Key benchmark indices retained positive zone in mid-afternoon trade. The barometer index, the S&P BSE Sensex, was up 73.14 points or 0.35%, up 45.99 points from the day's low and off 72.03 points from the day's high. The market breadth, indicating the overall health of the market, was positive. Gains in Asian and European stocks supported the upmove on the domestic bourses today, 29 January 2014.
Bharti Airtel reversed initial gains in volatile trade as the company's Q3 December 2013 earnings fell short of market expectations. Other telecom stocks were in green. Havells India rose after good Q3 result announced during trading hours today, 29 January 2014. PTC India Financial Services surged after strong Q3 result announced after market hours on Tuesday, 28 January 2014. GIC Housing Finance declined after reporting almost flat net profit in Q3 after market hours on Tuesday, 28 January 2014.
Key benchmark indices edged higher in early trade on firm Asian stocks. Key benchmark indices trimmed initial gains in morning trade. Key benchmark indices recovered from lower level after trimming initial gains in mid-morning trade. Key benchmark indices trimmed gains in afternoon trade. Key benchmark indices retained positive zone in mid-afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 1267.35 crore on Tuesday, 28 January 2014, as per provisional data from the stock exchanges.
The market may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month January 2014 series to February 2014 series. The January 2014 F&O contracts expire tomorrow, 30 January 2014.
Asian and European edged higher on Wednesday, 29 January 2014, after Turkey's central bank on Tuesday, 28 January 2014, more than doubled interest rates to arrest a currency slide that roiled global markets.
At 14:18 IST, the S&P BSE Sensex was up 73.14 points or 0.35% to 20,756.65. The index jumped 145.17 points at the day's high of 20,828.68 in early trade, its highest level since 27 January 2014. The index rose 27.15 points at the day's low of 20,710.66 in afternoon trade.
The CNX Nifty was up 25.90 points or 0.42% to 6,152.15. The index hit a high of 6,170.45 in intraday trade, its highest level since 27 January 2014. The index hit a low of 6,139.45 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,287 shares gained and 1,156 shares fell. A total of 146 shares were unchanged.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined. Maruti Suzuki India (up 8.17%), Bhel (up 4.38%) and AXIS Bank (up 2.23%), edged higher from the Sensex pack.
Sesa Sterlite (down 2.5%), Hindalco Industries (down 1.67%) and Tata Steel (down 1.45%) edged lower from the Sensex pack.
Bharti Airtel reversed initial gains in volatile trade as the company's Q3 December 2013 earnings fell short of market expectations. The stock was off 1.08% at Rs 303. The stock hit a high of Rs 314.80 and low of Rs 301.25 so far during the day. As per International Financial Reporting Standards (IFRS), Bharti Airtel's consolidated net profit surged 115.1% to Rs 610 crore on 13.3% increase in total revenue to Rs 21939 crore in Q3 December 2013 over Q3 December 2012.
Bharti Airtel's consolidated mobile internet revenue surged 105.2% to Rs 1736 crore in Q3 December 2013 over Q3 December 2012, accounting for more than one-third of the overall incremental revenue.
The India business registered a revenue growth of 10.3% in Q3 December 2013 over Q3 December 2012 (Y-o-Y), with strong contribution from all segments. Mobile voice realisation in India improved by 1.96 paise (p) on a Y-o-Y basis (37.13p in Q3 December 2013 versus 35.17p in Q3 December 2012), and minutes grew by 5.9% Y-o-Y. Data customer base increased by 31.2% to 54.4 million customers and coupled with 54.4% increase in usage per customer, this led to 97% increase in total data traffic. Mobile ARPU has increased by Rs 9.7 to Rs 195. DTH revenue grew by 25.8% and airtel business grew by 13.9% Y-o-Y.
