Key benchmark indices edged higher in early trade. The market breadth indicating the overall health of the market was strong. The barometer index, the S&P BSE Sensex, was currently up 235.15 points or 0.85% at 27,940.50.
Foreign portfolio investors sold shares worth a net Rs 170.68 crore yesterday, 30 July 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 499.65 crore yesterday, 30 July 2015, as per provisional data released by the stock exchanges.
In overseas markets, Asian shares were mixed. It was a fairly flat finish to overnight trading in US market, with some mediocre corporate results overshadowing news that the US economy gained momentum in the second quarter.
At 9:23 IST, the S&P BSE Sensex was up 235.15 points or 0.85% at 27,940.50. The index rose 260.17 points at the day's high of 27,965.52 at the onset of trading session, its highest level since 27 July 2015. The index gained 109.16 points at the day's low of 27,814.51 at the onset of trading session.
The CNX Nifty was up 35.55 points or 0.42% at 8,457.35. The index hit a high of 8,466.60 in intraday trade, its highest level since 27 July 2015. The index hit a low of 8,448.00 in intraday trade.
The BSE Mid-Cap index was up 77.28 points or 0.69% at 11,235.68. The BSE Small-Cap index was up 74.50 points or 0.64% at 11,798.38. Both these indices underperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,024 shares rose and 293 shares fell. A total of 43 shares were unchanged.
Kotak Mahindra Bank's (KMBL) was down 2.93%. The bank's net profit fell 55.84% to Rs 189.78 crore on 70.65% growth in total income to Rs 4583.86 crore in Q1 June 2015 over Q1 June 2014. KMBL announced the first quarter results after market hours yesterday, 30 July 2015. The results for Q1 June 2015 include operations of erstwhile ING Vysya Bank which was merged with KMBL with effect from 1 April 2015. Hence, the results for Q1 June 2015 are not comparable with that of the corresponding period of the previous year.
KMBL said that the Q1 June 2015 results were hit adversely by significant provisions on merger of ING Vysya Bank with KMBL. KMBL made provisions of Rs 339 crore for retiral benefits of employees of erstwhile ING Vysya Bank amounting to Rs 339 crore. The bottom line during the quarter was also impacted by provisions and contingencies of Rs 305 crore of which a significant portion is from erstwhile ING Vysya Bank. KMBL also incurred integration cost of Rs 63 crore in Q1 June 2015, including stamp duty, related to the merger. KMBL made payment of additional interest on savings accounts of erstwhile ING Vysya Bank amounting to Rs 30 crore in view of the higher rate of 6% (for balance above Rs 1 lakh) offered to the customers as against 4% offered by ING Vysya Bank.
KMBL said in a statement that the management believes the merger benefits will flow in due course from both, revenue synergies as well as cost efficiencies, resulting from significant geographical and product complementarities, fuller customer segment coverage, economies of scale and improved productivity and efficiency.
On absolute basis, KMBL's gross non-performing assets (NPAs) stood at Rs 2421.77 crore as on 30 June 2015, compared with Rs 1237.23 crore as on 31 March 2015 and Rs 1079.02 crore as on 30 June 2014. The ratio of gross NPAs to gross advances stood at 2.31% as on 30 June 2015 as against 1.85% as on 31 March 2015 and 1.88% as on 30 June 2014. The ratio of net NPAs to net advances stood at 1.04% as on 30 June 2015 as against 0.92% as on 31 March 2015 and 0.98% as on 30 June 2014.
The bank's Capital Adequacy Ratio (CAR) as per Basel III norms stood at 16.36% as on 30 June 2015 as against 17.17% as on 31 March 2015 and 18.5% as on 30 June 2014.
Glenmark Pharmaceutical was up 2.82%. On consolidated basis, Glenmark Pharmaceutical's net profit rose 3.31% to Rs 190.93 crore on 13.6% growth in revenue excluding out-licensing income to Rs 1655.24 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 30 July 2015. Glenmark Pharmaceuticals received out-licensing income of Rs 29.90 crore in Q1 June 2014.
