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Friday, 31 October 2014

Record closing: Nifty ends at 8322, Sensex soars 519 pts

03:30 Market closing:

The market ended at record closing levels with mighty gains. The Sensex was up 519.50 points or 1.9 percent at 27865.83 and the Nifty ended up 153.00 points or 1.9 percent at 8322.20. About 1770 shares advanced, 1214 shares declined and 128 shares were unchanged.

GAIL, Tata Power, HDFC, L&T and Tata Steel were top gainers in the Sensex. Deagged by Q2 results, Bharti and ITC were major losers.

03:15 pm Market check: 

 The Sensex is up 534.47 points or 1.9 percent at 27880.80 and the Nifty is up 153.55 points or 1.9 percent at 8322.75. About 1768 shares have advanced, 1203 shares declined, and 122 shares are unchanged. 

03:00 pm Results: Multiplex operator PVR today reported a decline of 66.60 per cent in its consolidated net profit to Rs 9.20 crore for the quarter ended September 30. The company had reported a consolidated net profit of Rs 27.55 crore for the July-September quarter of last fiscal.

However, PVR's total consolidated income from operations during the second quarter increased 9.41 per cent to Rs 400.20 crore as against Rs 334.45 crore in the same period a year ago, the company said in a BSE filing.

02:50 pm Market check:  

The market is on fire with the Nifty hitting 8300 and 27803.30. Currently, the Sensex is up 433.13 points or 1.6 percent at 27779.46 and the Nifty is up 124.75 points or 1.5 percent at 8293.95.  About 1764 shares have advanced, 1132 shares declined, and 126 shares are unchanged.

Gail,  HDFC, L&T, Tata Steel and Maruti are top gainers and Bharti, ITC and BHEl were among the laggards.

02:30pm Brokerages reaction on ITC earnings

FMCG major ITC announced its Q2 numbers that came inline with analysts’ expectations. The company’s net profit climbed 8.7 percent year-on-year to Rs 2,425 crore supported by other income and higher revenue.

While analysts say the numbers are on expected lines, Suruchi Jain of Morningstar believes the company should address the cigarette business’ fall in profitability. 

“The fact that they have started spending more on the FMCG front is bad for the company as that is utter bad use of capital. It has taken the company so long to start showing good results,” says Jain.

Jain believes the profits could reflect in the profit and loss accounts if the company stopped spending on FMCG.

Naveen Kulkarni, co-head-research, Phillip Capital says the company’s hotel and agriculture business EBITDA margins are highly uninspiring.

02:15pm HUL in News

More than 450 workers and their families staged demonstrations outside Hindustan Unilever headquarters in Mumbai on Friday. This protest is called by Hindustan Unilever Employees Federation. The workers are from the Amli and Dapada factories.

The workers are protesting on a whole host of issues including low wages. They claim that the wages received by them are not on par with those received by their peers at Nestle and Colgate. Workers further allege that no compensation was paid after an accident at the company's Kodaikanal factory in 2003.

Workers also say that all efforts to unionise are always met with hostile reaction from the management and alleged the management of creating sponsored unions with whom settlements are reached and these terms of settlements are forced upon the workers. The workers demand that this victimization must stop.

HUL management on its part told CNBC-TV18 that it has always encouraged unions and that it always leaves it upto the workers to decide whether to join a particular union. They say the company is following the due process for discussions with the unions and will continue to engage with the workers to resolve the issue. 

02:00pm Market Check 

The spectacular rally continued in afternoon trade with the Sensex rising more than 400 points and the Nifty inching towards the 8300-mark supported by banking & financials, oil & gas, technology and capital goods stocks.

The 30-share BSE Sensex climbed 423.86 points or 1.55 percent to 27770.19 and the 50-share Nifty jumped 123.85 points or 1.52 percent to 8293.05. Advancing shares outnumbered declining ones by a ratio of 1747 to 1110 on the BSE.

Christopher Wood, CLSA says India remains by far the most promising stock market story in Asia and emerging markets, and indeed the world, on a five-year view.

Gail India topped the buying list, rising over 7 percent after stellar performance in bottomline. Profit in September quarter more than doubled to Rs 1,303 crore compared to Rs 621.4 crore in previous quarter.

Large buying was seen in blue chip names like HDFC (up 4 percent), L&T (up 3 percent), SBI (up 2 percent), Infosys (up 2 percent), Reliance Industries (up 1.9 percent) and HDFC Bank (up 1.7 percent) while selling was seen in Bharti Airtel post a weak performance in the Africa business. In earnings today, ITC reported a decent quarter with a 9 percent growth in profits to Rs 2,425 crore in second quarter.

