Sensex struggles at 26000; banks, FMCG, capital goods gain

11:30am Interview

 

Print media major DB Corp expects its Maharashtra business to become profitable by March this fiscal, Pawan Agarwal, deputy managing director at DB Corp said in an interview to CNBC-TV18. 

Agarwal said the Bihar business was doing well and the company was maintaining its leadership position in the Patna newspaper market.

 He expressed hope that reforms by the government to revive the economy would help the company grow in the current half of this fiscal. 

11:00am Market Check

 

The market remained lacklustre ahead of Maharashtra and Haryana Assembly elections results in the weekend. The Sensex declined down 29.09 points to 25970.25 and the Nifty slipped 7.20 points to 7741.

 The broader markets too were down with the BSE Midcap and Smallcap indices falling 0.2-0.3 percent. About 916 shares have advanced, 1252 shares declined, and 85 shares are unchanged on the Bombay Stock Exchange.

 Banking and financials, capital goods and FMCG stocks saw buying interest while oil & gas, metals and select technology stocks were under pressure. 

TCS kept its position in the selling list, down nearly 8 percent followed by Sesa Sterlite, Tata Motors and Hindalco Industries with a 3 percent loss. However, ITC, ICICI Bank, M&M, L&T, Bharti Airtel, SBI, BHEL and Axis Bank gained 1-3 percent. 

In the midcap space, Shoppers Stop, NBCC, Responsive Industries, Alstom T&D and Trent surged 3-6 percent while CMC tanked 14 percent post the boards of directors of company and TCS announced merger of both companies. Atul, Rallis India, Amtek Auto and Trinity Trade lost 5-10 percent. More information please visit this site www.bigprofitbuzz.com

Sensex, Nifty flat; TCS, HCL Tech tank 6-7% on earnings

09:56am FII View

 

Caesar Maasry of Goldman Sachs says MSCI Emerging Markets (EM) Index has fallen 11 percent since the early September peak, but unlike Developed Markets (DM) equities, the pace has softened in recent days. "Cyclical equities in developed markets are underperforming, but the flat performance of our China growth cyclicals basket suggests that growth concerns were discounted earlier," he adds. 

According to him, EM equities may remain relatively defensive vs developed markets in the near term. 

09:35am Crompton Greaves under pressure post earnings

 

Crompton Greaves missed street expectations on every parameter with the second quarter consolidated net profit rising 19 percent year-on-year to Rs 69.6 crore. Profit in the year-ago period was Rs 58.41 crore. The stock fell nearly 2 percent. 

According to the average of estimates of analysts polled by CNBC-TV18, profit was expected at Rs 80.2 crore on revenue of Rs 3,508 crore for the quarter. 

Consolidated net sales grew by 5.8 percent to Rs 3,430.3 crore in the quarter ended September 2014 compared to Rs 3,241.35 crore in corresponding quarter of last fiscal. 

09:15am Market Check

Equity benchmarks started of Friday's trade on a positive note post yesterday's sharp cut but it could not sustain those gains. It got back to consolidation mode with the Sensex rising 2.70 points to 26002.04, and the Nifty falling 4.60 points to 7743.60. 

About 781 shares have advanced, 373 shares declined, and 33 shares are unchanged.

Hero Motocorp gained 1.68 percent post a 58 percent jump in second quarter net profit. Bharti Airtel, M&M, ITC, HUL, Zee Entertainment (ahead of earnings) and Asian Paints rallied 1.2-1.7 percent. 

TCS tanked 7.41 percent on profit booking and lower than expected revenue numbers in the quarter ended September 2014. HCL Technologies crashed over 6 percent after its revenue missed expectations. Tech Mahindra was down 4.53 percent.

 Sesa Sterlite, Wipro, Tata Motors, Hindalco, and DLF were other losers. 

The Indian rupee has opened higher by 15 paise at 61.68 a dollar on Friday compared to previous day's closing value of 61.83 a dollar. 

Pramit Brahmbhatt, Veracity feesl local equity market is likely to trade sideways and will take cues from global markets for further directions. He expects the rupee to trade firm after yesterday's fall although the strength in the dollar will keep the currency under pressure.

 According to him, the rupee is expected to trade in the range of Rs 61.40-62.40/USD. 

The dollar recovered given the relative strength of the US economy and the Federal Reserve's commitment to tighten monetary policy. 

On the global front, Asian markets were trading mixed with the Nikkei falling marginally. US stocks ended little changed, with the Dow industrials recouping much of a 206-point deficit, as investors balanced worries about global growth against mostly better-than-expected US earnings and economic reports.

 In Europe, shares closed lower after trimming losses in late afternoon trade, tracking US markets which partially recovered after visiting correction territory, even as fears surrounding Greece's stability resurfaced. 

In commodities, Brent crude rises to USD 86 per barrel buoyed by robust economic data and as US gasoline inventories last week fell to their lowest in nearly two years. More information please visit this site www.bigprofitbuzz.com

Sensex closes below 26000, sheds 350 pts; Hindalco down 6%

03:30pm Market Closing

 

Equity benchmarks saw huge selling pressure in last hour of trade following weak Euroepan cues and drop in rupee. The Sensex fell 349.99 points or 1.33 percent to close at 25999.34, and the Nifty was down 115.80 points or 1.47 percent to 7748.20. 

About 777 shares have advanced, 2155 shares declined, and 91 shares are unchanged. 

The broader markets too saw big crack; the BSE Midcap and Smallcap indices losing 1.4 percent and 2.5 percent, respectively. 

All sectoral indices closed in the red. BSE Power, Capital Goods, Oil & Gas, Auto, IT, Bank and Healthcare indices were down 1-3 percent while ITC, Gail India and Coal India were only gainers in the Sensex, up around a percent. 

Hindalco Industries, Ultra Tech Cement, Grasim Industries, Mahindra and Mahindra, Sesa Sterlite, Tata Steel, Tata Power, Reliance Industries and BHEL topped the selling list, down 3-6 percent.

03:10pm Market Check

 Equity benchmarks widened losses in last hour of trade with the Sensex crashing 358.04 points or 1.36 percent to 25991.29 and the Nifty falling 117.30 points or 1.49 percent to 7746.70 while European indices dropped 2-4 percent. 

About 787 shares have advanced, 2083 shares declined, and 90 shares are unchanged.

 Hindalco Industries, M&M, Sesa Sterlite, Tata Power, Tata Steel, UltraTech Cement, Grasim Industries and HCL Technologies (ahead of earnings on Friday) plunged 3-5.5 percent. 

However, DLF, NMDC, ITC, BPCL and Coal India bucked the trend, up 1-4 percent. 

The BSE Midcap and Smallcap indices slipped 1-2 percent. 

03:00pm Modi unveils steps to reform labour sector

 

India will simplify employment rules and smooth the way for people to move social security funds when they change jobs, Prime Minister Narendra Modi said on Thursday, unveiling steps to reform the labour sector and boost employment. 

India's archaic labour laws strictly regulate hiring and firing, while an onerous 'inspector raj' deluges employers with paperwork, discouraging them from expanding and taking on new staff. 

"Fifty types of departments chase them, 50 types of forms have to be filled in. The world has changed," Modi said, adding that companies would now only need to fill a single form online. 

The change would chiefly benefit firms that employ just a few employees, he said. In 2009, 84 percent of India's manufacturing workers were employed by firms with fewer than 50 workers, research by the Asian Development Bank shows, reports Reuters.

 02:50pm Federa Bank plunges

 

The Sensex shed 191.47 points to 26157.86 and the Nifty broke 7800 level, down 68.05 points to 7795.95 while Federal Bank fell nearly 4 percent post Q2 earnings. 

