Trading for the week ended on a strong note as key benchmark indices surged as market sentiment was boosted by hopes of a possible rate cut by the Reserve Bank of India after data released today, 14 August 2015 showed wholesale price index (WPI) for July 2015, slipped further into negative terrain and stood at -4.05% as compared to -2.4% in June 2015. Data earlier this week showed consumer price inflation tumbled in July 2015. The barometer index, the S&P BSE Sensex was settled above the psychological 28,000 mark after moving past that mark in afternoon trade. The Sensex jumped 517.78 points or 1.88% to settle at 28,067.31. The market breadth indicating the overall health of the market was strong. The BSE Mid-Cap index was up 2.36%, outperforming the Sensex. All the twelve sectoral indices on BSE were in the green. Key indices remained in positive terrain throughout the trading session.
Hindalco Industries rose after the company reported strong Q1 June 2015 earnings at the operational level. BPCL dropped after announcing strong Q1 results. Realty and bank stocks led rally on hopes of a rate cut by the central bank on falling inflation. Telecom stocks gained.
Key indices gained for the second day in a row today, 14 August 2015.
Meanwhile, the government is reportedly sounding out political parties over scheduling a two-day session of Parliament in September ahead of the Bihar elections to pass the Goods and Services Tax Bill, seen to be a crucial piece of tax reform linked to the Narendra Modi government's effort to improve ease of business and boost revenues. The monsoon session of Parliament ended yesterday, 13 August 2015, without passage of any major bills amid political tussle between the government and the opposition parties.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 489.91 crore into secondary equity market yesterday, 13 August 2015, as per data from National Securities Depository (NSDL). Domestic institutional investors (DIIs) bought shares worth a net Rs 545.86 crore yesterday, 13 August 2015, as per provisional data.
In overseas markets, European stocks edged lower in volatile trade. Asian stocks were mixed. US stocks closed mostly lower yesterday, 13 August 2015, following a choppy session marked by narrow gains and losses, as readings on retail sales and jobless claims suggested the US economy is on healthy footing.
The S&P BSE Sensex jumped 517.78 points or 1.88% to settle at 28,067.31, its highest closing level since 10 August 2015. The index surged 551.11 points at the day's high of 28,100.64 in late trade. The index rose 93.67 points at the day's low of 27,643.20 in early trade.
The CNX Nifty surged 162.70 points or 1.95% to settle at 8,518.55, its highest closing level since 10 August 2015. The index hit a high of 8,530.10 and a low of 8,381.20 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,790 shares gained and 1,054 shares fell. A total of 99 shares were unchanged.
The BSE Mid-Cap index rose 263.72 points or 2.36% to settle at 11,453.78, outperforming the Sensex. The BSE Small-Cap index gained 199.14 points or 1.72% to settle at 11,766.78, underperforming the Sensex.
Banks stocks gained on hopes of a rate cut by the central bank sighting falling inflation. Among private bank stocks, HDFC Bank (up 2.38%), Kotak Mahindra Bank (up 3.77%), ICICI Bank (up 3.58%), Axis Bank (up 0.77%), IndusInd Bank (up 3.72%) and Yes Bank (up 4.29%) rose.
Among PSU bank stocks, State Bank of India (SBI) (up 3.49%), Punjab National Bank (up 8.77%), Bank of Baroda (up 4.33%), Canara Bank (up 5.85%), IDBI Bank (up 5.58%), Bank of India (up 7.89%) and Union Bank of India (up 5.69%) gained.
Telecom stocks advanced. Bharti Airtel (up 2.76%), Idea Cellular (up 2.41%), MTNL (up 2.03%), Tata Teleservices (Maharashtra) (up 1.27%) and Reliance Communications (up 0.83%) gained.
Hindalco Industries rose after the company reported strong Q1 June 2015 earnings at the operational level. The stock rose 2.54%. The company's net profit fell 67.27% to Rs 107.19 crore on 6.78% rise in total income to Rs 8769.69 crore in Q1 June 2015 over Q1 June 2014. The Q1 result was announced during market hours today, 14 August 2015.
