Trading for the week started on a positive note as key benchmark indices settled with modest gains. The barometer index, the S&P BSE Sensex, rose 221.33 points or 0.69% to settle at 32,531.21, as per the provisional closing data. The Nifty 50 index rose 64.10 points or 0.64% to settle at 10,078.60, as per the provisional closing data. Sentiment was positive on market buzz that the Reserve Bank of India could cut rates in its meet scheduled later this week on 2 August 2017. Firmness in most global stocks also supported gains on the bourses.
After opening with small gains, key indices hovered within narrow range in the positive terrain till mid-morning trade. Later, indices extended intraday gains as the day's trade progressed.
The S&P BSE Mid-Cap index provisionally rose 0.39%. The S&P BSE Small-Cap index provisionally gained 0.15%. Both these indices underperformed the Sensex.
However, the breadth, indicating the overall health of the market, was negative. On the BSE, 1,393 shares fell and 1,274 shares rose. A total of 155 shares were unchanged.
The total turnover on BSE amounted to Rs 2975.54 crore, lower than turnover of Rs 3889.54 crore registered during the previous trading session.
The Sensex gained 236.62 points or 0.73% at the day's high of 32,546.50 in late trade, its highest level since 27 July 2017. The index gained 14.57 points or 0.04% at the day's low of 32,324.45 in early trade. The Nifty gained 71.40 points or 0.71% at the day's high of 10,085.90 in late trade, its highest level since 27 July 2017. The index rose 2.45 points or 0.02% at the day's low of 10,016.95 in early trade.
Metal & mining stocks gained as copper prices rose in global commodity markets. JSW Steel (up 2.64%), Bhushan Steel (up 1.68%), Vedanta (up 1.51%), Hindalco Industries (up 1.74%), Hindustan Zinc (up 1.19%), Jindal Steel & Power (up 2.27%), Tata Steel (up 3.02%), Steel Authority of India (Sail) (up 0.56%), National Aluminum Company (up 0.36%) and NMDC (up 3.26%) gained. Hindustan Copper shed 0.21%.
High Grade Copper for September 2017 delivery was currently up 1.06% at $2.9055 per pound on the COMEX.
State Bank of India rose 4.41% after the bank said that it has introduced a two tier saving bank interest rate from 31 July 2017. While balance above Rs 1 crore will continue to earn interest of 4% per annum, interest of 3.5% per annum shall be offered on balances of Rs 1 crore and below. The announcement was made during market hours today, 31 July 2017.
The decline in the rate of inflation and high real interest rates are the primary considerations warranting a revision in the rate of interest on saving bank deposits, bank said.
The revision in saving bank rate would enable the bank to maintain the Marginal Cost of Funds based Lending Rate (MCLR) at the existing rates, which was cut by 90 basis points from 1 January 2017 after large inflows post demonetization by the government.
NTPC gained 0.27% after net profit rose 12% to Rs 2618.17 crore on 4.3% rise in net sales to Rs 19879.32 crore in Q1 June 2017 over Q1 June 2016. The result was announced on Saturday, 29 July 2017.
Separately, NTPC's board approved the issue of secured/unsecured, redeemable, taxable/tax-free, cumulative/non-cumulative, non-convertible debentures upto Rs 15000 crore during the period commencing from the date of passing of Special Resolution in the ensuing Annual General Meeting till completion of one year thereof or the date of next Annual General Meeting in the financial year 2018-19 whichever is earlier.
Separately, NTPC said that Unit 1 of 800 megawatts (MW) of Kudgi Super Thermal Project, Stage-I (3 X 800 MW) is declared on commercial operation from 31 July 2107.
With this, the commercial capacity of Kudgi Super Thermal Power Project, NTPC and NTPC group has become 800 MW, 41,322 MW and 48,288 MW respectively. The announcement was made during market hours today, 31 July 2017.
Larsen & Toubro (L&T) gained 2.68% after consolidated net profit rose 50.60% to Rs 1028.30 crore on 9.59% rise in net sales to Rs 23810.86 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours on Friday, 28 July 2017.
L&T's net profit rose 2.09% to Rs 558.14 crore on 15.79% rise in net sales to Rs 13937.04 crore in Q1 June 2017 over Q1 June 2016.
L&T won new orders worth Rs 26352 crore at consolidated level in Q1 June 2017 in a challenging business environment. International orders at Rs 7885 crore, constituted 30% of the total order inflow. Major orders during the quarter were secured by infrastructure segment. Consolidated order book of the group stood at Rs 262860 crore as on 30 June 2017, marginally higher by 2% on a year on year basis. International order book constituted 26% of the total order book.
L&T said that prospects of a good monsoon, rural wage growth, pay hike for state government employees, lower lending rates and a modest pick-up in external demand are expected to catalyse GDP growth. The company said its focus continues to be on selective order intake, working capital reduction, cost optimization through strengthening execution operational efficiencies and productivity enhancement through digitalization and other initiatives. The company is optimistic of its growth aspirations in the medium term as the economic outlook improves.
Shriram Transport Finance Company gained 5.29% after net profit rose 19.94% to Rs 448.68 crore on 7.88% increase in total revenue to Rs 2899 crore in Q1 June 2017 over Q1 June 2016. The result was announced during market hours today, 31 July 2017.
Overseas, European stocks gained with shares of miners advancing on the last day of trade in July. Euro zone inflation was stable in July but its core measure, which is closely watched by the European Central Bank, went up to a four-year high flash estimates released by Eurostat showed. In a separate release, the European Union's statistics office said unemployment in the 19-country currency bloc dropped to its lowest level since 2009.
Most Asian stocks settled higher after a muted opening as what was a strong July for most markets in the region comes to a close. Meanwhile, there was another missile launch by North Korea late Friday, 28 July 2017, and experts said it put the continental US in range of Pyongyang's arsenal.
On the data front, growth in China's manufacturing sector slowed marginally in July. The official Purchasing Managers' Index (PMI) stood at 51.4 in July, down from the previous month's 51.7 but still well above the 50-point mark that separates growth from contraction on a monthly basis.
Japanese industrial production rose 1.6% on month in June, the Ministry of Economy, Trade and Industry said. The increase came after a 3.6% drop in May. Industrial output rose 1.9% in the April-June period from the previous quarter.
In US, the S&P 500 index and Nasdaq Composite index both finished slightly lower on Friday, 28 July 2017 for weekly losses as Amazon.com shares slumped on disappointing earnings, while the Dow Jones Industrials Average finished at a record for a weekly gain.
On the data front in US, a second-quarter reading on gross domestic product rose 2.6%, below the expectations. First-quarter GDP growth was revised to 1.2% from 1.4%. The final reading of the University of Michigan's consumer-sentiment survey for July was lifted to 93.4 from a preliminary 93.1. That's a decline, however, from June's level of 95.1.
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