The biggest talking point globally is the 5 percent surge in the Japan's Nikkei after the Bank of Japan, in an unexpected move today, expanded the pace of its quantitative easing to 80 trillion yen against 50 trillion earlier. This sent the Japanese yen slumping to a 6-year low versus the dollar. More information please visit this site

Sensex, Nifty flex muscles with hefty gains; ITC falls

1:20 pm Results: Cigarette-FMCG-hotel major ITC matched street expectations with the second quarter net profit climbing 8.7 percent year-on-year to Rs 2,425 crore supported by other income and higher revenue. The profit in the year-ago period was Rs 2,230.5 crore. Net sales jumped 14.8 percent (lower than expected) to Rs 8,930 crore in the quarter ended September 2014 compared to Rs 7,776 crore in same quarter last year.

Profit was estimated at Rs 2,458 crore on revenue of Rs 9,063 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.

Don't miss: Titan slips 7% on cautious growth outlook; analysts bearish 

Left over fire crackers of Diwali are still lighting up Dalal Street with some bumper gains. The Sensex is up 380.34 points or 1 percent at 27726.67 and the Nifty is up 110.75 points or 1.4 percent at 8279.95. About 1732 shares have advanced, 976 shares declined, and 105 shares are unchanged.

HDFC, Maruti, L&T, Tata Steel and Hindalco are top gainers in the Sensex. Among the losers are Bharti Airtel, HUL, ITC and ICICI Bank.

Japan's Nikkei stock average surged to a seven-year high and the yen tumbled to its lowest since early 2008 against the dollar on Friday as the Bank of Japan caught markets flat-footed with its surprise monetary easing decision.

The Bank of Japan surprised global financial markets by expanding its massive monetary easing as economic growth and inflation have not picked up as expected after a sales tax hike in April. The jolt from the BOJ, which had been expected to maintain its level of asset purchases, came as the government signalled its readiness to ramp up spending to boost the economy and as the government pension fund, the world's largest, was set to increase purchases of domestic and foreign stocks. More information please visit this site

Thursday, 30 October 2014

Record high: Sensex gains 300 pts, Nifty above 8250

10:55am Market Check

The 30-share BSE Sensex rose 297.82 points or 1.09 percent to 27644.15 and the Nifty jumped 89.10 points or 1.09 percent to 8258.30. About 1595 shares have advanced, 654 shares declined, and 88 shares are unchanged.

HDFC, Maruti Suzuki, Hero Motocorp, SBI, ONGC, IDFC and HCL Technologies gained 2-2.5 percent.

10:45am Interview

Hindustan Construction Company (HCC) reported second quarter standalone net profit at Rs 6.8 crore versus Rs 31.6 crore in the year-ago period. But the previous year’s profit figure included a big other income figure of Rs 116 crore, which led to a bottomline profit of Rs 31.6 cr for Q2FY14.

Praveen Sood, CFO of HCC says the company is trying to maintain profitability at these levels. He hopes that the next two quarters will be as good as the last six quarters.

He says the profitability margins are coming from efforts to bring down costs. The company is not seeing any major push on the order inflow side and the good margins reported is despite that. Order inflows from the government side has not picked up yet, says Sood. He expects government order inflows to pick up only from next year.

He says: "Realised Rs 400 crore of claims in the last two quarters which helped push margins." He hopes to realise similar claim amounts in the second half of the year.

HCC has Rs 4,000 crore stuck in arbitration. He expects the government to pay its dues in the next few months.

The company is seeing order inflow momentum only in the road sector as of now. But sectors such as hydro and nuclear power saw no pick up in order inflows. Sood hopes to end year with Rs 14500-15000 crore order book position.

10:30am Market Update

The market remained at record high. The Sensex rose 260.01 points or 0.95 percent to 27606.34 and the Nifty jumped 77.60 points or 0.95 percent to 8246.80.

About 1537 shares have advanced, 595 shares declined, and 88 shares are unchanged.

Titan Company, Tech Mahindra, IDFC, SBI, Maruti Suzuki, Bharti Airtel, TCS and Shriram Transport were the most active shares on exchanges.

In the midcap space, Relaxo Footwear, Gujarat Pipavav, Sintex Industries, HCC and SKS Microfinance jumped 5-6 percent while SRF, Responsive Industries, eClerx Services, Hindustan National Glass and FAG Bearings lost 2-4 percent.

10:15am Market Expert

There is a confluence of positives in India right now and that’s the reason things are turning constructive for the Indian market, says Dipen Sheth of HDFC Securities.

In an interview to CNBC-TV18, Sheth says the Nifty is currently in a multi-year, multi-themed, multi-faceted bull run.

On his sectoral prefences, Sheth says he likes special restautants and great fine-dining franchises. He also believes the midcap space has a lot of talented companies that can be invested into right now.

10:00am Market Check

Equity benchmarks continued to trade around their record highs with the Sensex rising 235.50 points to 27581.83 and the Nifty climbing 68.20 points to 8237.40 following strong US cues.

