Domestic shares ended with strong gains on Wednesday, tracking firmness in other Asian markets after the US announced a delay in the implementation of tariffs on some Chinese goods. The Nifty closed a tad above 11,000-mark. Gains were supported by strength in banks and metals shares. Pharma stocks witnessed selling pressure.
The barometer index, the S&P BSE Sensex, rose 329.77 points or 0.89% to 37,287.93, as per the provisional closing data. The Nifty 50 index rose 103.55 points or 0.95% to 11,029.85, as per the provisional closing data.
The broader market was upbeat. The S&P BSE Mid-Cap index rose 0.85%. The S&P BSE Small-Cap index rose 0.41%.
The market breadth was positive. On the BSE, 1293 shares rose and 1151 shares fell. A total of 144 shares were unchanged.
On the macro front, the Wholesale Price Index (WPI)-based inflation, base year 2011-12, dipped to a 25-month low of 1.1% in July 2019 from 2.0% in June 2019. The inflation for all three major sub-group - primary articles, fuel and power and manufactured products groups have declined contributing to the fall in overall WPI inflation in July 2019. The core inflation (manufactured products excluding foods products) also plunged to 33-months low of 0.2% in July 2019.
The all-India general Consumer Price Index (CPI) inflation was steady at 3.15% in July 2019 (new base 2012=100), compared with 3.18% in June 2019. The core CPI inflation rose to 4.24% in July 2019 compared with 4.13% in June 2019.
The drop in retail and wholesale inflation fueled expectations of further rate cuts from the Reserve Bank of India. On 7 August, RBI slashed the repo rate for the fourth time in a row by 35 bps, and also lowered its growth forecast for the year by 10 bps to 6.9%.
Vedanta (up 5.01%), Bajaj Finserv (up 5%), UPL (up 4.74%) and Tata Steel (up 4.92%) made the biggest move and supported the uptrend rally.
Sun Pharmaceutical Industries (down 5.25%), Indiabulls Housing Finance (down 4.73%), Wipro (down 2.88%) and Dr. Reddy's Laboratories (down 1.78%) declined.
ONGC declined 1.75% to Rs 126.05. The oil and gas major's consolidated net profit fell 19.39% to Rs 6,693.61 crore on 0.77% decline in net sales to Rs 109,514.82 crore in Q1 June 2019 over Q1 June 2018. On a standalone basis, ONGC's net profit fell 3.9% to Rs 5,904.25 crore on 2.4% decline in net sales to Rs 26,554.74 crore in Q1 June 2019 over Q1 June 2018. The crude oil price realization fell 7.3% to $66.30 per barrel in Q1 June 2019 over Q1 June 2018. The crude oil price realization (joint venture) fell 1.8% to $66.78 per barrel in Q1 June 2019 over Q1 June 2018. The stock
State-run coal miner Coal India was down 1.47% to Rs 200.75. The company reported its quarterly earnings after market hours yesterday. The company's consolidated net profit rose 22.27% to Rs 4629.67 crore on 3.64% rise in net sales to Rs 23223 crore in Q1 June 2019 over Q1 June 2018.
Iron ore miner NMDC gained 3.71% to Rs 104.9 after the company reported its Q1 result on after market hours yesterday. On a consolidated basis, NMDC's net profit rose 21.1% to Rs 1171.56 crore on a 34.8% rise in the net sales to Rs 3263.74 crore in Q1 June 2019 over Q1 June 2018. Consolidated EBITDA rose 28% to Rs 1989 crore in Q1 June 2019 over Q1 June 2018. However, EBITDA margin contracted to 61% from 64%.
Apollo Hospital Enterprise gained 3.03% to Rs 1362 after the company announced its Q1 June 2019. The stock hit a 52-week high of Rs 1444 today, 14 August 2019. The company's net profit rose 68.5% to Rs 57.20 crore on a 16.4% rise in the net sales to Rs 2571.89 crore in Q1 June 2019 over Q1 June 2018.
United Breweries, the maker of Kingfisher beer in India, fell 0.27% at Rs 1,356.9 after the company reported poor Q1 result. The company's profit dropped 25.9% to Rs 164.54 crore on a 13.2% rise in net sales to Rs 4707.2 crore in Q1 June 2019 over Q1 June 2018.
Power Finance Corporation of India rose 1.06% to Rs 105.30 after consolidated net profit rose 0.8% to Rs 2185 crore on 9.5% increase in total income to Rs 14,619.11 crore in Q1 June 2019 over Q1 June 2018.
Kaveri Seed Company surged 7.74% to Rs 480.4 after company's consolidated net profit rose 9.6% to Rs 230.24 crore on 8.4% rise in net sales 627.58 crore in Q1 June 2019 over Q1 June 2018.
Nalco declined 2.56% after consolidated net profit dropped 84.4% to Rs 97.87 crore on a 29.9% decline in net sales to Rs 2084.08 crore in the recently concluded quarter ended 30 June 2019 over its previous corresponding period. The result was announced by the company after close of trading hours yesterday, 13 August 2019.
Hindustan Aeronautics gained 2.95% to Rs 654.5. The company's consolidated net profit rose 33.4% to Rs 463.11 crore on a 17% increase in net sales to Rs 3,291.44 crore in Q1 June 2019 compared with Q1 June 2018. The result was announced after market hours yesterday, 13 August 2019.
Deepak Fertilisers & Petrochemicals Corporation declined 1.8% to Rs 84.55. The chemical company's consolidated net profit fell 71.25% to Rs 10.70 crore on 49.59% decline in net sales to Rs 1122.20 crore in Q1 June 2019 over Q1 June 2018
NBFC major Edelweiss Financial Services rose 0.49% to Rs 143.1. The company announced it quarterly earnings during market hours, today. The company's consolidated net profit dropped 50% to Rs 132.02 crore on 2.8% rise in total income to Rs 2545.93 crore in Q1 June 2019 over Q1 June 2018. In a separate announcement, the financial services conglomerates announced that US-based Kora Management will be investing up to approximately Rs 875 crores in the Edelweiss Group. Kora Management has committed to invest approximately Rs 525 crore in its advisory business, Edelweiss Global Investment Advisors (EGIA) subject to structuring-related milestones.
Overseas, European stocks were trading lower amid weak German GDP data. Germany's GDP, or gross domestic product, fell by 0.1% between April and June, raising fears of a recession for Europe's largest economy.
Asian shares rose across the board on Wednesday, as the US announced a delay in the implementation of tariffs on some Chinese goods.
The People's Bank of China set its official midpoint reference rate for the yuan at 7.0312 per dollar on Wednesday.
China's industrial output rose 4.8% in July as compared to a year earlier, official data showed. Retail sales growth rose 7.6% in July from a year earlier.
US stocks soared on Tuesday after the US decided to delay tariffs on certain Chinese goods while outright removing some items from the tariff list.
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