Key benchmark indices edged higher amid a flood of corporate earnings which triggered some strong stock-specific movements. Banking and auto stocks led intraday recovery on the bourses that helped the barometer index, the S&P BSE Sensex, regain the psychological 26,000 level. The 50-unit CNX Nifty attained its highest closing level in almost a week. 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 garnered 96.19 points or 0.37% to settle at 26,087.42. 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. Bharti Airtel surged after reporting strong Q1 results. Shares of pharma majors Lupin, Dr Reddy's Laboratories and Cadila Healthcare rose after reporting strong Q1 results.
ITC eked out small gains after the cigarette major reported strong Q1 results. Sesa Sterlite also eked out small gains after seeing post results volatility. IDFC shrugged off weak Q1 results. Most auto stocks gained ahead of the announcement of monthly sales volume data for July 2014 starting 1 August 2014. Shares of biscuits major Britannia Industries scaled record high. Among other side counters, shares of travel operator Cox & Kings Cox & Kings surged to 52-week high.
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.
The S&P BSE Sensex garnered 96.19 points or 0.37% to settle at 26,087.42, its highest closing level since 25 July 2014. 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 garnered 42.70 points or 0.55% settle at 7,791.40, its highest closing level since 24 July 2014. 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.
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The total turnover on BSE amounted to Rs 3240 crore, higher than Rs 2462.88 crore on Monday, 28 July 2014. the stock market was 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, 1,490 shares fell and 1,390 shares rose. A total of 127 shares were unchanged.
The BSE Mid-Cap index garnered 32.29 points or 0.35% to settle at 9,171.51. The BSE Small-Cap index shed 1.71 points or 0.02% to settle at 9,964.93. Both these indices underperformed the Sensex.
The S&P BSE Bankex (up 1.57%), the S&P BSE Consumer Durables index (up 1.47%), the S&P BSE Healthcare index (up 1.35%), the S&P BSE Realty index (up 0.82%), the S&P BSE Auto index (up 0.64%), the S&P BSE Power index (up 0.63%) outperformed the Sensex.
The S&P BSE Metal index (up 0.44%), the S&P BSE Teck index (up 0.43%), the S&P BSE Oil & Gas index (up 0.42%), the S&P BSE FMCG index (up 0.34%), the S&P BSE IT index (down 0.25%) and the S&P BSE Capital Goods index (down 4.68%) underperformed the Sensex.
Among the 30-share Sensex pack, 23 stocks advanced and rest of them declined.
ITC gained 0.24% to Rs 357.55. The stock hit high of Rs 364.45 and low of Rs 357.55. The company reported 15.6% rise in net profit to Rs 2186.39 crore on 24.54% rise in total income to Rs 9482.84 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced on Tuesday, 29 July 2014, when stock market was closed on account of Ramzan ID.
Britannia Industries gained 3.88% to Rs 1,110.55 after scaling a record high of Rs 1,119.90 in intraday trade.
Tata Global Beverages fell 1.42% on weak Q1 results. The company's consolidated net profit declined 12.9% to Rs 97.23 crore on 4.2% growth in total income to Rs 1931.10 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Monday, 28 July 2014. The stock market was closed on Tuesday, 29 July 2014 on account of Ramzan ID. Tata Global Beverages' income from operations rose 5% to Rs 1913 crore in Q1 June 2014 over Q1 June 2013. Profit before exceptional items declined 4% to Rs 169 crore in Q1 June 2014 over Q1 June 2013. While branded business performed well, profitability was impacted by lower crop available for sale in the plantation business and investment in new ventures, Tata Global Beverages said in a statement. During the quarter, Tata Global Beverages continued to focus on strengthening its brands across tea, coffee and water, the company said in a statement.
Pharma shares were in demand. Cipla (up 1.53%), Sun Pharmaceutical Industries (up 0.05%) and Wockhardt (up 0.56%) gained.
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.
The company launched 25 new generic products, filed 27 new product applications and 20 DMFs globally in Q1 June 2014, Dr Reddy's Laboratories said.
