A divergent trend was witnessed in key benchmark indices amid volatile session as traders rolled over positions in the futures & options (F&O) segment from the near month October 2016 series to November 2016 series. The near month October 2016 derivatives contracts expired today, 27 October 2016. The barometer index, the S&P BSE Sensex rose 47.38 points or 0.17% at 27,883.89, as per the provisional closing data. The Nifty 50 index shed 2.30 points or 0.03% at 8,612.95, as per the provisional closing data.
The Sensex rose 121.62 points or 0.43% at the day's high of 27,958.13 in late trade. The barometer index lost 170.91 points or 0.61% at the day's low of 27,665.60 in early afternoon trade, its lowest level since 18 October 2016. The Nifty gained 9.60 points or 0.11% at the day's high of 8,624.85 in late trade. The index lost 65 points or 0.75% at the day's low of 8,550.25 in early afternoon trade, its lowest level since 18 October 2016.
In overseas stock markets, European stocks edged lower in volatile trade. Data showed UK GDP grew 0.5% in Q3, beating forecasts. Asian stocks witnessed mixed trend amid a slew of earnings. Data showed that profit growth in China's industrial firms slowed in September from the previous month's rapid pace as several sectors showed weak activity, suggesting the world's second-biggest economy remains underpowered despite emerging signs of stability. Profits in September rose 7.7% to 577.1 billion yuan, slowing sharply from August's 19.5% jump, according to data released by the National Bureau of Statistics (NBS). US stocks edged lower yesterday, 26 October 2016 as health care companies fell and Apple pulled technology companies down.
Closer home, the market breadth indicating the overall health of the market was weak. On BSE, 1,602 shares fell and 1,064 shares rose. A total of 260 shares were unchanged. The BSE Mid-Cap index provisionally dropped 1.04%. The BSE Small-Cap index provisionally fell 0.77%. Both these indices underperformed the Sensex.
The total turnover on BSE amounted to Rs 3251.98 crore, lower than turnover of Rs 3597.50 crore registered during the previous trading session.
ONGC fell 0.02% after the company reported 6.27% rise in net profit to Rs 4974.92 crore on 9.76% decline in total income to Rs 19578.65 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 27 October 2016.
ONGC said that the board of directors of the company at a meeting held today, 27 October 2016 recommended 1:2 bonus issue. The board also approved Interim Dividend of Rs 4.50 per share for the year ending 31 March 2017 (FY 2017).
Hero MotoCorp declined 3.12% after the company reported Q2 results. The company's net profit rose 27.74% to Rs 1004.22 crore on 15.33% increase in total income to Rs 8601.10 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 26 October 2016. Earnings before interest, taxes, depreciation and amortization (EBITDA) margin improved to its highest-ever 16.2% in Q2 September 2016, as against 14.91% in Q2 September 2015 aided by softer commodities and cost control measures.
The company reported highest ever quarterly sales of 18.23 lakh units in Q2 September 2016, up 15.8% compared with 15.74 lakh units in Q2 September 2015.
Pawan Munjal, Chairman, Managing Director & Chief Executive Officer, Hero MotoCorp, said the highest-ever volume sales during the quarter is a reiteration of the overwhelming customer preference of the company's products. At the same time, the company has also delivered on its commitment of further strengthening its profitability by crossing the threshold Rs 1000 crore in net profit for the first time in a quarter. The domestic market has seen a revival in the past two quarters due to an above-average monsoon and positive consumer sentiment. The trend is expected to continue through the year and likely to result in double-digit growth for the industry. In the global markets, however, the industry continues to face headwinds due to volatile business environment driven by continued weakness in crude prices and sharp depreciation of local currencies.
Meanwhile, in a separate announcement, Hero MotoCorp said that its board of directors approved an investment of up to Rs 205 crore, in one or more tranches, for approximately 26-30% shareholding in Ather Energy. Ather is a Bangalore-based technology start-up engaged in the business of designing and manufacturing smart Electric Vehicles (EV) and associated charging infrastructure. The strategic investment is subject to execution of definitive agreements and completion of certain conditions customary for a transaction of this nature.
