Firmness prevailed on the bourses in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, was up 139.39 points or 0.38% at 36,997.62. The Nifty 50 index was up 37.50 points or 0.34% at 11,169.50. Cement stocks gained. Better-than-expected June 2018 quarterly results from index pivotals boosted sentiment on the domestic bourses.
The Sensex was currently trading a tad below the psychological 37,000 mark after scaling a record high above that level in mid-morning trade. The Nifty also scaled fresh record high. Domestic stocks nudged higher in early trade buoyed by better-than-expected June 2018 quarterly results from index pivotals. Key benchmark indices trimmed gains soon after hitting fresh record high in mid-morning trade.
Trading could be volatile as traders roll over positions in the F&O segment from the near month July 2018 series to August 2018 series. The July 2018 F&O contracts expire today, 26 July 2018.
The S&P BSE Mid-Cap index was up 0.8%. The S&P BSE Small-Cap index was up 0.4%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On the BSE, 1312 shares rose and 962 shares fell. A total of 126 shares were unchanged.
Cement stocks gained. ACC (up 4.02%), India Cements (up 2.21%), JK Cement (up 4.47%) and UltraTech Cement (up 2.05%) gained. Shree Cement (down 0.81%) fell.
Grasim Industries was up 1.81%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
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Ambuja Cements jumped 6.35% after net profit rose 27.3% to Rs 499.27 crore on 5.7% rise in net sales to Rs 3016.92 crore in Q2 June 2018 over Q2 June 2017. The result was announced after market hours yesterday, 25 July 2018.
Net profit includes dividend of Rs 141 crore from ACC. Operating EBITDA (earnings before interest, taxes, depreciation and amortization) fell 4.45% to Rs 622 crore in Q2 June 2018 over Q2 June 2017. Better top line, improvements in productivity and efficiency parameters helped largely mitigate the rising cost pressures particularly from power and fuel in Q2 quarter.
On a consolidated basis, net profit of Ambuja Cements fell 4.70% to Rs 684.46 crore on 7.81% rise in net sales to Rs 6835.12 crore in Q2 June 2018 over Q2 June 2017.
In its outlook, Ambuja Cement said improved rural demand on account of government interventions such as the increase in the Minimum Support Price for Kharif crops, job creation and spending on rural and labour intensive infrastructure and expectations of a normal monsoon, combined with government's focus on infrastructure development (roads, ports, irrigation and metro projects), affordable housing and housing for all programme is expected to create buoyancy in the construction sector which will have a positive impact on cement demand. However, the company expects that increase in fuel prices and input material costs will continue in the near term.
Canara Bank rose 5.23% after net profit rose 11.88% to Rs 281.49 crore on 7.22% rise in total income to Rs 13192.46 crore in Q1 June 2018 over Q1 June 2017. The result was announced after market hours yesterday, 25 July 2018.
The bank's gross non-performing assets (NPAs) stood at Rs 44659.56 crore as on 30 June 2018 as against Rs 47468.47 crore as on 31 March 2018 and Rs 37657.76 crore as on 30 June 2017.
The ratio of gross NPAs to gross advances stood at 11.05% as on 30 June 2018 as against 11.84% as on 31 March 2018 and 10.56% as on 30 June 2017. The ratio of net NPAs to net advances stood at 6.91% as on 30 June 2018 as against 7.48% as on 31 March 2018 and 7.09% as on 30 June 2017.
The bank's provisions and contingencies rose 17.18% to Rs 2582.30 crore in Q1 June 2018 over Q1 June 2017. Provision coverage ratio of the bank was at 60.69% as on 30 June 2018.
Overseas, most Asian stocks fell as investor relief at US President Donald Trump and the European Commission chief's plan to ease trade tensions was offset by disappointing US earnings. US equities advanced Wednesday, after US President Donald Trump reached an agreement with European Commission President Jean-Claude Juncker aimed at averting a transatlantic trade war.
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