We had mentioned in Tuesday’s closing report that Nifty, Sensex might rally a bit. The major indices of the Indian stock markets soared based on positive global cues. The trading volumes on the NSE were however, moderate despite the strong rally. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
Positive global cues, coupled with value buying, surged the Indian equity markets on Wednesday. Consequently, the key indices made healthy gains during the late-afternoon trading session, as buying was witnessed in banks, capital goods, automobile, information technology (IT) and oil and gas stocks. Initially on Wednesday, the key indices opened on a higher note, in-sync with their Asian peers, which rose on the back of positive macro-economic data from the US which showed signs of a healthy economic recovery. Besides, higher crude oil prices, positive European indices and a stable rupee restored investors' confidence. In addition, value buying at key levels and predictions of better-than-expected monsoon rains supported prices. Morgan Stanley also upgraded India to overweight from equal weight adding the positive sentiment for our market. There has been a worldwide stock market rally on Tuesday-Wednesday beginning with the US markets on Tuesday.
Eurozone finance ministers on Wednesday agreed to extend further bailout loans to Greece as well as debt relief, in what they called a "major breakthrough". After talks that ended late Tuesday night in Brussels, the 19 eurozone ministers - known as the Eurogroup, agreed to unlock 10.3 billion euros ($11 billion) in new loans, BBC reported. "We achieved a major breakthrough on Greece which enables us to enter a new phase in the Greek financial assistance programme," Eurogroup President Jeroen Dijsselbloem told reporters early on Wednesday. The move came after the Greek parliament on Sunday approved another round of spending cuts and tax increases demanded by international creditors. The ministers also said debt relief would be eventually offered to Greece.
Automobile wheel maker Wheels India Ltd. closed last fiscal with net profit of Rs.39.99 crore, the company said on Wednesday. In a statement here, Wheels India said it has logged 34% growth for the year ended March 31, 2016, as against Rs.29.74 crore posted for the fiscal 2014-15. Revenues for the year ended March 31, 2016, went up marginally to Rs.2,018 crore as compared to Rs.1,982 crore registered in the previous year, despite the deflationary effect of low commodity prices. "Our revenue growth was driven by the strong recovery in the CV (commercial vehicle) sector, as replacement demand driven by operational efficiencies of higher tonnage vehicles, imminent regulatory changes and some core industry activity drove growth in the CV market," Srivats Ram, managing director, was quoted as saying in the statement. The board of Wheels India has recommended a final dividend of Rs.5.50 per share (previous year Rs.4.50 per share). The company’s share closed at Rs1,001.95, up 10.91% on the BSE.
IT firm Tech Mahindra on Tuesday said it posted a 93% rise in its standalone quarterly net profit for the quarter ending 31 March 2016, at Rs.829.54 crore compared to Rs.429 crore clocked in the corresponding quarter of last year. According to the audited standalone financial results posted on the Bombay Stock Exchange (BSE), Tech Mahindra's total income in Q4 was of Rs.5,604.63 against Rs.4,664.6 crore in the year ago quarter. The company posted an annual standalone net profit of Rs.3,220 crore in 2015-16 as against Rs.2,256.23 in the last fiscal. On a consolidated basis, quarterly profit rose from Rs.472 crore clocked in Q4 2014-15 to Rs.897 crore in the analysed quarter, while consolidated annual profit rose to Rs.3,118 crore in 2015-16 from Rs.2,627.6 in the last fiscal. The company’s share closed at Rs528.55, up 10.29% on the BSE.
Pharmaceutical major Cipla Ltd on Tuesday reported 68.9% decline in its net profit to Rs.81 crore in the quarter ended 31 March 2016 as compared to Rs.260 crore in the year-ago period. In the quarter under review, company's income from operations however grew by 5.6% to Rs3,267 crore, up from Rs.3,093 crore in the corresponding period last year. Its EBITDA declined 56.9% in the January-March quarter to Rs.219 crore, down from Rs.508 crore in the same quarter last year. Domestic sales increased by 15.9% to Rs.1,258 crore during fourth quarter of 2015-16 from Rs.1,086 crore in same quarter last year, the company said in a release. Cipla’s exports of formulations rose 3.2% to Rs. 1,744 crore during March quarter in FY16 from Rs.1,690 crore during same quarter of 2014-15 (FY15). The third-largest pharmaceutical company with a market share of 5.3% posted a net profit of Rs.1,506 crore in 2015-16 up 27.5% from Rs.1,181 crore in 2014-15. The company’s share closed at Rs470.30, down 4.97% on the BSE.
Bharti Airtel and Videocon Telecommunications on Tuesday announced that they have concluded the spectrum purchase deal in six circles for Rs.4,428 crore. Bharti Airtel and Videocon Telecommunications have entered into a definitive agreement on March 17, wherein, Airtel proposed to acquire, for an aggregate consideration of Rs.4,428 crore, the rights to use 2x5 MHz spectrum in the 1800 MHz band allotted to Videocon by the government for six circles -- Bihar, Gujarat, Haryana, Madhya Pradesh, UP (East) and UP (West), the two said in a joint statement. Airtel shares closed at Rs351.45, up 1.80% on the BSE.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: