10:45am Infosys to
kick off Q3 earnings season on Friday
Infosys, the second largest software services exporter in
India, is expected to report a 1.9 percent growth in profit at Rs 3,157 crore
(excluding forex loss/profit) for the quarter ended December 2014, according to
the average of estimates of analysts polled Profit in the previous quarter was
Rs 3,096 crore.
Revenue may jump by 3.3 percent sequentially to Rs 13,783
crore and dollar revenue may increase by 1 percent quarter-on-quarter to USD
2,222 million during October-December quarter.
Analysts believe the quarterly performance of the company
may be impacted by seasonal weakness and cross currency headwinds. Weak outlook
during the quarter from TCS already tempered expectations of a positive
surprise by IT companies. Hence, reported dollar revenue growth at 1 percent
may be lower than constant currency growth of 2.5 percent.
Earnings before interest and tax (EBIT) may grow 2.7 percent
quarter-on-quarter to Rs 3,576 crore but margin may be flat at 25.95 percent in
the quarter ended December 2014 compared to 26.1 percent in previous quarter.
10:30am Kotak, ING in
focus
Shareholders have approved merger of Kotak Mahindra Bank and
ING Vysya Bank with a share exchange ratio of 725:1000.
“The amalgamation was approved by 99.30 percent in number
representing 99.93 percent in value of the shareholders present. The merger is
subject to the approval of Reserve Bank of India (RBI), Competition Commission
of India (CCI) and such other approvals as may be required,” a press statement
said.
The extraordinary general meeting (EGM) of the members of
ING Vysya Bank and Kotak Mahindra Bank was held in Bengaluru and Mumbai
respectively.
The merger will be done through a share swap in which 725
equity shares of Rs 5 each of Kotak Mahindra will be issued for every 1,000
shares of Rs 10 each held in ING Vysya Bank.
Post the merger that
was announced on November 20, 2014, Kotak Mahindra Bank will become the fourth
largest private sector lender in India. The biggest three are ICICI Bank, HDFC
Bank and Axis Bank. The combined banking entity will have a widespread network
of 1214 branches across the country.
However, employees and officers of ING Vysya Bank had
expressed concerns over their future post the merger.
10:15am FII View
Jyotivardhan Jaipuria, Bank of America Merrill Lynch says
earnings growth, which weakened last quarter, is unlikely to recover in Q3FY15
with headline Sensex profit growth at a mere 4.2 percent on a consolidated
basis and ex-oil growth at only 6 percent.
“A quarter of the Sensex companies are expected to a show a
drop in profits. This is in-line with our view that earnings will recover
gradually and show sharp growth from H2FY16,” he adds.
“Near-term, we continue to expect markets to be rangebound
with bouts of correction due to slower than expected growth," says
Jaipuria.
10:00am Market Check
Equity benchmarks saw some profit booking at higher levels
but the Sensex still held above the 27000 level supported by banking &
financials, capital goods, FMCG and auto stocks.
The index rose 220.78 points to 27129.60 and the Nifty
gained 72.70 points at 8174.80. The broader markets outperformed benchmarks
with the BSE Midcap and Smallcap indices rising 1.5 percent each.
More than five shares advanced for every share declining on
the Bombay Stock Exchange.
Shares of HDFC Bank, HDFC, Tata Motors, ICICI Bank and State
Bank of India were major contributors to the Sensex gains, up 1-2 percent.
Hindustan Unilever, Sun Pharma, Maruti Suzuki, Bharti Airtel, Wipro, Coal
India, Cipla, NTPC, BHEL and Tata Power surged 1-2 percent.
However, ONGC, Reliance Industries and Sesa Sterlite were
only losers in the Sensex, down 0.3-0.8 percent.
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