Key benchmark indices edged higher in early trade. At 9:20 IST, the barometer index, the S&P BSE Sensex was up 45.98 points or 0.19% at 24,384.41. The 50-unit Nifty 50 index was currently up 8.40 points or 0.11% at 7,412.40.
In overseas stock markets, Asian stocks were mixed. In China, the Shanghai Composite index was currently off 0.06%. Hong Kong's Hang Seng index was currently up 0.49%. In Japan, the Nikkei Stock Average was currently down 1.55%. US stocks closed slightly higher yesterday, 4 February 2016 in a choppy trading session.
Closer home, the market breadth indicating the overall health of the market was positive. On BSE 592 shares rose and 317 shares decline. A total of 42 shares were unchanged. The BSE Mid-Cap index was currently up 0.39%. The BSE Small-Cap index was currently up 0.2%. Both these indices outperformed the Sensex.
Telecom stocks edged higher. Tata Teleservices (Maharashtra) (up 1.93%), Reliance Communications (up 1.45%), Idea Cellular (up 0.5%) and Mahanagar Telephone Nigam (up 0.28%) gained. Bharti Airtel (down 0.33%) edged lower.
Tata Steel lost 3.16% at Rs 219 after the company reported consolidated net loss of Rs 2127 crore in Q3 December 2015 compared with net profit of Rs 157 crore in Q3 December 2014. Turnover fell 16.63% to Rs 28039 crore in Q3 December 2015 over Q3 December 2014. Earnings before interest, taxation, depreciation and amortization (EBITDA) excluding one-offs and profit on sale of investments declined 69.96% to Rs 838 crore in Q3 December 2015 over Q3 December 2014. The result was announced after market hours yesterday, 4 February 2016.
T V Narendran, Managing Director of Tata Steel India and South East Asia said that steel markets in India have been affected by depressed international steel prices and predatory imports. The quarter saw a sharp decline in steel prices which has impacted the margins, Narendran said.
Koushik Chatterjee, Group Executive Director (Finance and Corporate) said that the current business conditions for the global steel industry are extremely challenging with confluence of elevated imports across regions, currency headwinds and depressed market sentiments affecting Tata Steel Group's profitability. The Tata Steel Group has embarked on significant cost rationalisation program including fixed cost reduction, right sizing of manpower, productivity management and enriching the product mix across all geographies, Chatterjee said. These programs are expected to enhance the sustainable profitability profile of the company, he added. The company has also undertaken significant portfolio restructuring and will continue to pursue the same in the future, Chatterjee said.
Mahindra & Mahindra (M&M) rose 0.24% at Rs 1,204.05 after the company yesterday, 4 February 2016, announced the launch of its new heavy commercial truck series under the BLAZO brand at the Auto Expo at Greater NOIDA. The BLAZO series of heavy commercial vehicles include multi-axle trucks, tippers and tractor trailers in the range of 25 to 49 ton GVW for the domestic market.
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