Market advances on positive global cues
Positive global cues helped key benchmark indices log strong gains in the week ended Friday, 29 January 2016. After seeing a narrow movement during the week, key benchmark indices rallied on final trading session of the week as global stocks surged after the Bank of Japan (BOJ) surprised investors by introducing a negative interest-rate policy and China's central bank pumped an additional 100 billion yuan ($15.21 billion) into the financial system via an extra money-market operation. Key indices edged higher in three out of four trading sessions during the truncated trading week. Key indices snapped their three-week losing trend. The BSE Mid-Cap and Small-Cap indices outperformed the Sensex during the week.
In the week ended Friday, 29 January 2016, the 30-share S&P BSE Sensex gained 435.03 points or 1.78% to settle at 24,870.69, its highest closing level since 8 January 2016. The 50-unit CNX Nifty gained 141.10 points or 1.9% to settle at 7,563.55, its highest closing level since 11 January 2016.
The BSE Mid-Cap index advanced 224.21 points or 2.2% to settle at 10,417.26. The BSE Small-Cap index advanced 271.46 points or 2.56% to settle at 10,869.84. Both these indices outperformed the Sensex.
A divergent trend among various index constituents resulted in small gains for key benchmark indices on Monday, 25 January 2016. The Sensex rose 50.29 points or 0.21% to settle at 24,485.95, its highest level since 14 January 2016.
The stock market had remained closed for the Republic Day holiday on Tuesday, 26 January 2016.
Gains for index heavyweight ITC and power sector stocks offset losses for index heavyweights HDFC and Reliance Industries (RIL) and cement stocks, resulting in a flat closing for key benchmark indices on Wednesday, 27 January 2016. The Sensex rose 6.44 points or 0.03% to settle at 24,492.39, its highest closing level since 14 January 2016.
Losses for stocks of telecom firms, banks and index heavyweight HDFC outweighed gains for stocks of oil production and exploration companies, pharma firms and index heavyweight ITC, with key benchmark indices registering small losses on Thursday, 28 January 2016. The Sensex fell 22.82 points or 0.09% to settle at 24,469.57, its lowest closing level since 22 January 2016.
Trading for the week ended on an upbeat note as key equity benchmark indices in India surged on Friday, 29 January 2016 joining in a global rally after the Bank of Japan said it would adopt a negative interest rate policy for the first time. The Sensex jumped 401.12 points or 1.64% to settle at 24,870.69, its highest closing level since 8 January 2016.
Among the 30-share Sensex pack, 17 stocks rose and the rest of them fell in the week ended Friday, 29 January 2016.
Index heavyweight and cigarette major ITC advanced 3.52%. The company's net profit rose 0.67% to Rs 2652.82 crore on 3.46% rise in total income to Rs 9854.66 crore in Q3 December 2015 over Q3 December 2014. The result hit the market at the closing bell on Friday, 22 January 2016. ITC said that its performance in Q3 December 2015 remained subdued, reflecting the severe pressure on legal cigarette industry volumes, lack of trading opportunities in agri-commodities and sluggish demand environment prevailing in the FMCG industry.
Pharma stocks gained. Cipla rose 0.97%. The company announced after market hour on Friday, 22 January 2016, that it ceases to hold any stake in Biomab Holding, Hong Kong (Biomab) as the company has completed the transfer formalities in relation to the divestment of its entire 25% stake held in Biomab. Cipla had announced on 28 October 2015 that it has entered into a definitive agreement to sell its entire 25% stake in Biomab to Biomab Brilliant, British Virgin Islands which holds the remaining 75% stake in BHL for a total consideration of $25.77 million.
Dr Reddy's Laboratories gained 7.65%. The company received approval from United States Food & Drug Administration (USFDA) for ZEMBRACESymTouch (sumatriptan succinate) injection for the treatment of acute migraines in adults.
ZEMBRACESymTouch will be marketed in the United States by Promius Pharma, a wholly owned subsidiary of Dr Reddy's.
Sun Pharmaceutical Industries jumped 10.5% to Rs 873 and was the top Sensex gainer during the week.
IT stocks gained. Wipro (up 1.98%), Infosys (up 2.55%) and TCS (up 4.18%) edged higher.
Auto stocks were mixed. Mahindra & Mahindra (M&M) (up 3.46%) and Bajaj Auto (up 1.05%) rose. Tata Motors (down 0.78%) and Hero MotoCorp (down 0.9%) fell.
Maruti Suzuki India slipped 0.24%. Maruti Suzuki India's net profit rose 27.06% to Rs 1019.30 crore on 18.95% growth in total income to Rs 15113.40 crore in Q3 December 2015 over Q3 December 2014. Higher volumes, material cost reduction initiatives and favorable foreign exchange contributed to growth in bottom line on year-on-year basis in Q3 December 2015, Maruti Suzuki India said. The result was announced market hours on Thursday, 28 January2016.
