A bout of volatility was witnessed as key benchmark indices trimmed gains after opening higher. The barometer index, the S&P BSE Sensex, was currently up 82.19 points or 0.32% at 25,563.03. The market breadth indicating the overall health of the market was strong.
HCL Technologies rose after the company said that CRISIL has upgraded the credit rating of the company in respect of the secured, non-convertible debentures of the company to CRISIL AAA/Stable (Upgraded from CRISIL AA+/Stable). Mahindra & Mahindra (M&M) gained after announcing its July sales figures. Tata Motors also gained after announcing its July sales. Grasim Industries dropped on reporting weak Q1 results.
At 9:40 IST, the S&P BSE Sensex was up 82.19 points or 0.32% to 25,563.03. The index gained 164.59 points at the day's high of 25,645.43 in early trade. The index rose 79.98 points at the day's low of 25,560.82 in early trade.
The CNX Nifty was up 26.35 points or 0.35% to 7,628.95. The index hit a high of 7,654.15 in intraday trade. The index hit a low of 7,628.65 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,112 shares rose and 357 shares fell. A total of 62 shares were unchanged.
The BSE Mid-Cap index was up 64.74 points or 0.71% at 9,179.07. The BSE Small-Cap index was up 104.59 points or 1.06% at 9.995.56. Both these indices outperformed the Sensex.
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Grasim Industries dropped 0.14% to Rs 3,214 on reporting weak Q1 results. The stock hit high of Rs 3,225 and low of Rs 3,173.25 so far during the day. The company's consolidated net profit fell 20.14% to Rs 487.13 crore on 15.93% rise in total income to Rs 8314.07 crore in Q1 June 2014 over Q1 June 2013. The result was announced on Saturday, 2 August 2014.
DLF gained 0.91%. The company said before market hours that Zola Real Estate has, with effect from 1 August 2014, ceased to be a step down subsidiary/associate of DLF, pursuant to issue of fresh equity to My Home Constructions. Zola Real Estate, through its 100% subsidiary, owns a land parcel in Raidurg, Hyderabad.
Bharat Heavy Electricals (Bhel) rose 0.76%. The company said before market hours that on 2 August 2014, it has received certified copy of order of Appellate Authority for Industrial & Financial Reconstruction (AAIFR) on appeals of Bharat Heavy Plate & Vessels (BHPV) Officers' Association, BHPV U/V Series (Ex-Trainee) and BHPV Retired & VR Employees Welfare Society setting aside the BIFR order sanctioning the Modified Scheme envisaging merger of BHPV and remanding the matter back to Board for Industrial & Financial Reconstruction (BIFR) with certain directions. Bhel is in the process of examining the AAIFR order for most appropriate action in the matter. BIFR had sanctioned the Modified Scheme envisaging merger of BHPV with Bhel vide their order dated 29 August 2013 which was filed with respective Registrar of Companies (RoC) at Hyderabad and at Delhi on 30 August 2013 on which date the merger became effective.
Tata Motors gained 1.15% after announcing its July sales. The company after market hours on Friday, 1 August 2014 said that its total sales declined 23% to 39,623 units in July 2014 over July 2013. Domestic sales of Tata commercial and passenger vehicles dropped 25% to 35,256 units in July 2014 over July 2013.
Tata Motors' sales of commercial vehicles declined 28% to 26,089 units in July 2014 over July 2013. LCV sales fell 39% to 16,364 units in July 2014 over July 2013. M&HCV sales remained flat at 9,725 units in July 2014.
Passenger vehicle sales fell 15% to 9,167 units in July 2014 over July 2013.
Exports rose 2% to 4,367 units in July 2014 over July 2013.
Mahindra & Mahindra (M&M) gained 0.16% after announcing its July sales figures. The company after market hours on Friday, 1 August 2014, reported 6% decline in its total tractor sales to 17,407 units in July 2014 over July 2013. Domestic sales declined 8% to 16,379 units in July 2014 over July 2013. Exports surged 47% to 1,028 units in July 2014 over July 2013. Exports include CKD units.
Commenting on the monthly performance, Rajesh Jejurikar, Chief Executive, Farm Equipment and Two Wheeler Division, M&M said, We have registered a sale of 16,379 units during July 2014. A delay in the arrival of monsoon has led to late sowing and has impacted farmer sentiment leading to lower sales of tractors in July. We do hope that the rains picking up in the month of July across the country will give a boost to the farmers' morale and the agriculture industry alike.