The company's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 5.03% to Rs 359.57 crore in Q1 June 2015 over Q1 June 2014.
Commenting on the company's Q1 performance, Glenn Saldanha, Chairman & MD of Glenmark Pharmaceuticals said that the company recorded good growth during the quarter for its India, US LatAm and Europe businesses. While the company continues to outperform in the Indian pharmaceuticals market, its US business also registered decent growth in the quarter aided by ANDA approvals for six products, Saldanha said. The company's LatAm business performed exceedingly with Brazil, Mexico and Venezuela recording good sales growth. Glenmark has also been making steady progress in its innovation pipeline as it persists with its relatively high investments on R&D to build both its novel as well as generics products pipeline, Saldanha said in a statement.
Exide Industries was down 3.04%. The company's net profit fell 16.24% to Rs 155.20 crore on 6.01% decline in total income to Rs 1802.63 crore in Q1 June 2015 over Q1 June 2014. The result was announced after market hours yesterday, 30 July 2015. Exide Industries' MD & CEO P K Kataky said that demand for both Automotive and OEM and Industrial battery, including demand for Home UPS, Power and Traction battery, remained subdued in Q1 June 2015. However, growth in Automotive and Motorcycle battery replacement sale was encouraging in this quarter, Kataky said. Technology upgradation and cost control remain important part of the company's strategy to improve the bottom-line, Kataky said.
Meanwhile, India's weather office, the India Meteorological Department (IMD), said in a weekly report issued yesterday, 30 July 2015, that the rainfall was above normal by 21% over the country as a whole during the period from 23 to 29 July 2015. A deep depression caused extremely heavy rainfall over Gujarat and south Rajasthan during the second half of the week. Region wise, the rainfall was 68% above the Long Period Average (LPA) in Central India, 33% above LPA in Northwest India, 50% below LPA in South Peninsula and 22% below LPA in East & Northeast India during the period from 23 to 29 July 2015.
As per IMD's extended range forecast till 19 August 2015, rainfall activity is likely to be normal to above normal over Central and Northwest India till 9 August 2015. Rainfall activity is likely to be normal to above normal over northeast and adjoining east India from 5 to 14 August 2015.
For the country as a whole, cumulative rainfall during the period from 1 to 29 July 2015 was 15% below LPA. Region wise, the rainfall was 46% below the LPA in South Peninsula, 16% below the LPA in East & Northeast India, 13% below the LPA in Central India and 5% above the LPA in Northwest India during the period 1 to 29 July 2015. July accounts for about 33% of precipitation during the June-September monsoon season and is critical for crops.
The IMD in its separate daily monsoon update issued yesterday, 30 July 2015, said that the southwest monsoon was vigorous over West Rajasthan and was active over Gangetic West Bengal and East Rajasthan during past 24 hours until 8:30 IST. For the country as a whole, cumulative rainfall during this year's monsoon season was 4% below the Long Period Average (LPA) until 30 July 2015. Region wise, the rainfall was 19% below the LPA in South Peninsula, 9% below the LPA in East & Northeast India, 2% below the LPA in Central India and 12% above the LPA in Northwest India until 30 July 2015.
The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.
Asian shares were mixed. Key benchmark indices in China, Singapore, Taiwan and South Korea were down by 0.39% to 1.34%. Key benchmark indices in Hong Kong, Indonesia and Japan were up 0.07% to 1.10%.
It was a fairly flat finish to overnight trading in US market, with some mediocre corporate results overshadowing news that the US economy gained momentum in the second quarter. Solid consumer spending offset a drag from weak business investment in the June quarter, resulting in the United States' gross domestic product (GDP) rising by an annualised rate of 2.3%. Media reports suggested that should strengthen the Federal Reserve's case to start raising interest rates this year, albeit at a gradual pace.
A separate report by the US Labor Department revealed fewer Americans than expected filed claims for jobless benefits last week. Applications for unemployment payments rose by 12,000 to 267,000 in the week up to 25 July 2015. The prior week's figure of 255,000 jobless claims marked a 40-year low.
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