NTPC rose 3.08%. The company's net profit fell 18.9% to Rs 2492.87 crore on 8.84% decline in total income to Rs 17657.99 crore in Q3 December 2015 over Q3 December 2014. The company announced result during market hours on Friday, 29 January 2016. NTPC's non-operational income or the so called other income declined 52.39% to Rs 244.68 crore in Q3 December 2015 over Q3 December 2014.
Bank stocks declined. ICICI Bank dropped 1.14%. The bank's gross non-performing assets (NPA) edged higher to Rs 21149.19 crore as on 31 December 2015 from Rs 15857.82 crore as on 30 September 2015 and Rs 13082.62 crore as on 31 December 2014. The bank's ratio of gross NPAs to gross advances stood at 4.72% as on 31 December 2015, compared with 3.77% as on 30 September 2015 and 3.4% as on 31 December 2014. The bank's ratio of net non-performing assets (NPAs) to net advances stood at 2.28% as on 31 December 2015, compared with 1.65% as on 30 September 2015 and 1.27% as on 31 December 2014.
The bank's net profit rose 4.46% to Rs 3018.13 crore on 13.11% rise in total income to Rs 17562.95 crore in Q3 December 2015 over Q3 December 2014. The result was announced market hours on Thursday, 28 January 2016.
Axis Bank fell 3.76%. As per reports, the government is looking to sell some of its stake in the private sector bank. The Government of India (GoI) through the Specified Undertaking of the Unit Trust of India (SUUTI) holds 11.56% stake in Axis Bank.
State-run banking giant State Bank of India (SBI) fell 2.36%.
HDFC Bank rose 1.81%. HDFC Bank's net profit rose 20.12% to Rs 3356.84 crore on 22.45% rise in total income to Rs 18283.31 crore in Q3 December 2015 over Q3 December 2014. Provisions and contingencies rose 16.67% to Rs 653.88 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours on Monday, 25 January 2016.
Bharti Airtel fell 3.06%. The company's consolidated net profit fell 22.24% to Rs 1116.90 crore on 3.76% rise in total income to Rs 24103.40 crore in Q3 December 2015 over Q3 December 2014. The results are as per International Financial Reporting Standards (IFRS). The result was announced after market hours on Thursday, 28 January 2016. EBITDA rose 8.3% to Rs 8475 crore in Q3 December 2015 over Q3 December 2014. EBITDA margin expanded to 35.2% in Q3 December 2015 from 33.7% in Q3 December 2014.
Meanwhile, Bharti Airtel and Axiata Group Berhad (Axiata) on 28 January 2016, signed a definitive agreement to merge their respective telecommunication subsidiaries in Bangladesh; namely, Airtel Bangladesh (Airtel) and Robi Axiata (Robi). The agreement follows the 9 September 2015 announcement of both parties entering into an exclusive discussion to explore possibility of combining the business operations in Bangladesh.
Adani Ports and Special Economic Zone lost 4.06%. The company said during market hours on Thursday, 28 January 2016, that the Supreme Court has passed an order allowing Adani Hazira Port (AHPPL), a wholly owned subsidiary of the company, to continue its port operations and construction activity. The apex court passed the order after AHPPL challenged an order issued by National Green Tribunal, Pune cancelling the environment clearance for expansion of facilities. The court has also stayed the direction of demolition of 25 ha area on the condition that AHPPL will deposit Rs 25 crore before the collector which is to be kept in escrow account till matter is finally heard.
HDFC rose 1.71%. Net profit rose 6.66% to Rs 1520.51 crore on 6.46% rise in total income to Rs 7327.69 crore in Q3 December 2015 over Q3 December 2014. As at 31 December 2015, the loan book stood at Rs 248097 crore as against Rs 219939 crore as at 31 December 2014. The result was announced after market hours on Wednesday, 27 January 2016.
HDFC's consolidated net profit rose 11.01% to Rs 2419 crore on 2.96% rise in total income to Rs 12306.52 crore in Q3 December 2015 over Q3 December 2014.
On the global front, the Federal Reserve left the door open to a March rate increase despite acknowledging that US economic growth slowed since its last meeting in December 2015. The Fed held US interest rates unchanged as expected and said it is closely monitoring global economic and financial developments. The stance of the monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2% inflation, the Fed said in a statement on 27 January 2016.
The Bank of Japan (BOJ) surprised investors by introducing a negative interest-rate policy and China's central bank pumped an additional 100 billion yuan ($15.21 billion) into the financial system via an extra money-market operation. The BOJ said after the conclusion of a two-day monetary policy review on Friday, 29 January 2016 that it has cut the deposit rate it pays on cash parked at the BOJ by commercial banks in excess of legally required reserves, to minus 0.1% from the previous plus 0.1%. The goal is to push down borrowing costs across a broad time spectrum to stimulate inflation, the bank said.
