Key benchmark indices registered small gains as index heavyweights Reliance Industries, HDFC and ITC moved higher. The barometer index, the S&P BSE Sensex, rose 40.66 points or 0.14% to settle at 28,412.89. The Nifty 50 index rose 15.95 points or 0.18% to settle at 8,742.55. The Sensex and the Nifty alternately moved between positive and negative zone in intraday trade.
Index heavyweight and cigarette major ITC edged higher after the company's chief operating officer (COO) Sanjiv Puri was quoted as saying that the firm's consumer goods business presents the maximum potential for value creation. Yes Bank edged lower on reports that Securities & Exchange Board of India (Sebi) is looking into discrepancies in the bank's planned qualified institutional placement (QIP) of shares.
The Sensex rose 40.66 points or 0.14% to settle at 28,412.89, its highest closing level since 12 September 2016. The Sensex rose 71.71 points, or 0.25% at the day's high of 28,443.94. The index fell 61.12 points, or 0.22% at the day's low of 28,311.11.
The Nifty 50 index rose 15.95 points or 0.18% to settle at 8,742.55, its highest closing level since 12 September 2016. The Nifty rose 22.60 points, or 0.26% at the day's high of 8,749.20. The index fell 22.25 points, or 0.25% at the day's low of 8,704.35.
The market breadth indicating the overall health of the market was positive. On BSE, 1,469 shares rose and 1,260 shares fell. A total of 197 shares were unchanged. The BSE Mid-Cap index fell 0.25%, underperforming the Sensex. The BSE Small-Cap index rose 0.27%, outperforming the Sensex.
The total turnover on BSE amounted to Rs 3789 crore, higher than turnover of Rs 3616.03 crore registered during the previous trading session.
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Among the sectoral indices on BSE, the S&P BSE FMCG index (up 0.66%), the S&P BSE Healthcare index (up 0.52%), the S&P BSE Energy index (up 0.45%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.31%), the S&P BSE Telecom index (up 0.29%) outperformed the Sensex. The S&P BSE Teck index (up 0.08%), the S&P BSE Capital Goods index (up 0.01%), the S&P BSE Finance index (down 0.13%), the S&P BSE Industrials index (down 0.19%), the S&P BSE IT index (down 0.24%), the S&P BSE Metal index (down 0.25%), the S&P BSE Oil & Gas index (down 0.27%), the S&P BSE Basic Materials index (down 0.31%), the S&P BSE Auto index (down 0.38%), the S&P BSE Bankex (down 0.58%), the S&P BSE Power index (down 0.94%), the S&P BSE Consumer Durables index (down 0.97%) the S&P BSE Utilities index (down 1.2%) underperformed the Sensex. The S&P BSE Realty index rose 0.14%, matching the Sensex's gains in percentage terms.
Index heavyweight and cigarette major ITC rose 1.23% to Rs 255.10 after the company's chief operating officer (COO) Sanjiv Puri was quoted as saying that the firm's consumer goods business presents the maximum potential for value creation. The company reportedly aims to strengthen its footprints in the FMCG sector by bringing in innovative, differentiated and first time products to the market, Puri added. ITC expects to ramp up revenue from branded packaged foods and personal care products to Rs 1 lakh crore by 2030.
Index heavyweight Reliance Industries rose 1.63% to Rs 1,062.45. The stock hit high of Rs 1,068 and low of Rs 1,047 in intraday trade.
Index heavyweight and software major Infosys lost 0.55% to Rs 1,041.35. The stock hit high of Rs 1,054.80 and low of Rs 1,036.05 in intraday trade.
ONGC fell 0.16%. ONGC during market hours today, 15 September 2016 said that ONGC Videsh (and its wholly owned subsidiary ONGC Videsh Vankorneft Pte., Singapore - OVVL) jointly signed definitive agreements with Rosneft, the national oil company of Russia for acquiring additional 11% shares in JSC Vankorneft, a company organized under the law of Russian Federation which is the owner of Vankor Field and North Vankor license. ONGC Videsh is a wholly owned subsidiary of ONGC.
Earlier, ONGC Videsh had successfully closed the acquisition of 15% shareholding interest on 31 May 2016. After the closing of the present transaction, ONGC Videsh will raise its participation share in Vankorneft to 26%. The acquisition is subject to relevant board, Government and Indian and Russian regulatory approvals and is expected to close by end of 2016.
