Market edges lower amid initial volatility

Key benchmark indices traded near the flat line in negative zone amid initial volatility in early trade. At 9:16 IST, the barometer index, the S&P BSE Sensex was down 17.31 points or 0.06% at 28,191.31. The Nifty 50 index was currently down 3.10 points or 0.04% at 8,663.20.

In overseas stock markets, Asian stocks witnessed a mixed trend. In Japan, the Nikkei 225 Average was currently down 0.4%. 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 today, 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 slightly higher yesterday, 28 July 2016 amid declines in oil prices, as major tech stocks gained.

Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 676 shares rose and 367 shares declined. A total of 52 shares were unchanged. The BSE Mid-Cap index was currently up 0.29%. The BSE Small-Cap index was currently up 0.33%. Both these indices outperformed the Sensex.

Cement stocks edged higher. Ambuja Cements (up 0.22%) and Shree Cement (up 0.08%) rose. ACC (down 0.3%) edged lower.

UltraTech Cement was up 0.26% after the company said it participated in the auction of coal linkages for captive power plant sub-sector and won two linkages of 27,600 tons and 19,700 tons, respectively, from Dipka Mines (SCDG) in Chhattisgarh. The company said that both the linkages were at premium of Rs 150 over notified price of Rs 970 per ton. The company said it intends to participate in the future linkage auctions for its plants located strategically near the coal mines. The announcement was made after market hours yesterday, 28 July 2016.

Grasim Industries was up 0.31%. Grasim has exposure to cement sector through its holding in UltraTech Cement.

Eicher Motors (EML) was up 3.82% after consolidated net profit surged 58.6% to Rs 376 crore on 42% growth in total income from operations to Rs 1556 crore in Q1 June 2016 over Q1 June 2015. The stock hit a record high of Rs 22,382.15 in intraday trade. The stock hit a low of Rs 21,526.05 so far during the day. The result was announced after market hours yesterday, 28 July 2016.

The company's earnings before interest, taxation, depreciation and amortization (EBITDA) surged 64.6% to Rs 470 crore in Q1 June 2016 over Q1 June 2015. EBITDA margin expanded to 30.2% in Q1 June 2016 from 26.1% in Q1 June 2015.

EML's Managing Director & CEO Siddhartha Lal said that the management's immediate business outlook for Royal Enfield business remains strong and it continues to grow consistently, competitively and profitably towards leading and expanding the mid-sized motorcyle segment globally.

Commenting on VE Commercial Vehicles' (VECV) performance, Siddhartha said that VECV demonstrated an impressive performance in Q1 June 2016 with sales of 16,071 units recording a growth of 32.5% over Q1 June 2015. VECV also increased its overall market share to 15.1% in Q1 June 2016, as compared to 13.2% recorded in Q1 June 2015. VECV continues to do well in the sub 5-ton category with the introduction of Pro 1049 where it is currently selling more than 100 trucks every month since its launch in the last quarter. Eicher Motors' 50:50 joint venture with Polaris Industries, Eicher Polaris Private Ltd., through its product Multix is generating a lot of interest among its target customers. Multix is now present in 50 locations across 8 states and it continues to gain momentum in its target markets, he further added.

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