Pidilite Industries Shares Surge 5% As Q1 Net Jumps 33%

Pidilite Industries shares surged as much as 4.6 per cent on Wednesday after the manufacturer of adhesives and chemicals posted strong June quarter earnings.

Pidilite Industries, which owns the Fevicol brand of adhesives, reported a 33 per cent jump in net profit for the quarter ended June 30, 2015. Its net profit rose to Rs 225 crore in the June quarter from Rs 168 crore during the same quarter of the previous year.

Revenues for the quarter rose nearly 9 per cent to Rs 1,479.9 crore, from Rs 1,361.7 crore a year earlier. It operating income for the quarter jumped to Rs 311 crore, compared with Rs 215 crore a year earlier. Analysts said it benefited from lower raw material cost with crude prices falling sharply.

Wall Street Ends Sharply Higher as China Jitters Ebb

U.S. stocks ended sharply higher on Tuesday, breaking a five-day losing streak as attention shifted from trouble in Chinese equities to U.S. corporate earnings and to speculation the first Federal Reserve interest rate hike may not come until December.

The Dow Jones industrial average and S&P 500 chalked up gains of more than 1 per cent, while the Nasdaq Composite lagged slightly.

After the S&P sank over the past week towards the low end of a range it has traded in since February, some investors wagered the market was primed for a technical bounce-back.

"The S&P has had five down days in a row and a lot of people are starting to nibble," said Michael Matousek, head trader at U.S. Global Investors Inc in San Antonio, which manages about $1 billion.

Market sentiment also reflected expectations the Fed would wait until December, rather than September, to raise interest rates for the first time since 2006, Matousek added.

With a two-day Fed policy meeting ending on Wednesday, investors are looking for hints about the timing of that rate increase. No move on rates is expected this week.

"September is possible but the probability for a December rate hike is increasing," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis.

The Dow Jones industrial average rose 1.09 per cent, to end the session at 17,630.27. The S&P 500 gained 1.24 per cent to 2,093.25 and the Nasdaq Composite added 0.98 per cent to finish at 5,089.21.

All the 10 major S&P 500 sectors rose, with the energy index leaping 2.99 per cent as oil prices recovered from near six-month lows.

U.S. consumer confidence weakened in July to its lowest level since September, due in part to a less optimistic outlook on the labour market.

Ongoing uncertainty related to China's stock market, which closed lower again on Tuesday, took a backseat to U.S. corporate earnings.

With second-quarter reports well under way, analysts now expect overall earnings of S&P 500 companies to edge up 0.3 per cent and revenue to decline 4.0 per cent, according to Thomson Reuters data.

"Earnings are growing but very slowly. The market's biggest concern is the lack of top-line growth and where that growth is going to come from," said Tim Courtney, chief investment officer of Exencial Wealth Advisors, which oversees $1.3 billion.

After the bell, Twitter jumped 5.2 per cent and Gilead Sciences rose 3 per cent after both companies posted their second-quarter results. Yelp slumped 13 per cent after its report.

During Tuesday's session, SuperValu jumped 10.60 per cent. It said it was exploring a spinoff of its discount grocery chain Save-A-Lot into a publicly-traded company.

Advancing issues outnumbered declining ones on the NYSE by 2.7 to 1. On the Nasdaq, 1.67 stocks gained for each that declined.

The S&P 500 racked up 15 new 52-week highs and 12 lows. The Nasdaq Composite posted 36 new highs and 163 lows.

Some 7.3 billion shares changed hands on U.S. exchanges, above the daily average of 6.7 billion so far this month.

Gold Wedged Below $1,100 Ahead of Fed Meeting Outcome

Gold held just below $1,100 an ounce early on Wednesday, trading not far from a 5-1/2-year low, as investors awaited the outcome of the U.S. Federal Reserve's meeting for more clues on the timing of this year's interest rate increase.

Spot gold was little changed at $1,095.25 an ounce by 0029 GMT. The metal hit a low of $1,077 last week, its weakest since February 2010.

Gold has been stuck in narrow ranges this week ahead of the conclusion of the Fed's policy meeting on Wednesday. Policymakers are expected to send more signals to the market that a U.S. interest rate hike is certain this year as the economy recovers.

That rate hike, the first in nearly a decade, could happen in September or December, analysts say, suggesting more downside risk for non-interest yielding gold.

U.S. gold for August delivery slipped 0.2 percent to $1,094 an ounce.

Global gold demand shrank to its lowest level since 2009 in the second quarter as China poured funds into its now troubled equities market and imports by India dropped to the lowest in five quarters, according to a report by GFMS.

China's gold imports could fall as much as 40 percent this year as demand for bullion used to back domestic financing deals decreases, the world's biggest refiner Valcambi said.

U.S. consumer confidence suffered its biggest blow in four years in July on a less upbeat jobs outlook, while home appreciation in major cities stalled in May, suggesting a spring pause in housing demand.

Oil Prices Fall On Oversupply Concerns

Oil prices fell in Asian trade on Wednesday as concerns over global oversupply outweighed the impact of a likely larger than expected draw in US crude stocks and a weakening dollar.

Asian investors focused on OPEC production figures that showed members of the Organization of the Petroleum Exporting Countries produced around 3 million barrels of oil per day more than daily demand in the second quarter, a Reuters survey showed.

