Key benchmark indices jumped on bargain hunting after losses in past five consecutive trading sessions. The barometer index, the S&P BSE Sensex, rose 235.44 points or 0.75% to 31,449.03, as per the provisional closing data. The Nifty 50 index rose 83.35 points or 0.86% to 9,794.15, as per the provisional closing data. Positive global cues also boosted investors' sentiment. Global stocks rallied as US inflation data dampened prospects of a rate hike this year.
The Sensex rose 312.81 points, or 1% at the day's high of 31526.40 in late trade, its highest level since 10 August 2017. The index rose 85.31 points, or 0.27% at the day's low of 31,298.90 in early trade. The Nifty rose 107.50 points, or 1.11% at the day's high of 9,818.30 in late trade, its highest level since 10 August 2017. The index rose 41.30 points, or 0.43% at the day's low of 9,752.10 in early trade.
Among secondary barometers, the BSE Mid-Cap index provisionally rose 2.49%. The BSE Small-Cap index provisionally rose 2.51%. Both these indices outperformed the Sensex.
The broad market depicted strength. There were almost three gainers against every loser on BSE. 1,859 shares rose and 713 shares fell. A total of 154 shares were unchanged.
The total turnover on BSE amounted to Rs 3121.95 crore, lower than turnover of Rs 4365.90 crore registered during the previous trading session.
Metal shares were in demand. Jindal Steel & Power (up 7.10%), National Aluminium Company (up 5.83%), Tata Steel (up 4.12%), Vedanta (up 3.86%), Hindalco Industries (up 3.83%), JSW Steel (up 3.80%), Hindustan Zinc (up 3.75%), Hindustan Copper (up 3.26%), Bhushan Steel (up 3.06%), NMDC (up 2.81%) and Steel Authority of India (up 2.65%), edged higher.
Meanwhile, copper price edged lower in the global commodities markets. High Grade Copper for September 2017 delivery was currently down 0.60% at $2.8945 per pound on the COMEX.
Tata Power Company rose 3.72% to Rs 79.50 after consolidated net profit jumped 68.3% to Rs 220.87 crore on 3.08% rise in total income to Rs 6999.90 crore in Q1 June 2017 over Q1 June 2016. The result was announced during market hours today, 14 August 2017.
Adani Ports & Special Economic Zone (APSEZ) gained 3.33% to Rs 396.70 after consolidated net profit fell 13.7% to Rs 710.25 crore on 50.3% rise in net sales to Rs 2745.14 crore in Q1 June 2017 over Q1 June 2016. The announcement of results was made on Saturday, 12 August 2017. The stock had dropped 7.27% in three sessions to settle at Rs 383.90 on 11 August 2017, from a close of Rs 414 on 8 August 2017 ahead of the results.
The company said that the net profit in Q1 June 2017 was lower due to higher tax incidence at Mundra Port which is now out of tax holiday period. However, from a tax cash flow angle, there is no change (impact) as minimum alternate tax (MAT) credit of earlier years is available to the tune of Rs 2700 crore.
Karan Adani, Chief Executive Officer and Whole Time Director of APSEZ said that the operations in port and logistic business continues to be robust. With string of ports across India providing multi point access to India's hinterland, the company expects cargo volumes to grow as per earlier guidance in FY 2018. Mundra port is on the verge of becoming the largest container handling port in India.
The company would continue to pursue plans to expand logistic foot prints by adopting asset light model. Higher capacity utilization, focus on operational efficiencies by automation and technology upgrades and focus on cost reduction will ensure higher cash flows, he added.
Drug major Sun Pharmaceutical Industries rose 4.42% to Rs 471.25 after consolidated adjusted net profit excluding the Modafinil settlement fell 74% at Rs 526 crore on 23% decline in sales to Rs 6167 crore in Q1 June 2017 over Q1 June 2016. The announcement was made after market hours on Friday, 11 August 2017.
Net profit for Q1 June 2017 was adversely impacted by settlements with certain plaintiffs related to the Modafinil antitrust litigation in the US, with the settlement amounting to Rs 950 crore. Net profit for Q1 June 2016 included the benefit of the 180-day exclusivity for Imatinib which expired in July-2016.