In the week ended Friday, 29 January 2016, the 30-share S&P BSE Sensex gained 435.03 points or 1.78% to settle at 24,870.69, its highest closing level since 8 January 2016. The 50-unit CNX Nifty gained 141.10 points or 1.9% to settle at 7,563.55, its highest closing level since 11 January 2016.
The BSE Mid-Cap index advanced 224.21 points or 2.2% to settle at 10,417.26. The BSE Small-Cap index advanced 271.46 points or 2.56% to settle at 10,869.84. Both these indices outperformed the Sensex.
A divergent trend among various index constituents resulted in small gains for key benchmark indices on Monday, 25 January 2016. The Sensex rose 50.29 points or 0.21% to settle at 24,485.95, its highest level since 14 January 2016.
The stock market had remained closed for the Republic Day holiday on Tuesday, 26 January 2016.
Gains for index heavyweight ITC and power sector stocks offset losses for index heavyweights HDFC and Reliance Industries (RIL) and cement stocks, resulting in a flat closing for key benchmark indices on Wednesday, 27 January 2016. The Sensex rose 6.44 points or 0.03% to settle at 24,492.39, its highest closing level since 14 January 2016.
Losses for stocks of telecom firms, banks and index heavyweight HDFC outweighed gains for stocks of oil production and exploration companies, pharma firms and index heavyweight ITC, with key benchmark indices registering small losses on Thursday, 28 January 2016. The Sensex fell 22.82 points or 0.09% to settle at 24,469.57, its lowest closing level since 22 January 2016.
Trading for the week ended on an upbeat note as key equity benchmark indices in India surged on Friday, 29 January 2016 joining in a global rally after the Bank of Japan said it would adopt a negative interest rate policy for the first time. The Sensex jumped 401.12 points or 1.64% to settle at 24,870.69, its highest closing level since 8 January 2016.
Among the 30-share Sensex pack, 17 stocks rose and the rest of them fell in the week ended Friday, 29 January 2016.
Index heavyweight and cigarette major ITC advanced 3.52%. The company's net profit rose 0.67% to Rs 2652.82 crore on 3.46% rise in total income to Rs 9854.66 crore in Q3 December 2015 over Q3 December 2014. The result hit the market at the closing bell on Friday, 22 January 2016. ITC said that its performance in Q3 December 2015 remained subdued, reflecting the severe pressure on legal cigarette industry volumes, lack of trading opportunities in agri-commodities and sluggish demand environment prevailing in the FMCG industry.
Pharma stocks gained. Cipla rose 0.97%. The company announced after market hour on Friday, 22 January 2016, that it ceases to hold any stake in Biomab Holding, Hong Kong (Biomab) as the company has completed the transfer formalities in relation to the divestment of its entire 25% stake held in Biomab. Cipla had announced on 28 October 2015 that it has entered into a definitive agreement to sell its entire 25% stake in Biomab to Biomab Brilliant, British Virgin Islands which holds the remaining 75% stake in BHL for a total consideration of $25.77 million.
Dr Reddy's Laboratories gained 7.65%. The company received approval from United States Food & Drug Administration (USFDA) for ZEMBRACESymTouch (sumatriptan succinate) injection for the treatment of acute migraines in adults.
ZEMBRACESymTouch will be marketed in the United States by Promius Pharma, a wholly owned subsidiary of Dr Reddy's.
Sun Pharmaceutical Industries jumped 10.5% to Rs 873 and was the top Sensex gainer during the week.
IT stocks gained. Wipro (up 1.98%), Infosys (up 2.55%) and TCS (up 4.18%) edged higher.
Auto stocks were mixed. Mahindra & Mahindra (M&M) (up 3.46%) and Bajaj Auto (up 1.05%) rose. Tata Motors (down 0.78%) and Hero MotoCorp (down 0.9%) fell.
Maruti Suzuki India slipped 0.24%. Maruti Suzuki India's net profit rose 27.06% to Rs 1019.30 crore on 18.95% growth in total income to Rs 15113.40 crore in Q3 December 2015 over Q3 December 2014. Higher volumes, material cost reduction initiatives and favorable foreign exchange contributed to growth in bottom line on year-on-year basis in Q3 December 2015, Maruti Suzuki India said. The result was announced market hours on Thursday, 28 January2016.
NTPC rose 3.08%. The company's net profit fell 18.9% to Rs 2492.87 crore on 8.84% decline in total income to Rs 17657.99 crore in Q3 December 2015 over Q3 December 2014. The company announced result during market hours on Friday, 29 January 2016. NTPC's non-operational income or the so called other income declined 52.39% to Rs 244.68 crore in Q3 December 2015 over Q3 December 2014.
