Key benchmark indices jumped in tandem with global markets after centrist Emmanuel Macron pulled in the highest number of votes among candidates in the first round of the French presidential election on Sunday, 23 April 2017. The barometer index, the S&P BSE Sensex, rose 290.54 points or 0.99% to 29,655.84, as per the provisional closing data. The Nifty 50 index rose 96.55 points or 1.06% to 9,215.95, as per the provisional closing data.
The Sensex rose 316.03 points, or 1.08% at the day's high of 29,681.33 in mid-afternoon trade. The index rose 27.69 points, or 0.09% at the day's low of 29,392.99 at the onset of trading session. The Nifty rose 106 points, or 1.16% at the day's high of 9,225.40 in mid-afternoon trade. The index rose 11.15 points, or 0.12% at the day's low of 9,130.55 at the onset of trading session.
Among secondary barometers, the BSE Mid-Cap index provisionally rose 0.95%. The BSE Small-Cap index provisionally rose 0.82%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,619 shares rose and 1,273 shares fell. A total of 183 shares were unchanged.
The total turnover on BSE amounted to Rs 4344.58 crore, lower than turnover of Rs 7376.16 crore registered during the previous trading session on Friday, 21 April 2017.
Power generation stocks edged higher. Torrent Power (up 5.40%), Reliance Power (up 5.30%), Jaiprakash Power Ventures (up 5.03%), GMR Infrastructure (up 4.27%), Tata Power (up 2.38%), Adani Power (up 1.53%), Reliance Infrastructure (up 1.53%), NHPC (up 0.47%) and CESC (up 0.15%), edged higher. JSW Energy (down 0.47%) and NTPC (down 0.66%), edged lower.
State-run Coal India rose 0.18%. State-run Power Grid Corporation of India fell 0.27%.
Cement shares edged higher. Ambuja Cements rose 3.17%. Grasim Industries rose 4.19%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
UltraTech Cement rose 4.27%. The company's consolidated net profit declined 11.24% to Rs 726 crore on 2.59% growth in net sales to Rs 6922 crore in Q4 March 2017 over Q4 March 2016. The result was announced during market hours today, 24 April 2017.
The company's consolidated profit before interest, depreciation and tax (PBIDT) fell 1.74% to Rs 1577 crore in Q4 March 2017 over Q4 March 2016. UltraTech said that work on setting up the 3.5 million tonnes per annum (MTPA) integrated cement plant at Dhar, Madhya Pradesh is on track. Commercial production is expected to commence from Q4 of FY 2019. With this expansion and the acquisition of the cement plants of Jaiprakash Associates, the company's cement capacity will stand augmented to 95.4 MTPA, including its overseas operations.
Cement major ACC rose 7.67%. The company's consolidated net profit fell 9.05% to Rs 211 crore on 7.76% rise in sales to Rs 3108 crore in Q1 March 2017 over Q1 March 2016. The result was announced after market hours on Friday, 21 April 2017.
ACC said that cement volumes rose 3.77% to 6.6 million tonnes in Q1 March 2017 over Q1 March 2016, as the impact of demonetisation declined and benefits were delivered from ongoing customer excellence initiatives and higher sales from the expanded capacity at Jamul and Sindri plant. Operating earnings before interest, taxes, depreciation and amortization (EBITDA) fell 5.65% to Rs 417 crore in Q1 March 2017 over Q1 March 2016 as cost of petcoke, coal, packing materials and freight hardened. There was also a shortfall in regular availability of fly ash, a part of which was procured over longer leads entailing higher transportation costs. The profit before tax dropped 19.93% to Rs 261 crore in Q1 March 2017 over Q1 March 2016, impacted by a higher depreciation charge on account of commissioning of Jamul/Sindri project in the second half of 2016. The company in its outlook said that increased government spending on infrastructure development, housing, roads, railways, irrigation and other schemes as announced in the Union Budget are expected to reinvigorate the construction sector and boost demand for cement and concrete during 2017.
Overseas, European markets rallied while most Asian stocks ended higher after the centrist Emmanuel Macron won the first round of the French presidential election. Centrist candidate Emmanuel Macron won the first round of the French presidential election with 23.75% of the vote, advancing to the second and final vote with far-right Marine Le Pen who took 21.53%, which will take place on 7 May 2017.
Macron has promised to cut corporate tax rates gradually to 25% from the current 33%. He also wants to make France's 35-hour work week more flexible, and slash housing taxes for most people. He has pledged to cut public spending by 60 billion ($64 billion) a year, and plans an economic stimulus package worth 50 billion over five years. Macron is a free trade supporter and campaigned in favor of the EU's new agreement with Canada.
Marine Le Pen wants France to leave the euro, return to the franc, exit the Schengen agreement and close French borders for immigrants.
Tension on the Korean peninsula, however, concerned investors. North Korea reportedly arrested an American citizen in Pyongyang. The hermit state also indicated that it was prepared to sink a US aircraft carrier to showcase its military prowess.
US markets ended Friday's session lower ahead of the French vote, with the Dow Jones Industrial Average shedding 0.15% and the S&P 500 Index losing 0.30%.
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