Market snaps 3-day losing streak
Banking and telecom sector stocks and index heavyweight Reliance Industries (RIL) led recovery as Indian stocks snapped a three day losing streak. The barometer index, the S&P BSE Sensex, gained 291.47 points or 1.21% to settle at 24,479.84. The gains for Sensex in percentage terms were higher than the gains for the 50-unit Nifty 50 index. The Nifty gained 84.10 points or 1.14% to settle at 7,435.10. Gains in global stocks aided the upmove on the domestic bourses.
RIL edged higher ahead of its Q3 December 2015 results. Reliance Power moved higher after reporting strong third quarter results. Maruti Suzuki India dropped after a foreign brokerage reportedly said that the recent price cuts in its premium crossover S-Cross by over Rs 2 lakh in order to gain traction in the market could adversely impact the company's profit margins.
In overseas stock markets, Chinese stocks led gains in Asian equities after data pointing to slower Chinese economic growth fanned stimulus hopes. In mainland China, the Shanghai Composite index ended with gains of 3.22%. In Hong Kong, the Hang Seng index rose 2.07%. China's economy grew 6.8% in the fourth quarter from a year earlier, easing from 6.9% in the third quarter. It was the weakest pace of expansion since the first quarter of 2009, when growth tumbled to 6.2%. China's economic growth rate slowed to a 25-year low of 6.9% in 2015. China's GDP expansion stood at 7.3% in 2014.
European stocks edged higher as slowing growth in China raised hopes for further stimulus for the world's second-largest economy. US stock index futures pointed at firm opening for US stocks later in the global day. Trading in US index futures indicated that the Dow Jones Industrial Average could gain 243 points at the opening bell today, 19 January 2016.
The Sensex gained 291.47 points or 1.21% to settle at 24,479.84, its highest closing level since 14 January 2016. The index jumped 374.97 points or 1.55% at the day's high of 24,563.34. The index rose 58.86 points or 0.24% at the day's low of 24,247.23.
The Nifty gained 84.10 points or 1.14% to settle at 7,435.10, its highest closing level since 15 January 2016. The index rose 111.75 points or 1.52% at the day's high of 7,462.75. The index rose 13.15 points or 0.17% at the day's low of 7,364.15.
The market breadth indicating the overall health of the market was strong. On BSE, 1,727 shares gained and 948 shares fell. A total of 150 shares were unchanged.
The BSE Mid-Cap index rose 1.75%. The BSE Small-Cap index gained 1.74%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3049 crore, lower than turnover of Rs 3191.81 crore registered during the previous trading session.
Index heavyweight and housing finance major HDFC advanced 1.68% to Rs 1,152.85. The stock hit high of Rs 1,157.75 and low of Rs 1,130 in intraday trade. The government has recommended the proposal of HDFC Standard Life Insurance Co. to raise foreign shareholding in the company to the Cabinet Committee on Economic Affairs. Standard Life plc proposes to raise its stake in the life insurance firm to 35% from 26% by way of purchase of existing shares held by HDFC in the joint venture. The transaction involves foreign direct investment (FDI) of Rs 1705 crore. HDFC Standard Life Insurance Co. is the life insurance joint venture between HDFC and Standard Life plc.
Index heavyweight Reliance Industries (RIL) advanced 2.85% to Rs 1,047 ahead of its Q3 December 2015 results today, 19 January 2016. The stock hit a high of Rs 1,049 and a low of Rs 1,015.20 in intraday trade. As per reports, Reliance Jio Infocomm, the telecom business of RIL, will raise Rs 15000 crore through a rights issue. Reliance Jio Infocomm will be issuing 1500 crore equity shares of Rs 10 each to existing shareholders, reports indicated.
Capital goods stocks edged higher. L&T (up 3.8%), Bharat Heavy Electricals (Bhel) (up 1.44%), ABB India (up 1.9%), BEML (up 0.07%), Bharat Electronics (up 1.42%), Punj Lloyd (up 2.81%), Crompton Greaves (up 1.03%), Siemens (up 1.91%) and Thermax (up 1.18%) rose.
