Closing bell: Sensex surges 350 points, Nifty tops 11,250 led by ITC, RIL, ICICI Bank14 min read . Updated: 27 Jul 2018, 04:50 PM IST
BSE Sensex closed 352.21 points up at 37,336.85, while the Nifty 50 ended 111.05 points higher at 11,278.35. Here are the highlights from the markets
OTHERS : Mumbai: Benchmark indices BSE Sensex and NSE’s Nifty 50 soared to fresh record highs on Friday led by gains in market heavyweights ITC, Reliance Industries and ICICI Bank. Stocks rally as sustained capital inflows and first-quarter earnings boosted investor sentiment amid mixed global cues. During the day, BSE Sensex surged 383.98 points to a fresh record high of 37,368.62, while the Nifty 50 rose 116.1 points to a new high of 11,283.40. Moreover, foreign investors purchased shares worth a net of Rs 2,453.57 crore on Thursday, while local investors sold shares worth a net of Rs 2,716.04 crore, provisional data showed. The Indian rupee was trading little changed against the US dollar, following mixed trend in Asian currencies. Global stocks rose as strong earnings and US and Europe pact to ease trade tensions this week boosted investor confidence. Oil prices edged lower in quiet trading after three days of gains. Here are the highlights from the markets:
Closing bell: Sensex, Nifty continue record run
BSE Sensex closed higher by 352.21 points, or 0.95%, to 37,336.85, while the Nifty 50 111.05 points, or 0.99%, to close at 11,278.35. In intraday trade, BSE Sensex surged 383.98 points to a fresh record high of 37,368.62, while the Nifty 50 rose 116.1 points to a new high of 11,283.40.BSE MidCap and SmallCap advanced 0.95% and 0.88%, respectively. All the sectoral indices on BSE, except IT, ended with gains led by FMCG, consumer durables, metal, oil and gas and energy. It edged down 0.02%.ITC, Indian Oil, Tata Motors, ICICI Bank and Hindalco were leading the gainers, whereas Dr. Reddy’s Labs, Power Grid, Adani Ports, Coal India and TCS were among the major losers.
S&P lowers Tata Motors on weakening JLR; outlook stable
S&P Global Ratings lowered Tata Motors’ long-term credit rating to ‘BB’ from ‘BB+’, citing weakening volumes and other operational issues plaguing its cash-cow Jaguar Land Rover, but retained its outlook at ‘stable’. The agency also lowered its long-term issuer rating on the dollar-denominated senior unsecured notes to ‘BB’ from ‘BB+’ of the country’s largest auto company by revenue. Tata Motors shares were trading 3.48% up at Rs 267.50.The ratings agency expects JLR volume to grow at 6-8% over the next two-three years, after a growth of just 1.7% in FY18, against the expectation of 14-17% rise during the year. “We believe the resilience of JLR has come down due to shifting consumer preferences, increasingly complex operating conditions, and its higher exposure to event risks such as Brexit and emerging trade wars,” it said. PTI
JSW Energy shares jump 8% as Q1 profit rises
JSW Energy Ltd shares jumped as much as 7.82% to Rs 68.90. The company reported a consolidated profit of Rs 229 crore in the first quarter ended 30 June, compared to a profit of Rs 217 crore last year. Consolidated revenue from operations rose to Rs 2,361 crore in the June quarter from Rs 2,232 crore a year ago.
Westlife Development shares soar 19% on Q1 profit
Westlife Development Ltd shares surged as much as 18.89% to Rs 413.70. The company reported a net profit of Rs 11.62 crore in the quarter ended 30 June, compared to Rs 2.71 crore a year ago. Revenue from operations stood at Rs 342 crore in the first quarter, compared to Rs 262 crore in the same period last year.
Rupee turns flat against US dollar
The Indian rupee was trading little changed against the US dollar, following mixed trend in Asian currencies. At 2pm, the rupee was trading at 68.67 a dollar, down 0.02% from its previous close of 68.67. The currency opened at 68.63 a dollar and touched a high and a low of 68.54 and 68.73 respectively. The 10-year bond yield stood at 7.773%, from its Thursday’s close of 7.76%. Bond yields and prices move in opposite directions. So far this year, the rupee has weakened 7%, while foreign investors have sold $1.01 million and $6.05 billion in equity and debt markets, respectively.
