Key benchmark indices drifted higher in early trade amid initial volatility. At 9:25 IST, the barometer index, the S&P BSE Sensex was up 68.38 points or 0.26% at 25,884.74. The gains for the Nifty 50 index were lower than the Sensex's gains in percentage terms. The Nifty was currently up 7.10 points or 0.09% at 7,921.80.
The market breadth indicating the overall health of the market was strong. On BSE, 948 shares gained and 390 shares declined. A total of 65 shares were unchanged. The BSE Mid-Cap index was currently up 0.49%. The BSE Small-Cap index was currently up 0.65%. Both these indices outperformed the Sensex.
In overseas markets, Asian stocks were trading mixed. US stocks closed on a mixed note yesterday, 19 April 2016 amid a rise in oil prices.
Wipro rose 0.97% ahead of its Q4 March 2016 results today, 20 April 2016.
TCS fell 1.32%. The company's consolidated net profit rose 5.4% to Rs 6413 crore on 4% rise in revenue to Rs 28449 crore in Q4 March 2016 over Q3 December 2015. TCS has recommended a final dividend of Rs 27 per share for the year ended 31 March 2016 (FY 2016). The result was announced after market hours on Monday, 18 April 2016. Operating profit rose 2.1% to Rs 7380 crore in Q4 March 2016 over Q3 December 2015. Earning per share (EPS) stood at Rs 32.54 in Q4 March 2016 compared with Rs 30.88 in Q3 December 2015. Q4 March 2016 saw a broad based growth with the core portfolio performing strongly led by BFSI, retail and manufacturing.
TCS' top management in a post Q4 result conference call stated that with most of the headwinds behind, the company is well placed to deliver a strong performance in FY 2017. The management believes that TCS' scale and digital capability positions the company strongly to become the preferred digital partner for more and more clients and win a disproportionate share of their incremental digital spending. BFSI, North America and Continental Europe have shown very good resilience and have grown very well in Q4 March 2016 with a good exit, building up strong momentum going into FY 2017. The business in Latin America has turned the corner and has done very well during the last couple of quarters.
HDFC rose 1.75% after the company before market hours today, 20 April 2016, announced that it intends to sell up to 10% of the paid-up share capital of its subsidiary HDFC Standard Life Insurance Company (HDFC Life) through offer for sale (OFS) in the initial public offer (IPO) of HDFC Life subject to market conditions as well as receipt of various applicable approvals including that of Securities and Exchange Board of India (Sebi) and Insurance Regulatory and Development Authority of India (IRDAI) to the extent applicable or required. As on 31 March 2016, HDFC held 61.63% of the issued and paid-up share capital of HDFC Life. Post the sale of shares, HDFC Life would continue to be a subsidiary of HDFC.
HDFC Life reported profit after tax of Rs 818 crore on total income of Rs 17954 crore in the year ended 31 March 2016 (FY 2016). It reported gross premium income of Rs 16313 crore in FY 2016. Net worth as on 31 March 2016 was Rs 3150 crore.
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Dr Reddy's Laboratories rose 1% after the company announced that its subsidiary Promius Pharma LLC has commercially launched ZEMBRACE SymTouch in the United States. ZEMBRACE SymTouch is a prescription medicine used to treat acute migraine headaches with or without aura in adults who have been diagnosed with migraine. The announcement was made on Tuesday, 19 April 2016, when the stock market was closed for a holiday.
Tata Steel gained 2.46%. The company announced changes in leadership at Tata Steel UK. Bimlendra Jha, an Executive Committee member of Tata Steel Europe has been appointed as the Chief Executive Officer of Tata Steel UK. Jha is currently Executive Chairman of Tata Steel Europe's Long Products Europe business and has successfully led the divestment process that resulted in the signing of a sale and purchase agreement with Greybull Capital on 11 April 2016. The announcement was made after market hours on Monday, 18 April 2016. Meanwhile, Tata Steel Europe has appointed Standard Chartered Bank as an additional adviser for the divestment of its entire holding in its British subsidiary Tata Steel UK. On 11 April 2016, Tata Steel Europe announced that the company has commenced the formal process for the divestment of its entire holding in its British subsidiary Tata Steel UK. Tata Steel Europe has decided to sell its entire holding in Tata Steel UK due to the deteriorating financial performance of the UK subsidiary.
Reserve Bank of India (RBI) Governor Raghuram Rajan reportedly said in a speech in New York on Monday, 18 April 2016, that the central bank will continue to use currency intervention to reduce volatility in the country's exchange rates. Rajan also said that he was closely watching inflation developments as well as monsoon rain forecasts in terms of impact on monetary policy. Recently, the weather office forecast good rains during the June-September 2016 southwest monsoon season. The RBI cut its benchmark policy rate viz. the repo rate by 25 basis points to 6.5% from 6.75% after a scheduled policy review on 5 April 2016. The RBI next undertakes monetary policy review on 7 June 2016.
India's merchandise exports continued to see decline on year on year basis. Merchandise exports declined 5.47% to $22.71 billion in March 2016 over March 2015. Non-petroleum exports declined 3.49% to $20.63 billion in March 2016 over March 2015. The Ministry of Commerce & Industry said that the trend of falling exports is in tandem with other major world economies. Imports declined 21.56% to $27.78 billion in March 2016 over March 2015. Oil imports dropped 35.3% to $4.79 billion in March 2016 over March 2015. Non-oil imports fell 17.92% to $22.99 billion in March 2016 over March 2015. The trade deficit declined sharply to $5.07 billion in March 2016 from $11.39 billion in March 2015.
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