We had mentioned in last week’s closing report that Nifty, Sensex may try to bounce. The major indices of the Indian stock markets were volatile and ended with gains over previous Friday’s close. The trends of the major indices in the course of the week’s trading are given in the table below:
The market went up on Thursday and Friday on the expectation that the finance ministry is open to reviewing an increase tax surcharge on the super rich as part of the budget proposal, which became an unintended burden on foreign portfolio investors (FPIs). On Friday, Finance minister Nirmala Sitharaman will meet FPIs along with key finance ministry representatives including tax officials. There are indications that the government is open to reviewing it after having consistently refusing to yield. The market is also expecting a package that will boost investor sentiment and arrest an economic downturn. The current government, unlike the previous ones, is averse to rollbacks. It always presents and strong, unyielding face and hence may present a solution that may not be very palatable to the market.
On Monday, the major indices headed lower. On the NSE, there were 508 advances, 1,278 declines and 325 unchanged. Indian indices ended on a negative note but off day's low on August 5 amid nervousness after the government decided to withdraw Article 370 from J&K. BEML has bagged further orders for Metro Coaches from M/s Delhi Metro Rail Corporation Limited (DMRC) for MMRDA Mumbai line 2&7 for additional 21 trainsets (126 Nos.) valued at approx. Rs834 crore. The above order is in addition to the order received from DMRC for supply of 378 metro coaches (63 metro trains) worth about Rs3,015 crores.
Venky's India has posted net profit of Rs62 crores for the quarter ended June 2019 (Rs71 crore in Q1 FY19) down 13% year-on-year. Total income grew 20% to Rs905 crores (Rs756 crores in Q1 FY19). Trident Limited posted profit after taxes of Rs122 Crores for the quarter ended June 2019 (Rs59 crores in Q1 FY19) up 107% y-o-y. Net revenue from operations stood at Rs1,312 (Rs1,136 Crores in Q1 FY19) up 15% y-o-y.
On Tuesday, the major indices rallied. On the NSE, there were 1,284 advances, 499 declines and 310 unchanged. PNB Housing Finance Limited raised fresh $75 million (Rs522 crore) via external commercial borrowing (ECB) from Sumitomo Mitsui Banking Corporation (SMBC) Singapore. The company had last month raised $100 million via ECB from the International Finance Corporation (IFC).
Mortgage lender Dewan Housing Finance Corporation Ltd (DHFL) on Tuesday sought a moratorium on repayment of its dues, also saying, however, that the lenders will not have to take haircuts on the principal amount of their loans.
JSW Energy posted net profit of Rs244 crores for the quarter ended June 2019 (Rs229 crores in Q1 FY19), up 7% y-o-y. Total income grew 2% y-o-y to Rs2,412 crores (Rs2,361 crores in Q1 FY19). Pidilite Industries posted net profit of Rs293 crores for the quarter ended June 2019 (Rs239 crores in Q1 FY19), up 23% y-o-y. Total income grew 10% y-o-y to Rs2,017 crores (Rs1,834 crores in Q1 FY19).
On Wednesday, the major indices were flat for most of the trading session but ended with a sharp correction. On the NSE, there were 819 advances, 945 declines and 323 unchanged. Sensex and Nifty mostly stayed on usual course post Reserve Bank of India's (RBI) fourth consecutive rate cut on Wednesday amid a massive slowdown in the Indian economy. The RBI on Wednesday broke with convention by reducing its key lending rates by 35 basis points to 5.40% from 5.75%. Cipla's net profit grew 0.4% year-on-year at Rs447.2 crore in first quarter ended June 30. Revenues declined 1% to Rs4,067.39 crore in Q1FY20, compared to Rs4,109.10 in the year ago period.
Cipla's India business declined 12.2% y-o-y to Rs1,355 crore due to the realignment of distributors in the trade generics. Around one-third of Cipla's sales comes from the domestic formulation market. Lupin reported a net profit of Rs303 crore in the June quarter, a jump of 49.5 % YoY. Revenues rose 15% YoY to Rs4,418.4 crore in Q1FY20. The company launched five products in the US market during the quarter. The company now has 175 products in the US generics market. The Ramco Cements posted net profit of Rs194 crores for the quarter ended June 2019 (Rs128 crores in Q1 FY19) up 52% y-o-y. Total income grew 13% y-o-y to Rs1,389 crores (Rs1,224 crores in Q1 FY19).
