prime Minister Narendra Modi today, 5 February 2016, dedicated to the nation the Brahmaputra Cracker and Polymer (BCPL) petrochemical complex in Assam. BCPL is a central public sector enterprise under the Government of India (GoI), with GAIL (India) as the main promoter having 70% equity participation. The rest 30% is equally shared by Oil India, Numaligarh Refinery (NRL) and the state government of Assam. Set up with an investment of about Rs 10000 crore, the BCPL plant will have the capacity to manufacture 2.80 lakh tonnes per annum of polymer products which will result in the growth of new downstream plastic processing industries in the North Eastern region, besides reducing dependency on polymer supply from other parts of the country, GAIL (India) said in a statement.
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