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Index heavyweight Reliance Industries (RIL) dropped on weak Q2 results. Another index heavyweight and cigarette maker ITC edged lower in volatile trade. Car major Maruti Suzuki India rose after the car major today, 16 October 2012, unveiled its best seller Alto in an all new form -- Alto 800. Axis Bank rose after the private sector bank reported strong Q2 results after trading hours on Monday, 15 October 2012. Shree Cement declined on profit booking after posting strong Q1 results.
The stock market edged higher in early trade on firm Asian stocks. The stock market trimmed initial gains in morning trade. Key benchmark indices further pared gains in mid-morning trade as index heavyweight Reliance Industries (RIL) reversed intraday gains. The market regained strength in early afternoon trade. The market slipped into the red in mid-afternoon trade. The Sensex trimmed losses after hitting 3 -1/2-week low in late trade
As per provisional figures, the BSE Sensex was down 133.97 points or 0.72% to 18,579.58. The index jumped 87.55 points at the day's high of 18,801.10 in early trade, its highest level since 12 October 2012. The index fell 164.27 points at the day's low of 18,549.28 in late trade, its lowest level since 21 September 2012.
The S&P CNX Nifty was down 42.35 points or 0.74% to 5,644.90, as per provisional figures. The index hit a high of 5,714 in intraday trade, its highest level since 12 October 2012. The index hit a low of 5,635.60 in intraday trade, its lowest level since 5 September 2012.
The total turnover on BSE amounted to Rs 2931 crore, higher than Rs 1821 crore on Monday, 15 October 2012.
The market breadth, indicating the overall health of the market, was negative. On BSE, 1,725 shares declined and 1,161 shares rose. A total of 115 shares were unchanged.
From the 30-share Sensex pack, 23 stocks fell while the rest of them rose.
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Index heavyweight Reliance Industries (RIL) lost 1.5% to Rs 810.45, which was also the day's low for the counter. RIL's net profit declined 5.7% to Rs 5376 crore on 15.4% growth in turnover to Rs 93265 crore in Q2 September 2012 over Q2 September 2011. RIL's gross refining margin (GRM) which is the differential between the cost of a barrel of crude oil and realization from sale of refined products produced from it declined to $9.5 a barrel in Q2 September 2012 from $10.1 a barrel in Q2 September 2011.
RIL's net profit jumped 20.2% to Rs 5376 crore on 1.7% decline in turnover to Rs 93265 crore in Q2 September 2012 over Q1 June 2012. The GRM surged to $9.5 a barrel in Q2 September 2012 from $7.6 a barrel in Q1 June 2012. RIL announced the second quarter results after trading hours on Monday, 15 October 2012.
Commenting on the second quarter results, Mukesh D. Ambani, Chairman and Managing Director, RIL said: RIL's business and financial performance for the first half of FY 2012-13 has been satisfactory despite weakness in global economies and the resultant margin environment. RIL's facilities continued to deliver operating excellence and this is a true testimony of the quality of our manufacturing assets and human talent. On a sequential quarter basis, net profit for the quarter was up 20% at $1 billion. Despite current weakness in global economies, we continue to invest in our long-term growth projects to deliver sustainable value to all our stakeholders.
RIL's outstanding debt as on 30 September 2012 was Rs 70059 crore, higher than Rs 68259 crore as on 31 March 2012. RIL had cash and cash equivalents of Rs 79159 crore. RIL said the company is debt free on a net basis as at 30 September 2012.
RIL's subsidiary, Infotel Broadband Services Limited (Infotel), which has emerged as a successful bidder in all the 22 circles of the auction for Broadband Wireless Access (BWA) spectrum conducted by the Department of Telecommunications, Government of India is in the process of setting up a world class Broadband network using state-of-the-art technologies and finalizing the arrangement with leading global technology players, service providers, infrastructure providers, application developers, device manufacturers and others to help usher the 4G revolution into India, RIL said in a statement. Infotel plans to provide end-to-end solutions that address the complete digital value chain across various digital services in key domains of national interest such as education, healthcare, security, financial services, government-citizen interfaces, entertainment and working on building the requisite parts of this customers' experience which fundamentally change the lives of hundreds of millions of ordinary Indians, RIL said.
Index heavyweight and cigarette maker ITC fell 0.03% at Rs 286.05. The stock reversed direction after hitting a record high of Rs 288.45 in intraday trade today, 16 October 2012.
