Key benchmark indices ended the volatile trading session higher. The barometer index, the S&P BSE Sensex, rose 18.69 points or 0.07% to 28,372.23, as per the provisional closing data. The Nifty 50 index rose 11 points or 0.13% to 8,726.60, as per the provisional closing data.
The Sensex fell 94.16 points, or 0.33% at the day's low of 28,259.38 in mid-morning trade. The index rose 62.87 points, or 0.22% at the day's high of 28,416.41 in early trade. The Nifty fell 26.70 points, or 0.31% at the day's low of 8,688.90 in mid-morning trade, its lowest level since 30 August 2016. The index rose 24.25 points, or 0.28% at the day's high of 8,739.85 in late trade.
In overseas stock markets, most European stocks were trading higher, shrugging off market jitters over central bank uncertainty and a renewed drop in oil prices. Most Asian shares declined today, 14 September 2016, bruised by a fall in oil prices on renewed worries about a supply glut and as investors grew nervous about the diminishing capacity of the world's major central banks to shore up economic growth. The US market edged lower yesterday, 13 September 2016, as equities suffered a sharp sell-off amid a slump in energy shares and uncertainty about the Federal Reserve's plans for monetary policy.
Back home, the market breadth, indicating the overall health of the market, was strong. On BSE, 1,754 shares rose and 961 shares fell. A total of 194 shares were unchanged. The BSE Mid-Cap index provisionally rose 1.34%. The BSE Small-Cap index provisionally rose 1.21%. Both these indices outperformed the Sensex.
IT major TCS fell 1.06% to Rs 2,334.20. The company announced during trading hours today, 14 September 2016, that its customer, Bank of Bhutan, deployed TCS BaNCS for Core Banking in 10 months, resulting in ability to handle increased transaction volumes and improved success rate of delivery channel transactions. All existing customers, accounts, lending and internet banking subscribers were migrated from the erstwhile Oracle FLEXCUBE system to TCS BaNCS as part of this transformation initiative.
Tata Steel rose 0.09% to Rs 373.95. On a consolidated basis, Tata Steel reported net loss of Rs 3183.07 crore in Q1 June 2016, higher than net loss of Rs 316.91 crore in Q1 June 2015. Total income fell 5.5% to Rs 26542.83 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Monday, 12 September 2016.
Tata Steel's consolidated earnings before interest, taxation, depreciation and amortization (EBITDA) rose 21% to Rs 3270 crore in Q1 June 2016 over Q1 June 2015 due to improved operating performance across India, Europe, and South East Asia. EBITDA margin expanded to 12.4% in Q1 June 2016 from 9.6% in Q1 June 2015. Tata Steel said that the company recognised loss of Rs 3296 crore in Q1 June 2016 on account of divestment of Long Steel UK.
Coal India fell 2.01% to Rs 324.05 after consolidated net profit fell 14.78% to Rs 3065.28 crore on 6.11% decline in net sales to Rs 17796.05 crore in Q1 June 2016 over Q1 June 2015. The result was announced yesterday, 13 September 2016 when the stock market was closed on account of Bakri Id.
Cairn India and Vedanta rose after the shareholders of Cairn India approved the company's merger with Vedanta. Vedanta (up 2.29%) and Cairn India (up 1.93%) edged higher.
Cairn India's equity shareholders approved the scheme of arrangement for merger of the company with Vedanta with requisite majority. Vedanta's shareholders had already approved the same on 9 September 2016.
Tom Albanese, CEO of Vedanta said that the approval for the Vedanta and Cairn India merger by both sets of shareholders consolidates Vedanta's portfolio of attractive, Tier-I assets and simplifies the group structure. Vedanta remains committed to delivering superior value for the shareholders of the merged company through its diversified portfolio of world-class, low cost, long-life assets that have significant growth potential.
The merger scheme is now subject to the approval of the jurisdictional High Courts and other regulatory approvals and is expected to be effective by the end of the current financial year (FY 2017).
It may be recalled that Vedanta, Cairn India and the parent company, Vedanta Resources plc had announced revised and final terms to the recommended merger between Vedanta and Cairn India on 22 July 2016. The boards of Vedanta and Cairn India had approved revised and final terms for the transaction, taking into account prevailing market conditions and having regard to underlying commercial factors. Pursuant to the revised and final terms, each Cairn India minority shareholder would receive for each equity share held in Cairn one equity share in Vedanta and four redeemable preference shares with a face value of Rs 10 in Vedanta with a coupon of 7.5% and tenure of 18 months from issuance and implied premium of 20% to one month volume weighted average price (VWAP) of Cairn India share price.
On the economic front, the annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at 3.74% (provisional) for the month of August 2016 as compared to 3.55% (provisional) in July 2016 and -5.06% in August 2015. Build up inflation rate in the financial year so far was 4.45% compared to a build up rate of 0.23% in the corresponding period of the previous year. The data was announced during market hours today, 14 September 2016.
India's industrial production (IIP) fell 2.4% in July 2016 over July 2015. Industrial production expanded 2.1% in June 2016 over June 2015. The data was announced after market hours on Monday, 12 September 2016.
India's inflation data based on consumer price index (CPI) for August 2016 slowed to 5.05% in August 2016. CPI accelerated to 6.07% in July 2016 from 5.77% in June 2016. The data was announced after market hours on Monday, 12 September 2016.
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