Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. The 50-unit CNX Nifty hit its highest level in almost two weeks. The barometer index, the S&P BSE Sensex, was up 133.06 points or 0.52%, up about 70 points from the day's low and off about 5 points from the day's high. The market breadth indicating the overall health of the market was strong. Gains in Asian stocks boosted sentiment on the domestic bourses.
Telecom stocks rose after the Telecom Regulatory Authority of India (TRAI) said on Monday, 21 July 2014, in its recommendations on the guidelines on sharing of spectrum by telecom operators that all access spectrum will be shareable provided that both the licensees are having spectrum in the same band. Idea Cellular reported strong Q1 results.
At 10:20 IST, the S&P BSE Sensex was up 133.06 points or 0.52% to 25,849.13. The index surged 140.24 points at the day's high of 25,855.41 in morning trade. The index rose 65.22 points at the day's low of 25,780.39 in early trade.
The CNX Nifty was up 41.10 points or 0.53% to 7,725.30. The index hit a high of 7,726.45 in intraday trade, its highest level since 10 July 2014. The index hit a low of 7,704.80 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 1,324 shares rose and 622 shares fell. A total of 33 shares were unchanged.
The BSE Mid-Cap index was up 62.18 points or 0.67% at 9,362.60. The BSE Small-Cap index was up 74.04 points or 0.72% at 10,343.63. Both these indices outperformed the Sensex.
Hindalco Industries (up 1.36%), Sun Pharmaceutical Industries (up 1.22%) and ITC (up 0.87%) edged higher from the Sensex pack.
Telecom stocks rose after the Telecom Regulatory Authority of India (TRAI) said on Monday, 21 July 2014, in its recommendations on the guidelines on sharing of spectrum by telecom operators that all access spectrum will be shareable provided that both the licensees are having spectrum in the same band. Bharti Airtel (up 5.4%), Tata Teleservices (Maharashtra) (up 1.19%) and Reliance Communications (up 1.96%) gained. MTNL declined 0.14%.
If any one of the two licensees sharing spectrum, has administratively assigned spectrum in that band, then after sharing, they will be permitted to provide only those services which can be provided through administratively held spectrum, TRAI said in its guidelines on spectrum sharing. If both the licensees are sharing that spectrum which has either been assigned through an auction in the year 2010 or afterwards, or on which the licensee has already paid the prescribed market value to the government, they can offer services using all those technologies viz. GSM, CDMA, WCDMA, LTE etc, which they can independently provide through their own spectrum holding, TRAI said.
Considering the fact that spectrum sharing results in better spectral efficiency, a portion of additional capacity created needs to be counted for the purpose of applying the prescribed spectrum caps of 25% of total spectrum assigned and 50% in a band. For the limited purpose of applying the prescribed market caps, 50% of the spectrum held by the other licence in the band being shared shall be counted as the additional spectrum being held by the licensee, TRAI said.
Considering the fact that spectrum sharing results in additional quantity of spectrum with both the licensees to serve higher number of consumers, the spectrum usage charge (SUC) rate of each of the licensees post-sharing shall increase by 0.5% of adjusted gross revenue (AGR), according the TRAI guidelines on spectrum sharing. TRAI has said that leasing of spectrum will not be allowed.
Separately, Telecom Regulatory Authority of India (TRAI) on Monday, 21 July 2014, it its response to the Department of Telecommunications (DoT) on additional entry fee, performance bank guarantee (PBG) and financial bank guarantee (FBG) to be charged from the existing Mobile Number Portability licensees for enhancement of scope of their licence, recommended no change in the entry fee for MNP service providers for implementing Full Mobile Number Portability and that the performance bank guarantee and financial bank guarantee for the MNP service providers should be continued as per the existing licence conditions.
