Key benchmark indices came off day's low and were hovering in negative terrain in early afternoon trade. At 12:18 IST, the barometer index, the S&P BSE Sensex, was down 35.58 points or 0.11% at 33,230.58. The Nifty 50 index was down 13.45 points or 0.13% at 10,350.20. Telecom shares were mixed. Most cement shares rose.
Indices opened lower, tracking mixed cues in the Asian market. Trading turned volatile as the session proceeded as key benchmark indices re-entered negative terrain after hitting fresh intraday high in morning trade. Key benchmark indices hit fresh intraday low in mid-morning trade as selling pressure intensified.
The Sensex rose 28.14 points, or 0.08% at the day's high of 33,294.30 in morning trade. The index fell 91.17 points, or 0.27% at the day's low of 33,174.99 in mid-morning trade, its lowest level since 27 October 2017. The Nifty rose 4.05 points, or 0.04% at the day's high of 10,367.70 in morning trade. The index fell 39.70 points, or 0.38% at the day's low of 10,323.95 in mid-morning trade, its lowest level since 27 October 2017.
Among secondary barometers, the BSE Mid-Cap index was up 0.16%. The BSE Small-Cap index was up 0.39%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,293 shares rose and 1,193 shares fell. A total of 141 shares were unchanged.
Dr. Reddy's Laboratories was up 1.89%. On a consolidated basis, Dr Reddy's Laboratories' (DRL) net profit fell 3.42% to Rs 284.90 crore on 1.1% decline in revenue to Rs 3546 crore in Q2 September 2017 over Q2 September 2016. The result was announced during trading hours today, 31 October 2017.
The company's consolidated earnings before interest, tax, depreciation and amortization (EBITDA) grew by 7.28% to Rs 688.80 crore in Q2 September 2017 over Q2 September 2016. EBITDA margin improved to 19.4% in Q2 September 2017, from 17.9% in Q2 September 2016.
G.V. Prasad, CEO and Co-Chairman of DRL said that healthy performance in India, emerging markets, Europe and PSAI businesses as well as continued focus on cost control, have contributed to sequential growth in the company's top line as well as bottom line, with an EBITDA increase of 105% over the previous quarter. Looking ahead, DRL expects to see results from products launched in the US during the first half of this fiscal.
DRL will continue to focus on the launching of new products as well as on improving operational efficiencies and quality management systems across the company, Prasad said.
Tata Power Company was down 1.05%. The company announced that its board will consider issuing of non-convertible debentures (NCDs) on private placement basis at its meeting scheduled on 3 November 2017. The announcement was made during trading hours today, 31 October 2017.
LIC Housing Finance was down 1.66% after net profit fell 1.13% to Rs 489.12 crore on 6.49% growth in total revenue to Rs 3716.62 crore in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 30 October 2017.
Telecom shares were mixed. Tata Teleservices (Maharashtra) (up 4.99%) and Bharti Airtel (up 0.30%), edged higher. Idea Cellular was down 1.8%.
Telecom tower infrastructure provider Bharti Infratel was down 2.01%. The company's consolidated net profit fell 17% to Rs 638 crore on 11% growth in revenue to Rs 3648 crore in Q2 September 2017 over Q2 September 2016. The result was announced after market hours yesterday, 30 October 2017. The company's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) rose 12% to Rs 1634 crore in Q2 September 2017 over Q2 September 2016.
Akhil Gupta, Chairman, Bharti Infratel, said that Indian telecom has embraced the data centric model and is emerging as the showcase of digital technology with operators rolling out 4G networks and India planning a leadership role on upcoming 5G technology and associated applications. Leading operators have announced enhanced investment plans towards improvising digital infrastructure during the recently concluded India Mobile Congress.
The Government of India's Smart Cities program presents additional opportunity to create infrastructure for sharing on a non-discriminatory basis. All of this is good for the sector at large. As Bharti Infratel and Indus Towers is well positioned to grab its fair share of market and create sustainable value for all stakeholders, Akhil Gupta said.
Reliance Communications was up 7.96% after the company unveiled new debt repayment plan. Reliance Communications (RCom) yesterday, 30 October 2017 made a comprehensive debt resolution plan to its domestic and foreign lenders. RCom's debt resolution plan envisages no loan write-off by the lenders. The announcement was made after market hours yesterday, 30 October 2017.
RCom will pay off up to Rs 17000 crore of its debt, out of the proceeds of monetization of spectrum, towers and fiber and MCN (Media Convergence Nodes) assets. The company will pay additional Rs 10000 crore of its debt, out of the proceeds of sales and commercial development of DAKC and other prime real estate assets across 8-metros.
RCom said it is working closely with SBI Capital Markets, the advisors appointed by the lenders, to run a competitive process in a transparent manner to monetize the Spectrum, Tower and Fiber, MCNs and prime real estate assets. The company said debt of Rs 7000 crore is proposed to be converted into 51% of the company's equity, as per the strategic debt restructuring (SDR) guidelines of the Reserve Bank of India (RBI). RCom will have conservative level of debt of only Rs 6000 crore after the completion of the new repayment plan, the company said. The company is under a standstill period (for interest and principal repayments) till December 2018 and expects to complete the SDR process as per applicable RBI guidelines.
Most cement shares rose. Ambuja Cements (up 0.95%) and ACC (up 0.01%), edged higher. UltraTech Cement was down 0.82%.
Grasim Industries was up 2.77%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Overseas, Asian stocks were mixed following weak closing in the US market. Japan's Nikkei 225 ended lower by 0.04% after the Bank of Japan (BoJ) lowered some of its price forecasts and left policy unchanged Tuesday. The Japanese central bank voted 8-1 to keep its short- and long-term interest rates unchanged as it continues to inject huge amounts of cash into the financial sector in the hope of reaching its 2% inflation goal.
US stocks ended lower overnight as a report that the House of Representatives is considering phasing in a cut to corporate taxes rather than enacting them immediately weighed on investors' confidence. Tax cuts are the centerpiece in President Donald Trump's business-friendly agenda and are viewed as critical to sustaining the stock market rally. The Dow Jones Industrial Average shed 0.4%, the S&P 500 index fell 0.3%, and the Nasdaq Composite Index set a fresh intraday record, but slid 2.30 points to 6,698.96.
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