A range bound movement was witnessed as key benchmark indices hovered in positive zone in morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex, was up 98.64 points or 0.39% at 25,200.37. The gains for the Nifty 50 index were lower than the Sensex's gains in percentage terms. The Nifty was currently up 16.10 points or 0.21% at 7,722.65.
The Sensex rose 134.86 points or 0.53% at the day's high of 25,236.59 at the onset of trading session. The barometer index rose 61.21 points or 0.24% at the day's low of 25,162.94 in morning trade. The Nifty rose 34.90 points or 0.45% at the day's high of 7,741.45 at the onset of trading session. The index rose 8.05 points or 0.1% at the day's low of 7,714.60 in morning trade.
In overseas stock markets, Asian stocks edged lower on data showing slowdown in growth in China's services sector last month. The China Caixin services purchasing managers' index (PMI) dropped to 51.8 in April from 52.2 in March. China's official nonmanufacturing PMI, a competing gauge, fell to 53.5 in April from 53.8 in March, according to data released on 1 May 2016. China's economy is the world's second biggest economy. In mainland China, the Shanghai Composite index was currently down 0.27%. In Hong Kong, the Hang Seng index was currently down 0.35%.
US stocks edged lower yesterday, 4 May 2016, after weaker-than-expected private-sector job data. The ADP employment data showed that private payrolls across the US rose by 156,000 last month. The increase is the smallest since April 2013. The report is seen as a precursor to the top-tier nonfarm-payrolls data due on Friday, 6 May 2016. The nonfarm-payrolls data has implications for the US monetary policy. The US central bank's mandate centers on maximizing employment and keeping inflation at a 2% target level. The Federal Open Market Committee (FOMC) next undertakes monetary policy review at a two-day meeting on 14-15 June 2016.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE, 983 shares rose and 742 shares declined. A total of 74 shares were unchanged. The BSE Mid-Cap index was currently down 0.15%. The BSE Small-Cap index was currently up 0.07%. Both these indices underperformed the Sensex.
Cement stocks declined. UltraTech Cement (down 1.19%), ACC (down 1.17%), Shree Cement (down 0.58%) and Ambuja Cements (down 0.4%) edged lower.
Grasim Industries was off 0.59%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Auto stocks were mostly higher. Tata Motors (up 2.41%), Bajaj Auto (up 0.22%) and Maruti Suzuki India (up 0.18%) edged higher. Ashok Leyland (down 0.2%), Mahindra & Mahindra (down 0.49%) and TVS Motor Company (down 0.24%) edged lower.
Eicher Motors rose 0.71%. The company is scheduled to announce its Q4 March 2016 results today, 5 May 2016.
Hero MotoCorp rose 0.89%. The company is scheduled to announce its Q4 March 2016 results today, 5 May 2016.
Adani Ports and Special Economic Zone (APSEZ) lost 3.54% at Rs 200.30 on reports that a foreign brokerage has reduced its price target on the stock, citing slowdown in the company's core port earnings growth. The brokerage has retained its hold rating on the stock. The APSEZ stock slumped yesterday, 4 May 2016, on equity dilution worries after the company's board of directors decided to seek shareholders' approval to raise funds by way of issue of equity shares/convertible bonds up to Rs 10000 crore. The stock had tumbled 11.97% to settle at Rs 207.65 yesterday, 4 May 2016. APSEZ's consolidated net profit rose 38.34% to Rs 914.06 crore on 18% increase in total income to Rs 2161.65 crore in Q4 March 2016 over Q4 March 2015. EBITDA (earnings before interest, taxes, depreciation and amortization) excluding other income rose 12% to Rs 1225 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours on 3 May 2016.
Jindal Steel & Power (JSPL) lost 0.6% at Rs 66.20 after the announcement of its fourth quarter earnings. The company reported consolidated net loss of Rs 363 crore in Q4 March 2016, lower than net loss of Rs 581 crore in Q4 March 2015. Turnover rose 7% to Rs 4874 crore in Q4 March 2016 over Q4 March 2015. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 9% to Rs 896 crore in Q4 March 2016 over Q4 March 2015. EBITDA margin was reported at 18% in Q4 March 2016, same as in in Q4 March 2015. The result was announced after market hours yesterday, 4 May 2016.
In its outlook, JSPL said that its endeavor for the year ending 31 March 2017 (FY 2017) would be to fully utilize its consolidated capacities of 6.75 MTPA in steel. With Steel prices looking up in recent times on the back of rise in global steel prices and government support through minimum import price (MIP), the company is looking to improve its net sales realization (NSR) substantially during the year and generate higher EBITDA. Ramp up of Oman rebar mill and commissioning of Angul rebar mill should further help increase these realizations.
In power business, the company expects the demand to pick up, both in short term & long term markets. With the summer setting in, the demand and the exchange prices should move higher, helping the company generate higher revenues. Also, the company believes the UDAY scheme by the Government of India is a commendable scheme, which could catalyze the PPA markets in the coming year.
Supported by government's novel initiatives like Make-in-India campaign, 24X7 power, housing for all, dedicated freight corridors, smart city initiative, JSPL envisages the demand for steel and power to increase in near future and help JSPL sweat its assets to generate additional revenues and higher operating profits in FY 2017 and beyond, the company added.
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