A bout of volatility was seen in early trade as the key benchmark indices once again drifted lower after reversing initial decline to briefly turn positive. The barometer index, the S&P BSE Sensex was currently down 42.08 points or 0.14% at 29,528.96. The market breadth indicating the overall health of the market was positive.
Asian stocks edged lower today, 28 January 2015 as US earnings and durable-goods orders disappointed investors.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 953.50 crore yesterday, 27 January 2015, as per provisional data.
Indian stocks may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month January 2015 series to February 2015 series. The near month January 2015 derivatives contract expire on Thursday, 29 January 2015.
At 9:25 IST, the S&P BSE Sensex was down 42.08 points or 0.14% at 29,528.96. The index fell 58.56 points at the day's low of 29,512.48 in early trade. The index rose 10.48 points at the day's high of 29,581.52 in early trade.
The CNX Nifty was down 13.80 points or 0.15% at 8,896.70. The index hit a high of 8,909.55 in intraday trade. The index hit a low of 8,893.80 in intraday trade.
The market breadth indicating the overall health of the market was positive. On BSE, 701 shares gained and 677 shares fell. A total of 56 shares were unchanged.
The BSE Mid-Cap index was up 28.27 points or 0.26% at 10,808.74, outperforming the Sensex. The BSE Small-Cap index was off 1.94 points or 0.02% at 11,422.54. The fall in the index was lower than Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 181 crore by 09:20 IST.
Bharti Airtel shed 0.67%. Bharti Airtel said before market hours today, 28 January 2015 that the company has commissioned Nokia Networks to expand its 4G presence to six new circles using Nokia Networks' radio network. The deal marks India's first FDD-LTE deployment on 1800 MHz that will witness the launch of super-fast mobile broadband in 6 circles. Nokia Networks, already a supplier of Bharti Airtel's TD-LTE network, will also deploy TD-LTE on the 2300 MHz in 2 other circles.
Tata Motors declined 1.29%. Tata Motors after market hours yesterday, 27 January 2015, announced that the company's board of directors has decided to seek approval of the shareholders through a postal ballot for raising upto Rs 7500 crore through a rights issue of ordinary shares and 'A' ordinary shares having differential voting rights for meeting the company's growth plans as well as for reducing the debt. The quantum, pricing and timing of the issue will be decided at a later point in time, depending upon the market conditions post shareholders' and other approvals, Tata Motors said.
Yes Bank slipped 0.5%. Yes Bank after trading hours yesterday, 27 January 2015, announced that the bank has teamed up with the Overseas Private Investment Corporation (OPIC), the US government's development finance institution, by signing a memorandum of understanding to explore OPIC financing of up to $220 million to increase lending to micro, small and medium enterprises (MSMEs) in India. Specifically, $100 million of the financing would be used to support either Micro-SMEs or SMEs in underserved rural and urban markets, Yes Bank and OPIC said in a joint statement. US-based lender Wells Fargo Bank, N.A., will act as sponsor and co-lender to the project.
Idea Cellular shed 0.15%. On a consolidated basis, Idea Cellular's net profit rose 64% to Rs 767.06 crore on 21.87% increase in total income to Rs 8150.09 crore in Q3 December 2014 over Q3 December 2013.
On a consolidated basis, Idea Cellular's net profit rose 1.48% to Rs 767.10 crore on 5.91% increase in total revenue to Rs 8017.50 crore in Q3 December 2014 over Q2 September 2014.
Consolidated EBITDA (earnings before interest taxes depreciation and amortization) rose 10.52% to Rs 2752.70 in Q3 December 2014 over Q2 September 2014.
EBITDA margins increased to 34.3% in Q3 December 2014 compared with 32.9% in Q2 September 2014.
In the calendar year (CY) 2014, Idea added 22.2 million subscribers (VLR net adds) as company's subscriber market share raced past 18.1% (TRAI November 2014 VLR Report). Inspite of huge 17% incremental new customer addition in year 2014, the customer mobile spend (ARPU) on Idea network increased by Rs 10 to Rs 179 (Q3 December 2014 over Q3 December 2013).
Idea continued its journey of strengthening its competitive market standing with Q2 September 2014 Revenue Market Share (RMS) at 17.2%, an increase of 1.4% compared to Q2 September 2013.
During the quarter, Idea carried 170.7 billion minutes on its network, registering 5.1% sequential quarterly growth and 46.1 billion Megabytes of Mobile data on its 2G+3G platform, at 16.9% quarterly expansion, with both lines of business delivering strong performance. The 'Value Added Service' (VAS) contribution has improved sharply to 23.1% of service revenue, an unprecedented gain of 7% in last one year.
Due to competitive pressures and increased contribution from new service areas, the Voice realisation remained under pressure and has fallen sequentially by 0.6 paisa to 35.6 paise per minute in Q3 December 2014. However, 18.4% quarterly jump in Mobile Data revenue, contributing 15.7% to service revenue, helped Idea improve its 'ARPM' at 46.3p in Q3 December 2014 (vs 45.9 paise in Q2 September 2014).
