Telecom, cement and pharma stocks led rally as key benchmark indices surged on the last trading session of the week today, 29 May 2015. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, attained one-week closing high. The market breadth indicating the overall health of the market was positive. The Sensex garnered 321.73 points or 1.17% to settle at 27,828.44. The BSE Mid-Cap index rose 1.48%. The BSE Small-Cap index rose 1.22%. Both these indices outperformed the Sensex.
Mahindra & Mahindra (M&M) edged higher after the company reported Q4 March 2015 results during market hours today, 29 May 2015. Bharti Airtel edged higher after British telecom giant Vodafone Group Plc reportedly sold its 4.2% stake in Bharti Airtel for $200 million. HPCL jumped after the company reported better-than-expected Q4 March results after trading hours yesterday, 28 May 2015. NMDC edged lower after the state-run iron ore major reported weak Q4 March 2015 results after trading hours yesterday, 28 May 2015. Bosch shrugged off weak results for the quarter ended 31 March 2015 announced during market hours today, 29 May 2015.
Foreign portfolio investors sold shares worth a net Rs 758.36 crore into the secondary equity markets yesterday, 28 May 2015, as per data from the depositories. Domestic institutional investors (DIIs) bought shares worth a net Rs 683.29 crore yesterday, 28 May 2015, as per provisional data released by the stock exchanges.
In overseas markets, European stocks edged lower amid uncertainty as to whether Greece will be able to reach a debt deal before a key payment deadline next week. Earlier during the global day, most Asian stocks dropped. US stocks registered small losses in choppy trading yesterday, 28 May 2015, as investors grappled with comments from Federal Reserve officials about the possibility of raising interest rates this year.
The S&P BSE Sensex garnered 321.73 points or 1.17% to settle at 27,828.44, its highest closing level since 22 May 2015. The index jumped 381.61 points at the day's high of 27,888.32 at the fag end of the trading session. The index fell 39.48 points at the day's low of 27,467.23 in early trade.
The 50-unit CNX Nifty rose 114.65 points or 1.38% to settle at 8,433.65, its highest closing level since 22 May 2015. The index hit a high of 8,443.90 in intraday trade. The index hit a low of 8,305.70 in intraday trade.
The BSE Mid-Cap index rose 156.05 points or 1.48% to settle at 10,716.09. The BSE Small-Cap index rose 135.53 points or 1.22% to settle at 11,280.57. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,444 shares rose and 1,234 shares fell. A total of 120 shares were unchanged.
The total turnover on BSE amounted to Rs 3733 crore, higher than turnover of Rs 2583.89 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Healthcare index (up 1.63%), BSE Auto index (up 2.08%), BSE Bankex index (up 1.45%), BSE Capital Goods index (up 1.23%), BSE Oil & Gas index (up 1.32%) and BSE Teck index (up 1.58%) outperformed the Sensex. The S&P BSE IT index (up 0.8%), BSE Consumer Durables index (up 0.45%), BSE Metal index (up 0.53%), BSE Power index (up 0.18%) and BSE Realty index (down 0.13%) underperformed the Sensex. The S&P BSE FMCG index advanced 1.17%, matching Sensex's gain in percentage terms.
Cement stocks edged higher. Ambuja Cements (up 3.49%), UltraTech Cement (up 2.46%), ACC (up 2.8%) and Shree Cement (up 0.86%) edged higher.
Grasim Industries was up 3.56% at Rs 3,643.05. Grasim has exposure to cement sector through its holding in UltraTech Cement.
Telecom stocks edged higher on renewed buying. Reliance Communications (up 5.28%), Idea Cellular (up 2.42%) and Tata Teleservices (Maharashtra) (up 1.43%) edged higher.
Bharti Airtel edged higher after British telecom giant Vodafone Group Plc reportedly sold its 4.2% stake in Bharti Airtel for $200 million. The stock jumped 5.98% at Rs 425.30. The stock hit high of Rs 434.70 and low of Rs 402.25 in intraday trade. The British telecom giant reportedly said the stake was sold to Bharti Enterprises -- the parent company of Bharti Airtel. The sale follows a change in regulation from the Department of Telecommunications that prohibit companies from owning stake in competing operators in a service area. Previously, telecom operators were allowed to own up to 10% of a competing company.