Ranbaxy Laboratories (Ranbaxy) fell 0.76% to Rs 585.50 after reporting Q1 results. The stock hit a 52-week high of Rs 596.85 in intraday trade. The stock hit an intraday low of Rs 575.65. The company reported a consolidated net loss of Rs 185.92 crore in Q1 June 2014, lower than net loss of Rs 524.24 crore in Q1 June 2013. Total income declined 8.16% to Rs 2451.70 crore in Q1 June 2014 over Q1 June 2013. The result was announced on Tuesday, 29 July 2014, when the stock market was closed on account of Ramzan Id.
Branded and OTC category contributed Rs 1370 crore accounting for 58% of total sales in Q1 June 2014. Generics and others category recorded Rs 1000 crore of sales during the quarter, the company said in a statement.
In the domestic market, sales in Q1 June 2014 stood at Rs 610 crore, a growth of 12% over the corresponding period. Ranbaxy said it expects the momentum in Indian business to continue in the months ahead.
Commenting on the company's Q1 results, Arun Sawhney, CEO & MD, Ranbaxy said, We continue to work towards growing our base business with focus on emerging markets, while at the same time, restoring the business on growth trajectory in our traditional markets such as USA and Europe.
Lupin rose 5.48% to Rs 1,180 after scaling a record high of Rs 1,192.10 in intraday trade. The company's consolidated net profit rose 55.8% to Rs 624.7 crore on 35.7% rise in net sales to Rs 3284 crore in Q1 June 2014 over Q1 June 2013. The result was announced during market hours.
Lupin's operating profit jumped 89.1% to Rs 1114.80 crore in Q1 June 2014 over Q1 June 2013. The operating profit margin (OPM) edged up to 33.9% in Q1 June 2014, from 24.4% in Q1 June 2013.
Commenting on the results, Nilesh Gupta, Managing Director, Lupin, said, "We have had a great start to the year. Business is at an all time high with record revenues and profits driven by strong growth in the US and in India. We are doing well in all our businesses and focus on operational efficiencies and manufacturing excellence is helping us deliver even stronger margins."
Cadila Healthcare rose 2.67% to Rs 1,159.20 after scaling a record high of Rs 1,195 in intraday trade. Cadila Healthcare's consolidated net profit rose 23.15% to Rs 240.21 crore on 24.91% increase in total income to Rs 2060.53 crore in Q1 June 2014 over Q1 June 2013. The result was announced during trading hours today, 30 July 2014.
Cadila Healthcare said that sales growth was buoyed by the company's formulations business in US, which grew by 88% in Q1 June 2014. During the quarter, the group filed 26 additional ANDAs (abbreviated new drug applications) with the US Food and Drug Administration and launched 4 new products in the US.
The group posted a growth of 19% with 12 new product launches in the different emerging markets during the quarter. In the domestic formulations market, the company launched 19 new products, including line extensions, of which 6 products were the first to be launched in India.
Indoco Remedies jumped 14.13% after net profit surged 118.30% to Rs 20.04 crore on 29.01% increase in total income from operations to Rs 198.63 crore in Q1 June 2014 over Q1 June 2013. The result was announced during trading hours today, 30 July 2014.
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%.
IDFC rose 1.43% to Rs 155.90. The stock was volatile. The stock hit high of Rs 157.25 and low of Rs 149. The company reported 13.55% fall in consolidated net profit to Rs 481.74 crore on 7.63% fall in total income from operations to Rs 2122.52 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced on Tuesday, 29 July 2014, when stock market was closed on account of Ramzan ID.
Provisions and contingencies jumped 244.65% to Rs.203.93 crore in Q1 June 2014 over Q1 June 2013.
IDFC's gross loan book fell 7% to Rs 53848 crore on 30 June 2014 from Rs 57600 crore as on 30 June 2013.
Based on standalone financials, IDFC's ratio of gross non-performing assets (NPA) to gross advances stood at 0.64% as on 30 June 2014, higher than 0.56% as on 31 March 2014 and 0.32% as on 30 June 2013. The lender's ratio of net non-performing assets (NPA) to net advances stood at 0.43% as on 30 June 2014, higher than 0.37% as on 31 March 2014 and 0.2% as on 30 June 2013.
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.
