Key benchmark indices traded in a narrow range in positive zone in morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex was up 44.96 points or 0.18% at 24,915.65. The Sensex was currently trading below the psychological 25,000 level after briefly surpassing that level in morning trade. The 50-unit Nifty 50 index was currently up 16.25 points or 0.21% at 7,579.80.
The Sensex rose 131.63 points or 0.52% at the day's high of 25,002.32 in morning trade. The index lost 24.45 points or 0.09% at the day's low of 24,846.24 in early trade. The Nifty rose 28.80 points or 0.38% at the day's high of 7,592.35 in morning trade. The index lost 6.75 points or 0.08% at the day's low of 7,556.80 in early trade.
The broad market depicted strength. There were more than two gainers against every loser on BSE. 1,327 shares rose and 573 shares declined. A total of 66 shares were unchanged. The BSE Mid-Cap index was currently up 0.47%. The BSE Small-Cap index was currently up 0.84%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian stocks edged lower after registering sharp gains in previous trading session. In China, the Shanghai Composite index was currently off 1.78%. Latest data showed that China's Caixin manufacturing purchasing managers' index (PMI) inched up to 48.4 last month, a slight pick-up from a reading of 48.2 in December 2015. The January reading was still below the 50-point neutral level, which separates a contraction from an expansion. US stocks closed sharply higher on Friday, 29 January 2016 after the Bank of Japan unexpectedly adopted a negative interest rate policy for the first time.
IT stocks edged higher. HCL Technologies (up 2.54%), Infosys (up 1%), TCS (up 0.77%) and Oracle Financial Services Software (up 0.18%) edged higher.
Tech Mahindra was up 2.93% at Rs 516.25. The company is scheduled to announce its Q3 December 2015 results today, 1 February 2016.
Wipro rose 1.88% at Rs 571.75 after the company announced that it has achieved a significant milestone in its ongoing Internet of Things (IoT) deployment for JCB India, a leading construction equipment manufacturer. JCB's Livelink telematics system has successfully connected over 10,000 construction equipment and machines, such as backhoe loaders, excavators and compact wheel loaders, deployed for its customers across India, Wipro said in a statement. The announcement was made before market hours today, 1 February 2016.
Cement stocks gained. ACC (up 1.31%), Ambuja Cement (up 1.51%), UltraTech Cement (up 0.54%) and Shree Cement (up 2.26%) edged higher.
Grasim Industries rose after announcing strong Q3 earnings. The stock was up 3.57% at Rs 3,510.20. The company's consolidated net profit rose 95% to Rs 650 crore on 13% growth in net revenue to Rs 9044 crore in Q3 December 2015 over Q3 December 2014. The result was announced on Saturday, 30 January 2016.
Grasim Industries' earnings before interest, taxation, depreciation, and amortization (EBITDA) rose 43% to Rs 1795 crore in Q3 December 2015 over Q3 December 2014.
Aditya Birla Chemicals (India) (ABCIL) has been merged with the company on 4 January 2016 from the appointed date of 1 April 2015. Therefore, the current quarter results are not comparable with corresponding previous quarter.
On like-for-like basis excluding ABCIL numbers, Grasim Industries' consolidated net profit rose 3% to Rs 650 crore on 4% growth in net revenue to Rs 9044 crore in Q3 December 2015 over Q3 December 2014. EBITDA rose 4% to Rs 1795 crore in Q3 December 2015 over Q3 December 2014.
With regard to future business outlook, Grasim Industries said that the cement demand is expected to pick up in the near term with the Government's focus on infrastructure development, housing sector, smart cities, roads etc. The company is well positioned across the country to cater to the growth in demand, Grasim said in a statement.
ICICI Bank dropped 2.98% at Rs 223.25,with the stock extending losses registered in previous trading session after the bank reported a rise in bad loans in Q3 December 2015. The stock had declined 1.22% to settle at Rs 230.10 on Friday, 29 January 2016 after the bank announced Q3 results after market hours on 28 January 2016.
On the macro front, the Reserve Bank of India (RBI) will announce its sixth bi-monthly monetary policy for the year 2015-16 at 11:00 IST tomorrow, 2 February 2016. In the fifth bi-monthly monetary policy on 1 December 2015, the RBI kept its benchmark interest rate viz. the repo rate unchanged at 6.75% and the cash reserve ratio (CRR) for commercial banks unchanged at 4% of net demand and time liability (NDTL).
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