Pharma stocks edged higher on renewed buying. Strides Arcolab (up 3.33%), Dr Reddy's Laboratories (up 0.27%), Ipca Laboratories (up 2.04%), Lupin (up 4.94%), GlaxoSmithkline Pharmaceuticals (up 1.67%) and Wockhardt (up 0.86%) edged higher.
Sun Pharmaceutical Industries was up 1.05% at Rs 965.75. The stock hit a high of Rs 979 and a low of Rs 960 in intraday trade. Sun Pharmaceutical Industries announces its Q4 March 2015 results today, 29 May 2015.
Cipla edged higher ahead of its Q4 results today, 29 May 2015. The stock was up 1.1% at Rs 650.45. The stock hit a high of Rs 658.80 and a low of Rs 642.45 in intraday trade.
Glenmark Pharmaceuticals edged higher after the company said its US subsidiary has received final approval from the United States Food & Drug Administration for a generic medicine. The stock was up 2.32% at Rs 877.15. The stock hit a high of Rs 881.10 and a low of Rs 857.50 in intraday trade. Glenmark Pharmaceuticals (GPL) during market hours today, 29 May 2015, said that its US subsidiary Glenmark Pharmaceuticals Inc., USA (Glenmark) has been granted final approval by the United States Food & Drug Administration (USFDA) for Desmopressin Acetate tablets, 0.1 mg and 0.2 mg, the therapeutic equivalent of DDAVP, 0.1 mg and 0.2 mg, of Ferring Pharmaceuticals, Inc. Glenmark plans to commence shipping of Desmopressin Acetate tablets immediately, the company said in a statement.
According to IMS Health sales data, for the 12 months ended March 2015, the DDAVP market achieved annual sales of approximately $72.1 million in the United States.
Bank stocks edged higher on renewed buying. Among public sector banks, Oriental Bank of Commerce (up 4%), Bank of India (up 2.93%), Union Bank of India (up 1.11%), IDBI Bank (up 0.78%), Bank of Baroda (up 0.59%), Indian Overseas Bank (up 0.58%) and State Bank of India (up 0.23%) edged higher. Punjab National Bank (down 1.41%), Central Bank of India (down 1.22%) and Andhra Bank (down 0.43%) edged lower.
Among private sector banks, Yes Bank (up 2.71%), Kotak Mahindra Bank (up 2.17%), HDFC Bank (up 2.12%), Axis Bank (up 1.75%) and ICICI Bank (up 0.87%) edged higher.
IndusInd Bank advanced after the private sector bank said it has inaugurated a new branch in Vishakhapatnam in Andhra Pradesh. The stock was up 2.14% at Rs 874. The stock hit a high of Rs 880 and a low of Rs 855.60 in intraday trade. With the inauguration of new branch, IndusInd Bank now has 20 branches in Andhra Pradesh. The bank plans to further strengthen its presence and customer reach in Andhra Pradesh with more branches in the coming quarters, IndusInd Bank said in a statement during trading hours.
The Reserve Bank of India (RBI) yesterday, 28 May 2015, issued draft guidelines on net stable funding ratio (NSFR) under Basel III framework on liquidity standards for banks. The RBI said that the NSFR which is defined as the amount of available stable funding relative to the amount of required stable funding should be greater than equal to 100%. This ratio should be equal to at least 100% on an ongoing basis. However, the NSFR would be supplemented by supervisory assessment of the stable funding and liquidity risk profile of a bank, the RBI said. On the basis of such assessment, the Reserve Bank may require an individual bank to adopt more stringent standards to reflect its funding risk profile and its compliance with the sound principles. The NSFR requirement would be binding on banks from 1 January 2018, the RBI said. Banks are required to meet the NSFR requirement on an ongoing basis and they should have the required systems in place for such calculation and monitoring, RBI said.
