Sensex, Nifty attain highest closing level in more than 7 months
Amid a divergent trend among various index constituents, the two key benchmark indices registered small gains. The barometer index, the S&P BSE Sensex, rose 72 points or 0.27% to settle at 26,725.60. The Nifty 50 index rose 21.85 points or 0.27% to settle at 8,178.50. With fifth straight trading session of gains, the Sensex and the Nifty, both, attained their highest closing levels in more than 7 months.
Hindalco Industries surged 12.03% after the company announced strong Q4 March 2016 results. Shares of state-run coal mining giant Coal India moved higher after announcing increase in coal prices. Tata Motors edged higher ahead of the announcement of its Q4 March 2016 results. Maruti Suzuki India (MSIL) edged lower after the company announced temporary suspension of manufacturing of cars from its Manesar and Gurgaon facilities due to fire accident at the Manesar facilities of its supplier Subros.
Bharat Heavy Electricals dropped after reporting dismal Q4 March 2016 results. But, the NTPC stock shrugged off weak financial performance for Q4 March 2016. Tech Mahindra edged higher after the company's announcement that it has entered into an agreement to acquire UK based Target Group for an enterprise value of GBP 112 million.
State Bank of India (SBI) extended gains registered during the previous trading session after the bank's Chairman Arundhati Bhattacharya said in a post-result conference call held on Friday, 27 May 2016, that bank proposes to contain fresh slippages ratio within 2.7% of advances in the year ending 31 March 2017 (FY 2017).
The Sensex rose 72 points or 0.27% to settle at 26,725.60, its highest closing level since 29 October 2015. The index rose 141.36 points or 0.53% at the day's high of 26,794.96. The barometer index fell 30.27 points or 0.11% at the day's low of 26,623.33.
The Nifty 50 index rose 21.85 points or 0.27% to settle at 8,178.50, its highest closing level since 27 October 2015. The index rose 43.35 points or 0.53% at the day's high of 8,200. The index fell 5.85 points or 0.07% at the day's low of 8,150.80.
The BSE Mid-Cap index rose 0.35%. The BSE Small-Cap index rose 0.42%. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,239 shares rose and 1,372 shares fell. A total of 190 shares were unchanged.
The total turnover on BSE amounted to Rs 2563 crore, lower than turnover of Rs 3371.35 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Metal index (up 2.28%), the S&P BSE IT index (up 1.33%), the S&P BSE Teck index (up 1.17%), the S&P BSE Auto index (up 1.11%), the S&P BSE Industrials index (up 1.07%), the S&P BSE Utilities index (up 0.94%), the S&P BSE Telecom index (up 0.59%), the S&P BSE Basic Materials index (up 0.46%), the S&P BSE Power index (up 0.38%), the S&P BSE Consumer Durables index (up 0.31%) and the S&P BSE Capital Goods index (up 0.29%), outperformed the Sensex. The S&P BSE Bankex (up 0.13%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.12%), the S&P BSE Energy index (up 0.08%), the S&P BSE Healthcare index (down 0.02%), the S&P BSE FMCG index (down 0.05%), the S&P BSE Finance index (down 0.16%), the S&P BSE Oil & Gas index (down 0.4%) and the S&P BSE Realty index (down 1.02%) underperformed the Sensex.
Tata Steel declined 1.79% at Rs 323.10. Global credit rating agency Moody's Investors Service on Friday, 27 May 2016, said that the proposed sale of Tata Steel UK's long products Europe business to Greybull Capital and Tata Steel Europe's decision to sell its UK business are credit positive on its ratings on Tata Steel and Tata Steel UK.
Moody's said that the divestment of the loss-making operations will reduce the drag on the European business' profitability, which has been under strain for a while. Tata Steel Europe has initiated the process of selling its entire holding in Tata Steel UK due to the deteriorating financial performance of the UK subsidiary. Moody's said that it will watch out for clarity on divestment of liabilities including pensions and erasing the negative EBITDA impact of the UK facilities on Tata Steel UK's credit metrics would be critical for any change in outlook to its rating on Tata Steel UK.
Hindalco Industries surged 12.03% at Rs 102.90 after net profit jumped 123.36% to Rs 356.33 crore on 7.6% fall in total income to Rs 8871.66 crore in Q4 March 2016 over Q4 March 2015. The result was announced on Saturday, 28 May 2016. The company's revenue from operations dropped 7.51% to Rs 8667.52 crore in Q4 March 2016 over Q4 March 2015. The company attributed the decline in revenue to a sharp decline in both aluminium and copper realizations. In aluminium, the impact was much severe due to a sharp fall in local market premium and a sharp surge in imports of aluminium in the country. The company said its operational performance was strong. A strong increase in aluminium volumes, a thrust on value addition across businesses, lower cost of raw materials and a weaker rupee helped the company partially offset the impact of a sharp fall in realizations. The bottom line was boosted by base effect. The company's bottom line in Q4 March 2015 was adversely impacted by a non-recurring expenditure of Rs 146.48 crore.
