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Friday, 30 January 2015

Sensex slumps 499 pts, Nifty ends at 8809; banks bleed

3:30 pm Market end:

It was a difficult day for traders as bears rampaged the street with blood. Snapping 10-day of winning streak, the Nifty retreated from a kissing distance of 9000. The 50-share index ended first day of February F&O series at 8808.90, down 143.45 points or 1.6 percent. The Sensex slumped 498.82 points or 1.7 percent at 29182.95. About 1258 shares have advanced, 1609 shares declined, and 246 shares were unchanged.

Banks played spoilsport as Bank Nifty lost over 3 percent, dragged by ICICI Bank, SBI, HDFC twins and Axis Bank. Other losers in the Sensex were Dr Reddy's Labs and Coal India.

Tata Power remianed big gainer of the day (up 4 percent), while BHEL, NTPC, Sesa Sterlite and Wipro lead the Sensex.

3:20 pm Result: Dabur India matched street expectations on Friday with the third quarter consolidated net profit rising 16.4 percent year-on-year to Rs 282.8 crore.

"Dabur India ended the third quarter of 2014-15 with strong growth in its key categories of health supplements, hair care, toothpastes and home care. The growth was despite a challenging business environment and continued softer consumption trend across the industry," said the FMCG major in its filing.
Consolidated net sales grew 9.2 percent to Rs 2,074 crore during October-December quarter from Rs 1,899.6 crore in the year-ago period.

Toothpaste business for Dabur grew 19 percent during the quarter and home care business reported an over 16 percent growth while health supplements business grew 13.5 percent.

3:10 pm  3G spectrum auction: Government has issued details for auctioning 5 Mhz of 3G spectrum across 17 out of 22 service area at a pan-India base price of Rs 3,705 crore per megahertz. The quantum of spectrum in 2100 Mhz band (3G) being put for auction is 75 percent less than the quantum recommended by telecom regulator TRAI and demanded by industry. In the latest amendment to notice inviting application for spectrum auction set to start from March 4, the DoT has said that only one entity will be able to win 3G spectrum in one service area.

One block of 5 MHz has been put for auction in all service areas except Jammu & Kashmir, Bihar, Himachal Pradesh, West Bengal and Punjab. This amounts to a total of 85 MHz from which government estimates to garner Rs 17,555 crore. Of this a sum of Rs 5,793 crore is expected to be realised in the current financial year.

 3:00 pm Restructing: Adani Enterprises,  the flagship of the USD 9.4 billion Adani Group announced a complex restructuring of its various businesses.

Under the terms of the recast, Adani Enetrprises port business will be transferred to subsidiary Adani Ports and Special Economic Zone, its power businesses to Adani Power(APL), and transmission business to unlisted Adani Transmissions, which will subsequently be listed.

Also, Adani Mining Private Limited (AMPL), a wholly owned subsidiary of AEL is proposed to be merged into AEL. The scheme is subject to approvals from the stock exchanges, Sebi, shareholders, creditors and the Gujarat High Court.

2:50 pm Market check: The market is under tremendous pressure with the Sensex falling over 500 points. The 30-share index is down 554.86 points or 1.9 percent at 29126.91 and the Nifty slips 159.75 points or 1.8 percent at 8792.60. About 1113 shares have advanced, 1663 shares declined, and 246 shares are unchanged.

NTPC, Tata Power, Sesa Sterlite, BHEL and Hero MotoCorp are top gainers in the Sensex. Among the losers are ICICI Bank, SBI, Coal India, Dr Reddy's Labs and HDFC.

2:30 pm Coal India OFS update: Coal India offer-for-sale (OFS) is fully subscribed. The floor price of OFS was fixed at Rs 358/share, a discount of around 4.5 percent from Thursday closing price. The government will divest upto 10 percent stake via OFS, by selling 31.58 crore shares with an option to sell additional 31.58 crore share.