Sensex heads for best month since April
The Sensex has rallied more than 5% in July, poised for its best month since April, as the earnings confidence dampened the anxiety about the global trade conflicts and the Reserve Bank of India’s policy review on Wednesday. Net profit at 13 of the 21 NSE Nifty 50 Index firms that have reported have met or beaten estimates, data compiled by Bloomberg show. The Sensex has advanced about 10% this year, holding its place as Asia Pacific’s best performing market.“Earnings season moving along positive lines is generating higher buying interest,” said Deven Choksey, managing director at KR Choksey Shares & Securities Pvt. “Earnings would continue to get priority even amid central bank’s review next week. It is widely known that rates would have to rise slowly.”The RBI, which raised rates in June for the first time since 2014, is set to review policy on Aug. 1. Eighteen out of 24 economists expect it to hike rates while the rest expect a hold, according to a Bloomberg survey of economists. Bloomberg
European stock markets steady at open
Europe’s stock markets stabilised in opening trade on Friday, with London’s FTSE 100 shares index up 0.2% at 7,677.12 points. In the eurozone, Frankfurt’s DAX 30 edged 0.1% higher to 12,825.75 points, while the Paris CAC 40 slipped 0.1% to 5,477.53 compared with Thursday’s closing levels.Asian stocks mostly edged higher as investors digested results from American tech titans and waited for the release of US data expected to show a surge in economic growth. US markets were dragged down Thursday after Facebook warned of weaker growth, sending its shares falling nearly 20 percent and wiping out some $100 billion in market value. AFP
PVR shares trade lower; Dolat Capital upgrades stock
PVR shares traded 0.57% lower at Rs 1,114.65. PVR reported a 17.29% increase in consolidated net profit at Rs 52.15 crore for the first quarter. Its total income during the quarter was Rs 700.53 crore, up 7.27%. Dolat Capital Market Pvt. Ltd upgrades the PVR stock to “accumulate” from “sell”, with a target price of Rs 1,275.Dolat Capital Market Pvt. Ltd says, “Screen addition for PVR has been poor as it has added mere 9 screens until date in FY19 and has guided for a total screen addition of over 90 screens in FY19; we expect the organic screen addition to be 60 in FY19. We expect occupancy levels to improve over the next two quarters helped by a strong hindi content pipeline; we estimate Hindi Box Office revenue to grow 27% and 53% YoY basis for Q2 and Q3 of FY19 respectively.”
Heritage Foods shares rise on Q1 resu
Heritage Foods Ltd shares rose 3.64% to Rs 631. The company reported a consolidated profit of Rs 20.79 crore in the June quarter, compared to a profit of Rs 18.55 crore a year ago. Q1 consolidated revenue from operations stood at Rs 642 crore versus Rs 617 core a year ago.
Oil markets ease after three days of gains
Oil prices edged lower in quiet trading after three days of gains, but took support from Saudi Arabia halting crude transport through a key shipping lane, falling US inventories and easing trade tensions between Washington and Europe. Brent futures were down 5 cents at $74.49 a barrel, after gaining 0.8% on Thursday. They are heading for a near 2% gain this week, the first weekly increase in four. US West Texas Intermediate futures were 5 cents lower, at $69.56, after rising nearly 0.5% in the previous session. The contract is heading for a 1.3% weekly loss, a fourth week of declines. Reuters
Indian Oil shuts crude unit at Haldia plant after small fire: report
Indian Oil Corp. Ltd has shut a 40,000-barrel-per-day (bpd) crude unit at its 150,000-bpd Haldia refinery on the east coast after a minor fire, a company source said on Friday. The crude unit has been isolated and is expected to resume operation from Saturday, the source said, adding that the remaining units at the plant were operating normally. The fire took place on Thursday evening, IOC said in a statement. IOC shares traded 1.54% up at Rs 161.35.“The incident took place due to auto-ignition of leaked product. It was quickly brought under control and extinguished,” the company said, without elaborating if the unit was shut. “There was no injury or casualty,” it added. Reuters
USFDA inspects Ajanta Pharma facility
Ajanta Pharma Ltd shares jumped 4.37% to Rs 1,083.65 after the company said the USFDA inspected its formulation facility at Dahej from 23-27 July. The company added that no Form 483 was issued at the end of the inspection.
Royal Orchid shares jump 10% on Q1 results
Royal Orchid Hotels Ltd shares surged 10.60% to Rs 178.85 after the company reported a net profit of Rs 2.06 crore in the first quarter ended 30 June, compared to a profit of Rs 1.15 crore a year ago. Income from operations stood at Rs 25.5 crore in the June quarter, up from Rs 21.59 crore last year.
Zensar Tech buys US-based digital agency for $18 million
Zensar Technologies Ltd said its US unit has signed a definitive agreement to buy 100% of US-based digital agency Indigo Slate for a consideration of about $18 million. Zensar Technologies expects to closed the deal in three months. The acquisition will be funded by a mix of internal accruals and external debt, said the company in a regulatory filing. Indigo Slate is a digital marketing focused customer experience agency with revenues of approximately $20 million in fiscal 2018. Zensar Technologies shares were traded 0.70% up at Rs 1,244.