International revenue grew by 18.5% Y-o-Y in Indian rupee (INR) terms with Africa growing by 17.2% and South Asia by 44.8%. Net Revenue in Africa (after inter-connect costs and cost of goods sold) has grown by 21.6% Y-o-Y in INR terms. Africa revenue in US dollar terms grew by 4.1% on sequential quarter basis led by a strong 16.8% increase in Data revenues. Mobile voice pricing in Africa remained stable at 3.31 cents per minute, and overall ARPU improved to $5.8.
Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) at Rs 7093 crore grew by 22.8% Y-o-Y, with margin expanding to 32.3% from 29.8% from the corresponding quarter last year led by improved operational performance in India, which expanded EBITDA margin by 4.4% Y-o-Y.
Consolidated Operating Free Cash Flows for the quarter at Rs 4271 crore grew by 19.9% Y-o-Y.
The company's consolidated net debt has reduced to $9.313 billion resulting in the Net Debt to EBITDA ratio (LTM) improving to 2.06 times as compared to 2.2 times at the end of the previous quarter.
In a statement, Mr. Gopal Vittal, JMD and CEO, India Operations, Bharti Airtel, said: "Our efforts over the last 12 months to improve the quality of customer acquisitions have resulted in significant reduction in customer churn. Our focus on superior internet experience has resulted in increased data adoption and usage. Data is now a huge source of revenue growth".
Mr. Manoj Kohli, MD and CEO, International Operations, Bharti Airtel, said: "The International operations continued to achieve steady revenue growth. Africa had another quarter of strong growth from the 3G/Data and Airtel Money services across all its markets and we expect this trend to sustain due to large investments in brand & network. The market growth came back in Nigeria which is the largest telecom market in the continent".
Meanwhile, Bharti Airtel after market hours on Tuesday, 28 January 2014, said that the board of directors of the company at its meeting held on Tuesday, 28 January 2014 has approved the changes in its top management. Mr. Manoj Kohli will become Chairman of Bharti Airtel International (Netherlands) B.V. that owns telecom operations in Africa, relinquishing the position of Managing Director & CEO (International) in Bharti Airtel. Mr. Manoj Kohli will continue on the Board of Bharti Airtel as Non-executive Director.
Mr. Christian de Faria has been appointed as the Managing Director and CEO (Africa) of Bharti Airtel International (Netherlands) B.V. and will assume full operational responsibility of the company's operations across 17 African geographies. Mr. Gopal Vittal has been appointed as the Managing Director and CEO (India & South Asia) and will also be responsible for Bangladesh and Sri Lanka operations.
Other telecom stocks were in green. Idea Cellular (up 0.56%), Tata Teleservices (Maharashtra) (up 3.32%) and Reliance Communications (up 1.36%) gained. MTNL shed 0.65%.
Havells India rose 4.77% after net profit rose 28.32% to Rs 121.47 crore on 12.76% increase in total income to Rs 1195.10 crore in Q3 December 2013 over Q3 December 2012. The result was announced during trading hours today, 29 January 2014.
PTC India Financial Services rose 6.15% after net profit surged 278.7% to Rs 106.90 crore on 184.3% spurt in operating income to Rs 194.80 crore in Q3 December 2013 over Q3 December 2012. The result was announced after market hours on Tuesday, 28 January 2014.
GIC Housing Finance lost 2.84% after net profit rose 1.9% to Rs 23.64 crore on 13.6% growth in total income to Rs 158.49 crore in Q3 December 2013 over Q3 December 2012. The Q3 result was announced after market hours on Tuesday, 28 January 2014.
Aurobindo Pharma (up 5.15%), Jaypee Infratech (up 4.56%), Piramal Enterprises (up 4.16%), Adani Enterprises (up 3.8%) and Future Retail (up 3.67%) were among the top gainers from the BSE's 'A' group.
Sobha Developers (down 5.43%), Pipavav Defence and Offshore Engineering Company (down 3.44%), IDBI Bank (down 2.31%), The Ramco Cements (down 2.95%) and Syndicate Bank (down 1.81%) were among the top losers from the BSE's 'A' group.
