Markets Today
- The benchmark indices began the August F&O series in a spectacular manner on hopes of a rate cut by the RBI at its policy meet on August 4. The roadmap unveiled by the government for recapitalisation of PSU banks, encouraging Q1 results from heavyweights such as ICICI Bank, the cabinet nod for an amended GST bill and favourable cues from the Asian front further bolstered the positive sentiment on Dalal Street.
The benchmark BSE Sensex reclaimed the 28,000 mark, spurting by 409 points or 1.4% at 28,114 and Nifty settled above the 8,500 mark at 8,532, gains of 111 points.
- Select realty stocks closed 1.02% to 6.39% up on BSE on rate cut hopes, with Godrej Properties (up 2.54%), Phoenix Mills (up 1.02%) and Sobha Limited (up 6.39%), gained.
- Among the 12 BSE sectoral indices, 10 indices closed in positive while 2 indices closed in negative. Top Gainers: BSE Realty by 2.89% and BSE Healthcare by 1.99%. Top Losers: BSE Power down by 0.60% and BSE Oil & Gas by 0.27%.
Market breadth was positive at ~1.37 as investors bought large cap stocks. On provisional basis, FII's sold Rs 2.77bn worth of Indian equities while DII's bought Rs 10.21bn worth of Indian equities.
Economic and Corporate Developments
- Finance Minister Arun Jaitley sought Parliament's approval on Friday to increase the spending budget for this fiscal year by $4 billion, with almost half to be used to inject extra capital into state banks struggling with bad loans. High levels of non-perfoming assets in the state-run banks have made it hard for the government of Prime Minister Narendra Modi to revive investment or accelerate growth in Asia's third largest economy.
State lenders account for more than 70% of all outstanding bank loans, and they are in need of support to meet Basel III regulatory requirements. Having allocated $1.24 billion for the state banks in February budget, the finance ministry aims to inject an extra $1.9 billion, if parliament approves.
- The government is looking at the option of auctioning operations and maintenance of National Highways to domestic and international players. "In order to increase the private participation in highway sector, auctioning operation and maintenance of National Highways to domestic and international players is one of the options," said Minister of State for Road Transport and Highways Pon Radhakrishnan. He informed the Lok Sabha that the "option is at conceptual stage."
- NITI Aayog plans to hire a Chief Economist to conduct research on India's economic policy issues as well as to build contacts with outside institutions. The post may also be filled for a short-term contract period. The Chief Economist will be entrusted with the tasks of conducting research on contemporary and futuristic economic policy issues on India and its states; conducting workshops and help built research culture within NITI Aayog and promote contact with outside scholars and institutions of distinctions.
Buzzing Stocks
- GlaxoSmithKline Pharmaceuticals closed 0.48% down at Rs 3,507.75 on BSE after net profit dropped 5.09% to Rs 93.28 crore on 4.8% drop in total income to Rs 668.19 crore in Q1 June 2015 over Q1 June 2014.
- Titan Company closed 4.65% down at Rs 323.85 on BSE after net profit dropped 14.78% to Rs 151.06 crore on 6.6% drop in total income to Rs 2724.13 crore in Q1 June 2015 over Q1 June 2014.
- Dr Reddy's Laboratories closed 4.05% up at Rs 4,065.70 on BSE with the stock extending prior sessions' 5.23% gains triggered by company announcing good Q1 results.
- Adani Transmission was locked at 5% upper circuit at Rs 27.60 on NSE on its debut on the bourses today, 31 July 2015.
- ICICI Bank closed 3.97% up at Rs 302.50 on BSE after net profit rose 12.08% to Rs 2976.16 crore on 8.11% rise in total income to Rs 15802.45 crore in Q1 June 2015 over Q1 June 2014.
- Nucleus Software Exports closed 16.24% down at Rs 283.70 on BSE after consolidated net profit dropped 67.09% to Rs 6.79 crore on 15.93% drop in net total income from operations to Rs 84.82 crore in Q1 June 2015 over Q4 March 2015.
- Exide Industries closed 1.07% up at Rs 146.15 on BSE on bargain hunting after hitting a 52 week low of Rs 136.35 after net profit fell 16.24% to Rs 155.20 crore on 6.01% decline in total income to Rs 1802.63 crore in Q1 June 2015 over Q1 June 2014.
- Gati closed 8.59% down at Rs 180.90 on BSE after consolidated net profit fell 31.91% to Rs 7.83 crore on 5.22% growth in total income to Rs 420.36 crore in Q1 June 2015 over Q1 June 2014.
- Glenmark Pharmaceuticals closed 5.59% up at Rs 1,009.80 on BSE after consolidated net profit rose 3.31% to Rs 190.93 crore on 13.6% growth in revenue excluding out-licensing income to Rs 1655.24 crore in Q1 June 2015 over Q1 June 2014.
- Kotak Mahindra Bank closed 2.86% down at Rs 695.70 on BSE after net profit fell 55.84% to Rs 189.78 crore on 70.65% growth in total income to Rs 4583.86 crore in Q1 June 2015 over Q1 June 2014.
Contributed by Keynote Capitals
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