Banking and auto stocks led intraday recovery on the bourses that helped the barometer index, the S&P BSE Sensex, regained the psychological 26,000 level. Although the market breadth indicating the overall health of the market was negative, it improved along with recovery in key indices in late trade. The BSE Mid-Cap index moved into positive zone from negative zone in late trade. The BSE Small-Cap index was almost unchanged for the day after trimming losses in late trade. The Sensex was provisionally up 84.39 points or 0.32% at 26,075.62. Shares of L&T tumbled as growth in the company's net profit in Q1 June 2014 was restricted by a onetime loss of about Rs 942.14 crore at PBIT level from the hydrocarbon segment. Bank stocks gained. Bharti Airtel surged after reporting strong Q1 results. Pharma majors Lupin and Dr Reddys Laboratories, both, rose after reporting strong Q1 results.
A sudden rebound took key benchmark indices to positive zone from negative zone in mid-afternoon trade. The recovery came shortly after a further decline took both, the Sensex, and the CNX Nifty, to their lowest level in more than a week in afternoon trade. Until early afternoon trade, the key indices had moved in a narrow range in negative zone.
Key benchmark indices snapped two-day losing streak today, 30 July 2014, with the Sensex regaining the 26,000 level within a day of falling below that level on Monday, 28 July 2014. The stock market was closed on Tuesday, 29 July 2014, for a public holiday.
As per provisional figures, the S&P BSE Sensex was up 84.39 points or 0.32% to 26,075.62. The index rose 122.25 points at the day's high of 26,113.48 in late trade. The index lost 141.19 points at the day's low of 25,850.04 in mid-afternoon trade, its lowest level since 22 July 2014.
The CNX Nifty was up 38.55 points or 0.5% to 7,787.25, as per provisional figures. The index hit a high of 7,798.70 in intraday trade. The index hit a low of 7,707.60 in intraday trade, its lowest level since 22 July 2014.
The total turnover on BSE amounted to Rs 3240 crore, higher than Rs 2462.88 crore on Monday, 28 July 2014. Stock markets remained closed on Tuesday, 29 July 2014, on account of Ramzan Id.
The market breadth indicating the overall health of the market was negative. On BSE, 1,492 shares fell and 1,389 shares rose. A total of 121 shares were unchanged.
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The BSE Mid-Cap index was up 38.30 points or 0.42% at 9,177.52, outperforming the Sensex. The BSE Small-Cap index was up 3.88 points or 0.04% at 9,970.52, underperforming the Sensex.
Among the 30-share Sensex pack, 23 stocks advaced and rest of them declined.
Dr Reddy's Laboratories gained 1.92% to Rs 2,819.80 on strong Q1 results. The stock hit high of Rs 1,852 and low of Rs 2,766. The company's consolidated net profit surged 52% to Rs 550.40 crore on 24% growth in revenue to Rs 3517.50 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced during market hours today, 30 July 2014. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 56% to Rs 887.60 crore in Q1 June 2014 over Q1 June 2013. EBITDA margin (as % of sales) surged to 25% in Q1 June 2014, from 20% in Q1 June 2013.
Bank stocks gained. Among private sector banks, ICICI Bank (up 2.65%), IndusInd Bank (up 2.23%), HDFC Bank (up 0.96%), Yes Bank (up 1.39%), Federal Bank (up 0.17%), Kotak Mahindra Bank (up 3.84%) and Axis Bank (up 1.72%), gained.
Among PSU bank stocks, Canara Bank (up 0.74%), Union Bank of India (up 0.75%), Bank of Baroda (up 2.18%) and Punjab National Bank (up 4.17%) gained. State Bank of India (SBI) fell 0.97%.
Engineering and construction major L&T slumped as growth in the company's net profit in Q1 June 2014 was restricted by a onetime loss of about Rs 942.14 crore at PBIT level from the hydrocarbon segment. The stock was off 7.22% at Rs 1,526 The stock hit high of Rs 1,595 and low of Rs 1,513.45. The company's consolidated profit after tax (PAT) jumped 111% to Rs 967 crore on 10% growth in gross revenue to Rs 19123 crore in Q1 June 2014 over Q1 June 2013. The sharp rise in PAT was on the back of divestment gains, L&T said. The recurring PAT jumped 68% to Rs 771 crore in Q1 June 2014 over Q1 June 2013. The growth in PAT, however, was restricted by a onetime loss of about Rs 942.14 crore at PBIT level from the hydrocarbon segment. The company provided for all foreseeable future losses of 5 projects in Middle East region during the quarter. The result hit the market after market hours on Monday, 28 July 2014.
