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12
May 2017
I had
mentioned in last week’s closing report that Nifty, Sensex might give up some
gains. The major indices of the Indian stock markets continued to rally during
the week to close with gains of 1.10%-1.24% over last Friday’s close. The
trends of the major indices in the course of the week’s trading are given in
the table below:
Weekly Indices (The Total
Investment & Insurance Solutions)
Positive
global cues, a strong rupee and healthy buying in banking, automobile and
consumer durables stocks lifted the Indian equity markets during the
mid-afternoon trade session on Monday. The BSE market breadth was bullish --
with 1,577 advances and 988 declines. The equity benchmark indices started off
the first day of the week on a firm note tracking positive global cues.
Appreciation of the Indian rupee against the US dollar also supported the
firmness. Banking stocks resumed the firmness on strong buying support, pointed
out market analysts. Most IT (information technology) sector stocks traded with
firm sentiments, while aviation sector stocks extended previous session's gain
on strong buying support. On the NSE, there were 913 advances, 569 declines and
82 unchanged.
Tata
Global Beverages on Monday said it proposes to launch a ready-to-drink
tea-based beverage, Tata Tea Fruski on May 10. It added that the product will
cater to the domestic market only. The company’s shares closed at Rs152.75, up
0.46% on the BSE.
German
auto component major Bosch Ltd on Monday resumed operations at its two
manufacturing plants near a polluted lake in Bengaluru after a two-day shut
down on the directive of the state pollution control watchdog. The company on
Saturday temporarily closed its twin plants located in the vicinity of the 910-acre
polluted Bellandur lake in the city's south-east suburbs on the Board's notice
against it and other firms in its catchment areas. Asserting that it had the
highest standards to protect the environment, Bosch said it was confident of
operating the plants within the prescribed norms. Bosch’s shares closed at
23,300, up 0.15% on the BSE.
The
major indices of the Indian stock markets were narrowly range-bound on Tuesday
and ended flat. On the NSE, there were 826 advances, 659 declines and 86
unchanged. The BSE market breadth was bullish, with 1,477 advances and 1,355
declines.
State-run
Vijaya Bank on Tuesday reported a net profit of Rs204 crore for the fourth
quarter of the financial year 2016-17, registering a whopping 187% year-on-year
(YoY) jump from R 71 crore in the like period a year ago. In a regulatory
filing in the BSE, the city-based bank said net profit for the fiscal 2016-17
shot up 97% YoY to Rs751 crore from Rs382 crore in the previous fiscal year
2015-16. Operating profit for the quarter under review (Q4) also zoomed 129%
YoY to Rs703 crore from Rs314 crore in the same period a year ago and 56% YoY
for the fiscal 2017 to Rs2,421 crore from Rs1,549 crore, said the filing. Total
income for Q4, however, increased 8.6% YoY to Rs3,505 crore from Rs3,229 crore
in the corresponding period a year ago and 8.3% YoY for the fiscal 2017 to
Rs14,031 crore from Rs12,957 crore in FY 2016. "Interest earned for Q4
grew 3.4% YoY to Rs3,055 crore from Rs2,956 crore in the same period a year ago
and 2.4% YoY for the fiscal 2017 to Rs12,380 crore from Rs12,084 crore in FY
2016," it said. Vijaya Bank shares closed at Rs92.25, up 4.36% on the BSE.
Industrial
technology major ABB India reported an increase of 3.18% in its net profit for
the first quarter (Q1) of 2017 from Rs85.45 crore to Rs88.17 crore. Besides,
the firm's total income edged-up by 9.29% during the quarter under review to
Rs2,337.36 crore from Rs2,138.53 crore earned during Q1 of last year. ABB India
disclosed a significant y-o-y (Year-on-Year) increase in its orders book during
the period under review, driven by government initiatives and investments. The
company revealed that it has received orders worth Rs2,342 crore during the
first quarter and had an order backlog of Rs12,023 crore, as on March 31, 2017.
