Gains in global stocks triggered by prospect of more stimulus for the eurozone economy from the European Central Bank (ECB) aided upmove for Indian stocks. The barometer index, the S&P BSE Sensex, rose 183.15 points or 0.67% to settle at 27,470.81. The gains for the Sensex were higher in percentage terms than those for the 50-unit CNX Nifty index. The Nifty rose 43.75 points or 0.53% to settle at 8,295.45. Stocks of state-run companies, private sector banks and index heavyweights ITC, HDFC and Infosys led gains for key benchmark indices which remained in positive zone throughout the trading session.
The Sensex attained its highest closing level in more than 9 weeks. The Nifty attained 9-week closing high.
The Sensex rose 183.15 points or 0.67% to settle at 27,470.81, its highest closing level since 20 August 2015. The barometer index rose 267.40 points, or 0.98% at the day's high of 27,555.06. The index rose 134.05 points, or 0.49% at the day's low of 27,421.71.
The Nifty rose 43.75 points or 0.53% to settle at 8,295.45, its highest closing level since 21 August 2015. The index rose 76.40 points, or 0.93% at the day's high of 8,328.10, its highest level since 20 August 2015. The index rose 29.05 points, or 0.35% at the day's low of 8,280.75.
The market breadth indicating the overall health of the market turned negative from positive in late trade. On BSE, 1,428 shares fell and 1,289 shares rose. A total of 155 shares were unchanged. The BSE Mid-Cap index fell 0.26%. The BSE Small-Cap index fell 0.37%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 2531 crore, lower than turnover of Rs 2913.39 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Capital Goods index (down 1.56%), the S&P BSE Auto index (down 0.73%), the S&P BSE Teck index (down 0.4%), the S&P BSE Realty index (up 0.03%), the S&P BSE Consumer Durables index (up 0.17%), the S&P BSE Metal index (up 0.33%), the S&P BSE IT index (up 0.36%), the S&P BSE Healthcare index (up 0.37%) and the S&P BSE Power index (up 0.39%), underperformed the Sensex. The S&P BSE Oil & Gas index (up 0.81%), the S&P BSE FMCG index (up 1.08%) and the S&P BSE Bankex (up 1.30%), outperformed the Sensex.
In overseas stock markets, Asian and European stocks edged higher after the European Central Bank (ECB) signaled its readiness to expand its ongoing bond-buying program. After the conclusion of ECB's regular monetary policy meeting yesterday, 22 October 2015, ECB President Mario Draghi indicated at a press conference that the central bank could move next month to expand stimulus measures in the face of sluggish global growth that is exacerbating worries about persistently low inflation in the eurozone. The ECB embarked on a massive bond-buying program in March this year. US stocks surged yesterday, 22 October 2015, rallying on economic data, better-than-expected earnings and dovish comments from Draghi.
Index heavyweights and housing finance major HDFC rose 1.90% at Rs 1,340.85. The stock hit a high of Rs 1,344 and a low of Rs 1,321 in intraday trade.
Index heavyweights and cigarette major ITC rose 2.81% at Rs 358.30. The stock hit a high of Rs 358.90 and a low of Rs 351.95 in intraday trade.
Index heavyweights and IT major Infosys rose 0.96% at Rs 1,148.55. The stock hit a high of Rs 1,152 and a low of Rs 1,125.10 in intraday trade.
Index heavyweights and engineering & construction major L&T fell 2.58% at Rs 1,510.30. The stock hit a high of Rs 1,570.35 and a low of Rs 1,506.50 in intraday trade.
Shares of select state-run companies edged higher. ONGC (up 1.30%), Coal India (up 1.29%), NTPC (up 1.92%), Power Grid Corporation of India (up 0.22%), Bharat Heavy Electricals (up 0.72%), GAIL (India) (up 2.11%) and NMDC (up 0.74%) edged higher.
Shares of public sector oil marketing companies (PSU OMCs) edged higher. BPCL (up 1.17%) and Indian Oil Corporation (up 0.65%) gained. HPCL (down 0.44%) edged lower.
Cairn India edged higher after reporting a smaller-than-expected fall in second-quarter profit. The stock rose 2.73% at Rs 158.25. The company's consolidated net profit fell 70.46% to Rs 672.67 crore on 39.95% decline in total income to Rs 2743.28 crore in Q2 September 2015 over Q2 September 2014. The result was announced after market hours on Wednesday, 21 October 2015.
In the wake of sustained low crude price environment, Cairn India said that it is actively engaging with the government along with other industry players on various strategic issues, which include a revision of the cess charged on oil production to be in-line with crude prices, PSC Extension policy and fair price realization of domestically produced hydrocarbons amongst others. Mayank Ashar, Managing Director and CEO of Cairn India said that with good visibility in near term on multiple projects in the pipeline, the management is optimistic of the company meeting its production projections for the current financial year.
Idea Cellular lost 7.35% at Rs 140.45 after consolidated net profit dropped 13.06% to Rs 809.26 crore on 1.24% decline in total revenue to Rs 8689.06 crore in Q2 September 2015 over Q1 June 2015. The result was announced after market hours on Wednesday, 21 October 2015.
