Key benchmark indices held firm in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, was up 131.15 points or 0.36% at 36,849.75. The Nifty 50 index was up 47.25 points or 0.43% at 11,132.00. Cement stocks logged strong gains led by cement major ACC. Telecom stocks gained.
Stocks drifted higher in early trade, with the Sensex scaling record high. Indices held onto gains in morning trade.
The S&P BSE Mid-Cap index was up 1.37%. The S&P BSE Small-Cap index was up 1.77%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1704 shares rose and 505 shares fell. A total of 110 shares were unchanged.
Cement stocks logged strong gains led by cement major ACC. Ambuja Cements (up 7.93%), UltraTech Cement (up 4.87%) and Shree Cement (up 4.59%) gained.
Grasim Industries was up 6.33%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
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ACC rose 12.72% after consolidated net profit rose 0.77% to Rs 328.74 crore on 13.75% rise in net sales to Rs 3767.90 crore in Q2 June 2018 over Q2 June 2017. The result was announced after market hours yesterday, 23 July 2018.
Neeraj Akhoury, managing director & CEO, said that the company has achieved robust scale in Q2 2018, growing both cement and the ready mix concrete business by 7% and 22% respectively, as well as delivering a consolidated EBITDA growth of 5% YoY. On the other hand, cost headwinds continue, driven by the rise in input material and logistics costs. The positive impacts of the company's step change in cost management are favorably impacting its financial results. ACC remains optimistic in its capacity to develop new revenue lines as well as strengthen its performance in both the cement and ready mix business.
In its outlook, ACC said that the economic upswing in 2018 supported by buoyant consumption, a normal monsoon and uptick in rural demand is expected to benefit the construction sector. The company expects cement demand to be positive, driven by the 'Housing for All ' programme, sustained infrastructure spends and rural housing. ACC anticipates that cost pressures will remain, largely due to a rise in fuel costs as well other input material costs. ACC will continue to focus on improving efficiencies.
Telecom stocks gained. Bharti Airtel (up 1.05%), MTNL (up 3.38%), Tata Teleservices (Maharashtra) (up 3.8%) and Reliance Communications (up 2.49%) gained.
Shares of Bharti Infratel rose 0.14%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Idea Cellular surged 7.69%. As per reports, Vodafone and Idea Cellular have deposited Rs 7200 crore in cash and bank guarantee with telecom department for one-time spectrum charge and spectrum liberalisation charges. With the financial dues out of the way, the merger of Vodafone and Idea Cellular is likely to be approved in the next few days, the report added.
Punjab National Bank (PNB) rose 1.08%. PNB said it received a capital infusion of Rs 2816 crore towards contribution of the central government in the preferential allotment of equity shares (special securities/bonds) of the bank during the financial year 2018-2019, as the government's investment. The preferential allotment of equity shares to the Government of India (GoI) will be made after completing the process of regulatory approvals. The announcement was made after market hours yesterday, 23 July 2018.
Overseas, Asian stocks rose led by Chinese shares as the nation's assets came into focus after the government unveiled a package of measures to boost domestic demand amid simmering trade tensions that threaten to worsen an economic slowdown. In US, the S&P 500 and the Nasdaq close slightly higher Monday thanks to strong bank and technology shares but the Dow extended its losing streak to a third session.
Meanwhile, finance ministers and central bankers from the Group of 20 reportedly made little progress on trade tensions at a weekend meeting in Buenos Aires, as both US and European Union officials held their ground. Investors have been worried that spats between the US and other major trading partners could explode into a full-scale trade war, damaging economic growth and investments.
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