Key benchmark indices hit intraday low in negative zone in afternoon trade as European equity markets edged lower in early trade. However, gains in index pivotals Reliance Industries (RIL) and Wipro cushioned sharp slide on the domestic bourses. At 13:19 IST, the barometer index, the S&P BSE Sensex, was down 37.26 points or 0.12% at 31,867.14. The Nifty 50 index was down 21.20 points or 0.21% at 9,852.10. The Sensex was trading below the psychologically important 32,000 mark after crossing that level in intraday trade.
Among secondary barometers, the BSE Mid-Cap index was off 0.46%. The BSE Small-Cap index was off 0.51%. The fall in both these indices was higher than the Sensex's decline in percentage terms.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,284 shares rose and 1,120 shares fell. A total of 138 shares were unchanged.
Most FMCG stocks rose . Godrej Consumer Products (up 1.27%), Hindustan Unilever (up 0.03%), Marico (up 0.81%), Britannia Industries (up 0.37%), GlaxoSmithkline Consumer Healthcare (up 0.45%), Colgate-Palmolive (India) (up 0.14%), Procter & Gamble Hygiene and Health Care (up 1.34%), Jyothy Laboratories (up 0.73%) and Bajaj Corp (up 2.07%) rose. Dabur India (down 0.46%), Nestle India (down 0.56%), Tata Global Beverages (down 0.55%) fell.
Cement stocks saw mixed trend. Ambuja Cements (up 0.15%) and UltraTech Cement (up 0.06%) rose. Shree Cement (down 0.63%) and ACC (down 0.93%) fell.
Grasim Industries was off 1.57%. Grasim has exposure to the cement sector through its holding in UltraTech Cement.
Index pivotal Reliance Industries (RIL) advanced 2.95% to Rs 1,573.75 after consolidated net profit rose 28% to Rs 9108 crore on 26.7% rise in revenue to Rs 90537 crore in Q1 June 2017 over Q1 June 2016. The announcement was made after market hours yesterday, 20 July 2017.
RIL's increase in revenue is primarily on account of increase in prices and volumes of refining and petrochemical products partially offset by lower prices and volumes from exploration and production (E&P) business. Revenue was also boosted by robust growth in retail business which recorded a 73.6% increase in revenue to Rs 11571 crore. Reliance Retail witnessed growth across all consumption baskets during the quarter.
Strong refining and petrochemicals margin environment contributed to higher operating profits for the quarter. Gross refining margins recorded nine-year-high of $ 11.9 per bbl whereas petrochemicals EBIT (earnings before interest and depreciation) margin were at all-time high of 15.8%. Gross refining margin rose to $11.9 per barrel in Q1 June 2017 from $11.5 per barrel in Q1 June 2016.
Meanwhile, the board of directors of RIL considered and approved an investment in Balaji Telefilms (BTL), to acquire 2.52 crore equity shares constituting 24.92% of BTL's equity, through subscription to preferential issue of shares by BTL to RIL for cash consideration of Rs 164 per equity share amounting to an investment of Rs 413.28 crore. This investment in content production (including digital content) is in line with RIL's commitment to invest and grow in telecom digital and media businesses.
Media company Balaji Telefilms rose 1.31% to Rs 189.10 after the company said its board approved preferential issue of 2.52 crore shares of the company at Rs 164 per share, aggregating Rs 413.28 crore to Reliance Industries. The announcement was made after market hours yesterday, 20 July 2017.
Indian Bank rose 0.44% after net profit increased 21.16% to Rs 372.40 crore on 3.79% growth in total income to Rs 4788.04 crore in Q1 June 2017 over Q1 June 2016. The result was announced during market hours today, 21 July 2017.
The bank's gross non-performing assets (NPAs) stood at Rs 9653.01 crore as on 30 June 2017 as against Rs 9865.13 crore as on 31 March 2017 and Rs 8894.23 crore as on 30 June 2016.
The ratio of gross NPAs to gross advances stood at 7.21% as on 30 June 2017 as against 7.47% as on 31 March 2017 and 6.97% as on 30 June 2016. The ratio of net NPAs to net advances stood at 4.05% as on 30 June 2017 as against 4.39% as on 31 March 2017 and 4.48% as on 30 June 2016. The bank's provisions and contingencies surged 71.59% to Rs 715.55 crore in Q1 June 2017 over Q1 June 2016.
Overseas, European equity markets were trading lower in early trade echoing moves in Asia. Most Asian shares declined, taking a breather from recent upmove and after the European Central Bank (ECB) took a dovish stance on policy and its ongoing stimulus program.
ECB left its key interest rates unchanged on Thursday. The ECB also reiterated its plan to purchase 60 billion euros worth of government bonds and other assets each month through December.
US stocks finished mostly lower on Thursday as Home Depot weighed on the Dow, but the Nasdaq bucked the trend to match its best win streak since February 2015 and closed at a record. The Dow Jones Industrial Average shed 28.97 points, or 0.1%, to end at 21,611.78. The Nasdaq Composite Index edged up 4.96 points to close at 6,390, rising for a 10th session in a row. The S&P 500 index slipped 0.38 points to finish at 2,473.45.
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