"We have continued to grow in a market of select sectoral growth with a
keen focus on cash and cost with a view to deliver value-additions to our
customers," said Sanjeev Sharma, CEO and Managing Director, ABB India.
"The traction in transportation and infrastructure has led to us to
deliver multiple projects of national importance." On Tuesday, ABB India
shares closed at Rs1,537.80, up 9.71% on the BSE.
With
the IMD's (Indian Meteorological Department) prediction of 100% rainfall giving
a boost to investors' sentiments, the Indian equity markets zoomed higher
during the mid-afternoon trade session on Wednesday. The benchmark indices
touched record intra-day high levels, as positive global cues and buying in
automobile, capital goods and FMCG (fast moving consumer goods) stocks, too,
supported the upward trajectory. On the NSE, there were 917 advances, 569
declines and 97 unchanged. The BSE market breadth was bullish, with 1,560
advances and 1,054 declines. The equity benchmark indices started off the
day on a firm note tracking positive Asian cues, with the CNX Nifty hitting
fresh all time high levels during the morning session. IT (information
technology) and banking sector stocks currently traded with mixed sentiments
due to profit booking at higher levels, while media-entertainment and power
sector stocks complimented the firmness of the markets, pointed out market
analysts.
Bharti
Airtel's net profit dropped by 71.7% to Rs373 crore in the fourth quarter of
2016-17 as compared to Rs1,319 crore in the corresponding period in previous
fiscal with the mounting competition from Reliance Jio, a company statement
said on Tuesday. "The sustained predatory pricing by the new operator has
led to a decline in revenue growth for the second quarter in a row. The telecom
industry as a whole also witnessed a revenue decline for the first time ever on
a full year basis. The deteriorating health of the industry was
compounded by the tsunami of incoming voice traffic from the new operator as a
result of which significant investments had to be made just to carry the
incoming traffic on our network," Gopal Vittal, MD and CEO, India and
South Asia, said in a statement. The company's overall customer base in the
fourth quarter stood at 372.4 million across 17 countries, up 8.5% as compared
to the corresponding period in 2015-16. However, on Wednesday, the company’s
shares closed at Rs372.70, up 7.87% on the BSE.
The
major indices of the Indian stock markets were range-bound on Thursday and
ended flat, compared to Wednesday’s close. On the NSE, there were 572 advances,
910 declines and 55 unchanged. On the BSE, there were 1,247 advances, 1,583
declines and 162 unchanged. Market observers pointed out that the upward
trajectory of the key indices was backed by healthy monsoon forecast and buying
in automobile, banking and metal stocks. The equity benchmark indices started
on a firm note and continued their run tracking positive Asian cues and
appreciation of the rupee against the US dollar. Both the indices hit fresh
all-time highs in the morning session. Good corporate earnings, sustained fund
inflows and normal monsoon forecast supported the firm sentiments, pointed our
market analysts. Most banking stocks traded with firm sentiments lead by Canara
Bank, Bank of India and Bank of Baroda. Realty, media-entertainment and cement
sector stocks complemented the firmness of the equity markets, observed market
analysts.
On
Thursday, bucking the trend, global software major Tata Consultancy Services
(TCS) has ruled out laying-off employees in the near future and instead plans
to create more jobs. "No, certainly no," Rajesh Gopinathan, CEO and
MD of TCS, told IANS here on Thursday when asked if there were any plans of
laying-off employees or downsize as some other big players in India's IT sector
have said they would do. "We are here to create jobs, not to
downsize," he asserted after TCS launched a BPO centre here to create new
opportunities as part of the government's Digital India push. TCS’ shares
closed at Rs2,351.25, up 0.80% on the BSE.
Indian
equity markets on Friday slipped as investors were cautious ahead of the
release of major domestic macro-economic data. Sentiments were hampered by
negative global cues and selling pressure in banking, consumer durables and healthcare
stocks. Overall, the major indices of the Indian stock markets were range-bound
on Friday and closed with small losses over Thursday’s close. On the NSE, there
were 437 advances, 1,053 declines and 57 unchanged.The Total Investment & Insurance Solutions