Bank stocks declined. ICICI Bank dropped 1.14%. The bank's gross non-performing assets (NPA) edged higher to Rs 21149.19 crore as on 31 December 2015 from Rs 15857.82 crore as on 30 September 2015 and Rs 13082.62 crore as on 31 December 2014. The bank's ratio of gross NPAs to gross advances stood at 4.72% as on 31 December 2015, compared with 3.77% as on 30 September 2015 and 3.4% as on 31 December 2014. The bank's ratio of net non-performing assets (NPAs) to net advances stood at 2.28% as on 31 December 2015, compared with 1.65% as on 30 September 2015 and 1.27% as on 31 December 2014.
The bank's net profit rose 4.46% to Rs 3018.13 crore on 13.11% rise in total income to Rs 17562.95 crore in Q3 December 2015 over Q3 December 2014. The result was announced market hours on Thursday, 28 January 2016.
Axis Bank fell 3.76%. As per reports, the government is looking to sell some of its stake in the private sector bank. The Government of India (GoI) through the Specified Undertaking of the Unit Trust of India (SUUTI) holds 11.56% stake in Axis Bank.
State-run banking giant State Bank of India (SBI) fell 2.36%.
HDFC Bank rose 1.81%. HDFC Bank's net profit rose 20.12% to Rs 3356.84 crore on 22.45% rise in total income to Rs 18283.31 crore in Q3 December 2015 over Q3 December 2014. Provisions and contingencies rose 16.67% to Rs 653.88 crore in Q3 December 2015 over Q3 December 2014. The result was announced during market hours on Monday, 25 January 2016.
Bharti Airtel fell 3.06%. The company's consolidated net profit fell 22.24% to Rs 1116.90 crore on 3.76% rise in total income to Rs 24103.40 crore in Q3 December 2015 over Q3 December 2014. The results are as per International Financial Reporting Standards (IFRS). The result was announced after market hours on Thursday, 28 January 2016. EBITDA rose 8.3% to Rs 8475 crore in Q3 December 2015 over Q3 December 2014. EBITDA margin expanded to 35.2% in Q3 December 2015 from 33.7% in Q3 December 2014.
Meanwhile, Bharti Airtel and Axiata Group Berhad (Axiata) on 28 January 2016, signed a definitive agreement to merge their respective telecommunication subsidiaries in Bangladesh; namely, Airtel Bangladesh (Airtel) and Robi Axiata (Robi). The agreement follows the 9 September 2015 announcement of both parties entering into an exclusive discussion to explore possibility of combining the business operations in Bangladesh.
Adani Ports and Special Economic Zone lost 4.06%. The company said during market hours on Thursday, 28 January 2016, that the Supreme Court has passed an order allowing Adani Hazira Port (AHPPL), a wholly owned subsidiary of the company, to continue its port operations and construction activity. The apex court passed the order after AHPPL challenged an order issued by National Green Tribunal, Pune cancelling the environment clearance for expansion of facilities. The court has also stayed the direction of demolition of 25 ha area on the condition that AHPPL will deposit Rs 25 crore before the collector which is to be kept in escrow account till matter is finally heard.
HDFC rose 1.71%. Net profit rose 6.66% to Rs 1520.51 crore on 6.46% rise in total income to Rs 7327.69 crore in Q3 December 2015 over Q3 December 2014. As at 31 December 2015, the loan book stood at Rs 248097 crore as against Rs 219939 crore as at 31 December 2014. The result was announced after market hours on Wednesday, 27 January 2016.
HDFC's consolidated net profit rose 11.01% to Rs 2419 crore on 2.96% rise in total income to Rs 12306.52 crore in Q3 December 2015 over Q3 December 2014.
On the global front, the Federal Reserve left the door open to a March rate increase despite acknowledging that US economic growth slowed since its last meeting in December 2015. The Fed held US interest rates unchanged as expected and said it is closely monitoring global economic and financial developments. The stance of the monetary policy remains accommodative, thereby supporting further improvement in labor market conditions and a return to 2% inflation, the Fed said in a statement on 27 January 2016.
The Bank of Japan (BOJ) surprised investors by introducing a negative interest-rate policy and China's central bank pumped an additional 100 billion yuan ($15.21 billion) into the financial system via an extra money-market operation. The BOJ said after the conclusion of a two-day monetary policy review on Friday, 29 January 2016 that it has cut the deposit rate it pays on cash parked at the BOJ by commercial banks in excess of legally required reserves, to minus 0.1% from the previous plus 0.1%. The goal is to push down borrowing costs across a broad time spectrum to stimulate inflation, the bank said.
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