Trading for the week began with a bang as key benchmark indices rallied after Prime Minister Narendra Modi on Friday, 15 August 2014, in his first Independence Day address to the nation emphasized the need for better governance and stressed on the need to promote the manufacturing sector. A day later, Modi said that the government's thrust is on infrastructure development. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit record high on intraday basis as well as closing basis. The Sensex surged 287.73 points or 1.1% to settle at 26,390.96. The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap index rose 1.8%. The BSE Small-Cap index rose 2.27%. Both these indices outperformed the Sensex. Decline in crude oil prices and gains in European stocks on signs of easing geopolitical tensions in Ukraine aided the upmove on the domestic bourses.
Shares of PSU OMCs rose as crude oil futures declined. BPCL hit record high. Indian Oil Corporation (IOCL) surged after the company clarified that the matter of investment in Mathura Refinery Expansion Project is in preliminary stage and has not been conceptualized. Shares of state run upstream oil and gas companies rose on hopes of a fall in subsidy sharing burden as crude oil prices dropped. Cipla rose in volatile trade.
Realty stocks extended Thursday's gains. Cement stocks were in demand on renewed buying. Birla Corporation scaled record high. Index heavyweight and cigarette maker ITC dropped on reports the Centre is planning to introduce tougher provisions under anti-tobacco law to curb tobacco consumption in the country. Bank stocks rose after Prime Minister Narendra Modi announced a new financial scheme to help the poor open bank accounts.
The market sentiment was boosted by data showing that foreign portfolio investors (FPIs) were net buyers of Indian stocks on Thursday, 14 August 2014.
Key benchmark indices retained positive zone almost throughout the trading session.
The S&P BSE Sensex was up 287.73 points or 1.1% to 26,390.96, a record closing high. The index jumped 309.88 points at the day's high of 26,413.11 in late trade, a lifetime high for the barometer index. The index fell 27.95 points at the day's low of 26,075.28 in early trade.
More From This Section
The CNX Nifty was up 82.55 points or 1.06% to 7,874.25, a record closing high. The index hit a high of 7,880.50 in intraday trade, a lifetime high. The index hit a low of 7,779.20 in intraday trade.
The total turnover on BSE amounted to Rs 2570 crore, lower than Rs 2591.77 crore on Thursday, 14 August 2014.
The market breadth indicating the overall health of the market was strong. On BSE, 1,930 shares gained and 1,003 shares fell. A total of 98 shares were unchanged.
The BSE Mid-Cap index gained 162.49 points or 1.8% to settle at 9,170.34. The BSE Small-Cap index gained 223.41 points or 2.27% to settle at 10,047.47. Both these indices outperformed the Sensex.
The S&P BSE Oil & Gas index (up 2.64%), the S&P BSE Bankex (up 2.36%), the S&P BSE Capital Goods index (up 2.33%), the S&P BSE Consumer Durables index (up 1.71%), the S&P BSE Auto index (up 1.59%), the S&P BSE Power index (up 1.51%), the S&P BSE Metal index (up 1.47%), the S&P BSE Realty index (up 1.37%) and the S&P BSE Healthcare index (up 1.27%) outperformed the Sensex.
The S&P BSE Teck index (up 0.26%), the S&P BSE IT index (down 0.41%) and the S&P BSE FMCG index (down 0.44%) underperformed the Sensex.
Index heavyweight and cigarette maker ITC dropped 1.88% on reports the Centre is planning to introduce tougher provisions under anti-tobacco law to curb tobacco consumption in the country. After raising taxes on cigarettes and calling for a countrywide ban on sale of tobacco products, the Centre is now planning to introduce tougher provisions under law to curb tobacco consumption in the country, report said. From banning branding on cigarette packets to raising the age limit on tobacco consumption to 25 years from 18, to substantively increasing penalties for smoking in public, the Union Health Ministry is considering a host of amendments to the anti-tobacco law, report added.
As per reports, Health Minister Harsh Vardhan has constituted a committee of experts last month headed by Delhi government's former principal secretary, Health, Ramesh Chandra, to review and suggest changes to the Cigarettes and Other Tobacco Products Act 2003 (COTPA), and it is expected to submit its report by the end of this month.
Britannia Industries climbed 6.51% to Rs 1,265.80. The stock hit a record high of Rs 1,270 in intraday today, 18 August 2014.
Cipla gained 4.91% to Rs 470, with the stock reversing intraday fall. The stock was volatile. The stock hit a record high of Rs 471 in intraday trade. The stock hit a low of Rs 442. The company's consolidated net profit declined 39.17% to Rs 295 crore on 13.6% growth in net sales to Rs 2647 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Thursday, 14 August 2014. The stock market was closed on Friday, 15 August 2014, on account of Independence Day.