With regard to the future business outlook, Hindalco said that the uncertain global macros pose several challenges for the company. The management will continue its un-relented focus on operational excellence, enhanced value addition and cash conservation to tide over these circumstances.
Shares of state-run coal mining giant Coal India rose 3.8% at Rs 292.05 after the company's board of directors at its meeting held on Saturday, 28 May 2016, approved about 6.29% increase in coal prices with effect from 30 May 2016. This will be applicable to all subsidiaries of Coal India and NEC for regulated and non-regulated sectors. Due to this revision, Coal India will earn additional revenue of about Rs 3234 crore for the balance period of current financial year i.e. from 30 May 2016 to 31 March 2017. The board has also approved the differential price for non-regulated sector at a reduced rate of 20% over the price of regulated sector for G6 to G17 grades of coal for all subsidiaries of Coal India.
Coal India's consolidated net profit rose 0.22% to Rs 4247.93 crore on 0.72% decline in total income to Rs 22898.79 crore in Q4 March 2016 over Q4 March 2015. The result was announced on Saturday, 28 May 2016.
Tata Motors rose 4.23% at Rs 420.55 ahead of its Q4 March 2016 results today, 30 May 2016.
Maruti Suzuki India (MSIL) edged lower after the company announced temporary suspension of manufacturing of cars from its Manesar and Gurgaon facilities due to fire accident at the Manesar facilities of its supplier Subros. The stock shed 1.65% at Rs 4,073.15. Maruti will temporarily suspend car production at its Manesar and Gurgaon facilities starting second half of 30 May 2016. Subros and MSIL are jointly assessing the extent of damage to essential equipment, MSIL said. MSIL said that it is examining the options available for the procurement of components from other facilities. Production will resume as soon as components become available, MSIL said. The announcement was made during market hours today, 30 May 2016.
Separately, MSIL after market hours on Friday, 27 May 2016, announced that the car maker is all set to start exports of its much awaited light commercial vehicle (LCV) Super Carry to South Africa and Tanzania. The first lot of nearly 100 Super Carry LCVs has been dispatched for shipment, MSIL said. The shipment to South Africa and Tanzania is of the petrol variant of Super Carry, the company said. The petrol variant for export market is powered by G12B engine. Besides African markets, the company also plans to export the Super Carry to South Asian Association for Regional Cooperation (SAARC) nations, it added. Based on the feedback, the company will explore export opportunities for Super Carry in other international markets, MSIL said. The India launch for Super Carry is planned in Q2 September 2016. To begin with, it will be launched in select parts of the country. For the domestic market, Super Carry will be powered by the E08 diesel engine. The company is setting up a separate retail channel in the Indian market exclusively for the Super Carry, MSIL said.
Mahindra & Mahindra (M&M) declined in volatile trade after announcing Q4 March 2016 results. The stock fell 0.57% to Rs 1,327.50. The stock hit a high of Rs 1,351.20 and a low of Rs 1,314.10 in intraday trade. The company's net profit rose 6.02% to Rs 583.73 crore on 14.57% growth in total income to Rs 10912.45 crore in Q4 March 2016 over Q4 March 2015. The result was announced during market hours today, 30 May 2016.
The combined net profit of M&M and Mahindra Vehicle Manufacturers (MVML) before exceptional items rose 20.5% to Rs 662 crore on 16% growth in gross revenue plus other income to Rs 11669 crore in Q4 March 2016 over Q4 March 2015. MVML was set up as a 100% subsidiary of M&M with a view to sourcing contemporary products for expanding the market offerings of the company.
The NTPC stock shrugged off weak financial performance for Q4 March 2016. The stock rose 2.29% at Rs 143.10. The company's net profit fell 7.73% to Rs 2716.41 crore on 6.19% decline in net total income from operations to Rs 18112.62 crore in Q4 March 2016 over Q4 March 2015. The result hit the market at the fag end of the trading session.
NTPC said that the group's installed capacity increased to 46,653 megawatts (MW) as on 31 March 2016 from 44,398 MW as on 31 March 2015. Its consolidated commercial capacity increased to 45,103 MW as on 31 March 2016 from 43,143 MW as on 31 March 2015. The plant load factor (PLF) of coal-based generation units was reported at 81.30% in Q4 March 2016, lower than 82.68% in Q4 March 2015. The PLF of gas based generation units was reported at 17.83% in the quarter ended 31 March 2016, which was lower than 26.68% in the quarter ended 31 March 2015.
