Key benchmark indices extended gains to hover near intraday high in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 105.39 points or 0.41%, up 225.31 points from the day's low and off 12.22 points from the day's high. The market breadth, indicating the overall health of the market, was negative.
Tata Consultancy Services (TCS) surged after the company after trading hours on Thursday, 17 July 2014, reported good Q1 June 2014 result. Zee Entertainment Enterprises (Zee) declined after reporting fall in Q1 consolidated net profit during market hours today, 18 July 2014. IL&FS Transportation Networks hit 52-week high after the company after market hours on Thursday, 17 July 2014 said that the Bonds issued by its wholly owned subsidiary have been listed on the Hong Kong Stock Exchange. Tyre stocks declined on profit booking after steep recent gains.
Among side counters, Adani Ports and Special Economic Zone, FAG Bearings, Tata Sponge Iron, Balkrishna Industries and Sadbhav Engineering scaled record high.
The sentiment was positive after provisional data showed that foreign portfolio investors made substantial purchases of Indian stocks on Thursday, 17 July 2014. Foreign portfolio investors (FPIs) bought shares worth a net Rs 1912.42 crore on Thursday, 17 July 2014, as per provisional data from the stock exchanges.
At 14:20 IST, the S&P BSE Sensex was up 105.39 points or 0.41% to 25,666.55. The index gained 117.61 points at the day's high of 25,678.77 in early afternoon trade, its highest level since 10 July 2014. The index fell 119.92 points at the day's low of 25,441.24 in morning trade, its lowest level since 16 July 2014.
The CNX Nifty was up 23 points or 0.3% to 7,663.45. The index hit a high of 7,673.85 in intraday trade, its highest level since 10 July 2014. The index hit a low of 7,595.50 in intraday trade, its lowest level since 16 July 2014.
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The market breadth, indicating the overall health of the market, was negative. On BSE, 1,460 shares declined and 1,325 shares rose. A total of 122 shares were unchanged.
The BSE Mid-Cap index fell 24.13 points or 0.26% to 9,267.56. The BSE Small-Cap index rose 1.90 points or 0.02% to 10,195.02. Both these indices underperformed the Sensex.
Among the 30-share Sensex pack, 17 stocks declined and rest of them gained.
Wipro (up 2.79%), ICICI Bank (up 1.47%) and Hero MotoCorp (up 1.4%) edged higher from the Sensex pack.
TCS surged 3.03%. TCS after trading hours on Thursday, 17 July 2014, reported 3.9% growth in consolidated net profit to Rs 5568 crore on 2.6% growth in revenue to Rs 22111 crore in Q1 June 2014 over Q4 March 2014. The bottom line was boosted by an exceptional item viz. a write back of depreciation charge of Rs 489.75 crore (net) due to a change in deprecation policy. Operating profit dropped 6% to Rs 5935 crore in Q1 June 2014 over Q4 March 2014.
TCS said that the company added five new $50 million plus clients during the quarter. TCS Chief Executive Officer and Managing Director N Chandrasekaran said that the company has a strong demand pipeline in place. TCS Chief Financial Officer Rajesh Gopinathan said that the company's disciplined stance in operations helped it mitigate the impact of multiple headwinds like currency movements, accelerated depreciation norms and wage hikes during the quarter. He said that the company will continue to maintain operating margins in the desired band by operating efficiently.
Zee Entertainment Enterprises fell 1.15% after consolidated net profit declined 6.26% to Rs 210.57 crore on 7.57% growth in total income to Rs 1124.65 crore in Q1 June 2014 over Q1 June 2013. The Q1 result was announced during market hours today, 18 July 2014.
Zee Entertainment Enterprises (Zee)'s consolidated operating revenue rose 11.6% to Rs 1085.70 crore in Q1 June 2014 over Q1 June 2013. Operating profit (EBITDA) rose 6.1% to Rs 309.20 crore in Q1 June 2014 over Q1 June 2013.
Zee's advertising revenue rose 17.4% to Rs 622.10 crore in Q1 June 2014 over Q1 June 2013. Once again, Zee has outperformed the industry growth rate which is in low double digits, the company said in a statement.
Mr. Subhash Chandra, Chairman, Zee said that the company expects television media industry to continue on its double-digit growth plan as industry witnessed a positive rub-off effect of election spending on the TV ad spends.
Mr. Chandra added that the company's performance during the quarter reflects the investments that Zee is making to grow its business and market share. This has been accompanied by a strong improvement in the operating performance of the existing businesses, he added.
Mr. Punit Goenka, MD and CEO, Zee said that the company continues to maintain healthy EBITDA margins in its businesses. EBITDA margins in its existing businesses have expanded, even as the company continues to invest in new businesses, Goenka added.
Speaking about the outlook for the business, Mr. Goenka said that the rollout of digitization, even though with some delays, is a positive development for the industry and will provide new growth opportunities throughout the television media value chain. Advertising spends on television are expected to grow in healthy double digits over next many years, Goenka said. Rollout of BARC and change in advertising currency from CPRP to CPT is expected to give it a positive fillip, he added. Development and effective monetization of newer avenues to reach the consumer is one of the company's focus areas, he further said. Creation and acquisition of excellent quality content remains core to the company's business and it continues to channelize investments to strengthen this core, Mr. Goenka said.
