Market sees divergent trend
A divergent trend was witnessed among various index constituents in the week ended Friday, 5 August 2016. The barometer index, the S&P BSE Sensex rose 26.49 points or 0.09% to settle at 28,078.35. The gains for the Nifty 50 index were higher than those for the Sensex in percentage terms. The Nifty rose 44.65 points or 0.51% to settle at 8,683.15. The Sensex settled above the psychologically important 28,000 level after falling below that level during the course of trading. The BSE Mid-Cap index was up 0.29%, outperforming the Sensex. The BSE Small-Cap index fell 0.02%, underperforming the Sensex.
Among key developments during the week, the Rajya Sabha on Wednesday, 3 August 2016 passed the much-awaited Goods and Services Tax (GST) constitutional amendment bill which is touted as one of the biggest indirect tax reforms since 1991.
Foreign portfolio investors (FPIs) pumped in Rs 1996.53 crore into the secondary equity markets in three trading sessions from 1 August to 3 August 2016.
Key benchmark indices registered small losses in a volatile trading session on Monday, 1 August 2016 as investors maintained caution ahead of the possible discussion on the Goods and Services Tax (GST) bill in Rajya Sabha this week. The Sensex lost 48.74 points or 0.17% to settle at 28,003.12, its lowest closing level since 26 July 2016.
Key benchmark indices registered small losses in a volatile trading session on Tuesday, 2 August 2016. The Sensex lost 21.41 points or 0.08% to settle at 27,981.71, its lowest closing level since 26 July 2016.
Losses in auto, capital goods, FMCG sector stocks and index heavyweights Reliance Industries, HDFC and ITC led losses for key benchmark indices on Wednesday, 3 August 2016. The Sensex lost 284.20 points or 1.02% to settle at 27,697.51, its lowest closing level since 11 July 2016.
Key benchmark indices eked out minuscule gains in a volatile trading session on Thursday, 4 August 2016. The Sensex rose 16.86 points or 0.06% to settle at 27,714.37, its highest closing level since 2 August 2016.
Trading for the week ended on a buoyant note on Friday, 5 August 2016, as key benchmark indices settled with strong gains as firmness in global stocks boosted sentiment on the domestic bourses. The Sensex rose 363.98 points or 1.31% to settle at 28,078.35.
Among the 30-share Sensex pack, 22 stocks rose and remaining stocks declined in the week ended Friday, 5 August 2016. Adani Ports and Special Economic Zone (up 0.81%), Asian Paints (up 2.53%), Bharti Airtel (up 0.31%), GAIL (India) (up 0.13%), Hindustan Unilever (up 0.24%), NTPC (up 1.79%), ONGC (up 2.65%), Power Grid Corporation of India (up 0.39%) and Tata Steel (up 7.37%) edged higher from the Sensex pack. HDFC (down 2.46%) and ITC (down 0.39%) edged lower from the Sensex pack.
Pharma stocks edged higher with the S&P BSE Healthcare index gaining 0.05%. Cipla (up 0.74%) rose. Lupin (down 3.8%) edged lower.
Sun Pharmaceutical Industries (Sun Pharma) was up 1.51%. The company said that one of its subsidiaries received final approval from USFDA for its abbreviated new drug application for generic version of Glumetza tablets. Sun Pharma said that the drug is likely to be commercially launched in the US over the next few weeks. The announcement was made during market hours on Tuesday, 2 August 2016.
Dr Reddy's Laboratories (DRL) rose 2.2%. The company that it has successfully completed the previously announced acquisition of eight Abbreviated New Drug Applications (ANDAs) in the US from Teva Pharmaceutical Industries (TEVA) and an affiliate of Allergan plc. The announcement was made after market hours on Wednesday, 3 August 2016.
Bank stocks nudged higher. Axis Bank (up 3.55%), HDFC Bank (up 0.19%) and State Bank of India (up 1.63%) rose. The BSE Bankex index fell 0.16%.
ICICI Bank declined 6.37%. The bank's net profit fell 24.99% to Rs 2232.35 crore on 6.06% increase in total income to Rs 16759.51 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Friday, 29 July 2016.