Idea Cellular rose 2.93% to Rs 144.35 after the company reported strong Q1 results. The stock hit high of Rs 146.60 and low of Rs 142.65 so far during the day. The company after market hours on Monday, 21 July 2014 reported 57.37% rise in consolidated net profit to Rs 728.20 crore on 15.63% rise in total revenue to Rs 7560.99 crore in Q1 June 2014 over Q1 June 2013. Earnings before interest, taxation, depreciation and amortization (EBITDA) margin improved to 33.2% in Q1 June 2014 from 31.8% in Q1 June 2013.
Idea Cellular reported 23.47% rise in consolidated net profit to Rs 728.20 crore on 7.34% rise in total revenue to Rs 7560.99 crore in Q1 June 2014 over Q4 March 2014. Idea Cellular's EBITDA margin improved to 33.2% in Q1 June 2014 from 31.8% in Q1 June 2014 and from 31.7% in Q4 March 2014.
With additional capital infusion of Rs 3000 crore from the qualified institutional placement of equity shares in June 2014 and cash profit of Rs 2023 crore in Q1 June 2014, the company has reduced its net debt by Rs 5208.70 crore. The net debt to annualized EBITDA ratio now stands at 1.54, providing the company sufficient headroom to participate in the forthcoming spectrum auction.
Idea Cellular carried 165.2 billion minutes on its network, registering 12.2% growth in Q1 June 2014 over Q1 June 2013 and 32.5 billion Megabytes of Mobile Data on its 2G+3G platform, registering growth of 136% in Q1 June 2014 over Q1 June 2013.
The higher voice rate realization and jump in Data contribution to 11.5% of service revenue helped improve 'Average Realisation per Minute' (ARPM) by 1.5 paisa from 43.6p in Q4 March 2014 to 45.1p in Q1 June 2014. The Value Added Services (VAS) contribution has improved sharply to 17.8% of overall service revenue, Idea Cellular said.
Brand Idea continued its subscriber growth momentum with 3.2 million net new customer additions, now servicing 139 million quality base as 'Average Revenue Per User' (ARPU) improved to Rs 181 in Q1 June 2014 from Rs 173 in Q4 March FY14 and MoU/Subscriber increased to 401 minute in Q1 June 2014 from 397 minute in Q4 March 2014.
Average Realisation per MB (ARMB) data rate improvement by 1 paisa to 26.3p in Q1 June 2014 from 25.3p in Q4 March 2014.
The strong consumer demand & brand affinity, expanding network footprint & spectrum portfolio and steady cash flows from operations reaffirms Idea ability to deliver consistent, competitive, responsible and profitable growth. The company is well geared to meet all volatile, uncertain, complex and ambiguous developments and remain on course of its mission to improve its market standing both in Mobile voice and data business, Idea Cellular said.
Exide Industries jumped 5.57% after the company reported 16.68% rise in net profit to Rs 185.30 crore on 17.41% rise in net sales to Rs 1909.61 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Monday, 21 July 2014.
Hitachi Home & Life Solutions (India) jumped 5.73% after net profit surged 202.3% to Rs 43.02 crore on 27.1% increase in net sales to Rs 595.94 crore in Q1 June 2014 over Q1 June 2013. The result was announced after market hours on Monday, 21 July 2014.
Key benchmark indices surged in early trade on firm Asian stocks. Key benchmark indices extended initial gains and hit fresh intraday high in morning trade. The 50-unit CNX Nifty hit its highest level in almost two weeks.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 60.2225, compared with its close of 60.295 on Monday, 21 July 2014.
Asian stocks rose today, 22 July 2014, as investors shrugged off international tension after the downing of a passenger jet in Ukraine last week and fighting between Israel and Palestinian militants in Gaza Strip. Key benchmark indices in Hong Kong, South Korea, China, Indonesia, Japan, and Taiwan rose by 0.07% to 1.2%. Indonesia's Jakarta Composite fell 0.26%.
Trading in US index futures indicated that the Dow could gain 21 points at the opening bell on Tuesday, 22 July 2014. US stocks declined on Monday, 21 July 2014, as investors hit the pause button after Friday's sharp gains.
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