Key benchmark indices were trading with small gains in morning trade after trimming initial gains. At 10:20 IST, the barometer index, the S&P BSE Sensex was up 44.46 points or 0.16% at 28,121.64. The Nifty 50 index was currently up 9.85 points or 0.11% at 8,702.90.
In overseas stock markets, Asian stocks gained. Most US stocks closed slightly lower on Friday, 21 October 2016 after earnings from McDonald's helped offset a fall in energy and healthcare shares.
Closer home, the broad market depicted strength. There were more than two gainers against every loser on BSE. 1,472 shares rose and 702 shares fell. A total of 156 shares were unchanged. The BSE Mid-Cap index was currently up 0.09%, underperforming the Sensex. The BSE Small-Cap index was currently up 0.51%, outperforming the Sensex.
Most IT stocks dropped. HCL Technologies (down 1.71%), TCS (down 0.71%), and Infosys (down 0.39%) declined. Tech Mahindra rose 0.17%.
Wipro shed 3.55% after consolidated net income fell 8% to Rs 2070 crore on 10% increase in gross revenues to Rs 13770 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours on Friday, 21 October 2016. During the quarter, Wipro's non-GAAP constant currency IT services segment revenue in dollar terms grew 0.9% over Q1 June 2016 and grew 7.2% over Q2 September 2015. IT services segment revenue was $1916.30 million, a decrease of 0.8% over Q1 June 2016 and an increase of 4.6% over Q2 September 2015.
IT services segment profits fell 5% to Rs 2340 crore on 9% increase in revenue to Rs 13140 crore in Q2 September 2016 over Q2 September 2015. Wipro expects revenues from its IT services business to be in the range of $1,916 million to $1,955 million in the year ending 31 March 2017 (FY 2017).
Telecom stocks were mixed. Reliance Communications (RCom) (down 0.42%), and Bharti Airtel (down 1.42%) declined. Tata Teleservices (Maharashtra) (up 17.12%) and MTNL (up 1.51%) gained.
Idea Cellular fell 2.06% ahead of its Q2 results today, 24 October 2016.
Shares of Bharti Infratel rose 2.77%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Cairn India rose 0.11% after consolidated net profit rose 139.16% to Rs 778.70 crore on 9.08% decline in net sales to Rs 2038.59 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours on Friday, 21 October 2016. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose 31% to Rs 1039 crore in Q2 September 2016 over Q1 June 2016.
Revenue in Q2 September 2016 increased marginally over Q1 June 2016 as discount to Brent for Rajasthan crude declined substantially from $8.2 per bbl to $4.3 per bbl, implying a reduction in discount from 18% to 9.3%. An improvement in differential between Bonny Light and Brent, and strong refining crack for fuel oil and waxy residue helped reduce the discount, the company said in a statement.
Cairn India's average price realisation fell 4% to $41.80 per barrel of oil equivalent (boe) in Q2 September 2016 compared with $43.70 boe in Q2 September 2015. Average price realisation rose 10% compared with $38 boe in Q1 June 2016.
In its outlook, the company said that with an aim to create long term value to the shareholders, it will remain focused on monetizing its Rajasthan resource base. A net capital investment of $100 million is estimated for the year ending March 2017 (FY17), including 20% for exploration activities and 80% for development of RDG Gas project and completion activities of Mangala EOR. The gross production from Rajasthan for FY 2017 is expected to be maintained at the year ended March 2016 (FY16) level. Efforts are ongoing to further improve the economics of key projects - Bhagyam and Aishwariya EOR, Barmer Hill and Satellite Fields, at low oil prices and the pre-development investment is underway to ensure project readiness for the development with grant of extension of PSC. The company retains the flexibility to raise its capital investment as oil prices improve and aims to generate a healthy cash flow post capex so as to retain the ability to pay dividends.
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