Market ends with small gains

Key benchmark indices settled with small gains in a volatile trading session. The barometer index, the S&P BSE Sensex, rose 18.69 points or 0.07% to settle at 28,372.23. The Nifty 50 index rose 11 points or 0.13% to settle at 8,726.60.

The barometer index, the S&P BSE Sensex, rose 18.69 points or 0.07% to settle at 28,372.23, its highest closing level since 9 September 2016. The Sensex fell 94.16 points, or 0.33% at the day's low of 28,259.38. The index rose 62.87 points, or 0.22% at the day's high of 28,416.41.

The Nifty 50 index rose 11 points or 0.13% to settle at 8,726.60, its highest closing level since 9 September 2016. The Nifty fell 26.70 points, or 0.31% at the day's low of 8,688.90. The index rose 24.25 points, or 0.28% at the day's high of 8,739.85.

Back home, the market breadth, indicating the overall health of the market, was strong. On BSE, 1,766 shares rose and 947 shares fell. A total of 196 shares were unchanged. The BSE Mid-Cap index rose 1.34%. The BSE Small-Cap index rose 1.21%. Both these indices outperformed the Sensex.

Among the sectoral indices on BSE, the S&P BSE Basic Materials index (up 1.98%), the S&P BSE Consumer Durables index (up 1.12%), the S&P BSE Utilities index (up 0.93%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.82%), the S&P BSE Bankex (up 0.77%), the S&P BSE Industrials index (up 0.74%), the S&P BSE Finance index (up 0.69%), the S&P BSE Auto index (up 0.57%), the S&P BSE Telecom index (up 0.56%), the S&P BSE Power index (up 0.55%), the S&P BSE Oil & Gas index (up 0.33%), the S&P BSE Healthcare index (up 0.29%), the S&P BSE Capital Goods index (up 0.28%), the S&P BSE Realty index (up 0.15%), the S&P BSE Metal index (up 0.12%), outperformed the Sensex. The S&P BSE Energy index (down 0.04%), the S&P BSE Teck index (down 0.41%) and the S&P BSE IT index (down 0.67%), underperformed the Sensex. The S&P BSE FMCG index rose 0.07%, matching the Sensex's gains in percentage terms.

Index heavyweight Reliance Industries (RIL) shed 0.11% to Rs 1,045.45. RIL announced during trading hours today, 14 September 2016, that Bharti Airtel has decided to provide more points of interconnection to Reliance Jio Infocomm (RJIL). RJIL, a subsidiary of RIL, has built an all-IP data network with 4G LTE technology.

Bharti Airtel rose 0.16% to Rs 318.50.

Telecom stocks gained. Idea Cellular (up 1.03%), Tata Teleservices (Maharashtra) (up 0.34%) and Reliance Communications (up 2.72%) rose. MTNL lost 2.82%.

Shares of Bharti Infratel rose 0.15%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.

PSU Banks were in demand. Canara Bank (up 4.97%), Bank of Baroda (up 4.08%), Allahabad Bank (up 3.16%), Bank of India (up 4.57%), Punjab National Bank (up 3.39%), IDBI Bank (up 2.84%), Andhra Bank (up 3.06%), Syndicate Bank (up 2.11%), State Bank of India (up 1.94%), Union Bank of India (up 2.52%), Vijaya Bank (up 2.57%), Indian Bank (up 0.35%), UCO Bank (up 1.1%), Dena Bank (up 1.46%), Corporation Bank (up 2.2%), Central Bank of India (up 0.1%) edged higher.

Private sector banks were mixed. Yes Bank (up 3.99%), RBL Bank (up 0.49%), Federal Bank (up 2.12%), ICICI Bank (up 1.06%) and Axis Bank (up 1.71%), edged higher. IndusInd Bank (down 0.45%), HDFC Bank (down 0.55%), Kotak Mahindra Bank (down 0.94%) and City Union Bank (down 2.21%), edged lower.

Cement stocks rose. Ambuja Cements (up 1.34%), ACC (up 2.32%), UltraTech Cement (up 2.76%) gained. Shree Cement fell 0.57%.

Grasim Industries rose 1.88% at Rs 4,712.70. Grasim has exposure to the cement sector through its holding in UltraTech Cement.