The company's plant availability factor (PAF) for coal-based units was reported at 95.24% in the quarter ended 31 March 2016, lower than 97.18% in the quarter ended 31 March 2015. PAF for gas-based units was reported at 98.20% in the quarter ended 31 March 2016, higher than 96.46% in the quarter ended 31 March 2015.
Bharat Heavy Electricals (Bhel) lost 5.81% at Rs 120.75 after net profit fell 59.52% to Rs 359.58 crore on 18.36% decline in total income to Rs 10418.64 crore in Q4 March 2016 over Q4 March 2015. The result was announced after trading hours on Friday, 27 May 2016. Bhel's order backlog stood at about Rs 1.10 lakh crore as on 31 March 2016. The company removed orders amounting Rs 3783 crore from the order book in Q4 March 2016. It removed orders amounting Rs 7429 crore from the order book in the year ended 31 March 2016, which are not likely to commence.
Bhel is set to move out as a constituent of the Sensex with effect from 20 June 2016. Power Grid Corporation of India (PGCIL) will replace Bhel as a constituent of the Sensex from that date.
Realty major DLF fell 2.05% at Rs 126.35 after consolidated net profit declined 22.86% to Rs 132.39 crore on 19.55% rise in net sales to Rs 2335.56 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours on Friday, 27 May 2016. In a post result statement, DLF said that the company believes that the residential real estate sector in India can see a turnaround in the near future. During the last few quarters, DLF has witnessed large number of inquiries signalling early green shoots of recovery for the sector.
With regard to the commercial real estate development business, DLF has started construction of a new office project called Cyber Park at a prime location just opposite Oberoi and Trident Hotels in Gurgaon, with an approximate size of 2.2 msf (including TOD). With regard to the retail mall development business, DLF officially opened its mall Mall of India in Noida with around 90% pre-leasing.
Tech Mahindra rose 1.54% at Rs 543.95 after the company said it has entered into an agreement to acquire UK based Target Group for an enterprise value of GBP 112 million. The transaction is expected to close by 31 October 2016, subject to the receipt of regulatory approvals. Target Group is a financial technology (Fintech) and BPaaS (Business Process as a Service) provider in the banking, asset management, government and insurance sectors. Tech Mahindra said that the acquisition will broaden its service offerings in the banking, financial services and insurance (BFSI) domain and strengthen its presence in Europe. The acquisition will enhance Tech Mahindra's capabilities and allow Tech Mahindra to capture a larger share of the GBP 45-60 billion annual spend by UK BFSI companies on software and services.
Target Group had revenue of GBP 51 million in the year ended 31 December 2015 (FY 2015). After the completion of the acquisition by Tech Mahindra, Target Group will remain a standalone entity retaining its existing brand, which has a strong reputation in the marketplace. The entire management team at Target will stay with the business and continue to have full operational responsibility. Tech Mahindra made the announcement of the acquisition after trading hours on Friday, 27 May 2016.
Index heavyweight and software major Infosys rose 1.37% at Rs 1,263.45. The stock hit a record high of Rs 1,270 in intraday day. The stock hit a low of Rs 1,244.10 in intraday trade.
Sun Pharmaceutical Industries (Sun Pharma) fell 1.57% at Rs 812.50 after the company announced that one of the company's US subsidiaries Sun Pharmaceutical Industries, Inc (SPII) has received a grand jury subpoena from the United States Department of Justice, Antitrust Division seeking documents from SPII and its affiliates relating to corporate and employee records, generic pharmaceutical products and pricing, communications with competitors and others regarding the sale of generic pharmaceutical products, and certain other related matters. SPII is currently responding to the subpoena, Sun Pharma said. Sun Pharma said it is of the opinion that the outcome of the referred enquiry is unlikely to have any material adverse impact on the consolidated operations or consolidated financial results of the company. The announcement was made after market hours on Friday, 27 May 2016.
Sun Pharma is scheduled to announce its Q4 March 2016 results today, 30 May 2016.
Bank stocks witnessed a mixed trend. Among public sector banks, Indian Bank (up 1.79%), Syndicate Bank (up 1.72%), Bank of Maharashtra (up 1.25%), Punjab National Bank (up 0.72%), Union Bank of India (up 0.7%), Andhra Bank (up 0.62%), Central Bank of India (up 0.43%), Punjab and Sind Bank (up 0.25%) and UCO Bank (up 0.14%), edged higher. Canara Bank (down 0.03%), Bank of Baroda (down 0.18%), Allahabad Bank (down 0.19%), Vijaya Bank (down 0.65%), IDBI Bank (down 0.67%), Bank of India (down 0.98%), Dena Bank (down 1.86%) and United Bank of India (down 1.97%), edged lower.