Bharat Heavy Electricals (Bhel) rose 1% to Rs 231.80, also its intraday high. The stock was volatile. The stock recovered from an intraday of Rs 225.25. The company after market hours on Friday, 25 July 2014, said that the company has bagged an order valued at Rs 68 crore for setting up a 10 MWp grid connected solar power plant for Karnataka Power Corporation (KPCL). The plant will be set up at Shivanasamudram, Belakavadi Village in Mandya District of Karnataka. Bhel's scope of work in the turnkey contract envisages design, engineering, manufacture, supply, erection, testing and commissioning of the 10 MW solar power plant including grid inter-connection, operation and maintenance (O&M) of the plant for 3 years.
Sesa Sterlite rose 0.62% to Rs 292.10. The stock hit high of Rs 293.45 and low of Rs 277.80. The company's consolidated profit after tax (PAT) dropped 9.35% to Rs 375.56 crore on 4706.58% growth in total income to Rs 18466.88 crore in Q1 June 2014 over Q1 June 2013. The Sesa Sterlite merger and the Vedanta Group consolidation was completed in August 2013. Therefore, the results for Q1 June 2014 are not comparable with the results of Q1 June 2013. The Q1 result was announced on Tuesday, 29 July 2014, when the stock market was closed for a public holiday.
In a press release, Sesa Sterlite issued adjusted proforma numbers for Q1 June 2013 which are more representative of the performance during the period. Based on these adjusted figures, attributable PAT before exceptional items more than doubled to Rs 1341 crore in Q1 June 2014, from Rs 600 crore in Q1 June 2013. Revenue jumped 19% to Rs 17056 crore in Q1 June 2014 over Q1 June 2013. The increase was primarily due to Sterlite Copper which was under temporary closure in Q1 June 2013. Cairn India also witnessed increase in revenue due to higher average oil prices though offset partially by higher profit petroleum. Revenue of the aluminium business was higher on better premium, partially offset by a weaker market and lower realisations in the power business. Operations at the Australian copper mines were suspended since January 2014 and the mine has been put under care and maintenance in July 2014. Other businesses were almost flat compared to Q1 June 2013.
Earnings before interest, taxation, deprecation and amortization (EBITDA) rose 3.5% to Rs 5670 crore in Q1 June 2014 over Q1 June 2013. While favourable oil prices, LME, premiums, and currency depreciation helped increase EBITDA, lower volumes in zinc and power, higher cost of production, higher profit petroleum, and Australian mines closure resulted in a modest EBITDA increase of 3.5%. EBITDA margin, excluding custom smelting operations of copper and zinc in India, remained strong at 47% in Q1 June 2014, higher than 45% in Q1 June 2013.
The company said it has a strong balance sheet with cash and cash equivalents of over Rs 47500 crore.
Mr. Navin Agarwal, Chairman, Sesa Sterlite said: "The outlook for the natural resources sector and for Sesa Sterlite is positive as the government is looking at formulating forward looking policies which will help harness production and grow the potential of the company's businesses. The natural gas development project pursued by Cairn India is a good example of the company's focus as a key growth area for the future."
Sesa Sterlite said that iron ore operations at its mines in Goa continue to remain suspended. The Goa state government is working towards formulation of its mining policy following the Supreme Court order of March 2014. Sesa Sterlite expects to resume mining operations at Goa in the second half of the current financial year after obtaining the necessary approvals.
Sesa Sterlite said that its alumina refinery expansion project at Lanjigarh is on hold. The company said its fresh application for environmental clearance for this project is under process and the public hearing is scheduled on 30 July 2014.
Steel Authority of India (SAIL) rose 0.4%. The company said during market hours that International Coal Ventures (ICVL), a joint venture company of Sail, Coal India, Rashtriya Ispat Nigam, NMDC and NTPC has signed an agreement for acquisition of Rio Tinto's 2.6 billion tonnes coal resource in Mozambique. The mine produces prime hard coking coal and thermal coal. The coal resource will become a long term captive source of raw material in steel making in geographical proximity to India.
Coal India gained 0.71%. NMDC declined 0.46%. NTPC was unchanged at Rs 149.05.
