We had mentioned in the last week’s closing report that Nifty, Sensex may give up some gains. The equity markets indices crossed the psychological mark of 30,000 and 9,300 this week, however on Friday Sensex closed below the 30,000 mark. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
Trading for the week began on a strong note as domestic stocks rallied in tandem with global markets; S&P BSE Sensex jumped 290.54 points or 0.99% to settle at 29,655.84. The Nifty 50 index rose 96.55 points or 1.06% to settle at 9,215.95. Both the Sensex and the Nifty settled at almost two-week high.
UltraTech Cement rose 4.42%. The company's consolidated net profit declined 11.24% to Rs 726 crore on 2.59% growth in net sales to Rs 6922 crore in Q4 March 2017 over Q4 March 2016. UltraTech said that work on setting up the 3.5 million tonnes per annum (MTPA) integrated cement plant at Dhar, Madhya Pradesh is on track. Commercial production is expected to commence from Q4 of FY 2019. With this expansion and the acquisition of the cement plants of Jaiprakash Associates, the company's cement capacity will stand augmented to 95.4 MTPA, including its overseas operations.
Key benchmark indices on Tuesday logged strong gains, S&P BSE Sensex, jumped 287.40 points or 0.97% to settle at 29,943.24. The Nifty 50 index surged 88.65 points or 0.96% to settle at 9,306.60. The Sensex hit its highest closing level in almost three weeks. The Nifty hit a record high on intraday as well as closing basis. Today's gains were led by index heavyweights ITC, HDFC and Reliance Industries (RIL). The BSE market breadth was bullish – with 1467 advances, 1444 declines and 169 unchanged. Similarly, on NSE, there were 803 advances, 707 declines and 64 unchanged.
RIL gained 1.14% to Rs1,432.50 after consolidated net profit excluding exceptional items rose 16.6% to Rs8046 crore on 45.2% growth in turnover to Rs92,889 crore in Q4 March 2017 over Q4 March 2016. The result was announced after market hours yesterday, 24 April 2017. RIL increase in revenue in Q4 was primarily on account of increase in prices of refining and petrochemical products on the back of higher oil prices. Turnover was also boosted by robust growth in retail business.
RIL said, Reliance Jio Infocomm, a subsidiary of RIL crossed 50 million subscribers in just 83 days, and 100 million in 170 days, adding at an average rate of 6 lakh subscribers per day. Jio continues its rapid ramp-up of subscriber base and as of 31 March 2017, there were 10.89 crore subscribers on the network.
On Wednesday, positive Asian stocks pushed the key benchmark indices higher for third day in a row. The barometer index, the S&P BSE Sensex, rose 190.11 points or 0.63% to settle at 30,133.35. The Nifty 50 index rose 45.25 points or 0.49% to settle at 9,351.85. The Sensex and the Nifty, both, hit record high in intraday day as well as closing basis. Sentiment was also boosted after the ruling party at the Centre, BJP's massive win in the Delhi civic elections.
IT major Wipro shed 0.8% to Rs 490.60 in volatile trade after hitting an intraday high of Rs 513 and intraday low of Rs 489. The company's consolidated net profit rose 7.2% to Rs 2267 crore on 4.86% rise in total income to Rs 15033.80 crore in Q4 March 2017 over Q3 December 2016. The result was announced after market hours yesterday, 25 April 2017. In its outlook, Wipro expects revenues from its IT services business to be in the range of $1915 million to $1955 million for the Q1 June 2017. Wipro's board recommended 1:1 bonus issue of shares.
On Thursday, profit booking after three-day gains pushed the key benchmark indices modestly lower after scaling record highs in intraday trade. The S&P BSE Sensex fell 103.61 points or 0.34% to settle at 30,029.74. The Nifty 50 index fell 9.70 points or 0.10% to settle at 9,342.15. The Sensex ended a tad above the psychologically important 30,000 mark after briefly sliding below that level in late trade. Selling in index pivotals, ITC and HDFC weighed on indices as domestic bourses remained in negative zone for most part of the day.