The broader markets too gained momentum with the BSE Midcap and Smallcap indices adding 1 percent each. About three shares advanced for every share declining on the Bombay Stock Exchange.

Technical Analysts Rajat Bose is bullish on the Indian market. He says that Nifty is in an uptrend and it could touch 8,250-8,300 going ahead. He recommends market participants to buy on dips.

Major largecaps like Reliance Industries, Infosys, HDFC, ITC, HDFC Bank, TCS, Larsen and Toubro, ONGC, State Bank of India and Axis Bank gained 1-1.6 percent.

Hero Motocorp, Tata Steel, Wipro, Tata Power, Dr Reddy's Labs, Coal India and Sesa Sterlite too climbed 1-1.6 percent.

However, Bharti Airtel (post Q2 earnings), Hindustan Unilever, ICICI Bank and Hindalco Industries were only losers in the Sensex. More Information please visit this site

Record opening: Nifty hits 8200, Sensex strong; IT leads

9:50 am Result poll: Utility vehicle maker Mahindra and Mahindra (M&M), which will announce its second quarter earnings on Friday, is expected to report a profit of Rs 946 crore as against Rs 989.5 crore in the year-ago period, according to the average of estimates of analysts polled by CNBC-TV18. Revenue is likely to be Rs 9,292 crore during the quarter compared to Rs 8,929.5 crore in same quarter last year. 

Operating profit expected to be at Rs 1,167 crore as against Rs 1,144 crore and margin may be at 12.5 percent compared to 12.8 percent during the same period.

Results are not comparable on year-on-year basis due to merger of loss making truck business. The company will provide the merged entity comparable numbers in the press release as they do every quarter.

9:40 am Nomura report: The government's austerity drive announced today , would lead to a saving of up to Rs 40,000 crore or 0.3 percent of the Gross Domestic Product (GDP) but poses risks to growth, Japanese brokerage Nomura has said. "On our estimates this would amount to a saving of Rs 35,000 to Rs 40,000 crore or 0.3 percent of the GDP," it said in a note issued here today. The finance ministry issued a circular today instructing government departments to cut discretionary spending by 10 percent. As part of these measures, it banned first class travel by government officials, meetings in five-star hotels, purchase of cars and froze new appointments.

Nomura said that the move may have been initiated as a precaution against potential shortfall in capital receipts, mainly disinvestment proceeds, where the government target is to raise 0.5 percent of GDP or over Rs 43,000 crore.

9:30 am Marlet outlook: India has been one of the biggest outperformer among the emerging market basket and its macros are seeing a sudden improvement, says Sanjeev Prasad of Kotak Institutional Equities. And it is this positivity that makes Prasad confident of India logging in 7 percent growth in 2017. In an interview to CNBC-TV18, Prasad says the new government has unleashed a lot of bold economic reforms in the past few days. “I expect the interest rates to come down sooner than is expected and India continues to grow fast,” he adds. On sectoral preferences, Prasad is bullish on private banks and autos and picks Maruti Suzuki and Hero MotoCorp as his best bets.

9:20 am Winners & losers: IT stocks are still leading the rally with Infosys, TCS and Wipro as major gainers in the Sensex. Among the losers are Bharti Airtel, HUL, ICICI Bank, Tata Motors and NTPC.
The market starts November series on a stellar note. The Nifty hit 8200 for the first time, up 32.15 points while the Sensex is up 92.73 points at 27439.06. About 499 shares have advanced, 91 shares declined, and 15 shares are unchanged.

Bhart Airtel, Infosys, ONGC, Cipla and Maruti are top gainers while Hindalco, HUL and Tata Motors are among the losers.

The Indian rupee opened marginally higher at 61.39 per dollar versus 61.45 Thursday.

The dollar held at four-week highs against a basket of major currencies, getting another boost from encouraging growth data a day after the Federal Reserve gave an upbeat assessment on the economy.
Pramit Brahmbhatt of Veracity said, "The positive sentiment in the equity market may support the currency. The rupee is expected to trade positively, though month-end dollar demand from oil importers will keep it under pressure. See the range for rupee between Rs 60.90-61.90/dollar."

Asian stocks rose on the final trading day of the week following positive US data overnight, with focus on developments in Japan.

US stocks jumped on Thursday with the Dow leading gains by over 1 percent following strong data releases. Third-quarter gross-domestic product (GDP) rose 3.5 percent, beating expectations, while a separate report showed that the underlying trend for first time weekly jobless claims is at its lowest level since 2000.

Brent crude was marginally lower as traders saw little chance of OPEC cutting output at its November meeting. From precious metals space, gold traded around USD 1200 an ounce its lowest level in nearly 4 weeks. More information please visit this site

Sensex at new closing high, Nifty ends Oct expiry at 8169

03:30 pm Market closing

The market ended with hefty returns. The Nifty ended at 8169.20 up 78.75 points or 0.9 percent, after breaking the all-time high of 8180. The Sensex was at record closing high, up 248.16 points or 0.9 percent at 27346.33. About 1569 shares advanced, 1354 shares declined and 120 shares were unchanged.

