Indian stocks eked out small gains as monsoon rains picked up last week. The key benchmark indices remained in positive zone throughout the day. But, higher level could not be sustained due to weakness in European shares triggered by lingering geopolitical concerns. With small gains, the barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, settled at their highest level in two weeks. The Sensex garnered 73.61 points or 0.29%, off 145.98 points from the day's high and up 37.40 points from the day's low. The market breadth indicating the overall health of the market was positive.
Reliance Industries (RIL) rose on strong Q1 result. Telecom stocks gained. HDFC gained after the housing finance major announced decent Q1 result. HDFC Bank edged lower in volatile trade after the bank reported good Q1 result. Private sector bank stocks gained, with Axis Bank scaling record high. PSU bank stocks declined. Among pharma shares, Sun Pharmaceutical Industries scaled record high. Shares of shipping companies edged higher after the Ministry of Shipping said that lifetime licences will be issued to Indian ships instead of such licences being renewed every year as of now.
The S&P BSE Sensex garnered 73.61 points or 0.29% to settle at 25,715.17, its highest closing level since 7 July 2014. The index surged 219.59 points at the day's high of 25,861.15 in morning trade. The index rose 36.15 points at the day's low of 25,677.77 in late trade.
The CNX Nifty garnered 20.30 points or 0.26% to settle at 7,684.20, its highest closing level since 7 July 2014. The index hit a high of 7,722.10 in intraday trade. The index hit a low of 7,674 in intraday trade.
The total turnover on BSE amounted to Rs 2885 crore, lower than Rs 3015.80 crore on Friday 18 July 2014.
The market breadth indicating the overall health of the market was positive. On BSE, 1,721 shares rose and 1,244 shares fell. A total of 104 shares were unchanged.
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The BSE Mid-Cap index garnered 47.62 points or 0.51% to settle at 9,300.42. The BSE Small-Cap index garnered 88.75 points or 0.87% to settle at 10,269.59. Both these indices outperformed the Sensex.
The S&P BSE FMCG index (up 1.11%), the S&P BSE Oil & Gas index (up 0.55%), the S&P BSE Consumer Durables index (up 0.28%) and the S&P BSE Healthcare index (up 0.21%) outperformed the Sensex.
The S&P BSE Teck index (down 0.07%), the S&P BSE Bankex (down 0.11%), the S&P BSE Auto index (down 0.15%), the S&P BSE IT index (down 0.27%), the S&P BSE Metal index (down 0.37%), the S&P BSE Power index (down 0.57%), the S&P BSE Realty index (down 0.97%) and the S&P BSE Capital Goods index (down 1.01%) underperformed the Sensex.
Index heavyweight and cigarette maker ITC rose 1.35% to Rs 348.80. The stock hit high of Rs 348.95 and low of Rs 344.45.
Reliance Industries (RIL) rose on strong Q1 result. The stock rose 2.07% at Rs 996.95. The stock hit high of Rs 1,007.75 and low of Rs 995. The company announced on Saturday, 19 July 2014, that its consolidated net profit rose 13.7% to Rs 5957 crore on 7.2% growth in revenue to Rs 1.07 lakh crore in Q1 June 2014 over Q1 June 2013. RIL's gross refining margin stood at $8.7 per barrel in Q1 June 2014 as against $8.4 per barrel in Q1 June 2013 and $9.3 per barrel in Q4 March 2014.
RIL attributed the increase in top line during the quarter to higher prices. Operating profit before other income and depreciation rose 14.4% to Rs 8989 crore in Q1 June 2014 over Q1 June 2013, due to higher contribution from refinery, petrochemicals and oil and gas business, RIL said in a statement.
RIL's other income declined 17.47% to Rs 1974 crore in Q1 June 2014 over Q1 June 2013.
RIL's outstanding debt as on 30 June 2014 was at Rs 135769 crore as against Rs 138761 crore as on 31 March 2014. The company had cash and cash equivalents of Rs 81559 crore. These were in bank deposits, mutual funds, CDs and Government securities/bonds, RIL said in a statement.
The net addition to fixed assets for the quarter ended 30 June 2014 was Rs 15206 crore ($ 2.5 billion) including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej and Hazira, Broadband Access and US Shale gas projects.