Kerala-based private sector lender Federal Bank's second quarter (July-September) net profit climbed 6.4 percent on yearly basis to Rs 240.3 crore led by strong other income, but impacted by higher provisions. Profit in the year-ago period was Rs Rs 225.8 crore. 

02:45pm Crompton Greaves under pressure ahead of earnings

 The Sensex slipped 156.91 points to 26192.42 and the Nifty fell 60.90 points to 7803.10 while Crompton Greaves tanked nearly 8 percent ahead of Q2 earnings. 

Crompton Greaves is expected to report a 37.3 percent growth in consolidated profit after tax Rs 80.2 crore in July-September quarter compared to Rs 58.4 crore in same quarter last year, according to the average of estimates of analysts polled by CNBC-TV18. 

Net sales may increase 9.5 percent to Rs 3,508 crore in the quarter ended September 2014 from Rs 3,205 crore in corresponding quarter last fiscal driven by overseas business especially due to growth from international power systems. 

Key issues to watch out for are margin expansion in the power systems segment, given higher exports and increase in contribution from switchgears; improvement in the overseas automation and systems business performance, given execution of recent better margin order wins; and performance improvement in Hungary / Canada 

02:30pm Results Boardroom

 IT company Mindtree is gung-ho over its growth story and is confident of beating the NASSCOM industry growth target of 13-15 percent for FY15. According to CFO Rostow Ravanan, the Q3 will remain muted but the company will bounce back with strong growth in Q4 and so, the overall growth will be much better. 

Speaking to CNBC-TV18 post announcement of Q2 earnings , CEO and MD Krishnakumar Natarajan said the company is overall very positive on its deal pipeline which is very strong across verticals. The company also aims to maintain current margins in Q3. 

The midcap company is hopeful of starting with an aggressive growth in Europe in the next two quarters. The hi-tech segment has now delivered three quarters of consistent quarter-on-quarter growth for the company.

Mindtree added eight clients in Q2 and has signed deals worth USD 165 million during the same period.

 02:00pm Market Check

 

After trading flat in the first half, the market succumbed to selling pressure post noon. The 30-share BSE Sensex fell 71.84 points to 26277.49 and the Nifty declined 28.40 points to 7835.60. 

The market breadth is very weak today. About 1012 shares have advanced while 1767 shares declined on the Bombay Stock Exchange. 

In an interview to CNBC-TV18, Vibhav Kapoor of IL&FS says he does not see a major downside to this market. According to him, 7300-7400 could be the worst level on the Nifty if global markets weaken. 

Global markets are weak across the board today. European markets like France's CAC dropped more than 0.5 percent on top of a 3 percent slide in previous session. Germany's DAX and Britain's FTSE traded flat while Japan's Nikkei closed with more than 2 percent cut.

 The Indian rupee is trading weak today on increased dollar demand amidst capital outflows, down to 61.59 a dollar from 61.44 a dollar in previous session. 

Shares of Reliance Industries, Mahindra and Mahindra, HDFC, Sesa Sterlite, Hindalco Industries, Tata Steel, Bajaj Auto, BHEL and Tata Power declined 1-4 percent while ITC, HUL, Cipla, Gail India and Coal India gained 1-2 percent. More information please visit this site www.bigprofitbuzz.com

Sensex, Nifty rangebound; banks & FMCG gain, metals slip

12:35pm Europe rebounds

 

European markets like France's CAC, Germany's DAX and Britain's FTSE gained around a percent in early trade. 

12:30pm Interview

 

Two-wheeler maker Bajaj Auto eyes very strong exports for October and November. According to MD Rajiv Bajaj, in terms of sustainability, everything looks good right now. 

“October looks good in terms of what we are shipping out, orders of November look promising. But in the last quarter everything just went right whether it was Sri Lanka, Bangladesh, Egypt, Nigeria, Colombia, all these markets one or two of which always played truant,” he adds. 

The company aims to recover its market share by June with the EBITDA margins maintained at 20 percent.

