Key indices trade with small gains

Key benchmark indices traded with small gains in morning trade. At 10:15 IST, the barometer index, the S&P BSE Sensex rose 49.30 points or 0.15% at 32,277.57. The Nifty 50 advanced 18.35 points or 0.18% at 9,982.90. Key indices opened the session with small gains amid initial volatility. Later, indices hovered in green with small gains amid positive signals from global markets.

Globally, investors await the outcome of a two-day US Federal Reserve's policy meeting scheduled later today, 26 July 2017. Markets will be watching for any signals about another possible rise in the benchmark lending rate in 2017, and on when the Fed will begin winding down its multi-trillion-dollar investment holdings.

Among other barometers, the S&P BSE Mid-Cap index rose 0.45%. The S&P BSE Small-Cap index advanced 0.66%. Both these indices outperformed the Sensex.

Overseas, most Asian stocks edged higher tracking positive session from Wall Street overnight. US equities closed higher yesterday, 25 July 2017, after a slew of major companies reported better-than-expected quarterly results. Wall Street had also set its sights on the Federal Reserve, as the central bank kicked off a two-day monetary policy meeting yesterday, 25 July 2017.

The Federal Reserve will announce its interest rate decision later today, 26 July 2017. The Fed had raised the target range for its federal funds rate by 25 basis points to 1% to 1.25% during its June 2017 meeting.

Closer home, the breadth, indicating the overall health of the market, was strong. On the BSE, 1,335 shares rose and 658 shares declined. A total of 79 shares were unchanged.

Telecom stocks declined. Idea Cellular was down 1.38%. Bharti Infratel declined 1.74%. Bharti Infratel is a telecom tower infrastructure arm of Bharti Airtel. Reliance Communications was up 0.2%.

Bharti Airtel fell 0.83% at Rs 423 after consolidated net profit fell 58.4% to Rs 617.70 crore on 14% decline in net sales to Rs 21958.10 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 25 July 2017.

Bharti Airtel's revenue in Q1 June 2017 dropped primarily due to decline of mobile revenues in India. In addition, currency devaluation in Nigeria had an impact on revenue growth of 2.6%.

EBITDA (earnings before interest, taxes, depreciation and amortization) margin for Q1 June 2017 dropped to 35.6% as compared to 37.5% in Q1 June 2016.

Realty stocks were mostly higher. Unitech (up 4.12%), Prestige Estates Projects (up 2.96%), DLF (up 1.36%), Godrej Properties (up 0.62%), HDIL (up 0.52%) and Oberoi Realty (up 0.45%) edged higher. D B Realty (down 0.36%), Indiabulls Real Estate (down 0.16%) and Sobha (down 0.14%) edged lower.

Pidilite Industries lost 3.39% after consolidated net profit fell 16.77% to Rs 226.51 crore on 2.58% decline in net sales to Rs 1528.92 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 25 July 2017.

Navin Fluorine International jumped 10.24% at Rs 693 after net profit increased 12.51% to Rs 49.11 crore on 38.46% rise in net sales to Rs 225.43 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 25 July 2017.

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