Meanwhile, the Reserve Bank of India yesterday, 28 May 2015, advised banks to encourage large agricultural borrowers such as agricultural commodity processors, traders, millers, aggregators etc. to hedge their risks related to agricultural commodity prices. Banks provide a number of credit facilities to customers engaged in activities related to agriculture. Volatility in agricultural commodity prices may negatively impact such borrowers and the banks, according to the central bank. Hence, hedging of agri-commodity price risk will be beneficial to both the borrowers and the banks, the RBI said in a statement. The RBI has advised banks to educate their customers about the suitability and appropriateness of using various hedging tools so that they can take an informed decision. This will also reduce the scope of mis-selling of derivatives. Banks have to keep the sophistication, understanding, scale of operation and requirements of their agri-borrowers in mind while advising them on the availability and use of these instruments, the RBI said.
ONGC rose 0.56% at Rs 329.95. The stock hit a high of Rs 331.95 and a low of Rs 313.30 in intraday trade. The company's net profit fell 19.51% to Rs 3935.07 crore on 3.07% increase in total income to Rs 23381.07 crore in Q4 March 2015 over Q4 March 2014. The result was announced after trading hours yesterday, 28 May 2015.
The company's net profit fell 19.74% to Rs 17732.95 crore on 2.61% decline in total income to Rs 88238.18 crore in the year ended March 2015 over the year ended March 2014.
As per the decision of the Government of India no discount has been extended by ONGC to public sector oil marketing companies (PSU OMCs) during Q4 March 2015. During the corresponding previous year period i.e. in Q4 March 2014, ONGC gave a subsidy discount of a whopping Rs 16202 crore to PSU OMCs on sale of crude oil, PSD kerosene and domestic LPG.
In a statement, ONGC said that a continuous decline in the company's production of crude oil over last seven years was reversed during the year ended 31 March 2015 (FY 2015). Offshore oil production rose 4.3% to 16.18 MMT in FY 2015 from 15.51 MMT in the year ended 31 March 2014 (FY 2014). ONGC's total crude oil production has gone up from 22.25 MMT in FY 2014 to 22.26 MMT in FY 2015.
The estimated accretion to in-place hydrocarbons from ONGC operated areas in India in FY 2015 stands at 215.65 MMTOE. Accretion to ultimate 2P Reserves of ONGC (domestic stand-alone operated areas) in FY 2015 was 61.05 MMTOE.
Reserve Replacement Ratio (RRR), the ratio of reserve accretion to total oil and gas production in one year, stands at 1.38. ONGC, thus, maintains RRR at more than one for last 9 years (2P). Considering the global trend, this is a significant achievement, ONGC said.
Meanwhile, ONGC's board of directors at its meeting held yesterday, 28 May, 2015, approved investment of Rs 1881.22 crore for the redevelopment of Gamij field under Stage Gate Process at Ahmedabad Asset. Gamij field, located in East of Ahmedabad city, is the first onshore field being developed under Stage Gate Process. The project cost includes drilling of 280 wells and creation of surface facilities like Group Gathering Stations.
ONGC also announced that Cairn Energy India Private Limited has handed over the operatorship of NELP block Nagayalanka KG-ONN-2003/1 to ONGC. As the operator of the block, ONGC has made plans to drill 20 horizontal wells with multistage Hydro-fracturing in High Pressure - High Temperature domain. The project cost is around Rs 5000 crore. It is envisaged to produce 2.54 MMT of oil and 1.31 BCM of gas by 2030-31.
Shares of public sector oil marketing companies (PSU OMCs) edged higher after better-than-expected Q4 March results from BPCL and HPCL which were announced yesterday, 28 May 2015.
BPCL was up 3.96% at Rs 849.60. The stock had risen 2.57% to settle at Rs 817.25 yesterday, 28 May 2015, after the company announced better-than-expected Q4 March results during trading hours. BPCL's net profit fell 29.87% to Rs 2852.89 crore on 30.94% decline in total income to Rs 51928.12 crore in Q4 March 2015 over Q4 March 2014.
