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11
January 2019
I had
mentioned in last week’s closing report that Nifty, Sensex might rally if
global markets remained steady. The major indices of the Indian stock markets
were range-bound during the week and closed on Friday with small weekly gains
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:
The
major indices of the Indian stock markets were range-bound on Monday and closed
with gains over Friday’s close. On the NSE, there were 876 advances, 862
declines and 347 unchanged.
The
Sensex advanced on Monday following Asian markets on signs of an easing trade
tensions. Talks between US and China are scheduled to be held on Monday and
Tuesday. Barring the healthcare sector, all the other sectorial stocks traded
comfortably in the green on both the NSE and the BSE.
The
Indian currency, however, was trading flat at Rs69.73 per US dollar from its
previous close of 69.72.
Cash-strapped
state-run Hindustan Aeronautics Ltd (HAL) on Sunday said it had taken an
overdraft of Rs962 crore. "With anticipated collection up to March, the
cash position is expected to improve. Orders for LCA (Light Combat Aircraft)
Mark 1A 83 and LCH (Light Combat Helicopter) 15 are in advanced stages,"
said HAL in a tweet from its official Twitter account. The defence aerospace
major, however, did not mention from whom or which bank the overdraft was taken
and for what purpose. The company's clarification on its cash crunch is the
wake of a media report in a national newspaper on Friday that it had borrowed
nearly Rs1,000 crore "to pay salaries to its 29,000 employees".
The
major indices of the Indian stock markets were range-bound on Tuesday and
closed with small gains over Monday’s close. On the NSE, there were 829
advances, 896 declines and 341 unchanged.
Caution
ahead of the outcome of ongoing US-China trade talks and Q3 corporate earning
session kept the major indices in a short range on Tuesday. Sensex and Nifty
logged marginal gains during the afternoon session. The US-China trade talks
assume special significance as analysts say both sides face a resumption of
tariffs in March if they don't strike a deal. The two economic giants agreed on
a 90-day trade truce in early December. Also, Q3 corporate earning session
starting this week kept the investors from taking position. On the domestic
front, RBI Governor Shaktikanta Das will meet representatives of Non-Banking
Financial Companies (NBFC) on Tuesday pushing the banking stocks 0.82% higher.
In contrast, consumer durable and power sectors traded lower but the finance
stocks managed to stay in the green.
Most
of the central government offices, banks, port trusts and other state
government departments wore a deserted look on Tuesday as employees launched a
two-day nationwide trade strike, a top organiser said here in Mumbai.
The
Delhi High Court set aside a Central government notification restricting the
manufacture, sale and distribution of an anti-inflammatory medicine Ace
Proxyvon manufactured by pharma company Wockhardt Ltd. Ace Proxyvon, which
combines the dosage of aceclofenac, paracetamol and rabeprazole, is used to get
relief from pain and inflammation associated with rheumatoid arthritis,
osteoarthritis and ankylosing spondylitis. The high court observed that the
Centre's decision to ban the drug had been taken without application of mind
and order was passed without following certain procedures.
The
major indices of the Indian stock markets were range-bound on Wednesday and
closed with gains over Tuesday’s close. On the NSE, there were 701 advances,
1,009 declines and 356 unchanged.
Sensex
gained during Wednesday afternoon's trade session over signs of easing US-China
trade tensions and expectation of healthy Q3 corporate results. The third
quarter results session will start with the earning announcement of Tata
Consultancy Services. The IT (information technology) major is scheduled to
announce its results on Thursday. Globally, investors awaited the outcome of
US-China trade talks which has been extended. Sector-wise, metal, oil and gas
stocks lost over 1% but key finance and banking stocks traded in the green.
State-owned
NMDC announced a buyback of 3.23% equity shares at a price of Rs98 per stock
for a consideration not exceeding Rs1,000 crore. The buyback decision was taken
by the company's Board in its meeting held on Tuesday. The company's regulatory
filing to the BSE said that its Board has "approved the proposal to
buyback of not exceeding 10,20,40,815 equity shares at a price of Rs98 per
equity share payable in cash for an aggregate consideration not exceeding
Rs1,000 crore representing 4.11% of the aggregate of the fully paid-up equity
share capital and free reserves."
Just
a week after lowering its revenue estimate for the first quarter of fiscal
2019, Apple is cutting its current production plan for new iPhones by about 10%
for the January-March quarter, the Nikkei Asian Review reported on Wednesday.
Apple, being a market leader, is conservative on growth and consequently,
equity analysts are conservative about capital appreciation in 2019 in the US
stock market as a whole.
The
major indices of the Indian stock markets were range-bound on Thursday and
closed with small losses over Wednesday’s close. On the NSE, there were 846
advances, 860 declines and 359 unchanged.
Sensex
and Nifty traded lower on Thursday over a sharp rise in crude oil prices and
decline in financial stocks. Brent crude futures on Thursday surpassed the
$60-a-barrel mark. Also, investors awaited Q3 corporate results, set to start
on Thursday, and more clarity regarding US-China trade talks. It is observed
that crude price rise would have an adverse effect on the Indian rupee. In
addition, the supply cut by OPEC and other major oil producers came into effect
from January 1. Lately, excess US oil has pushed down prices. Accordingly, the
Indian currency weakened to Rs70.57 per dollar from its previous close of
70.46.
