Key indices are trading higher in early trade on buying demand in index pivotals. At 9:21 IST, the barometer index, the S&P BSE Sensex, was up 133.08 points or 0.35% at 38,260.16. The Nifty 50 index was up 32.15 points or 0.28% at 11,337.20.
The S&P BSE Mid-Cap index was up 0.33%. The S&P BSE Small-Cap index was up 0.34%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 615 shares rose and 389 shares fell. A total of 62 shares were unchanged.
On the macro front, India's industrial production (base year 2011-12=100) declined 1.1% in August 2019, while snapping consistent growth for last 25 straight months. Also, the pace of decline in industrial production was highest in August 2019 for 2011-12 base year data. As per the revised data for industrial production of July 2019, the growth is higher at 4.6% compared with 4.3% growth reported provisionally. The data was announced after market hours on Friday, 11 October 2019.
India's growth rate is projected to fall to 6% in this fiscal year, the World Bank said. In 2018-19, the growth rate of the country stood at 6.9%. However, the bank in its latest edition of the South Asia Economic Focus said the country was expected to gradually recover to 6.9% in 2021 and 7.2% in 2022 as it assumed that the monetary stance would remain accommodative, given benign price dynamics.
Among stocks, software major Infosys lost 3.03%. Infosys' consolidated net profit rose 5.8% to Rs 4019 crore on a 3.8% increase in revenue from operations to Rs 22,629 crore in Q2 September 2019 over Q1 June 2019. The result was announced after market hours on Friday, 11 October 2019.
The company's operating margin stood at 21.7% in Q2 September 2019 compared with 20.5% in Q1 June 2019. The firm increased lower end of FY2020 revenue guidance. Revised guidance is 9%-10% in constant currency. It maintained FY2020 operating margin guidance range of 21%-23%.
"Our performance was robust on multiple dimensions -revenue growth, digital growth, operating margins, operational efficiencies, large deal signings and reduction in attrition, said Salil Parekh, CEO and MD.
Hindustan Unilever rose 0.51% ahead of its quarterly result today, 14 October 2019.
Bank of Baroda dropped 2.59%. Bank of Baroda has entered into binding transaction documents with BNP Paribas Asset Management Asia in relation to merger of Baroda Asset Management India with BNP Paribas Asset Management India and merger of BNP Paribas Trustee India with Baroda Trustee India. The announcement was made after market hours on Friday, 11 October 2019.
Avenue Supermarts fell 0.63%. On a consolidated basis, Avenue Supermarts' net profit rose 47.49% to Rs 323 crore on 22.44% increase in total revenue to Rs 5991 crore in Q2 September 2019 over Q2 September 2018. The result was announced on Saturday, 12 October 2019.
Consolidated EBITDA rose 33.25% to Rs 517 crore during the period under review. EBITDA margin improved to 8.6% in Q2 September 2019 from 7.9% in Q2 September 2018.
Bajaj Consumer Care slipped 0.89%. On a consolidated basis, Bajaj Consumer Care's net profit rose 11.2% to Rs 56.03 crore on a 3.2% increase in net sales to Rs 214.22 crore in Q2 September 2019 over Q2 September 2018. The result was announced after market hours on Friday, 11 October 2019.
Overseas, Asian shares were trading higher on Monday as investors were heartened by Friday's announcement of a partial trade deal between the U.S. and China. Japan's Nikkei was closed for a holiday.
US stocks gained on Friday after the announcement of a partial trade deal between the United States and China.
President Trump said that the U.S. and China had reached a substantial, phase-one deal to ease trade tensions that will include Chinese promises to buy $40 - $50 billion more U.S. agricultural products in exchange for eliminating a planned increase in tariffs that had been set to into effect October 15. No decision has been made yet on planned on a new 15% tariff set to go into effect on December 15 on about $160 billion in annual Chinese imports.
Federal Reserve announced that it would buy $60 billion of Treasury bills every month at least into the second-quarter, starting from next week. The central bank also said it would conduct overnight repurchase agreements at least through January of next year in order to reduce pressures in funding markets.
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