Telecom stocks and index heavyweight Reliance Industries (RIL) led rally on the bourses as key benchmark indices extended intraday gains in late trade. The barometer index, the S&P BSE Sensex, moved past the 26,000 level. The Sensex and the 50-unit CNX Nifty, both, hit two-week high. The Sensex was provisionally up 313.30 points or 1.22%, up close to 250 points from the day's low and off about 20 points from the day's high. Gains for the key benchmark indices were driven by upmove in Asian and European stocks. Asian and European stocks rose as investors shrugged off geopolitical tension in Ukraine and the Middle East. However, the board market lacked strength. The market breadth indicating the overall health of the market turned negative from positive in late trade. The Small-Cap index was almost unchanged for the day and BSE Mid-Cap index was up just a tad.
Reliance Industries (RIL) extended Monday's gains triggered by the company's strong Q1 result. IT stocks gained on renewed buying. Tech Mahindra rose after the company announced its plans to significantly expand in Korea. Asian Paints rose on good Q1 result. Telecom stocks rose after the Telecom Regulatory Authority of India (TRAI) said on Monday, 21 July 2014, in its recommendations on the guidelines on sharing of spectrum by telecom operators that all access spectrum will be shareable provided that both the licensees are having spectrum in the same band. Idea Cellular jumped after strong Q1 results.
As per provisional figures, the S&P BSE Sensex was up 313.30 points or 1.22% to 26,028.47. The index jumped 335.21 points at the day's high of 26,050.37 in late trade, its highest level since 8 July 2014. The index rose 65.22 points at the day's low of 25,780.39 in early trade.
The CNX Nifty was up 88.30 points or 1.15% to 7,772.50, as per provisional figures. The index hit a high of 7,773.85 in intraday trade, its highest level since 8 July 2014. The index hit a low of 7,704.80 in intraday trade.
The total turnover on BSE amounted to Rs 3017 crore, higher than Rs 2899.45 crore on Monday, 21 July 2014.
The market breadth indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,487 shares fell and 1,475 shares rose. A total of 115 shares were unchanged.
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The BSE Mid-Cap index was up 10.67 points or 0.11% at 9,311.09. The BSE Small-Cap index was down 0.83 points or 0.01% at 10,268.76. Both these indices underperformed the Sensex.
Among the 30-share Sensex pack, 24 stocks gained and rest of them declined.
Telecom stocks rose after the Telecom Regulatory Authority of India (TRAI) said on Monday, 21 July 2014, in its recommendations on the guidelines on sharing of spectrum by telecom operators that all access spectrum will be shareable provided that both the licensees are having spectrum in the same band. Bharti Airtel (up 4.61%), Tata Teleservices (Maharashtra) (up 0.24%) and Reliance Communications (up 3.8%) gained. MTNL declined 1.71%.
If any one of the two licensees sharing spectrum, has administratively assigned spectrum in that band, then after sharing, they will be permitted to provide only those services which can be provided through administratively held spectrum, TRAI said in its guidelines on spectrum sharing. If both the licensees are sharing that spectrum which has either been assigned through an auction in the year 2010 or afterwards, or on which the licensee has already paid the prescribed market value to the government, they can offer services using all those technologies viz. GSM, CDMA, WCDMA, LTE etc, which they can independently provide through their own spectrum holding, TRAI said.
Considering the fact that spectrum sharing results in better spectral efficiency, a portion of additional capacity created needs to be counted for the purpose of applying the prescribed spectrum caps of 25% of total spectrum assigned and 50% in a band. For the limited purpose of applying the prescribed market caps, 50% of the spectrum held by the other licence in the band being shared shall be counted as the additional spectrum being held by the licensee, TRAI said.
Considering the fact that spectrum sharing results in additional quantity of spectrum with both the licensees to serve higher number of consumers, the spectrum usage charge (SUC) rate of each of the licensees post-sharing shall increase by 0.5% of adjusted gross revenue (AGR), according the TRAI guidelines on spectrum sharing. TRAI has said that leasing of spectrum will not be allowed.
Separately, Telecom Regulatory Authority of India (TRAI) on Monday, 21 July 2014, in its response to the Department of Telecommunications (DoT) on additional entry fee, performance bank guarantee (PBG) and financial bank guarantee (FBG) to be charged from the existing Mobile Number Portability licensees for enhancement of scope of their licence, recommended no change in the entry fee for MNP service providers for implementing Full Mobile Number Portability and that the performance bank guarantee and financial bank guarantee for the MNP service providers should be continued as per the existing licence conditions.
Idea Cellular rose 4.54% to Rs 146.10 after the company reported strong Q1 results. The stock hit high of Rs 147.60 and low of Rs 142.65. The company after market hours on Monday, 21 July 2014 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. Earnings before interest, taxation, depreciation and amortization (EBITDA) margin improved to 33.2% in Q1 June 2014 from 31.8% in Q1 June 2013.
Idea Cellular reported 23.47% rise in consolidated net profit to Rs 728.20 crore on 7.34% rise in total revenue to Rs 7560.99 crore in Q1 June 2014 over Q4 March 2014. Idea Cellular's EBITDA margin improved to 33.2% in Q1 June 2014 from 31.8% in Q1 June 2014 and from 31.7% in Q4 March 2014.
