Stocks of metal and mining firms, oil exploration and production companies and index heavyweight Infosys led gains for key benchmark indices in what was a choppy trading session. The barometer index, the S&P BSE Sensex, rose 115.11 points or 0.48% to settle at 24,338.43. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty rose 42.20 points or 0.57% to settle at 7,404. Gains in Asian stocks aided the upmove on the domestic bourses as the Sensex and the Nifty snapped a 3-day losing streak.
The market breadth indicating the overall health of the market was weak. On BSE, 1,623 shares declined and 1,030 shares rose. A total of 123 shares were unchanged. The BSE Mid-Cap index dropped 0.18%. The BSE Small-Cap index declined 0.75%. Both these indices underperformed the Sensex.
Shares of oil exploration and production firms gained after sharp rebound in crude oil prices. Shares of public sector oil marketing companies (PSU OMCs) dropped after a sharp rise in crude oil prices. Metal and mining stocks edged higher as copper prices rose in global commodities markets. Tata Steel edged higher in volatile trade ahead of the announcement of its third quarter results. Pharma stocks edged lower on media reports that the US government has made it mandatory for active pharmaceutical ingredients (APIs) to be manufactured locally.
ABB India surged after reporting robust Q4 December 2015 results. Bajaj Auto edged lower in volatile trade after announcing third quarter results.
The Sensex and the Nifty witnessed high intraday volatility. After registering decent gains in early trade on the back of higher Asian stocks, the two key benchmark indices trimmed gains in morning trade. The two key benchmark indices recovered from lower level after erasing a lion's portion of intraday gains in mid-morning trade. After extending gains in early afternoon trade, key indices pared gains in afternoon trade. Immense volatility was witnessed in late trade as the Sensex and the Nifty recovered from lower level after erasing almost entire intraday gains.
The Sensex rose 115.11 points or 0.48% to settle at 24,338.43, its highest closing level since 2 February 2016. The index jumped 290.69 points or 1.2% at the day's high of 24,514.01. The barometer index rose 1.42 points at the day's low of 24,224.74.
The Nifty rose 42.20 points or 0.57% to settle at 7,404, its highest closing level since 2 February 2016. The index rose 95.25 points or 1.29% at the day's high of 7,457.05. The index rose 4.15 points or 0.05% at the day's low of 7,365.95.
In overseas stock markets, Asian and European stocks edged higher after disappointing US economic data was seen as putting interest-rate increases by the US Federal Reserve on hold. US stocks staged a late-day rally yesterday, 3 February 2016, as sharp rebound in oil prices lifted beaten-down energy shares and financials rebounded from initial sharp slide.
The total turnover on BSE amounted to Rs 2735 crore, higher than turnover of Rs 2708.89 crore registered during the previous trading session.
Among sectoral indices on BSE, the S&P BSE Utilities index (down 0.25%), the S&P BSE Finance index (up 0.22%), the S&P BSE Bankex (up 0.18%), the S&P BSE Oil & Gas index (up 0.08%), the S&P BSE Healthcare index (down 1.56%), the S&P BSE Realty index (down 0.3%), the S&P BSE Energy index (up 0.03%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.18%), the S&P BSE FMCG index (up 0.23%) and the S&P BSE Telecom index (up 0.03%) underperformed the Sensex. The S&P BSE Power index (up 0.84%), the S&P BSE Auto index (up 0.52%), the S&P BSE Capital Goods index (up 1.93%), the S&P BSE Basic Materials index (up 1.11%), the S&P BSE Metal index (up 2.48%), the S&P BSE Industrials index (up 1.12%), the S&P BSE Teck index (up 0.83%), and the S&P BSE IT index (up 0.92%) outperformed the Sensex.
Telecom stocks were mixed. Bharti Airtel (up 1.58%) and Tata Teleservices (Maharashtra) (up 2.6%) edged higher. Idea Cellular (down 2.91%) and Reliance Communications (down 2.56%) declined.
Shares of oil exploration and production firms gained after sharp rebound in crude oil prices. Cairn India (up 5.69%), Oil India (up 0.19%), and ONGC (up 3.28%) gained. Reliance Industries (RIL) declined 0.69%. Higher crude oil prices will result in higher realization from crude sales for oil exploration firms.