IT major TCS fell 1.06% to Rs 2,334.20. The company announced during trading hours today, 14 September 2016, that its customer, Bank of Bhutan, deployed TCS BaNCS for Core Banking in 10 months, resulting in ability to handle increased transaction volumes and improved success rate of delivery channel transactions. All existing customers, accounts, lending and internet banking subscribers were migrated from the erstwhile Oracle FLEXCUBE system to TCS BaNCS as part of this transformation initiative.

HCL Technologies fell 0.88%. The company said it has secured a contract to provide application management services for Western Australia's leading energy provider, Synergy. Under the terms of the contract, HCL Technologies will transform and support Synergy's digital and business applications landscape enabling consolidation and rationalisation in the changing energy environment. The announcement was made during market hours today, 14 September 2016.

Tata Steel rose 0.09% to Rs 373.95. On a consolidated basis, Tata Steel reported net loss of Rs 3183.07 crore in Q1 June 2016, higher than net loss of Rs 316.91 crore in Q1 June 2015. Total income fell 5.5% to Rs 26542.83 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Monday, 12 September 2016.

Tata Steel's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) rose 21% to Rs 3270 crore in Q1 June 2016 over Q1 June 2015 due to improved operating performance across India, Europe, and South East Asia. EBITDA margin expanded to 12.4% in Q1 June 2016 from 9.6% in Q1 June 2015. Tata Steel said that the company recognised loss of Rs 3296 crore in Q1 June 2016 on account of divestment of Long Steel UK.

Coal India fell 2.01% to Rs 324.05 after consolidated net profit fell 14.78% to Rs 3065.28 crore on 6.11% decline in net sales to Rs 17796.05 crore in Q1 June 2016 over Q1 June 2015. The result was announced yesterday, 13 September 2016 when the stock market was closed on account of Bakri Id.

Cairn India and Vedanta rose after the shareholders of Cairn India approved the company's merger with Vedanta. Vedanta (up 2.29%) and Cairn India (up 1.93%) edged higher.

Cairn India's equity shareholders approved the scheme of arrangement for merger of the company with Vedanta with requisite majority. Vedanta's shareholders had already approved the same on 9 September 2016.

Tom Albanese, CEO of Vedanta said that the approval for the Vedanta and Cairn India merger by both sets of shareholders consolidates Vedanta's portfolio of attractive, Tier-I assets and simplifies the group structure. Vedanta remains committed to delivering superior value for the shareholders of the merged company through its diversified portfolio of world-class, low cost, long-life assets that have significant growth potential.

The merger scheme is now subject to the approval of the jurisdictional High Courts and other regulatory approvals and is expected to be effective by the end of the current financial year (FY 2017).

It may be recalled that Vedanta, Cairn India and the parent company, Vedanta Resources plc had announced revised and final terms to the recommended merger between Vedanta and Cairn India on 22 July 2016. The boards of Vedanta and Cairn India had approved revised and final terms for the transaction, taking into account prevailing market conditions and having regard to underlying commercial factors. Pursuant to the revised and final terms, each Cairn India minority shareholder would receive for each equity share held in Cairn one equity share in Vedanta and four redeemable preference shares with a face value of Rs 10 in Vedanta with a coupon of 7.5% and tenure of 18 months from issuance and implied premium of 20% to one month volume weighted average price (VWAP) of Cairn India share price.

IL&FS Transportation Networks rose 4.34% after the company reported net profit of Rs 17.87 crore in Q1 June 2016 as compared to net loss of Rs 18.64 crore in Q1 June 2015. Total income rose 16.41% to Rs 1281.56 crore in Q1 June 2016 over Q1 June 2015. Earnings before interest, tax, depreciation and amortization (EBITDA) margin rose to 29% in Q1 June 2016 from 23% in Q1 June 2015. EBITDA rose 48.41% to Rs 374 crore in Q1 June 2016 over Q1 June 2015. The company has total order book of Rs 14625 crore. The company's construction order book stands at Rs 13758 crore to be executed over the next 5 years which includes non-road projects. The result was announced yesterday, 13 September 2016, when the stock markets were closed on account of Bakri Id.

NHPC gained 4.49%. The company announced after market hours on Monday, 12 September 2016, that it has awarded a contract worth Rs 132.74 crore to Bhel for renovation and modernization of 180 megawatts (MW) Baira Siul Power Station in Himachal Pradesh. The scope of the contract agreement includes electromechanical works packages comprising supply, erection, commissioning of turbines and accessories and dismantling of existing system.

