Key benchmark indices were trading higher after hitting fresh intraday high in mid-morning trade. At 11:16 IST, the barometer index, the S&P BSE Sensex, was up 133.16 points or 0.42% at 32,037.56. The Nifty 50 index was up 36.20 points or 0.37% at 9,909.50. The Sensex was trading above the psychologically important 32,000 mark. Strong gains in index pivotal Reliance Industries and IT major Wipro boosted key indices.
The Sensex rose 157.83 points, or 0.49% at the day's high of 32,062.23 in mid-morning trade. The index rose 26.94 points, or 0.08% at the day's low of 31,931.34 in early trade. The Nifty rose 46.55 points, or 0.47% at the day's high of 9,919.85 in mid-morning trade. The index rose 5.50 points, or 0.06% at the day's low of 9,878.80 in early trade.
Among secondary barometers, the BSE Mid-Cap index was up 0.30%. The BSE Small-Cap index was up 0.35%. Both these indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,367 shares rose and 923 shares fell. A total of 128 shares were unchanged.
Most IT stocks rose. HCL Technologies (up 1.75%), Oracle Financial Services Software (up 1.12%), TCS (up 1.06%), Infosys (up 1.05%), Tech Mahindra (up 0.96%) and MphasiS (up 0.36%), edged higher. Persistent Systems (down 0.16%), Hexaware Technologies (down 0.41%) and MindTree (down 0.53%), edged lower.
IT major Wipro rose 6.90% to Rs 287.55 after the company at the time of announcing Q1 results said that its board approved buyback of shares up to Rs 11000 crore.
Wipro's consolidated net profit fell 8.13% to Rs 2082.60 crore on 3.09% fall in net sales to Rs 13626.10 crore in Q1 June 2017 over Q4 March 2017. The result was announced after market hours yesterday, 20 July 2017. The results are as per International Financial Reporting Standards (IFRS).
The company's consolidated revenue from IT services segment in dollar terms rose 0.9% to $1,971.7 million in Q1 June 2017 over Q4 March 2017.
Jatin Dalal, Chief Financial Officer of Wipro said that the impact on operating margins by rupee appreciation and salary increases was partially offset by strong business efficiencies. The company continues to sustain robust cash generation.
Wipro expects revenue from IT Services business to be in the range of $1,962 million to $2,001 million in Q2 September 2017.
Wipro's board of directors approved a buyback proposal of up to 34.37 crore shares (representing 7.06% of total paid-up equity capital) from the shareholders of the company on a proportionate basis by way of a tender offer at Rs 320 per equity share for an aggregate amount not exceeding Rs 11000 crore. Promoters have indicated their intention to participate in the proposed buyback.
Most telecom shares declined. Bharti Airtel (down 2.1%), Idea Cellular (down 2.06%) and Reliance Communications (down 0.41%), edged lower. MTNL (up 0.24%) and Tata Teleservices (Maharashtra) (up 0.53%), edged higher.
Telecom tower infrastructure provider Bharti Infratel was down 0.35%.
IT major Wipro jumped 6.69% to Rs 287 after the company at the time of announcing Q1 results said that its board approved buyback of shares up to Rs 11000 crore.
Wipro's consolidated net profit fell 8.13% to Rs 2082.60 crore on 3.09% fall in net sales to Rs 13626.10 crore in Q1 June 2017 over Q4 March 2017. The result was announced after market hours yesterday, 20 July 2017. The results are as per International Financial Reporting Standards (IFRS).
The company's consolidated revenue from IT services segment in dollar terms rose 0.9% to $1,971.7 million in Q1 June 2017 over Q4 March 2017.
Jatin Dalal, Chief Financial Officer of Wipro said that the impact on operating margins by rupee appreciation and salary increases was partially offset by strong business efficiencies. The company continues to sustain robust cash generation.
Wipro expects revenue from IT Services business to be in the range of $1,962 million to $2,001 million in Q2 September 2017.
Wipro's board of directors approved a buyback proposal of up to 34.37 crore shares (representing 7.06% of total paid-up equity capital) from the shareholders of the company on a proportionate basis by way of a tender offer at Rs 320 per equity share for an aggregate amount not exceeding Rs 11000 crore. Promoters have indicated their intention to participate in the proposed buyback.
Index pivotal Reliance Industries (RIL) rose 3.40% to Rs 1,580.75 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 surged 5.01% to Rs 196 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.
Sterlite Technologies spurted 15.21% to Rs 238.20 at 10:50 IST on BSE, with the stock extending recent rally triggered by the company posting highest ever order book of Rs 3140 crore at the end of Q1 June 2017. The company announced Q1 June 2017 results during market hours on 19 July 2017.
Sterlite Technologies' consolidated net profit fell 1.22% to Rs 67.83 crore on 2.21% rise in net sales to Rs 716.03 crore in Q1 June 2017 over Q4 March 2017.
Sterlite Tech reported highest ever quarterly revenues in Q1 June 2017, driven by strong order book and export sales. The company reported the highest ever quarterly export sales of Rs 320 crore and highest order book of Rs 3140 crore at the end of Q1 June 2017.
With positive shifts in technology, national policies and consumption patterns for the creation of smarter broadband infrastructure, Q1 June 2017 saw optical fibre demand showing a consistent upward trend in the global markets. This reflected with healthy increase in exports at 43% of revenues.
Overseas, Asian shares were mixed, 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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