Shares of public sector oil marketing companies (PSU OMCs) dropped after a sharp rise in crude oil prices. BPCL (down 0.14%), HPCL (down 4.56%) and Indian Oil Corporation (down 1.68%) declined. Higher crude oil prices will increase under-recoveries of PSU OMCs on domestic sale of LPG and kerosene at controlled prices. The government has already freed pricing of petrol and diesel.
In the global commodities markets, Brent for April settlement was currently up 18 cents at $35.22 a barrel. The contract had surged $2.32 a barrel or 7.09% to settle at $35.04 a barrel during previous trading session.
Infosys rose 1.88% to Rs 1,179.90. The stock hit high of Rs 1,193.60 and low of Rs 1,161.75 in intraday trade.
Metal and mining stocks edged higher as copper prices rose in global commodities markets. Vedanta (up 9.89%), Hindalco Industries (up 3%), Jindal Steel & Power (up 3.61%), Hindustan Zinc (up 4.16%), JSW Steel (up 3.89%), Hindustan Copper (up 0.83%) and National Aluminium Company (up 0.52%) gained. Steel Authority of India dropped 1.16%.
High Grade Copper for March 2016 delivery was currently up 0.81% at $2.1120 per pound on the COMEX.
NMDC rose 4.17%. The company in its latest price review has kept prices of lump ore unchanged at Rs 1,800 per tonne. The state-run iron ore miner also kept the prices of iron ore fines unchanged at Rs 1,560 per tonne. The prices are excluding royalty, taxes, DMF, duties, levies etc. The announcement was made after market hours yesterday, 3 February 2016.
Shares of public sector banks rose. Punjab National Bank (up 1.68%), Bank of Baroda (up 1.86%), Union Bank of India (up 1.22%), Canara Bank (up 0.77%), and Bank of India (up 0.3%) edged higher. State Bank of India (SBI) declined 1.81%.
Stocks of private sector banks witnessed a mixed trend. HDFC Bank (up 0.62%), Axis Bank (up 0.41%), Kotak Mahindra Bank (up 1.62%), and IndusInd Bank (up 0.76%) edged higher. ICICI Bank (down 0.02%) and Yes Bank (down 2.38%) declined.
Pharma stocks edged lower on media reports that the US government has made it mandatory for active pharmaceutical ingredients (APIs) to be manufactured locally. Wockhardt (down 11.13%), Aurobindo Pharma (down 3.23%), Strides Shasun (down 3.12%), Lupin (down 2.69%), Glenmark Pharmaceuticals (down 2.76%), Cipla (down 1.67%), Alkem Laboratories (down 2.51%), Cadila Healthcare (down 1.07%), Divi's Laboratories (down 2.54%) and Ipca Laboratories (down 1.54%) edged lower. Dr Reddy's Laboratories (up 0.14%), Sun Pharmaceutical Industries (up 0.33%) and GlaxoSmithkline Pharmaceuticals (up 0.28%) edged higher. The United States is a key market for Indian pharma companies.
Tata Power gained 3.85% at Rs 59.30 after the company announced that its equal joint venture with ZESCO, a Zambian power utility company, has commissioned two units of 60 megawatts (MW) each of its 120 MW Itezhi Tezhi hydro power project in Zambia. The synchronization of both the units was completed in January 2016. ZESCO is the sole off-taker of power from the power plant.
Separately, Tata Power announced that its joint venture company Industrial Energy (IEL) has synchronized the 67.5 megawatts (MW) unit 1 of its 202.50 MW IEL Kalinganagar project. These units are designed to cater to the requirement of LP steam, which is supplied to Tata Steel, which got commissioned from December 2015.
Tata Steel edged higher in volatile trade ahead of the announcement of its third quarter results. The stock rose 1.5% to Rs 227.50. The scrip hit high of Rs 228.50 and low of Rs 219.15 in intraday trade.
Tata Motors rose 2.12% at Rs 327.30 after Jaguar Land Rover (JLR) North America yesterday, 3 February 2016, said its US sales rose 7% to 7,007 units in January 2016 over January 2015. JLR is the British luxury car unit of Tata Motors.