Reliance Power gained 3.8% after consolidated net profit rose 38.26% to Rs 351.81 crore on 45.93% growth in total income to Rs 2665.68 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours today, 19 January 2016. The company's total gross generation from operating plants surged 233.05% to 10,548 million units in Q3 December 2015 over Q3 December 2014.
Telecom stocks advanced. Bharti Airtel (up 3.26%), Tata Teleservices (Maharashtra) (up 2.59%) Reliance Communications (up 3.68%) and Idea Cellular (up 4.81%) gained.
HCL Technologies dropped 0.58%. HCL Tech' consolidated net profit rose 11.2% to Rs 1920 crore on 2.4% growth in revenue to Rs 10341 crore in Q2 December 2015 over Q1 September 2015. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 6.4% to Rs 2225 crore in Q2 December 2015 over Q1 September 2015. EBITDA margin edged up to 21.5% in Q2 December 2015 from 20.7% in Q1 September 2015. The results are as per US GAAP. The result was announced before market hours today, 19 January 2016.
In dollar terms, HCL Technologies' consolidated net profit as per US GAAP rose 10.3% to $290.8 million on 1.4% growth in revenue to $1566.1 million in Q2 December 2015 over Q1 September 2015. Revenue in constant currency terms rose 2.1% on sequential basis in Q2 December 2015.
Bank stocks gained on renewed buying. Among private bank stocks, HDFC Bank (up 0.57%), Kotak Mahindra Bank (up 0.09%), ICICI Bank (up 2.74%), Axis Bank (up 5.23%) and Yes Bank (up 3.83%) gained. IndusInd Bank fell 0.02%.
Among PSU bank stocks, State Bank of India (SBI) (up 1.1%), Punjab National Bank (up 1.75%), Canara Bank (up 0.62%), IDBI Bank (up 4.69%), Bank of India (up 1.29%) and Union Bank of India (up 1.91%) rose. Bank of Baroda declined 0.99%.
Senior officials from the Reserve Bank of India, including RBI Governor Raghuram Rajan, Deputy Governors R. Gandhi and S.S. Mundra, as well as senior officials from the concerned regulation and supervision departments, yesterday, 18 January 2016, held a meeting with senior executives of major banks, Non-Banking Financial Companies (NBFCs) and Asset Reconstruction Companies (ARCs) to discuss the current challenges with regard to the management of stressed assets in the banks' books and the implementation of the various measures in this regard. The meeting reviewed the functioning of the Joint Lenders' Forum (JLF) Mechanism, Flexible Restructuring of Long Term Project Loans, Strategic Debt Restructuring Scheme and regulations on sale of assets by banks to Asset Reconstruction Companies. The meeting took stock of the way these tools are being used by the banking system and the improvements needed to sharpen their efficacy and ease of use.
Asian Paints fell 0.63%. Asian Paints' consolidated net profit rose 25.82% to Rs 463.28 crore on 13.92% rise in total income to Rs 4195.82 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 18 January 2016. The company has made an assessment of the fair value of investment made in its subsidiary, Sleek International Private Limited (Sleek) taking into account the past business performance, prevailing business conditions and revised expectations of the future performance given the understanding built up since acquisition. Based on these factors and as a matter of prudence, the company has recognised an impairment loss on the 'goodwill on consolidation' of Rs 52.50 crore, which was recognized on acquisition of Sleek, in Q3 December 2015. This has been considered as an exceptional outgo during the quarter.
The Q3 results include financials of Kadisco Paint and Adhesive Industry Share Company, (Ethiopia) in which the company's wholly owned subsidiary, Berger International, Singapore acquired 51% stake on 9 February 2015.
Separately, Asian Paints after market hours yesterday, 18 January 2016, announced that as a further step to provide complete bathroom solutions over time, the company shall be launching a comprehensive sanitary ware range by end of January 2016 under the brand name "Ess Ess by Asian Paints”. This is a step further towards the company's vision to move from being a paints company to being a provider of complete decor solution to help customers create their dream homes, the company said.