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.
Shares of other telecom companies rose after Bharti Airtel's Q1 results. Idea Cellular (up 5.45%), MTNL (up 1.95%) and Reliance Communications (up 1.96%) gained. Tata Teleservices (Maharashtra) fell 0.42%.
GAIL (India) rose 1.68% to Rs 431.80. The stock was volatile. The stock hit high of Rs 434.50 and low of Rs 423.65. GAIL (India) during market hours today clarified that the company has signed long term agreements with the US based companies viz. Cheniere Energy Partner and Dominion Resources for transportation of LNG from Sabine Pass and Cove Point terminals in USA. Under the advice of Ministry of Petroleum & Natural gas, GAIL (India) will shortly come out with a LNG ship charter hire tender specifying, inter-alia, that one ship out of every lot of three ships each would be built in India. Quotes for three such lots of three ships each would be specified in the tender. It is proposed to allow six years delivery period for the Indian built ships as against about 2 and half years for the foreign built ships, GAIL (India) said
Most auto stocks gained ahead of the announcement of monthly sales volume data for July 2014 starting 1 August 2014. Mahindra & Mahindra (M&M) (up 1.45%), Maruti Suzuki India (up 2.02%), Ashok Leyland (up 6.41%), Hero MotoCorp (up 2.75%) and TVS Motor Company (up 0.75%) gained.
Tata Motors (down 0.46%) and Bajaj Auto (down 0.02%) declined.
Escorts fell 3.77% on weak Q1 results. The company after net profit declined 41.49% to Rs 34.11 crore on 4.33% decline in net sales to Rs 1122.11 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced on Tuesday, 29 July 2014, when stock market was closed on account of Ramzan ID. Escorts' EBITDA (earnings before interest, taxes, depreciation and amortization) margin rose to 5% in Q1 June 2014, from 4.7% in Q4 March 2014.
IT stocks were mixed. Infosys (up 0.34%) and TCS (up 0.01%) gained. Tech Mahindra fell 1.83%.
HCL Technologies fell 0.98% to Rs 1,597. The stock reversed direction after scaling a record high of Rs 1,630 in intraday trade.
Wipro declined 0.83%. Wipro today, 30 July 2014, clarified that the company constantly evaluates various vehicles for investment in companies focused on emerging technologies. As and when any such decision is taken on any material event, the company shall intimate the stock exchanges. The company issued this clarification with reference to the news item titled, "Premji Jr to be at wheel of Wipro's venture arm": The report had said the company is setting up a corporate venture arm to be spearheaded by Promoter Azim Premji's son Rishad Premji that will initially invest up to $100 million (Rs 600 crore) in startups to help the country's third-largest software exporter fill the missing innovation strand.
Cox & Kings jumped 5.8% to Rs 270.75 after hitting a 52-week high of Rs 276.40 in intraday trade.
JK Lakshmi Cement edged higher, with the stock extending Monday's rally triggered by the cement maker's strong Q1 result. The stock was up 1.32% at Rs 249.10. The stock hit 52-week high of Rs 259.20 in intraday trade. The company's net profit surged 157.7% to Rs 40.46 crore on 31.1% rise in total income to Rs 602.92 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours Friday, 25 July 2014.
Akzo Nobel India tumbled 8.39% after the stock turned ex-dividend today, 30 July 2014, for total dividend of Rs 75 per share.
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.
Key benchmark indices snapped two-day losing streak today, 30 July 2014. The Sensex had declined 280.62 points or 1.06% in two trading sessions to 25,991.23 on Monday, 28 July 2014, from its recent high of 26,271.85 on 24 July 2014. The Sensex has risen 673.64 points or 2.65% in this month so far (till 30 July 2014). The Sensex has gained 4,916.74 points or 23.22% in calendar year 2014 so far (till 30 July 2014). From a 52-week low of 17,448.71 on 28 August 2013, the Sensex has risen 8,638.71 points or 49.5%.
In the foreign exchange market, the rupee edged higher against the dollar in choppy trade. The partially convertible rupee was hovering at 60.09, 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 UK, France and Germany were down 0.05% to 0.3%.
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 30 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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