Bajaj Auto edged lower in volatile trade after announcing third quarter results. The stock lost 1.58% at Rs 2,311. The stock hit a high of Rs 2,392.75 and a low of Rs 2,292.25 in intraday trade. Bajaj Auto's net profit rose 4.67% to Rs 901.49 crore on 0.21% growth in total income to Rs 5764.58 crore in Q3 December 2015 over Q3 December 2014. Operating earnings before interest, taxation, depreciation and amortization (EBITDA) rose 2.66% to Rs 1234 crore in Q3 December 2015 over Q3 December 2014. Operating EBITDA margin improved to 22% in Q3 December 2015, from 21.1% in Q3 December 2014. The result was announced during market hours today, 4 February 2016.
Maruti Suzuki India (MSIL) was off 1.01% at Rs 3,790. The stock hit a high of Rs 3,880 and a low of Rs 3,777 in intraday trade. MSIL during market hours today, 4 February 2016, said that it has unveiled Concept Ignis and Concept Baleno RS on the second day of Delhi Auto Expo 2016. Concept Ignis is a smart compact urban concept vehicle built on a new-generation platform. Concept Baleno RS is a sporty version of premium hatchback Baleno. Ignis and Baleno RS will be launched in India in the festival season, MSIL said in a statement. The company also unveiled the 1.0 BOOSTERJET direct injection turbo engine. This turbo engine offers an exhilarating drive feel while the external styling is even more edgy and sporty, MSIL said in a statement.
Mahindra & Mahindra (M&M) declined 0.71%. The company today, 4 February 2016, announced the launch of its new heavy commercial truck series under the BLAZO brand at the Auto Expo at Greater NOIDA. The BLAZO series of heavy commercial vehicles include multi-axle trucks, tippers and tractor trailers in the range of 25 to 49 ton GVW for the domestic market.
ABB India surged 14.21% after net profit rose 53.75% to Rs 129.40 crore on 8.11% increase in total income to Rs 2435.89 crore in Q4 December 2015 over Q4 December 2014. Efforts towards increased localization coupled with strong focus on cost savings and project execution helped improve profitability, the company said in a statement. The result was announced during trading hours today, 4 February 2016.
The company said that demand in its major areas of businesses was muted, reflecting ongoing macro uncertainties and challenges. Customers remained cautious but continued to make selective investments in infrastructure and critical power transmission projects. The order inflow stood at Rs 2058 crore in Q4 December 2015 and Rs 8100 crore for the year ended 31 December 2015. The orders from renewables (wind and solar) and railways segment more than doubled as compared to the year ended 31 December 2014 but was offset to a large extent by the silent investment pattern prevalent in the industry. The service business, at nearly Rs 1000 crore for 2015, posted a good double digit growth in orders compared to last year, as customers' focus on quality, safety and maintenance increased and decisions on new investments and large orders were delayed.
An order backlog of Rs 7946 crore as on 31 December 2015 provides visibility for future revenue, ABB India said.
The Sensex and the Nifty snapped a 3-day losing streak. The Sensex had declined 647.37 points or 2.6% in preceding three trading sessions to settle at 24,223.32 yesterday, February 2016, from its close of 24,870.69 on 29 January 2016. The Sensex has fallen 532.26 points or 2.14% in this month so far (till 4 February 2016). The Sensex has fallen 1,779.11 points or 6.81% in calendar year 2016 so far (till 4 February 2016). The Sensex is up 498.67 points or 2.09% from a 52-week low of 23,839.76 hit on 20 January 2016. The Sensex is off 5,686.31 points or 18.93% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, the government today, 4 February 2016, announced the schedule of the Budget session of parliament. The Budget session will begin on 23 February 2016 and will continue till 13 May 2016 with recess from 17 March 2016 to 24 April 2016. The presentation of Railway Budget will be on 25 February 2016, to be followed by the finance ministry's Economic Survey on 26 February 2016. Finance minister Arun Jaitley will present Union Budget 2016-17 in parliament on 29 February 2016.
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