Reliance Industries Shares Rise On Forecast-Beating Q1 Earnings

Reliance Industries shares jumped over 2 per cent on Monday, following the energy major's earnings beat in the June quarter. RIL's Q1 result was announced post market hours on Friday.

Reliance, which runs the world's biggest refinery at Jamnagar in Gujarat, posted a standalone net profit of Rs. 7,548 crore on sales of Rs. 53,496 crore in Q1. Net profit was up 18.5 per cent year-on-year, though net revenue declined 18.7 per cent on lower crude oil prices.

RIL's outperformance in Q1 was driven by refining segment, where EBIT increased 3 per cent quarter-on-quarter to Rs. 6,580 crore, led by robust refining margins, which offset fall in crude throughput due to a planned maintenance shutdown, said Kotak Institutional Equities.

Reliance, which gets 95 per cent of its profit from oil and petrochemicals, said gross refining margin on each barrel of crude processed was $11.5 in the June quarter, higher than $10.4 a year earlier.

"RIL's premium over Singapore benchmark margins expanded to $6.5/barrel from $3.1/barrel in the March quarter, highest in past eight years, led by benefits of $2/barrel on account of adventitious gains on crude inventory and hedging gains on product spreads," the brokerage said.

On a consolidated basis, Reliance Industries reported a net profit of Rs. 7,113 crore on sales of Rs. 71,451 crore in the June quarter. Analysts attributed the dip in consolidated profit to the implementation of new Indian Accounting Standards.

Apart from strong performance in the refining segment, RIL also posted strong numbers for its petchem business, with EBIT rising 7 per cent quarter-on-quarter to Rs. 2,900 crore, driven by strength in domestic demand, Kotak said.

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Sensex gains over 140 points ahead of monsoon session; RIL rises 2.2%.

9:45am: The 30-share S&P BSE Sensex is currently trading higher by 144.57 points, or 0.52%, to 27,981.07, while the Nifty 50 of the National Stock Exchange (NSE) rises 37.60 points, or 0.44%, to 8,579.
 
9:40am: Reliance Industries Ltd (RIL) rises 2.2% to Rs.1,034.85. RIL on Friday posted a higher-than-expected group profit in the three months ended June, helped by stronger margins in its core refining and petrochemicals business. The profit surpassed analyst expectations of Rs.6,515 crore, Reuters reported.

9:35am: The Indian rupee on Monday weakens against the US dollar, while 10-year bond yield gained after Reserve Bank of India (RBI) governor Raghuram Rajan ruled out a rate cut in the next policy meeting.

9:30am: India’s 10-year bond yield is trading at 7.282%, compared with Friday’s close of 7.272%.

9:25am: The dollar rises to ¥105.52 from Friday’s ¥104.81. The euro edges up to $1.1062 from $1.1037.

9:20am: Benchmark US crude adds 2 cents to $45.97 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude advances 20 cents to $47.81 per barrel in London.

9:10am: The Shanghai Composite Index loses 0.5% to 3,038.69 points while Sydney’s S&P-ASX 200 rises 0.5% to 5,455.20. Hong Kong’s Hang Seng is up 0.1% to 21,674.28 and Seoul’s Kospi is unchanged at 2,017.13. Japanese markets are closed for a holiday. Benchmarks in Singapore and New Zealand gain while the Philippines and Indonesia retreat.

9:00am: Asian stock markets are trading mixed on Monday after Wall Street ended the week up, a Turkish military coup failed and China reported better economic data.

8:50am: The Dow Jones industrial average gained 10.14 points, or 0.1%, to 18,516.55. The Standard & Poor’s 500 index slipped 2.01 points, or 0.1%, to 2,161.74. The Nasdaq composite lost 4.47 points, or 0.1%, to end at 5,029.59.


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Sensex Falls Over 150 Points After Infosys Disappoints In Q1

10:20 a.m.: Infosys has cut its revenue guidance for FY17 causing a huge downfall in Infosys shares.

10:14 a.m.: IT stocks were witnessing heavy selling pressure after Infosys disappointed in its first quarter earnings. The BSE IT index slumped 4 per cent; Infosys was the top loser, down 10 per cent to Rs 1,082. TCS, Tech Mahindra, Wipro and HCL Technologies also fell upto 3 per cent each.

9:56 a.m.: The stock markets came off the day's high on selling in power and oil & gas stocks. Sensex retreated from levels of 28,000 and was trading 13 points higher at 27,955 and Nifty was at 8,569, up 4 points.

9:24 a.m.: Sensex and Nifty edged higher in opening deals on Friday but the gains were capped on the back of selling in IT major TCS after it gave cautious commentary despite posting better-than-expected first quarter numbers.

As of 9:21 a.m., Sensex was at 28,010, up 68 points or 0.24 per cent and Nifty was at 8,582, up 17 points.

In early trading, buying interest was seen in FMCG, consumer durables, auto, banking and IT stocks.

At the same time, some power stocks were witnessing selling pressure.

From Nifty basket of stocks, 37 were advancing while 14 were declining.

Adani Ports was the top Nifty gainer, up 2 per cent to Rs 221.35. Idea Cellular, Bank of Baroda, ITC, Hindustan Unilever, Bharti Infratel, Asian Paints and State Bank of India were also among the gainers.

On the other hand, TCS was among the top Nifty losers, down 0.6 per cent to Rs 2,506. NTPC, Kotak Mahindra Bank, HDFC, BHEL, Coal India and Tata Motors were also among the losers.

The broader markets were outperforming the benchmark indices. The BSE mid-cap index was up 0.6 per cent and the small-cap index jumped 0.23 per cent.

