Post Session: Quick Review

Indian equity markets drifted below the neutral line in afternoon session but buying emerged at lower levels which pushed the markets higher and ended with modest gain. The corporate results have been fairly decent so far and are one of the key drivers for the market. The equity benchmarks made a positive start in early deals on upbeat earnings from market heavyweight Reliance Industries which reported a consolidated quarterly net profit increase of 28%, helped by higher-than-expected refining and petrochemicals margins and a one-time gain. Net profit rose to Rs 9,079 crore in the quarter ended June from Rs 7,077 crore a year earlier. Revenue rose to Rs 92,661 crore, an increase of 25.5% from Rs 73,829 crore a year ago. Gross refining margin (GRM), or what the company earns from turning every barrel of crude oil into fuel, came in higher than expected at $11.9 per barrel. Wipro’s Q1FY18 IT services revenue, at $1,972 million (up 0.9 percent QoQ), surpassed the estimate, while adjusted EBIT margin at 16% was bang in line. Sentiments also remained optimistic with the private report stating that strong import growth in June points to continued recovery in India’s domestic demand and highlighted that economic expansion will accelerate from the April-June quarter.

The cement counter was buzzing with ICRA’s report which highlighted that India’s cement demand growth is expected to recover to around 5% during FY18, driven by a pick-up in the infrastructure and housing segments. In FY2017, there was a decline of 1.2% in demand. Select stocks from the Fast Moving Consumer Goods (FMCG) sector closed in green after a research survey by private firm highlighted that the industry witnessed a jump of 5.37% in overall sales volume in the first week of July just after the implementation of the Goods & Services Tax (GST), compared to the week before June 15 this year. Select stocks from road and logistics sector were buzzing as the government approved a plan to build 34 mega multi-modal logistics parks at an investment of Rs 2 lakh crore. The projects, for which land is already available with state governments, will be taken up through public-private-partnerships.

On the global front, Asian markets closed mostly in red, with Hong Kong’s Hang Seng Index closing in red, but shares still hovering near highs not seen in two years. South Korean exports jumped 22.4 percent in the first 20 days of July versus the same period a year ago in US dollar terms, while imports rose 13.3 percent. South Korea posted a trade surplus of $4.1 billion for the July 1-20 period. European shares were trading mostly in red as a fresh flow of corporate earnings failed to change the mood of the previous session, dragged down by the European Central Bank’s policy meeting, which pushed the euro close to a two-year high.

Back home, telecom stocks Bharti Airtel, Idea cellular, Reliance Communications, MTNL and Tata Teleservices (Maharashtra) closed in red after Reliance Industries’ Chairman and Managing Director Mukesh Ambani announced the launch of much-awaited 4G feature phone at the company's 40th annual general meeting. DTH & Digital Cable TV Providers such as Dish TV India and Hathway Cable & Datacom too closed in red on Jio’s New TV-Enabled Phone.

The BSE Sensex ended at 32012.62, up by 108.22 points or 0.34% after trading in a range of 31808.93 and 32062.23. There were 13 stocks advancing against 18 stocks declining on the index. (Provisional)

The broader indices ended in red; the BSE Mid cap index was down by 0.01%, while Small cap index was down by 0.08%. (Provisional)

The top gaining sectoral indices on the BSE were Energy up by 2.31%, IT up by 1.66%, Consumer Durables up by 1.30%, TECK up by 1.29% and Oil & Gas up by 1.07%, while Realty down by 1.25%, Telecom down by 0.91%, Healthcare down by 0.67%, Power down by 0.60% and Capital Goods down by 0.49% were the top losing indices on BSE. (Provisional)

The top gainers on the Sensex were Wipro up by 6.32%, Reliance Industries up by 3.69%, Coal India up by 2.76%, TCS up by 2.04% and Kotak Mahindra Bank up by 2.00%.  (Provisional)

On the flip side, Power Grid down by 2.47%, Bharti Airtel down by 2.32%, Lupin down by 2.13%, Hero MotoCorp down by 1.46% and Sun Pharma down by 1.05% were the top losers. (Provisional)

Meanwhile, Power and Coal Minister Piyush Goyal has said the coal cess will contribute to the Goods and Services Tax (GST) compensation fund meant to compensate states for five years for loss of revenue from implementation of GST. 

Goyal also mentioned that along with the coal cess, cess on other products like pan masala, tobacco, aerated water would also be the part of GST Compensation Fund. The Power and Coal Minister further said that after five years, any amount left would be shared on 50 per cent basis between Centre and States.

Under the GST regime, the government has decided to continue the coal cess at Rs 400 per tonne, while aerated drinks purchased from nearby shops will become more expensive, with the GST rate applicable being 28 per cent, along with a 12 per cent additional cess.

The CNX Nifty ended at 9920.95, up by 47.65 points or 0.48% after trading in a range of 9838.00 and 9923.35. There were 28 stocks advancing against 23 stocks declining on the index. (Provisional)

The top gainers on Nifty were Wipro up by 6.30%, Reliance Industries up by 3.60%, Zee Entertainment up by 3.29%, Coal India up by 2.72% and Ambuja Cement up by 2.43%.  (Provisional)

On the flip side, Lupin down by 2.19%, Indiabulls Housing down by 2.16%, Bharti Airtel down by 1.87%, Hero MotoCorp down by 1.39% and Eicher Motors down by 1.31% were the top losers. (Provisional)

The European markets were trading mostly in red; Germany’s DAX decreased 25.27 points or 0.2% to 12,421.98, France’s CAC decreased 18.56 points or 0.36% to 5,180.66, while UK’s FTSE 100 increased 11.76 points or 0.16% to 7,499.63.

Asian equity markets ended mostly in red on Friday after the European Central Bank dropped no hints at tapering in September and media reports suggested that US special counsel Robert Mueller is expanding the Russia probe to include President Donald Trump's business dealings. Japan's Nikkei share average edged down as investors took profits on steelmakers, offsetting gains in Yaskawa Electric and other machinery makers. Meanwhile, China's stocks fell on Friday but ended the week higher, with demand for blue chips gaining momentum amid a slump in small-cap stocks, as investors sought firms with solid growth prospects and lower valuations. Hong Kong stocks snapped a nine-day winning streak as investors took a breather after the benchmark index scaled a fresh two-year peak in the previous session. Though, Seoul stocks ended up at fresh record highs as foreign investors scooped up financial shares on expectations of solid second-quarter earnings results.