Reliance Capital rose 8.69% after its board of directors gave approval to independently list its home finance business, Reliance Home Finance on the stock exchanges. The announcement was made yesterday, 13 September 2016, when stock market remained closed on account of Bakri Id.

Reliance Capital said the independent listing of Reliance Home Finance (RHF) is expected to unlock substantial value for existing shareholders of Reliance Capital. The listing of Reliance Home Finance will also lead to increased management focus and accelerated growth in the home finance business. As per the proposal, 49% stake in Reliance Home Finance Limited will be allotted to all shareholders of Reliance Capital, in the ratio of one share free of cost in Reliance Home Finance for every one share held in Reliance Capital.

Reliance Capital will hold a 51% stake in Reliance Home Finance, and the company will be adequately capitalised to grow the lending book to over Rs 20000 crore in the next 18 months. The proposal is subject to necessary shareholders and other approvals. Reliance Home Finance, a 100% subsidiary of Reliance Capital, provides a wide range of loan solutions like home loan, LAP, construction finance and affordable housing loans. The company reported an AUM of Rs 8259 crore ($1.2 billion) during the quarter ended 30 June 2016.

Godfrey Phillips India lost 8.15% after net profit dropped 62% to Rs 22.38 crore on 18.5% fall in net sales to Rs 465.59 crore in Q1 June 2016 over Q1 June 2015. The result was announced yesterday, 13 September 2016, when the stock markets were closed on account of Bakri Id.

National Aluminium Company (Nalco) fell 1.7% after the company's net profit fell 22.55% to Rs 135.01 crore on 3.26% rise in total income to Rs 1682.63 crore in Q1 June 2016 over Q1 June 2015. National Aluminium Company (Nalco) said that despite quantum jump in production, the profit in Q1 June 2016 took a dip due to low market realization.The announcement was made after market hours yesterday, 11 September 2016.

Glenmark Pharmaceuticals rose 2.61% after the company announced that it has been granted final approval by the United States Food & Drug Administration for Diclofenac Sodium Gel, 3%. Diclofenac Sodium Gel, 3% is a generic version of Solaraze Gel, 3% of Fougera Pharmaceuticals Inc. According to IMS Health sales data for the 12 month period ending July 2016, the Solaraze Gel, 3% market achieved annual sales of around $297.90 million in the US. The announcement was made before market hours today, 14 September 2016.

JMT Auto rose 1.92% after the company fixed 22 September 2016 as record date for 2 for 1 stock split. The announcement was made during market hours today, 14 September 2016.

Hindustan Construction Company surged 7.87% after the company said it has secured a contract worth Rs 181.65 crore from the Department of Atomic Energy to build premium high rise residential towers at Indira Gandhi Centre for Atomic Research, Kalpakkam, Tamil Nadu. This is an item rate contract to be completed in 30 months. The company made the announcement yesterday, 13 September 2016 when the stock market was closed on account of Bakri Id.

The Sensex has declined 79.94 points or 0.28% in this month so far (till 14 September 2016). The Sensex has risen 2,254.69 points or 8.63% in calendar year 2016 so far (till 14 September 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,877.62 points or 26.13%. The Sensex is off 1,652.51 points or 5.5% from a record high of 30,024.74 hit on 4 March 2015.

On the economic front, the annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 3.74% (provisional) for the month of August 2016 as compared to 3.55% (provisional) in July 2016 and -5.06% in August 2015. Build up inflation rate in the financial year so far was 4.45% compared to a build up rate of 0.23% in the corresponding period of the previous year. The data was announced during market hours today, 14 September 2016.

India's industrial production (IIP) fell 2.4% in July 2016 over July 2015. Industrial production expanded 2.1% in June 2016 over June 2015. The data was announced after market hours on Monday, 12 September 2016.

India's inflation data based on consumer price index (CPI) for August 2016 slowed to 5.05% in August 2016. CPI accelerated to 6.07% in July 2016 from 5.77% in June 2016. The data was announced after market hours on Monday, 12 September 2016.

In overseas stock markets, European stocks were trading higher, shrugging off market jitters over central bank uncertainty and a renewed drop in oil prices. Most Asian shares declined today, 14 September 2016, bruised by a fall in oil prices on renewed worries about a supply glut and as investors grew nervous about the diminishing capacity of the world's major central banks to shore up economic growth. The US market edged lower yesterday, 13 September 2016, as equities suffered a sharp sell-off amid a slump in energy shares and uncertainty about the Federal Reserve's plans for monetary policy.

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