After extending intraday gains in morning trade, key benchmark indices trimmed gains in mid-morning trade. The market breadth indicating the overall health of the market turned negative from positive in mid-morning trade. The barometer index, the S&P BSE Sensex was currently up 32.25 points or 0.11% at 28,452.37. The gains for the 50-unit CNX Nifty were higher in percentage terms that those for the Sensex. The Nifty was currently up 18.30 points or 0.21% at 8,621.75.
IT stocks gained. Shares of IT major Infosys jumped after the company raised its full year revenue growth guidance in dollar terms at the time of announcing its Q1 June 2015 results during market hours today, 21 July 2015. Bharti Airtel surged after the company said that Bharti Airtel International (Netherlands) BV (Airtel) and leading telecommunications operator Orange have entered into an exclusive agreement concerning four Airtel subsidiaries in Africa. Hindustan Zinc dropped amid volatility after Q1 earnings. LIC Housing Finance rose after good Q1 results.
Earlier, the 50-unit CNX Nifty hit 13-1/2-week high in morning trade.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 714.40 crore yesterday, 20 July 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 848.76 crore yesterday, 20 July 2015, as per provisional data released by the stock exchanges.
In overseas stock markets, Asian stocks edged higher on the tail of strong corporate earnings in the US and China's stabilizing markets. US stocks closed mildly higher yesterday, 20 July 2015, with the Nasdaq at another record, as investors digested earnings reports.
At 11:18 IST, the S&P BSE Sensex was up 32.25 points or 0.11% at 28,452.37. The index gained 97.94 points at the day's high of 28,518.06 in morning trade. The index fell 65.31 points at the day's low of 28,354.81 in early trade.
The CNX Nifty was up 18.30 points or 0.21% at 8,621.75. The index hit a high of 8,646.75 in intraday trade, its highest level since 17 April 2015. The index hit a low of 8,588.25 in intraday trade.
The BSE Mid-Cap index was down 0.45 points at 11,249.65, underperforming the Sensex. The BSE Small-Cap index was up 19.18 points or 0.16% at 11,782.52, outperforming the Sensex.
The market breadth indicating the overall health of the market turned negative from positive in mid-morning trade. On BSE, 1,206 shares fell and 1,099 shares rose. A total of 95 shares were unchanged.
IT stocks edged higher. HCL Technologies (up 4.55%), Wipro (up 3.08%), Tech Mahindra (up 2.65%), MindTree (up 1.96%), Oracle Financial Services Software (up 0.43%), CMC (up 0.2%) and TCS (up 0.26%) edged higher.
Shares of IT major Infosys jumped after the company raised its full year revenue growth guidance in dollar terms at the time of announcing its Q1 June 2015 results during market hours today, 21 July 2015. The stock was up 9.99% at Rs 1,101.95. The stock hit a high of Rs 1,115 and a low of Rs 1,022.20 so far during the day. Infosys now expects its revenue to grow 7.2%-9.2% in dollar terms for the year ending 31 March 2016 (FY 2016). At the time of announcing Q4 March 2015 results in April 2015, Infosys had forecast 6.2% to 8.2% growth in the company's revenue in dollar terms for FY 2016.
Thanks to weakness of the rupee against the dollar, Infosys has raised full year revenue growth in rupee terms. Infosys now expects its revenue to grow 11.5%-13.5% in rupee terms for the year ending 31 March 2016 (FY 2016). At the time of announcing Q4 March 2015 results in April 2015, Infosys had forecast 8.4%-10.4% growth in the company's revenue in rupee terms for FY 2016. The revised guidance is based on rupee dollar exchange rate of 63.65.
The revenue growth guidance for FY 2016 has been kept unchanged at 10%-12% in constant currency terms.
Infosys' consolidated net profit fell 2.1% to Rs 3030 crore on 7% growth in revenue to Rs 14354 crore in Q1 June 2015 over Q4 March 2015. The results are as per International Financial Reporting Standards (IFRS).
Infosys' CFO Rajiv Bansal said that the company is operating within its stated margin band, balancing strategic investments and client focus with operational efficiencies. Pricing environment is competitive which the company is addressing through automation and improvement in productivity, Bansal said.
Bharti Airtel surged after the company said that Bharti Airtel International (Netherlands) BV (Airtel) and leading telecommunications operator Orange have entered into an exclusive agreement concerning four Airtel subsidiaries in Africa. The stock was up 4.54% at Rs 448.95. Orange and Airtel have entered into an exclusive agreements to explore the possible acquisition by Orange of Airtel's subsidiaries in Burkina Faso, Chad, Congo Brazzaville and Sierra Leone, a statement from Bharti Airtel and Orange said. There is no certainty of any binding agreement as a result of these discussions, the statement said. The announcement was made before market hours today, 21 July 2015.