State Bank of India (SBI) extended gains registered during the previous trading session after the bank's Chairman Arundhati Bhattacharya said in a post-result conference call held on Friday, 27 May 2016, that bank proposes to contain fresh slippages ratio within 2.7% of advances in the year ending 31 March 2017 (FY 2017). The stock rose 1.59% at Rs 198.65. The SBI stock surged 6.42% to settle at Rs 195.55 during the previous trading session on Friday, 27 May 2016, shrugging off weak financial performance for Q4 March 2016. SBI has identified about Rs 31000 crore of loans as under special watchlist for FY 2017, which is just 2.1% of overall loan book. Of these watch list accounts, about 70% of loans have more chances of slipping to NPA category. About Rs 11655 crore of watchlist accounts come from restructured advance book, while the sectors contributing to the watch list accounts are power (Rs 4748 crore), iron & steel (Rs 4299 crore), engineering (Rs 3574 crore), oil & gas (Rs 3396 crore), construction (Rs 2608 crore), chemicals (Rs 2326 crore) etc. SBI aims to achieve credit growth of 12-14% in the current financial year, to be driven by retail credit and good quality corporate book.
SBI's net profit fell 66.23% to Rs 1263.81 crore on 10.10% increase in total income to Rs 53526.97 crore in Q4 March 2016 over Q4 March 2015. The result hit the market during trading hours on 27 May 2016.
Among private sector banks, City Union Bank (down 0.47%), Federal Bank (down 0.47%) and IndusInd Bank (down 0.29%), edged lower. Axis Bank (up 0.04%), Kotak Mahindra Bank (up 0.11%) and ICICI Bank (up 0.70%), edged higher.
Index heavyweight HDFC Bank fell 0.61% at Rs 1,180.05. The stock hit a high of Rs 1,194.80 and a low of Rs 1178.05 in intraday trade.
Yes Bank fell 0.12% at Rs 1,025.50. The stock turned ex-dividend today, 30 May 2016, for final dividend of Rs 10 per share for the year ended 31 March 2016.
Index heavyweight and housing finance major HDFC fell 2.16% at Rs 1230.20. The stock hit a high of Rs 1,258.90 and a low of Rs 1,213.30 in intraday trade.
The Sensex and the Nifty edged higher for the fifth day in a row. The Sensex has gained 1,495.24 points or 5.93% in five trading sessions from its close of 25,230.36 on 23 May 2016. The Sensex has gained 1,122.98 points or 4.39% in this month so far (till 30 May 2016). The Sensex has risen 613.06 points or 2.35% in calendar year 2016 so far (till 30 May 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,233.99 points or 18.82%. The Sensex is off 1,850.73 points or 6.48% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 3,298.14 points or 10.98% from a record high of 30,024.74 hit on 4 March 2015.
In overseas stock markets, European stocks were mixed, with the prospect of a US interest rate hike coming sooner rather than later prompting investors to avoid aggressive bets. In Asia, Japanese stocks edged higher as the yen weakened against the dollar. The Nikkei 225 Average closed 1.39% higher. A weaker local currency benefits exporters, as they can sell their goods at more competitive prices overseas. Japanese Prime Minister Shinzo Abe said he would delay a sales tax hike scheduled for April next year by 2-1/2 years, Masahiko Komura, vice president of the ruling Liberal Democratic Party, told reporters today, 30 May 2016.
Chinese stocks edged higher in volatile trade after the Shanghai and Shenzhen stock exchanges on Friday, 27 May 2016, announced rules on share trading suspensions, removing one potential roadblock to inclusion Chinese A shares or yuan-denominated shares in MSCI Inc.'s global benchmark indexes, a move which could direct large amount of capital into China's stock markets. In mainland China, the Shanghai Composite ended 0.05% higher. In Hong Kong, the Hang Seng index closed 0.26% higher. MSCI said in March a decision to include 5 percent of yuan-denominated shares in its index will depend on regulators implementing changes so that widespread halts can't happen again.
US stocks edged higher during the previous trading session on Friday, 27 May 2016, after the latest data showed that the economy's slowdown in the first quarter wasn't as bad as initially thought. US GDP expanded at a 0.8% seasonally adjusted annual rate in the first three months of 2016, up from an initial estimate for 0.5% growth, the Commerce Department said on Friday, 27 May 2016. The faster-than-expected pace of growth, however, still represents a deterioration from the fourth quarter's 1.4% growth.
