Realty stocks edge lower

Key benchmark indices hovered in negative terrain in afternoon trade. At 13:15 IST, the barometer index, the S&P BSE Sensex was down 36.19 points or 0.13% at 27,800.32. The losses for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty was currently down 29 points or 0.34% at 8,586.25. Weakness in global stocks weighed on sentiment on the domestic bourses.

In overseas stock markets, European stocks edged lower amid rising concerns that OPEC countries will not reach an agreement over a production cut and a raft of corporate earnings. Asian stocks witnessed mixed trend amid a slew of earnings. Data showed that profit growth in China's industrial firms slowed in September from the previous month's rapid pace as several sectors showed weak activity, suggesting the world's second-biggest economy remains underpowered despite emerging signs of stability. Profits in September rose 7.7% to 577.1 billion yuan, slowing sharply from August's 19.5% jump, according to data released by the National Bureau of Statistics (NBS). US stocks edged lower yesterday, 26 October 2016 as health care companies fell and Apple pulled technology companies down.

Closer home, the market breadth indicating the overall health of the market was weak. On BSE, 1,605 shares fell and 912 shares rose. A total of 195 shares were unchanged. The BSE Mid-Cap index was currently down 0.99%. The BSE Small-Cap index was currently down 0.68%. The decline in both these indices was higher than the Sensex's decline in percentage terms.

Realty stocks declined. DLF (down 2.6%), D B Realty (down 1.64%), Oberoi Realty (down 1.66%), Unitech (down 0.99%), Godrej Properties (down 0.89%) and Sobha (down 0.58%) edged lower. Indiabulls Real Estate (up 0.06%), Prestige Estates Projects (up 1.82%) and Housing Development & Infrastructure (up 0.44%) edged higher.

FMCG stocks were mostly lower. Tata Global Beverages (down 5.02%), Dabur India (down 2.16%), Emami (down 1.47%), Marico (down 1.05%), Britannia Industries (down 0.82%), Nestle India (down 0.57%), Jyothy Laboratories (down 0.32%) and Bajaj Corp (down 0.01%) edged lower. Godrej Consumer Products (up 0.16%), Colgate-Palmolive (India) (up 0.87%), Procter & Gamble Hygiene and Health Care (up 0.41%) and GlaxoSmithkline Consumer Healthcare (up 0.3%) edged higher.

Hindustan Unilever (HUL) lost 1.44%. The company's net profit rose 11.54% to Rs 1095.60 crore on 2.22% growth in total income to Rs 8733.09 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 26 October 2016. During the quarter, in a challenging context where market growth continued to be under pressure, HUL's domestic consumer business grew at 2% and EBITDA (earnings before interest, taxation, depreciation and amortization) margin expanded by 60 basis points (bps), the company said. HUL's profit after tax before exceptional items, PAT (bei) grew by 9% to Rs 1082 crore in Q2 September 2016 over Q2 September 2015.

Harish Manwani, Chairman of HUL commented that in challenging market conditions, the company delivered another quarter of profitable growth. The company remains focused on market development, consumer led innovations and an even sharper drive on operating efficiences. With a good monsoon, the company expects a gradual improvement in market demand and remain positive on the mid-long term outlook for the industry, Manwani said. HUL's strategic agenda of delivering consistent, competitive, profitable and responsible growth remains unchanged, he added.

Maruti Suzuki India (MSIL) rose 0.82% after net profit rose 60.18% to Rs 2398 crore on 30.52% growth in total income to Rs 21109.40 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 27 October 2016.

IIFL Holdings rose 7.26% after consolidated net profit rose 30% to Rs 183.10 crore on 25% increase in total income to Rs 1216.10 crore in Q2 September 2016 over Q2 September 2015. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 37% to Rs 859.80 crore in Q2 September 2016 over Q2 September 2015. Loan assets under management in non-banking financial company (NBFC) operations rose 22% to Rs 20474 crore in Q2 September 2016 over Q2 September 2015. Total wealth assets grew 29% to Rs 100396 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 26 October 2016.

Nirmal Jain, Chairman, IIFL Holdings, said the company is pleased to report an all round healthy profit growth in core businesses, with return on equity close to 21%. Retail lending, the dominant business continues to witness robust growth and strategic focus is on progressive digital delivery of loans. Wealth management and Capital market businesses are on long term growth trajectory and focus is customer centricity.

Torrent Pharmaceuticals lost 8.1% after consolidated net profit dropped 59.33% to Rs 207 crore on 16.55% fall in total income to Rs 1472 crore in Q2 September 2016 over Q2 September 2015. Earnings before interest, taxation, depreciation and amortization (EBITDA) dropped 52.73% to Rs 372 crore in Q2 September 2016 over Q2 September 2015. The company said that Q2 September 2015 period included exceptional revenues and profits which was primarily on account of the launch of a new product launch in the US market which had limited competition. The research and development spend surged 94.74% to Rs 111 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 26 October 2016.

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