Vankor is Rosneft's (and Russia's) second largest field by production and accounts for 4% of Russian production. The daily production from the field is around 421,000 barrels per day (bpd) of crude oil on an average and together with earlier acquisition of 15%, ONGC Videsh's share of daily oil production from Vankor will be about 110,000 bpd. The acquisition of additional 11% bears significant strategic importance and would add about 30% to the existing ONGC Videsh's production at the current rate and approximately 2.2 MMt of oil and 1.0 BCM of gas annually.
The present transaction provides an opportunity to ONGC Videsh to enhance its presence in Russia and is consistent with its stated strategic objective of adding high quality international assets to its existing E&P portfolio.
Hero MotoCorp dropped 1.86% to Rs 3,522.60 after the stock turned ex-dividend today, 15 September 2016 for final dividend of Rs 32 per share for the year ended 31 March 2016. Before turning ex-dividend, the stock offered a dividend yield of 0.89% based on the closing price of Rs 3,589.50 yesterday, 14 September 2016.
Most bank stocks fell. Among private sector bank stocks, Axis Bank (down 2.25%), Federal Bank (down 1.24%), City Union Bank (down 1.39%), IndusInd Bank (down 0.76%), and ICICI Bank (down 0.35%), edged lower. Kotak Mahindra Bank (up 0.15%), RBL Bank (up 0.49%) and HDFC Bank (up 0.77%) edged higher.
Yes Bank edged lower on reports that Securities & Exchange Board of India (Sebi) is looking into discrepancies in the bank's planned qualified institutional placement (QIP) of shares. The stock fell 2.52% to Rs 1,221.80. According to reports, the stock market regulator Sebi is looking into Yes Bank's notices to stock exchanges about the planned QIP of shares, the surge in the stock in the run-up to the issue date and its intra-day fall before the announcement to call off the issue. Sebi is reportedly looking into why investment bankers failed to take note of the fact that there was no pre-intimation by Yes Bank to stock exchanges that there would be a board meeting.
It may be recalled that Yes Bank had announced on 8 September 2016 its decision to defer QIP of shares citing extreme volatility during trading day on 8 September 2016 because of misinterpretation of new QIP guidelines. The bank had on 7 September 2016 announced opening of QIP of equity shares of face value Rs 10 each to raise up to $1 billion. Yes Bank had fixed Rs 1,371.84 per share as the floor price at that time.
Among PSU bank stocks, Bank of India (down 1.69%), Canara Bank (down 2.23%), IDBI Bank (down 1.8%), Bank of Baroda (down 1.01%), Union Bank of India (down 0.8%), Allahabad Bank (down 1.32%), Syndicate Bank (down 1.03%), Andhra Bank (down 0.83%), Indian Bank (down 1.51%) edged lower. Vijaya Bank (up 0.5%), Corporation Bank (up 2.62%) and Dena Bank (up 0.52%) edged higher.
Punjab National Bank fell 2.2%. PNB said that consequent upon receipt of capital funds to the tune of Rs 2112 crore from the Government of India on 14 September 2016, the bank has issued and allotted 16.43 crore equity shares at Rs 128.49 per equity share on preferential basis to Government of India. The announcement was made after market hours today, 15 September 2016.
State Bank of India shed 0.7%. The bank announced after market hours yesterday, 14 September 2016 that it has concluded the issue of $300 million AT1 Basel III compliant non-convertible, perpetual non call 5 year subordinated, unsecured note/bonds at a coupon 5.5% payable semi-annually, under bank's $10 billion RegS MTN Programme. The notes will be issued through bank's Dubai International Financial Centre Branch on 22 September 2016 and will be listed on Singapore Stock Exchange.
Index heavyweight and housing finance major HDFC advanced 1.19% to Rs 1,409.10. The stock hit high of Rs 1,414 and low of Rs 1,390 in intraday trade.
Pharmaceutical shares were mixed. Piramal Enterprises (up 2.32%), Divi's Laboratories (up 1.74%), Strides Shasun (up 1.60%), Cipla (up 1.10%), Wockhardt (up 0.85%), Lupin (up 0.72%), Sun Pharmaceutical Industries (up 0.66%) and GlaxoSmithKline Pharmaceuticals (up 0.53%), edged higher. Alkem Laboratories (down 0.06%), Aurobindo Pharma (down 0.38%), IPCA Laboratories (down 0.42%), Dr Reddy's Laboratories (down 0.56%), Glenmark Pharmaceuticals (down 0.62%) and Cadila Healthcare (down 1.41%), edged lower.