HDFC AMC IPO subscribed over 8 times so far on last day of issue
As of 11:30 om today, the issue was subscribed 8.52 times, according to NSE data. HDFC AMC is offering 25.46 million shares in a price band of Rs 1,095-1,110 apiece. Retail investors can apply up for shares up to Rs 2 lakh, with a lot size of 13 shares and in multiples of 13 thereafter. The Rs 2,800 crore issue, which was fully subscribed on Day 1 itself, closes today.
Market update: Sensex, Nifty trade at record highs
BSE Sensex traded higher by 320.76 points, or 0.86%, to 37,305.40, while the Nifty 50 rose 77.10 points, or 0.69%, to 11,244.40. In intraday trade, BSE Sensex surged 342.36 points to a fresh record high of 37,327, while the Nifty 50 rose 86.6 points to a new high of 11,253.90.BSE MidCap and SmallCap gained 0.82% and 0.75%, respectively. All the sectoral indices on BSE traded in green led by FMCG, metal, telecom, realty, energy and auto.ITC, Hindalco, Tata Motors, Hero MotoCorp and Bajaj Auto were among the top gainers, whereas Dr. Reddy’s Labs, Adani Ports, Hindustan Unilever and Yes Bank were among major losers.
Biocon hits 2-week high on upbeat Q1 results
Shares of Biocon Ltd jumped as much as 9.6% to Rs 611.9, its highest in a fortnight. The Biocon stock recorded its biggest daily percent gain since 4 December 2017. The company reported a 47% rise in June-quarter profit, beating street estimate, according to Thomson Reuters I/B/E/S. More than 6.1 million shares change hands compared with 30-day moving average of around 1.7 million shares. Biocon is top percent gainer of the Nifty Pharma index. The stock was up 3.90% this year as of last close, outperforming the Nifty Pharma index’s 6.5% fall. Reuters
ITC shares surge 7%, its biggest gain in five months
Shares of ITC Ltd on Friday surged nearly 7%, its biggest jump in five months after the cigarette and consumer goods producer reported better than expected first-quarter earnings. The ITC stock gained as much as 6.91%, its maximum gains since 1 February and touched a one-year high of Rs 307 a share—a level last seen on 17 July 2017. ITC shares gained for seventh consecutive sessions, adding nearly $7.29 billion in market cap. It rose 14.4% in this period. So far this year, ITC shares have advanced 16.3%. Read more
Airtel shares gain over 4% after Q1 results
Shares of Bharti Airtel rose as much as 4.40% to Rs 373.35. Bharti Airtel reported a consolidated net profit during the June quarter (Q1) on the back of a deferred tax gain of ₹ 515.6 crore, which helped it avoid a loss, as the brutal tariff war triggered by Reliance Jio Infocomm Ltd continued unabated during the quarter. Net profit fell to ₹ 97.3 crore in the three months ended 30 June from ₹ 367.3 crore in the year earlier.
SBI Life shares rise over 1% on positive Q1 results
SBI Life Insurance Co. Ltd shares rose 1.09% to Rs 680 after the company reported its June quarter results. SBI Life reported a 13% rise in net profit to Rs 350 crore for the June quarter, compared to Rs 310 crore in the year ago period. Its net premium income grew to Rs 4,754.52 crore in the first quarter of 2018-19, up 26.36% from Rs 3,762.58 crore last year.Read: SBI Life’s Q1 results show persistency and protection guarantee profitability
Analysts say Q1 results, capital inflows support markets
BSE Sensex traded higher by 323.61 points, or 0.87%, to 37,308.25, while the Nifty 50 rose 79.60 points, or 0.71%, to 11,246.90.Dhiraj Relli, MD & CEO HDFC Securities“It’s redeeming to see the Nifty and the Sensex cruising at all-time highs, something we predicted quite early in Jul-18. New highs have come about on the back of sustained inflows into mutual funds. This asset class has replaced FIIs as the prime movers of the markets. MF SIPs are handy to absorb the selling pressure by FIIs, who are net sellers in this calendar year.” He thinks that with the asset under management (AUM) of MFs being less than 12% of our GDP, there is ample room for them to increase. “It is interesting to see retail investors displaying maturity by continuing with their SIPs despite the turmoil in mid and small-cap stocks.”Vinod Nair, Head of Research, Geojit Financial Services LtdBetter Q1 FY19 results from heavyweights and outperformance of PSU Banks coupled with appreciation in rupee supported markets. “Additionally, the prospects of consumption story on back of reduction in GST rates and good monsoon is restoring investors’ confidence in the markets.”
