Key benchmark indices edged higher in early trade. The market breadth indicating the overall health of the market was strong. The barometer index, the S&P BSE Sensex, was currently up 80.56 points or 0.29% at 27,641.94 .
Foreign portfolio investors sold shares worth a net Rs 859.94 crore on the previous trading session yesterday, 27 July 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 238.66 crore on the previous trading session yesterday, 27 July 2015, as per provisional data released by the stock exchanges.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month July 2015 series to August 2015 series. The near month July 2015 derivatives contracts expire on Thursday, 30 July 2015.
In overseas markets, most Asian shares declined. US stocks fell overnight after the steepest decline in Chinese stocks in eight years raised concerns that cooling growth in the world's No. 2 economy could hurt China's trading partners.
At 9:25 IST, the S&P BSE Sensex was up 80.56 points or 0.29% at 27,641.94. The index rose 100.08 points at the day's high of 27,661.46 at the onset of trading session. The index gained 37.03 points at the day's low of 27,598.41 at the onset of trading session.
The CNX Nifty was up 12.40 points or 0.15% at 8,373.40. The index hit a high of 8,391.75 in intraday trade. The index hit a low of 8,369.60 in intraday trade.
The BSE Mid-Cap index was up 45.06 points or 0.41% at 11,039.08. The BSE Small-Cap index was up 67.75 points or 0.59% at 11,610.86. Both these indices outerformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 817 shares rose and 254 shares fell. A total of 51 shares were unchanged.
Tech Mahindra was up 0.38%. The company's consolidated net profit rose 43.2% to Rs 676 crore on 2.9% growth in revenue to Rs 6294 crore in Q1 June 2015 over Q4 March 2015. The result was announced after market hours yesterday, 27 July 2015. Tech Mahindra's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 0.8% to Rs 936 crore in Q1 June 2015 over Q4 March 2015. Tech Mahindra said Q4 March 2015 results include the results of Lightbridge Communications Corporation (LCC), USA and SOFGEN Holdings (SOFGEN) which were acquired as 100% subsidiary effective from 2 January 2015 and 14 March 2015 respectively. In dollar terms, Tech Mahindra's consolidated net profit rose 40.5% to $106 million on 0.5% growth in revenue to $989 million in Q1 June 2015 over Q4 March 2015. The company's cash and cash equivalents as of 30 June 2015 stood at Rs 3350 crore.
Commenting on the company's Q1 performance, Vineet Nayyar, Executive Vice Chairman of Tech Mahindra said that the company's results are in line with expectations and the management remains hopeful of improving the company's performance by expanding its business in the coming quarters. C P Gurnani, Managing Director & CEO of Tech Mahindra said that the company's strategic investments and initiatives across Digital are resonating well with the businesses it serves.
Ambuja Cements was down 0.85%. The company's net profit fell 44.7% to Rs 226 crore on 7.9% decline in net sales to Rs 2493 crore in Q2 June 2015 over Q2 June 2014. The result was announced after market hours yesterday, 27 July 2015. Ambuja Cements attributed the decline in bottom line during the quarter to lower operating EBITDA (earnings before interest, taxation, depreciation and amortization) and due to additional depreciation charge of Rs 22 crore on implementation of Schedule II of the Companies Act, 2013. The company's operating EBITDA dropped 34.7% to Rs 384 crore in Q2 June 2015 over Q2 June 2014.
Ambuja Cements said that Q2 June 2015 witnessed muted cement demand. Sales volume increased marginally by 1.6% to 5.88 million tonnes in Q2 June 2015 over Q2 June 2014. However, due to decrease in selling price by approximately 10%, overall net sales value was lower by 7.9% in Q2 June 2015 over Q2 June 2014. Lower cost of input materials coupled with improved operational efficiencies has helped in reduction of overall costs, the company said. Nevertheless, these could not fully mitigate the impact of lower sales realisation, the company added.
With regard to future business outlook, Ambuja Cements said that mixed macro-economic indicators are pointing towards sluggish growth in cement demand in short term. With the onset of monsoon throughout the country, cement demand is expected to remain subdued in the next quarter, Ambuja Cements said. The long term outlook for cement demand remains positive due to Government's initiatives towards housing, concrete roads, smart cities and emphasis on infrastructure developments, the company said. Ambuja Cements said it would continue to focus on improving its performance.
Ambuja Cements' board of directors at its meeting held yesterday, 27 July 2015, approved the amalgamation of Dirk India, a 100% subsidiary of Ambuja Cements with the company, subject to necessary approvals.
Torrent Pharmaceuticals was up 5.94%. The company's consolidated net profit rose 75% to Rs 449 crore on 75% growth in revenue to Rs 1947 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 27 July 2015. The company's EBITDA (earnings before interest, taxation, depreciation and amortization) rose 156% to Rs 974 crore in Q1 June 2015 over Q1 June 2014. Torrent Pharmaceuticals attributed the exceptional growth in revenue and net profit in Q1 June 2015 to launch of a new product in US market, which currently has limited competition. The continuation of this is dependent on competitive market conditions, the company said in a statement.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in its daily monsoon update issued yesterday, 27 July 2015, that the Southwest Monsoon has been vigorous over Rajasthan and Gujarat state and active over Gangetic West Bengal, Odisha and West Madhya Pradesh during past 24 hours until 8:30 IST.
For the country as a whole, cumulative rainfall during this year's monsoon season was 4% below the Long Period Average (LPA) until 27 July 2015. Region wise, the rainfall was 15% below the LPA in South Peninsula, 7% below the LPA in East & Northeast India, 5% below the LPA in Central India and 11% above the LPA in Northwest India until 27 July 2015.
The quantum of and the spatial distribution of rainfall this month holds key; July accounts for about 33% of precipitation during the June-September monsoon season and is critical for 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.
Most Asian shares declined. Key benchmark indices in China, Singapore, Indonesia, Japan, South Korea and were down by 0.22% to 1.05%. Key benchmark indices in Hong Kong and Taiwan was up by 0.61% to 1.28%.
US stocks fell overnight after the steepest decline in Chinese stocks in eight years raised concerns that cooling growth in the world's No. 2 economy could hurt China's trading partners.
Meanwhile, a two-day policy meeting of the Federal Reserve Open Market Committee (FOMC) has been scheduled on Tuesday, 28 July 2015, and Wednesday, 29 July 2015, to decide on interest rates in the United States. The US central bank is widely expected to keep interest rates at a record low at the meeting, but expectations are rising that a rate hike could come later this year.
Powered by Capital Market - Live News
