Nifty ends at record high; ITC surges 4%, ONGC drags 3%
10 Nov 2014
03:30 pm Market closing
The market has ended on a flat note after hitting record highs in early session. The Sensex was up 6.10 points at 27874.73 and the Nifty gained 7.25 points at 8344.25. The 50-share index was ended at record high. About 1519 shares advanced, 1503 shares declined, and 104 shares were unchanged.
ITC was up 4 percent while Sun Pharma, Coal India, Tata Power and HUL were up around 2 percent each. ONGC was down 3.5 percent while Hindalco, L&T, Tata Motors and Axis Bank were major laggards in the Sensex.
02:55pm Shree Cement hits 52-week high on strong sales in Q1
Shree Cement's net profit fell 36.8 percent (missed street estimates) year-on-year to Rs 108.8 crore in July-September quarter dented by higher operational expenses and lower other income. Profit was Rs 172.2 crore in same quarter last year.
Net sales grew by 28.7 percent (higher-than-expected) to Rs 1,605.3 crore in the quarter ended September 2014 compared to Rs 1,247.5 crore in the year-ago period driven largely by cement business on capacity additions.
02:25pm Apollo Tyes Q2 earnings poll
Tyre maker Apollo Tyres is likely to report a 10.5 percent growth in profit at Rs 275.8 crore in second quarter of current financial year 2014-15 compared to Rs 249.5 crore in same quarter last year, according to the average of estimates of analysts polled by CNBC-TV18.
Sales are seen going down 1.3 percent to Rs 3,389.2 crore in July-September quarter from Rs 3,433.5 crore in corresponding quarter of last fiscal.
Operaing profit (EBITDA) may rise 9 percent on yearly basis to Rs 492.5 crore and margin may expand 130 basis points to 14.5 percent in the quarter gone by.
02:00pm Market Check
Equity benchmarks recouped losses amid consolidation in afternoon trade with the Sensex rising 9.29 points to 27877.92 and the Nifty climbing 4.80 points to 8341.80.
Manish Prasad of JM financial told CNBC-TV18 that business confidence has grown significantly in the Indian markets and even if there is a correction, expect a shallow one, at worst a 10 percent pullback.
Shares of ITC, Sun Pharma, BHEL, Coal India, Hero Motocorp and Bank of Baroda topped the buying list, up 1-4 percent while ONGC, Larsen and Toubro, Hindalco, Tata Motors, Axis Bank and Jindal Steel fell 1-3 percent.
Supreme Industries, SBI, Wockhardt, Larsen and Toubro, Bharat Forge, ITC and Sun Pharma were most active shares on exchanges.
Global cues are mixed with a positive bias today. Among Asian markets, China rose more than 2 percent while Europe is also in the green with gains of almost 0.5 percent.
In key political updates, Suresh Prabhu took over as the new railway minister today and said that rail safety and customer service would be his priorities while Manohar Pariker became a defence minister.
1:50 pm Subsidy burden woes: Shares of Gail India fell 2 percent intraday on subsidy burden concerns. The state-run natural gas transmission company has told CNBC-TV18 that Oil Ministry has asked it to pay Rs 500 crore subsidy for September quarter. The amount will be accounted for subsidy payment in the third quarter ending December 2014.
There was no subsidy sharing (with oil marketing companies) in July-September quarter as against Rs 500 crore in June quarter and Rs 700 crore in the year-ago period. Its zero subsidy sharing also boosted profitability in Q2 as net profit more than doubled sequentially to Rs 1,303 crore.
Net sales grew by 5 percent to Rs 14,063 crore in the quarter ended September 2014 compared to Rs 13,337 crore in the same quarter last year.
1:30 pm Result impact: Shares of L&T slipped around 3.5 percent intraday as its revenue growth in September quarter were not impressive.
However, brokerages are still enthused about the stock. CLSA maintains a buy rating as it believes domestic economy is already showing some signs of revival which bodes well for the core business of L&T.
Macquarie also rates it outperform with a target of Rs 1922 per share stating Q2 performance was reasonable given extremely tough operating environment. According to the firm, L&T is set for turnaround in a number of subsidiaries.
Citi remains neutral on the stock hoping L&T will benefit immensely from domestic economic recovery and 10 percent revenue growth is more likely in FY15.
The market is slipping away succumbing to selling pressure. The Sensex is down 89.36 points at 27779.27 and the Nifty is down 26.15 points at 8310.85. About 1293 shares have advanced, 1449 shares declined, and 115 shares are unchanged.
ITC and Sun Pharma are up over 3 percent each, while Coal India, BHEL and Hero MotoCorp are top gainers in the Sensex. Among the losers are ONGC, L&T, Tata Motors, Hindalco and GAIL.
Asian shares gained on Monday after US jobs data pointed to solid economic growth, with Hong Kong leading the gains after regulators set a date for a long-awaited trading link between the Hong Kong and Shanghai stock exchanges to open.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.2 percent, led by 1.8 percent gains in Hong Kong. Chinese stocks rose after regulators announced that the long-awaited pilot programme allowing cross-border investment between the Shanghai and Hong Kong stock markets will launch on November 17.
