Key benchmark indices edged higher in early trade. At 9:19 IST, the barometer index, the S&P BSE Sensex was up 83.93 points or 0.3% at 28,060.45. The Nifty 50 index was currently up 27.95 points or 0.33% at 8,618.60. The Sensex crossed the psychologically important 28,000 level. It had closed below that level yesterday, 26 July 2016.
In overseas stock markets, Asian stocks witnessed a mixed trend. In mainland China, the Shanghai Composite was currently down 1.12%. In Hong Kong, the Hang Seng was currently down 0.19%. In Japan, the Nikkei 225 Average was currently up 1.39%. Investors are hoping for further easing of monetary policy from the Bank of Japan (BOJ) after the conclusion of a two-day monetary policy meeting on 28-29 July 2016. Strength in the yen against the dollar post last month's Brexit vote and data showing a slowdown in the Japanese economy have triggered expectations of further easing of monetary policy from the BOJ. A stronger yen hurts the competitiveness of Japanese exporters.
US stocks closed marginally higher yesterday, 26 July 2016, amid major earnings reports and ahead of the central bank meeting. The Federal Open Market Committee (FOMC) is widely expected to keep the benchmark fed funds rates unchanged after the conclusion of two-day monetary policy later in the global day today, 27 July 2016. Market participant will scrutinize the Fed statement for clues on policy direction. The Fed has kept the benchmark fed funds rate unchanged after raising it for the first time in nearly a decade in December 2015.
Closer home, the market breadth indicating the overall health of the market was strong. On BSE, 854 shares rose and 272 shares declined. A total of 40 shares were unchanged. The BSE Mid-Cap index was currently up 0.66%. The BSE Small-Cap index was currently up 0.59%. Both these indices outperformed the Sensex.
Cement major Ambuja Cements rose 2.02% after net profit rose 77% to Rs 400 crore on 1.9% growth in net sales to Rs 2541 crore in Q2 June 2016 over Q2 June 2015. The result was announced after market hours yesterday, 26 July 2016.
The company's operating EBITDA (earnings before interest, taxation, depreciation and amortization) surged 56.5% to Rs 601 crore in Q2 June 2016 over Q2 June 2015.
On future business outlook, Ambuja Cements said that post monsoon construction activities are likely to pick up. The medium to long term outlook for cement demand remains positive considering above normal monsoon forecast this year and government's focus on housing, concrete roads, smart cities and infrastructure development, the company said. Ambuja said it would continue to focus on improving operational efficiencies.
Zee Entertainment Enterprises' (Zee) rose 3.36% after consolidated net profit rose 21.76% to Rs 216.96 crore on 14.74% increase in total income to Rs 1531.80 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 26 July 2016.
Advertising revenues rose 19.2% to Rs 912 crore in Q1 June 2016 over Q1 June 2015. During the quarter, domestic advertising revenues stood at Rs 841.50 crore while international advertising revenues stood at Rs 70.50 crore. Subscription revenues rose 14.2% to Rs 528.20 crore in Q1 June 2016 over Q1 June 2015. During the quarter, domestic subscription revenues stood at Rs 417.90 crore while international subscription revenues stood at Rs 110.30 crore.
Consolidated operating revenues rose 18.5% to Rs 1571.60 crore in Q1 June 2016 over Q1 June 2015.
Earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 44.1% to Rs 453.20 crore in Q1 June 2016 over Q1 June 2015. EBITDA margin rose sharply to 28.83% in Q1 June 2016 from 23.71% in Q1 June 2015.
The company has adopted Indian Accounting Standards (Ind-AS) reporting methodology for reporting its financials commencing Q1 June 2016. Like-to-like financials for previous quarters (Q1 June 2015) have been restated accordingly.
Tata Steel edged higher after the company announced good production numbers in Q1 June 2016. The stock was up 0.37%. Tata Steel's hot metal production rose 16.5% to 3.01 million tonnes in Q1 June 2016 over Q1 June 2015. Crude steel production rose 7.6% to 2.52 million tonnes in Q1 June 2016 over Q1 June 2015. Saleable steel production was up 4.8% to 2.34 million tonnes in Q1 June 2016 over Q1 June 2015. Sales were up 0.1% to 2.15 million tonnes in Q1 June 2016 over Q1 June 2015. The company announced the quarterly sales volume data after market hours yesterday, 26 July 2016.
Tata Steel before market hours today, 27 July 2016 announced that the Quebec government has awarded a financial contribution of C$175 million to Tata Steel Minerals Canada to support the achievements at Schefferville of a direct shipping iron ore project (DSO project) in which Tata Steel Group has invested an amount in excess of C$1 billion. The financial contribution includes equity stake of $125 million through the Capital Mining Hydrocarbons Fund and a loan of $50 million from Investissement Quebec, acting as an agent of the government.
Bharti Infratel was up 0.61% after consolidated net profit rose 71% to Rs 756 crore on 7% growth in revenue to Rs 3211 crore in Q1 June 2016 over Q1 June 2015. Earnings before interest, taxation, depreciation and amortization (EBITDA) rose 9% to Rs 1408 crore in Q1 June 2016 over Q1 June 2015. The result was announced after market hours yesterday, 26 July 2016.
Bharti Infratel's Chairman Akhil Gupta said that the management is seeing some early signs of implementation of the government's initiative on smart city which it believes would provide opportunities to infrastructure companies like Bharti Infratel. Bharti Infratel and Indus Towers being the leaders are fully geared to serve its customers' demand and to look at the new opportunities coming up on the infrastructure front, Gupta said.
During the quarter, the company has taken approval of shareholders on the buyback of its equity shares for an issue size of Rs 2000 crore and is in the midst of completing the buyback process.
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