The company attributed the growth in top line during the quarter to higher volumes despite lower commodity prices.
The bottom line in Q1 June 2015 was adversely impacted by higher finance costs and depreciation charges due to additional capitalisation at both the Greenfield smelter complexes.
Hindalco Industries' finance costs jumped 78.1% to Rs 602 crore in Q1 June 2015 over Q1 June 2014. Depreciation charges surged 77.54% at Rs 332 crore in Q1 June 2015 over Q1 June 2014.
Hindalco Industries' earnings before interest, taxation, depreciation and amortization (EBITDA) rose 11.08% to Rs 1072 crore in Q1 June 2015 over Q1 June 2014.
Going forward, the operational performance is expected to be robust with the ramp-up of new facilities, Hindalco Industries said. Adverse metal realisation may pose a significant turbulence in the near term, the company added.
BPCL dropped after announcing Q1 results. The stock dropped 0.41%. The company's net profit jumped 95.36% to Rs 2376.16 crore on 22.88% decline in total income to Rs 52296.12 crore in Q1 June 2015 over Q1 June 2014. The result was announced during market hours. The average gross refining margin (GRM) for Q1 June 2015 was $8.55 per barrel compared with $3.38 per barrel in Q1 June 2014.
As advised by the Ministry of Petroleum & Natural Gas, BPCL has accounted compensation towards sharing of under-recoveries on sale of sensitive petroleum products. The company reported Rs 203.33 crore in Q1 June 2015 (Q1 June 2014: Rs 3830.56 crore) discount on crude oil/products purchased from ONGC/GAIL/NRL, which has been adjusted against the purchase cost.
The company recorded Rs 404.02 crore compensation advised by the Government of India by way of subsidy for Q1 June 2015 (Q1 June 2014: Rs 2407.96 crore) accounted as net sales from operations.
The net under-recovery absorbed by the company was NIL in Q1 June 2015 compared with Rs 503.87 crore in Q1 June 2014, on sale of petroleum products.
Realty stocks surged on hopes of a rate cut by the central bank sighting falling inflation. Sobha (up 1.97%), Indiabulls Real Estate (up 5.5%), Housing Development & Infrastructure (HDIL) (up 11.45%), and Phoenix Mills (up 0.67%) edged higher. Lower interest rates may help revive demand for properties. Purchases of both residential and commercial property are largely driven by finance.
DLF jumped 18.28%. On a consolidated basis, DLF's net profit fell 4.69% to Rs 122 crore on 26.67% increase in total income to Rs 2346 crore in Q1 June 2015 over Q1 June 2014. EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) rose 9% to Rs 942 crore in Q1 June 2015 over Q1 June 2014.
The company said it continues to focus on, execution of projects and expects to deliver approximately 20 msf over next few quarters, resulting in creation of finished product inventory. The company said it believes it would be more fruitful to be prepared for the up cycle in the market by readying finished stock rather than launching new projects in these tepid market conditions. The company added that is working towards creation of world class infrastructure augmenting its core market of DLF City including DLF5 and Cyber City and looks forward to replicate the same to other developments as well.
The committee of independent directors is expected to shortly provide guidance on the best way forward for the growth of the rental business and the best solution for resolving the CCPS issue, the company said in a statement.
The company said it believes that it has created a large platform of rent yielding office and retail assets, which it looks forward to partially monetise. This strategy shall allow the company to sharply reduce its debt, leading to resultant growth in shareholder value.
The company has commenced development of a new office complex in the Cyber City area in Gurgaon. It expects to commence commercial operations of the Mall of India, NOIDA, upon receipt of regulatory approvals, it said.
DLF further said that it remains committed to meet all its commitments towards all stakeholders and is grateful for the support of all stakeholders in these times.
