Key benchmark indices provisionally settled near the flat line in a volatile session. The barometer index, the S&P BSE Sensex lost 2.23 points or 0.01% at 32,380.23, as per the provisional closing data. The Nifty 50 index fell 7.15 points or 0.07% at 10,013.50, as per the provisional closing data. Both the Sensex, and the Nifty, had hit record high in mid-morning trade.
A bout of volatility was witnessed as traders rolled over positions in the futures & options (F&O) segment from July 2017 series to August 2017 series. The July 2017 derivatives contract expired today, 27 July 2017.
The Sensex surged 290.20 points or 0.89% at the day's high of 32,672.66 in mid-morning trade, a record high. It lost 57.13 points or 0.17% at the day's low of 32,325.33 in late trade.
The Nifty surged 94.20 points or 0.94% at the day's high of 10,114.85 in mid-morning trade, a record high. It lost 15.15 points or 0.15% at the day's low of 10,005.50 in late trade.
Earlier, key indices had opened the session higher and traded with modest gains till afternoon trade, tracking firmness in global markets. Later, they trimmed intraday gains and hovered with small gains till mid-afternoon trade. Key indices erased all the intraday gains towards the late trade to settle near the flat line.
Among other barometers, the S&P BSE Mid-Cap index provisionally declined 0.55%. The S&P BSE Small-Cap index provisionally lost 0.52%. The losses for both the indices were higher than the Sensex's decline in percentage terms.
The breadth, indicating the overall health of the market, was weak. On the BSE, 1,843 shares declined and 879 shares rose. A total of 154 shares were unchanged.
The total turnover on BSE amounted to Rs 3963.41 crore, lower than turnover of Rs 4052.80 crore registered during the previous trading session.
Telecom stocks declined. Bharti Airtel (down 3.09%), Idea Cellular (down 1.85%) and Bharti Infratel (down 0.94%) edged lower. Reliance Communications (up 0.19%) gained.
Index heavyweight and housing finance major HDFC gained 5.55% at Rs 1,723.95 after a foreign brokerage firm reportedly upgraded the stock to outperform from neutral citing better subsidiary valuations. A foreign brokerage firm reportedly upgraded the HDFC stock to outperform from neutral and also hiked the price target on the company to Rs 1,890 from Rs 1,635. The foreign brokerage cited better subsidiary valuations as one of the key reasons behind the upgrade. It expects dividend income from HDFC Bank to reflect from the second quarter of the year ending 31 March 2018. An improving net interest margin amidst intense competition is an encouraging sign, the foreign brokerage said in its research note.
HCL Technologies was up 0.68% at Rs 897.50. 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.
Dr Reddy's Laboratories fell 4.08% at Rs 2,600 after consolidated net profit fell 56.61% to Rs 66.60 crore on 1.79% growth in total income to Rs 3371.20 crore in Q1 June 2017 over Q1 June 2016. The result was announced during market hours today, 27 July 2017.
The company's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) declined 15.56% to Rs 336 crore in Q1 June 2017 over Q1 June 2016. EBITDA margin contracted to 10.1% in Q1 June 2017, from 12.3% in Q1 June 2016.
Commenting on the results, Dr Reddy's Laboratories Co-Chairman and CEO G V Prasad said that while headwinds in the form of price erosion due to US customer consolidation continue, a lower contribution from new product launches in the US and GST implementation in India also impacted the company's performance.
Maruti Suzuki India was up 0.17% at Rs 7,591. The company's net profit rose 4.39% to Rs 1556.40 crore on 17.02% growth in total income to Rs 20460.10 crore in Q1 June 2017 over Q1 June 2016. The result was announced during market hours today, 27 July 2017.
Maruti's EBITDA (earnings before interest, taxes, depreciation and amortization) rose 5.3% to Rs 2331.20 crore in Q1 June 2017 over Q1 June 2016.
Maruti said growth in volumes, favourable product mix, higher non-operating income and cost reduction efforts contributed to rise in profit. However, costs were impacted by higher commodity prices and sales promotion & marketing expenses. During Q1 June 2017, there was a one-off impact of compensation given to dealers for the tax loss incurred on vehicles in the stock at the time of transitioning to GST.
In a key political development, Nitish Kumar formed new government in Bihar with the Bharatiya Janata Party (BJP). He took oath as Chief Minister of Bihar at 10:00 IST today, 27 July 2017. With oath today, Nitish Kumar ended his party, JDU's mahagathbandhan or Grand Alliance with Lalu Yadav's RJD and the Congress last evening and joined hands with his former partner BJP.
Overseas, European stocks were mixed as investors were still digesting the Federal Reserve's latest policy decision amid a fresh batch of corporate earnings.
Asian stocks edged 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.
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