Till 1:55 PM , the PSU had recieved bid for 18.8 crore  (59.6 percent) of 31.58 crore base size

Don't miss: HCL Tech Q2 net up 2.3%, $ revenue rises 4%, bonus issue at 1:1 

The Nifty snapped 10-day winning streak today, falling below the 8800-mark weighed by banking & financials post disappointing set of earnings from the ICICI Bank and Bank of Baroda.

The Sensex dropped 518.47 points or 1.75 percent to 29163.30 and the Nifty lost 157.50 points or 1.76 percent to 8794.85. About 1161 shares have advanced, 1580 shares declined, and 242 shares are unchanged on the BSE.

ICICI Bank missed street expectations on Friday with the third quarter net profit rising 14 percent year-on-year to Rs 2,889 crore, impacted by higher provisions. Net interest income (NII ) grew 13.9 percent to Rs 4,812 crore during October-December quarter from Rs 4,225 crore in the year-ago period. The stock fell 6 percent.

Bank Of Baroda disappointed street on Friday by reporting a 68 percent (Y-o-Y) decline in profit at Rs 334 crore for quarter ended December 2014. Higher provisions and tax rate impacted the bottomline. The stock tanked 11 percent. More information please visit this site

Sensex, Nifty continue to drag over 1%; NTPC, BHEL gainers

1:50 pm Market outlook: A combination of low inflation, declining interest rates and strong corporate earnings growth will support the ongoing rally, feels Jeff Chowdhry, Senior Portfolio Manager, LGM.

In an interview Chowdhry says India’s macro economic fundamentals have improved significantly over the last year.

He says he is not worried about the market levels and basis his investment decisions on whether the outlook on fundamentals is positive and what are the other alternatives?

Art this point, very few emerging market stories are as good as that of India, Chowdhry says. He is bullish on private sector banks and select consumer names, and sees the rupee strengthening as the outlook on corporate earnings improves.

1:30 pm Result: Bank of Baroda disappointed street on Friday by reporting a 68 percent (Y-o-Y) decline in profit at Rs 334 crore for quarter ended December 2014. Higher provisions and tax rate impacted the bottomline. Profit of the public sector lender was expected at Rs 1,243.6 crore and net interest income at Rs 3,501 crore for the quarter, according to the average of estimates of analysts. Net interest income grew 7.5 percent to Rs 3,286 crore in the quarter ended December 2014 from Rs 3,057.1 crore in same quarter last fiscal. Net interest income is the difference between interest earned and interest expended.

Don't miss: Coal India slips 4% as OFS opens; brokerages bet on it

The market continues to be under sharp selling pressure. The Sensex is down 413.87 points or 1.4 percent at 29267.90, and the Nifty slips 118.35 points or 1.3 percent at 8834.

About 1139 shares have advanced, 1501 shares declined, and 251 shares are unchanged.

NTPC is up 2 percent while BHEL, Tata Power, Wipro and Hero are top gainers in the Sensex. Among the losers are SBI, HDFC, Coal India, Dr Reddy's Labs and TCS.

Overseas investors have remained the backbone of the rally, with net purchases of USD 2.1 billion so far this month till Thursday, provisional exchange and regulatory data showed.

Gold prices rose by Rs 73 to Rs 27,482 per 10 gram in futures trade as speculators engaged in enlarging positions amid a better trend overseas. Analysts said the rise in gold prices at futures trade was mostly in line with a firming trend overseas where the precious metals advanced from a two-week low on easing of selling pressure. Meanwhile, gold rose as much as 0.4 per cent to USD 1,262.07 an ounce in Singapore. More information please visit this site

Thursday, 29 January 2015

Record high opening: Nifty races towards 9000, Sensex firm

9:50 am Market outlook: The market is technically overbought and unlikely to rise much in the near term, feels Sanjay Dutt of Quantum Securities. He compares the ongoing rally with the frenzied bull market of 2007-08, and says the recovery in corporate earnings has already been discounted.

In an interview  Dutt says the market still looks from a medium term perspective, but the government needs to address the issues being faced by small and medium sized companies.

He expects liquidity flows to be strong, but the supply of share offerings is expected to cap market gains.
Dutt is bullish on financial services and banking stocks, and is betting on capital goods and EPC (engineering procurement and construction) companies to play the domestic recovery.

