Key benchmark indices continued to trade firm with small gains in mid-morning trade. At 11:20 IST, the barometer index, the S&P BSE Sensex, was up 102.25 points or 0.32% at 32,412.13. The Nifty 50 index was up 21.75 points or 0.22% at 10,036.25. Sentiment was positive on market buzz that the Reserve Bank of India could cut rates in its meet scheduled later this week on 2 August 2017.
Key indices held steady so far during the session after opening higher.
The S&P BSE Mid-Cap index rose 0.01%. The S&P BSE Small-Cap index gained 0.15%. Both these indices underperformed the Sensex.
The breadth, indicating the overall health of the market, was positive. On the BSE, 1,228 shares rose and 1,025 shares fell. A total of 108 shares were unchanged.
Larsen & Toubro (L&T) gained 2.8% after consolidated net profit rose 50.60% to Rs 1028.30 crore on 9.59% rise in net sales to Rs 23810.86 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours on Friday, 28 July 2017.
L&T's net profit rose 2.09% to Rs 558.14 crore on 15.79% rise in net sales to Rs 13937.04 crore in Q1 June 2017 over Q1 June 2016.
L&T won new orders worth Rs 26352 crore at consolidated level in Q1 June 2017 in a challenging business environment. International orders at Rs 7885 crore, constituted 30% of the total order inflow. Major orders during the quarter were secured by infrastructure segment. Consolidated order book of the group stood at Rs 262860 crore as on 30 June 2017, marginally higher by 2% on a year on year basis. International order book constituted 26% of the total order book.
L&T said that prospects of a good monsoon, rural wage growth, pay hike for state government employees, lower lending rates and a modest pick-up in external demand are expected to catalyse GDP growth. The company said its focus continues to be on selective order intake, working capital reduction, cost optimization through strengthening execution operational efficiencies and productivity enhancement through digitalization and other initiatives. The company is optimistic of its growth aspirations in the medium term as the economic outlook improves.
Shares of other capital goods stocks were mixed. Bharat Heavy Electricals (Bhel) (up 0.91%), BEML (up 1.72%), and ABB India (up 0.11%) gained. Bharat Electronics (down 0.39%), Thermax (down 1.42%), and Siemens (down 1.16%) declined.
Metal & mining stocks gained as copper prices rose in global commodity markets. JSW Steel (up 2.23%), Bhushan Steel (up 3.29%), Hindustan Copper (up 1.22%), Vedanta (up 2.2%), Hindalco Industries (up 1.3%), Hindustan Zinc (up 1.39%), Jindal Steel & Power (up 4.61%), Tata Steel (up 3.15%), Steel Authority of India (Sail) (up 1.84%), National Aluminum Company (up 2.66%) and NMDC (up 3.91%) gained.
High Grade Copper for September 2017 delivery was currently up 0.62% at $2.8945 per pound on the COMEX.
IL&FS Transportation Networks rose 5.36% after the company said it bagged a contract for Zojila tunnel project in Jammu and Kashmir to be completed in 7 years. The announcement was made after market hours on Friday, 28 July 2017.
The company said it had submitted the bid to the National Highways & Infrastructure Development Corporation for construction, operation and maintenance of 2-lane bi-directional Zojila tunnel with parallel escape tunnel on Srinagar-Leh section in Jammu & Kashmir on engineering, procurement and construction (EPC) mode.
IL&FS Transportation Networks said it emerged as the lowest bidder for the aforesaid project. The company quoted an amount of Rs 4899.42 crore to be constructed in a period of 7 years.
Central Bank of India lost 2.7% after the bank reported net loss of Rs 576.76 crore in Q1 June 2017, compared with net loss of Rs 599.81 crore in Q1 June 2016. The result was announced on Saturday, 29 July 2017.
Central Bank of India's total income rose 3.1% to Rs 6870.78 crore in Q1 June 2017 over Q1 June 2016.
The bank's gross non-performing assets (NPAs) rose to Rs 31398.47 crore as on 30 June 2017 as against Rs 27251.33 crore as on 31 March 2017 and Rs 25107.47 crore as on 30 June 2016. The ratio of gross NPAs to gross advances jumped to 18.23% as on 30 June 2017 as against 17.81% as on 31 March 2017 and 13.52% as on 30 June 2016. The ratio of net NPAs to net advances stood at 11.04% as on 30 June 2017 as against 10.2% as on 31 March 2017 and 8.17% as on 30 June 2016.
The bank's provisions and contingencies declined 17.8% to Rs 1269.02 crore in Q1 June 2017 over Q1 June 2016.
Seshasayee Paper and Boards fell 4.73% after net profit fell 9.8% to Rs 21.75 crore on 1.3% decrease in net sales to Rs 238.64 crore in Q1 June 2017 over Q1 June 2016. The result was announced on Saturday, 29 July 2017.
Overseas, Asian stocks were mixed. Meanwhile, there was another missile launch by North Korea late Friday, 28 July 2017, and experts said it put the continental US in range of Pyongyang's arsenal.
On the data front, growth in China's manufacturing sector slowed marginally in July. The official Purchasing Managers' Index (PMI) stood at 51.4 in July, down from the previous month's 51.7 but still well above the 50-point mark that separates growth from contraction on a monthly basis.
Japanese industrial production rose 1.6% on month in June, the Ministry of Economy, Trade and Industry said. The increase came after a 3.6% drop in May. Industrial output rose 1.9% in the April-June period from the previous quarter.
In US, the S&P 500 index and Nasdaq Composite index both finished slightly lower on Friday, 28 July 2017 for weekly losses as Amazon.com shares slumped on disappointing earnings, while the Dow Jones Industrials Average finished at a record for a weekly gain.
On the data front in US, a second-quarter reading on gross domestic product rose 2.6%, below the expectations. First-quarter GDP growth was revised to 1.2% from 1.4%. The final reading of the University of Michigan's consumer-sentiment survey for July was lifted to 93.4 from a preliminary 93.1. That's a decline, however, from June's level of 95.1.
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