ONGC dropped 1.13%. The company said during market hours that the preparation of plugging the leak is in progress after a gas flow was observed from the outermost casing annulus when drilling rig Sagar Uday was operating at NS platform in Mumbai High North well during early morning on Saturday, 19 July 2014. The operations have been stopped for safety reasons. A total of forty eight persons have been evacuated to nearby installations. The crisis management team (CMT) of ONGC is on site. International expert from Boots & Coots has been mobilised, the company added.
Sun Pharmaceutical Industries rose 0.59% to Rs 745.60 after hitting record high of Rs 753.65 in intraday trade.
Hindalco Industries shed 0.84%. Hindalco Industries' board of directors at its meeting held on Friday, 18 July 2014, approved raising of funds for an amount not exceeding Rs 5000 crore through issuance of securities including equity shares or equity linked securities, including through a qualified institutions placement and/or issuance of equity shares through convertible bonds, depository receipts and/or any other instrument convertible or exchangeable into equity shares, and/or other securities with or without warrants, to eligible investors subject to the approval of the shareholders of the company. The company has called a meeting of the shareholders of the company on 14 August 2014 to approve the aforesaid.
UltraTech Cement shed 1.03% after the company reported weak Q1 result. The company's consolidated net profit fell 5.9% to Rs 626.92 crore on 14.65% rise in total income to Rs 6247.33 crore in Q1 June 2014 over Q1 June 2013. The result was announced on Saturday, 19 July 2014
The results for Q1 June 2014 include those of the Gujarat units of Jaypee Cement Corporation from 12 June 2014, and are therefore not strictly comparable with the previous years figures, UltraTech Cement said in a statement.
UltraTech Cement said that the company's on-going capex are on track. The total power capacity of the company (including WHRS) currently stands at 709 MW. This caters to around 80% of the company's power requirement, the company said in a statement.
UltraTech Cement said that cement demand is slated to grow around 7-8%, with expected double digit growth in the second half of the current fiscal. The key value drivers will be renewed government focus on housing and infrastructure spending, the company said in a statement.
HDFC rose 2.44% to Rs 1,005 after the housing loan major reported decent Q1 result. The stock hit high of Rs 1,015.75 and low of Rs 986.85. The company's net profit rose 14.62% to Rs 1344.66 crore on 16.1% growth in total income to Rs 6461.24 crore in Q1 June 2014 over Q1 June 2013.
HDFC's tax outgo for Q1 June 2014 includes deferred tax liability of Rs 74.44 crore in respect of balance in the Special Reserve created under section 36(1)(viii) of the Income Tax Act, 1961.
There was depreciation write back of Rs 6.58 crore (net) in Q1 June 2014, as against depreciation outgo of Rs 5.54 crore in Q1 June 2013. HDFC said that a change in deprecation policy with effect from 1 April 2014 has resulted in depreciation charge being lower by Rs 14.59 crore in Q1 June 2014, compared to the method used earlier.
HDFC's loan book stood at Rs 2.03 lakh crore as on 30 June 2014, compared with Rs 1.76 lakh crore as on 30 June 2013.
HDFC's consolidated net profit rose 9.71% to Rs 1872.90 crore on 18.54% rise in total income to Rs 10056.07 crore in Q1 June 2014 over Q1 June 2013. The company announced Q1 result during market hours.
In consolidated accounts, there was depreciation write back of Rs 4.46 crore (net) in Q1 June 2014, as against depreciation outgo of Rs 9.01 crore in Q1 June 2013. HDFC said that a change in deprecation policy with effect from 1 April 2014 has resulted in depreciation charge being lower by Rs 7.36 crore in Q1 June 2014, compared to the method used earlier.
In consolidated accounts, HDFC's tax outgo for Q1 June 2014 includes deferred tax liability of Rs 78.67 crore in respect of balance in the Special Reserve created under section 36(1)(viii) of the Income Tax Act, 1961.
Bank stocks were mixed with shares of state-run banks declining and private sector banks gaining. Among PSU bank stocks, State Bank of India (SBI) (down 1.65%), Union Bank of India (down 0.95%), Bank of India (down 1.19%), Bank of Baroda (down 0.54%) and Punjab National Bank (down 0.36%) declined.
Canara Bank fell 3.29%. The bank reported 1.86% rise in net profit to Rs 806.86 crore on 11.61% rise in total income to Rs 11728.01 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced during market hours today, 21 July 2014.
Canara Bank's provisions and contingencies fell 13.97% to Rs 788.14 crore in Q1 June 2014 over Q1 June 2013.