In the foreign exchange market, the rupee edged higher against the dollar, tracking gains in the Asian currency markets after Turkey stunned investors with a huge hike in interest rates to support its currency lira. The partially convertible rupee was hovering at 62.3725, compared with its close of 62.51/52 on Tuesday, 28 January 2014.
Turkey's central bank raised its repurchase rate to 10% from 4.5% and boosted other key borrowing costs at a late-night emergency meeting on Tuesday, 28 January 2014. Turkish currency lira's slide to a record low coupled with Argentina's devaluation of the peso and concern over China's economy ignited a rout in world equity markets at the end of last week.
The Reserve Bank of India has not raised interest rates to fight off the recent global emerging market sell-off, but to tamp down inflationary pressures, Governor Raghuram Rajan said today, 29 January 2014. "I think for (some) time we have been saying very clearly we are focused on preserving the value of the rupee, in the domestic context," he told analysts on a conference call a day after the central bank unexpectedly raised its key rate by 25 basis points. "Preserving it in the domestic context will preserve it in the international context. Preserving in the domestic context means bringing inflation under control. Once we do that, we believe investor confidence naturally follows," he said.
Dr. Rajan said he would have liked to see a greater reduction in core inflation. The Reserve Bank of India (RBI) raised its main lending rate viz. the repo rate by 25 basis points to 8% after Third Quarter Review of Monetary Policy for 2013-14 on Tuesday, 28 January 2014, to rein in high consumer price inflation.
European stocks surged on Wednesday, 29 January 2014, after the Turkish central bank aggressively increased interest rates at a late-night emergency meeting on Tuesday, 28 January 2014, to halt a slide in the lira. Key benchmark indices in UK, France and Germany were up by 1.02% to 1.31%.
Asian stocks edged higher on Wednesday, 29 January 2014, after Turkey's central bank on Tuesday, 28 January 2014, more than doubled interest rates to arrest a currency slide that roiled global markets. Key benchmark indices in Hong Kong, China, Japan, Indonesia and South Korea rose by 0.56% to 2.7%. In Singapore, the Straits Times index fell 0.53%. Stock markets in Taiwan are closed until 4 February 2014 for the Lunar New Year holiday.
Industrial output in South Korea increased 3.4 percent in December from November, the biggest gain since June 2009.
Trading in US index futures indicated that the Dow could advance 59 points at the opening bell on Wednesday, 29 January 2014. US stocks edged higher on Tuesday, 28 January 2014, as earnings at companies from Pfizer Inc. to D.R. Horton Inc. topped estimates.
The Conference Board's index of US consumer confidence rose to 80.7 in January from a revised 77.5 in December, the New York-based private research group said on Tuesday, 28 January 2014.
Federal Reserve officials have been scrutinizing US economic data to determine the timing and pace of reductions to asset purchases. The central bank, which concludes a two-day meeting today, 29 January 2014, decided at its December gathering to begin cutting its monthly bond buying by $10 billion to $75 billion.
US President Barack Obama on Tuesday, 28 January 2014, vowed aggressive action on helping the US economy, saying he would bypass Congress on key issues including creating a new retirement-savings program and raising the minimum wage for workers on new federal contracts. In his State of the Union address, Obama said the economy has grown for four years, that corporate profits and stock prices have "rarely been higher," and wealthy Americans have benefitted. But he said average wages have hardly budged, and inequality has deepened. "America does not stand still," he said. "And neither will I. So wherever and whenever I can take steps without legislation to expand opportunity for more American families, that's what I'm going to do," Obama said.
In his speech, Obama called on Congress to raise the minimum wage for all workers, fix the immigration system, and expand the Earned Income Tax Credit. He said that he would make it easier for states to build factories that use natural gas and that Congress should fund building of fueling stations.
Republicans slammed the president for his pledge to go solo to help narrow the economic gap. "Instead of our areas of common ground, the president focused too much on the things that divide us - many we've heard before - and warnings of unilateral action. The president must understand his power is limited by our constitution," House Speaker John Boehner said in a statement.
Powered by Capital Market - Live News
