We had mentioned in last week’s closing report that Sensex, Nifty be volatile this week. The major indices of the Indian stock markets ended higher during the week.
The stock markets rallied sharply on Monday and closed with massive gains after most exit polls showed a BJP-led NDA getting a comfortable majority in the now concluded general elections. On the NSE, there were 1,477 advances, 323 declines and 312 unchanged. State-run Indian Oil Corp reported a 16.88% rise in its standalone net profit for the fourth quarter ended March on the back of foreign exchange gains during the period. According to the company, its standalone net profit for the quarter in consideration rose to Rs6,099 crore, from Rs5,218 crore for the corresponding period of the previous financial year.
The markets suffered a correction on Tuesday. On the NSE, there were 609 advances, 1,145 declines and 343 unchanged. All sectoral indices, except consumer durables, which was up 0.7%, ended in red with auto, banking and metal being the top losers. Information technology company Tech Mahindra reported a dip in net profit for the quarter ended March 31, hurt by a decline in its margins. Its net profit fell 6% quarter on quarter to Rs1,132 crore. Revenues also declined quarter on quarter, falling to Rs8,892 crore as compared to Rs8,943 crore in the December quarter. Tata Motors’ reported a a consolidated operating profit of Rs8017 crore (down 26% YoY). This belied market estimates of 11% fall due to weakness across businesses. Jet Airways ended 14% higher on reports that Hinduja Group was finally set to bid for the grounded airline.
The markets were range-bound on Wednesday and closed with minor gains. On the NSE, there were 969 advances, 770 declines and 361 unchanged. IndusInd Bank Wednesday reported a decline of over 62% in March quarter net profit at Rs360.10 crore. Net profit in the same quarter of 2017-18 financial year stood at Rs953.09 crore. The decline was due to provisions on its Rs3,004 crore exposure to IL&FS. Shares of Dewan Housing fell up 17% in intraday trading after the company announced that it has stopped accepting fresh public deposits and renewals of existing deposits with immediate effect. Shares of Jet Airways was up 5% after media reports suggested that Etihad Airways, along with the Hindujas, has joined hands with AdiGro Aviation and Jet Airways founder Naresh Goyal to revive the airline. The shares of Jindal Steel and Power fell 7% after the company reported a net loss of Rs2,713.34 crore for the quarter ended March 2019. KEI Industries was up 6% after it reported a 21% jump in net profit in the quarter ended March 2019.
Taking a cue from the initial trend of the Lok Sabha polls verdict which indicated the BJP-led NDA candidates as leading, the major indices of the Indian stock markets rallied on Thursday morning but soon corrected and closed with losses.
On the NSE, there were 810 advances, 920 declines and 367 unchanged. Later during the afternoon, the Sensex began retreating after it surpassed the 40,000 mark within minutes into the day’s trade. Reliance Capital Ltd (RCAP) on Thursday said it has signed binding definitive agreements with Nippon Life Insurance of Japan to exit its stake in Reliance Nippon Life Asset Management Ltd (RNAM). Shares of Adani Group companies surged up to 14% intra-day on the BSE on Thursday as trends showed the Narendra Modi-led National Democratic Alliance (NDA) leading the vote counts for the 2019 Lok Sabha election.
The major indices rallied on Friday. The BSE Sensex rose 623.33 points and the Nifty50 on the National Stock Exchange closed at 11,844-mark. On the NSE, there were 1405 advances, 342 declines and 352 unchanged.
High airfares as a result of capacity constraint dragged the domestic air passenger traffic lower by 4.2 per cent to 109.95 lakh in April 2019 on a year-on-year (Y-o-Y) basis, ratings agency ICRA said on Thursday. As per a note by ICRA, the downtrend was primarily attributed to adverse impact on the industry capacity which has been hit hard due to grounding of aircraft by Jet Airways which ceased operations from April 18, 2019. The government has put top consultancy firm EY to work for divesting its stake in flag carrier Air India and "quickly" issue expression of interest (EoI). The development comes close on the heels of Prime Minister's Office (PMO) directing the Aviation Ministry to speed up the process of strategic disinvestment of Air India and three of its subsidiaries.
Ashok Leyland reported standalone net profit of Rs653 crore, down 12% for the quarter ended March 2019. Revenue from operation was marginally up by 1% at Rs8,846 crore. Unichem Laboratories posted a rise in net profit by 350% at Rs9.9 crore for the quarter ended March 2019 as against Rs2.2 crore. Revenue from operations rose 36% to Rs227.1 crore as against Rs203.4 crore.
IT services major Infosys on Friday said it has completed the acquisition of 75 percent shareholding in ABN AMRO Bank's wholly-owned Stater NV. "This partnership strengthens Infosys' position as a leading technology and business process management provider across the mortgage services value chain, improving experience and operational efficiencies..." Infosys said in a statement Friday.
We expect the market to remain bullish on hopes of major reforms and inflow of funds.