Federal Reserve Chairwoman Janet Yellen said in a speech on 27 May 2016 that a rate increase would be appropriate in coming months if the economy continues to strengthen. The Fed has kept the benchmark fed funds rate unchanged after raising it for the first time in nearly a decade in December 2015. The Federal Open Market Committee next undertakes monetary policy review on 14-15 June 2016.
Hindalco Industries surged 12.03% after the company announced strong Q4 March 2016 results. Shares of state-run coal mining giant Coal India moved higher after announcing increase in coal prices. Tata Motors edged higher ahead of the announcement of its Q4 March 2016 results. Maruti Suzuki India (MSIL) edged lower after the company announced temporary suspension of manufacturing of cars from its Manesar and Gurgaon facilities due to fire accident at the Manesar facilities of its supplier Subros.
Bharat Heavy Electricals dropped after reporting dismal Q4 March 2016 results. But, the NTPC stock shrugged off weak financial performance for Q4 March 2016. Tech Mahindra edged higher after the company's announcement that it has entered into an agreement to acquire UK based Target Group for an enterprise value of GBP 112 million.
State Bank of India (SBI) extended gains registered during the previous trading session after the bank's Chairman Arundhati Bhattacharya said in a post-result conference call held on Friday, 27 May 2016, that bank proposes to contain fresh slippages ratio within 2.7% of advances in the year ending 31 March 2017 (FY 2017).
The Sensex rose 72 points or 0.27% to settle at 26,725.60, its highest closing level since 29 October 2015. The index rose 141.36 points or 0.53% at the day's high of 26,794.96. The barometer index fell 30.27 points or 0.11% at the day's low of 26,623.33.
The Nifty 50 index rose 21.85 points or 0.27% to settle at 8,178.50, its highest closing level since 27 October 2015. The index rose 43.35 points or 0.53% at the day's high of 8,200. The index fell 5.85 points or 0.07% at the day's low of 8,150.80.
The BSE Mid-Cap index rose 0.35%. The BSE Small-Cap index rose 0.42%. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,239 shares rose and 1,372 shares fell. A total of 190 shares were unchanged.
The total turnover on BSE amounted to Rs 2563 crore, lower than turnover of Rs 3371.35 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Metal index (up 2.28%), the S&P BSE IT index (up 1.33%), the S&P BSE Teck index (up 1.17%), the S&P BSE Auto index (up 1.11%), the S&P BSE Industrials index (up 1.07%), the S&P BSE Utilities index (up 0.94%), the S&P BSE Telecom index (up 0.59%), the S&P BSE Basic Materials index (up 0.46%), the S&P BSE Power index (up 0.38%), the S&P BSE Consumer Durables index (up 0.31%) and the S&P BSE Capital Goods index (up 0.29%), outperformed the Sensex. The S&P BSE Bankex (up 0.13%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.12%), the S&P BSE Energy index (up 0.08%), the S&P BSE Healthcare index (down 0.02%), the S&P BSE FMCG index (down 0.05%), the S&P BSE Finance index (down 0.16%), the S&P BSE Oil & Gas index (down 0.4%) and the S&P BSE Realty index (down 1.02%) underperformed the Sensex.
Tata Steel declined 1.79% at Rs 323.10. Global credit rating agency Moody's Investors Service on Friday, 27 May 2016, said that the proposed sale of Tata Steel UK's long products Europe business to Greybull Capital and Tata Steel Europe's decision to sell its UK business are credit positive on its ratings on Tata Steel and Tata Steel UK.
Moody's said that the divestment of the loss-making operations will reduce the drag on the European business' profitability, which has been under strain for a while. Tata Steel Europe has initiated the process of selling its entire holding in Tata Steel UK due to the deteriorating financial performance of the UK subsidiary. Moody's said that it will watch out for clarity on divestment of liabilities including pensions and erasing the negative EBITDA impact of the UK facilities on Tata Steel UK's credit metrics would be critical for any change in outlook to its rating on Tata Steel UK.
Hindalco Industries surged 12.03% at Rs 102.90 after net profit jumped 123.36% to Rs 356.33 crore on 7.6% fall in total income to Rs 8871.66 crore in Q4 March 2016 over Q4 March 2015. The result was announced on Saturday, 28 May 2016. The company's revenue from operations dropped 7.51% to Rs 8667.52 crore in Q4 March 2016 over Q4 March 2015. The company attributed the decline in revenue to a sharp decline in both aluminium and copper realizations. In aluminium, the impact was much severe due to a sharp fall in local market premium and a sharp surge in imports of aluminium in the country. The company said its operational performance was strong. A strong increase in aluminium volumes, a thrust on value addition across businesses, lower cost of raw materials and a weaker rupee helped the company partially offset the impact of a sharp fall in realizations. The bottom line was boosted by base effect. The company's bottom line in Q4 March 2015 was adversely impacted by a non-recurring expenditure of Rs 146.48 crore.