9:40 am Buzzing: Shares of HCL Tech surged 11 percent, hitting record high at Rs 1834 per share intraday after it posted stellar December quarter earnings.

The fourth largest software services exporter in India, surpassed street expectations on every parameter by reporting 2.3 percent sequential growth in profit after tax at Rs 1,915 crore. Profit was expected at Rs 1,770 crore on revenue of Rs 8,950 crore for the quarter, according to the average of estimates of analysts polled.
Revenue grew 6.3 percent quarter-on-quarter to Rs 9,283 crore and dollar revenue rose 4 percent to USD 1.49 billion during October-December quarter (as against expected dollar revenue of USD 1.477 billion).

9:30 am Brokerages on OFS: Brokerages are mixed on Coal India with Edelweiss upgrading it to buy with a target price of Rs 442 per share. It feels that volumes push and government’s sharp focus on doubling CIL’s production by FY20 will bring cheer to the stock. Edelweiss also says that saving from low diesel prices to aid margin expansion as every Rs 1/litre drop in fuel cost saves Rs 100 crore for Coal India.

Nomura has a buy rating with a target of Rs 443 per share. "As has historically been the case, we believe Coal India may well consider declaring an interim dividend next month. As investors who buy stocks in the upcoming OFS would be allocated shares on February 2/3, prospects of an imminent interim dividend may well act as a sweetener,” Nomura says.

However, JP Morgan is underweight on the stock with a price target of Rs 325 per share as given the stake sale there is less room for a repeat of last year’s dividend. “There is no explicit dividend policy in place and hence predicting dividend is difficult. However, the combination of a stake sale and potentially lower dividends should result in the stock being under pressure,” it says in a note.

Don't miss: Asia rallies as oil gets a reprieve; earnings in focus

It is a record high opening as the Nifty approaches 9000-mark on first day of February F&O series. The 50-share index is up 44.20 points at 8996.55. The Sensex is up 140.11 points at 29821.88, and the Nifty About 497 shares have advanced, 115 shares declined, and 151 shares are unchanged.

Coal India is down 4 percent as its offer-for-sale opens today. Bharti Airtel, HDFC, Tata Motors, SBI and Sesa Sterlite are top gainers in the Sensex.

The Indian rupee has opened at 61.79 per dollar, up 7 paise compared to previous day's closing value of 61.86 a dollar.

Pramit Brahmbhatt, Veracity says continuation of FII inflows coupled with some profit booking in local equities may impact the rupee in trade today. He expects USD-INR to trade in the range of 61.40-62.40/USD.

US markets bounced back from a two-day rout, led by a reverse in the price of crude and strong job market data. European markets closed mixed on Thursday, with a sharp decline in Shell shares hitting the UK's FTSE 100 index and Asian markets were trading higher in morning trade on a positive US handover.

In commodities, Nymex Crude held steady around USD 44 dollars per barrel as US jobless data signaled further strength in economy. Brent crude was trading around USD 49. Gold edged higher after falling more than 2 percent to a two-week low overnight on concern over a looming increase in US interest rates. More information please visit this site

New high: Nifty ends Jan expiry at 8952, Sensex up 123 pts

03:30 pm Market close

The market ended at record closing high on expiry of January F&O series. The Nifty ended at 8952, up 38.05 points while the Sensex was up 122.59 points at 29681.77. Top gainers in January series were DLF (up 26.6 percent), Tata Motors (up 24 percent) and Axis Bank (up 21 percent). Nifty gained 9.5 percent while Bank Nifty surged 10.7 percent in the series.

In today's trading session, Dr Reddy's Labs, HDFC Bank, BHEL, Reliance and ITC were top gainers in the Sensex. Among the losers were HDFC, SBI, M&M, Coal India and Maruti Suzuki.

03:10 Rights issue

Tata Motors intends to utilise Rs 7,500 crore, which it plans to raise via a rights issue, to fund various activities, including introduction of more than 100 new commercial vehicles over the next three years and passenger vehicles on a new modular platform from FY 2016-17.