Idea Cellular's consolidated net profit rose 7.06% to Rs 809.26 crore on 13.48% growth in total income to Rs 8722.72 crore in Q2 September 2015 over Q2 September 2014.
Idea Cellular will launch its 4G LTE services in 10 service areas, covering 750 large and small towns by the first half of 2016.
IT major Wipro fell 1.68% at Rs 568.20. The stock hit a high of Rs 577.80 and a low of Rs 565.25 in intraday trade. The company's consolidated net profit rose 7% to Rs 2240 crore on 7% growth in gross revenue to Rs 12510 crore in Q2 September 2015 over Q2 September 2014. The results are as per International Financial Reporting Standards (IFRS). The company announced the results after market hours on Wednesday, 21 October 2015.
Wipro's revenue from IT services business rose 2.1% to $1.83 billion in Q2 September 2015 over Q1 June 2015. The sequential growth stood at 3.1% in constant currency terms. Wipro expects revenue from its IT services business to be in the range of $1.84 billion to $1.87 billion in Q3 December 2015. The company added 67 new customers in its IT services business in Q2 September 2015.
Sun Pharmaceutical Industries (Sun Pharma) fell 0.44% at Rs 884.90. The company after market hours on Wednesday, 21 October 2015, announced that the company along with its subsidiary has entered into a settlement agreement with Acorda Therapeutics. Inc. to resolve the pending patent litigation involving Ampyra (dalfampridine) extended-release tablets in the United States. As a result of the settlement agreement, Sun Pharma will be permitted to market a generic version of Ampyra in the United States at a specified date in 2027, or potentially earlier under certain circumstances, the company said. As per IMS MAT July 2015 data, Ampyra recorded annual sales of approximately $325 million in the US.
Shares of state-run banks witnessed a mixed trend. Syndicate Bank (up 2.75%), State Bank of India (up 1.26%), Canara Bank (up 0.54%), Allahabad Bank (up 0.52%), Corporation Bank (up 0.44%), UCO Bank (up 0.20%), Dena Bank (up 0.12%), Bank of India (up 0.11%) and IDBI Bank (up 0.06%), edged higher. Punjab National Bank (down 0.04%), Andhra Bank (down 0.44%), Punjab and Sind Bank (down 0.52%), Bank of Baroda (down 0.57%), Union Bank of India (down 0.65%), Bank of Maharashtra (down 0.73%), Vijaya Bank (down 0.94%) and Indian Bank (down 1.47%) edged lower.
PSU banks expect the problem of poor asset quality to remain for two to three quarters. This was stated by Chairmen and Managing Directors of various PSU banks during a meeting held recently under the Chairmanship Minister of State for Finance Jayant Sinha with Chairmen and Managing Directors of PSU banks to take stock of the progress of the reform measures for PSU banks announced by the government in August this year.
Shares of private sector banks were in demand. City Union Bank (up 3.32%), Axis Bank (up 2.81%), ICICI Bank (up 1.38%), Kotak Mahindra Bank (up 1.34%), HDFC Bank (up 1.19%), Yes Bank (up 0.67%) and IndusInd Bank (up 0.33%), edged higher. Federal Bank fell 0.78%.
The Reserve Bank of India (RBI) has announced that deposits mobilized by commercial banks under the Gold Monetisation Scheme, 2015 notified by the Central Government will attract cash reserve ratio (CRR) and statutory liquidity ratio (SLR) requirements. The RBI has allowed the stock of gold held by banks in their books under the Gold Monetisation Scheme, 2015 as an eligible asset for meeting the SLR requirement.
Asian Paints rose 0.09% to Rs 856.75. The company's net profit rose 11.92% to Rs 364.48 crore on 2.61% increase in total income to Rs 3122.98 crore in Q2 September 2015 over Q2 September 2014. The result was announced after trading hours today, 23 October 2015.
On a consolidated basis, net profit rose 14.89% to Rs 399 crore on 4.31% increase in total income to Rs 3836.87 crore in Q2 September 2015 over Q2 September 2014. The consolidated results for Q2 September 2015 include financials of Kadisco Paint and Adhesive Industry Share Company, (Ethiopia) in which the company's wholly owned subsidiary, Berger International Private Limited, Singapore acquired 51% stake on 9 February 2015. In view of this, the results for the quarter ended 30 September 2015 are not comparable with the results for the corresponding previous period, Asian Paints said.
Key indices snapped a 2-day losing streak. The Sensex had lost 77.26 points or 0.28% in the preceding two trading sessions to settle at 27,287.66 on 21 October 2015 from its close of 27,364.92 on 19 October 2015. The Sensex has risen 1,315.98 points or 5.03% in this month so far (till 23 October 2015). The Sensex has fallen 28.61 points or 0.10% in this calendar year so far (till 23 October 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 2,637.27 points or 10.62%. The Sensex is off 2,553.93 points or 8.51% from a record high of 30,024.74 hit on 4 March 2015.
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