Cipla's income from operations rose 8.3% to Rs 2720 crore in Q1 June 2014 over Q1 June 2013. EBITDA declined 21.44% to Rs 542 crore in Q1 June 2014 over Q1 June 2013. EBITDA in Q1 June 2013 includes certain large one-off items.
Domestic sales rose 17% to Rs 1289 crore in Q1 June 2014 over Q1 June 2013, largely driven by growth in respiratory, anti-infective and cardiac therapies, Cipla said in a statement. Exports and formulations rose 12.7% to Rs 1218 crore in Q1 June 2014 over Q1 June 2013. Exports of APIs declined 5.4% to Rs 140 crore in Q1 June 2014 over Q1 June 2013. The growth in export revenues was primarily due to growth in anti-retroviral, anti-asthma and anti-allergic segments, Cipla said in a statement.
Cipla said that the current year figures include the relevant results of Cipla's subsidiaries from the date they became subsidiary of the company and therefore the corresponding figures for the previous period are not comparable.
The company's management in a post-result conference call said that the company expects mid-teens revenues growth in FY 2015 with over 20% EBIDTA margins. Cipla's EBIDTA margin stood at 19.9% in Q1 June 2014.
Cipla aspires to record revenues of $5 billion by 2020.
Tata Motors advanced 4.22%. The company after market hours on Thursday, 14 August 2014, said that its global wholesales declined 8.46% at 80,151 units in July 2014 over July 2013. Global wholesales rose 5.98% at 80,151 units in July 2014 over June 2014.
Tata Power Company (TPC) rose 1.65% after the state electricity regulator Maharashtra Electricity Regulatory Commission (MERC) granted 25 years distribution licence to Tata Power for supplying power in Mumbai city and suburban areas. MERC reportedly allowed TPC to supply electricity in Mumbai city, parts of suburban areas including Bandra to Dahisar in Western suburbs; Chunabhatti to Vikhroli and Mankhurd in Eastern suburbs for 25 years. It has also been granted licence to supply electricity in areas of Mira-Bhayander Municipal Corporation, Chene and Versova which were earlier not a part of its licence area.
Bank stocks rose after Prime Minister Narendra Modi announced a new financial scheme to help the poor open bank accounts. Among PSU bank stocks, State Bank of India (SBI) (up 2.51%), Canara Bank (up 2.2%), Union Bank of India (up 3.75%), Bank of India (up 2.01%), Punjab National Bank (up 1.03%) Andhra Bank (up 1.98%), Oriental Bank of Commerce (up 4.51%) gained.
Among private sector banks, ICICI Bank (up 3.75%), HDFC Bank (up 0.88%), IndusInd Bank (up 0.49%), Yes Bank (up 3.56%), Federal Bank (up 3.94%), Kotak Mahindra Bank (up 1.6%) and Axis Bank (up 4.47%), gained.
Prime Minister Narendra Modi on the ocassion of Independence Day on Friday, 15 August 2014, launched 'Pradhan Mantri Jan Dhan Yojana' to help the poor open bank accounts, which will come with the facility of a debit card and an insurance cover of Rs 1 lakh. Observing that people have mobile phones but not bank accounts, Modi said, the scheme will help in bringing the benefits of formal banking system to them.
Under the Jan Dhan Yojana, Modi said that the person who will open bank account will get a debit card and the family will get Rs 1 lakh insurance cover. This will help the family to tide over the unforeseen eventuality.
Shares of PSU OMCs rose as crude oil futures declined. HPCL gained 6.28%.
BPCL jumped 5.52% to Rs 647 after hitting record high of Rs 658.10 in intraday trade.
Indian Oil Corporation (IOC) rose 4.1%. With respect to a news item captioned "Indian Oil Corporation to invest Rs 8700 crores in Mathura Refinery Expansion Project", the company clarified during market hours that the matter is in preliminary stage and has not been conceptualized. The Uttar Pradesh (UP) state government is looking for promoting industrial development in UP and Indian Oil has evinced interest for expansion of its Mathura Refinery, provided the UP state government agrees to give financial/tax incentives to support the viability of the project. A further view in the matter would be taken only after getting response from the UP government, IOC said.
Lower crude oil prices will reduce under-recovery of public sector oil marketing companies (PSU OMCs) on domestic sales of diesel, kerosene and LPG at government controlled prices. The government has adopted the policy of gradually increasing diesel prices to eliminate under recovery and deregulate the diesel prices. The government has already freed pricing of petrol.
