Key benchmark indices continued to hover in negative terrain in early afternoon trade as weakness in Asian stocks weighed on sentiment. At 12:17 IST, the barometer index, the S&P BSE Sensex was down 219.77 points or 0.78% at 27,871.65. The losses for the Nifty 50 index were lower in percentage terms than those for the Sensex. The Nifty was currently down 53.35 points or 0.61% at 8,637.95. The Sensex was currently hovering below the psychological 28,000 mark after falling below that mark in early trade. However, the market breadth was positive on select buying in mid-cap and small-cap stocks.
The Sensex lost 251.08 points or 0.89% at the day's low of 27,840.34 in mid-morning trade, its lowest level since 18 October 2016. The barometer index shed 40.87 points or 0.14% at the day's high of 28,050.55 in early trade. The Nifty lost 73.40 points or 0.84% at the day's low of 8,617.90 in morning trade, its lowest level since 18 October 2016. The index fell 34 points or 0.39% at the day's high of 8,657.30 in early trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,346 shares rose and 1,148 shares fell. A total of 197 shares were unchanged. The BSE Mid-Cap index was currently up 0.01%. The BSE Small-Cap index was currently up 0.32%. Both these indices outperformed the Sensex.
In overseas stock markets, Asian stocks dropped following in the footsteps of lower closing for US stocks overnight, which pulled back on disappointing earnings.
Most auto stocks gained. Mahindra & Mahindra (M&M) (up 1.01%), Ashok Leyland (up 0.34%), Maruti Suzuki India (up 1.05%), Bajaj Auto (up 1.25%), and TVS Motor Company (up 0.14%) gained. Eicher Motors (down 0.8%) and Tata Motors (down 2.19%) declined.
Hero MotoCorp rose 2.59% ahead of its Q2 results today, 26 October 2016.
Capital goods stocks also bucked weak market trend. Bharat Heavy Electricals (Bhel) (up 0.18%), Havells India (up 0.11%), ABB India (up 0.07%), Bharat Electronics (up 0.19%), L&T (up 0.18%), and Thermax (up 0.51%) gained. Siemens fell 0.75%.
Bharti Airtel rose 2.44% after consolidated net profit fell 4.9% to Rs 1461 crore on 3.4% rise in total revenues to Rs 24652 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 25 October 2016. Bharti Airtel said the consolidated revenues grew 5.6% to Rs 24652 crore in Q2 September 2016 over Q2 September 2015, on an underlying basis (viz. adjusted for Africa divested operating units and tower assets sale). Consolidated revenue growth was muted by 3.3% on account of full quarter impact of Nigeria currency devaluation. Bharti Airtel's consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 14.5% to Rs 9466 crore in Q2 September 2016 over Q2 September 2015. EBITDA margin was reported at 38.4% in Q2 September 2016, higher than 34.7% Q2 September 2015.
Gopal Vittal, MD and CEO, India & South Asia, said that the overall revenue momentum in India has been sustained during Q2 September 2016 with a growth of 10.1% Y-o-Y. This is primarily due to the strong performance of the company's non-mobile businesses which grew in aggregate at 18.8% Y-o-Y, albeit the company's mobile business has experienced a slowdown in growth due to free services being offered by a new operator.
In a separate announcement, Bharti Airtel announced that the board of directors of the company at its meeting held on 25 October 2016, has authorised a committee of directors to evaluate options for monetization of a significant stake in Bharti Infratel, in accordance with applicable regulations. The final outcome of this exercise will be placed before the board for approval, before any final decision is taken. Bharti Airtel has also requested Bharti Infratel to allow sharing of any information with any prospective buyer, subject to customary confidentiality arrangements. There is no certainty of any transaction until such time the board reviews and approves the final proposal. The announcement was made after market hours yesterday, 25 October 2016.
Bharti Infratel, India's leading telecom tower infrastructure provider, is a significant subsidiary of Bharti Airtel. Bharti Airtel has, in the past, divested stakes in Bharti Infratel to a clutch of private equity investors led by Temasek, KKR and other high quality investors in 2008. This was followed by an initial public offering (IPO) in the year 2012 and block sales in the stock market in 2014 and 2015. As on date Airtel holds 71.96% stake in Bharti Infratel.
Separately, Bharti announced during market hours today, 26 October 2016 that it launched an affordable 10 day validity pack for international roaming. The 10 day roaming pack starts at Rs 1199 ($19) for Singapore and Thailand offers unlimited free incoming calls, 2 GB data and 250 minutes of free calling to India and 100 free SMSes daily. A 10 day pack for US-Canada, UK is available for Rs 2,999 ($45).
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