03:35 pm Market closing
The market
has ended on an uptrend. The Sensex was up 321.32 points or 1.2 percent at
26429.85 and the Nifty was up 99.70 points or 1.3 percent at 7879.40. About
1634 shares have advanced, 1212 shares declined, and 111 shares are unchanged.
ONGC,
Hindalco, Coal India, Axis Bank and Tata Motors are top gainers in the Sensex.
Among the losers are Wipro, Infosys, TCS, ITC and Reliance.
03:10 Earnings
Liquor
maker United Spirits has posted a net loss of Rs 55.6 crore in the quarter
ended June 2014 as against profit of Rs 118.13 crore in same quarter last year
on account of exceptional loss.
The
company has made a provision of Rs 42.7 crore for diminution in value of
investment in subsidiaries, which resulted in a loss on bottomline front.
Numbers
were lower than analysts' expectations. According to the average of estimates
of analysts polled by CNBC-TV18, profit was expected at Rs 100 crore on revenue
of Rs 2,340 crore for the quarter.
Revenue
declined 11 percent to Rs 1,924 crore in April-June quarter of current
financial year 2014-15 compared to Rs 2,161 crore in the year-ago period.
02:45 pm Results impact
Investors
added more shares of Axis Bank on Monday as brokerage houses raised target
price on the stock after the company's second quarter earnings met street
expectations. The stock rallied nearly 4 percent intraday.
India's third
largest private sector lender's net profit climbed 18.3 percent year-on-year to
Rs 1,611 crore led by higher other income and net interest income but impacted
by higher provisions. The CNBC-TV18 poll had expected it at Rs 1,612 crore for
the quarter.
While
maintaining outperform rating on the stock, Credit Suisse raised earnings per
share estimates by around 2 percent on higher-than-expected net interest
margin. "With better-than-expected NIMs and pick-up in fees,
pre-provisional profitability has improved. Valuation is inexpensive at 1.8x
book, for 18 percent return on equity and 21 percent EPS CAGR," it
elaborated.
02:20pm Gainers and losers
ONGC maintained its uptrend, up over 6 percent
on gas price hike followed by Tata Motors, HDFC, ICICI Bank, Larsen and Toubro,
Axis Bank, State Bank of India, Hindalco Industries and Gail India with 2-5
percent gain.
However,
Infosys (down 0.8 percent), Wipro (down 1.5 percent) and TCS (down 0.3 percent)
were under pressure in afternoon trade.
02:00pm The market maintained its morning
gains with the Sensex rising 328.89 points or 1.26 percent to 26437.42 and the
Nifty climbing 97.15 points or 1.25 percent to 7876.85.
Advancing
shares ountumbered declining ones by a ratio of 1593 to 1042 on the Bombay
Stock Exchange.
Ridham
Desai, Morgan Stanley says equities look appealing because of the potential
earnings upside. "India's stellar performance this year has been driven by
hopes of reform momentum following strong election results, a likely turn in
the economic cycle and benign global conditions," he adds.
According
to him, even as the market looks fair or better than fair on valuations
relative to bonds and emerging markets, an upturn in the earnings cycle will
likely support valuations. Over the coming two years, he sees earnings
compounding at 19.8 percent and 15.5 percent for the Sensex and broad market,
respectively.
UltraTech
Cement rallied over 5 percent following higher-than-expected earnings in
July-September quarter. Net profit shot up 55.24 percent year-on-year to Rs 410
crore on strong topline, operational and other income, and lower tax rate but
impacted by higher finance, power and freight cost. Revenue during the quarter
grew by 20 percent to Rs 5,429 crore driven by higher cement sales volumes.
CLSA maintains a buy on the stock with a revised target price of Rs 3150.
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