Key benchmark indices were trading higher on a series of developments over the weekend, followed by Monday's coal sector reforms. The government promised on Monday, 20 October 2014, to open up the coal industry to private players, raising hopes of more reforms. Investors' sentiment was already buoyant by the government's announcement at the weekend of deregulation of diesel prices and increase in gas prices. Investors also cheered a strong showing of the Bharatiya Janata Party (BJP) in assembly election in Maharashtra and Haryana. The barometer index, the S&P BSE Sensex, was currently up 161.48 points or 0.61% at 26,591.33. The market breadth indicating the overall health of the market was strong with more than two gainers for every losers on BSE.
Cement, metal and power stocks were in demand on coal sector reforms. Coal India declined.
At 10:25 IST, the S&P BSE Sensex was up 161.48 points or 0.61% at 26,591.33. The index jumped 185.56 points at the day's high of 26,615.41 in early trading session, its highest level since 9 October 2014. The index rose 43.11 points at the day's low of 26472.96 in early trades.
The CNX Nifty was up 50.60 points or 0.64% at 7,930. The index hit a high of 7,933.85 in intraday trade. The index hit a low of 7,889.85 in intraday trade.
The BSE Mid-Cap index was up 89.04 points or 0.95% at 9,465.12. The BSE Small-Cap index was up 83.30 points or 0.80% at 10,446.75. Both theses indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong with more than two gainers for every losers on BSE. On BSE, 1297 shares rose while 597 shares declined. A total of 62 shares were unchanged.
Among the 30 Sensex shares, 23 rose and the remaining shares fell.
Coal India fell 1.66%. India's Coal Minister reportedly announced that the country will auction 74 coal-mining licenses to private companies within the next three to four months as the fallout from cancelled mining licenses continues to stay in the news.
According to media reports, the licenses will be auctioned to private-sector companies but only for captive use, meaning the coal can be only used by the companies and not sold to others.
Arun Jaitley, the country's finance minister, said that the issue needed to be discussed expeditiously as power, steel and cement companies were going to suffer due to nonavailability of coal mines.
Shares of power generation companies were in demand. Torrent Power (up 2.73%), Adani Power (up 2.52%), NTPC (up 2.51%), Tata Power (up 1.61%), JSW Energy (up 1.59%), NHPC (up 1.57%) and Reliance Power (up 1.35%), edged higher.
Shares of steel manufacturers rose. JSW Steel (up 2.27%), Tata Steel (up 1.49%), Steel Authority of India (up 1.15%) and Bhushan Steel (up 0.79%), edged higher.
Jindal Steel & Power (JSPL) rose 5.54% The company after market hours yesterday, 20 October 2014, in a clarification with regard to media news item titled "Coal Scam : CBI files fresh case against Jindal Steel" reiterated that all its actions are in keeping with the legal framework of the country & that the company complies with the law in letter & in spirit. JSPL continues to co-operate with all the authorities in a responsive manner, it added.
Shares of cement makers rose. JK Lakshmi Cement (up 2.54%), J K Cement (up 1.14%), ACC (up 0.97%), Ambuja Cements (up 0.73%), Shree Cement (up 0.61%), The Ramco Cement (up 0.32%) and Jaiprakash Associates (up 0.17%), edged hgiher. UltraTech Cement was down 0.10%.
HDFC Bank rose 0.79% as reports indicated that the Finance Ministry will take up HDFC Bank's proposal seeking an increase in foreign investment in the bank today, 21 October 2014. HDFC Bank has sought an increase in the FII limit to 74%. The bank will announce its Q2 results today, 21 October 2014.
Infosys rose 0.42%. The company after market hours yesterday, 20 October 2014 in a clarification with regard to media news item titled Infosys violated SEZ rules at Chandigarh tech park, says revenue department report" said that it has not issued any press release on this subject. Indian Express sent the company a query on this subject and the company issued its comments, Infosys said. Infosys has denied any wrong doing. Infosys said it doesn't consider this event as a material event and added that this has no impact on the operations or performance of the company.
Tata Motors rose 1.52%. The company after market hours yesterday, 20 October 2014 in a clarification with regard to media news item titled "Tata bags orders from state RTCs" said that it has got the orders as per the news published viz. CSTC order was for 120 Nos Low floor buses order received in April deliveries to start in October. Tripura order for 73 Buses Midi buses, order received in July 2014. Meghalaya order for 120 Buses Mini and Midi order received in August 2014. Assam order for 270 Buses Midi buses order received in August 2014. Chattisgarh order for 40 Buses AC Standard BRTS order received in May 2014. Total order received from All India till date under JNNURM 2 are 2,760 Nos. This includes 30 Nos received in September end for Articulated buses, Tata Motors said.
Shriram Transport Finance Company fell 2.51%. On a consolidated basis, the company reported 11.9% fall in net profit to Rs 310.04 crore on 7.49% rise in total income to Rs 2261.24 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 20 October 2014.
