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M&M gains in volatile trade after announcing Q2 results

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Capital Market
Last Updated : Oct 31 2014 | 3:33 PM IST

A bout of volatility was witnessed as key benchmark indices regained strength after trimming gains in mid-afternoon trade. Gains in world stocks, fall in crude oil prices and provisional data showing substantial buying of Indian stocks by foreign portfolio investors yesterday, 30 October 2014, aided the latest rally on the domestic bourses as the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, struck record high. The Sensex was currently was up 381.15 points or 1.39% at 27,727.48. The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap index was up 1.12%

Foreign portfolio investors (FPIs) bought shares worth a net Rs 1257.49 crore yesterday, 30 October 2014, as per provisional data. Brent crude oil prices declined. Fall in crude oil prices augur well for India as the country imports 80% of its oil requirement.

NTPC was currently almost unchanged for the day after seeing intraday volatility after announcing Q2 results. Mahindra & Mahindra (M&M) edged higher in volatile trade after announcing Q2 results.

In overseas markets, European stocks rose amid optimism the Bank of Japan's stimulus will fill some of the gap left by the end of Federal Reserve bond buying. Japanese stocks led gains in Asian stocks after the Bank of Japan (BOJ) after a monetary policy review today, 31 October 2014, unexpectedly boosted its unprecedented monetary easing. US stocks edged higher yesterday, 30 October 2014, as a report showed higher-than-estimated growth in gross domestic product, fueling speculation the economy is strong enough to withstand higher interest rates.

In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment.

Brent crude oil prices edged lower as a firmer dollar and a well supplied oil market combined to put the benchmark on course to end October with its steepest monthly decline since 2012.

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At 14:17 IST, the S&P BSE Sensex was up 381.15 points or 1.39% at 27,727.48. The index surged 415.80 points at the day's high of 27,762.13 in afternoon trade, a lifetime high for the index. The index rose 91.95 points at the day's low of 27,438.28 in early trade.

The CNX Nifty was up 112.25 points or 1.37% at 8,281.45. The index hit a high of 8,291.65 in intraday trade, a lifetime high for the index. The index hit a low of 8,198.05 in intraday trade.

The BSE Mid-Cap index was up 108.66 points or 1.12% at 9,823.09. The BSE Small-Cap index was up 103.39 points or 0.95% at 10,930.85. Both these indices underperformed the Sensex.

The market breadth indicating the overall health of the market was strong. On BSE, 1,747 shares rose while 1,085 shares declined. A total of 120 shares were unchanged.

NTPC was flat at Rs 147.15 after announcing Q2 results. The stock hit high of Rs 149.85 and low of Rs 146.40 so far during the day. The company's net profit fell 16.89% to Rs 2071.63 crore on 1.11% rise in total income to Rs 17267.32 crore in Q2 September 2014 over Q2 September 2013. The result was announced during market hours.

M&M rose 1.11% to Rs 1,301.85 after announcing Q2 results. The stock hit high of Rs 1,322.90 and low of Rs 1,285 so far during the day. On comparable basis, the combined net profit of Mahindra & Mahindra (M&M) and Mahindra Vehicle Manufacturers (MVML) rose 1.7% to Rs 974.10 crore on 4.7% growth in gross revenue plus other income to Rs 10400.90 crore in Q2 September 2014 over Q2 September 2013. The Q2 result was announced during market hours today, 31 October 2014.

MVML, located at Chakan near Pune, was set up as a 100% subsidiary of Mahindra & Mahindra (M&M) with a view to sourcing contemporary products for expanding the market offerings of M&M.

In Q4 March 2014 under a scheme of arrangement the truck business of M&M's subsidiary Mahindra Trucks and Buses (MTBL) demerged from the subsidiary and merged with M&M.

M&M's consolidated net profit fell 4.98% to Rs 794 crore on 1.11% fall in gross revenue (including other income) at Rs 18467.70 crore in Q2 September 2014 over Q2 September 2013.