7:58 a.m.: Sensex is set for a strong start in trades today while Nifty is likely to move above its important psychological hurdle of 8,600 tracking gains on Nifty futures traded on Singapore Stock Exchange amid strong global markets.

The Nifty futures on the Singapore Exchange traded 0.39 per cent or 33.50 points higher at 8,614.

Meanwhile, Asian shares rose to eight-month highs on Friday, on track for solid weekly gains, as record highs on Wall Street offset the impact on sentiment of an attack in France that lifted the safe-haven yen.

Japan's Nikkei advanced 1 per cent, Hong Kong's Hang Seng was up 0.4 per cent and South Korea's KOSPI jumped 0.6 per cent.

Overnight, two major U.S. stock indexes set fresh record closing highs on Thursday on investors' optimism about big banks' second-quarter earnings, while European shares also rose and oil prices rebounded from the previous session's bruising losses.

The benchmark S&P 500 ended at 2,163.75, its fourth straight record closing high after hitting a record intraday peak of 2,168.99. The Dow Jones industrial average closed at 18,506.41, its third straight record close after touching a record intraday high of 18,537.57.

Back home, foreign institutional investors bought shares worth Rs 870 crore while domestic institutional investors sold shares worth Rs 874 crore on Thursday.

Meanwhile, TCS is expected to lead gains in the benchmark indices after the company reported better-than-expected first quarter earnings.

The IT major on Thursday posted a net profit of Rs 6,317 crore on sales of Rs 29,305 crore in the June quarter, beating the Street's estimates. This is the second time when TCS surpassed profit estimates, after earlier missing estimates for six straight quarters.

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TCS Profit Beat Fails To Excite Investors, Shares.

 Tata Consultancy Services shares came under selling pressure on Friday, despite India's biggest outsourcer reporting better-than-expected profit in the June quarter. TCS on Thursday posted a net profit of Rs 6,317 crore on sales of Rs 29,305 crore in the June quarter.

Though a number of brokerages retained their "bullish" outlook on TCS, domestic brokerage Kotak Securities downgraded TCS to "reduce", saying the composition in growth is worrying. TCS stock price leaves no upside from the current levels, it added.

Meanwhile, TCS management sounded cautious about the demand environment, which also weighed on the stock, traders said. According to the management commentary, the key banking, financial services and insurance (BFSI) vertical is likely to remain sluggish due to weakness in macro environment.

CLSA maintained its "outperform" rating on TCS, saying the company posted "in-line" revenues despite BFSI dampener.

Credit Suisse, which has an "outperform" rating on TCS, said the company was "light" on revenue, but better on margins. FY17 revenue growth is likely to be below 11 per cent, it added.

As of 09.32 a.m., TCS shares traded 0.7 per cent lower at Rs 2,503, underperforming the broader Nifty that was up 0.2 per cent.

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Kwality Surges 6%, KKR To Infuse Rs 520 Crore

 Shares of Kwality Ltd jumped as much as 6 per cent to hit intraday high of Rs 118.35 after the dairy company said that it has received funding commitment of Rs 520 crore from private equity firm KKR.

Delhi-based Kwality said the "proceeds shall be utilized to fund capex to further strengthen milk procurement infrastructure solely for high-margin value-added product categories including cheese, paneer, table butters, tetra-packs, flavoured milk and yoghurt among others".

The company plans to roll out a series of such products in the near future, it added.

Kwality Limited has six milk processing units in Uttar Pradesh, Haryana, Uttarakhand, and Rajasthan, has milk processing capacity of over 3.2 million litres per day.

As of 10:49 a.m., shares of Kwality Ltd traded 4.48 per cent higher at Rs 116.50, outperforming the Nifty which was down 0.05 per cent.

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Indiabulls Group Shares Fall On Reports Of Tax Raids

Shares of Indiabulls group companies Indiabulls Wholesale Services, Indiabulls Housing Finance, Indiabulls Ventures and Indiabulls Real Estate fell between 5 per cent and 10 per cent on report that the Income Tax Department has raided Indiabulls offices across the country.

Meanwhile, the Bombay Stock Exchange has sought for clarification from Indiabulls on report of tax raids at its offices.

As of 11:26 a.m., shares of Indiabulls Real Estate (down 8.45 per cent to Rs 87.80), Indiabulls Ventures (down 8 per cent to Rs 31.50), Indiabulls Housing Finance (down 5.8 per cent to Rs 701) and Indiabulls Wholesale Services (down 4.86 per cent to Rs 28.40) were underperforming the Nifty, which was down 0.26 per cent.

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Quess Corp, India's Most Successful IPO In 9 Years, Soars 60% In Debut

Quess Corp made a stellar debut in stock markets, with shares in the staffing firm rising over 60 per cent on Tuesday. Quess Corp's initial public offer (IPO) was oversubscribed 145 times, making it the most oversubscribed issue in the past nine years.

With the stellar listing, Quess Corp joined a string of names such as Dr Lal PathLabs, Alkem Labs, TeamLease Services, Thyrocare Tech and more recently Mahanagar Gas, that have returned solid listing gains to subscribers.

Quess Corp shares surged to Rs 507.90 today, against the issue price of Rs 317 per share. Bengaluru-based Quess Corp had raised Rs 400 crore through its IPO.

Set up in 2007, Quess Corp offers comprehensive solutions including recruitment, temporary staffing, technology staffing as well as IT products and solutions. Quess Corp is promoted by Ajit Isaac and Thomas Cook (India).

Quess Corp plans to use the proceeds towards incremental working capital, acquisitions and other strategic initiatives, debt repayment and other general corporate purposes.

As of 10.45 a.m., Quess Corp shares traded 58 per cent higher at Rs 501.20 on the National Stock Exchange, outperforming the broader Nifty that was up 0.3 per cent.

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