Just Dial fell 0.91%. The company reported 9.87% rise in net profit to Rs 31.49 crore on 28.52% rise in total income to Rs 155.91 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 20 October 2014. Just Dial's board of directors considered and approved raising of funds for an amount up to Rs 1000 crore through issue of equity or equity-linked securities, subject to approval of shareholders to be obtained through Postal Ballot.
SKS Microfinance rose 2.14%. The company's net profit jumped 247.3% to Rs 56.75 crore on 48.7% growth in total income to Rs 201.02 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 20 October 2014. Loan disbursements rose 73% to Rs 1693 crore in Q2 September 2014 over Q2 September 2013. Net interest income rose 63% to Rs 110 crore in Q2 September 2014 over Q2 September 2013. As on 30 September 2014, SKS Microfinance had a net worth of Rs 951 crore and capital adequacy of 33.2% (without the Reserve Bank of India dispensation of the Andhra Pradesh and Telangana provisioning). Cash and cash equivalents (excluding security deposit) stood at Rs 530 crore, the company said in a statement. The un-availed deferred tax benefit of Rs 522 crore will be available to offset tax on future taxable income, SKS Microfinance said. Given the carried forward tax loss, no tax provision was required for Q2 September 2014, the company said in a statement.
Sasken Communication Technologies (Sasken) rose 1.99% The company's consolidated net profit galloped 569.6% to Rs 92.14 crore on 4.4% decline in revenue to Rs 108.16 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 20 October 2014. Sasken's consolidated net profit galloped 1002% to Rs 92.14 crore in Q2 September 2014 over Q1 June 2013. Revenue was unchanged at Rs 108.16 crore in Q2 September 2014 on sequential basis. The company's consolidated EBITDA rose 2% to Rs 9.80 crore in Q2 September 2014 over Q2 September 2013. EBITDA declined 17% to Rs 9.80 crore in Q2 September 2014 over Q1 June 2014. The revenue contribution from the top five customers stood at 46.4% and from top ten customers at 64.7%, Sasken said in a statement
Swaraj Engines fell 2.64%. The company's net profit rose 2.9% to Rs 17.70 crore on 10.29% growth in net operating revenue to Rs 167.20 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours yesterday, 20 October 2014.
Operating profit rose 8% to Rs 24.60 crore in Q2 September 2014 over Q2 September 2013, in tandem with increased engines sales volume. However, due to higher depreciation to comply with the changes in Companies Act 2013 and CSR spend coupled with lower income on surplus funds, profit before tax (PBT) during the quarter stood almost unchanged at Rs 25.10 crore as in Q2 September 2013.
Swaraj Engines' board of directors at its meeting held yesterday, 20 October 2014, inter alia, appointed Sudhir Mankad as Chairman of the Board in place of G. P. Gupta who consequent to his resignation ceased to be the director of the company after the conclusion of the last Annual General Meeting of the company held on 31 July 2014.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Monday, 20 October 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 1,040.08 crore on that day.
In the foreign exchange market, The rupee opened marginally higher against the dollar. The partially convertible rupee was hovering at 61.26, compared with its close of 61.36 during the previous trading session.
Oil prices rose in Asian trade Tuesday, buoyed by strong industrial production data from China, the world's top energy consuming nation. Brent for December settlement was up 13 cents at $85.53 a barrel. The global Brent contract ended down 76 cents or 0.9% at $85.40 a barrel on Monday, 20 October 2014.
Asian stocks were mostly lower on Tuesday, 21 October 2014, as China's economy in the third quarter grew at its slowest pace in five years. Key benchmark indices in China, Indonesia, Hong Kong, Taiwan, Japan and South Korea were down by 0.12% to 1.18%. However, Singapore's Straits Times was up 0.26%.
China's economy in the third quarter grew at its slowest pace in five years as it battles a slumping real-estate market and weak domestic demand and industrial production. China posted a 7.3% year-over-year quarterly growth rate, according to the National Bureau of Statistics on Tuesday. That marked the lowest level since the first quarter of 2009, in the midst of the global financial crisis, when growth fell to 6.6%. The 7.3% third-quarter growth rate was down from 7.5% in the second quarter.
Value-added industrial output in China rose by a larger-than-expected 8% in September from a year earlier, accelerating from a 6.9% year-over-year increase in August, the statistics bureau said. Industrial production also increased 0.91% in September from August, when it rose 0.2% from the preceding month, it said.
Trading in US index futures indicated that the Dow could fall 50 points at the opening bell today, 21 October 2014. US equity investors began the week on an optimistic, albeit cautious, note on Monday, 20 October 2014, with gains in broader markets led by defensive sectors such as consumer staples and utilities. The Dow Jones Industrial Average closed 19.26 points, or 0.1%, higher at 16,399.67. The S&P 500 gained 17.25 points, or 0.9% to 1,904.01. The Nasdaq Composite rose 57.64 points, or 1.4%, to 4,316.07, led by gains in biotech and internet stocks.
The Federal Open Market Committee (FOMC) next undertakes a monetary policy review at a two-day meeting on 28-29 October 2014.
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