Healthy Q1 earnings, foreign funds lift equity indices

Jul 31, 2018 0

Mumbai– After a largely volatile trade, healthy quarterly earnings results along with fresh influx of foreign funds and expectations of a dovish monetary policy aided the key Indian equity indices to pare their initial losses and end Tuesday’s trade session on a record high.

Besides, appreciation in the Indian rupee also supported gains in the indices, analysts said.

However, the day’s trade session was volatile ahead of the Reserve Bank of India’s monetary policy review on Wednesday.

Index-wise, the wider Nifty50 on the National Stock Exchange settled at 11,356.50 points, higher by 36.95 points and 0.33 per cent from its previous close.

It touched a fresh high of 11,366 points during the intra-day trade.

The S&P BSE Sensex, which had opened at 37,534.95 points, closed at 37,606.58 points, higher by 112.18 points or 0.30 from its previous close of 37,494.40 points.

The barometer touched a record intra-day high of 37,644.59 points and a low of 37,298.75.

“Caution ahead of tomorrow’s RBI and US Fed policy led the indices to start on a weak note. However, strength in earnings supported the market to reverse from day’s low and ended up with a gain,” said Vinod Nair, Head of Research at Geojit Financial Services.

Deepak Jasani, Head of Retail Research at HDFC Securities, said: “Markets continued to surge higher on Tuesday to close at yet another new lifetime high. This was the eight consecutive up closing for the Nifty.

“The gains came on the back of up-moves in index heavyweights Reliance Industries, Hindustan Unilever and Infosys as investors focussed on the RBI’s bi-monthly policy meeting that will end on Wednesday.”

In a major development, Reliance Industries Ltd (RIL) on Tuesday surpassed Tata Consultancy Services (TCS) in terms of market capitalisation (market-cap) in India.

At closing, the market-cap of Reliance Industries on the BSE stood at around Rs 7.51 lakh crore, against the Rs 7.43 lakh crore worth of market-cap of Tata Consultancy Services.

The rise in market-cap of the RIL came on the back of healthy results for the June-ended quarter, analysts said.

The share price of RIL on BSE settled at Rs 1,185.85 on Tuesday, higher by 36.15 points or 3.14 per cent from its previous close.

On the currency front, the rupee closed at 68.55, appreciating by 13 paise from the previous close of 68.68 per dollar.

Investment-wise, provisional data with exchanges showed that foreign institutional investors bought scrip worth Rs 572.21 crore and the domestic institutional investors sold stocks worth Rs 290.87 crore.

Sector-wise, the S&P BSE consumer durables index gained the most, by 209.82 points, followed by the capital goods index, which rose by 171.30 points and the IT index, up 116.18 points.

On the contrary, S&P BSE banking index fell by 138.18 points, the finance index fell 33.38 points, utilities index was marginally down, by 0.87 points.

The major gainers on the Sensex were Hero MotoCorp, up 2.77 per cent at Rs 3,293.80; Hindustan Unilever, up 2.52 per cent at Rs 1,731.60; Adani Ports, up 2.41 per cent at Rs 400.10; and Bharti Airtel, up 1.97 per cent at Rs 390.70 per share.

The major losers were Axis Bank, down 3.23 per cent at Rs 550.10; Tata Motors (DVR), down 2.04 per cent at Rs 144.20; HDFC, down 1.64 per cent at Rs 1,994.75; State Bank of India, down 1.33 per cent at Rs 293.40; and ITC, down 1.30 at Rs 297.20 per share. (IANS)

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Samsung posts $13.3 bn in operating profit as revenue falls 4% in Q2

Jul 31, 2018 0

Seoul– Samsung Electronics posted 14.9 trillion won ($13.3 billion) in operating profit for the second quarter that ended on June 30 as revenue fell 4 per cent to 58.5 trillion won ($52.2 billion) from a year earlier, the company announced on Tuesday.

The consolidated net profit was 11.04 trillion won ($9.85 billion).

“Second quarter revenue fell due to softer sales of smartphones and display panels, despite robust demand for memory chips,” said the South Korea-based giant.

The chip business continued to deliver strong earnings, driven by demand for DRAM chips used in data centres and NAND flash memory for high-capacity storage, amid a softening of NAND prices.

In the display business, the company saw weak demand for flexible OLED panels in the second quarter while the shipment and price for LCD panels also fell.

Amid the stagnant high-end smartphone market, Samsung reported a drop in earnings, both year-on-year and quarter-on-quarter, over slow sales of the Galaxy S9 and S9+ premium smartphones.

The network business, however, achieved solid growth led by investments in LTE networks by key global customers.

The mobile market condition will likely remain challenging in the second half amid pricing competition and new product launches, said Samsung.