The overseas business of the company did well in Q2. Speaking to CNBC-TV18 post Q2 earnings, Bajaj says the company has entered Ghana and Argentina in recent months. 

Bajaj Auto has planned two new launches over the next four months. The company expects its Pulsar to clock 60,000-65,000 units per month going ahead. 

12:00pm Market Check

 Equity benchmarks were not showing any sign of major move on either side. The Sensex fell 9.80 points to 26339.53 and the Nifty declined 9.05 points to 7854.95. Banking and financials, and FMCG stocks saw buying interest while metals, capital goods and power stocks were under pressure. 

The market breadth was negative. About 1053 shares have advanced while 1417 shares declined on the Bombay Stock Exchange. 

Shane Lee, Director, Economist & Strategist - Equity Research, CIMB is neutral on India. However, he adds that the Indian market has held up rather well. But he is waiting to see how things play out. 

Shares of Hindustan Unilever, Gail, ITC, Tata Motors, Axis Bank, BPCL and NMDC climbed 1-4 percent whereas Hindalco Industries, Sesa Sterlite, Mahindra and Mahindra, Tata Power, Reliance Industries, UltraTech Cement and Cairn India slipped 1-4 percent.

In key earnings today, second quarter is expected to be a strong for TCS and Hero Motocorp. Dollar revenue of TCS may see a 7.3 percent sequential growth to USD 3,965 million with marginal improvement in margins while Hero may report a 43 percent growth in profit Y-o-Y. 

In the midcap space, Cyient, Tilak Finance, Emami, DB Corp and Religare Enterprises gained 4-7 percent while Strides Arcolab, GSFC, Amtek Auto, Den Networks and Persistent Systems lost 5-16 percent. More information please visit this site www.bigprofitbuzz.com

Sensex, Nifty flat; TCS & Hero Moto gain; Bajaj Auto falls

09:45am Ranbaxy in News

 

The BSE Sensex rose 65 points to 26414 while Ranbaxy Laboratories gained 1 percent. 

The company has settled the litigation concerning its participation in the Texas Medicaid Program. Under the settlement agreement, Ranbaxy will make payments to the State of Texas totaling USD 39.75 million in a series of tranches through August 2015, said the company in its filing to BSE. 

"The claims at issue related exclusively to the manner in which the Ranbaxy has historically reported pricing data to Texas Medicaid for certain of its drugs. As has been widely reported, the State of Texas has brought nearly identical claims against virtually every other major pharmaceutical manufacturer in the United States. Ranbaxy believes that it fully complied with all relevant laws, however the company settled the matter to avoid any further distraction and uncertainty of continued litigation with the State of Texas," it explained.

 09:35am Market Expert

 

With domestic cues positively stacked in favour of India, market expert Ambareesh Baliga believes 7800-7850 to be good support levels. He doesn't see it breaking in a hurry. 

However, he adds, global cues continue to be tricky, and hence he prefers neither to be a buyer nor a seller at the moment. 

He says if 7850 breaks, then the downside for Nifty opens. Because of technical factors, market can crack further and the next level will be 7400. But if Nifty doesn't fall below 7800 level then the trading band will be 7800-8200. 

Baliga says the results so far have been decent but most investors are making the mistake of buying these stocks at high prices (on exuberance) as soon as the results are out. He advices investors to let prices cool from the initial exuberance and then buy. 

09:15am Market Check 

Equity benchmarks opened flat despite weak global cues and ahead of outcome of Maharashtra and Haryana elections that will be on Sunday. The Sensex fell 1.37 points to 26347.96 and the Nifty declined 0.65 points to 7863.35. 

About 432 shares have advanced, 530 shares declined, and 47 shares are unchanged. 

DLF shot up 6.62 percent, showing a smart recovery after losing nearly 30 percent in previous session due to Sebi order. .

Hero Motocorp and TCS gained nearly 2 percent ahead of second quarter earnings today later in the day. Tata Motors, BHEL and Tata Steel climbed over 1.5 percent. 