Most auto stocks gained. Ashok Leyland (up 4.45%), Eicher Motors (up 2.2%), Bajaj Auto (up 0.73%), Hero MotoCorp (up 2.13%), and TVS Motor Company (up 3.12%) gained. Mahindra & Mahindra (M&M) declined 1.19%.
Tata Motors rose 3.71%. Tata Motors has appointed Guenter Butschek as Chief Executive Officer & Managing Director for a period of 5 years. Butschek will lead all operations of Tata Motors in India and in international markets including South Korea, Thailand, Indonesia and South Africa. Jaguar Land Rover would continue to be managed by its Chief Executive Officer and Director, Ralf Speth, who is also on the board of Tata Motors. Butschek is expected to join the company by 15 February 2016. The announcement was made after market hours yesterday, 18 January 2016.
Tata Motors market hours yesterday, 18 January 2016, also announced that the board of directors of the company at its meeting held on 18 January 2016 approved the buy-back of unsecured non-convertible debentures (NCDs) as part of its debt restructuring programme to ensure balanced maturity profile and/or better terms that would include lower cost of debt. Tata Motors will buyback NCDs aggregating Rs 200 crore due to mature on 30 November 2018 and NCDs aggregating Rs 250 crore due to mature on 28 May 2019.
Maruti Suzuki India dropped 0.61% after a foreign brokerage reportedly said that the recent price cuts in its premium crossover S-Cross by over Rs 2 lakh in order to gain traction in the market could adversely impact the company's profit margins.
Key benchmark indices snapped a three-day losing streak. The Sensex had declined 665.74 points or 2.67% in the preceding three trading sessions to settle at 24,188.37 yesterday, 18 January 2016, from its recent high of 24,854.11 on 13 January 2016. The barometer index has fallen 1,637.70 points or 6.27% in this month so far (till 19 January 2016). The Sensex is up 337.85 points or 1.39% from a 52-week low of 24,141.99 hit yesterday, 18 January 2016. The Sensex is off 5,544.90 points or 18.46% from a record high of 30,024.74 hit on 4 March 2015.
RIL edged higher ahead of its Q3 December 2015 results. Reliance Power moved higher after reporting strong third quarter results. Maruti Suzuki India dropped after a foreign brokerage reportedly said that the recent price cuts in its premium crossover S-Cross by over Rs 2 lakh in order to gain traction in the market could adversely impact the company's profit margins.
In overseas stock markets, Chinese stocks led gains in Asian equities after data pointing to slower Chinese economic growth fanned stimulus hopes. In mainland China, the Shanghai Composite index ended with gains of 3.22%. In Hong Kong, the Hang Seng index rose 2.07%. China's economy grew 6.8% in the fourth quarter from a year earlier, easing from 6.9% in the third quarter. It was the weakest pace of expansion since the first quarter of 2009, when growth tumbled to 6.2%. China's economic growth rate slowed to a 25-year low of 6.9% in 2015. China's GDP expansion stood at 7.3% in 2014.
European stocks edged higher as slowing growth in China raised hopes for further stimulus for the world's second-largest economy. US stock index futures pointed at firm opening for US stocks later in the global day. Trading in US index futures indicated that the Dow Jones Industrial Average could gain 243 points at the opening bell today, 19 January 2016.
The Sensex gained 291.47 points or 1.21% to settle at 24,479.84, its highest closing level since 14 January 2016. The index jumped 374.97 points or 1.55% at the day's high of 24,563.34. The index rose 58.86 points or 0.24% at the day's low of 24,247.23.
The Nifty gained 84.10 points or 1.14% to settle at 7,435.10, its highest closing level since 15 January 2016. The index rose 111.75 points or 1.52% at the day's high of 7,462.75. The index rose 13.15 points or 0.17% at the day's low of 7,364.15.