As the technology cycle shortens, the company on prudent basis reviewed and reduced the estimated useful life of core network equipments from present 10 to 9 years. Consequently, this quarter the depreciation charge has risen by Rs 262.50 crore.
On a standalone basis, the strong cash profit of Rs 2028.60 crore in Q3 December 2014 (year-on-year growth of 29.5%) has helped company reduce net debt to Rs 11089.10 crore. The net debt to annualised EBITDA ratio now stands at 1.12, lowest in the industry, providing company sufficient head room to participate in the forthcoming license renewal spectrum auction.
The mobile data subscriber base on 2G+3G platform has risen by 8.6 million in CY 2014 to 34.2 million. This quarter Idea held on its data rates (bended 2G+3G) - 'Average Realisation per MB' (ARMB) at 26.9 paise (vs 26.5 paise in Q2 September 2014). The blended Data ARPU (2G+3G) has improved by Rs 35 in CY 2014 to Rs 126 as 'Usages per Data Subscriber' has grown to 470 MB per user in Q3 December 2014 from 309 MB in Q3 December 2013. The 3G (Voice+Data) customers have grown steadily this quarter to 16.1 million but still represents only 10.7% of Idea's total subscriber base. Idea continued to expand its 3G footprint with incremental investment of 7,840 3G sites in CY 2014 taking the overall 3G sites count to 27,744.
As mobility market services expand, Indian Telecom business offers exciting growth opportunities in Mobile broadband & rural voice telephony. Brand Idea with growing consumer affinity, strong cash flows, expanding 2G & 3G network footprint and competitive spectrum profile, reaffirms its ability to overcome current short term uncertainties, emerge stronger and consolidate its market position to tap emerging telecom and mobile banking opportunities.
Titan Company rose 1.65%. The company's net profit rose 15.20% to Rs 190.73 crore on 8.59% increase in total income to Rs 2934.03 crore in Q3 December 2014 over Q3 December 2013.
The income from watches was Rs 442.63 crore in Q3 December 2014, marginally lower than Q3 December 2013. On the other hand, jewellery business recorded a growth of 11.2% in Q3 December 2014 over Q3 December 2013.
Tanishq had an income of Rs 2347.39 crore this year in Q3 as compared to Rs 2110.70 crore last year. For the nine-month ended December 2014, the jewellery business recorded a growth of 17.4%. Other businesses of the company comprising Precision Engineering, a B2B business, the Eyewear business and accessories grew by 14.8% in Q3 December 2014. The combined income of these businesses in Q3 December 2014 was Rs 133.67 crore as compared to Rs 116.42 crore in Q3 December 2013.
The Titan Company (TCL) retail chain is 1172 stores strong, as on 31 December 2014 with the retail area crossing 1.5 million square feet nationally for all its brands. A total of 151 stores were added by TCL brands in the nine month period till December 2014.
Bhaskar Bhat, Managing Director of the company stated that "Titan Company, with a large portfolio of strong brands, operating in multiple industries, grew by over 9% in the third quarter. This period, which is a festival quarter, faced heightened activity from e-commerce players, participating in this gifting season. Going forward, the market sentiment is looking good, with the fiscal budget from the new Government coming up, drop in inflation and positive global factors like the slump in oil prices. The company is gearing up for the last quarter with launch of new products and advertising campaigns that are lined up, including activation by some of the brands."
Amara Raja Batteries dropped 4.74%. The company's net profit rose 7.71% to Rs 102.34 crore on 23.09% increase in total income to Rs 1071.15 crore in Q3 December 2014 over Q3 December 2013.
Finance Minister Arun Jaitley yesterday, 27 January 2015, said that there is huge curiosity and interest in India especially among domestic and foreign investors. The Finance Minister said that in order to make best use of this opportunity, India has to address two major concerns i.e. quick decision making & stability in policy matters and reforms in tax structure and administration. The Finance Minister made these comments in his speech at the Investiture Ceremony to honour the officers of Central Board of Excise and Customs (CBEC) for their excellent performance and International Customs Day function organised by CBEC. Jaitley said that that the government's revenue collection which was affected due to low manufacturing in the last 2-3 years is turning around and that the government hopes to meet its fiscal targets. Speaking on the occasion, Minister of State for Finance Jayant Sinha said that there is need for more transparency in tax administration and need to build data base for authentic and valid information.
Asian stocks edged lower today, 28 January 2015 as US earnings and durable-goods orders disappointed investors. Key benchmark indices in Singapore, Taiwan, Indonesia, Japan and China fell by 0.02% to 0.83%. Key benchmark indices in Hong Kong and South Korea rose by 0.04% to 0.28%.
US stock markets fell heavily yesterday, 27 January 2015 following a string of disappointing financial results from big bellwether companies, including Procter & Gamble, Caterpillar, Microsoft and Pfizer.
A two-day meeting of the Federal Open Market Committee (FOMC) concludes today, 28 January 2015. In its last meet in December 2014, FOMC had based on its assessment, judged that it can be patient in beginning to normalize the stance of monetary policy.
In economic data, US durable goods, which economists treat as a proxy for business investment, dropped 3.4% in December 2014 following a 2.1% fall in November 2014.
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