Dilip Shanghvi, Managing Director of the company said that Q1 performance was not good and not in line with the past performance due to the combined impact of increasing investments in global specialty business, temporary disruption in India business due to GST implementation, a challenging US generic pricing environment and the Modafinil settlement. The company expects performance to gradually improve in the second half of this year.
Separately, company said that all the necessary formalities for completion of acquisition of 2.03 lakh series A preferred stock-equivalent to 15.91% fully diluted equity stake on conversion, of Krystal Biotech Inc., have now been concluded. On 8 August 2017, the company had disclosed regarding agreement of said acquisition of Krystal Biotech Inc., United States of America.
State-run BPCL shed 1.23% to Rs 478.30 after net profit fell 71.6% to Rs 744.56 crore on 21.7% growth in net sales to Rs 57125.80 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours on Friday, 11 August 2017.
Average gross refining margin (GRM) fell to $4.88 per barrel in Q1 June 2017 from $6.09 per barrel in Q1 June 2016. The company has accounted compensation towards sharing of under-recoveries on sale of sensitive petroleum products of Rs 196.75 crore by way of subsidy for Q1 June 2017 compared to Rs 307.28 crore in Q1 June 2016 accounted as revenue from operations. The net under-recovery absorbed by the corporation on sale of sensitive petroleum products is nil in Q1 June 2017 and Q1 June 2016.
Bank of Baroda dropped 0.28% to Rs 142.15 after net profit fell 52% to Rs 203.39 crore on 1.9% rise in total income to Rs 12103.86 crore in Q1 June 2017 over Q1 June 2016. The announcement was made after market hours on Friday, 11 August 2017.
Gross non-performing assets (NPAs) rose to Rs 46172.77 crore as on 30 June 2017 as against Rs 42718.70 crore as on 31 March 2017 and Rs 42991.68 crore as on 30 June 2016. The ratio of gross NPAs to gross advances rose to 11.4% as on 30 June 2017 as against 10.46% as on 31 March 2017 and 11.15% as on 30 June 2016. The ratio of net NPAs to net advances rose to 5.17% as on 30 June 2017 as against 4.72% as on 31 March 2017 and 5.73% as on 30 June 2016. Provisions and contingencies rose 18.16% to Rs 2368.05 crore in Q1 June 2017 over Q1 June 2016. The Provision Coverage Ratio (PCR) stood at 66.28% as at 30 June 2017.
Separately, Bank of Baroda said that it allotted 8,500 Basel III compliant unsecured, perpetual bonds carrying coupon of 8.65% and face value of Rs 10 lakh each worth Rs 850 crore to ten allottees on 11 August 2017.
On a the macro front, the annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 1.88% (provisional) in July 2017 compared with 0.90% (provisional) in June 2017 and 0.63% in July 2016. The data was released during trading hours today, 14 August 2017.
India's industrial production in June 2017 contracted 0.1%, the lowest reading since June 2013, driven primarily by a 6.8% contraction in capital goods. Data for growth in the Index of Industrial Production (IIP) for May 2017 was revised to 2.8%. The fall in capital goods production was the most drastic contraction since September 2016. The data was announced after market hours on Friday, 11 August 2017.
The market will remain close on Tuesday, 15 August 2017, on account of Independence Day.
Overseas, European and Asian stocks were trading higher on bargain hunting after recent losses although broader sentiment was tempered by continued tensions between the United States and North Korea.
Gains among technology companies helped snap a three-day losing streak for US stocks on Friday, 11 August 2017. The Dow Jones Industrial Average rose 14.31 points to close at 21,858.32. The S&P 500 gained 3.11 points, or 0.1%, to end at 2,441.32. The Nasdaq Composite Index climbed 39.68 points, or 0.6%, to close at 6,256.56. Investors bet on slower US rate hikes following weaker-than-expected consumer price data. But gains were muted by increasingly aggressive exchanges between Washington and Pyongyang.
Geopolitical risks were expected to remain a key theme for the global markets in the near term, as North Korea celebrates Liberation Day on Tuesday, 15 August 2017, to mark the end of Japanese rule. Investors also braced for tensions ahead of 21 August 2017, when an annual joint US-South Korean military exercise is due to begin.
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