Separately, M&M on Friday, 1 August 2014, reported 4% drop in its total auto sales at 35,567 units in July 2014 over July 2013. Sales of Passenger Vehicle segment (which includes UVs and Verito) declined 5% to 14,708 units in July 2014 over July 2013. Domestic sales dropped 4% to 33,047 units in July 2014 over July 2013. Sales of four-wheeler commercial segment declined 9% to 12,472 units in July 2014 over July 2013. Three-wheeler sales rose 15% to 5,142 units in July 2014 over July 2013. Exports dropped 3% to 2,520 units in July 2014 over July 2013.
Commenting on the monthly performance, Pravin Shah, Chief Executive, Automotive Division & International Operations (AFS), M&M said, The overall sales during the last month was subdued and the market remained challenging with the monsoon now setting in across the country as well as the ensuing festival season. We expect positive sentiments in the coming months resulting in enhanced demand for our products. We are happy that our first global SUV, the XUV500, has crossed the milestone of 1 lakh sales, this month, which is less than three years since its launch and we thank our customers for it.
ONGC gained 0.94% after the company after market hours on Friday, 1 August 2014 in a clarification issued with regard to news item titled ONGC mulls OMPL-MRPL merger - Deloitte appointed to value JV", said that there is no such proposal pending consideration of the Board and therefore the company is unable to comment further on the issue.
Tata Power Company (Tata Power) rose 1.11%. The company said after market hours on Friday, 1 August 2014 said that its wholly owned subsidiary Bhira Investments had issued $450 million fixed to floating rate subordinated notes, in April 2011. The Notes were secured by a corporate guarantee issued by Tata Power and were eligible for 50% equity credit by rating agencies.
Consequent to the changes to the treatment of the above notes in the rating methodology, Bhira has exercised its right to redeem the notes and has issued a notice for early redemption to the Trustee on 31 July 2014. The record date for the redemption is proposed to be at 1 September 2014, Tata Power said.
The redemption will be financed by way of loans raised by Bhira, which is also being concurrently taken care of, the statement said.
Mr. Anil Sardana, CEO and MD, Tata Power said, The redemption of the hybrid notes and replacing it with a cheaper funding option will lead to substantial interest savings for the Tata Power Group and this is in line with the company's strategy to optimize its funding sources and lowering interest costs.
HCL Technologies rose 1.82% after the company after market hours on Friday, 1 August 2014 said that CRISIL has upgraded the credit rating of the company in respect of the secured, non-convertible debentures of the company to CRISIL AAA/Stable (Upgraded from CRISIL AA+/Stable).
The Reserve Bank of India (RBI) announces monetary policy review tomorrow, 5 August 2014.
Asian stocks were mostly higher in choppy trade today, 4 August 2014, as investors weighed a smaller-than-forecast increase in US payrolls and the bailout of a Portuguese bank. Key benchmark indices in Hong Kong, China, Indonesia, and Taiwan were up 0.01% to 1.14%. Key benchmark indices in, South Korea, Japan and Singapore fell by 0.05% to 0.52%.
The People's Bank of China warned that the country's credit and money supply have increased rapidly and indicated that it will refrain from broader monetary easing to support growth.
A Chinese services-industry index declined to a six-month low in July, dragged down by a weaker property market. The non-manufacturing Purchasing Managers' Index fell to 54.2 from 55 in June, the Beijing-based National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing. A reading above 50 indicates expansion.
Portugal's central bank took control of Banco Espirito Santo SA in a 4.9 billion-euro ($6.6 billion) bailout. Banco Espirito Santo has been forced to take government money after regulators uncovered potential losses on loans to other companies tied to Portugal's Espirito Santo family and ordered the lender to raise capital. Bank of Portugal Governor Carlos Costa had sought to find private investors to inject the cash, and said government funds would only be used as a last resort.
US stocks declined on Friday, 1 August 2014, as concern over Argentina and Portugal overshadowed data that signaled the Federal Reserve may have leeway to keep rates low.
US added more than 200,000 jobs for a sixth straight month in July, the longest such period since 1997. The 209,000 advance fell short of forecasts. The jobless rate climbed to 6.2% from 6.1% in June as more people entered the labor force. Wages and hours were unchanged from June.
Manufacturing expanded in July at the fastest pace in more than three years, showing US factories will help power the economy after a second-quarter rebound. The Institute for Supply Management's index increased to 57.1, the highest since April 2011, from 55.3 a month earlier, the Tempe, Arizona-based group's report showed. Readings above 50 indicate growth.
Argentina's failure to pay interest on its bonds is a credit event that will trigger settlement of $1 billion of default insurance, according to the International Swaps & Derivatives Association. Argentina is the first nation to trigger default swaps since Greece restructured its debt in 2012.
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