Key indices hover in positive zone

After seeing higher opening, key benchmark indices hovered in positive zone in morning trade. At 10:16 IST, the barometer index, the S&P BSE Sensex was up 89.73 points or 0.32% at 28,114.06. The Nifty 50 index was currently up 23.05 points or 0.27% at 8,638.85.

The Sensex rose 119.99 points or 0.42% at the day's high of 28,144.32 in early trade. The barometer index rose 40.57 points or 0.14% at the day's low of 28,064.90 at the onset of trading session. The Nifty rose 32.85 points or 0.38% at the day' s high of 8,648.65 in early trade. The index rose 10.55 points or 0.12% at the day's low of 8,626.35 at the onset of trading session.

In overseas stock markets, Asian stocks edged lower tracking lacklustre trading in US markets overnight. In Japan, the Nikkei 225 Average was currently down 1.11%. Investors are hoping for further easing of monetary policy from the Bank of Japan (BOJ) after the conclusion of a two-day monetary policy meeting on 28-29 July 2016. Strength in the yen against the dollar post last month's Brexit vote and data showing a slowdown in the Japanese economy have triggered expectations of further easing of monetary policy from the BOJ. A stronger yen hurts the competitiveness of Japanese exporters.

US stocks closed mixed yesterday, 27 July 2016, after the Federal Reserve statement and major earnings reports. The Federal Open Market Committee (FOMC) has decided not to raise interest rates, maintaining the ultra-low level they have been at since December 2015. The US central bank opted to keep rates between 0.25% and 0.5%. The Fed said near-term risks to the economic outlook have diminished but inflation remained below the bank's target.

Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,312 shares rose and 576 shares declined. A total of 108 shares were unchanged. The BSE Mid-Cap index was currently up 0.43%. The BSE Small-Cap index was currently up 0.8%. Both these indices outperformed the Sensex.

Cement stocks rose. ACC (up 0.53%), Ambuja Cements (up 0.47%), Shree Cement (up 0.47%) and UltraTech Cement (up 0.51%) edged higher.

Grasim Industries was up 0.78%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Telecom stocks edged higher. Idea Cellular (up 1.46%) and Reliance Communications (up 0.1%) rose.

Bharti Airtel was up 0.31% at Rs 373.70. The company's consolidated net profit fell 30.8% to Rs 1462 crore on 7.9% increase in total revenue to Rs 25546 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 27 July 2016.

The consolidated revenue grew 8.4% to Rs 25546 crore in Q1 June 2016 over Q1 June 2015 on an underlying basis, adjusted for Africa divested operating unit and tower assets sale.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 16.4% to Rs 9591 crore in Q1 June 2016 over Q1 June 2015. The EBITDA margin edged up to 37.5% in Q1 June 2016 from 34.8% in Q1 June 2015. The company has adopted Indian Accounting Standards (Ind-AS) for its consolidated results effective 1 April 2016 with periods reinstated for like to like comparison.

Consolidated mobile data revenue grew by 34.1% to Rs 4640 crore in Q1 June 2016 over Q1 June 2015.

India revenues grew by 10.3% to Rs 19155 crore in Q1 June 2016 over Q1 June 2015. This was led by healthy growth of 9.1% in Mobile, 11.0% in Homes, 22.2% in Digital TV and 10.4% in Airtel Business on year-on-year (Y-o-Y) basis.

The company has realigned its India segment reporting in line with management reorganisation. Consequently, Airtel Business also now includes the erstwhile Corporate fixed line voice and fixed line data business which was hitherto reported with Telemedia segment. Mobile data revenues cross Rs 3500 crore and at Rs 3525 crore grew by 35.1% Y-o-Y, led by increase in the data customer base by 19.1% and traffic by 54.9%. Mobile broadband customers increased by 68.3% to 36.6 million from 21.7 million in the corresponding quarter last year. Data average revenue per user (ARPU) has moved up by Rs 21 Y-o-Y to Rs 202 in Q1 June 2016, led by 28.1% increase in usage per customer. Mobile Data revenues now contribute to 23.7% of Mobile India revenues vis-vis 19.2% in the corresponding quarter last year.

Shares of telecom towers company Bharti Infratel extended previous trading session's gains triggered by the company announcing strong Q1 results. The stock rose 3.6%. The stock had risen 4.66% to settle at Rs 379.30 yesterday, 27 July 2016. The company's consolidated net profit rose 71% to Rs 756 crore on 7% growth in revenue to Rs 3211 crore in Q1 June 2016 over Q1 June 2015.

Bharti Infratel is a telecom tower arm of Bharti Airtel.

Hero MotoCorp (HMCL) was up 0.35% at Rs 3,214.85. The company during market hours today, 28 July 2016 announced that keeping with the core values of the Hero Group as established by the late Dr. Brijmohan Lall Munjal, the members of the BML Munjal family have decided to realign their businesses to achieve future growth and expansion. With the blessings of Santosh Munjal, the matriarch of the Munjal family, Sunil Kant Munjal, Joint Managing Director, HMCL and Chairman, Hero Corporate Service, intends to focus his time and energy on his independent and core businesses, and to pursue new business interests, HMCL said. He has, therefore, expressed his desire to step down from the Board of Directors of HMCL once his tenure as the Joint Managing Director of the company comes to an end on 16 August 2016, HMCL said. This realignment will not impact the overall promoter shareholding, strategic direction or operational management of the company, HMCL said. On this occasion, Pawan Munjal, Chairman, Managing Director & Chief Executive Officer, and the senior leadership team at HMCL reiterated their commitment to continue to build the company into a truly world class enterprise in all respects.

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