State run upstream oil and gas companies rose on hopes of a fall in subsidy sharing burden as crude oil prices dropped. ONGC (up 4.84%), GAIL (India) (up 1.2%) and Oil India (up 2.43%) gained. State run upstream oil and gas companies share a part of the under recovery or revenue loss of state-run oil marketing companies (PSU OMCs) by allowing discount in the prices of crude oil, PSD kerosene, and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum and Natural Gas and the Petroleum Planning and Analysis Cell.
Capital goods stocks gained. ABB (India) (up 0.03%), Bharat Heavy Electricals (Bhel) (up 3.93%), BEML (up 5%), L&T (up 2.39%), Crompton Greaves (up 3.29%) and Siemens (up 0.44%) gained.
Most IT stocks declined. Infosys (down 1.13%), HCL Technologies (down 0.68%) fell. Tech Mahindra rose 2.44%. Wipro was unchanged at Rs 545.70.
TCS shed 0.66%. TCS during market hours said announced that it would finance hygienic sanitation facilities for girl students across 10,000 schools in the country to help India harness its demographic dividend and support Prime Minister Narendra Modi's Clean India campaign that was announced on the occasion of India's Independence Day. TCS said the company will earmark a budget of Rs 100 crore to be spent on this initiative. This significant investment in school sanitation will help children, especially girl students, to participate in school education for a longer period of time and play a larger economic role in their communities.
Cement stocks were in demand on renewed buying. Ambuja Cements (up 1.33%), ACC (up 2.06%), UltraTech Cement (up 1.09%) and Shree Cement (up 2%) gained.
Grasim Industries was up 0.06% at Rs 3,331.10. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Birla Corporation surged 11.03% to Rs 591.30 after scaling a record high of Rs 595.70 in intraday trade.
Telecom stocks were in demand on renewed buying. Bharti Airtel (up 3%), MTNL (up 3.07%), Tata Teleservices (Maharashtra) (up 4.86%) gained.
Reliance Communications gained 1.95%. The stock was volatile. The stock hit high of Rs 123.90 and low of Rs 118.30. The company's consolidated net profit rose 21.4% to Rs 132 crore on 2.1% growth in revenue to Rs 5523 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Thursday, 14 August 2014.
RCom's total EBITDA rose 9.5% to Rs 1863 crore in Q1 June 2014 over Q1 June 2013. EBITDA margin stood at 33.7% in Q1 June 2014, amongst the highest in the industry, with strong contribution from both India and Global businesses, RCom said in a statement.
Revenue from India operations rose 1.3% to Rs 4718 crore in Q1 June 2014 over Q1 June 2013. EBITDA of India operations rose 16% to Rs 1693 crore in Q1 June 2014 over Q1 June 2013. Revenue from Global operations declined 5.1% to Rs 1073 crore in Q1 June 2014 over Q1 June 2013.
RCom generated operational cash flow (EBITDA) of Rs 1863 crore in Q1 June 2014, paid net finance charges of Rs 767 crore and invested Rs 415 crore on capex during the quarter. The company remains free cash flow (FCF) positive and this is expected to continue, RCom said in a statement.
Idea Cellular gained 2.43% to Rs 160.50. The stock saw high volume of 1.32 crore shares on NSE on account of a large bulk deal.
Realty stocks extended Thursday's gains triggered by the latest data showing inflation based on wholesale price index (WPI) eased in July. Purchases of both residential and commercial property are largely driven by finance. DLF (up 0.81%), Sobha Developers (up 5.85%), Indiabulls Real Estate (up 4.14%), Parsvnath Developers (up 1.79%), Unitech (up 0.44%, Housing Development and Infrastructure (up 5.04%), D B Realty (up 1.23%) and Godrej Properties (up 0.61%) gained.
SpiceJet jumped 12.94% after the company said it achieved an operating profit of Rs 9 crore in Q1 June 2014. SpiceJet achieved an operating profit of Rs 9 crore in Q1 June 2014 (not considering restructuring and certain one-off costs described below) despite an adverse year-over-year impact on expenses of fuel price and foreign exchange rate of Rs 106 crore.
SpiceJet reported net loss of Rs 124.10 crore in Q1 June 2014 as against net profit of Rs 50.56 crore in Q1 June 2013. Net sales declined 0.59% to Rs 1678.59 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Thursday, 14 August 2014.
SpiceJet attributed positive operating performance to the positive impact of SpiceJet's new restructured network and schedule, its investments in brand, marketing, and customer experience, its ongoing cost reduction efforts, and importantly, to its active approach to demand generation via market stimulation through innovative pricing and revenue management.