Auto stocks surged with the BSE Auto index advancing 2.73%.
Tata Motors was up 2.65%. The company announced that Tata Motors passenger and commercial vehicle sales (including exports) rose 7% to 43,160 vehicles in July 2016 over July 2015. The announcement was made after market hours on Monday, 1 August 2016.
Tata Motors during market hours on Friday, 5 August 2016 announced that its luxury car making unit, Jaguar Land Rover reported its best ever July retail sales, posting a growth of 34% to 44,486 vehicles in July 2016 over July 2015.
Maruti Suzuki India (MSIL) surged 4.06%. The company reported 12.7% growth in total sales to 1.37 lakh units in July 2016 over July 2015. The announcement was made during market hours on Monday, 1 August 2016.
MSIL after market hours on Monday, 1 August 2016, announced increase in prices of select models ranging from Rs 1,500 to Rs 5,000 ex-showroom Delhi with effect from 1 August 2016. In case of newly launched models like Vitara Brezza and Baleno, the prices are being increased by upto Rs 20,000 and upto Rs 10,000 respectively, MSIL said.
MSIL said during market hours on Wednesday, 3 August 2016 that production rose 2.58% to 1.36 lakh units in July 2016 over July 2015.
Mahindra & Mahindra (M&M) rose 1.03%. The company reported 14% growth each in its total tractor sales and total automobile sales in July 2016 over July 2015. M&M reported 14% increase in its total tractor sales at 17,553 units in July 2016 over July 2015. The company's total auto sales rose 14% to 39,458 units in July 2016 over July 2015. The announcement was made during market hours on Monday, 1 August 2016.
Hero MotoCorp (HMCL) jumped 7.1%. The company announced that its total sales rose 9.13% to 5.32 lakh units in July 2016 over July 2015. The company announced the monthly sales volume data after market hours on Monday, 1 August 2016.
Bajaj Auto surged 5.84%. The company's total sales fell 0.12% to 3.29 lakh units in July 2016 over July 2015. The company announced the monthly sales volume data during trading hours on Tuesday, 2 August 2016.
IT stocks edged lower. Infosys (down 0.6%) and Wipro (down 0.08%) declined. TCS (up 1.15%) rose. The BSE IT index gained 0.93%.
Coal India rose 0.42%. The company and its subsidiaries achieved 91% of targeted coal production at 36.74 million tonnes in July 2016 on provisional basis. With respect to coal offtake, Coal India and its subsidiaries on a provisional basis achieved 89% of target in July 2016. The total offtake stood at 41.47 million tonnes in July 2016. The company announced the monthly coal production and offtake performance after market hours on Monday, 1 August 2016.
L&T fell 2.91%. The company's consolidated net profit rose 46% to Rs 610 crore on 9.1% growth in gross revenue to Rs 21874 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Friday, 29 July 2016.
Reliance Industries (RIL) declined 0.09%. The company in its annual report for the year ended 31 March 2016 (FY 2016) issued on Thursday, 4 August 2016 said that projects worth over $35 billion will be coming to fruition in the current financial year (FY 2017). The company said that its telecom arm Reliance Jio Infocomm (RJIL) will launch its 4G LTE services at substantially lower rates than its rivals. RJIL has developed its network at an extremely efficient cost base coupled with significant operating efficiencies. These efficiencies will enable it to offer services at a substantially lower cost than others, RIL said.
The Rajya Sabha on Wednesday, 3 August 2016 passed the Goods and Services Tax (GST) constitutional amendment bill. The amended GST bill once again will have to be ratified by the Lok Sabha. Once amendments to the bill are passed in the Lok Sabha it will later go to the state assemblies for clearance. Atleast 50% of the states must approve the legislation. A key task for the proposed GST Council now will be determining the rate of taxation. A decision on the tax rate will have to be ratified by a three-fourth majority of the centre and the states. As per the proposed legislation, the centre will have one-third weightage on its vote and states will have two-third weightage.
