Domestic stocks extended their recent record-setting spree on buying demand in index pivotals. The barometer index, the S&P BSE Sensex, rose 112.18 points or 0.30% to settle at 37,606.58. The Nifty 50 index rose 36.95 points or 0.33% to settle at 11,356.50. Both the Sensex and the Nifty hit record high on intraday as well as closing basis. Investors awaited the Reserve Bank of India's monetary policy decision tomorrow, 1 August 2018.
After trading in negative zone for most part of the session, indices spurted in late trade after the government unveiled fiscal deficit figures for Q1 June 2018. India's April-June fiscal deficit was reported at Rs 4.29 lakh crore, or 68.7% of the full-year budget estimate of Rs 6.24 lakh crore, Finance Ministry data showed. April-June revenue deficit came in at Rs 3.52 lakh crore or 85% of full year estimate of Rs 4.17 lakh crore. Net tax receipts in the first quarter of 2018-19 fiscal year that ends in March 2019 were Rs. 2.37 lakh crore, government data showed.
Among secondary barometers, the BSE Mid-Cap index rose 0.33%, outperforming the Sensex. The BSE Small-Cap index rose 0.26%, underperforming the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,494 shares rose and 1,159 shares fell. A total of 155 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Realty index (up 1.1%), the S&P BSE Consumer Durables index (up 1.01%), the S&P BSE Capital Goods index (up 0.95%) outperformed the Sensex. The S&P BSE Bankex (down 0.44%) and the S&P BSE Power index (up 0.06%) underperformed the Sensex.
Index heavyweight Reliance Industries (RIL) rose 3.14% to Rs 1,185.85.
FMCG major Hindustan Unilever (HUL) rose 2.52% to Rs 1,731.60.
Axis Bank lost 3.23% after the bank reported 46.3% fall in net profit to Rs 701.09 crore on 11.74% rise in total income to Rs 15702.01 crore in Q1 June 2018 over Q1 June 2017. The result was announced after market hours yesterday, 30 July 2018.
Axis Bank's core operating profit grew by 23% to Rs 4269 crore in Q1 June 2018 over Q1 June 2017. The bank's Net Interest Income (NII) grew by 12% to Rs 5167 crore. Net interest margin stood at 3.46% in Q1 June 2018.
As on 30 June 2018, the bank's gross NPA and net NPA levels were 6.52% and 3.09% respectively, as against 6.77% and 3.40% respectively as on 31 March 2018. Provision coverage, as a proportion of Gross NPAs including prudential write-offs, stood at 69%.
Idea Cellular fell 6.04%. On a consolidated basis, Idea Cellular reported net profit of Rs 256.50 crore in Q1 June 2018 as compared to net loss of Rs 814.90 crore in Q1 June 2017. Total income rose 14.42% to Rs 9454.90 crore in Q1 June 2018 over Q1 June 2017. The result was announced after market hours yesterday, 30 July 2018.
InterGlobe Aviation dropped 7.49% after the company reported 96.57% slide in net profit to Rs 27.79 crore on 14.49% rise in total income to Rs 6818.33 crore in Q1 June 2018 over Q1 June 2017. The result was announced after market hours yesterday, 30 July 2018.
InterGlobe Aviation said that the company's profitability was majorly impacted by the adverse impact of foreign exchange, high fuel prices and the competitive fare environment.
InterGlobe Aviation co-founder and interim CEO, Rahul Bhatia said the company added capacity into new routes and destinations domestically and also continued to connect international destinations to various cities in India.
Avenue Supermarts rose 3.77% after the company reported 43.39% rise in net profit to Rs 250.61 crore on 26.31% rise in total income to Rs 4573.67 crore in Q1 June 2018 over Q1 June 2017. The result was announced after market hours yesterday, 30 July 2018.
Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 39.4% to Rs 423 crore in Q1 June 2018 over Q1 June 2017. EBITDA margin rose to 9.3% in Q1 June 2018 from 8.4% in Q1 June 2017. Avenue Supermarts' said that the company follows everyday low cost - everyday low price (EDLC-EDLP) strategy which aims at procuring goods at competitive price, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices.
Neville Noronha, CEO & Managing Director, Avenue Supermarts said Q1 June 2018 has seen slightly lower gross margins which is a result of conscious effort to maintain or bring down prices for consumers across categories.
Realty stocks rose. DLF (up 3.34%), Housing Development and Infrastructure (up 19.65%), D B Realty (up 4.25%), Unitech (up 3.63%), Sobha (up 1.81%), Godrej Properties (up 0.1%) gained. Prestige Estates Projects (down 4.28%) and Indiabulls Real Estate (down 0.43%) fell.
Oberoi Realty rose 0.94% after consolidated net profit surged 238.65% Rs 309.42 crore on 230.78% jump in total income to Rs 896.47 crore in Q1 June 2018 over Q1 June 2017. The result was announced after market hours yesterday, 30 July 2018.
Oberoi Realty said that the company's order book stands at Rs 4429.62 crore at the end of Q1 June 2018 as against Rs 5360.82 crore at the end of Q4 March 2018 and Rs 5043.07 crore at the end of Q1 June 2017. Total area booked for Q1 June 2018 was 2.87 lakh sq. ft. as against 0.98 lakh sq. ft. booked in Q1 June 2017 and the total value was Rs 623.46 crore for Q1 June 2018 as against Rs 287.92 crore in Q1 June 2017.
On the macro front, the Reserve Bank of India's (RBI)'s Monetary Policy Committee (MPC) meets today, 31 July and tomorrow, 1 August 2018, for the third bi-monthly monetary policy statement for 2018-2019. The resolution of the MPC will be unveiled at 14:30 IST on 1 August 2018. RBI raised its benchmark policy repo rate by 0.25% to 6.25% in its second bi-monthly monetary policy for 2018-2019 on 6 June 2018.
Overseas, most European shares declined. Most Asian shares bounced back from early lows and settled higher. Growth in China's services industry in July moderated for the first time in five months, an official survey showed on Tuesday, a sign activity is slowing in a major part of the world's second largest economy. The official non-manufacturing Purchasing Managers' Index (PMI) fell to 54.0 from 55.0 in June, well above the 50-point mark that separates growth from contraction.
The Bank of Japan (BOJ) on Tuesday kept its ultra-easy monetary policy in place in a bid to stimulate inflation, which the central bank acknowledged will likely fall short of its 2% goal until at least 2021. The BOJ stuck to its overall policy framework despite a global wave of monetary tightening led by the Federal Reserve. The BOJ's nine-member policy board voted 7-2 to keep a key short-term interest rate at minus 0.1% and maintain its zero target for the yield on 10-year Japanese government bonds.
US market declined overnight amid weakness in the technology sector. On the data front, US pending home sales rose 0.9% in June, the National Association of Realtors said Monday.
The US Federal Reserve's Federal Open Market Committee, meanwhile, was due to begin its own monetary policy meeting on Tuesday US hours, with a decision due on Wednesday. The Fed is expected to keep rates steady at the end of its meeting.
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