The company, which is seeking shareholders’ approval through postal ballot for raising funds up to Rs 7,500 crore through a rights issue of ordinary shares, also intends to use the funds to expand in international markets.

“The rights issue proceeds are expected to be utilised to finance a portion of the ongoing capital expenditure, including product development expenses; invest in subsidiaries to support future growth opportunities in India and abroad,” Tata Motors said in a filing to the BSE.

2:55 pm Royalty restrictions?

The Finance Ministry has turned down a DIPP proposal seeking re-introduction of restrictions on royalty payments for preventing excessive outflow of foreign exchange, saying it would send a negative signal to overseas investors.

The ministry, according to sources, is of the view that imposing restrictions on royalty payments will be "retrograde step" and not in sync with the liberalised FDI policy environment. Worried over excessive outflow of foreign exchange as royalty and fees for technology transfer, and use of brand names, the Department of Industrial policy and Promotion (DIPP) had mooted a proposed to re-introduce restrictions on such payments by foreign companies to their parent entities.

02:40 pm Results

Commercial vehicle maker Ashok Leyland turned profitable in the quarter ended December 2014. Net profit for the quarter stood at Rs 32.1 crore against loss of Rs 167.2 crore in the year-ago period. Higher other income and lower finance cost supported the profitability but tax cost restricted profit growth.

Topline and operational performance beat street estimates while the bottomline slightly missed expectations. Profit was expected at Rs 35.8 crore on revenue of Rs 3,195 crore for the quarter, according to the average of estimate of analysts.

Revenue shot up 72.1 percent year-on-year to Rs 3,361 crore, driven by strong sales volume growth.

Total volumes during the quarter grew 38 percent on yearly basis to 25,397 units led by medium and heavy commercial vehicle (MHCV) sales. MHCV volumes saw a solid 70 percent growth while light commercial vehicle sales declined 8 percent Y-o-Y.

02:30pm Adani Enterprises in focus

Adani Enterprises plans to announce a mega restructuring plan tomorrow reports’s Varinder Bansal quoting sources.

The restructuring is mainly to remove the holding structure and then focus on the core business of the left entity, which would be mining, trading, agri, logistics etc.

The current market cap of Adani Enterprises is Rs 65,000 crore because it owns 74.99 percent in Adani Ports and 68.99 percent in Adani Power.

Post the restructuring process, the company is also looking at raising funds.

Post restructuring, analysts do not expect a huge upside for the stock from current levels but it will undoubtedly be a clean structure.

02:00pm Market Check

Equity benchmarks as well as broader markets continued to consolidate on expiry day for the January derivative contracts. Weak global cues and expiry factors kept markets subdued.

The 30-share BSE Sensex fell 101.55 points to 29457.63 and the 50-share NSE Nifty declined 31.95 points to 8882.35. About 1290 shares have advanced, 1475 shares declined, and 260 shares are unchanged on the Bombay Stock Exchange.

Manish Gunwani of ICICI Prudential AMC expects a correction or minor consolidation in the near term. However, the market looks good with a 2-3 years perspective, he say.

Global markets are weak today. Asian markets like Shanghai closed with losses of more than 1 percent while European equities like FTSE traded down more than 0.5 percent as oil declined and Greece weighed. NYMEX crude traded at USD 44 a barrel, the lowest level since March 2009.

Telecom stocks like Bharti Airtel, Idea Cellular are under pressure after the Cabinet approved 3G auction reserve price at Rs 3,705 crore which is 36 percent higher than the TRAI recommendation and 10.6 percent higher than the previous 3G auction held in 2010.