Global credit rating agency, Moody's Investors Service said on Friday, 5 August 2016 that the Rajya Sabha's approval for the GST bill paves the way for its implementation, a credit positive for the country's sovereign and non-financial corporates. The GST will have a positive impact on growth and tax revenues over the medium term, supporting the sovereign's credit profile, Moody's said.
The India Meteorological Department (IMD) in its update issued on rainfall on Thursday, 4 August 2016 said that for the country as a whole, cumulative rainfall during this year's monsoon was 1% above the long period average (LPA) as on 3 August 2016.
On the macro front, data released by the government after market hours on Monday, 1 August 2016 showed that eight core industries comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) increased 5.2% in June 2016 over June 2015, compared to 2.8% growth in May 2016 and 3.1% growth in June 2015.
The outcome of a monthly survey released on Monday, 1 August 2016 showed that the performance of India's manufacturing economy continued to improve in July, with a stronger expansion in new business contributing to faster increases in output and buying levels. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose to a four-month high of 51.8 in July from a reading of 51.7 in June–indicating a further improvement in overall business conditions across the sector.
The outcome of a monthly survey released on Wednesday, 3 August 2016 showed that Indian service providers enjoyed a welcome upturn in demand during July, with a faster increase in new business underpinning stronger growth of output and boosting confidence. The seasonally adjusted Nikkei India Services Business Activity Index rose to 51.9 in July, from 50.3 in June.
On the global front, US private employers added a better-than-expected 179,000 jobs last month, a report by a payrolls processor showed on Wednesday, 3 August 2016. The private employment figures come ahead of the US Labor Department's more comprehensive monthly non-farm payrolls report later in the global day on Friday, 5 August 2016, which includes both public and private-sector employment.
The Bank of England on Thursday, 4 August 2016 cut its benchmark interest rate by 25 basis points to 0.25% from 0.5%. It expects to cut the rate further in the months ahead. The central bank also revived a UK government bond-buying program, also known as quantitative easing, that has been on pause since 2012, and said it would begin buying corporate bonds.
Growth in China's services sector cooled in July, a private survey showed on Wednesday, 3 August 2016. The Caixin/Markit services purchasing managers' index (PMI) fell to 51.7 in July on a seasonally adjusted basis, from an 11-month peak of 52.7 in June.
Among key developments during the week, the Rajya Sabha on Wednesday, 3 August 2016 passed the much-awaited Goods and Services Tax (GST) constitutional amendment bill which is touted as one of the biggest indirect tax reforms since 1991.
Foreign portfolio investors (FPIs) pumped in Rs 1996.53 crore into the secondary equity markets in three trading sessions from 1 August to 3 August 2016.
Key benchmark indices registered small losses in a volatile trading session on Monday, 1 August 2016 as investors maintained caution ahead of the possible discussion on the Goods and Services Tax (GST) bill in Rajya Sabha this week. The Sensex lost 48.74 points or 0.17% to settle at 28,003.12, its lowest closing level since 26 July 2016.
Key benchmark indices registered small losses in a volatile trading session on Tuesday, 2 August 2016. The Sensex lost 21.41 points or 0.08% to settle at 27,981.71, its lowest closing level since 26 July 2016.
Losses in auto, capital goods, FMCG sector stocks and index heavyweights Reliance Industries, HDFC and ITC led losses for key benchmark indices on Wednesday, 3 August 2016. The Sensex lost 284.20 points or 1.02% to settle at 27,697.51, its lowest closing level since 11 July 2016.
Key benchmark indices eked out minuscule gains in a volatile trading session on Thursday, 4 August 2016. The Sensex rose 16.86 points or 0.06% to settle at 27,714.37, its highest closing level since 2 August 2016.
Trading for the week ended on a buoyant note on Friday, 5 August 2016, as key benchmark indices settled with strong gains as firmness in global stocks boosted sentiment on the domestic bourses. The Sensex rose 363.98 points or 1.31% to settle at 28,078.35.