L&T's order intake rose 11% to Rs 33408 crore in Q1 June 2014 over Q1 June 2013. The international order inflow at Rs 14754 crore in Q1 June 2014 grew more than 2 times on year-on-year (YoY) and constituted 44% of the total order inflow during the quarter. The consolidated order book of the group stood at Rs 195392 crore as on 30 June 2014, higher by 13% on YoY basis. International order book constituted 26% of the total order book, L&T said.
L&T said that the domestic market holds large potential, awaiting impetus through policy measures and conducive investment environment. The company expects good prospects in the medium term from revival of core sectors such as infrastructure, power, minerals & metals, defence and oil & gas when the initiatives by the new government at the centre take definitive shape and rigour. The company is confident of sustaining its growth momentum by utilizing the emerging opportunities for which it has positioned itself well, L&T said.
Bharti Airtel jumped 5.12% to Rs 372.50 on strong Q1 results. The stock hit high of Rs 373.90 and low of Rs 358.50. Bharti Airtel's consolidated net profit rose 60.91% to Rs 1108.50 crore on 13.33% increase in total revenue to Rs 22962 crore in Q1 June 2014 over Q1 June 2013. Net profit was boosted by improved operational efficiency and lower forex and derivative losses, the company said in a statement.
Bharti Airtel's consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) jumped 18% to Rs 7720 crore in Q1 June 2014 over Q1 June 2013. The EBITDA margin edged up to 33.6% in Q1 June 2014, from 32.3% in Q1 June 2013. The company's consolidated net debt has reduced to $9.609 billion, resulting in the net debt to EBITDA ratio (LTM) improving to 2.04 times as compared to 2.20 times at the end of the previous quarter.
Mr. Gopal Vittal, MD and CEO, India & South Asia operations of Bharti Airtel said: "The industry awaits more 3G spectrum being made available even as we look forward to the implementation of policies relating to spectrum sharing and trading. These have become essential to deliver sustained broadband growth and high quality service.
In a statement, Mr. Christian de Faria, MD and CEO, of Africa operations of Bharti Airtel said that that the company's investments in licences, networks and marketing in Africa are directed towards sustaining double-digit revenue growth.
The market may remain volatile tomorrow, 31 July 2014, as traders roll over positions in the futures & options (F&O) segment from the near month July 2014 series to August 2014 series. The near-month July 2014 F&O contracts expire tomorrow, 31 July 2014.
In the foreign exchange market, the rupee was slightly higher against the dollar in choppy trade. The partially convertible rupee was hovering at 60.105, compared with its close of 60.14 on Monday, 28 July 2014.
European stocks slipped today, 30 July 2014, as investors weighed corporate earnings, and as the US joined Europe in imposing new sanctions on Russia for its role in the insurgency in Ukraine. Key benchmark indices in France and Germany were down 0.03% to 0.14%. UK's FTSE 100 rose 0.03%.
Asian stocks rose for a fourth day today, 30 July 2014, before the Federal Reserve updates markets on monetary policy later in the global day today, 30 July 2014. Key benchmark indices in Japan, Hong Kong, South Korea, and Taiwan rose by 0.18% to 1%. Key benchmark indices in China and Singapore fell by 0.07% to 0.09%.
Trading in US index futures indicated that the Dow could gain 36 points at the opening bell on Wednesday, 30 July 2014. US stocks fell on Tuesday, 29 July 2014, after US President Barack Obama announced new sanctions against Russia and warned its actions in Ukraine are "setting back decades of progress".
The US sanctioned three Russian banks and a state-owned shipbuilder that serves Russia's navy and oil and gas industry, joining with the European Union in escalating penalties for action in Ukraine. The EU curbed Russia's access to bank financing and advanced technology in its widest-ranging sanctions yet over President Vladimir Putin's backing of rebels in eastern Ukraine.
Economic reports yesterday showed improving US consumer sentiment while the housing market remains in a slowdown. The Conference Board's consumer confidence index rose to 90.9, the highest reading since October 2007. Residential real-estate prices advanced 9.3% in the 12 months ended May, the slowest pace in more than a year, according to the S&P/Case-Shiller index of property values in 20 cities.
Expectations are that the Federal Reserve's Federal Open Market Committee (FOMC) will announce reduction of another $10 billion from its monthly asset purchases, or quantitative easing (QE) program after its two-day policy meeting which concludes later in the global day today, 30 July 2014. So far in 2014, the FOMC has been consistently trimming its quantitative easing at each meeting by $10 billion per month. This is the purchase of Treasury and mortgage-backed securities meant to push down long-term interest rates. As the Fed approaches the end of its QE program, Fed watchers are looking for a signal on when the central bank will raise interest rates
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