In key earnings reactions today, Asian Paints disappointed after Q3 profit rose 12 percent, lower than expectations of 30 percent growth. The stock fell 3 percent. HDFC dropped over 2 percent after the housing finance company reported 11.5 percent growth in profit, in line with estimates. However, Dr Reddy's Labs reported a 7 percent fall in profit in Q3, which is higher compared to expectations of 14 percent decline. In midcaps, VIP Industries and OBC tanked 7 percent after weak numbers. More information please visit this site

Sensex, Nifty under pressure; Dr Reddy up 3%, SBI falls

1:30 pm Earnings: HDFC, India’s largest housing finance company, said its third-quarter net profit stood at Rs 1,425.5 crore, rising 11.56 percent from Rs 1,277.7 crore in the same quarter last year. A poll of analysts had forecast this Rs 1,426 crore. Income from operations rose 12.9 percent to Rs 6,758.4 crore. Its loan book, as of December 31, 2014, stood at Rs 2.19 lakh crore, compared to Rs 1.92 lakh crore on December 31, 2013.

1:20 pm Results: Dr Reddy's Laboratories beat street expectations on topline and bottomline front but the operating performance was below estimates. Consolidated net profit of the drug maker fell 7 percent 
year-on-year to Rs 574.5 crore, impacted by weak operational performance. Higher finance cost and R&D expenses also affected the profitability.

Profit was expected at Rs 534.3 crore on revenue of Rs 3,617 crore for the quarter, according to the average of estimates of analysts polled.

Consolidated revenue grew 8.7 percent to Rs 3,843 crore during October-December quarter from Rs 3,533.8 crore in the year-ago period.

Don't miss: HDFC Bank, Lupin gain 2% hopes to rake in more foreign moolah

The market is still under pressure. The Sensex is down 91.17 points at 29468.01. The Nifty is down 31.90 points at 8882.40. About 1262 shares have advanced, 1358 shares declined, and 259 shares are unchanged.

Dr Reddy's Labs, Reliance, HDFC Bank, Hero MotoCorp and HUL are top gainers in the Sensex. Among the top losers are Coal India, HDFC, Bharti Airtel, SBI and ICICI Bank. 

The rupee fell by 12 paise to 61.53 against the American currency in late morning trade today on month-end dollar demand from importers. The rupee resumed lower at 61.44 as against yesterday's closing level of 61.41 at the Interbank Foreign Exchange (Forex) and moved down further to 61.54 before quoting at 61.53 at 1100 hours. The local currency hovered. More information please visit this site

Wednesday, 28 January 2015

Nifty struggles below 8900; HDFC Bank, Lupin, RIL support

The market remained under pressure in morning trade following weakness in global markets post Fed meet and ahead of big offer for sale of Coal India on Friday. Banking & financials, metals, telecom and select technology stocks dragged the market while Reliance Industries, HDFC and L&T supported the market.

The Sensex fell 150.68 points to 29408.50 while the Nifty lost 42.45 points to 8871.85 ahead of expiry of January derivative contracts today. However, the broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising marginally.

Yogesh Radke, head of quantitative research at Edelweiss Securities is of the view that with rights issues, offer for sale, divestments, fund raising in the pipeline, there could be large supply in the market, so one needs to be a bit cautious at present and unwind long leverage positions.

The leverage positions in the Futures market have gone as high as Rs 1 lakh crore, he adds.

In an interview he says, although the India story is still intact, the Nifty is likely to consolidate or correct around 4 percent and see levels of 8600-8500. According to him 9000 levels would act as strong resistance.

Coal India dropped nearly 4 percent ahead of stake sale by the government tomorrow. HDFC, ICICI Bank, Sun Pharma, ONGC, Bharti Airtel and Mahindra & Mahindra declined 1.4-2.4 percent.

However, HDFC Bank and Lupin gained more than a percent on CCEA clearance for foreign investment in company. Reliance Industries climbed over a percent followed by L&T, HUL, Wipro and Hero Motocorp with 0.3-0.9 percent upside.

Dr Reddy's Labs gained 0.4 percent ahead of Q3 earnings. According to a poll, profit is expected to fall 13.6 percent year-on-year to Rs 534.3 crore. More information please visit this site

Sensex ends in red, Nifty at new closing high; HDFC up 2%

03:30 pm Market closing

The market ended flat after a volatile session ahead of F&O expiry. The Nifty ended at record closing high up 3.80 points or at 8914.30. The Sensex snapped 8-day gains, down 11.86 points at 29559.18.

