Key benchmark indices settled with small gains after what was a lackluster and rangebound trading session. The barometer index, the S&P BSE Sensex rose 25.61 points or 0.09% to settle at 27,941.51. The gains for the Nifty 50 index were higher than the Sensex’s gains in percentage terms. The Nifty gained 22.75 points or 0.26% to settle at 8,638. The Sensex gained for the second day in a row today, 28 October 2016.
The Sensex rose 25.61 points or 0.09% to settle at 27,941.51, its highest closing level since 25 October 2016. The index rose 84.24 points or 0.3% at the day’s high of 28,000.14. The lost 126.06 points or 0.45% at the day’s low of 27,789.84.
The Nifty gained 22.75 points or 0.26% to settle at 8,638, its highest closing level since 25 October 2016. The index gained 38.50 points or 0.44% at the day’s high of 8,653.75. The index lost 33.50 points or 0.38% at the day’s low of 8,615.25.
The market breadth indicating the overall health of the market was strong. On BSE, 1,557 shares rose and 1,088 shares fell. A total of 283 shares were unchanged. The BSE Mid-Cap index rose 0.95%. The BSE Small-Cap index gained 0.96%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3317.77 crore, higher than turnover of Rs 3264.55 crore registered during the previous trading session.
Bank stocks gained. Among public sector banks, UCO Bank (up 1.61%), Syndicate Bank (up 0.2%), Punjab National Bank (up 1.37%), Corporation Bank (up 0.24%), Allahabad Bank (up 0.53%), Bank of Baroda (up 1.83%), State Bank of India (SBI) (up 1.1%), Union Bank of India (up 2.5%), and Bank of India (up 0.48%) edged higher. Canara Bank (down 0.27%) and United Bank of India (down 0.47%) declined.
Among private sector banks, Axis Bank (up 0.28%), HDFC Bank (up 0.9%), Kotak Mahindra Bank (up 1.19%), Federal Bank (up 0.61%), Yes Bank (up 1.26%), and IndusInd Bank (up 1.56%) edged higher. ICICI Bank declined 2.41%.
Tech Mahindra rose 4.75%. The company’s consolidated net profit declined 19.22% to Rs 643.40 crore on 3.56% growth in income from operations to Rs 7167.41 crore in Q2 September 2016 over Q1 June 2016. The result was announced after market hours yesterday, 27 October 2016.
In dollar terms, the company’s consolidated net profit declined 13.4% to $96.5 million on 6.1% growth in revenue to $1.072 billion in Q2 September 2016 over Q1 June 2016. Revenue in constant currency terms rose 5% in Q2 September 2016 over Q1 June 2016.
Vineet Nayyar, Vice Chairman, Tech Mahindra said that the company’s performance during the quarter indicates that its early investments in new technologies and capabilities are starting to show result.
C P Gurnani, Managing Director & CEO, Tech Mahindra said that overall, it was a very good quarter with the growth well-supported by its key communications and enterprises businesses. The company had some marquee wins which align very well with its strategy of catering to the connected world, he said.
NTPC rose 0.33%. The company’s net profit fell 17.87% to Rs 2495.97 crore on 7.52% rise in total income to Rs 19588.56 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 28 October 2016.
Grasim Industries gained 0.91% after consolidated net profit rose 50.39% to Rs 845.96 crore on 3.81% rise in total income to Rs 9668.55 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 28 October 2016. The company’s consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 29.03% to Rs 2098 crore in Q2 September 2016 over Q2 September 2015, driven by the good performance from all the businesses. The growth in net profit was supported by higher operating leverage and lower interest cost.
Eicher Motors fell 2.21%. The company’s consolidated net profit rose 45.19% to Rs 413.16 crore on 35.59% increase in total income to Rs 2047.47 crore in Q2 September 2016 over Q2 September 2015. The result was announced during trading hours today, 28 October 2016.
Bajaj Auto rose 3.35% after consolidated net profit rose 7.2% to Rs 1200.72 crore on 1.49% increase in total income to Rs 6775.03 crore in Q2 September 2016 over Q2 September 2015. The Q2 result was announced during trading hours today, 28 October 2016. Bajaj Auto’s operating earnings before interest, taxes, depreciation and amortization (EBITDA) margin improved to 22.3% in Q2 September 2016 from 21.2% in Q1 June 2016. This was achieved due to richer product mix, especially for domestic market, Bajaj Auto said.
Bajaj Auto’s total sales fell 2% to 10.31 lakh units in Q2 September 2016 over Q2 September 2015. The company’s surplus cash and cash equivalents stood at Rs 11398 crore as on 30 September 2016, as against Rs 10701 crore as on 30 June 2016. Bajaj Auto said in a statement that the company continues to witness headwinds in international markets.