“The company will respond through the early introduction of the Galaxy Note and competitive mid- and low-end models with new features,” it added.

In mobile, demand for high-density storage for new smartphones and high-end models is likely to remain robust.

“In mobile, in addition to new flagship smartphone launches, memory content is projected to increase in mid-range models as they begin to support high-specification mobile games, on-device AI and dual camera features,” said Samsung.

Demand for smartphones and tablets is forecast to increase in the second half as the market enters a period of strong seasonality, but competition is seen intensifying as new smartphone models are released.

Following a successful restructuring of its product line-up, Samsung led expansion of the premium TV market, winning more than 50 per cent market share in the ultra-large screen segment of 75-inches and above.

Looking to the second half, the TV market is projected to grow YoY, especially in developed economies, said the company.

“Looking ahead, Samsung expects sustained strength in the memory market and growing demand for flexible OLED panels to drive earnings higher in the second half,” the company added. (IANS)

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Vedanta’s Q1 net profit up 2% to Rs 1,533 cr

Jul 31, 2018 0

Mumbai, July 31 (IANS) Diversified natural resources company Vedanta on Tuesday reported a consolidated net profit of Rs 1,533 crore, up 2 per cent from the corresponding quarter last fiscal.

It had posted a net profit of Rs 1,501 crore in the April-June quarter last year, the company said in a BSE filing.

The company said its net profit is after after taxes, non-controlling interests and share in profit of jointly controlled entities and associates but before exceptional items.

The consolidated net income from operations rose 15 per cent to Rs 22,206 crore in the first quarter of the current fiscal as compared to Rs 19,342 crore in the year-ago quarter.

The revenue was up 15 per cent on account of higher volumes at aluminium, oil and gas business, higher availability at Talwandi Sabo Power Limited (TSPL), currency depreciation and higher commodity prices partially offset by lower volumes at Zinc India, Zinc International, iron ore business and closure of Tuticorin smelter, the company said.

“We delivered strong EBITDA and steady margins this quarter driven by record volumes in aluminium, higher production in oil and gas, as well as, supportive commodity prices,” Vedanta Chief Executive Officer Kuldip Kaura was quoted as saying in a statement. (IANS)

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Investment in logistics to touch $500 bn by 2025: Prabhu

Jul 30, 2018 0

New Delhi– Commerce and Industry Minister Suresh Prabhu on Monday said investments in logistics and infrastructure will touch $500 billion by 2025 as the country becomes an attractive destination for manufacturing and services.

“Expenditure on investment in logistics, including infrastructure, will touch $500 billion, by 2025… this will create millions of jobs and also do away with the hurdles hampering India’s internal and global trade,” Prabhu said at an event here.

Suresh Prabhu

Prabhu said India, with initiatives like “Digital India, Make in India and Skill India”, is now being looked upon as one of the most appropriate destinations for manufacturing and service locations by many of the foreign companies.

The minister further said the government has taken many measures to improve the trade performance through efficient and effective logistics including granting of infrastructure status to “warehousing, cold chains and multi-modal logistics parks”.

“The measures include smoothening of the border and cross border documentation and activities, dedicated freight corridors, investments in port and other infrastructures, alignment of all business processes thus attempting to improve logistics performance of the country,” he was quoted as saying in an official statement.

According to Prabhu, the ministry is working on a “National Logistics Policy” and another policy on the development of “Multi-modal Logistics Parks” to be announced soon.

A logistics wing has been created in the Department of Commerce for integrated development of the sector.

Prabhu was speaking at an event where the commerce department’s logistics wing and the Indian Institute of Foreign Trade (IIFT) singned an MoU for setting up a Centre for Trade Facilitation and Logistics Excellence (CTFL).

The Centre has been given a mandate to bring together industry, academia, governments and organizations of national and international level, to work on key supply chain and logistics and management challenges facing firms in the globalised environment.

Prabhu said the cost and speed of logistics at present is hindering the market share that Indian products deserve and CTFL will attempt to solve these issues. It will also train trade facilitation and logistics professionals and government officials concerned.

The minister also released the logo of logistics division. It is a graphic symbol representing a pair of swans known for their ability to travel long distances and are comfortable in the sky, water and on earth and represents team work between various partners in logistics. (IANS)

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Equity indices reach new benchmarks, Sensex ends near 37,500 mark

Jul 30, 2018 0

Mumbai– Domestic equity indices continued to set new benchmarks on Monday and settled at their record closing levels, supported by healthy quarterly earnings.

Earlier in the day, the BSE Sensex crossed the 37,500 mark for the first time and touched an all-time intra-day high of 37,533.50 points. The NSE Nifty50 also hit a fresh high of 11,328.10 points.

Index-wise, the wider Nifty50 on the National Stock Exchange closed at 11,319.55 points, higher by 41.20 points or 0.37 per cent from its previous close of 11,278.35 points.