Most FMCG shares edged lower. Bajaj Corp (down 1.09%), Jyothy Laboratories (down 1.09%), Procter & Gamble Hygiene & Health Care (down 0.83%), Colgate Palmolive (India) (down 0.73%), GlaxoSmithKline Consumer Healthcare (down 0.64%), Tata Global Beverages (down 0.33%), Nestle India (down 0.31%) and Britannia Industries (down 0.25%), edged lower. Dabur India (up 0.21%), Marico (up 0.60%), Hindustan Unilever (up 0.68%) and Godrej Consumer Products (up 1%), edged higher.
NBCC (India) rose 1.57%. The company reported 16.39% rise in consolidated net profit to Rs 47.09 crore on 16.61% rise in total income from operations (net) to Rs 1273.26 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 14 September 2016.
Monsanto India fell while Bayer CropScience rose after the global parents of these two firms signed a definitive merger agreement for Bayer's acquisition of Monsanto for $128 per share in an all-cash transaction. Bayer CropScience rose 0.67% at Rs 4,138.40. Monsanto India lost 1.72% at Rs 2,528. Monsanto's board of directors, Bayer's board of management and Bayer's supervisory board unanimously approved the merger agreement. Bayer intends to finance the transaction with a combination of debt and equity. The equity component of about $19 billion is expected to be raised through an issuance of mandatory convertible bonds and through a rights issue with subscription rights. Bridge financing for $57 billion is committed by BofA Merrill Lynch, Credit Suisse, Goldman Sachs, HSBC and JP Morgan.
Bayer AG is a parent firm of Bayer CropScience. It held 68.57% stake in Bayer CropScience as on 30 June 2016.
Monsanto Company is a parent firm of Monsanto India. It held 72.14% stake in Monsanto India as on 30 June 2016. The acquisition is subject to customary closing conditions, including Monsanto shareholder approval of the merger agreement and receipt of required regulatory approvals. Closing is expected by the end of 2017.
BEML fell 12.26% after the company reported net loss of Rs 107.10 crore in Q1 June 2016, higher than net loss of Rs 68.10 crore in Q1 June 2015. Total income fell 49.7% to Rs 300.52 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 14 September 2016.
MMTC rose 3.63% after the company reported net loss of Rs 7.01 crore in Q1 June 2016 lower than net loss of Rs 30.55 crore in Q1 June 2015. Total income rose 35.87% to Rs 2806.72 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 14 September 2016.
GMR Infrastructure fell 1.79% after the company reported net loss of Rs 123.06 crore in Q1 June 2016 higher than net loss of Rs 1.33 crore in Q1 June 2015. Total income rose 35.99% to Rs 366.39 crore in Q1 June 2016 over Q1 June 2015. The result was announced before market hours today, 15 September 2016.
Unitech rose 5.42% after the company posted consolidated net loss of Rs 44.82 crore in Q1 June 2016 much lower than net loss of Rs 279.63 crore in Q1 June 2015. Total income rose 26.94% to Rs 495.93 crore in Q1 June 2016 over Q1 June 2015. The company's consolidated net debt as of 30 June 2016 stood at Rs 5265 crore. Net debt to equity ratio as of 30 June 2016 was 0.58. The company achieved sales bookings of 2 million square feet valued at Rs 362 crore during Q1 June 2016. The company delivered 2.35 million square feet of completed property during Q1 June 2016. The result was announced after market hours yesterday, 14 September 2016.
Key indices gained for second day in a row today, 15 September 2016. The Sensex has risen 59.35 points or 0.21% in two trading days from its close of 28,353.54 on 12 September 2016. The Sensex has declined 39.28 points or 0.14% in this month so far (till 15 September 2016). The Sensex has risen 2,295.35 points or 8.79% in calendar year 2016 so far (till 15 September 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,918.28 points or 26.31%. The Sensex is off 1,611.85 points or 5.37% from a record high of 30,024.74 hit on 4 March 2015.
In overseas stock markets, European stocks were mixed ahead of monetary policy decision from the Bank of England. No interest rate changes are expected from UK's central bank. Policy makers have to assess whether the outlook for Britain after its vote to leave the European Union warrants a change in strategy. Most Asian stocks fell as investors grappled with the seemingly diminishing ability of major central banks to stimulate growth, while a tumble in crude oil inflamed already heightened risk aversion. In US, the Dow industrials and the S&P 500 closed in negative territory yesterday, 14 September 2016, in the wake of slumping crude-oil prices, erasing earlier gains for the major benchmarks, while the tech-heavy Nasdaq bucked the losing trend.
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