Among the 30-share Sensex pack, 22 stocks rose and remaining stocks declined in the week ended Friday, 5 August 2016. Adani Ports and Special Economic Zone (up 0.81%), Asian Paints (up 2.53%), Bharti Airtel (up 0.31%), GAIL (India) (up 0.13%), Hindustan Unilever (up 0.24%), NTPC (up 1.79%), ONGC (up 2.65%), Power Grid Corporation of India (up 0.39%) and Tata Steel (up 7.37%) edged higher from the Sensex pack. HDFC (down 2.46%) and ITC (down 0.39%) edged lower from the Sensex pack.
Pharma stocks edged higher with the S&P BSE Healthcare index gaining 0.05%. Cipla (up 0.74%) rose. Lupin (down 3.8%) edged lower.
Sun Pharmaceutical Industries (Sun Pharma) was up 1.51%. The company said that one of its subsidiaries received final approval from USFDA for its abbreviated new drug application for generic version of Glumetza tablets. Sun Pharma said that the drug is likely to be commercially launched in the US over the next few weeks. The announcement was made during market hours on Tuesday, 2 August 2016.
Dr Reddy's Laboratories (DRL) rose 2.2%. The company that it has successfully completed the previously announced acquisition of eight Abbreviated New Drug Applications (ANDAs) in the US from Teva Pharmaceutical Industries (TEVA) and an affiliate of Allergan plc. The announcement was made after market hours on Wednesday, 3 August 2016.
Bank stocks nudged higher. Axis Bank (up 3.55%), HDFC Bank (up 0.19%) and State Bank of India (up 1.63%) rose. The BSE Bankex index fell 0.16%.
ICICI Bank declined 6.37%. The bank's net profit fell 24.99% to Rs 2232.35 crore on 6.06% increase in total income to Rs 16759.51 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Friday, 29 July 2016.
Auto stocks surged with the BSE Auto index advancing 2.73%.
Tata Motors was up 2.65%. The company announced that Tata Motors passenger and commercial vehicle sales (including exports) rose 7% to 43,160 vehicles in July 2016 over July 2015. The announcement was made after market hours on Monday, 1 August 2016.
Tata Motors during market hours on Friday, 5 August 2016 announced that its luxury car making unit, Jaguar Land Rover reported its best ever July retail sales, posting a growth of 34% to 44,486 vehicles in July 2016 over July 2015.
Maruti Suzuki India (MSIL) surged 4.06%. The company reported 12.7% growth in total sales to 1.37 lakh units in July 2016 over July 2015. The announcement was made during market hours on Monday, 1 August 2016.
MSIL after market hours on Monday, 1 August 2016, announced increase in prices of select models ranging from Rs 1,500 to Rs 5,000 ex-showroom Delhi with effect from 1 August 2016. In case of newly launched models like Vitara Brezza and Baleno, the prices are being increased by upto Rs 20,000 and upto Rs 10,000 respectively, MSIL said.
MSIL said during market hours on Wednesday, 3 August 2016 that production rose 2.58% to 1.36 lakh units in July 2016 over July 2015.
Mahindra & Mahindra (M&M) rose 1.03%. The company reported 14% growth each in its total tractor sales and total automobile sales in July 2016 over July 2015. M&M reported 14% increase in its total tractor sales at 17,553 units in July 2016 over July 2015. The company's total auto sales rose 14% to 39,458 units in July 2016 over July 2015. The announcement was made during market hours on Monday, 1 August 2016.
Hero MotoCorp (HMCL) jumped 7.1%. The company announced that its total sales rose 9.13% to 5.32 lakh units in July 2016 over July 2015. The company announced the monthly sales volume data after market hours on Monday, 1 August 2016.
Bajaj Auto surged 5.84%. The company's total sales fell 0.12% to 3.29 lakh units in July 2016 over July 2015. The company announced the monthly sales volume data during trading hours on Tuesday, 2 August 2016.
IT stocks edged lower. Infosys (down 0.6%) and Wipro (down 0.08%) declined. TCS (up 1.15%) rose. The BSE IT index gained 0.93%.
