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Market spurts on positive global cues

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Capital Market
Last Updated : Apr 26 2017 | 12:01 AM IST

Key benchmark indices spurted following a relief rally in global equities after centrist candidate Emmanuel Macron won the first round of the French presidential election on Sunday, 23 April 2017. The barometer index, the S&P BSE Sensex, rose 287.40 points or 0.97% to 29,943.24, as per the provisional closing data. The Nifty 50 index rose 89 points or 0.97% to 9,306.95, as per the provisional closing data. The Sensex hit its highest intraday level in almost three weeks in late trade. The Nifty hit its record high level in late trade.

The Sensex rose 305.98 points, or 1.03% at the day's high of 29,961.82 in late trade, its highest intraday level since 5 April 2017. The index rose 125 points, or 0.42% at the day's low of 29,780.84 in early trade. The Nifty rose 91.25 points, or 0.99% at the day's high 9,309.20 in late trade, its record high level. The index rose 32.40 points, or 0.35% at the day's low of 9,250.35 in early trade.

Among secondary barometers, the BSE Mid-Cap index provisionally rose 1.06%, outperforming the Sensex. The BSE Small-Cap index provisionally rose 0.58%, underperforming the Sensex.

The market breadth, indicating the overall health of the market, was positive. On BSE, 1,470 shares rose and 1,446 shares fell. A total of 164 shares were unchanged.

The total turnover on BSE amounted to Rs 3983.47 crore, lower than turnover of Rs 4360.76 crore registered during the previous trading session.

Index heavyweight Reliance Industries (RIL) gained 0.97% to Rs 1,430.10 after consolidated net profit excluding exceptional items rose 16.6% to Rs 8046 crore on 45.2% growth in turnover to Rs 92889 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 24 April 2017.

RIL increase in revenue in Q4 was primarily on account of increase in prices of refining and petrochemical products on the back of higher oil prices. Turnover was also boosted by robust growth in retail business. Gross refining margin (GRM) rose to $11.5 per barrel in Q4 March 2017 from $10.8 per barrel each in Q3 December 2016 and in Q4 March 2016. Earning per share (EPS) excluding exceptional items rose to Rs 27.3 in Q4 March 2017 compared with Rs 25.5 in Q3 December 2016 and Rs 23.4 in Q4 March 2016.

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Outstanding debt as on 31 March 2017 was Rs 196601 crore ($30.3 billion) compared to Rs 180665 crore as on 31 March 2016. Cash and cash equivalents as on 31st March 2017 were at Rs 77226 crore ($11.9 billion) compared to Rs 89969 crore as on 31 March 2016. The board of directors recommended a dividend of Rs 11 per share for the financial year ended 31 March 2017.

Meanwhile, RIL said, Reliance Jio Infocomm, a subsidiary of RIL crossed 50 million subscribers in just 83 days, and 100 million in 170 days, adding at an average rate of 6 lakh subscribers per day. Jio continues its rapid ramp-up of subscriber base and as of 31 March 2017, there were 10.89 crore subscribers on the network.

IT major Infosys rose 0.32% to Rs 929 after the company announced that it is strengthening its engineering footprint in Eastern Europe by opening its first office and delivery center in Karlovac, Croatia. The announcement was made after market hours yesterday, 24 April 2017.

Infosys said that in line with the company's strategy to establish global competency centers, offering the best talent in the market and making it available to customers globally, this delivery center (DC) also marks expansion into Eastern Europe's established heavy engineering sector. The new facility will meet near-shoring requirements, support engineering clients worldwide, as well as offer research & development (R&D) services. The Karlovac facility in Croatia is the latest location across 16 regions in Europe which Infosys has opened as part of its ongoing commitment to client servicing and local job creation.

Indiabulls Housing Finance rose 1.03% to Rs 1,017 after consolidated net profit rose 24.4% to Rs 840.53 crore on 21.8% rise in total income to Rs 3224.86 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 24 April 2017.

Indiabulls Housing Finance's board declared interim dividend of Rs 9 per share for the year ended March 2017 (FY 2017). The board has also authorised the company to issue secured non-convertible debentures and unsecured, redeemable, non-convertible subordinate debt in the nature of debentures (NCDs) upto Rs 25000 crore and Rs 2000 crore respectively, on private placement basis, in one or more tranches, from time to time.

Biocon jumped 8.25% to Rs 1,153.80 after the company said that its board of directors will consider bonus issue of shares at a meeting scheduled on Thursday, 27 April 2017. The announcement was made after market hours yesterday, 24 April 2017. The company will announce its Q4 results on 27 April 2017.

Overseas, most European stocks rose, extending previous day's gains, as investors monitor political developments in France and ahead of the European Central Bank's policy meeting later in the week.

Business confidence in France was steady in April amid improved conditions in the factory sector, offset by a slip in service sector confidence. INSEE's headline business confidence index was unchanged in April from the month before at 104.

Asian shares rose across the board. US stocks rallied yesterday, 24 April 2017, as concerns over France's potential exit from the euro currency bloc eased. The Dow Jones Industrial Average jumped 216.13 points, or 1.1%, to close at 20,763.89. The S&P 500 surged 25.46 points, or 1.1%, to 2,374.15.

Macron led the field in the first round of the French presidential election on Sunday, 23 April 2017, with 23.9% of the vote, ahead of far-right candidate Marine Le Pen with 21.4%. The two will now face off in the final round 7 May 2017.

Macron has promised to cut corporate tax rates gradually to 25% from the current 33%. He also wants to make France's 35-hour work week more flexible, and slash housing taxes for most people. He has pledged to cut public spending by 60 billion ($64 billion) a year, and plans an economic stimulus package worth 50 billion over five years. Macron is a free trade supporter and campaigned in favor of the EU's new agreement with Canada. Marine Le Pen wants France to leave the euro, return to the franc, exit the Schengen agreement and close French borders for immigrants.

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First Published: Apr 25 2017 | 3:34 PM IST

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