Metal & mining stocks gained. JSW Steel (up 1.35%), Hindustan Copper (up 1.02%), Hindalco Industries (up 0.84%), Hindustan Zinc (up 0.9%), Steel Authority of India (Sail) (up 4.41%), and National Aluminum Company (up 7.13%) gained. Bhushan Steel fell 3.48%. Jindal Steel & Power shed 1.18%.
High Grade Copper for December 2016 delivery was currently up 0.51% at $2.1745 per pound on the COMEX.
NMDC gained 6.41% after the company said after market hours yesterday, 27 October 2016 that it has signed a tripartite memorandum of understanding (MOU) with Government of Madhya Pradesh and Madhya Pradesh State Mining Corporation (MPSMCL) for geological & geophysical exploration of various minerals in Madhya Pradesh. NMDC had made intentions to invest during the global investors summit held in October 2016 for exploration for different minerals in various districts of Madhya Pradesh over an area of approximately 7,200 square kilometers. As per the MOU, on successful establishment of mineral blocks through this proposed exploration, NMDC would be forming a joint venture with MPSMCL with equity 51:49 (NMDC-MPSMCL) for mining of such blocks.
Tata Steel rose 1.85% after the company announced equity partnership for its Canadian Iron Ore mines, significant milestone in Kalinganagar India and continued pursuit of its European strategy. The announcement was made after market hours yesterday, 27 October 2016. Tata Steel Mineral Canada together with its parent companies signed definitive agreements for concluding investments of C$125 million as equity and C$50 million as debt with Government of Quebec’s investment entities. Resources Quebec (RQ) and Investment Quebec (IQ) respectively, totalling C$175 million. The investment will result in 18% equity stake for Resources Quebec in Tata Steel Minerals Canada in line with the carrying value of the investment in Canadian iron ore assets for Tata Steel. Consequently, the shareholdings of Tata Steel and New Millennium iron will be adjusted to 77.68% and 4.32% respectively.
Vedanta rose 1.48% after consolidated net profit rose 17% to Rs 1252 crore on 4% decline in net sales to Rs 15666 crore in Q2 September 2016 over Q2 September 2015. Vedanta’s consolidated attributable profit after tax before exceptional items rose 12% to Rs 1252 crore on 4% decline in net sales to Rs 15666 crore in Q2 September 2016 over Q2 September 2015.
Revenues declined in Q2 September 2016 over Q2 September 2015, on account of lower oil and copper prices, lower volumes at Zinc and Cairn India, partially offset by ramp-ups in volume from the Power business. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 8% to Rs 4640 crore in Q2 September 2016 over Q2 September 2015. EBITDA rose on account of higher metal prices, improved cost efficiencies at aluminium business, lower discount to Brent, ramp up of volumes in the power business, partially offset by lower volumes from Zinc India as per the mine plans and lower oil prices. EBITDA margin was reported at 39% in Q2 September 2016, higher than 34% in Q2 September 2015.
Bharat Electronics rose 3.9% after net profit rose 68.21% to Rs 346.25 crore on 15.14% rise in net sales to Rs 1755.89 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 27 October 2016. Bharat Electronics said its order book stood at Rs 34675 crore as on 1 October 2016. The company said it received orders worth Rs 4127 crore in Q2 September 2016. Export order book stood at $102 million as on 1 October 2016.
In overseas stock markets, European stocks edged lower as earnings season continues amid heightened expectations that the US Federal Reserve will raise rates in the near-term. Euro zone economic sentiment was much better than expected in October driven by higher optimism in industry and services, a monthly European Commission survey showed. The Commission said the economic sentiment indicator rose to 106.3 in October from 104.9 in September, well above market expectations. Asian stocks witnessed a mixed trend. US stocks settled with modest losses yesterday, 27 October 2016 as a selloff in government bonds hit yield-sensitive sectors such as real estate and utilities.
The Sensex has gained 105 points or 0.37% in two sessions from a close of 27,836.51 on 26 October 2016. The Sensex has risen 75.55 points or 0.27% in this month so far (till 28 October 2016). The Sensex has risen 1,823.97 points or 6.98% in calendar year 2016 so far (till 28 October 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,446.90 points or 24.21%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 1,135.77 points or 3.9%. The Sensex is off 2,083.23 points or 6.93% from a record high of 30,024.74 hit on 4 March 2015.
Meanwhile, the stock market will remain open for a special trading session (Muhurat trading) on Sunday, 30 October 2016, on account of Diwali. The market remains open from 18:30 to 19:30 IST on that day.