Key benchmark indices extended gains and hit fresh intraday high in afternoon trade. The barometer index, the S&P BSE Sensex and the 50-unit CNX Nifty, both, scaled lifetime high. The Sensex was currently up 188.12 points or 0.72% to 26,291.35. The market breadth indicating the overall health of the market was strong with two gainers for every loser. The BSE Mid-Cap index was up 1.49%. The BSE Small-Cap index was up 1.91%. Both these indices outperformed the Sensex. Decline in crude oil prices boosted investor sentiment. In his Independence Day address to the nation, Prime Minister Narendra Modi on Friday, 15 August 2014, stressed on the need to promote the manufacturing sector. A day later, Modi stressed on the government's thrust on infrastructure development. Sentiment was also boosted by strong gains in European stocks today, 18 August 2014 on signs of easing geopolitical tensions in Ukraine.
Cipla reversed intraday fall in volatile trade after the company's margins expanded sequentially by nearly 4 percentage points to 20% in Q1 June 2014 over Q4 March 2014. Tata Power Company (TPC) rose after the state electricity regulator Maharashtra Electricity Regulatory Commission (MERC) granted 25 years distribution licence to Tata Power for supplying power in Mumbai city and suburban areas. Cement stocks were in demand on renewed buying. Birla Corporation scaled record high. Telecom stocks were in demand on renewed buying. Reliance Communications reversed intraday fall. Idea Cellular gained on high volume on account of a large bulk deal executed on the counter on NSE.
The market sentiment was boosted by data showing that foreign portfolio investors (FPIs) were net buyers of Indian stocks on Thursday, 14 August 2014.
Key benchmark indices have retained positive zone after a relatively steady start.
At 13:16 IST, the S&P BSE Sensex was up 188.12 points or 0.72% to 26,291.35. The index jumped 199.29 points at the day's high of 26,302.52 in afternoon trade, a record high for the barometer index. The index fell 27.95 points at the day's low of 26,075.28 in early trade.
The CNX Nifty was up 54.50 points or 0.7% to 7,846.20. The index hit a high of 7,848.30 in intraday trade, a record high. The index hit a low of 7,779.20 in intraday trade.
The market breadth indicating the overall health of the market was strong with two gainers for every loser. On BSE, 1,785 shares gained and 889 shares fell. A total of 99 shares were unchanged.
The total turnover on BSE amounted to Rs 1479 crore by 13:15 IST.
The BSE Mid-Cap index was up 134.57 points or 1.49% at 9,142.42. The BSE Small-Cap index was up 187.22 points or 1.91% at 10,011.28. Both these indices outperformed the Sensex.
Cipla gained 2.5% to Rs 459.20, with the stock reversing intraday fall. The stock was volatile. The stock hit high of Rs 459.80 and low of Rs 442 so far during the day. Cipla in post-result conference call said that the company expects mid-teens revenues growth with over 20% earnings before interest, taxation, depreciation and amortization (EBITDA) margins in the year ending 31 March 2015.
The company's consolidated net profit declined 39.17% to Rs 295 crore on 13.6% growth in net sales to Rs 2647 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Thursday, 14 August 2014. The stock market was closed on Friday, 15 August 2014, on account of Independence Day.
Cipla's income from operations rose 8.3% to Rs 2720 crore in Q1 June 2014 over Q1 June 2013. EBITDA declined 21.44% to Rs 542 crore in Q1 June 2014 over Q1 June 2013. EBITDA in Q1 June 2013 includes certain large one-off items.
Domestic sales rose 17% to Rs 1289 crore in Q1 June 2014 over Q1 June 2013, largely driven by growth in respiratory, anti-infective and cardiac therapies, Cipla said in a statement. Exports and formulations rose 12.7% to Rs 1218 crore in Q1 June 2014 over Q1 June 2013. Exports of APIs declined 5.4% to Rs 140 crore in Q1 June 2014 over Q1 June 2013. The growth in export revenues was primarily due to growth in anti-retroviral, anti-asthma and anti-allergic segments, Cipla said in a statement.
Cipla said that the current year figures include the relevant results of Cipla's subsidiaries from the date they became subsidiary of the company and therefore the corresponding figures for the previous period are not comparable.
Tata Power Company (TPC) rose 2.87% after the state electricity regulator Maharashtra Electricity Regulatory Commission (MERC) granted 25 years distribution licence to Tata Power for supplying power in Mumbai city and suburban areas.
MERC in its order has allowed TPC to supply electricity in Mumbai city, parts of suburban areas including Bandra to Dahisar in Western suburbs; Chunabhatti to Vikhroli and Mankhurd in Eastern suburbs for 25 years. It has also been granted licence to supply electricity in areas of Mira-Bhayander Municipal Corporation, Chene and Versova which were earlier not a part of its licence area.
Cement stocks were in demand on renewed buying. Ambuja Cements (up 1.47%), ACC (up 0.87%), UltraTech Cement (up 1.05%) and Shree Cement (up 2.48%) gained.
Grasim Industries was up 0.17% at Rs 3,335. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
Birla Corporation surged 4.26% to Rs 555.25 after scaling a record high of Rs 566 in intraday trade.