"Glut is the word," said Ric Spooner, chief market analyst at Sydney's CMC Markets.

OPEC members pumped 31.25 million barrels per day (bpd) in the second quarter against demand of 28.26 million bpd, the Reuters data showed.

Both Brent and U.S. crude came off session lows on Tuesday after data from industry group the American Petroleum Institute showed U.S. commercial crude stocks fell by 1.9 million barrels last week to 462 million, against analysts' expectations of a 184,000 barrel draw.

"It was the first time since July 14 the market has seen any sign of a bit of a bounce, albeit temporary," Spooner said.

The Department of Energy's Energy Information Administration will release official U.S. oil inventory data later on Wednesday.

Brent futures for September delivery fell 14 cents to $53.16 as of 0236 GMT after falling 17 cents in the previous session when it hit an intra-day low of $52.28, its lowest since Feb. 2, on concerns over China's stock market plunge.

U.S. crude for September delivery dropped 12 cents to $47.86 a barrel, after ending the previous session up 59 cents.

Investors were also awaiting the outcome of a U.S. Federal Reserve meeting later on Wednesday that could confirm a rise in U.S. interest rates as early as September.

A stronger dollar makes dollar-denominated commodities, including oil, more expensive for buyers using other currencies.

Spooner expected the Fed to confirm market expectations of an increase in interest rates this year.

"But the rate of increase will be very modest," he said.

"My view is the dollar is positioned for a bit of a decline," because any hike had already been priced into currency markets, Spooner said.

The dollar slipped against a basket of six major currencies in Asian trade on Wednesday, while the euro gained against the dollar. The dollar index fell to 96.505, or 0.27 percent, after closing up at 96.745 in the previous session.

Sensex Edges Higher, Nifty Hovers Around 8,350

9:15 a.m.: Sensex jumps over 100 points on higher Asian markets, Nifty moves above 8,350.

9:12 a.m.: Market expert Rajat Bose says that for a meaningful rally in the markets Nifty has to sustains above 8,413 levels.

9:08 a.m.: The Sensex jumps 81 points to 27,540 and Nifty advances 27 points to 8,364 in the pre-market session.

9:00 a.m.: Rupee opens higher at 63.87 per dollar against Tuesday's close of 63.91.

8:45 a.m.: PVR: PVR has planned to install Dolby Atmos in 50 screens in India and also plans to open 150 low cost screens.

Amtek Auto: Amtek Auto plans to raise funds via issue of equity and NCD's.

J Kumar Infra: J Kumar Infra bagged a construction orders worth Rs 281 crore.

8:35 a.m.: Biocon's clinical research arm Syngene's IPO was fully subscribed on its second day.

8:25 a.m.: Here's what analysts polled by NDTV expect from the companies reporting their quarterly numbers today:

Yes Bank: Analysts expect Yes Bank to post net interest income of Rs 1,030 crore compared to Rs 745 crore during the same quarter last year. Net profit is expected to come in at Rs 548 crore versus Rs 439 crore (YOY). Loan growth is expected to be above industry average at 30 per cent and net interest margins are expected to improve marginally.

Analysts say that von-interest income growth is expected to be 23 per cent year on year and deposit growth is expected at 24. per cent.

Vedanta: Net sales of Vedanta are expected to come in at Rs 17,512 crore compared to Rs 17,732 crore in the previous quarter. Net profit is expected to come in at Rs 743 crore compared to Rs 491 crore in previous quarter.

JSW Steel: JSW Steel is expected to post net profit of Rs 134 crore compared to Rs 188 crore in the previous quarter. Its EBITDA is expected to come in at Rs 1,471 crore compared to Rs 1,673 crore sequentially.

Nestle: Nestle will come out with its second quarter numbers. Nestle's sales are expected to come in at Rs 2,340 crore versus Rs 2,418 crore during the same quarter last year. Its net profit is expected to come in at Rs 385 crore compared to Rs 500 crore during the June quarter of last year.

8:00 a.m.: Foreign institutional investors sold shares worth Rs 1,375 crore on Tuesday while the domestic institutional investors purchased shares worth Rs 665 crore.

In the derivative segment, the FIIs sold index futures worth Rs 120 crore and also sold stock futures worth Rs 407 crore.

7:50 a.m.: The Sensex and Nifty are likely to open on a flat note in trades today tracking subdued trading of Nifty futures on the Singapore Stock Exchange. The Nifty traded on the Singapore Exchange also known as the SGX Nifty was down 0.1 per cent or 8 points at 8,336.

Meanwhile, other Asian markets were trading were trading on a subdued note. Hang Seng was up 0.1 per cent, Shanghai Composite was down 0.4 per cent, Shanghai Shenzen index fell 0.7 per cent and Nikkei was down 0.6 per cent.

Overnight, U.S. stocks ended sharply higher on Tuesday, breaking a five-day losing streak as attention shifted from trouble in Chinese equities to U.S. corporate earnings and to speculation the first Federal Reserve interest rate hike may not come until December.

The Dow Jones industrial average rose 1.09 per cent, to end the session at 17,630.27. The S&P 500 gained 1.24 per cent to 2,093.25 and the Nasdaq Composite added 0.98 per cent to finish at 5,089.21.

Back home, analysts say that there could be some volatility in the markets due to expiry of derivative contracts which is due tomorrow.