Reliance gained 3 percent while TCS, Hindalco, Infosys and GAIL were top gainers. On the losing side were Sesa Sterlite, M&M, Cipla, Tata Power and Hero.

03:16 pm Market data 

Nifty Put Call ratio is at 1.25 versus 1, highest in this series. Total market turnover above is Rs 10 lakh crore for first time ever. All IT stocks on Nifty trading in the green in range of 1-4 percent. NSE F&O turnover above Rs 5 lakh crore. ICICI Bank, Axis Bank are biggest contributors to Bank Nifty gain.

03:07 Market breaks record

The Nifty has hit record high on October F&O expiry day. The Nifty broke its all-time high of 8180. The 50-share index is up around 90 points. The Sensex is up 290.22 points or 1 percent at 27388.39. The Sensex is up 290.22 points or 1 percent at 27388.39. The market turnover is at record high.

02:30pm Interview

In an interview to CNBC-TV18 Gurunatha Reddy, CFO, said that Astra Microwave’s strong order book led to business growth and it executed a huge order in the quarter which had higher margins.

The company has won fresh orders worth Rs 50 crore in this quarter, he said.

The company’s net profit surged to Rs 23.4 crore in Q2 FY15 versus Rs 11.6 crore seen in the same quarter a year ago. Its net sales also rose to Rs 190.1 crore versus Rs 115.3 crore, on a year-on-year basis. The company maintains 12 percent PAT guidance for FY15.

02:00pm Market Check

Equity benchmarks continued to see strong buying interest in afternoon trade supported by oil & gas, FMCG, technology and HDFC group stocks. The Sensex rose 241.27 points to 27339.44 while the Nifty climbed 74.65 points to 8165.10.

About 1493 shares have advanced, 1318 shares declined, and 118 shares are unchanged.

In key earnings today, Maruti Suzuki hit a new high of Rs 3,297 after reporting a solid 28 percent growth in profit while ICICI Bank reported a 15 percent growth in profit to Rs 2,709 crore with weak asset quality. The stock declined marginally.

From the midcaps, YES Bank reported a strong quarter with 30 percent profit growth and Jubilant Foodworks disappointed with a 13 percent fall in profit.

Mark Mobius of Templeton EM says India has seen a revival in spirits, with GDP growth expanding at a robust 5.7 percent in the quarter ended June 30. He says, optimism surrounding Narendra Modi has been reflected in the equity market. More information please visit this site

Sensex up 200 pts, Nifty hits 8150; YES Bank at new high

12:30pm Coal e-auction

The government has begun the process of shortlisting agencies to develop e-auction platform for de-allocated blocks and it will approach information technology companies for the same.

Agencies will be invited to give infrastructure proposal of e-auction method. Sources told CNBC-TV18 that Mjunction and MSTC will be amongst few companies that will be approached to prepare the e-auction platform.

Meanwhile, the coal ministry is working on collecting database of mines and assets.

Compensation will have to be made to prior allottees on investment made until March 2014. Letters have already been issues to allottees asking for details of assets.

Watch accompanying video for further details

12:00pm Equity benchmarks extended gains in noon trade with the Sensex rising 205.05 points to 27303.22 and the Nifty climbing 62.75 points to 8153.20. About 1393 shares have advanced, 1167 shares declined, and 113 shares are unchanged.

Technology stocks rallied after stellar performance reported by Tech Mahindra that surged 4.30 percent. Tech Mahindra surprised the street with scond quarter dollar revenue growth at 5.2 percent and a constant currency growth higher than peers.

HCL Technologies too gained 4 percent followed by Infosys and TCS with 2 percent rally.

Dr Reddy's Labs, Gail, Reliance Industries, DLF, HDFC, and Larsen and Toubro jumped 1-3 percent followed by ICICI Bank, ITC, HDFC Bank, ONGC, Axis Bank, HUL and Wipro with more than 0.5 percent upmove.

However, Mahindra and Mahindra, Tata Motors, SBI, Tata Power, Bajaj Auto, BHEL and Sesa Sterlite fell 0.2-0.8 percent.

In the midcap space, DCM Shriram, Symphony, Puravankara Projects, Emami (post Q2 earnings) and Jaypee Infra rallied 6-7 percent while State Bank of Bikaner, Pipavav Defence, Raymond, HMT and State Bank of Travancore fell 4-6 percent.

YES Bank hit a record high of Rs 655.10, up more than 2 percent after reporting 30 percent growth in profit and 27.4 percent growth in net interest income in second quarter Y-o-Y. More information please visit this site