Maruti Suzuki India fell 0.07% to Rs 5,868 after net profit rose 60.18% to Rs 2398 crore on 30.52% growth in total income to Rs 21109.40 crore in Q2 September 2016 over Q2 September 2015. The result was announced during market hours today, 27 October 2016. The stock hit a high of Rs 5,950.20 in intraday trade, which is a record high for the counter. Shares of Maruti Suzuki India saw pre-result upmove, gaining 4.71% in five trading days to settle at Rs 5,871.95 from its close of Rs 5,607.70 on 19 October 2016. Maruti Suzuki India's other income surged 71.58% to Rs 812.60 crore in Q2 September 2016 over Q2 September 2015. The company's sales rose 18.4% to 4.18 lakh vehicles in Q2 September 2016 over Q2 September 2015.
Maruti Suzuki India's operating earnings before interest, taxation, depreciation and amortization (EBITDA) rose 35.3% to Rs 3037.40 crore in Q2 September 2016 over Q2 September 2015. Operating EBITDA margin expanded 80 basis points to 17.3% in Q2 September 2016 from 16.5% in Q2 September 2015.
Maruti Suzuki India said that higher volumes leading to higher capacity utilisation, lower expenses on sales promotion and marketing and higher non-operating income contributed to increase in Q2 September 2016 profits. This was partially offset by foreign exchange movement, Maruti Suzuki India said.
Hindustan Unilever shed 0.09% after net profit rose 11.54% to Rs 1095.60 crore on 2.22% growth in total income to Rs 8733.09 crore in Q2 September 2016 over Q2 September 2015. The result was announced after market hours yesterday, 26 October 2016. During the quarter, in a challenging context where market growth continued to be under pressure, Hindustan Unilever (HUL)'s domestic consumer business grew at 2% and EBITDA (earnings before interest, taxation, depreciation and amortization) margin expanded by 60 basis points (bps), the company said. HUL's profit after tax before exceptional items, PAT (bei) grew by 9% to Rs 1082 crore in Q2 September 2016 over Q2 September 2015.
EBITDA rose 5.1% to Rs 1405 crore in Q2 September 2016 over Q2 September 2015.
Harish Manwani, Chairman of HUL commented that in challenging market conditions, the company delivered another quarter of profitable growth. The company remains focused on market development, consumer led innovations and an even sharper drive on operating efficiences. With a good monsoon, the company expects a gradual improvement in market demand and remain positive on the mid-long term outlook for the industry, Manwani said. HUL's strategic agenda of delivering consistent, competitive, profitable and responsible growth remains unchanged, he added.
HUL said that in the near term, it expects gradual improvement in market growth due to good monsoon. HUL expects sales growth to be positively impacted by recovery in markets. Further, it expects rising trend in input costs. The company said it will focus on volume growth and on improving operating margin.
Dr Reddy's Laboratories rose 2.39% after the company announced that it has entered into a strategic collaboration with Gland Pharma, a globally recognized developer and manufacturer of sterile dosage forms, to market and distribute a diverse portfolio of eight injectable Abbreviated New Drug Applications (ANDAs). The portfolio is a mix of filed ANDAs pending approval by the US Food and Drug Administration (USFDA) and ANDAs that will be filed imminently, and comprised of generic injectables administered in hospitals and clinics in the US. The combined sale of branded and generic versions of the products in the US is approximately $1 billion MAT for the most recent twelve months ending in August 2016 according to IMS Health. Dr. Reddy's is aggressively developing its US injectable business and recently launched Paricalcitol Injection, a therapeutic equivalent generic version of Zemplar. The announcement was made after market hours yesterday, 26 October 2016.
MRF slumped 6.34% after net profit fell 14.36% to Rs 385.29 crore on 0.62% increase in total income to Rs 3736.70 crore in Q2 September 2016 over Q2 September 2015. The result was announced during trading hours today, 27 October 2016.
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