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 www.bigprofitbuzz.com
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