Coal India rose 0.42%. The company and its subsidiaries achieved 91% of targeted coal production at 36.74 million tonnes in July 2016 on provisional basis. With respect to coal offtake, Coal India and its subsidiaries on a provisional basis achieved 89% of target in July 2016. The total offtake stood at 41.47 million tonnes in July 2016. The company announced the monthly coal production and offtake performance after market hours on Monday, 1 August 2016.
L&T fell 2.91%. The company's consolidated net profit rose 46% to Rs 610 crore on 9.1% growth in gross revenue to Rs 21874 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours on Friday, 29 July 2016.
Reliance Industries (RIL) declined 0.09%. The company in its annual report for the year ended 31 March 2016 (FY 2016) issued on Thursday, 4 August 2016 said that projects worth over $35 billion will be coming to fruition in the current financial year (FY 2017). The company said that its telecom arm Reliance Jio Infocomm (RJIL) will launch its 4G LTE services at substantially lower rates than its rivals. RJIL has developed its network at an extremely efficient cost base coupled with significant operating efficiencies. These efficiencies will enable it to offer services at a substantially lower cost than others, RIL said.
The Rajya Sabha on Wednesday, 3 August 2016 passed the Goods and Services Tax (GST) constitutional amendment bill. The amended GST bill once again will have to be ratified by the Lok Sabha. Once amendments to the bill are passed in the Lok Sabha it will later go to the state assemblies for clearance. Atleast 50% of the states must approve the legislation. A key task for the proposed GST Council now will be determining the rate of taxation. A decision on the tax rate will have to be ratified by a three-fourth majority of the centre and the states. As per the proposed legislation, the centre will have one-third weightage on its vote and states will have two-third weightage.
Global credit rating agency, Moody's Investors Service said on Friday, 5 August 2016 that the Rajya Sabha's approval for the GST bill paves the way for its implementation, a credit positive for the country's sovereign and non-financial corporates. The GST will have a positive impact on growth and tax revenues over the medium term, supporting the sovereign's credit profile, Moody's said.
The India Meteorological Department (IMD) in its update issued on rainfall on Thursday, 4 August 2016 said that for the country as a whole, cumulative rainfall during this year's monsoon was 1% above the long period average (LPA) as on 3 August 2016.
On the macro front, data released by the government after market hours on Monday, 1 August 2016 showed that eight core industries comprising nearly 38% of the weight of items included in the Index of Industrial Production (IIP) increased 5.2% in June 2016 over June 2015, compared to 2.8% growth in May 2016 and 3.1% growth in June 2015.
The outcome of a monthly survey released on Monday, 1 August 2016 showed that the performance of India's manufacturing economy continued to improve in July, with a stronger expansion in new business contributing to faster increases in output and buying levels. The seasonally adjusted Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose to a four-month high of 51.8 in July from a reading of 51.7 in June–indicating a further improvement in overall business conditions across the sector.
The outcome of a monthly survey released on Wednesday, 3 August 2016 showed that Indian service providers enjoyed a welcome upturn in demand during July, with a faster increase in new business underpinning stronger growth of output and boosting confidence. The seasonally adjusted Nikkei India Services Business Activity Index rose to 51.9 in July, from 50.3 in June.
On the global front, US private employers added a better-than-expected 179,000 jobs last month, a report by a payrolls processor showed on Wednesday, 3 August 2016. The private employment figures come ahead of the US Labor Department's more comprehensive monthly non-farm payrolls report later in the global day on Friday, 5 August 2016, which includes both public and private-sector employment.
The Bank of England on Thursday, 4 August 2016 cut its benchmark interest rate by 25 basis points to 0.25% from 0.5%. It expects to cut the rate further in the months ahead. The central bank also revived a UK government bond-buying program, also known as quantitative easing, that has been on pause since 2012, and said it would begin buying corporate bonds.
Growth in China's services sector cooled in July, a private survey showed on Wednesday, 3 August 2016. The Caixin/Markit services purchasing managers' index (PMI) fell to 51.7 in July on a seasonally adjusted basis, from an 11-month peak of 52.7 in June.
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