Key benchmark indices edged higher in early trade tracking firmness in global markets. At 9:25 IST, the barometer index, the S&P BSE Sensex rose 164.09 points or 0.51% at 32,546.55. The Nifty 50 index advanced 50.85 points or 0.51% at 10,071.50. Both the Sensex, and the Nifty, hit fresh record high.
The S&P BSE Mid-Cap index rose 0.46%. The S&P BSE Small-Cap index advanced 0.47%. Both these indices underperformed the Sensex.
Overseas, Asian stocks were trading mostly higher following the Federal Reserve's decision to leave interest rates unchanged and as a slew of corporate earnings began coming through.
US equities closed higher yesterday, 26 July 2017, on the back of strong earnings and following the Federal Reserve's decision to keep interest rates unchanged.
US Federal Reserve kept its benchmark interest rate unchanged after the conclusion of a two-day policy meeting yesterday, 26 July 2017. The Fed gave no clear signal about the chances for another increase this year or about any concerns about low inflation. But the central bank did confirm that it plans to begin to reduce its massive bond holdings relatively soon. The Fed had raised the target range for its federal funds rate by 25 basis points to 1% to 1.25% during its June 2017 meeting.
Closer home, the breadth, indicating the overall health of the market, was strong. On the BSE, 1,021 shares rose and 412 shares declined. A total of 62 shares were unchanged.
HCL Technologies was up 3.65% at Rs 924. The company's consolidated net profit fell 6.6% to Rs 2171 crore on 0.8% growth in revenue to Rs 12149 crore in Q1 June 2017 over Q4 March 2017. The result was announced before market hours today, 27 July 2017.
C. Vijayakumar, President & CEO, HCL Technologies, said that the company continues to propel forward on its Mode 1-2-3 growth strategy, delivering a revenue growth of 2.6% QoQ and 12.2% YoY in constant currency terms in Q1 June 2017. This quarter, it also expanded its EBIT margins from 20% to 20.1%, through continued superior execution in its core business, integration and assimilation of the acquired entities, as well as its IP investments.
HCL Technologies expects FY 2018 revenue to grow between 10.5% and 12.5% in constant currency terms. Operating margin (EBIT) in FY 2018 is expected in the range of 19.5% to 20.5%.
The company's board declared interim dividend of Rs 2 per share for the year ending March 2018.
State Bank of India (SBI) rose 0.52% after the bank announced that its board approved extension of validity period to raise the remaining Additional Tier I capital to the tune of Rs 2000 crore till 31 March 2018 and accordingly authorized bank to raise upto Rs 2000 crore Additional Tier I capital, by way of issue of Basel III compliant perpetual debt instruments in USD and/or INR, at par, through private placement to overseas and/or Indian investors, in such number of tranches, at such times as may be considered appropriate and on such coupons as may be decided at the time of actual issuance. The announcement was made after market hours yesterday, 26 July 2017.
The board had earlier authorized SBI to raise Additional Tier I capital upto Rs 11100 crore till 31 March 2017. The bank has raised Additional Tier I capital in domestic and overseas market to the tune of Rs 9100 crore during the financial year 2016-2017.
Tata Motors advanced 0.37% after the company announced that a committee of board approved offering for subscription, on a private placement basis, up to 10,000 rated, listed, unsecured, redeemable, non-convertible debentures (NCDs) E27-I series of face value Rs 10 lakh each, at par, aggregating up to Rs 1000 crore, comprising of two tranches of debentures of Rs 500 crore each. The announcement was made after market hours yesterday, 26 July 2017.
In a key political development, Bihar Chief Minister Nitish Kumar resigned yesterday, 26 July 2017, citing irreconcilable differences with ally RJD on the issue of corruption charges against his deputy Tejashwi Yadav. The sudden development throws the politics of Bihar into chaos with no party having a majority in the 243-member Assembly. Media reports suggested that Nitish Kumar would take oath at 10:00 IST today, 27 July 2017 as the head of the government that would include BJP and its allies.
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