03:00 pm Rights issue

State Bank of India (SBI) will raise Rs 15,000 crore through a public offer including rights issue to fund business and meet global capital adequacy norms.

"The committee of the Directors for capital raising has decided to seek government or RBI approval for raising capital up to Rs 15,000 crore by way public issue...," SBI said in a statement.

The bank requires adequate capital to match the anticipated growth in asset and comply with stipulated level of capital adequacy, it said.

The fund, SBI said ,would be raised either through follow on public issue, qualified institutional placement, rights issue, private placement, Global Depository Receipt, American Depository Receipt or combination of these.

02:50pm Sadbhav Engineering in News

Gammon Infra is set to acquire Sadbhav Engineering’s 20 percent stake in Mumbai-Nasik Expressway for Rs 72 crore. The company already owns the majority 80 percent in the BOT project.

Kishor Kumar Mohanty, MD, Gammon Infrastructure, said it makes an investment sense for both parties as Sadbhav was a minority stakeholder.

“As far as funding is concerned, it will be mostly through internal accruals but our monetization option in different operational projects is possible,” Mohanty said, adding that the company is also on the verge of completing three more projects in the next couple of months, which will give it a little headroom for “financial manoeuvring."

02:30pm Ajanta Pharma hits 52-week high

Ajanta Pharma's third quarter net profit jumped 23 percent year-on-year to Rs 84.7 crore led by strong growth in topline and operational income.

Net sales rose 21.8 percent to Rs 356.3 crore in the quarter ended December 2014 from Rs 292.6 crore in same quarter last fiscal. "Domestic business grew 35.6 percent Y-o-Y to Rs 135.4 crore and exports (which contributed 61 percent to total revenue) jumped 15 percent to Rs 224.08 crore during the quarter," said the company in its filing.

Emerging markets business reported a 15 percent growth year-on-year at Rs 223 crore and Africa business grew 4 percent to Rs 110 crore during the quarter. Asian region showed 25 percent growth at Rs 109 crore while Latin America revenue jumped 112 percent to Rs 4 crore.

Operating profit (EBITDA) spiked 40.6 percent on yearly basis to Rs 125 crore and margin surged 470 basis points to 35.1 percent in the third quarter of current financial year 2014-15.

02:00pm Market Check

The market is volatile with negative bias today, after hitting a record high of 8985 on the Nifty and 29708 on the Sensex. Capital goods, metals, power and select banks stocks. However, HDFC and Reliance Industries continued to support the market.

The 30-share BSE Sensex fell 130.54 points to 29440.50 and the 50-share NSE Nifty slipped 29.55 points to 8880.95. Nearly two shares declined for every share advancing on the Bombay Stock Exchange.

Pramod Gubbi of Ambit Capital recommends buying India with a 2-3 years perspective. However, he says underlying recovery and corporate earnings are not upto mark yet.

Ranbaxy Labs fell 2 percent as the drug maker's third quarter net loss widened to Rs 1,030 crore compared to loss of Rs 159 crore in the year-ago period. Higher forex loss of Rs 132.6 crore (versus gain of Rs 10.1 crore Y-o-Y) and tax expenses of Rs 888.2 crore (Rs 98.1 crore in Q3FY14) impacted the bottomline.

Bharti Airtel topped the selling list, down nearly 5 percent followed by L&T, Tata Motors, Sesa Sterlite, HDFC Bank, Sun Pharma, HUL, Cipla, BHEL and Tata Steel with 1.4-4 percent loss.

However, HDFC gained more than 2 percent.

It is a mixed bag across global markets today. Asian markets like Shanghai closed with losses of more than 1 percent while Korea and Nikkei ended in the green. European markets are higher. Fed policy decision later this evening will be watched closely.

In the commodities space, the onslaught on crude continued, Brent crude fell more than 1 percent to USD 49 a barrel post a surge in US crude stockpiles and ahead of FOMC decision today. More information please visit this site