10:40am Interview
The festive season was a disappointment and the outlook for the automobile
industry is likely to remain grim for this year, says RC Bhargava, chairman,
Maruti Suzuki.
According to the auto industry veteran, the worst is not yet over for the
sector. He, however, admits that the growth in November picked up
though whether it will be sustainable or not is yet to be seen.
Speaking to CNBC-TV18, Bhargava adds that though exports have increased
substantially, they may not salvage the growth for the entire sector as the
total volume of exports is still a very small part of the production.
The current fall in crude prices to below USD 65 per barrel level is a
positive for the company as it reduces the cost of production significantly.
10:20am Market Expert
Crude is the big theme that will drive market trend in the near to medium
term, says Raamdeo Agrawal, Joint MD, Motilal Oswal.
In an interview to CNBC-TV18, he says that falling crude is a bigger theme
than even the change of government at the centre earlier this year.
“Provided the fall in crude prices is sustainable and not just a one-quarter
phenomenon,” Agrawal added as a caveat.
He sees petrochemical companies posting huge losses in the September quarter
because of the steep decline in their inventory of crude. However, it will fire
up the earnings of many companies whose raw material prices are linked to
crude.
Agrawal says it will give a big boost to the earnings of consumer companies as it will be upto them to decide how much of the benefits they would like to pass on. Commodity companies will have no such advantage as they will have to pass on the fall in commodity prices.
10:00am Market Check
The 50-share NSE Nifty managed to hold the 8300 level amid consolidation, up
13.45 points at 8306.35 while the Sensex rose 35.56 points to 27637.57. The
broader markets outperformed benchmarks with the BSE Midcap and Smallcap
indices rising more than 0.5 percent.
More than two shares advanced for every share declining on the Bombay Stock
Exchange.
Telecom stocks like Bharti and Idea Cellular rebounded, up 1-2 percent as
the defence ministry agreed to release 5 MHZ of spectrum in the 2100 MHZ which
is likely to be auctioned next year. Also a proposal to swap 5 MHZ spectrum in
2,100 MHZ band, with similar quantity in 1,900 MHZ band is currently underway.
This increased supply will reduce the pressure on telecom companies bidding for
900 MHZ.
Onmobile Global gained 5 percent as the board approved a buyback of upto Rs
49 crore worth of shares at a maximum price of Rs 86 per share which is a 20
percent premium to current price.
Exide Industries climbed over 1.5 percent as Citi upped target price to Rs
200 from Rs 193 earlier, citing decline in lead costs.
Bharat Electronics gained 1 percent as Russia and India signed pact to
manufacture nuclear and defence parts in India.
IL&FS Engineering shot up 10 percent after its subsidiary Maytas Infra
Saudi Arabia bagged an order worth Rs 464 crore contract in Saudi Arabia with a
completion period is 32 months.
Pricol climbed over 7 percent as it proposed to acquire 99.99 percent stake
in a Brazil-based auto component manufacturing company through its wholly-owned
subsidiary in Spain. This acquisition will help to make it enter the Brazilian
auto component industry. Pricol said the acquisition is expected to be
completed by the end of January 2015. More information please visit this site www.bigprofitbuzz.com
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