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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Positive global cues boost indices 
(Mon, 6 Aug Closing) 
 
Indices in the equity market in India carried their good form right into the closing session today and as a consequence, closed the day strongly in the positive. Thus, while BSE-Sensex edged higher by around 220 points, gains on the NSE-Nifty stood in the range of 70 points. BSE Mid Cap and BSE Small Cap indices also edged higher, gaining 0.5% and 0.8% respectively. Advance to decline ratio stood strongly in favour of the former with two Sensex stocks gaining for every one going down.

While almost all Asian stocks closed in the positive today, Europe too is trading mostly in the positive currently. The rupee was trading at Rs 55.5 to the dollar at the time of writing.

Today's gains were largely in response to the positive global cues emanating mostly from the Euro zone. It is believed that the European Central Bank will intervene in the markets and take part in a bond buying program in order to reduce borrowing costs of countries like Spain and Italy. Besides, the chances of the US Fed doing a QE3 sometime later in the year are also getting stronger by the day. While this could mean higher inflows into emerging markets like India, investors ignore the stock fundamentals at their own peril. Irrespective of whether more stimulus measures are on their way, an approach that seeks to invest in sound business model at attractive valuations will always yield attractive returns over the long term.

Steel Authority of India (SAIL) has announced its results for the quarter ended June 2012. The company has reported a decline of 1.5% YoY and 17.9% YoY in net sales and net profits for the quarter ended June 2012. Operating profits increased by 13.8% YoY mainly due to lower employee cost. Operating margins improved by 1.9% YoY to 14.1%. At the bottomline level, profits for the quarter declined by 17.9% YoY due to higher forex losses and lower other income. The company reported a forex loss of Rs 2.6 bn as compared to a loss of Rs 117 m in the corresponding quarter last year. Net profit margin declined by 1.3% YoY and stood at 6.5%. Other income during the quarter declined by 40.3% YoY. The stock closed marginally higher today.

Britannia announced its results for the quarter ended June 2012. The company reported an 11% increase in its standalone revenues. It managed to improve operating profitability by 1.2% to 5.9% on the back of lower raw material costs and adspends. However, at the net level, margin remained flat at 3.5% on account of a 59% drop in other income earned during the quarter. This is because the year-ago quarter included profit of Rs 153.3 m from sale of property. While interest outgo increased marginally, tax and depreciation charges rose by 10% and 17%, respectively during the quarter. The stock closed sharply lower today.

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Apr 21, 2017 (Close)

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