Canara Bank's ratio of net non-performing assets (NPA) to net advances stood at 2.03% as on 30 June 2014, higher than 1.98% as on 31 March 2014 but lower than 2.48% as on 30 June 2013.
The bank's ratio of gross NPA to gross advances stood at 2.67% as on 30 June 2014, compared with 2.49% as on 31 March 2014 and 2.91% as on 30 June 2013.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 10.23% as on 30 June 2014 as against 10.63% as on 31 March 2014.
Among private sector banks, ICICI Bank (up 0.39%), IndusInd Bank (up 3.39%) and Yes Bank (up 0.61%) gained.
HDFC Bank fell 0.76% to Rs 826.10 in volatile trade after the bank reported good Q1 result. The stock hit high of Rs 846.65 and low of Rs 825.80. The bank's net profit rose 21.1% to Rs 2233.04 crore on 12.78% rise in total income to Rs 13070.65 crore in Q1 June 2014 over Q1 June 2013. The bank announced Q1 result during market hours.
HDFC Bank's net interest margin stood at 4.4% in Q1 June 2014, same as in Q4 March 2014, but lower than 4.6% in Q1 June 2013.
As on 30 June 2014, current and savings account (CASA) deposits were 43% of the bank's total deposits.
Gross non-performing assets (NPAs) were at 1.07% of gross advances as on 30 June 2014, a tad higher than 1.04% as on 30 June 2013. Net NPAs were 0.3% of net advances as on 30 June 2014, with the percentage remaining the same from as on 30 June 2013. Total restructured loans (including applications under process of restructuring) were at 0.2% of gross advances as on 30 June 2014, with the percentage remaining the same from as on 30 June 2013.
HDFC Bank after market hours clarified that there is no proposal for the merger of HDFC Bank and HDFC after media reports suggested that there is a buzz of a possible merger between the two.
Axis Bank rose 1.1% to Rs 2,018 after hitting record high of Rs 2,037.55 in intraday trade.
Federal Bank slipped 0.68% to Rs 125. A bulk deal of 10 lakh shares was executed on the Federal Bank scrip at Rs 127 per share at 09:55 IST on BSE. Another bulk deal of 9.91 lakh shares was executed on the scrip at Rs 127.25 per share at 11:47 IST on BSE today, 21 July 2014. The two bulk deals saw 0.23% equity of Federal Bank changing hands on BSE today, 21 July 2014.
Kotak Mahindra Bank rose 0.47% after the bank said before market hours that the bank on 20 July 2014 has entered into a Share Purchase Agreement to purchase 76.49 lakh shares aggregating to 15% equity stake in Multi Commodity Exchange of India MCX (India), from Financial Technologies (India), for a consideration of Rs 459 crore. The final closing is subject to certain conditions to be fulfilled including regulatory approvals.
Shares of MCX surged 7.85% to Rs 848 after hitting 52-week high of Rs 895 in intraday trade. Financial Technologies (India) rose 2.11%.
After the latest stake sale, FTIL's shareholding in MCX will come down to 5%, which is under lock-in till 7 March 2015. In a statement, FTIL said it will continue with its divestment of process to sell the balance 5% stake in MCX subject to receipt of binding bids and regulatory and other approvals.
Telecom stocks gained. Bharti Airtel (up 0.38%), MTNL (up 6.36%) and Reliance Communications (up 0.5%) gained. Tata Teleservices (Maharashtra) declined 0.79%.
Idea Cellular rose 1.08%. Idea Cellular after market hours reported 57.37% rise in consolidated net profit to Rs 728.20 crore on 15.63% rise in total revenue to Rs 7560.99 crore in Q1 June 2014 over Q1 June 2013.
Reliance Infrastructure slipped 0.22%. The company's consolidated net profit rose 10% to Rs 458 crore on 20.84% decline in total income to Rs 4548 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced after market hours on Friday, 18 July 2014. As on 30 June 2014, the consolidated networth of the company stood at Rs 27574 crore and the company is conservatively financed with debt equity ratio of 0.94:1, Reliance Infrastructure said.
Shares of shipping companies also gained. Shipping Corporation of India (up 1.11%), Varun Shipping Company (up 3.65%), Great Eastern Shipping Company (up 1.58%) and Mercator Lines (up 3.9%) rose.