Key indices gained for the second day in a row today, 14 August 2015. From a recent low of 27,512.26 on 12 August 2015, the Sensex has gained 555.05 points or 2.01% in two sessions. The Sensex has declined 47.25 points or 0.16% in this month so far (till 14 August 2015). The Sensex has risen 567.89 points or 2.06% in this calendar year so far (till 14 August 2015). From a 52-week low of 25,791.79 on 17 October 2014, the Sensex has risen 2,275.52 points or 8.82%. The Sensex is off 1,957.43 points or 6.51% from a record high of 30,024.74 hit on 4 March 2015.
On macro front, the government said inflation based on the wholesale price index (WPI) for July 2015 slipped further in negative terrain and stood at -4.05% (provisional) as compared to -2.4% (provisional) for the previous month and 5.41% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 0.8% compared to a build up rate of 2.61% in the corresponding period of the previous year. For the month of May, 2015, the final Wholesale Price Index stood at -2.2% as compared to -2.36% (provisional) respectively as reported on 15 June 2015. Due to a large base effect, inflation based on the consumer price index (CPI) eased sharply last month. CPI inflation eased to 3.78% in July 2015 from 5.4% in June 2015, according to the data released by the Ministry of Statistics & Programme Implementation earlier during the week on 12 August 2015.
Meanwhile, investors continue to watch the progress of the monsoon rains which will have a bearing on food prices and rural income. India's weather office, the India Meteorological Department (IMD), said in a weekly report issued yesterday, 13 August 2015, that the rainfall was 31% below normal for the country as a whole during the period from 6 August to 12 August 2015. Region wise, the rainfall was 8% below the Long Period Average (LPA) in South Peninsula, 13% below LPA in Northwest India, 44% below LPA in Central India and 45% below LPA in East & Northeast India during the period from 6 August to 12 August 2015.
As per IMD's extended range forecast till 19 August 2015, near normal rainfall activity is likely over central and northwest India during next 3-4 days. Subsequently rainfall would increase considerably along the foot hills of Himalayas, northeastern states & adjoining east India and Peninsula India.
In its separate daily monsoon update issued yesterday, 13 August 2015, that for the country as a whole, cumulative rainfall during this year's monsoon season was 9% below the Long Period Average (LPA) until 13 August 2015. Region wise, the rainfall was 20% below the LPA in South Peninsula, 13% below the LPA in East & Northeast India, 8% below the LPA in Central India and 1% above the LPA in Northwest India until 13 August 2015.
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 markets, European stocks edged lower in volatile trade today, 14 August 2015. Key benchmark indices in France, UK and Germany were down 0.01% to 0.26%.
The eurozone's economic recovery lost momentum in the second quarter, underscoring the deep-rooted fragility in the region as a cooling Chinese economy and lingering concerns about Greece's debts cloud its outlook. Gross domestic product growth slowed to 0.3% from 0.4% in the first quarter, missing economists' forecasts, the European Union statistical agency said today, 14 August 2015. That translates to an annualized rate of 1.3%, Eurostat said.
Germany's gross domestic product grew 0.4% from the previous quarter, data from the country's statistical agency, Destatis, showed today, 14 August 2015. Gross domestic product in the eurozone's second-largest economy, France was unchanged in the second quarter from the first, national statistics agency Insee said today, 14 August 2015. That was below economist forecasts and marked a sharp slowdown from the 0.7% jump in the first quarter. Insee previously estimated a 0.6% rise in the first quarter.
Consumer price inflation in the eurozone remained subdued in July, a sign that the European Central Bank's bond purchase program has yet to have its desired effect. Consumer prices in the 19 countries using the euro fell 0.6% on the month and rose 0.2% from July last year, the European Union's statistics agency said today, 14 August 2015.
Asian stocks were mixed today, 14 August 2015. Key indices in Hong Kong, Indonesia, Taiwan and Japan fell by 0.07% to 0.37%. Key indices in China, South Korea and Singapore were up 0.02% to 0.73%.
US stocks closed mostly lower yesterday, 13 August 2015, following a choppy session marked by narrow gains and losses, as readings on retail sales and jobless claims suggested the US economy is on healthy footing.
On macro front, US retail sales rose in July and were revised up for June, while the trend of weekly jobless claims pointed to a tightening job market.
Powered by Capital Market - Live News