12:58pm Nikkei Update
Japanese stocks fell to a one-week low today as the yen rebounded against the dollar after US jobs data fell short of expectations, while Nippon Telegraph and Telephone Corp tumbled on a profit warning.
The benchmark Nikkei share average ended 0.6 percent lower at 16,780.53, the lowest closing level since October 31.
The broader Topix shed 0.3 percent to 1,360.11, and the JPX-Nikkei Index 400 declined 0.3 percent to 12,412, reports Reuters.
12:30pm Bharat Forge on buyers' radar
Pune-based forging company Bharat Forge beat street expectations with the second quarter net profit rising a whopping 80.5 percent year-on-year to Rs 174 crore led by strong sales and operational performance. Profit in the year-ago period was Rs 96.4 crore.
Total income from operations grew by 34.7 percent to Rs 1,138 crore in the quarter ended September 2014 compared to Rs 845.1 crore in same quarter last year.
Profit was expected at Rs 155.1 crore on revenue of Rs 1,048 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Operating profit (earnings before interest, tax, depreciation and amortisation) surged 45.9 percent on yearly basis to Rs 325 crore and margin expanded 210 basis points to 28.5 percent as against expected growth of 34 percent and 190 basis points, respectively.
12:00pm Market Check
The market remained marginally under selling pressure weighed down by technology, metals, auto, oil and private banks. The Sensex fell 56.54 points to 27812.09 and the Nifty declined 18.75 points to 8318.25.
Gautam Shah, JM Financial maintains the target of 8,450 (on the Nifty). He hopes to see the index test the same by early this week. How the market behaves around this level will give a good idea of the trend for the rest of November, he added.
Larsen and Toubro dropped 2.6 percent after reporting weak numbers while Jet Airways returned to profits after six quarters of losses due to exceptional gain; operational performance improved as losses fell; the stock jumped over 4 percent in trade.
Shares of Tata Motors, ONGC and Hindalco Industries fell more than 2 percent in noon trade. Axis Bank, Mahindra & Mahindra, Tata Steel, Bharti Airtel and Gail India declined over a percent.
ITC surged over 3 percent followed by Sun Pharma with 2.7 percent gains as its subsidiary Taro's net sales rose by 22 percent and net income jumped 49%. Taro's operating margins improved to 63.9 percent from 58.6 percent. Ranbaxy too traded higher by more than 3 percent.
11:50 am Buzzing: Shares of rail stocks are rallying as Prime Minister Narenda Modi brings in Suresh Prabhu as new Railway Minister replacing Sadananda Gowda. Suresh Prabhu will head the Railway Ministry Minister in the expansion-cum-reshuffle of the Narendra Modi ministry after 21 new Ministers were sworn-in on Sunday.
While taking over the charge, Prabhu said he will unveil entire scheme of things to be done in Budget. Adding that actions will be far more important than words, the minister stated that he will look into all challenges of the ministry and will deliver on expectations people have from railways.
Prabhu, a qualified Chartered Accountant returned to the Union Cabinet on Sunday after having served in the Atal Bihari Vajpayee government during when he won kudos for imparting a new dynamism to the functioning of the Power Ministry.
11:30 am Big boost: Shares of Sun Pharma hit record high at Rs 932, up 4.5 percent intraday after its subsidiary Taro posted strong September quarter results led by price increases. In the second quarter, Taro's net profit was up USD 143.4 million compared to USD 96.3 million while net sales was up 22.2 percent at USD 250.8 million. Its gross profit, as a percentage of net sales, was at 79 percent compared to 77.7 percent. During the quarter, operating income increased USD 40.0 million to USD 160.3 million, or 63.9 percent of net sales, compared to 58.6 percent of net sales.
"Taro has recently received approval from the US Food and Drug Administration (FDA) for an Abbreviated New Drug Application (ANDA) for Desonide Lotion, 0.05 percent. With this, ANDAs representing thirty products await FDA approval," it said in a statement.
The market has erased its gains. The Sensex is down 14.34 points at 27854.29 and the Nifty is down 6.55 points at 8330.45. About 1275 shares have advanced, 1154 shares declined, and 89 shares are unchanged.
Sun Pharma, ITC, Coal India, BHEL and Hero Moto are top gainers in the Sensex. Among the losers are L&T, ONGC, GAIL, Tata Motors and Tata Steel.
The rupee strengthened by 17 paise to 61.45 against the dollar in early trade today at the
Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amidst sustained foreign capital inflows. Forex dealers said besides increased selling of the
American currency by exporters and banks, the dollar's weakness against other currencies overseas, supported the rupee.
The rupee had dropped by 21 paise to three-and-a-half week low of 61.62 against the Greenback in the previous session on sustained dollar demand from importers.
Asian markets remain mixed as Nikkei trades with almost 1 percent losses while Shanghai and Hang Seng indices outperform.
10:59am Interview
Polaris undertook some organisational restructuring during the fiscal year. It demerged its product business. But despite that the company's performance remained steady, says Arun Jain, chairman and managing director at Polaris.