IL&FS Transportation Networks rose 2.4% to Rs 245.10 after hitting a 52-week high of Rs 250. IL&FS Transportation Networks after market hours on Thursday, 17 July 2014 said that ITNL International Pte, a wholly owned subsidiary of the company in Singapore, has issued RMB 575 million 8% Bonds Due 2017. These Bonds have been listed on the Hong Kong Stock Exchange, IL&FS Transportation Networks said.
Adani Ports and Special Economic Zone rose 2.35% to Rs 292.30 after scaling a record high of Rs 292.40 in intraday trade.
FAG Bearings surged 4.21% to Rs 2,722 after scaling a record high of Rs 2,825 in intraday trade.
Tata Sponge Iron jumped 5.83% to Rs 850.70 after scaling a record high of Rs 864.25 in intraday trade.
Sadbhav Engineering surged 4.88% to Rs 220.40 after scaling a record high of Rs 225.95 in intraday trade.
Tyre stocks declined on profit booking after steep recent gains. Apollo Tyres (down 2.39%), Goodyear India (down 0.71%), JK Tyre & Industries (down 2.62%), MRF (down 0.14%) and CEAT (down 1.93%) declined.
Balkrishna Industries gained 1.62% to Rs 814.40 after scaling a record high of Rs 833 in intraday trade.
The Securities and Exchange Board of India (Sebi) on Thursday, 17 July 2014 put out draft regulations for infrastructure investment trusts that were announced in Union Budget 2014-15 on 10 July 2014 to provide easier financing options to developers of public works. Such trusts will be able to invest in infrastructure projects only directly or through special purpose vehicles (SPVs), the market regulator said. For public-private partnership (PPP) projects, investments can be routed only through an SPV, Sebi said.
The Reserve Bank of India (RBI) on Thursday, 17 July 2014 issued draft guidelines for those seeking a license to set up a payments bank or a small bank. The minimum paid up capital required for both categories of bank licenses would be Rs 100 crore of which the promoter would have to contribute at least 40% initially, the RBI said. Payments banks can accept deposits and remittances of funds but cannot provide loans. Small banks can lend, but have more limited areas of operations than a full-fledged commercial lender. Both, payments banks and small banks are niche or differentiated banks with the common objective of furthering financial inclusion, the RBI said.
The entities eligible to set up a payments bank include existing non-bank Pre-paid Instrument Issuers (PPIs), Non-Banking Finance Companies (NBFCs), corporate BCs, mobile telephone companies, super-market chains, companies, real sector cooperatives, and public sector entities. The entities eligible to set up a small bank include resident individuals with ten years of experience in banking and finance, companies and societies, NBFCs, Micro Finance Institutions and Local Area Banks, the RBI said.
Volatility struck bourses in early trade as the key benchmark indices slipped in negative zone after reversing an initial decline triggered by negative Asian stocks. Key benchmark indices cut losses after hitting fresh intraday low in morning trade. Key benchmark indices extended recovery in mid-morning trade and hovered near the flat line. Key benchmark indices reversed intraday fall and hit fresh intraday high in early afternoon trade. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both hit their highest level in over one week. Key benchmark indices trimmed intraday gains in afternoon trade. Key benchmark indices extended gains to hover near intraday high in mid-afternoon trade.
In the foreign exchange market, the rupee edged lower against the dollar in choppy trade. The partially convertible rupee was hovering at 60.2950, compared with its close of 60.18 on Thursday, 17 July 2014.
European stocks edged lower today, 18 July 2014, tracking weak Asian stocks and Russian markets plunged after a Malaysian airliner was shot down over Ukraine and Israeli troops moved into Gaza. Key benchmark indices in France, Germany and UK shed 0.07% to 0.61%.
Most Asian stocks edged lower today, 18 July 2014, on rising geopolitical tension after news on Thursday, 17 July 2014 of a downed Malaysian airlines jet at the Ukraine-Russia border. Key benchmark indices in Hong Kong, Taiwan, Japan and South Korea fell by 0.07% to 1.01%. Key benchmark indices in Singapore, China and Indonesia rose 0.03% to 0.21%.
Trading in US index futures indicated that the Dow could fall 8 points at the opening bell on Friday, 18 July 2014. US markets dropped on Thursday, 17 July 2014 on the news that a Malaysian Airlines passenger jet had crashed near the Ukraine-Russia border.
Geopolitical tensions escalated after Boeing Co. 777 crashed en route to Kuala Lumpur from Amsterdam in the main battleground of Ukraine's civil war, threatening to escalate tensions in Europe's worst geopolitical crisis since the end of the cold war.
Meanwhile, Russian President Vladimir Putin said Ukraine's government bore responsibility for the crash because it wouldn't have occurred without the current strife. Putin has repeatedly denied Russian involvement in the fighting in Ukraine's east, which erupted in the wake of former president Viktor Yanukovych's ouster earlier this year.
Meanwhile, Israel's movement of troops and tanks into the coastal enclave marks the first significant ground operation in Gaza since 2009.
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