Stocks logged modest gains on steady buying in index pivotals ICICI Bank, State Bank of India and Reliance Industries. The barometer index, the S&P BSE Sensex, rose 157.55 points or 0.42% to settle at 37,494.40. The Nifty 50 index rose 41.20 points or 0.37% to settle at 11,319.55. Both the Sensex and the Nifty hit record high on intraday as well as closing basis.
The market opened higher and hit fresh intraday high in early trade. Indices sharply pared gains and were trading near flat line in morning trade. Indices bounced back after hitting fresh intraday low in mid-morning trade. Indices firmed up in early afternoon trade and hit fresh intraday high in late trade.
The Sensex rose 157.55 points or 0.42% to settle at 37,494.40, a record closing high. The Sensex rose 196.65 points, or 0.53% at the day's high of 37,533.50 in late trade, its record high level. The index fell 44.40 points, or 0.12% at the day's low of 37,292.45 in mid-morning trade.
The Nifty 50 index rose 41.20 points or 0.37% to settle at 11,319.55, a record closing high. The Nifty rose 49.75 points, or 0.44% at the day's high of 11,328.10 in late trade, its record high level. The index fell 16.90 points, or 0.15% at the day's low of 11,261.45 in mid-morning trade.
Among secondary barometers, the BSE Mid-Cap index rose 0.3%, underperforming the Sensex. The BSE Small-Cap index was up 0.55%, outperforming the Sensex.
The market breadth, indicating the overall health of the market, was strong. On BSE, 1615 shares rose and 1038 shares fell. A total of 193 shares were unchanged.
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Among the sectoral indices on BSE, the S&P BSE Bankex (up 1.3%), the S&P BSE Power index (up 1.18%), the S&P BSE Oil & Gas index (up 0.76%) outperformed the Sensex. The S&P BSE IT index (down 0.73%), the S&P BSE Teck index (down 0.25%), the S&P BSE Capital Goods index (down 0.22%) underperformed the Sensex.
Bharti Airtel (up 5.13%), Axis Bank (up 2.67%), and Vedanta (up 2.25%) edged higher from the Sensex pack.
Infosys (down 1.56%), HDFC Bank (down 1.41%) and L&T (down 1.19%), edged lower from the Sensex pack.
Index heavyweight Reliance Industries rose 1.78% after consolidated net profit rose 4.47% to Rs 9485 crore on 50.58% rise in total income to Rs 130544 crore in Q1 June 2018 over Q1 June 2017. The result was announced after market hours on Friday, 27 July 2018.
Exports (including deemed exports) from RIL's India operations were higher by 41.5% at Rs 52501 crore ($ 7.7 billion) as against Rs 37111 crore in the corresponding period of the previous year due to higher volumes and product prices in petrochemical business and higher realization in refining business. Operating profit before other income and depreciation increased by 64.6% to Rs 20661 crore ($3 billion) from Rs 12554 crore in the corresponding period of the previous year. Record operating performance was led by 33% volume growth and significant margin improvement in petrochemicals business. Exponential growth in Retail and Digital Services businesses also contributed significantly to higher operating profits. The capital expenditure for the quarter ended 30 June 2018 was Rs 33267 crore ($ 4.9 billion) including exchange rate difference.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said financial results of Q1 June 2018 underscore the strength of the petrochemicals reinforced over the last investment cycle. Petrochemicals business generated record EBITDA with strong volumes and an upswing in polyester chain margins. Refining business performance remained steady despite the seasonal weakness in cracks. Continuing strength in global demand for oil products and implementation of more stringent environmental norms for marine fuels augurs well for refining business.
ICICI Bank gained 4.76% after the bank declared Q1 result after market hours on Friday, 27 July 2018. ICICI Bank reported net loss to Rs 119.55 crore in Q1 June 2018 as compared to net profit of Rs 2049 crore in Q1 June 2017. Total income rose 10.25% to Rs 18574.17 crore in Q1 June 2018 over Q1 June 2017.
The core operating profit (profit before provisions and tax, excluding treasury income) grew by 17% year-on-year to Rs 5042 crore in Q1 June 2018 over Q1 June 2017. Net interest income was Rs 6102 crore Q1 June 2018 compared to Rs 5590 crore in Q1 June 2017. Overall net interest margin was 3.19% in Q1 June 2018 compared to 3.23% in Q1 June 2017. The net NPA ratio decreased from 4.77% at 31 March 2018 to 4.19% at 30 June 2018. The bank's total capital adequacy at 30 June 2018 as per Reserve Bank of India's guidelines on Basel III norms was 18.35% and Tier-1 capital adequacy was 15.84% compared to the regulatory requirements of 11.03% and 9.03% respectively.