Procter & Gamble Hygiene and Health Care rose 0.98% after net profit rose 12.2% to Rs 61.50 crore on 16.1% growth in total income to Rs 597.53 crore in Q1 September 2014 over Q1 September 2013. Procter & Gamble Hygiene and Health Care said that both the Feminine Care and Health Care businesses continued to deliver robust double-digit growth in a competitive market environment behind superior products, strong innovation and product portfolio strength. The launch of Old Spice is delivering in-line with expectations, the company said.

Whirlpool of India surged 5.88% after net profit spurted 146.19% to Rs 40.72 crore on 21.13% growth in total income from operations to Rs 744.57 crore in Q2 September 2014 over Q2 September 2013.

eClerx Services lost 4.43% after consolidated net profit rose 16.64% to Rs 62.29 crore on 6.64% growth in net sales to Rs 231.83 crore in Q2 September 2014 over Q1 June 2014.

Meanwhile, provisional data released by the stock exchanges after trading hours yesterday, 30 October 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1257.49 crore on that day.

In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment. The partially convertible rupee was hovering at 61.41, compared with its close of 61.455 during the previous trading session.

Brent crude oil prices edged lower as a firmer dollar and a well supplied oil market combined to put the benchmark on course to end October with its steepest monthly decline since 2012. Brent crude for December delivery was off 55 cents at $85.69 a barrel. The contract had fallen 88 cents to settle at $86.24 a barrel during the previous trading session.

The government's decision this month to decontrol diesel prices and a sharp decline in global crude oil prices recently will help India in containing its fiscal deficit. The fall in global crude oil prices will also help India in containing its current account deficit and fuel price inflation. India imports 80% of its crude oil requirement. A slump in Brent crude since the end of June contributed to consumer-price index slowing to 6.46% last month, the least since 2012.

Finance Minister Arun Jaitley yesterday, 30 October 2014, asked the senior officers of the Central Board of Direct Taxes (CBDT) not to lose sight of domestic black money keeping in view its much higher magnitude. He asked the senior officers of the Income Tax Department to make their best efforts to chase those sectors where the domestic black money is most prevalent. He said that the recovery of black money and taxes due thereon will also help the Department in achieving its tax collection targets. The Finance Minister was speaking at a Review Meeting of Principal Chief Commissioners, Principal Directors General, Chief Commissioners and Directors General of Income Tax in order to assess and analyse the achievements of the Budget Targets for Revenue Collections for Financial Year 2014-15. He asked the tax officials to widen the tax base in order to bring more and more people within tax domain.

European stocks rose today, 31 October 2014, amid optimism the Bank of Japan's stimulus will fill some of the gap left by the end of Federal Reserve bond buying. Key benchmark indices in France, Germany and UK were up 0.35% to 1.78%.

Japanese stocks led gains in Asian stocks today, 31 October 2014, after the Bank of Japan (BOJ) after a monetary policy review today, 31 October 2014, unexpectedly boosted its unprecedented monetary easing. Key benchmark indices in Indonesia, South Korea, Hong Kong, Taiwan, Singapore, and China were up 0.28% to 1.25%.

Japan's Nikkei Average jumped 4.83%. In an unexpected move, the Bank of Japan's policy board today, 31 October 2014, voted by a 5-to-4 margin to expand the pace of its quantitative easing. The central bank expanded the size of its Japanese Government Bond (JGBs) purchases to the equivalent of about 80 trillion yen ($727 billion) a year, an increase of 30 trillion yen from the previous pace. It said it would also buy longer-dated JGBs, seeking an average remaining maturity of 7-10 years. The central bank also said it would triple its purchases of exchange-traded funds and real-estate investment trusts. It also added that the so-called "quantitative and qualitative easing" program would continue "as long as it is necessary". Earlier in the day, data showed that Japan's inflation rate in September had hit its lowest level in almost a year.

Trading in US index futures indicated that the Dow could jump 179 points at the opening bell today, 31 October 2014. US stocks edged higher yesterday, 30 October 2014, as a report showed higher-than-estimated growth in gross domestic product, fueling speculation the economy is strong enough to withstand higher interest rates.

The American economy expanded at a more-than-estimated annualized rate of 3.5% last quarter, capping its strongest six months in a decade, while other data showed fewer Americans filed applications for unemployment benefits over the past month than at any time in more than 14 years.

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First Published: Oct 31 2014 | 2:12 PM IST

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