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Monday, 10 November 2014

BSE Sensex, Nifty succumb to selling pressure; ITC soars 3%

1:50 pm Subsidy burden woes: Shares of Gail India fell 2 percent intraday on subsidy burden concerns. The state-run natural gas transmission company has told CNBC-TV18 that Oil Ministry has asked it to pay Rs 500 crore subsidy for September quarter. The amount will be accounted for subsidy payment in the third quarter ending December 2014.

There was no subsidy sharing (with oil marketing companies) in July-September quarter as against Rs 500 crore in June quarter and Rs 700 crore in the year-ago period. Its zero subsidy sharing also boosted profitability in Q2 as net profit more than doubled sequentially to Rs 1,303 crore.

Net sales grew by 5 percent to Rs 14,063 crore in the quarter ended September 2014 compared to Rs 13,337 crore in the same quarter last year.

1:30 pm Result impact: Shares of L&T slipped around 3.5 percent intraday as its revenue growth in September quarter were not impressive.

However, brokerages are still enthused about the stock. CLSA maintains a buy rating as it believes domestic economy is already showing some signs of revival which bodes well for the core business of L&T.

Macquarie also rates it outperform with a target of Rs 1922 per share stating Q2 performance was reasonable given extremely tough operating environment.  According to the firm, L&T is set for turnaround in a number of subsidiaries.

Citi remains neutral on the stock hoping L&T will benefit immensely from domestic economic recovery and 10 percent revenue growth is more likely in FY15.

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The market is slipping away succumbing to selling pressure. The Sensex is down 89.36 points at 27779.27 and the Nifty is down 26.15 points at 8310.85. About 1293 shares have advanced, 1449 shares declined, and 115 shares are unchanged.

ITC and Sun Pharma are up over 3 percent each, while Coal India, BHEL and Hero MotoCorp are top gainers in the Sensex. Among the losers are ONGC, L&T, Tata Motors, Hindalco and GAIL.

Asian shares gained on Monday after US jobs data pointed to solid economic growth, with Hong Kong leading the gains after regulators set a date for a long-awaited trading link between the Hong Kong and Shanghai stock exchanges to open.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.2 percent, led by 1.8 percent gains in Hong Kong. Chinese stocks rose after regulators announced that the long-awaited pilot programme allowing cross-border investment between the Shanghai and Hong Kong stock markets will launch on November 17. More information please visit this site

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