Key benchmark indices edged higher in early trade on firm Asian stocks. The barometer index, the S&P BSE Sensex, was up 115.51 points or 0.56%, off close to 30 points from the day's high and up about 25 points from the day's low. The market breadth, indicating the overall health of the market, was strong. Asian stocks rose on Tuesday, 15 October 2013, as Senate leaders on Monday, 14 October 2013, said they're optimistic they will forge a deal to reopen the US government and avoid a breach of the debt limit this week.
Index heavyweight Reliance Industries (RIL) rose after company reported Q2 results after trading hours on Monday, 14 October 2013. IT major TCS scaled record high ahead of its Q2 result today, 15 October 2013. Private bank major HDFC Bank fell ahead of its Q2 results today, 15 October 2013. Fortis Healthcare jumped after the company after trading hours on Monday, 14 October 2013, said that Fortis Healthcare International Pte, a Singapore based subsidiary of Fortis Healthcare, has decided to divest its entire shareholding in Altai Investments, the holding company for Quality Healthcare (QF), Hong Kong, to Bupa, for $355 million.
The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Monday, 14 October 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 730.29 crore on Monday, 14 October 2013, as per provisional data from the stock exchanges.
In the foreign exchange market, the rupee edged higher against the dollar on global risk-on sentiment as US lawmakers appeared to make progress toward raising the US debt limit as that deadline approaches. The partially convertible rupee was hovering at 61.435, stronger than its close of 61.55/56 on Monday, 14 October 2013.
At 9:30 IST, the S&P BSE Sensex was up 115.51 points or 0.56% to 20,723.05. The index jumped 142.95 points at the day's high of 20,750.49 in early trade. The index gained 91.18 points at the day's low of 20,698.72 in early trade.
The CNX Nifty was up 32.40 points or 0.53% to 6,145.10. The index hit a high of 6,153.85 in intraday trade. The index hit a low of 6,133.35 in intraday trade.
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The market breadth, indicating the overall health of the market, was strong. On BSE, 742 shares gained and 310 shares fell. A total of 40 shares were unchanged.
Among the 30-share Sensex pack, 27 stocks rose and only three fell. Wipro (up 1.98%), Maruti Suzuki India (up 1.43%) and NTPC (up 1.32%), edged higher.
IT major TCS rose 1.69% to Rs 2,252, ahead of its Q2 result today, 15 October 2013. The stock hit record high of Rs 2,255.70 in intraday trade.
CMC jumped 5.9% to Rs 1,455.10 after the company reported strong Q2 results after trading hours on Monday, 14 October 2013. CMC's consolidated net profit jumped 27% to Rs 67.31 crore on 15% growth in operating revenue to Rs 560.75 crore in Q2 September 2013 over Q1 June 2013. CMC is a subsidiary of IT major TCS.
Private bank major HDFC Bank fell 0.07% ahead of its Q2 results today, 15 October 2013.
Reliance Industries (RIL) rose 1.92%. The company after trading hours on Monday, 14 October 2013, said its net profit rose 1.5% to Rs 5490 crore on 14.2% growth in turnover to a record Rs 106523 crore in Q2 September 2013 over Q2 September 2012. Net profit rose 2.6% on 17.6% growth in turnover in Q2 September 2013 over Q1 June 2013.
RIL's gross refining margin (GRM) declined to $7.7 per barrel in Q2 September 2013, from $8.4 a barrel in Q1 June 2013 and $9.5 a barrel in Q2 September 2012. RIL said that the company's refining business performance during the quarter was positively impacted by increased crude throughput, stable middle distillate and naphtha cracks, and favourable exchange rate movement. This was partly offset by weak gasoline and solid products (pet-coke/sulphur) cracks, widening Brent-Dubai differential and lower domestic sales on weak demand.
The company said that its petrochemicals business performance during the quarter was positively impacted by higher volumes, stable demand, improved deltas for key polymers (PP/PE) and fibre intermediates (PX/MEG), and favourable exchange rate movement. Though polyester margins were weak, RIL benefited due to integrated chain economics. During the quarter, domestic demand for polymer products was higher by 1%, mainly driven by stable domestic consumption in some of the major end-use sectors viz. packaging sector, moulded products, extrusion coating, pipes and films. The growth in demand for polymer products was subdued in Q2 September 2013 and the anticipated festive season demand did not materalise fully, RIL said.
RIL's other income or income from sources other that core business declined 2.46% to Rs 2060 crore in Q2 September 2013 over Q2 September 2012. Other income declined 18.73% in Q2 September 2013 over Q1 June 2013. Other income's influence on RIL's profitability continues to remain high.