With regard to the future business outlook, Hindalco said that the uncertain global macros pose several challenges for the company. The management will continue its un-relented focus on operational excellence, enhanced value addition and cash conservation to tide over these circumstances.
Shares of state-run coal mining giant Coal India rose 3.8% at Rs 292.05 after the company's board of directors at its meeting held on Saturday, 28 May 2016, approved about 6.29% increase in coal prices with effect from 30 May 2016. This will be applicable to all subsidiaries of Coal India and NEC for regulated and non-regulated sectors. Due to this revision, Coal India will earn additional revenue of about Rs 3234 crore for the balance period of current financial year i.e. from 30 May 2016 to 31 March 2017. The board has also approved the differential price for non-regulated sector at a reduced rate of 20% over the price of regulated sector for G6 to G17 grades of coal for all subsidiaries of Coal India.
Coal India's consolidated net profit rose 0.22% to Rs 4247.93 crore on 0.72% decline in total income to Rs 22898.79 crore in Q4 March 2016 over Q4 March 2015. The result was announced on Saturday, 28 May 2016.
Tata Motors rose 4.23% at Rs 420.55 ahead of its Q4 March 2016 results today, 30 May 2016.
Maruti Suzuki India (MSIL) edged lower after the company announced temporary suspension of manufacturing of cars from its Manesar and Gurgaon facilities due to fire accident at the Manesar facilities of its supplier Subros. The stock shed 1.65% at Rs 4,073.15. Maruti will temporarily suspend car production at its Manesar and Gurgaon facilities starting second half of 30 May 2016. Subros and MSIL are jointly assessing the extent of damage to essential equipment, MSIL said. MSIL said that it is examining the options available for the procurement of components from other facilities. Production will resume as soon as components become available, MSIL said. The announcement was made during market hours today, 30 May 2016.
Separately, MSIL after market hours on Friday, 27 May 2016, announced that the car maker is all set to start exports of its much awaited light commercial vehicle (LCV) Super Carry to South Africa and Tanzania. The first lot of nearly 100 Super Carry LCVs has been dispatched for shipment, MSIL said. The shipment to South Africa and Tanzania is of the petrol variant of Super Carry, the company said. The petrol variant for export market is powered by G12B engine. Besides African markets, the company also plans to export the Super Carry to South Asian Association for Regional Cooperation (SAARC) nations, it added. Based on the feedback, the company will explore export opportunities for Super Carry in other international markets, MSIL said. The India launch for Super Carry is planned in Q2 September 2016. To begin with, it will be launched in select parts of the country. For the domestic market, Super Carry will be powered by the E08 diesel engine. The company is setting up a separate retail channel in the Indian market exclusively for the Super Carry, MSIL said.
Mahindra & Mahindra (M&M) declined in volatile trade after announcing Q4 March 2016 results. The stock fell 0.57% to Rs 1,327.50. The stock hit a high of Rs 1,351.20 and a low of Rs 1,314.10 in intraday trade. The company's net profit rose 6.02% to Rs 583.73 crore on 14.57% growth in total income to Rs 10912.45 crore in Q4 March 2016 over Q4 March 2015. The result was announced during market hours today, 30 May 2016.
The combined net profit of M&M and Mahindra Vehicle Manufacturers (MVML) before exceptional items rose 20.5% to Rs 662 crore on 16% growth in gross revenue plus other income to Rs 11669 crore in Q4 March 2016 over Q4 March 2015. MVML was set up as a 100% subsidiary of M&M with a view to sourcing contemporary products for expanding the market offerings of the company.
The NTPC stock shrugged off weak financial performance for Q4 March 2016. The stock rose 2.29% at Rs 143.10. The company's net profit fell 7.73% to Rs 2716.41 crore on 6.19% decline in net total income from operations to Rs 18112.62 crore in Q4 March 2016 over Q4 March 2015. The result hit the market at the fag end of the trading session.
NTPC said that the group's installed capacity increased to 46,653 megawatts (MW) as on 31 March 2016 from 44,398 MW as on 31 March 2015. Its consolidated commercial capacity increased to 45,103 MW as on 31 March 2016 from 43,143 MW as on 31 March 2015. The plant load factor (PLF) of coal-based generation units was reported at 81.30% in Q4 March 2016, lower than 82.68% in Q4 March 2015. The PLF of gas based generation units was reported at 17.83% in the quarter ended 31 March 2016, which was lower than 26.68% in the quarter ended 31 March 2015.
The company's plant availability factor (PAF) for coal-based units was reported at 95.24% in the quarter ended 31 March 2016, lower than 97.18% in the quarter ended 31 March 2015. PAF for gas-based units was reported at 98.20% in the quarter ended 31 March 2016, higher than 96.46% in the quarter ended 31 March 2015.