In a significant step announced on Sunday, 20 July 2014,, the Ministry of Shipping has decided that life time licences will be issued to Indian Ships and any other ship charted by an Indian citizen or an Indian company instead of such licences being renewed every year as of now. Such licences will be issued with a life time fee instead of annual fee but the licence will be co-terminus with the certificate of registry of the ship. The decision will be of immense help to the sea going Indian and other vessels engaged in coastal trading as the process is decentralised and liberalised, the Ministry of Shipping said. Ship operators now need not undertake the exercise of taking the licence every year.
The decision approved by the Minster for Road Transport and Highways and Shipping Nitin Gadkari also provides for all the five Registrars of Ships at Mumbai, Chennai, Kolkatta, Goa and Cochin to issue such licenses under the provisions of the Merchant Shipping Act, 1958. A ship is registered by the Principal Officers of Mercantile Marine Departments (MMD) of the DG (Shipping) who are designated Registrars of Ships by the DG (Shipping). They would now get powers to issue life time licences also.
Key benchmark indices surged in early trade as firmness in Asian stocks, provisional data showing buying by foreign portfolio investors during the previous trading session and improvement in rainfall last week boosted sentiment. Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. The Sensex and the 50-unt CNX Nifty, both, hit 1-1/2-week high. A bout of volatility was witnessed as key benchmark indices trimmed gains in mid-morning trade. Key benchmark indices hovered in positive terrain albeit near intraday low in early afternoon trade. A bout of volatility was witnessed as key benchmark indices recovered from lower level after trimming intraday gains in mid-afternoon trade. Key benchmark indices once again pared intraday gains in late trade.
The Sensex gained for the fifth day in a row today, 21 July 2014. From a recent low of 25,006.98 on 14 July 2014, the Sensex has risen 708.19 points or 2.83% in five trading sessions. The Sensex has risen 301.39 points or 1.18% in this month so far (till 21 July 2014). The Sensex has gained 4,544.49 points or 21.46% in calendar year 2014 so far (till 21 July 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 8,266.46 points or 47.37%. From a record high of 26,190.44 on 8 July 2014, the Sensex has fallen 475.27 points or 1.81%.
The market sentiment was boosted by data showing that foreign funds were net buyers of Indian stocks on Friday, 18 July 2014. Foreign portfolio investors (FPIs) bought shares worth a net Rs 575.91 crore from the secondary equity markets on Friday, 18 July 2014, as per the data from the Securities & Exchange Board of India (Sebi).
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 60.3050, compared with its close of 60.275 on Friday, 18 July 2014.
Union Minister of State (MoS) Science and Technology (Independent Charge), Earth Sciences (Independent Charge), MoS in Prime Minister's Office (PMO), Department of Personnel and Training, Atomic Energy, Space and Earth Sciences, Dr. Jitendra Singh said on Sunday, 20 July 2014, that there has been significant increase in the monsoon during the last one week beginning from 13 July 2014. While during the month of June and first two weeks of July, the monsoon was deficient by 43%, in the week beginning 13 July 2014, the deficiency was 32%, thus, recording an improvement of 11% in the monsoon level.
The monsoon forecast for next two weeks is also good, particularly in Central India and coastal regions of South India. There is, therefore, no reason to be unnecessarily alarmist on the issue of monsoon, Dr. Singh said. From 1 August onwards, he said, the meteorological predictions indicate active rainfall in the country.
Rains are vital to India's farm sector, which accounts for about 14% of the country's nearly $2 trillion economy. Two-thirds of its 1.2 billion population live in rural areas.
European stocks declined today, 21 July 2014, as investors weighed earnings reports and international tensions after the downing of a passenger jet in Ukraine last week and Israel's offensive in Gaza. Key benchmark indices in UK, Germany and France were down by 0.34% to 0.8%.
Asian stocks were mixed today, 21 July 2014. Key benchmark indices in Hong Kong, South Korea, and China fell 0.05% to 0.29%. Key benchmark indices in Indonesia, Singapore, and Taiwan rose by 0.11% to 0.79%. Japanese markets were shut for a public holiday.
Trading in US index futures indicated that the Dow could fall 36 points at the opening bell on Monday, 21 July 2014. US stocks rose on Friday, 18 July 2014, where better earnings from Google Inc., the world's third-largest company, refocused investors on economic growth amid crises in the Middle East and Ukraine.
Russian President Vladimir Putin is facing intensified international pressure after pro-Russian rebels downed Malaysia Airlines flight MH17 on 17 July 2014, killing 298 people on board.
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