HPCL jumped after the company reported better-than-expected Q4 March results after trading hours yesterday, 28 May 2015. The stock was up 6.01% at Rs 675.10. The stock hit a high of Rs 679.10 and a low of Rs 652.55 in intraday trade. HPCL's net profit fell 53.09% to Rs 2162.39 crore on 30.17% decline in total income to Rs 45093.35 crore in Q4 March 2015 over Q4 March 2014. The company's net profit rose 57.65% to Rs 2733.26 crore on 7.37% decline in total income to Rs 207794.60 crore in the year ended March 2015 over the year ended March 2014.
HPCL said that average gross refining margins were reported at $2.84 per barrel in the year ended March 2015 as against $3.43 per barrel during the year ended March 2014. During the current year ended March 2015, subsidy amounting to Rs 636.99 crore (April - March 2014: Rs 635.14 crore) has been accounted at the subsidy rates as approved by the Government.
Based on the approval received from Government of India, the company has accounted for budgetary support amounting to Rs 5057.94 crore for the period April-March 2015 (April-March 2014: Rs 15215.45 crore) against under-recoveries on sale of sensitive petroleum products for the period April-March 2015.
Discount from upstream oil companies in respect of crude oil, PDS Kerosene & Domestic LPG purchased from them, amounted to Rs 10862.21 crore in the year ended March 2015 compared with Rs 16770.77 crore in the year ended March 2014.
Indian Oil Corporation (IOCL) was off 1.36% at Rs 355.95. The stock hit a high of Rs 374.80 and a low of Rs 353.45 in intraday trade. IOCL's net profit fell 33.06% to Rs 6285.35 crore on 30.02% decline in total income to Rs 94791.51 crore in Q4 March 2015 over Q4 March 2014. The result was announced during market hours today, 29 May 2015.
Coal India was up 2.14% at Rs 391.30. The stock hit a high of Rs 393.40 and a low of Rs 381 in intraday trade. On a consolidated basis, Coal India's net profit fell 4.41% to Rs 4238.55 crore on 3.05% increase in total income to Rs 23065.65 crore in Q4 March 2015 over Q4 March 2014. The result was announced after market hours yesterday, 28 May 2015.
On a consolidated basis, the company's net profit fell 9.16% to Rs 13726.70 crore on 3.74% increase in total income to Rs 80690.71 crore in the year ended March 2015 over the year ended March 2014.
Bosch shrugged off weak results for the quarter ended 31 March 2015 announced during market hours today, 29 May 2015. The stock was up 2.67% at Rs 23,655.30. The stock hit a high of Rs 23,873.65 and a low of Rs 22,440 in intraday trade. Bosch's net profit fell 11.9% to Rs 287.45 crore on 2.5% decline in total income to Rs 2521.65 crore in the quarter ended 31 March 2015 over the quarter ended 31 March 2014.
Bosch's current financial year is for 15 months i.e., from 1 January 2014 to 31 March 2015.
Meanwhile, Bosch replaced IDFC in the 50-unit CNX Nifty effective from today, 29 May 2015. Shares of IDFC were up 0.62% at Rs 154.25.
Mahindra & Mahindra (M&M) edged higher after the company reported Q4 March 2015 results during market hours today, 29 May 2015. The stock jumped 4.89% at Rs 1,260.20. The stock hit a high of Rs 1,267.85 and a low of Rs 1,183.35 in intraday trade. M&M's net profit fell 38.61% to Rs 550.56 crore on 13.08% decline in total income to Rs 9646.68 crore in Q4 March 2015 over Q4 March 2014. The trucks and buses business of Mahindra Trucks and Buses (MTBL) was merged with M&M in Q4 March 2014 and the full-year results of MTBL was included in M&M's Q4 March 2014 results. Therefore, M&M's Q4 March 2015 results are not strictly comparable with Q4 March 2014 results.