Bharat Heavy Electricals (Bhel) lost 5.81% at Rs 120.75 after net profit fell 59.52% to Rs 359.58 crore on 18.36% decline in total income to Rs 10418.64 crore in Q4 March 2016 over Q4 March 2015. The result was announced after trading hours on Friday, 27 May 2016. Bhel's order backlog stood at about Rs 1.10 lakh crore as on 31 March 2016. The company removed orders amounting Rs 3783 crore from the order book in Q4 March 2016. It removed orders amounting Rs 7429 crore from the order book in the year ended 31 March 2016, which are not likely to commence.
Bhel is set to move out as a constituent of the Sensex with effect from 20 June 2016. Power Grid Corporation of India (PGCIL) will replace Bhel as a constituent of the Sensex from that date.
Realty major DLF fell 2.05% at Rs 126.35 after consolidated net profit declined 22.86% to Rs 132.39 crore on 19.55% rise in net sales to Rs 2335.56 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours on Friday, 27 May 2016. In a post result statement, DLF said that the company believes that the residential real estate sector in India can see a turnaround in the near future. During the last few quarters, DLF has witnessed large number of inquiries signalling early green shoots of recovery for the sector.
With regard to the commercial real estate development business, DLF has started construction of a new office project called Cyber Park at a prime location just opposite Oberoi and Trident Hotels in Gurgaon, with an approximate size of 2.2 msf (including TOD). With regard to the retail mall development business, DLF officially opened its mall Mall of India in Noida with around 90% pre-leasing.
Tech Mahindra rose 1.54% at Rs 543.95 after the company said it has entered into an agreement to acquire UK based Target Group for an enterprise value of GBP 112 million. The transaction is expected to close by 31 October 2016, subject to the receipt of regulatory approvals. Target Group is a financial technology (Fintech) and BPaaS (Business Process as a Service) provider in the banking, asset management, government and insurance sectors. Tech Mahindra said that the acquisition will broaden its service offerings in the banking, financial services and insurance (BFSI) domain and strengthen its presence in Europe. The acquisition will enhance Tech Mahindra's capabilities and allow Tech Mahindra to capture a larger share of the GBP 45-60 billion annual spend by UK BFSI companies on software and services.
Target Group had revenue of GBP 51 million in the year ended 31 December 2015 (FY 2015). After the completion of the acquisition by Tech Mahindra, Target Group will remain a standalone entity retaining its existing brand, which has a strong reputation in the marketplace. The entire management team at Target will stay with the business and continue to have full operational responsibility. Tech Mahindra made the announcement of the acquisition after trading hours on Friday, 27 May 2016.
Index heavyweight and software major Infosys rose 1.37% at Rs 1,263.45. The stock hit a record high of Rs 1,270 in intraday day. The stock hit a low of Rs 1,244.10 in intraday trade.
Sun Pharmaceutical Industries (Sun Pharma) fell 1.57% at Rs 812.50 after the company announced that one of the company's US subsidiaries Sun Pharmaceutical Industries, Inc (SPII) has received a grand jury subpoena from the United States Department of Justice, Antitrust Division seeking documents from SPII and its affiliates relating to corporate and employee records, generic pharmaceutical products and pricing, communications with competitors and others regarding the sale of generic pharmaceutical products, and certain other related matters. SPII is currently responding to the subpoena, Sun Pharma said. Sun Pharma said it is of the opinion that the outcome of the referred enquiry is unlikely to have any material adverse impact on the consolidated operations or consolidated financial results of the company. The announcement was made after market hours on Friday, 27 May 2016.
Sun Pharma is scheduled to announce its Q4 March 2016 results today, 30 May 2016.
Bank stocks witnessed a mixed trend. Among public sector banks, Indian Bank (up 1.79%), Syndicate Bank (up 1.72%), Bank of Maharashtra (up 1.25%), Punjab National Bank (up 0.72%), Union Bank of India (up 0.7%), Andhra Bank (up 0.62%), Central Bank of India (up 0.43%), Punjab and Sind Bank (up 0.25%) and UCO Bank (up 0.14%), edged higher. Canara Bank (down 0.03%), Bank of Baroda (down 0.18%), Allahabad Bank (down 0.19%), Vijaya Bank (down 0.65%), IDBI Bank (down 0.67%), Bank of India (down 0.98%), Dena Bank (down 1.86%) and United Bank of India (down 1.97%), edged lower.