With additional capital infusion of Rs 3000 crore from the qualified institutional placement of equity shares in June 2014 and cash profit of Rs 2023 crore in Q1 June 2014, the company has reduced its net debt by Rs 5208.70 crore. The net debt to annualized EBITDA ratio now stands at 1.54, providing the company sufficient headroom to participate in the forthcoming spectrum auction.
Idea Cellular carried 165.2 billion minutes on its network, registering 12.2% growth in Q1 June 2014 over Q1 June 2013 and 32.5 billion Megabytes of Mobile Data on its 2G+3G platform, registering growth of 136% in Q1 June 2014 over Q1 June 2013.
The higher voice rate realization and jump in data contribution to 11.5% of service revenue helped improve 'Average Realisation per Minute' (ARPM) by 1.5 paisa from 43.6p in Q4 March 2014 to 45.1p in Q1 June 2014. The Value Added Services (VAS) contribution has improved sharply to 17.8% of overall service revenue, Idea Cellular said.
Brand Idea continued its subscriber growth momentum with 3.2 million net new customer additions, now servicing 139 million quality base as 'Average Revenue Per User' (ARPU) improved to Rs 181 in Q1 June 2014 from Rs 173 in Q4 March FY14 and MoU/Subscriber increased to 401 minute in Q1 June 2014 from 397 minute in Q4 March 2014.
Average Realisation per MB (ARMB) data rate improvement by 1 paisa to 26.3p in Q1 June 2014 from 25.3p in Q4 March 2014.
The strong consumer demand & brand affinity, expanding network footprint & spectrum portfolio and steady cash flows from operations reaffirms Idea ability to deliver consistent, competitive, responsible and profitable growth. The company is well geared to meet all volatile, uncertain, complex and ambiguous developments and remain on course of its mission to improve its market standing both in Mobile voice and data business, Idea Cellular said.
Asian Paints rose 1.36% to Rs 602 on good Q1 result. The stock hit record high of Rs 610.60 in intraday trade. The company's consolidated net profit rose 23.07% to Rs 338.70 crore on 18.85% increase in total income to Rs 3409.55 crore in Q1 June 2014 over Q1 June 2013. The result was announced during trading hours today, 22 July 2014. The Q1 June 2014 results include consolidated financials of Sleek International, in which the company obtained 51% stake on 8 August 2013. In view of this, the results for the quarter ended 30 June 2014 are not comparable with the corresponding previous period, Asian Paints said.
Reliance Industries (RIL) extended Monday's gains triggered by strong Q1 result. The stock was up 3.37% at Rs 1,031. The stock hit high of Rs 1,034 and low of Rs 1,001.05. 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.
IT stocks gained. TCS (up 2.46%), Infosys (up 1.06%), Wipro (up 2.62%) and HCL Technologies (up 1.39%) gained.
Tech Mahindra rose 1.18%. The company during market hours today, today, 22 July 2014, announced its plans to significantly expand in Korea. The company said it will focus on offering innovative solutions and consultancy services in Korea to customers in manufacturing, auto, aerospace & defense, telecom, oil & gas, BFSI, healthcare, engineering services, device engineering and EBS segments. The company said it will establish partnerships with local universities, business schools and trade bodies to enable creation of 300 jobs in Korea in the next 3 years. The company aspires to be the largest Indian based system integrator in Korea by 2017. The company believes that localisation is the key to achieve the target and plans to run as a local Korean company in partnership with a Korean conglomerate.
Key benchmark indices surged in early trade on firm Asian stocks. Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. Key benchmark indices further extended gains and hit fresh intraday high in mid-morning trade. Firmness continued on the bourses in early afternoon trade. Key benchmark indices extended gains and hit fresh intraday high in afternoon trade. Key benchmark indices trimmed intraday gains in mid-afternoon trade. Key benchmark indices surged and hit fresh intraday high in late trade. The Sensex moved past the 26,000 level in late trade. The Sensex and the 50-unit CNX Nifty, both, hit two-week high.
Indian stocks gained for the sixth day in a row today, 22 July 2014.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.25, compared with its close of 60.295 on Monday, 21 July 2014.
European stocks rose today, 22 July 2014, amid signs that tension over Ukraine's crisis is easing. Key benchmark indices in UK, Germany and France were up by 0.82% to 0.87%.
Asian stocks rose today, 22 July 2014, as investors shrugged off international tension after the downing of a passenger jet in Ukraine on 17 July and fighting between Israel and Palestinian militants in Gaza Strip. Key benchmark indices in Hong Kong, South Korea, China, Indonesia, Japan, and Taiwan rose by 0.19% to 1.69%. Indonesia's Jakarta Composite fell 0.85%.
Trading in US index futures indicated that the Dow could gain 55 points at the opening bell on Tuesday, 22 July 2014. US stocks declined on Monday, 21 July 2014, as investors hit the pause button after Friday's sharp gains.
Russia is facing international pressure after pro-Russian rebels downed Malaysia Airlines flight MH17 in Ukraine on 17 July, killing all 298 people on board. Malaysian Prime Minister Najib Razak said yesterday, 21 July 2014, that the separatists agreed to release the victims' bodies, grant access to the crash site and hand over the two black boxes and data recorders.
As per reports, European Union foreign ministers are set to today, 22 July 2014, approve sanctions against a range of Russian oligarchs.
Meanwhile, in the Middle East, the death toll continues to mount on both sides of the Gaza conflict. Nearly 600 Palestinians and 29 Israelis have died in 14 days of fighting, according to reports.
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