On
Friday, the major indices of the Indian stock markets were range-bound and
closed with small losses over Thursday’s close. On the NSE, there were 707
advances, 1,000 declines and 358 unchanged.
A
continuous rise in global crude oil prices, along with caution ahead of key
micro-economic data to be released later in the day, dragged the Indian equity
market into the red on Friday. The benchmark Brent crude prices rose over 0.5%
to cross the $62 a-barrel-mark. Stocks of IT (information technology), banking
and finance sectors were heavily sold. Realty sector stocks also ended 1.43%
lower after Finance Minister Arun Jaitley said at Thursday's GST Council Meeting
that owing to diverse opinions, a decision on the much-expected rate reduction
for under-construction homes would be taken at a later meeting.
Bandhan
Bank reported a 10.3% increase in its net profit for the third quarter (Q3) of
2018-19. Its net profit during the quarter under review rose to Rs331 crore
from Rs300 crore in the corresponding period of last fiscal. "Net Interest
Income (NII) for the quarter grew by 53.5% at Rs1,124 crore as against Rs732
crore in the corresponding quarter of the previous year," the bank said in
a statement. According to the lender, its net NPA (non-performing asset) as on
December 31, 2018 stood at to 0.7% as against 0.8% on December 31, 2017.
"Gross NPAs as on 31 December 2018 at 2.4% against 1.3% as on 30 September
2018 and 1.7% as on 31 December, 2017," the statement said. In addition,
the bank, without naming the IL&FS Group, said that it has made provision
of Rs384.95 crore in respect of an exposure "to a borrower from
Infrastructure development and finance sector, which was classified as
non-performing asset and fully provided for during the quarter". Bandhan
Bank shares closed at Rs452.45, down 4.05% on the NSE.
Indian
IT (information technology) bellwether Tata Consultancy Services (TCS) posted
robust net profit and revenue growth for the third quarter of this fiscal
(2018-19), beating estimates by analysts and a weaker rupee. The city-based
Tata Group's flagship company reported Rs8,121 crore consolidated net profit
for the quarter (Q3) under review, registering 24% annual growth from Rs6,545
crore in the same period a year ago. Similarly, consolidated revenue for the
quarter grew 21% year-on-year (YoY) to Rs37,338 crore from Rs30,904 crore in
the like period a year ago. Sequentially, net profit, however, rose 2.5% from
Rs7,927 crore but revenue remained flat (0.1%) from Rs36,854 crore a quarter
ago. Under the International Financial Reporting Standard (IFRS), net income
grew 12% YoY to $1,140 million from $1,014 million in the same period a year
ago and gross revenue rose 9.7% YoY to $5,250 million from $4,787 million in
the like period a year ago. Sequentially, net income grew 1.9% from $1,119
million and gross income remained flat (0.7%) from $5,215 million a quarter
ago. Profit before tax grew 24% YoY to Rs10,727 crore from Rs8,651 crore in the
same period year ago and 2.2% sequentially from Rs10,501 crore a quarter ago.
Operating margin for the quarter at 25.6% remained flat (0.4%) YoY. Accounting
for 30% of the revenue, digital business grew a whopping 53% YoY during the
quarter. Geographically, it grew in Britain 25% YoY and in Europe 17.6% YoY.
"The board has recommended Rs4 or a whopping 400% dividend per share of
Re1 face value," said the company in a statement here later. TCS shares
closed at Rs1,842.55, down 2.39% on the NSE.
Global
software major Infosys will buy back its shares again and pay special dividend
to its shareholders for this fiscal (2018-19), said the company. "The
company's Board of Directors will consider buyback of its paid-up equity
shares, payment of special dividend and implementation of the Capital
Allocation Policy at its meeting on January 11," said the city-based IT
firm in a regulatory filing on the BSE. The board had approved the capital
allocation policy at its meeting on April 13, 2018. Infosys on Friday reported
Rs3,610 crore consolidated net profit for the third quarter of fiscal 2018-19,
posting nearly 30% annual decline from Rs5,129 crore in the same period a year
ago. In a regulatory filing on the BSE, the city-based IT behemoth said
consolidated revenue for the quarter (Q3) under review, however, grew 20.3%
annually to Rs21,400 crore from Rs17,794 crore in the like period a year ago.
Sequentially too, net profit dipped 12% from Rs4,110 crore but revenue rose
3.8% from Rs20,609 crore a quarter ago. Under the International Financial
Reporting Standards (IFRS), net income declined nearly 37% annually to $502
million in Q3 from $796 million a year ago and declined sequentially 13.6% from
$581 million a quarter ago. Gross income under IFRS, however, grew 8.4% to
$2,987 million in Q3 from $2,755 million in the like period a year ago and 2.2%
sequentially from $2,921 million a quarter ago. Infosys shares closed at
Rs683.50, up 0.68% on the NSE.The Total
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Weekly Indices (The Total
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