RIL's outstanding debt as on 30 September 2013 was Rs 83982 crore, higher than Rs 72427 crore as on 31 March 2013. RIL had cash and cash equivalents of Rs 90540 crore as on 30 September 2013. These were in bank deposits, mutual funds, CDs and Government securities/bonds. RIL was debt free on a net basis as on 30 September 2013.
The net addition to fixed assets for the half year ended 30 September 2013 was Rs 20154 crore, including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej, Silvassa and Hazira, RIL said in a statement.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries said: "RIL's first half performance reflects the resilience of our business model in a period of volatility and uncertainty. Our diversified and integrated petrochemicals business captured margins across segments - delivering near-record profit levels even as the domestic economy slowed. Optimal utilization of best-in-class refinery assets and inherent flexibility in sourcing, product delivery contributed to healthy operating profits from our refining business. Retail business continues to break new ground, growing 41% in 1H FY14. Reliance's ongoing counter-cyclical investments will strengthen our competitive position in each business segment".
Indian Oil Corporation gained 0.69%. The company after market hours on Monday, 14 October 2013, said that subsequent to the invitation of financial bid for disinvestment of 39.99% equity shares of Haldia Petrochemicals (HPL) held by West Bengal Industrial Development Corporation (WBIDC) and 100% preference shares of Haldia Petrochemicals held by WBIDC, West Bengal Industrial Infrastructure Development Corporation (WBIIDC) and West Bengal Industrial Development Finance Corporation (WBIDFC) being disinvested by the state government of West Bengal (GoWB), Indian Oil Corporation has been announced by the GoWB, as the selected bidder, in line with the process laid in the Request for Proposal.
The acquisition of the stake is subject to certain existing shareholders' exercise of right of first refusal on the entire sale shares, as per the existing Articles of Association of HPL and proceedings pending before courts; and exercise of tag along rights by certain existing shareholder. The consummation of the transaction, also, remains subject to execution of definitive agreements and obtaining of applicable regulatory approvals and certain third party consents, Indian Oil Corporation said.
Fortis Healthcare jumped 5.4% to Rs 110 after the company after trading hours on Monday, 14 October 2013, said that Fortis Healthcare International Pte, a Singapore based subsidiary of Fortis Healthcare, has decided to divest its entire shareholding in Altai Investments, the holding company for Quality Healthcare (QF), Hong Kong, to Bupa, for $355 million. The offer price is reflective of the value and efficiencies added through improved operations and the introduction of new and specialised medical centres while QH has been a part of the Fortis group, Fortis Healthcare said in a statement. The deal is expected to be completed in October 2013, Fortis Healthcare said.
The stock market remain closed tomorrow, 16 October 2013, on account of Bakri Id.
Bond prices declined after data released by the government after trading hours on Monday, 14 October 2013, showed that consumer price inflation accelerated in September 2013. The yield on the benchmark federal paper 7.16% GS 2023 was hovering at 8.6531%, higher than its close of 8.5747% on Monday, 14 October 2013. Bond yield and bond prices are inversely related.
The annual rate of inflation based on the combined consumer price index (CPI) for urban and rural India rose 9.84% in September 2013, from 9.52% in August 2013. The CPI inflation for rural and urban areas rose 9.71% and 9.93% in September 2013, respectively. Inflation rates (final) for rural and urban areas for August 2013 were 8.93% and 10.32% respectively. The headline CPI (combined) has seen a rise of 1.19% (m-o-m) in September 2013.
Asian stocks rose on Tuesday, 15 October 2013, as Senate leaders on Monday, 14 October 2013, said they're optimistic they will forge a deal to reopen the US government and avoid a breach of the debt limit this week. Key benchmark indices in South Korea, Japan, Hong Kong and Taiwan rose 0.51% to 0.92%. China's Shanghai Composite fell 0.14%. Stock markets in Singapore, Indonesia, Malaysia and the Philippines were shut for holidays.
US stocks staged a strong intraday rebound on Monday, 14 October 2013, amid signs lawmakers could reach a deal before the government loses its ability to borrow money later this week.
Investors considered remarks by Senate Majority Leader Harry Reid, who said on the Senate floor on Monday, 14 October 2013, that he is very optimistic about concluding a deal this week to raise the debt limit as well as end the government shutdown. Sen. Mitch McConnell, the Republican minority leader, said he shared Reid's feeling that "we'll get a result that's acceptable to both sides."
Markets worldwide have been watching Washington as it nears an estimated Oct. 17 deadline for Congress to allow the Treasury to borrow in order to pay the government's bills. Without legislative action, the US could default on its debt obligations at a time when the global economy is still recovering from the financial crisis.
The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. The lack of data may make it harder for the Federal Reserve to assess the economy's strength as policy makers mull the timing of reductions in bond buying. Government data from payrolls to retail sales will be delayed as long as the shutdown continues. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.
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