The 30-scrip BSE Sensex, which had opened at 37,491.39 points, closed at 37,494.40 points, higher by 157.55 points or 0.42 per cent from its previous close of 37,336.85 points. It touched an intra-day low of 37,292.45 points.

In the broader markets, the S&P BSE mid-cap rose by 0.30 per cent and the S&P BSE small-cap ended 0.55 per cent higher from its previous close. The BSE market breadth was bullish with 1,606 advances and 1,057 declines.

“Carrying on from last week, markets continued to surge higher on Monday,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

Globally, however, equity markets traded in the negative territory.

Major Asian markets closed on a negative note, barring the Jakarta index and the European indices like FTSE 100, CAC 40 and DAX also traded in the red.

On the currency front, the rupee closed at 68.68, depreciating by two paise from the previous close of 68.66 per dollar.

Investment-wise, provisional data with exchanges showed that foreign institutional investors sold scrip worth Rs 234.04 crore and the domestic institutional investors purchased stocks worth Rs 48.58 crore.

Sector-wise, the S&P BSE banking index gained the most, by 401.01 points, followed by the auto index, which rose by 119.11 points and the oil and gas index, up 112.79 points.

On the contrary, S&P BSE oil and gas index ended lower by 112.79 points, the capital goods index fell 40.34 points, Teck index (technology, entertainment and media) was down 18.38 points.

The top gainers on the Sensex were Bharti Airtel, up 5.13 per cent at Rs 383.15; ICICI Bank, up 4.76 per cent at Rs 307.25; State Bank of India, up 3.75 per cent at Rs 297.35; and Axis Bank, up 2.67 per cent at Rs 568.45; Mahindra and Mahindra, up 2.52 per cent to Rs 932.70 per share.

The major losers were Infosys, down 1.56 per cent at Rs 1,353.15; HDFC Bank, down 1.41 per cent at Rs 2,172.25; Tata Motors (DVR), down 1.27 per cent at Rs 147.20; Larsen and Toubro, down 1.19 per cent at Rs 1,295.80; and Adani Ports, down 0.90 at Rs 390.70 per share. (IANS)

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Equity indices continue to set fresh benchmarks; Sensex breaches 37,500 mark

Jul 30, 2018 0

Mumbai– Continuing their record-breaching spree, the key Indian equity indices rose to fresh benchmarks on Monday riding on the back of healthy quarterly earnings.

The barometer S&P BSE Sensex breached the 37,500-mark for the first time, touching an all time high of 37,511.39 points and the NSE Nifty50 touched a record level of 11,318.50 points.

According to analysts, banking and auto stocks witnessed healthy buying activity so far.

At 2.08 p.m. the wider Nifty50 on the National Stock Exchange, traded at 11,317.20 points, higher by 38.85 points or 0.34 per cent from its previous close of 11,278.35 points.

The 30-scrip BSE Sensex which had opened at 37,491.39 points traded at 37,490.61 points (2.09 p.m.), higher by 153.76 points or 0.41 per cent from its previous close of 37,336.85 points. It touched an intra-day low of 37,292.45 points.

The top gainers on the Sensex were ICICI Bank, State Bank of India, Bharti Airtel, Axis Bank and Power Grid while HDFC Bank, Infosys, Larsen and Toubro, Adani Ports and Wipro were among the major losers. (IANS)

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BSE to launch weekly ‘Dollar-Rupee’ F&O contracts on July 30

Jul 27, 2018 0

Mumbai– The Bombay Stock Exchange (BSE) on Friday said it will launch “Weekly Dollar-Rupee Futures & Options Contracts” on July 30.

According to BSE, the move will help increase liquidity in the market.

Currently, monthly contract are available on all approved currency pairs including “USDINR” currency pair.

“The introduction of new products will allow entities like corporates, foreign portfolio investors and non-resident Indians to participate and to take positions in the exchange traded currency derivatives markets,” BSE’s MD and CEO Ashishkumar Chauhan was quoted as saying in a statement.

“The move will help also companies to hedge their forex exposure and increase liquidity in the markets.” (IANS)

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India’s Forex reserves inches-up by over $67 mn

Jul 27, 2018 0

Mumbai– India’s foreign exchange (Forex) reserves inched-up by $67.7 million during the week ended July 20, official data showed on Friday.

According to the Reserve Bank of India’s (RBI) weekly statistical supplement, the overall forex reserves inched-up to $405.14 billion from $405.08 billion reported for the week ended July 13.

India’s forex reserves comprise of foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs) and the RBI’s position with the International Monetary Fund (IMF).

Segment-wise, FCAs — the largest component of the Forex reserves — rose by $46.8 million to $380.04 billion during the week under review.