State Bank of India rose 3.75% to Rs 297.35.
Index heavyweight and housing finance major HDFC fell 0.80%. Net profit rose 53.74% to Rs 2190 crore on 20.05% increase in total income to Rs 9951.98 crore in Q1 June 2018 over Q1 June 2017. The announcement was made during trading hours today, 30 July 2018.
The company said its board approved issuing secured redeemable non-convertible debentures (NCD) aggregating to Rs 35000 crore on a private placement basis. The board also approved raising of External Commercial Borrowing (ECB) up to $1.5 billion equivalent from financial institutions, banks, multilateral financial agencies, mutual funds, body corporate, firms, association of persons or such other entities, subject to approval of the Reserve Bank of India.
Mahindra & Mahindra (M&M) rose 2.52%. The company announced during trading hours today, 30 July 2018, that it plans to increase prices of its passenger vehicles by up to Rs 30,000 or 2%. This will be effective August 2018.
NTPC rose 0.55% after the company declared its Q1 result on Saturday, 27 July 2018. NTPC reported 1.15% fall in net profit to Rs 2588.14 crore on 11% rise in total income to Rs 23000.09 crore in Q1 June 2018 over Q1 June 2017. The company's board of directors considered and approved the issue of secured/ unsecured, redeemable, taxable/ tax-free, cumulative/ non-cumulative, non-convertible debentures ('Bonds/NCDs') upto Rs 12000 crore during the period commencing from the date of passing of Special Resolution in the ensuing Annual General Meeting till completion of one year thereof or the date of next Annual General Meeting in the financial year 2019-20 whichever is earlier. NTPC is India's largest energy conglomerate with presence in the entire value chain of the power generation business.
HCL Technologies fell 1.71%. On a consolidated basis, HCL Technologies reported 9.01% rise in net profit to Rs 2431 crore on 5.36% rise in total income to Rs 14,203 crore in Q1 June 2018 over Q4 March 2018. The result was announced after market hours on Friday, 27 July 2018.
Aurobindo Pharma rose 2%. The company announced during trading hours today, 30 July 2018, that it received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Bivalirudin injection, 250 mg/vial. The approved ANDA is a generic equivalent to the reference listed drug (RLD) product Angiomax Injection of The Medicines Company. The estimated market size of Bivalirudin injection is US$ 101 million for the twelve months ended May 2018 according to IQVIA. The product will be launched in September 2018.
Lupin rose 0.61%. The company announced during trading hours today, 30 July 2018, that it has received EDQM Attestation of Inspection from EDQM (European Directorate for the Quality of Medicines) for its Mandideep facility. The unit was inspected by EDQM during March 2018. The inspection was focused on the Application for Certificate of Suitability for the dossier of Cefaclor along with facility inspection for Quality Management Systems based on cGMP as laid under European Union rules governing Medicinal products.
Shares of TCNS Clothing Co. settled at Rs 657.80 on BSE, a discount of 8.13% over the issue price of Rs 716 on its debut on the bourses today, 30 July 2018. The stock listed at Rs 715 on the BSE, a discount of 0.13% from the issue price of Rs 716. The stock had hit a high of Rs 724.50 and low of Rs 626.60 during the day.
Investors turned their focus to central bank policy meeting later this week. The Reserve Bank of India's (RBI)'s Monetary Policy Committee (MPC) will meet on 31 July and 1 August 2018 for the third bi-monthly monetary policy statement for 2018-2019. The resolution of the MPC will be unveiled at 14:30 IST on 1 August 2018. RBI raised its benchmark policy repo rate by 0.25% to 6.25% in its second bi-monthly monetary policy for 2018-2019 on 6 June 2018.
Overseas, European stocks fell as a drop in metal prices weighed on mining companies and investors awaited critical monetary policy decisions this week. Asian stocks declined as markets took cues from declines in Wall Street's last session, with focus this week shifting to the Bank of Japan.
The Bank of Japan (BoJ) will declare its interest rate decision on Tuesday, 31 July 2018. BoJ left its key short-term interest rate unchanged at -0.1% at its June 2018 meeting.
US stocks closed lower Friday, 27 July 2018, following disappointing results from Twitter Inc. and bellwethers, including Exxon and Intel.
US second-quarter GDP grew at 4.1%, with a jump in consumer spending and business investment contributing to the figure. That was the quickest pace of growth since 2014. Separately, consumer sentiment fell to a six-month low in July, the University of Michigan said.
Meanwhile, the Federal Reserve's Federal Open Market Committee will embark on its two-day meeting on Tuesday, with the central bank expected to announce its decision during Wednesday, 1 August 2018, US hours.
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