Post result rally for index heavyweight Reliance Industries (RIL) and gains for another index heavyweight Infosys and pharma stocks helped key benchmark indices register modest gains. The barometer index, the S&P BSE Sensex, rose 141.54 points or 0.52% to 27,356.14, as per the provisional closing data. The 50-unit CNX Nifty rose 36.90 points or 0.45% at 8,275.05, as per the provisional closing data. The trigger for the latest upmove for Indian stocks was an announcement from the finance ministry that it is seeking the views of foreign portfolio investors (FPIs) on measures to simplify the procedures and documentation for registration of FPIs in India.
The Sensex hit its highest level in more than eight weeks when it jumped 173.31 points or 0.63% at the day's high of 27,387.91 in late trade. The Nifty also hit its highest level in more than eight weeks when it rose 44.90 points or 0.54% at the day's high of 8,283.05 in late trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,569 shares rose and 1,154 shares fell. A total of 161 shares were unchanged. The BSE Mid-Cap index provisionally rose 0.69%. The BSE Small-Cap index provisionally rose 0.77%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 2509 crore, lower than turnover of Rs 2729.05 crore registered during the previous trading session.
The Department of Economic Affairs, Ministry of Finance announced that it has organized a meeting with the representatives of the foreign portfolio investors (FPIs) tomorrow, 20 October 2015, to seek their views on measures to simplify the procedures and documentation for registration of FPIs in India and deepening of corporate bond market. Separately, the Department of Economic Affairs will hold a meeting with domestic financial market participants on 21 October 2015 to seek their views on integration of various segments of the market, increasing retail participation and deepening of corporate bond market.
In overseas stock markets, European stocks edged higher as fears of a hard landing of the Chinese economy receded after a batch of latest economic data. Asian stocks ended on a mixed note after the latest data showed China's GDP growth slowed to 6.9% in Q3 September 2015, slipping below 7% for the first time since 2009. US stocks edged higher during the previous trading session on Friday, 16 October 2015, as investors appeared to shrug off lackluster corporate earnings and mixed economic data.
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RIL surged after stronger-than-expected Q2 September 2015 results. The stock rose 5.42% at Rs 961.60. The stock hit a high of Rs 965.20 and a low of Rs 941.60 in intraday trade. RIL's consolidated net profit rose 12.52% to Rs 6720 crore on 33.8% decline in turnover to Rs 75117 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours on Friday, 16 October 2015. A strong showing of the refinery business and increase in profit margins of the petrochemicals business led to a stronger-than-expected growth in RIL's bottom line in Q2 September 2015. RIL's gross refining margins (GRM) hit a seven year high of $10.6 per barrel in Q2 September 2015. The GRM was $8.3 per barrel in Q2 September 2014. The profitability of the petrochemicals business improved due to a combination of strong volume growth, product mix improvement and lower energy costs.
With regard to the progress of the roll out of the broadband business, RIL said that the network roll-out across the country is substantially complete. RIL's subsidiary Reliance Jio Infocomm (RJIL) is implementing the ambitious broadband project. FY 2017 (year ending 31 March 2017) will be the first full year of commercial operations of RJIL.
Meanwhile, RIL also announced in its Q2 September 2015 investor presentation that RJIL and Reliance Communication (RCom) have decided to share spectrum in 800 MHz band in 7 telecom circles.
Aviation stocks surged after InterGlobe Aviation, the operator of low cost passenger airline IndiGo, announced that its initial public offer (IPO) will open for bidding on 27 October 2015. SpiceJet was locked at 10% upper circuit at Rs 47.55 on BSE. Jet Airways (India) surged 9.35%. The IPO of InterGlobe Aviation comprises of fresh issue of equity shares aggregating Rs 1272.20 crore and offer for sale of up to 2.61 crore shares by existing shareholders of the company. The price band for the IPO has been set at Rs 700 to Rs 765 per share. The IPO is scheduled to close on 29 October 2015. IndiGo operates as a low-cost carrier or LCC business model and focuses primarily on the domestic Indian air travel market.
Index heavyweight and engineering & construction major L&T fell 1.44% at Rs 1,581.50. L&T has successfully flagged off its first consignment of Cryostat, a part of the International Thermonuclear Experimental Reactor (ITER) fusion reactor facility being built at Cadarache in South of France.
UltraTech Cement fell in volatile after the company announced second quarter results. The stock shed 1.69% to Rs 2,905. The stock hit high of Rs 2,995 and low of Rs 2,886.05 in intraday trade. The company's consolidated net profit rose 3.14% to Rs 427 crore on 4.02% rise in net sales to Rs 5951 crore in Q2 September 2015 over Q2 September 2014. The result was announced during market hours today, 19 October 2015. UltraTech Cement's profit before interest, depreciation and tax rose 11.75% to Rs 1103 crore in Q2 September 2015 over Q2 September 2014.
The company said its on-going capital expenditure program is on track. With regard to future business outlook, UltraTech Cement said that with the government's focus on infrastructure development, housing sector, smart cities, roads etc., the company is well positioned across the country to meet the expected rise in the cement demand and participate in the next phase of growth in the country.
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