The market breadth indicating the overall health of the market was strong. On BSE, 1,727 shares gained and 948 shares fell. A total of 150 shares were unchanged.
The BSE Mid-Cap index rose 1.75%. The BSE Small-Cap index gained 1.74%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3049 crore, lower than turnover of Rs 3191.81 crore registered during the previous trading session.
Index heavyweight and housing finance major HDFC advanced 1.68% to Rs 1,152.85. The stock hit high of Rs 1,157.75 and low of Rs 1,130 in intraday trade. The government has recommended the proposal of HDFC Standard Life Insurance Co. to raise foreign shareholding in the company to the Cabinet Committee on Economic Affairs. Standard Life plc proposes to raise its stake in the life insurance firm to 35% from 26% by way of purchase of existing shares held by HDFC in the joint venture. The transaction involves foreign direct investment (FDI) of Rs 1705 crore. HDFC Standard Life Insurance Co. is the life insurance joint venture between HDFC and Standard Life plc.
Index heavyweight Reliance Industries (RIL) advanced 2.85% to Rs 1,047 ahead of its Q3 December 2015 results today, 19 January 2016. The stock hit a high of Rs 1,049 and a low of Rs 1,015.20 in intraday trade. As per reports, Reliance Jio Infocomm, the telecom business of RIL, will raise Rs 15000 crore through a rights issue. Reliance Jio Infocomm will be issuing 1500 crore equity shares of Rs 10 each to existing shareholders, reports indicated.
Capital goods stocks edged higher. L&T (up 3.8%), Bharat Heavy Electricals (Bhel) (up 1.44%), ABB India (up 1.9%), BEML (up 0.07%), Bharat Electronics (up 1.42%), Punj Lloyd (up 2.81%), Crompton Greaves (up 1.03%), Siemens (up 1.91%) and Thermax (up 1.18%) rose.
Reliance Power gained 3.8% after consolidated net profit rose 38.26% to Rs 351.81 crore on 45.93% growth in total income to Rs 2665.68 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours today, 19 January 2016. The company's total gross generation from operating plants surged 233.05% to 10,548 million units in Q3 December 2015 over Q3 December 2014.
Telecom stocks advanced. Bharti Airtel (up 3.26%), Tata Teleservices (Maharashtra) (up 2.59%) Reliance Communications (up 3.68%) and Idea Cellular (up 4.81%) gained.
HCL Technologies dropped 0.58%. HCL Tech' consolidated net profit rose 11.2% to Rs 1920 crore on 2.4% growth in revenue to Rs 10341 crore in Q2 December 2015 over Q1 September 2015. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 6.4% to Rs 2225 crore in Q2 December 2015 over Q1 September 2015. EBITDA margin edged up to 21.5% in Q2 December 2015 from 20.7% in Q1 September 2015. The results are as per US GAAP. The result was announced before market hours today, 19 January 2016.
In dollar terms, HCL Technologies' consolidated net profit as per US GAAP rose 10.3% to $290.8 million on 1.4% growth in revenue to $1566.1 million in Q2 December 2015 over Q1 September 2015. Revenue in constant currency terms rose 2.1% on sequential basis in Q2 December 2015.
Bank stocks gained on renewed buying. Among private bank stocks, HDFC Bank (up 0.57%), Kotak Mahindra Bank (up 0.09%), ICICI Bank (up 2.74%), Axis Bank (up 5.23%) and Yes Bank (up 3.83%) gained. IndusInd Bank fell 0.02%.
Among PSU bank stocks, State Bank of India (SBI) (up 1.1%), Punjab National Bank (up 1.75%), Canara Bank (up 0.62%), IDBI Bank (up 4.69%), Bank of India (up 1.29%) and Union Bank of India (up 1.91%) rose. Bank of Baroda declined 0.99%.
