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Sensex, Nifty advance in early trade

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Last Updated : Jan 20 2020 | 9:31 AM IST

Key indices were trading higher on positive Asian cues. At 9:20 IST, the barometer index, the S&P BSE Sensex, was up 188.3 points or 0.45% at 42,133.40. The Nifty 50 index was up 36.55 points or 0.30% at 12,388.90.

The S&P BSE Mid-Cap index was up 0.44%. The S&P BSE Small-Cap index was up 0.48%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 744 shares rose and 290 shares fell. A total of 66 shares were unchanged.

Among stocks, Reliance Industries rose 0.27%. Reliance Industries (RIL), on consolidated basis, reported 13.55% increase in net profit to Rs 11,640 crore on 2.52% decrease in net sales to Rs 152,939 crore in Q3 December 2019 over Q3 December 2018. The revenue decreased primarily due to 10.6% decline in order-to-cash (O2C) business revenues, with lower product price realization and 6.6% fall in Brent crude price. This was partially offset by continuing growth momentum in consumer businesses. Digital services and retail business recorded an increase of 36.2% and 27.4% respectively, in revenue during the quarter. RIL's gross refining margin (GRM), or what it makes from turning every barrel of crude to fuel, came in at $9.2 per barrel from $8.8 per barrel.

HDFC Bank was up 0.03%. HDFC Bank reported a 32.77% rise in net profit to Rs 7416.48 crore in Q3 December 2019 from Rs 5585.9 crore in Q3 December 2018. Profit before tax (PBT) for Q3 December 2019 was at Rs 9,901.90 crore. Adjusting for one-off credit items, the core PBT at Rs 10,401.90 crore, grew by approximately 21%. The bank's net revenues (net interest income plus other income) increased by 19.1% to 20,842.20 crore for the quarter ended 31 December 2019 over the corresponding quarter of the previous year. Net interest income (interest earned less interest expended) for Q3 December 2019 grew 12.69% to Rs 14,172.90 crore from Rs 12,576.80 crore for Q3 December 2018, driven by growth in advances of 19.9%, and a growth in deposits of 25.2%. The net interest margin for the quarter remained stable at 4.2%.

L&T Technology Services was down 0.74%. L&T Technology Services (LTTS)'s consolidated net profit fell 0.8% to Rs 204.10 crore on 1.5% rise in revenue to Rs 1,423 crore in Q3 December 2019 over Q2 September 2019. On a year-on-year (YoY) basis, consolidated net profit grew 10% while net sales increased 8% in Q3FY20. The company bagged 9 multi-million dollar deals across all major industry segments including two deals worth $30 million each. On a YoY basis, LTTS increased its $20 million clients by 2 and its $10 million clients by 4. At the end of the third quarter, the patents portfolio of LTTS stood at 472, out of which 352 are co-authored with its customers and the rest are filed by LTTS.

ICICI Lombard General Insurance Company's fell 0.88%. ICICI Lombard General Insurance Company's net profit grew 23% to Rs 294 crore in Q3 December 2019 from Rs 239 crore in Q3 December 2018. Total income rose 15.6% to Rs 2914.89 crore in Q3FY20 over Q3FY19. GDPI (gross direct premium income) remained flat at Rs 3693 crore in Q3FY20 compared to Rs 3699 crore in Q3FY19. Direct premiums written represent the growth of a company's insurance business during a given period.

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Maruti Suzuki shed 0.09%. Maruti Suzuki informed that the company launched the BS6 variant of country's best-selling multi-purpose van Eeco. The revised Ex-showroom price in Delhi and NCR region shall vary from Rs 3,80,800 to Rs 6,84,000 and in Rest of India from Rs 3,90,800 to Rs 6,94,000. Eeco will now have improved mileage, powerful performance and low cost of maintenance. The price revision is effective from 17 January 2020.

Overseas, Asian stocks were trading higher on Monday as Wall Street extended its run of record peaks on solid US economic data and lashes of liquidity from the Federal Reserve.

In US, stocks closed higher on Friday, ending the week at new record high, helped by data suggesting the economy and corporate profits are in good health.

The rally this week has also been supported by at least a partial resolution of the US - China trade dispute and the passage of the US, Mexico, Canada trade deal by Congress.

Sentiment was boosted by data on US December housing starts that showed home constructing rising 16.9%, to annual rate of 1.608 million units, to the fastest pace since 2006.

In other US economic data, the Federal Reserve reported that industrial production fell 0.3% in December.

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First Published: Jan 20 2020 | 9:22 AM IST

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