Besides the US dollar, FCAs consist of nearly 20-30 per cent of major global currencies.

As per the data, the value of the country’s gold reserves increased by $24.9 million to $21.14 billion.

The SDRs’ value inched down by $1.8 million to $1.48 billion, while the country’s reserve position with the IMF slipped by $2.2 million to $2.47 billion. (IANS)

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HCL net up 10.7 per cent in Q1

Jul 27, 2018 0

New Delhi– Software major HCL Technologies on Friday reported Rs 2,403 crore consolidated net profit for the first quarter of 2018-19, posting 10.7 per cent annual growth from Rs 2,171 crore in the same period last year and 7.9 per cent sequentially from Rs 2,227 crore last quarter.

“Consolidated revenue for the quarter (Q1) under review grew 14.2 per cent annually to Rs 13,878 crore from Rs 12,149 crore in the like period year ago and 5.3 per cent up sequentially from Rs 13,179 crore quarter ago,” said the Noida-based IT major in a regulatory filing on the BSE.

Under the International Financial Reporting Standard (IFRS) in dollar terms, consolidated net income grew 5.7 per cent annually to $356 million from $337 million in same period year ago and 3.4 per cent sequentially from $344 million quarter ago.

Revenue grew 9 per cent annually to $2,055 million from $1,884 million in like period year ago but remained flat (0.8 per cent) sequentially from $2,035 million last quarter.

Earnings before interest, tax, depreciation and amortisation (Ebitda) or the operating margin grew 11.6 per cent to Rs 2,729 crore for the quarter from Rs 2,444 crore year ago and 5.7 per cent sequentially from Rs 2,583 crore.

“Revenue for the fiscal (FY 2019) is expected to grow 9.5-11.5 per cent in constant currency, which translates into 8.4-10.4 per cent on dollar value of Rs 66/$ as on June 30,” said the company in a statement later.

The operating margin (Ebitda) for the fiscal is expected to be 19.5-20.5 per cent with Indian rupee at 66 per US dollar.

“As we expand our global footprint, it is imperative we accelerate, reinvent and reimagine to overcome the challenges of an ever-evolving technology and business landscape. We also remain committed to creating a sustainable business with focus on diversity and inclusion,” said HCL Chairman Shiv Nadar in the statement.

The company signed 27 deals during the quarter with momentum in telecom, financial services, retail, consumer package goods and energy & utilities verticals.

“We achieved highest ever bookings in the quarter led by the next-gen Infrastructure services. We are investing in next generation portfolio to help enterprises build their digital future,” said Chief Executive C. Vijaykumar.

The company added one new client in $100-million and 7 in $50 million band.

“The quarterly performance has been as per our plan. We have reported healthy growth in revenues. We allocate capital efficiently with equity buyback announcement which is underway. Our pay-out as percentage of net income has been at 54 per cent of net income and 69 per cent of free cash flow,” said Chief Financial Officer Anil Chanana.

The board of directors recommended 100 per cent dividend of Rs 2 per share of Rs 2 face value for the investors.

The company also announced to buyback equity shares valued at Rs 4,000 crore at Rs 1,000 per share in this fiscal.

The company hired 12,558 techies during the quarter, taking the total headcount to 124,121 as against 120,081 quarter ago and 117,781 a year ago.

The HCL’s blue-chip gained Rs 11.25 per share at the end of Friday’s trading on the BSE to close at Rs 963.70 as against Thursday’s closing rate of Rs 952.45 and opening price of Rs 961. (IANS)

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Bank of Baroda’s Q1 net profit up 160%

Jul 27, 2018 0

Mumbai– State-run lender Bank of Baroda on Friday reported an exponential rise of 160.10 per cent in its standalone net profit for the first quarter of 2018-19 aided by lower provisioning for non-performing assets (NPAs).

According to the lender, the net profit during the quarter under review rose to Rs 528 crore from Rs 203 crore reported for the corresponding period of the previous financial year.

The bank’s net interest income grew by 28.66 per cent to Rs 4,381 crore during the quarter ended June 30, 2018 compared to Rs 3,405 crore in the corresponding period of the previous fiscal.

As per the statement, the provisioning for NPAs decreased by 18.41 per cent to Rs 1,760 crore from Rs 2,157 crore made during the corresponding period of last fiscal.

“Gross NPA (GNPA) of the bank was Rs 55,875 crore as on June 30, 2018 as compared to Rs 56,480 crore as on March 31, 2018. GNPA ratio was 12.46 per cent,” the bank said in a statement.

“Net NPA ratio declined from 5.49 per cent in March 2018 quarter to 5.40 per cent in June 2018. Absolute amount of Net NPA also declined by Rs 1,099 crore Q-o-Q.” (IANS)

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