Segment wise results showed that the profitability of M&M's automobile business witnessed a solid improvement on year-on-year basis in Q4 March 2015. On the other hand, the tractors business reported a dismal performance on year-on-year basis in Q4 March 2015.
NMDC edged lower after the state-run iron ore major reported weak Q4 March 2015 results after trading hours yesterday, 28 May 2015. The stock was off 2.02% at Rs 128.50. The stock hit high of Rs 129.90 and low of Rs 126.15 in intraday trade. NMDC's net profit fell 31.3% to Rs 1347.09 crore on 20.3% decline in total income to Rs 3554.77 crore in Q4 March 2015 over Q4 March 2014.
NMDC's iron ore production fell to 7.94 MT in Q4 March 2015 as against 9.96 MT in Q4 March 2014. NMDC said iron ore production rose 1% to a record 30.44 MT for the year ended 31 March 2015 over the year ended 31 March 2014. Even though the international and domestic prices have come down in the year ended 31 March 2015, NMDC with its efforts had once again achieved the 30 million ton mark.
The Sensex garnered 817.13 points or 3.02% in May 2015. The Sensex has gained 329.02 points or 1.19% in this calendar year so far (till 29 May 2015). From a 52-week low of 24,163.62 on 30 May 2014, the Sensex has risen 3,664.82 points or 15.16%. The Sensex is off 2,196.30 points or 7.31% from a record high of 30,024.74 hit on 4 March 2015.
On the macro front, the government is scheduled to announce the data on gross domestic product (GDP) for Q4 March 2015 at 17:30 IST today, 29 May 2015. India's GDP grew 7.5% in Q3 December 2014.
Meanwhile, economists expect the Reserve Bank of India (RBI) to cut its benchmark lending rate viz. the repo rate by 25 basis points to 7.25% after a monetary policy review early next week. Economists expect rate cut from the central bank in an attempt to kick-start the economy which has been showing signs of decelerating. The RBI is scheduled to announce the outcome of its second bi-monthly monetary policy review for the year 2015-16 at 11:00 IST on Tuesday, 2 June 2015.
In overseas markets, European stocks edged lower today, 29 May 2015, amid uncertainty as to whether Greece will be able to reach a debt deal before a key payment deadline. Key indices in Germany and France were off 0.43% to 0.5%. In UK, the FTSE 100 index was up 0.29%.
International Monetary Fund Managing Director Christine Lagarde reportedly said in an interview to German newspaper that she considers a Greek exit from the eurozone a possibility, but such a step probably wouldn't mean the end of the euro. Ms. Lagarde also contradicted recent statements out of Greece indicating the country and its creditors are close to an agreement on funding.
Greece, which is feared to be running out of cash, needs to cut a deal to unlock its next round of bailout funds. Greece is scheduled to repay euro 1.6 billion ($1.76 billion) to the International Monetary Fund (IMF) between June 5-19.
French consumer spending rose less than expected in April as households pared back spending on durable goods, data showed Friday. Consumer spending in the eurozone's second largest economy rose 0.1% in April from March and was 2% higher than April 2014, the statistics agency Insee said. Insee also revised down the March figure to a drop of 0.7% instead of 0.6% previously. Consumers spent more on food and clothing in April than in March, but less on large purchases. Outlays on housing fell 0.2% on the month and durable goods spending dropped 0.4%.
Asian stocks edged lower today, 29 May 2015. Key indices in China, Hong Kong, Singapore, Taiwan and Indonesia were off 0.11% to 0.83%. Key indices in Japan and South Korea were up 0.06% to 0.19%.
Japan's industrial production rose more-than-expected in May, preliminary data showed yesterday, 28 May 2015. In a report, the Ministry of Economy, Trade and Industry said that industrial production rose to a seasonally adjusted 1% in May, from minus 0.8% in the preceding month.
US stocks registered small losses in choppy trading yesterday, 28 May 2015, as investors grappled with comments from Federal Reserve officials about the possibility of raising interest rates this year.
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