Key benchmark indices logged modest gains after a volatile session of trade supported by positive global stocks. The barometer index, the S&P BSE Sensex, rose 106.50 points or 0.29% at 36,825.10, as per the provisional closing data. The Nifty 50 index rose 49.55 points or 0.45% at 11,134.30, as per the provisional closing data.
Stocks drifted higher in early trade, with the Sensex scaling record high. Indices held onto gains in morning trade. Key benchmark indices held firm in mid-morning trade. Indices trimmed gains in early afternoon trade as profit booking emerged at higher levels. Stocks turned volatile in afternoon trade. Key benchmark indices once again regained strength in mid-afternoon trade. Indices held firm in late trade.
The S&P BSE Mid-Cap index rose 1.77%. The S&P BSE Small-Cap index rose 2.21%. Both these indices outperformed the Sensex.
The market breadth, indicating the overall health of the market, was strong. On the BSE, 1957 shares rose and 679 shares fell. A total of 141 shares were unchanged.
ACC jumped 13.66% after the company issued positive outlook for cement demand. Consolidated net profit rose 0.77% to Rs 328.74 crore on 13.75% rise in net sales to Rs 3767.90 crore in Q2 June 2018 over Q2 June 2017. The result was announced after market hours yesterday, 23 July 2018.
Neeraj Akhoury, managing director & CEO, said that the company has achieved robust scale in Q2 2018, growing both cement and the ready mix concrete business by 7% and 22% respectively, as well as delivering a consolidated EBITDA growth of 5% YoY. On the other hand, cost headwinds continue, driven by the rise in input material and logistics costs. The positive impacts of the company's step change in cost management are favorably impacting its financial results. ACC remains optimistic in its capacity to develop new revenue lines as well as strengthen its performance in both the cement and ready mix business.
In its outlook, ACC said that the economic upswing in 2018 supported by buoyant consumption, a normal monsoon and uptick in rural demand is expected to benefit the construction sector. The company expects cement demand to be positive, driven by the 'Housing for All ' programme, sustained infrastructure spends and rural housing. ACC anticipates that cost pressures will remain, largely due to a rise in fuel costs as well other input material costs. ACC will continue to focus on improving efficiencies.
M&M rose 1.24%. The company today unveiled the FURIO, its brand new range of Intermediate Commercial Vehicles (ICVs). FURIO marks the company's entry into the ICV segment and is set to make the company a full range commercial vehicle player. The announcement was made during market hours today, 24 July 2018.
Idea Cellular surged 6.74%. As per reports, Vodafone and Idea Cellular have deposited Rs 7200 crore in cash and bank guarantee with telecom department for one-time spectrum charge and spectrum liberalisation charges. With the financial dues out of the way, the merger of Vodafone and Idea Cellular is likely to be approved in the next few days, the report added.
L&T Technology Services surged 10.48% after consolidated net profit rose 102.14% to Rs 198.10 crore on 40.07% increase in net sales to Rs 1152.20 crore in Q1 June 2018 over Q1 June 2017. The result was announced after market hours yesterday, 23 July 2018.
Overseas, European market traded higher, bouncing back from the weaker trade seen in the previous session.
Asian stocks rose led by Chinese shares as the nation's assets came into focus after the government unveiled a package of measures to boost domestic demand amid simmering trade tensions that threaten to worsen an economic slowdown. In US, the S&P 500 and the Nasdaq close slightly higher Monday thanks to strong bank and technology shares but the Dow extended its losing streak to a third session.
Meanwhile, finance ministers and central bankers from the Group of 20 reportedly made little progress on trade tensions at a weekend meeting in Buenos Aires, as both US and European Union officials held their ground. Investors have been worried that spats between the US and other major trading partners could explode into a full-scale trade war, damaging economic growth and investments.
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