Key benchmark indices traded off the day's high in mid-morning trade. At 11:15 IST, the barometer index, the S&P BSE Sensex, was up 135.17 points or 0.52% at 26,016.34. The gains for the Sensex were higher in percentage terms than those for the Nifty 50 index. The Nifty was currently up 37.15 points or 0.47% at 7,972.05. The Sensex was currently trading above the psychologically important 26,000 mark after piercing that level earlier during the trading session.
The market may remain volatile today, 26 May 2016, as traders roll over positions in the futures & options (F&O) segment from the near month May 2016 series to June 2016 series. The near month May 2016 derivatives contracts are set to expire today, 26 May 2016.
The Sensex jumped 187.44 points, or 0.72% at the day's high of 26,068.61 in morning trade, its highest level since 28 April 2016. The index rose 60.34 points, or 0.23% at the day's low of 25,941.51 in early trade. The Nifty rose 51.45 points, or 0.65% at the day's high of 7,986.35 in morning trade, its highest level since 28 April 2016. The index rose 13.60 points, or 0.17% at the day's low of 7,948.50 in early trade.
The market breadth indicating the overall health of the market was positive. On BSE, 1,211 shares rose and 880 shares fell. A total of 138 shares were unchanged. The BSE Mid-Cap index was currently up 0.32%. The BSE Small-Cap index was currently up 0.43%. Both these indices underperformed the Sensex.
In overseas stock markets, Asian stocks witnessed a mixed trend. Energy and materials shares sector stocks led gains in US stocks yesterday, 25 May 2016, following a jump in crude oil prices triggered by a weekly report showing a decline in US crude inventories.
Metal shares were mixed. Jindal Steel & Power (up 1.93%), NMDC (up 0.83%), Bhushan Steel (up 0.71%), JSW Steel (up 0.67%), Vedanta (up 0.55%) and Steel Authority of India (up 0.50%), edged higher. Hindustan Zinc (down 0.21%), Hindustan Copper (down 0.22%), Hindalco Industries (down 0.56%) and National Aluminium Company (down 2.9%), edged lower.
Meanwhile, copper price edged higher in the global commodities markets. High Grade Copper for July 2016 delivery was currently up 0.43% at $2.1105 per pound on the COMEX.
Tata Steel was down 0.72% at Rs 322. The company reported consolidated net loss of Rs 3213.76 crore in Q4 March 2016, lower than net loss of Rs 5674.29 crore in Q4 March 2015. Tata Steel's total income fell 12.33% to Rs 29636.69 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 25 May 2016.
There was a drop in realisations from steel sales across the group as steel prices slid to 10-year lows. However, despite these challenges, the consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) increased in Q4 March 2016 on the back of higher deliveries and better operating margins in India, cost benefits from European restructuring and improved performance of the South East Asia operations. The company continued to divest its non-core assets and raised Rs 4478 crore through monetisation of same.
Given the challenging situation faced in Europe, the company has taken several steps to restructure the European operations. Tata Steel UK signed an agreement with Greybull Capital to sell its Long Products Europe business. The deal will be completed once a number of outstanding conditions have been resolved, including transfer of contracts, certain Government approvals and the satisfactory completion of financing arrangements. The Tata Steel Europe board under the advise of the Tata Steel board is actively reviewing all options for the Tata Steel UK Business including a potential sale of the business.
Tata Steel announced the start of commercial production at the 3 million tonnes per annum (mtpa) Kalinganagar steel plant. The stabilisation process is currently underway. The facility will produce flat steel for high end applications enabling the company to expand its product portfolio in the ship building, defence equipment, energy & power, infrastructure, and aviation sectors. It will also consolidate Tata Steel's leadership position in the domestic automotive segment.
Pharmaceutical shares were mixed. Piramal Enterprises (down 2.91%), Sun Pharmaceutical Industries (down 1.23%), Divi's Laboratories (down 0.46%), Alkem Laboratories (down 0.42%), Cadila Healthcare (down 0.41%), Aurobindo Pharma (down 0.22%) and Cipla (down 0.15%), edged lower. Lupin (up 0.12%), IPCA Laboratories (up 0.33%), Glenmark Pharmaceuticals (up 0.62%), Wockhardt (up 0.78%), Dr Reddy's Laboratories (up 1.61%), GlaxoSmithKline Pharmaceuticals (up 1.89%) and Strides Shasun (up 2.30%), edged higher.
L&T spurted after the company's management said in a conference call held after the announcement of the company's Q4 March 2016 results yesterday, 25 May 2016, that it expects L&T's order inflow to rise 15% in the year ending 31 March 2017 (FY 2017). The stock jumped 10.06% to Rs 1,421.20. The stock hit a high of Rs 1,436.45 and a low of Rs 1389.75 so far during the day. L&T expects 12-15% growth in revenue in the year ending 31 March 2017 (FY 2017). L&T reported 18.55% rise in consolidated net profit to Rs 2453.64 crore on 17.88% rise in total income to Rs 33375.26 crore in Q4 March 2016 over Q4 March 2015. The result was announced after market hours yesterday, 25 May 2016.
L&T said that the order inflow during Q4 March 2016 was Rs 43334 crore of which one third constituted international orders. The order intake of L&T's infrastructure division rose just 3% at Rs 29103 crore in Q4 March 2016 over Q4 March 2015. The order intake of its hydrocarbon divsion rose sharply to Rs 4963 crore in Q4 March 2016 from Rs 699 crore in Q4 March 2015.
L&T's order book stood at Rs 249949 crore as on 31 March 2016, higher by 7% on year-on-year basis. International order book constituted 28% of the total order book.
L&T's management continues its emphasis on operational efficiencies, faster execution of projects on hand and reduced working capital levels. Given its track record, diversified portfolio and healthy order book, the company is focusing on profitable execution of the existing order book and is confident of its growth in the near to medium term by leveraging its presence in both the domestic and international segments.
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