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Sensex crosses 32,000 mark

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Last Updated : Jul 22 2017 | 12:01 AM IST

Key benchmark indices hit fresh intraday high in morning trade. At 10:16 IST, the barometer index, the S&P BSE Sensex, was up 132.52 points or 0.42% at 32,036.92. The Nifty 50 index was up 45.35 points or 0.46% at 9,918.65. The Sensex was trading above the psychologically important 32,000 mark.

The Sensex rose 157.55 points, or 0.49% at the day's high of 32,061.95 in morning trade. The index rose 26.94 points, or 0.08% at the day's low of 31,931.34 in early trade. The Nifty rose 44.35 points, or 0.45% at the day's high of 9,917.65 in morning trade. The index rose 5.50 points, or 0.06% at the day's low of 9,878.80 in early trade.

Among secondary barometers, the BSE Mid-Cap index was up 0.25%. The BSE Small-Cap index was up 0.29%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was strong. On BSE, 1,269 shares rose and 747 shares fell. A total of 90 shares were unchanged.

Most metal shares rose. Bhushan Steel (up 3.06%), National Aluminium Company (up 1.36%), Hindustan Copper (up 0.77%), NMDC (up 0.69%), Vedanta (up 0.46%), Steel Authority of India (up 0.08%), JSW Steel (up 0.05%) and Tata Steel (up 0.05%), edged higher. Hindustan Zinc (down 0.28%), Hindalco Industries (down 0.3%) and Jindal Steel & Power (down 0.39%), edged lower.

Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for September 2017 delivery was currently up 0.09% at $2.7185 per pound on the COMEX.

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Most pharmaceutical shares declined. Lupin (down 2.28%), GlaxoSmithKline Pharmaceuticals (down 1.08%), Cipla (down 0.82%), Dr Reddy's Laboratories (down 0.55%), Piramal Enterprises (down 0.3%), Wockhardt (down 0.22%), Sun Pharmaceutical Industries (down 0.21%), Strides Shasun (down 0.18%) and Glenmark Pharmaceuticals (down 0.13%), edged lower. IPCA Laboratories (up 0.27%), Aurobindo Pharma (up 0.30%), Divi's Laboratories (up 0.42%), Cadila Healthcare (up 0.53%) and Alkem Laboratories (up 0.73%), edged higher.

IT major Wipro jumped 7.30% to Rs 288.65 after the company at the time of announcing Q1 results said that its board approved buyback of shares up to Rs 11000 crore.

Wipro's consolidated net profit fell 8.13% to Rs 2082.60 crore on 3.09% fall in net sales to Rs 13626.10 crore in Q1 June 2017 over Q4 March 2017. The result was announced after market hours yesterday, 20 July 2017. The results are as per International Financial Reporting Standards (IFRS).

The company's consolidated revenue from IT services segment in dollar terms rose 0.9% to $1,971.7 million in Q1 June 2017 over Q4 March 2017.

Jatin Dalal, Chief Financial Officer of Wipro said that the impact on operating margins by rupee appreciation and salary increases was partially offset by strong business efficiencies. The company continues to sustain robust cash generation.

Wipro expects revenue from IT Services business to be in the range of $1,962 million to $2,001 million in Q2 September 2017.

Wipro's board of directors approved a buyback proposal of up to 34.37 crore shares (representing 7.06% of total paid-up equity capital) from the shareholders of the company on a proportionate basis by way of a tender offer at Rs 320 per equity share for an aggregate amount not exceeding Rs 11000 crore. Promoters have indicated their intention to participate in the proposed buyback.

Index pivotal Reliance Industries (RIL) rose 2.87% to Rs 1,572.55 after consolidated net profit rose 28% to Rs 9108 crore on 26.7% rise in revenue to Rs 90537 crore in Q1 June 2017 over Q1 June 2016. The announcement was made after market hours yesterday, 20 July 2017.

RIL's increase in revenue is primarily on account of increase in prices and volumes of refining and petrochemical products partially offset by lower prices and volumes from exploration and production (E&P) business. Revenue was also boosted by robust growth in retail business which recorded a 73.6% increase in revenue to Rs 11571 crore. Reliance Retail witnessed growth across all consumption baskets during the quarter.

Strong refining and petrochemicals margin environment contributed to higher operating profits for the quarter. Gross refining margins recorded nine-year-high of $ 11.9 per bbl whereas petrochemicals EBIT (earnings before interest and depreciation) margin were at all-time high of 15.8%. Gross refining margin rose to $11.9 per barrel in Q1 June 2017 from $11.5 per barrel in Q1 June 2016.

Meanwhile, the board of directors of RIL considered and approved an investment in Balaji Telefilms (BTL), to acquire 2.52 crore equity shares constituting 24.92% of BTL's equity, through subscription to preferential issue of shares by BTL to RIL for cash consideration of Rs 164 per equity share amounting to an investment of Rs 413.28 crore. This investment in content production (including digital content) is in line with RIL's commitment to invest and grow in telecom digital and media businesses.

Media company Balaji Telefilms surged 3.94% to Rs 194 after the company said its board approved preferential issue of 2.52 crore shares of the company at Rs 164 per share, aggregating Rs 413.28 crore to Reliance Industries. The announcement was made after market hours yesterday, 20 July 2017.

On the macro front, NDA candidate Ram Nath Kovind was on Thursday, 20 July 2017, elected as the 14th President of India after receiving an overwhelming majority of votes from the country's lawmakers. Kovind defeated Opposition candidate Meira Kumar, a former Lok Sabha speaker after garnering 66% of the votes in the Electoral College. Kovind received 2,930 votes with a value of 7,02,044. Kovind will be the first BJP member to be elected president. He will be sworn in by the Chief Justice of India JS Khehar in the Central Hall of Parliament on 25 July.

Overseas, Asian shares were trading lower, taking a breather from recent upmove and after the European Central Bank (ECB) took a dovish stance on policy and its ongoing stimulus program.

ECB left its key interest rates unchanged on Thursday. The ECB also reiterated its plan to purchase 60 billion euros worth of government bonds and other assets each month through December.

US stocks finished mostly lower on Thursday as Home Depot weighed on the Dow, but the Nasdaq bucked the trend to match its best win streak since February 2015 and closed at a record. The Dow Jones Industrial Average shed 28.97 points, or 0.1%, to end at 21,611.78. The Nasdaq Composite Index edged up 4.96 points to close at 6,390, rising for a 10th session in a row. The S&P 500 index slipped 0.38 points to finish at 2,473.45.

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First Published: Jul 21 2017 | 10:18 AM IST

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