Maruti Suzuki India fell 0.56% to Rs6,371.15. The company's net profit rose 15.8% to Rs1709 crore and net sales grew by 20.3% to Rs18005.20 crore in Q4 March 2017 over Q4 March 2016. Growth in volumes, increase in share of the company's higher segment models, benefits due to full capacity utilization and cost reduction efforts contributed to increase in profits. This was partially offset by increase in commodity prices and adverse forex movement.
IT major Infosys was up 1.08% at Rs923.95 after the company announced that it has launched Infosys Nia-the next generation integrated artificial intelligence platform. The announcement was made after market hours yesterday, 26 April 2017. The product was launched building on the success of the company's first-generation AI platform, Infosys Mana, and its Robotic Process Automation (RPA) solution, AssistEdge. Together, both these products have amassed 50 plus clients and 150 plus engagements across all industry sectors, within a year of operations.
On Friday, key benchmark indices declined for second consecutive session as investors booked profits after recent gains. The barometer index, the S&P BSE Sensex, fell 111.34 points or 0.37% to settle at 29,918.40. The Nifty 50 index fell 38.10 points or 0.41% to settle at 9,304.05. The Sensex ended below the psychologically important 30,000 mark. It had closed above that level during the previous trading session. The Nifty ended above the 9,300 mark after flirting with that level in the intraday.
Selling in index pivotals ITC and HDFC Bank weighed on indices as domestic bourses remained in negative zone throughout the session. Metal shares were in demand. Public sector banks rose across the board.
Federal Bank surged 13.58% to Rs 107.45 after net profit spurted to Rs 256.59 crore on 14.8% rise in total income to Rs 2598.06 crore in Q4 March 2017 over Q4 March 2016. Kotak Mahindra Bank fell 1.42% to Rs 901.60. The bank announced that it has entered into an agreement to purchase the entire 26% equity stake held by Old Mutual plc, UK (OM) in Kotak Mutual Life Insurance for a consideration of Rs 1292.70 crore. The announcement was made before market hours today, 28 April 2017. After the completion of the transaction, Kotak Mahindra Group will hold 100% stake in Kotak Life. Kotak Life is currently a joint venture between Kotak Group and OM.
Union Bank of India jumped 6.91% to Rs 170.90 after the bank said that the board of directors approved capital raising for FY 2018 in a meeting held today, 28 April 2017. Union Bank of India's board of directors approved capital plan for the year ending 31 March 2018 (FY 2018). The board approved to raise total capital funds up to Rs 6350 crore during FY 2018 in the form of core equity capital and/or additional tier 1 (AT1) bonds and/or tier 2 bonds, subject to maximum issue of Rs 4800 crore, within overall limit of Rs 6350 crore, of additional tier 1 (AT1) bonds and/or tier 2 bonds. The board approved to raise equity capital not exceeding Rs 4950 crore, within overall limit of Rs 6350 crore, during FY 2018 through public issue (i.e. follow-on-public issue) and/or rights issue and/or private placement, including qualified institutional placements and/or preferential allotment to the Government of India or other institutions and/or any other mode(s) subject to necessary approvals.
Indiabulls Real Estate dropped 4.31% to Rs 149.75 after consolidated net profit fell 3.73% to Rs 60.18 crore on 25.84% fall in total income to Rs 545.15 crore in Q4 March 2017 over Q4 March 2016. Earnings before interest, taxes, depreciation and amortization (EBITDA) margin excluding non operating income rose to 32.55% in Q4 March 2017 from 28.18% in Q4 March 2016. The result was announced after market hours yesterday, 27 April 2017.
Overseas, most European shares were trading higher as euro-zone inflation rose a bit more than expected. Consumer price inflation (CPI) in the euro zone increased more than expected in April. In a report, Eurostat said consumer price inflation rose by a seasonally adjusted 1.9% in April, following a final reading of a 2.0% advance in the prior month.
UK's FTSE 100 was down 0.30%. The UK economy slowed sharply in the first quarter as consumers pared back spending, a warning sign on growth ahead of a national election in June and the start of Britain's exit talks with the European Union. The British economy expanded at a quarterly rate of 0.3% in the first quarter of 2017, the U.K.'s Office for National Statistics said Friday, less than half the speed of the 0.7% expansion recorded in the final three months of last year. It was the weakest quarterly expansion since the first quarter of 2016.