State Bank of India (SBI) extended gains registered during the previous trading session after the bank's Chairman Arundhati Bhattacharya said in a post-result conference call held on Friday, 27 May 2016, that bank proposes to contain fresh slippages ratio within 2.7% of advances in the year ending 31 March 2017 (FY 2017). The stock rose 1.59% at Rs 198.65. The SBI stock surged 6.42% to settle at Rs 195.55 during the previous trading session on Friday, 27 May 2016, shrugging off weak financial performance for Q4 March 2016. SBI has identified about Rs 31000 crore of loans as under special watchlist for FY 2017, which is just 2.1% of overall loan book. Of these watch list accounts, about 70% of loans have more chances of slipping to NPA category. About Rs 11655 crore of watchlist accounts come from restructured advance book, while the sectors contributing to the watch list accounts are power (Rs 4748 crore), iron & steel (Rs 4299 crore), engineering (Rs 3574 crore), oil & gas (Rs 3396 crore), construction (Rs 2608 crore), chemicals (Rs 2326 crore) etc. SBI aims to achieve credit growth of 12-14% in the current financial year, to be driven by retail credit and good quality corporate book.
SBI's net profit fell 66.23% to Rs 1263.81 crore on 10.10% increase in total income to Rs 53526.97 crore in Q4 March 2016 over Q4 March 2015. The result hit the market during trading hours on 27 May 2016.
Among private sector banks, City Union Bank (down 0.47%), Federal Bank (down 0.47%) and IndusInd Bank (down 0.29%), edged lower. Axis Bank (up 0.04%), Kotak Mahindra Bank (up 0.11%) and ICICI Bank (up 0.70%), edged higher.
Index heavyweight HDFC Bank fell 0.61% at Rs 1,180.05. The stock hit a high of Rs 1,194.80 and a low of Rs 1178.05 in intraday trade.
Yes Bank fell 0.12% at Rs 1,025.50. The stock turned ex-dividend today, 30 May 2016, for final dividend of Rs 10 per share for the year ended 31 March 2016.
Index heavyweight and housing finance major HDFC fell 2.16% at Rs 1230.20. The stock hit a high of Rs 1,258.90 and a low of Rs 1,213.30 in intraday trade.
The Sensex and the Nifty edged higher for the fifth day in a row. The Sensex has gained 1,495.24 points or 5.93% in five trading sessions from its close of 25,230.36 on 23 May 2016. The Sensex has gained 1,122.98 points or 4.39% in this month so far (till 30 May 2016). The Sensex has risen 613.06 points or 2.35% in calendar year 2016 so far (till 30 May 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 4,233.99 points or 18.82%. The Sensex is off 1,850.73 points or 6.48% from a 52-week high of 28,578.33 hit on 23 July 2015. The Sensex is off 3,298.14 points or 10.98% from a record high of 30,024.74 hit on 4 March 2015.
In overseas stock markets, European stocks were mixed, with the prospect of a US interest rate hike coming sooner rather than later prompting investors to avoid aggressive bets. In Asia, Japanese stocks edged higher as the yen weakened against the dollar. The Nikkei 225 Average closed 1.39% higher. A weaker local currency benefits exporters, as they can sell their goods at more competitive prices overseas. Japanese Prime Minister Shinzo Abe said he would delay a sales tax hike scheduled for April next year by 2-1/2 years, Masahiko Komura, vice president of the ruling Liberal Democratic Party, told reporters today, 30 May 2016.
Chinese stocks edged higher in volatile trade after the Shanghai and Shenzhen stock exchanges on Friday, 27 May 2016, announced rules on share trading suspensions, removing one potential roadblock to inclusion Chinese A shares or yuan-denominated shares in MSCI Inc.'s global benchmark indexes, a move which could direct large amount of capital into China's stock markets. In mainland China, the Shanghai Composite ended 0.05% higher. In Hong Kong, the Hang Seng index closed 0.26% higher. MSCI said in March a decision to include 5 percent of yuan-denominated shares in its index will depend on regulators implementing changes so that widespread halts can't happen again.
US stocks edged higher during the previous trading session on Friday, 27 May 2016, after the latest data showed that the economy's slowdown in the first quarter wasn't as bad as initially thought. US GDP expanded at a 0.8% seasonally adjusted annual rate in the first three months of 2016, up from an initial estimate for 0.5% growth, the Commerce Department said on Friday, 27 May 2016. The faster-than-expected pace of growth, however, still represents a deterioration from the fourth quarter's 1.4% growth.
Federal Reserve Chairwoman Janet Yellen said in a speech on 27 May 2016 that a rate increase would be appropriate in coming months if the economy continues to strengthen. The Fed has kept the benchmark fed funds rate unchanged after raising it for the first time in nearly a decade in December 2015. The Federal Open Market Committee next undertakes monetary policy review on 14-15 June 2016.
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