Benchmark indices ended higher after Reliance Industries rallied nearly 4% on the BSE. Earlier in the day, RIL chairman Mukesh Ambani, announced a 1:1 bonus issue at the company’s 40th annual general meeting (AGM) in Mumbai. A day earlier, the company reported its highest quarterly consolidated net profit of Rs 9,108 crore in three-months to 30 June on the back of higher petrochemical margins and one-time gain from sale of African asset. Net profit in the April-June quarter at Rs 9,108 crore (Rs 30.8 per share) was 28% higher than Rs 7,113 crore (Rs 24.1 a share) in the same period of the last financial year, RIL said in a statement.
In other global markets, the euro’s surge to an almost two-year high dominated financial markets on Friday, with most major stock exchanges consolidating after a second strong week of gains while those in mainland Europe dipped.
Investors seem largely to have got over a period of jitters spurred by concerns over the pace of US economic growth and signs that several of the world’s major central banks were determined to tighten monetary policy soon.
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Vinod Nair, Head of Research, Geojit Financial Services
Market was enthused by Jio’s rapid expansion and innovative plan. The market capitalisation of RIL increased by Rs 19,000 crore today, whereas rivals failed to find their bandwidth. Additionally, continued buying interest in IT and private banks lifted the market from the volatile zone to settle in positive terrain.
Weekly Sensex gainers and losers
Top Sensex gainers and losers
RIL ended at Rs 1,586, up 3.76%. The stock hit in intraday high of Rs 1,592, up 4% on the BSE.
The market breadth, indicating the overall health of the market, remained negative. On BSE, 1,423 shares declined and 1,256 shares rose. A total of 139 shares were unchanged.
In the broader market, BSE Midcap and the BSE Smallcap indices ended little changed. For the week, BSE Midcap settled flat, while BSE Smallcap added 0.5%.
The Sensex settled at 32,028, up 124 points, while the broader Nifty50 ended at 9,915, up 41 points. For the week, both indices closed flat.
Oil prices edged higher on a weaker dollar and diplomatic tensions in the Gulf, but Brent held below the $50 per barrel level that was breached for the first time in six weeks on Thursday. Benchmark Brent crude futures were up 24 cents at $49.54 a barrel, while US West Texas Intermediate (WTI) crude futures traded at 47.09 a barrel, up 17 cents.
Nifty IT (up 2%) continues to lead among sectoral indices. Wipro, HCL Tech, TCS and Infosys gain the most, up between 2% and 6%.
Sterlite Technologies WAS UP 8% AFTER hitting a new high of Rs 248, up 20% on the National Stock Exchange (NSE), extending its two-session long rally of over 30% after the company said it reported its highest ever quarterly revenues driven by strong order book and export sales in June quarter (Q1FY18). CLICK HERE FOR FULL REPORT
At 3:10 pm, volatility index VIX was down nearly 2% to 11 mark.
Top Sensex gainers and losers
Markets recover after RIL (up 4%) extends gains; Sensex up over 100 points, Nifty back above 9,900
At 2:30 pm, the Sensex was trading at 31,940, up 36 points, while The Nifty50 was ruling at 9,880, up 7 points.
GVK Power & Infrastructure, Jaiprakash Associates, Welspun Corp and HEG hit their respective 52-week highs, trading higher by up to 20% on BSE in an otherwise subdued market. CLICK HERE FOR FULL REPORT
European markets open mixed
FTSE 100 added 0.2%, while CAC 40 and Euro STOXX 50 were trading flat with positive bias.
Ashok Leyland slipped over 5% to hit its lowest in four months after the truck maker missed Street expectations on earnings front as profit came in at Rs 111.2 crore for the June quarter against Rs 290.78 crore reported in the corresponding quarter of the last year. Revenue during the quarter fell moderately by 0.4% to Rs 4,514.4 crore from Rs 4,531.3 crore in same quarter last year.
The market breadth, indicating the overall health of the market, turned negative in the noon trade. On BSE, 1,481 shares declined and 1,041 shares rose. A total of 132 shares were unchanged.
Cable stocks fell after Jio announces Jio phone TV-cable, which is priced at Rs 309/month. Dish TV tumbled over 6%, Hathway Cable & Datacom slipped 3%, Sun TV Netwrok shed 3.8% and Siti Network fell 1.3%.
All sectoral indices except Nifty IT were trading in red
Top gainers and losers on BSE Sensex
RIL announces 1:1 bonus issue in its 40th AGM; launches Jio Phone. The last time RIL gave a bonus was in 2009. READ ABOUT IT HERE
Shares of telecom services provider Idea Cellular (down 7% to Rs 88.40) and Bharti Airtel (down 4% at Rs 404) have dipped up to 6% on BSE in intra-day trade after Reliance Jio, a telecom subsidiary of Reliance Industries (RIL), launched a feature phone. Click here for full report
Reliance JioPhone Reliance JioPhone
Dish TV fell over 5% after Jio announces Jio phone cable TV, which is priced at Rs 309/month for the big screen.
SHAREKHAN ON RIL
We largely maintain our FY2018E EPS estimates, as higher GRM and petrochemical EBIT margin assumption is largely offset by losses in telecom business. We have increased our FY2019E EPS to Rs.125.9 to factor in higher GRM estimates of $12/bbl. We maintain our Buy rating on RIL. Any positive surprise in terms of better-than-expected financials of the telecom business would be an important re-rating trigger for RIL going forward
NOMURA ON RIL Q1FY18 RESULTS
RIL reported strong results, though they were largely in line with our expectations. It reported record stand-alone EBITDA and PAT despite nearly 4% q-o-q currency appreciation. Including R-Jio, we expect RIL’s consolidated EBITDA/PAT to record 19%/15% CAGR over FY16-20F (vs a mere 1%/3% CAGR in FY11-16).
Importantly, as past capex delivers and current capex pipeline is lighter, RIL will soon start generating high free cash flows, and could surprise with higher dividends and/or buy-backs.
EDELWEISS ON RIL
Reliance Industries (RIL) delivered robust operational performance in Q1FY18 driven by robust petchem margin and surprisingly strong GRM. The stock is inexpensive at 1.2x FY19E P/BV. We reiterate ‘BUY/SO’ with price target of Rs 1,782
At 12:00 noon, RIL was trading 2% higher at Rs 1,562. It hit an intraday high of Rs 1,587 on the BSE
Mukesh Ambani: The main aim is for feature phone users to migrate to Jio Phone