Senior officials from the Reserve Bank of India, including RBI Governor Raghuram Rajan, Deputy Governors R. Gandhi and S.S. Mundra, as well as senior officials from the concerned regulation and supervision departments, yesterday, 18 January 2016, held a meeting with senior executives of major banks, Non-Banking Financial Companies (NBFCs) and Asset Reconstruction Companies (ARCs) to discuss the current challenges with regard to the management of stressed assets in the banks' books and the implementation of the various measures in this regard. The meeting reviewed the functioning of the Joint Lenders' Forum (JLF) Mechanism, Flexible Restructuring of Long Term Project Loans, Strategic Debt Restructuring Scheme and regulations on sale of assets by banks to Asset Reconstruction Companies. The meeting took stock of the way these tools are being used by the banking system and the improvements needed to sharpen their efficacy and ease of use.
Asian Paints fell 0.63%. Asian Paints' consolidated net profit rose 25.82% to Rs 463.28 crore on 13.92% rise in total income to Rs 4195.82 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 18 January 2016. The company has made an assessment of the fair value of investment made in its subsidiary, Sleek International Private Limited (Sleek) taking into account the past business performance, prevailing business conditions and revised expectations of the future performance given the understanding built up since acquisition. Based on these factors and as a matter of prudence, the company has recognised an impairment loss on the 'goodwill on consolidation' of Rs 52.50 crore, which was recognized on acquisition of Sleek, in Q3 December 2015. This has been considered as an exceptional outgo during the quarter.
The Q3 results include financials of Kadisco Paint and Adhesive Industry Share Company, (Ethiopia) in which the company's wholly owned subsidiary, Berger International, Singapore acquired 51% stake on 9 February 2015.
Separately, Asian Paints after market hours yesterday, 18 January 2016, announced that as a further step to provide complete bathroom solutions over time, the company shall be launching a comprehensive sanitary ware range by end of January 2016 under the brand name "Ess Ess by Asian Paints”. This is a step further towards the company's vision to move from being a paints company to being a provider of complete decor solution to help customers create their dream homes, the company said.
Most auto stocks gained. Ashok Leyland (up 4.45%), Eicher Motors (up 2.2%), Bajaj Auto (up 0.73%), Hero MotoCorp (up 2.13%), and TVS Motor Company (up 3.12%) gained. Mahindra & Mahindra (M&M) declined 1.19%.
Tata Motors rose 3.71%. Tata Motors has appointed Guenter Butschek as Chief Executive Officer & Managing Director for a period of 5 years. Butschek will lead all operations of Tata Motors in India and in international markets including South Korea, Thailand, Indonesia and South Africa. Jaguar Land Rover would continue to be managed by its Chief Executive Officer and Director, Ralf Speth, who is also on the board of Tata Motors. Butschek is expected to join the company by 15 February 2016. The announcement was made after market hours yesterday, 18 January 2016.
Tata Motors market hours yesterday, 18 January 2016, also announced that the board of directors of the company at its meeting held on 18 January 2016 approved the buy-back of unsecured non-convertible debentures (NCDs) as part of its debt restructuring programme to ensure balanced maturity profile and/or better terms that would include lower cost of debt. Tata Motors will buyback NCDs aggregating Rs 200 crore due to mature on 30 November 2018 and NCDs aggregating Rs 250 crore due to mature on 28 May 2019.
Maruti Suzuki India dropped 0.61% after a foreign brokerage reportedly said that the recent price cuts in its premium crossover S-Cross by over Rs 2 lakh in order to gain traction in the market could adversely impact the company's profit margins.
Key benchmark indices snapped a three-day losing streak. The Sensex had declined 665.74 points or 2.67% in the preceding three trading sessions to settle at 24,188.37 yesterday, 18 January 2016, from its recent high of 24,854.11 on 13 January 2016. The barometer index has fallen 1,637.70 points or 6.27% in this month so far (till 19 January 2016). The Sensex is up 337.85 points or 1.39% from a 52-week low of 24,141.99 hit yesterday, 18 January 2016. The Sensex is off 5,544.90 points or 18.46% from a record high of 30,024.74 hit on 4 March 2015.
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