Aug 08

Daily Market Commentary : 5th August 2016

The Indian equity market closed with huge gains on Friday erasing the entire weeks losses. The rally was led by the interest rate sensitive stocks like banking, auto and realty. Metal, industrial, power, and FMCG stocks were among the other major gainers. On the other hand, IT and telecom stocks were among the major losers. Nifty closed at 8683 points, up 132 points, while BSE Sensex ended at 28,078, up 363 points.

On the global front, Asian shares closed on a mixed note. Straits Times was down 0.13% at 2828, while Hang Seng was up by 1.4% at 22,146.09.

Bharat Forge stock closed higher by 13% at Rs.814.The Company posted a net profit of Rs. 1220.60 million for the quarter ended June 30, 2016 as compared to Rs. 1959.70 million for the quarter ended June 30, 2015.

PVR rallied by 10% at Rs.1225.The company inaugurated a 6-screen multiplex marvel at Xperia mall, Palava.

Suzlon Stock was higher by 6% at Rs.17.20.Suzlon Energy Ltd hopes to exit a process of corporate debt restructuring by March 2017, its chairman reportedly said.

Kirloskar Oil stock was higher by 5% at Rs.283.The company reported 40.8% YoY growth in the net profit to Rs. 58.70 crore for the quarter ended June 30.

Bharat Forge Ltd stock was higher by 3% at Rs. 746. The company posted a net profit of Rs. 1220.60 million for the quarter ended June 30, 2016 as compared to Rs. 1959.70 million for the quarter ended June 30, 2015. Total Income has decreased from Rs. 12159.70 million for the quarter ended June 30, 2015 to Rs. 9826.70 million for the quarter ended June 30, 2016.

Future Enterprises Ltd stock was down by 2% at Rs.18. The Board of Directors of the Company has approved to issue of Secured Redeemable Non-Convertible Debentures (NCDs) for a value upto Rs. 1,250 Crore in one or more tranches within a period of one year, subject to approval by the members.

Thomas Cook India Ltd stock was higher by 3% at Rs.202. The net profit rose 55.78% in June quarter to Rs.62.02 crore.

Deepak Nitrite Ltd stock was up by 2.5% at Rs.104. The net profit rose 230% in June quarter to Rs.67.86 crore.

Moving on to the news from the oil & gas sector. According to an article in a leading financial daily, Oil India Ltd andOil and Natural Gas Corp. (ONGC) Ltd paid a total of Rs 14.5 billion to the Assam government as royalty dues on crude oil mined in the state.

As per the reports, Oil India paid Rs 11.5 billion, while ONGC paid Rs 3 billion to Assam chief minister Sarbananda Sonowal.

This was referring to the ministry’s 2008 order asking oil companies to pay 20% royalty on the discounted price at which they sold crude to state refiners as part of the oil subsidy regime. This impacted the revenues of producing states Assam and Gujarat. States insisted that royalty ought to be computed on the basis of the pre-discount price.

Shortly after the BJP formed the government, the ministry ordered ONGC and Oil India to pay Assam royalty at pre-discounted rates retrospectively from February 2014.

USDINR trade today down at 66.81 per US dollar.

Out of 1,512 stocks traded on the NSE, 347 declined and 1106 advanced today.

Top 5 Nifty Gainers: Cipla (1.48%), Reliance Ind. (1.33%), Bajaj Auto (1.21%), Lupin Ltd (1.16%) and SBI (1.05%).

Top 5 Nifty Losers: NTPC (-1.18%), Bharti Airtel (-0.85%), BHEL (-0.51%), L&T (-0.34%) and Tata Steel (-0.29%).

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