Orange is one of the world's leading telecommunications operators with sales of 39 billion euro in 2014 and 1.55 lakh employees worldwide at 31 March 2015.
LIC Housing Finance rose after good Q1 results. The stock was up 0.61% at Rs 479.80. LIC Housing Finance's net profit rose 18.56% to Rs 382.13 crore on 16.58% rise in total income to Rs 2965.45 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 20 July 2015.
Hindustan Zinc dropped amid volatility after Q1 earnings. The stock was off 0.33% at Rs 165.80. The stock hit a high of Rs 170.05 and a low of Rs 165.10 so far during the day. Hindustan Zinc's net profit rose 18.73% to Rs 1920.80 crore on 12.6% rise in total income to Rs 4193.89 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 20 July 2015.
Revenues rose 21% to Rs 3596 crore in Q1 June 2015 over Q1 June 2014. The increase was driven by higher zinc volumes & LME prices and rupee depreciation. This was partly offset by lower prices & volumes of silver and lead as also lower zinc premium. Earnings before interest, tax, depreciation and amortization (EBITDA) increased by 24% to Rs 1672 crore in Q1 June 2015 over Q1 June 2014, due to higher revenues and lower cost of production, partly offset by one-time expense related to renewable energy purchase obligation for earlier years, higher royalty and District Mineral Foundation (DMF) provisioning. The exact quantum of DMF contribution is yet to be notified by the Government.
Higher net profit was driven by higher operating profit, partly offset by lower investment income due to mark to market losses on a small portion of the portfolio, which is expected to get recovered in the coming quarters. The investment corpus increased by 19% from a year ago. Tax provision for the quarter was lower due to one-time recognition of deferred tax asset of Rs 160 crore on brought forward short-term capital loss.
Mined metal production increased by 42% at 2.32 lakh metric tonne (MT) in Q1 June 2015 over Q1 June 2014. The increase was driven primarily by higher ore production from Rampura Agucha, Kayad and Sindesar Khurd mines. Mined metal production was lower by 14% sequentially, in-line with the mine plan. Integrated saleable zinc, lead and silver metal production during the quarter increased by 35%, 27% and 33% respectively compared to a year ago, though the growth was slightly lower than that of mined metal production and will be made up in the next quarter. Integrated metal production of zinc and lead was lower by 14% and 17% respectively from Q4 March 2015 on account of planned shutdowns.
In the year ended 31 March 2016 (FY 2016), mined metal production is expected to be higher from the year ended 31 March 2015 (FY 2015), while integrated refined metal production, including silver, will be significantly higher, as per earlier guidance.
Meanwhile, the three-week long monsoon session of Parliament begins today, 21 July 2015. The government is looking forward to push through key bills and get approval for the recently-promulgated ordinances in the monsoon session of the Parliament. The contentious Land Acquisition Bill remains stuck in Parliament due to stiff opposition, and the Prime Minister yesterday, 20 July 2015, urged parties to work collectively to break the logjam.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 20 July 2015, that the Southwest Monsoon was vigorous over West Madhya Pradesh and active over Gangetic West Bengal, East Rajasthan, Coastal Karnataka and South Interior Karnataka during 24 hours ending until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 7% below the Long Period Average (LPA) until 20 July 2015. Region wise, the rainfall was 15% below the LPA in Central India, 12% below the LPA in South Peninsula, 6% below the LPA in East & Northeast India and 9% above the LPA in Northwest India until 20 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key, with July being a crucial month for the sowing of Kharif crops. The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
In overseas stock markets, Asian stocks edged higher today, 21 July 2015, on the tail of strong corporate earnings in the US and China's stabilizing markets. In mainland China, the Shanghai Composite index was up 1.15%. In Hong Kong, the Hang Seng index was up 0.89%. In other Asian markets, key benchmark indices in Japan, Taiwan and South Korea were up 0.13% to 0.93%. In Singapore, the Straits Times was off 0.02%. Indonesian stock market was shut for a holiday.
Several Bank of Japan (BoJ) board members said the impact of the bank's massive stimulus might be fading, according to minutes of its June meeting released yesterday, 20 July 2015. The nine-member board agreed underlying inflation, which excludes volatile food and energy prices, would continue to improve in the long term, the minutes showed.
US stocks closed mildly higher yesterday, 20 July 2015, with the Nasdaq at another record, as investors digested earnings reports.
In Europe, Greece reportedly repaid the roughly 2 billion euros ($2.2 billion) it owed to the International Monetary Fund (IMF) yesterday, 20 July 2015. The country is paying its bills using a 7.16 billion euro bridging loan secured last week after it agreed to a series of harsh reforms. The measures, which have to be put into law, should result in the country receiving its third bailout.
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