However, Hindalco, Bajaj Auto (post 29 percent fall in Q2 profit), Reliance Industries, Sesa Sterlite, Tata Power and Cairn India lost 1-2.5 percent. 

The Indian rupee opened marginally lower on Thursday at 61.48 per dollar compared to 61.41 a dollar in previous session. 

Dollar hits a three-week low against the euro and a more than one-month low against the yen post weak US economic data that heightened concerns that the federal reserve would delay its first rate hike. 

Mohan Shenoi of Kotak Mahindra Bank said, "Dollar weakness against global majors may not impact rupee significantly due to reduced custodial flows. The rupee is expected to trade today in a range of Rs 61.10-61.50/dollar." 

On the global front, Asian markets (barring Shanghai) were trading lower with the Nikkei falling over 2 percent. US stocks closed down but recovered significantly from historic intraday losses amid concerns about Europe, Ebola and the economy. Stocks lost nearly 3 percent during the day but recovered in the close. 

In Europe, stocks closed more than 2 percent lower as investors shunned risky assets on fears of crumbling global growth, weak economic data, and concerns about the political situation in Greece.

In commodities, Brent crude continues its slump, slips below USD 84 per barrel. More information please visit this site www.bigprofitbuzz.com

market will remain closed

Currency Alert: Currency Market (MCX-SX & NSE segment) will remain closed for trading on 15th Oct 2014 on account of General Assembly Elections in Maharashtra 2014

Commodities Exchanges (MCX & NCDEX) will remain closed for both sessions on 15th Oct 2014 on account of  General Assembly Elections in Maharashtra 2014. More information please visit this site www.bigprofitbuzz.com

Choppy Sensex, Nifty close lower; DLF tanks 28%, BHEL up 4%

03:30pm Market Closing

 

Equity benchmarks closed marginally lower amid consolidation on Tuesday ahead of two state elections (Maharashtra and Haryana) tomorrow. The Sensex fell 34.74 points to close at 26349.33 and the Nifty declined 20.25 points to 7864.

 About 1301 shares have advanced, 1622 shares declined, and 109 shares are unchanged.

 DLF tanked 28.56 percent post Sebi order. BPCL, Cairn India, HCL Technologies, Tata Motors, HDFC, ONGC, Sesa Sterlite and HDFC Bank were down 1-2 percent.

 However, BHEL, Axis Bank, Bajaj Auto, Tata Power, SBI and IndusInd Bank topped the buying list, up 2-4 percent. 

03:15pm Symphony Q1 earnings

 

Air coolers maker Symphony surpassed street expectations on every parameter with the first quarter (July-September) standalone net profit rising 51 percent to Rs 21.6 crore on the back of strong growth in revenue and operational income. Profit in the year-ago period was Rs 14.3 crore. 

According to CNBC-TV18 poll estimates, analysts had expected the company to report profit of Rs 18 crore on revenue of Rs 96 crore for the quarter. 

Net sales grew 42.5 percent to Rs 102.7 crore in the quarter ended September 2014 compared to Rs 72.1 crore in same quarter last year. 

Operating profit or EBITDA climbed 71.4 percent on yearly basis to Rs 23.8 crore and margin expanded by 390 basis points to 23.2 percent during the quarter, which were expected at Rs 19.9 crore and 20.7 percent, respectively.

 02:58pm Brent Crude check

 Brent crude fell to just above USD 88 a barrel in a well-supplied market as expectations faded that OPEC could cut output in an effort to shore up prices. 

The global oil benchmark has declined more than 20 percent from the 2014 high in June as supplies rose and demand slowed in the United States, Europe and China. 

Investors expecting a production cut from OPEC to support prices were disappointed as Saudi Arabia and Kuwait played down the possibility of the Organization of the Petroleum Exporting Countries reducing output. 

OPEC, which produces about 40 percent of the world's crude oil, is due to meet in late November to discuss output targets, reports Reuters. More information please visit this site www.bigprofitbuzz.com