Telecom stocks were in demand on renewed buying. Bharti Airtel (up 2.16%), MTNL (up 3.58%), Tata Teleservices (Maharashtra) (up 4.76%) gained.
Reliance Communications gained 2.11%, with the stock reversing intraday fall. The stock hit high of Rs 123.40 and low of Rs 118.30 so far during the day. The company's consolidated net profit rose 21.4% to Rs 132 crore on 2.1% growth in revenue to Rs 5523 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Thursday, 14 August 2014.
RCom's total EBITDA rose 9.5% to Rs 1863 crore in Q1 June 2014 over Q1 June 2013. EBITDA margin stood at 33.7% in Q1 June 2014, amongst the highest in the industry, with strong contribution from both India and Global businesses, RCom said in a statement.
Revenue from India operations rose 1.3% to Rs 4718 crore in Q1 June 2014 over Q1 June 2013. EBITDA of India operations rose 16% to Rs 1693 crore in Q1 June 2014 over Q1 June 2013. Revenue from Global operations declined 5.1% to Rs 1073 crore in Q1 June 2014 over Q1 June 2013.
RCom generated operational cash flow (EBITDA) of Rs 1863 crore in Q1 June 2014, paid net finance charges of Rs 767 crore and invested Rs 415 crore on capex during the quarter. The company remains free cash flow (FCF) positive and this is expected to continue, RCom said in a statement.
Idea Cellular gained 3.29% to Rs 161.85. The stock saw high volume of 93.74 lakh shares on NSE on account of a large bulk deal. The stock has an average daily volume of 89.17 lakh shares in the past one quarter on NSE.
India's macroeconomic worries have eased on falling crude oil prices. India imports about 80% of its crude oil requirement. Brent crude oil futures fell below $103 a barrel on Monday as Libya increased its oil output and as worries over supply from key producer Iraq eased. The October Brent crude contract was off 78 cents at $102.75 a barrel. The contract rose $1.52 a barrel to settle at $103.53 on Friday, 15 August 2014.
The market sentiment was boosted by data showing that foreign portfolio investors (FPIs) were net buyers of Indian stocks on Thursday, 14 August 2014. FPIs bought shares worth a net Rs 625.18 crore on Thursday, 14 August 2014, as per provisional data from the stock exchanges.
In his Independence Day address to the nation from the ramparts of the Red Fort, Prime Minister Narendra Modi on Friday, 15 August 2014, stressed on the need to promote the manufacturing sector. He invited manufacturers from across the world to start manufacturing in India, and help boost India's industrial growth. He also called upon the youth of India to unleash their entrepreneurial spirit and work towards manufacturing in India, the various items that add to the country's import bill. Let "Made in India" become a synonym of excellence, he added. Modi also announced that a new institution would be created to replace the Planning Commission. This new institution would respect the federal structure of the country, he asserted.
In a major new scheme to universalize banking access and financial inclusion, the Prime Minister announced the Pradhanmantri Jan-Dhan Yojana which will provide for a bank account, a debit card and an insurance amount of Rs 1 lakh to poor families.
The Prime Minister said development and good governance are the only two tracks which could take the nation forward.
At a function at Solapur in Maharashtra, the Prime Minister on 16 August 2014 outlined a comprehensive vision for new modes of infrastructure development in the country, which would include nationwide connectivity networks of roads, power transmission lines, gas grids and water grids. He asserted that roads and highways development will be given priority by the new Government, drawing inspiration from the Golden Quadrilateral and Pradhan Mantri Gram Sadak Yojana launched by former Prime Minister Atal Bihari Vajpayee. The Prime Minister said the Government is concerned at the large number of stalled SEZ projects across the country, and a high-level team has been constituted to review the problems and resolve them at the earliest. He added that his Government wishes to create an environment for ease of business, and encouragement for youth. Elaborating his theme of Come, make in India, which he mentioned during his Independence Day address, the Prime Minister said his Government will encourage foreign investment in shipbuilding.
European stocks advanced today, 18 August 2014 on signs of easing geopolitical tensions in Ukraine. Key benchmark indices in UK, Germany and France were up 0.71% to 1.67%.
Over the weekend, foreign ministers from Germany, Russia, Ukraine and France reportedly met outside Berlin in a session billed as a prelude to cease-fire talks.
Asian stocks declined on Monday, 18 August 2014, as Chinese new-home prices dropped. Key benchmark indices in South Korea, Taiwan, Singapore and Hong Kong were off 0.14% to 0.71%. Key benchmark indices in China, Japan and Indonesia were up 0.03% to 0.66%.
China's foreign-direct investment slumped 17% in July from a year earlier, the Ministry of Commerce said today, 18 August 2014. Another data showed that China's new-home prices fell in July in almost all cities that the government tracks.
Trading in US index futures indicated that the Dow could gain 84 points at the opening bell on Monday, 18 August 2014. Most US stocks ended lower on Friday, 15 August 2014, as increasing violence in Ukraine sent oil prices to the biggest increase in a month.
Global markets will be focused on the Aug. 21-23 annual meeting of top central bankers at Jackson Hole, Wyoming, for possible clues about the path for monetary policy in the months ahead.
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