RIL Q1 results today: Key things to watch out for
Reliance Industries is likely to report an increase in its June quarter profit led by stronger petrochemical margins, offsetting weaker refining margins. RIL shares traded 0.59% up at Rs 1,116.90.
Dr Reddy’s shares down 2% as AstraZeneca files suit against company
Dr Reddy’s Laboratories Ltd shares fell 2.4% to Rs 2,083.10. AstraZeneca Plc has filed a lawsuit in the Delhi High Court relating to infringement of three patents on generic version of heart disease drug Brilinta, Dr. Reddy’s says in an exchange filing. Moreover, Dr. Reddy’s Labs net profit came in at Rs 476 crore ($69.31 million) in the quarter ended June 30, compared with Rs 66.6 crore a year earlier.
Hindalco shares surge 6% on Aleris acquisition
Hindalco Industries Ltd shares rose 6% to Rs 218.65 after the company said it has agreed to buy US aluminium sheet maker Aleris Corp. at an enterprise value of $2.58 billion to create the world’s second-largest aluminium maker.
ITC shares jump 5% after Q1 earnings
Shares of ITC Ltd surged 5% to Rs 300 after the company posted a 10% increase in net profit in the June quarter as higher taxes on cigarettes outweighed healthy performance by other segments. The cigarette and consumer goods producer recorded a profit of ₹2,818.68 crore in the three months ended 30 June. Gross sales grew 13.5% on-year to ₹18,171.66 crore.
Sensex, Nifty 50 trade at record highs
BSE Sensex traded higher by 212.87 points, or 0.58%, to 37,197.51, while the Nifty 50 rose 65.45 points, or 0.59%, to 11,232.75.
Rupee gains for 3rd session against US dollar
The Indian rupee strengthened for third sessions against US dollar tracking gains in local equities and Asian currencies. At 9.10am, the rupee was trading at 68.60 a dollar, up 0.10% from its previous close of 68.67. The currency opened at 68.63 a dollar. The 10-year bond yield stood at 7.76%, from its Thursday’s close of 7.787%. Bond yields and prices move in opposite directions. So far this year, the rupee has weakened 7%, while foreign investors have sold $1.01 million and $6.05 billion in equity and debt markets, respectively.
Opening bell: Cues to look out for before trading today
■ In the US, the major stock indexes traded in different directions on Thursday as investors grappled with a disastrous quarterly report from Facebook. Asian shares edged higher on Friday, with Australia leading the advance in the morning after a mixed session on Wall Street which saw technology stocks lag.■ HDFC AMC IPO, which opened on Wednesday, has attracted strong demand from investors. At the end of Day 2, the category reserved for retail investors was subscribed 3.50 times while that of qualified institutional buyers (QIBs) 5.89 times and non-institutional investors 13.91 times. ■ The Reserve Bank of India (RBI) is moving to shut down the corporate debt restructuring (CDR) system, its very first loan recast mechanism, following its latest framework on stressed asset resolution.■ With an eye on increasing its share of sales to the automotive segment, billionaire Kumar Mangalam Birla announced that his aluminium and copper producing giant Hindalco Industries Ltd intends to acquire Ohio-based aluminium sheet-maker Aleris Corp. at an enterprise valuation of $2.58 billion. ■ The Department of Telecommunications (DoT) has approved the merger of Vodafone India Ltd and Idea Cellular Ltd after the companies paid ₹ 3,900 crore in cash and ₹ 3,300 crore in bank guarantees towards one-time spectrum charges, a senior DoT official said.■ Bharti Airtel Ltd reported a consolidated net profit during the June quarter (Q1) on the back of a deferred tax gain of ₹ 515.6 crore, which helped it avoid a loss, as the brutal tariff war triggered by Reliance Jio Infocomm Ltd continued unabated during the quarter.■ Cigarette and consumer goods maker ITC Ltd said its net profit in the June quarter had grown 10% year-on-year (y-o-y) to ₹ 2,818.68 crore even as gross revenue grew 13.5% over the same period last year, affected by a steep increase in taxes on cigarettes.■ Cover Story, the fast fashion brand owned by Kishore Biyani’s Future Style Lab, is aiming to generate ₹100 crore in sales in the ongoing financial year.■ Earnings corner: Bank of Baroda, HCL Technologies Ltd, ICICI Bank Ltd and Reliance Industries Ltd are among the companies that will be announcing their June quarter earnings today.(Harsha Jethmalani/Mint)