During the quarter, SpiceJet incurred restructuring and certain one-off costs consisting of Rs 133 crore relating to restructuring of the network and fleet along with capacity rationalization that required early aircraft lease terminations and associated expenses for four aircraft, as well as additional interest and funding costs driven by unprecedented carry-forward losses from the previous fiscal.
Amara Raja Batteries galloped 7.29% to Rs 577.40. The stock hit a record high of Rs 597 in intraday today, 18 August 2014.
India's macroeconomic worries have eased on falling crude oil prices. India imports about 80% of its crude oil requirement. Brent crude oil futures fell below $103 a barrel on Monday as Libya increased its oil output and as worries over supply from key producer Iraq eased. The October Brent crude contract was off $1.25 at $102.28 a barrel. The contract rose $1.52 a barrel to settle at $103.53 on Friday, 15 August 2014.
The market sentiment was boosted by data showing that foreign portfolio investors (FPIs) were net buyers of Indian stocks on Thursday, 14 August 2014. FPIs bought shares worth a net Rs 625.18 crore on Thursday, 14 August 2014, as per provisional data from the stock exchanges.
Key benchmark indices rose for the fifth-day in a row today, 18 August 2014. From a recent low of 25,329.14 on 8 August 2014, the Sensex has gained 1,061.82 points or 4.19% in five trading sessions. The Sensex has gained 495.99 points or 1.91% in this month so far (till 18 August 2014). The Sensex has gained 5,220.28 points or 24.65% in calendar year 2014 so far (till 18 August 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 8,942.25 points or 51.24%.
In his Independence Day address to the nation from the ramparts of the Red Fort, Prime Minister Narendra Modi on Friday, 15 August 2014, emphasized the need for better governance. After becoming the country's Prime Minister in May this year, Modi said he had observed that there was disunity and conflict among different government departments. Modi said he has started making efforts at making the Central government function as an organic unity moving in one direction.
The Prime Minister stressed on the need to promote the manufacturing sector. He has invited manufacturers from across the world to start manufacturing in India, and help boost India's industrial growth. He also called upon the youth of India to unleash their entrepreneurial spirit and work towards manufacturing in India, the various items that add to the country's import bill. Let "Made in India" become a synonym of excellence, he added. Modi also announced that a new institution would be created to replace the Planning Commission. This new institution would respect the federal structure of the country, he asserted.
In a major new scheme to universalize banking access and financial inclusion, the Prime Minister announced the Pradhanmantri Jan-Dhan Yojana which will provide for a bank account, a debit card and an insurance amount of Rs 1 lakh to poor families.
The Prime Minister said development and good governance are the only two tracks which could take the nation forward.
At a function at Solapur in Maharashtra, the Prime Minister on 16 August 2014 outlined a comprehensive vision for new modes of infrastructure development in the country, which would include nationwide connectivity networks of roads, power transmission lines, gas grids and water grids. He asserted that roads and highways development will be given priority by the new Government, drawing inspiration from the Golden Quadrilateral and Pradhan Mantri Gram Sadak Yojana launched by former Prime Minister Atal Bihari Vajpayee. The Prime Minister said the Government is concerned at the large number of stalled SEZ projects across the country, and a high-level team has been constituted to review the problems and resolve them at the earliest. He added that his Government wishes to create an environment for ease of business, and encouragement for youth. Elaborating his theme of Come, make in India, which he mentioned during his Independence Day address, the Prime Minister said his Government will encourage foreign investment in shipbuilding.
European stocks advanced today, 18 August 2014, on signs of easing geopolitical tensions in Ukraine. Key benchmark indices in UK, Germany and France were up 0.64% to 1.44%.
Over the weekend, foreign ministers from Germany, Russia, Ukraine and France reportedly met outside Berlin in a session billed as a prelude to cease-fire talks.
Asian stocks were mixed on Monday, 18 August 2014. Key benchmark indices in South Korea, Taiwan, and Singapore were off 0.06% to 0.71%. Key benchmark indices in China, Japan and Indonesia were up 0.03% to 0.57%. Hong Kong's Hang Seng was flat.
China's foreign-direct investment slumped 17% in July from a year earlier, the Ministry of Commerce said today, 18 August 2014. Another data showed that China's new-home prices fell in July in almost all cities that the government tracks.
Trading in US index futures indicated that the Dow could gain 78 points at the opening bell on Monday, 18 August 2014. Most US stocks ended lower on Friday, 15 August 2014, as increasing violence in Ukraine sent oil prices to the biggest increase in a month.
Global markets will be focused on the Aug. 21-23 annual meeting of top central bankers at Jackson Hole, Wyoming, for possible clues about the path for monetary policy in the months ahead.
Powered by Capital Market - Live News