On Thursday, the major indices rallied and closed with major gains. On the NSE, there were 1,055 advances, 690 declines and 352 unchanged. HCL Technologies posted net profit of Rs2,230 crores for the quarter ended June 2019 (Rs2,431 crores in Q1 FY19) down 8% y-o-y. Total income grew 18% y-o-y to Rs16,427 (Rs13,878 crores in Q1 FY19). It has declared an interim dividend of Rs2 per equity share for the financial year 2019-20.
Srei Infrastructure Finance has reported a consolidated profit after tax of Rs43 crore for the quarter ended June 2019 (Rs140 crore in Q1 FY19) down 69% y-o-y. Net interest income grew 2% y-o-y Rs1,583 crore (Rs1,548 crore in Q1 FY19). Consolidated assets under management stood at Rs47,327 crore as on June 30, 2019 as compared to Rs49,426 crore a year earlier. Balrampur Chini Mills has reported net profit of Rs106 crores for the quarter ended June 2019 (Rs74 crores in Q1 FY19) up 43% y-o-y. Total income declined 5% y-o-y to Rs948 crores (Rs1,003 crores in Q1 FY19). Bajaj Electricals posted profit after taxes of Rs14 crore for the quarter ended June 2019 (Rs40 crore in Q1 FY19) down 65% y-o-y. Revenues increased 14% y-o-y to Rs1,301 crore as against Rs1,140 crore in the corresponding period in the previous year.
On Friday, the major indices opened high and closed with gains. On the NSE, there were 1,132 advances, 608 declines and 349 unchanged. Auto major Mahindra and Mahindra announced a production shutdown of 8-14 days in its various plants during the ongoing July-September quarter. According to the company, the decision has been taken to align its production with the sales requirements. Benefiting from Jet Airways collapse in April, low-cost carrier SpiceJet posted a record profit of Rs261.7 crore in the quarter ending June, 2019 as against a net loss of Rs38.1 crore in the corresponding period last year. The airline reported total revenue of Rs3,145 crore during April-June period as against Rs2,253 crore in the same period in FY19, registering a growth of 39.50%.
Britannia Industries reported a 3.65% decline in profit for the quarter ended June 2019 at Rs248.64 crore down from Rs258.08 crore on this account in the comparable period last year. Total income stood at Rs2,768 crore, up 7%, as against Rs2,586 crore in the similar period last year, the company said in a regulatory filing. Britannia said that "the inordinate increase in milk prices impacted profitability of our dairy business adversely".
Adani Enterprises reported over seven-fold jump in net profit to Rs570.14 crore for the June quarter on the back of higher income. The company had clocked a profit of Rs80.14 crore in the year-ago period. Total income grew 39% to Rs10,685.86 crore from Rs7,664.20 crore in the year-ago period.
Credit rating agency Care has downgraded Vodafone Idea to Care A with negative outlook on account of weak financial performance. The development comes within two days of another rating agency Crisil downgraded credit value of Vodafone Idea.
Tata group retail chain Trent has raised over Rs1,000 crore through preferential allotment of shares to its promotor Tata Sons. Tata Sons' stake in Trent has increased to 32.45% after preferential allotment of 2.31 crore or 6.52% shares. PTC India posted net profit of Rs87.78 crores for the quarter ended June 2019 (Rs107.74 in Q1 FY19) down 19% y-o-y. Total income grew 42% y-o-y to Rs5,414.99 crores (Rs3,822.75 crores in Q1 FY19).
Petronet LNG posted net profit of Rs561.94 crores for the quarter ended June 2019 (Rs605.56 crores in Q1 FY19) down 7% y-o-y. Total income declined 6% y-o-y to Rs8,717.85 crores (Rs9,268.13 crores in Q1 FY19).