Polaris Consulting reported second quarter net profit at Rs 49.15 crore . The company, which was formerly called Polaris Financial Technology Ltd, had reported a net profit of Rs 59.81 crore for the July-September 2013 quarter, it said in a statement.
As a testimony to its new strategy, Jain says the company saw nine new order wins during the quarter. Jitin Goyal, CEO of Polaris too adds that the company expects medium-term EBITDA margin in 15-16 percent range.
Goyal adds that he sees the company achieving industry standard growth level soon.
With completion of portfolio rationalization, the company is now focusing on bringing down attrition.
In management changes, Jain relinquished his position as managing direction to focus on mentoring as chairman.
10:30am Market Expert
Gautam Shah, JM Financial said, ''Despite all the positive factors we must point out that we have seen the first hint of serious divergence on the indicator charts. This is not an immediate worry but could develop into something substantial in the next couple of weeks.''
''On the upside, the target of 8,450 (on the Nifty) is maintained and we hope to see the index test the same by early this week. How the market behaves around this level will give a good idea of the trend for the rest of November. The Banking index continues to move from strength to strength. Overall, further upside is seen,'' he added.
10:00am Market Check
Equity benchmarks erased early gains with the Sensex falling 17.17 points to 27851.46 and the Nifty declining 8.65 points to 8328.35 after hitting record highs in opening trade.
The market breadth was positive. About 1156 shares advanced while 928 shares declined on the Bombay Stock Exchange.
Engineering and construction major Larsen and Toubro dropped 1.7 percent after it disappointed on the revenue front in Q2FY15. Profit grew by 20.5 percent year-on-year led by other income.
Shares of ONGC, Tata Motors, Tata Steel and Hindalco Industries declined 1-1.8 percent followed by ICICI Bank, TCS, HDFC Bank, Infosys, Reliance Industries and Bharti Airtel with 0.2-0.7 percent loss.
However, Sun Pharma topped the buying list, up nearly 4 percent after Taro reported a 49 percent growth in Q2 profit and 22.2 percent jump in net sales.
BHEL, Coal India and ITC gained 1-2 percent followed by Dr Reddy's Labs, HUL, Hero Motocorp and Wipro with more than 0.5 percent upside.
9:55 am Opinion: Raising concern about over-dependence of Indian capital markets on foreign institutional investors, eminent banker Deepak Parekh has said that something needs to be done to change this pattern. "There is too much dependence on foreign institutional investors (FIIs), and I think we have exported our capital markets abroad. We have to do something to change this pattern," Parekh told a capital markets meet organised by the ISB here over the weekend.
"Who is really benefitting from our well regulated equity markets? It is not the Indians, it is not our institutions, it is not our labour, it is not our retirees, but the FIIs," said Parekh, Chairman of mortgage giant HDFC .
9:45 am Stock call: Infrastructure major Larsen and Toubro reported weak second quarter numbers. Though its net profit was up 21 percent led by other income, the company reduced its consolidated revenue guidance for FY15 from 15 percent growth year-on-year to now 10-15 percent. However, on order inflows, it maintained the guidance of 20 percent growth. Sanjeev Zarbade of Kotak Securities says though L&T delivered a mixed set of numbers for the second quarter of FY15, he continues to recommend investors to buy the stock on every dip.
He explains that any improvement in macros will provide positive cues for the company. On the order front, though the company is yet to see growth in large orders in chemicals and refinery, it is seeing positive traction in roads and power utilities business orders, he adds
9:32 am Result: Coal India reported over 28 percent fall in its consolidated net profit to Rs 2,192 crore in the September quarter of this financial year due to higher expenses. The world's largest coal miner had clocked a profit of Rs 3,052 crore in the same quarter previous year, the company said in a BSE filing.
Its net profit took a beating as the company's expenses rose by almost 8 percent as compared to the flat growth in sales. Total expenses increased to Rs 14,144 crore in the July-September quarter of this year from Rs 13,112 crore in the same period last year.
9:28 am Market check: The Sensex also touched record high at 280027. It is now up 152.98 points or 0.5 percent at 28021.61, and the Nifty up 43.65 points or 0.5 percent at 8380.65. About 1092 shares have advanced, 452 shares declined, and 31 shares are unchanged.
9:23 am Market at new high: The Nifty has touched another new high. The 50-share index is at 8368.45, up 31.45 points and the Sensex is up 100.37 points at 27969.00. About 972 shares have advanced, 421 shares declined, and 35 shares are unchanged.
L&T is down 2 percent after it disappointed investors with its September quarter results. Cipla, ICICI Bank, Hindalco and TCS are among the laggards. Gainers in the Sensex include Sun Pharma, ITC, BHEL, Sesa Sterlite and Coal India.
The market has opened with some marginal gains. The Sensex is up 28.58 points at 27897.21, and the Nifty is up 0.80 points at 8337.80. About 573 shares have advanced, 178 shares declined, and 34 shares are unchanged.
Dr Reddy's Labs, Sesa Sterlite, Sun Pharma, GAIL and M&M are top gainers in the Sensex. Among the losers are L&T, Coal India,Tata Motors, ICICI Bank and Maruti Suzuki.
It was an action packed weekend on political front as 21 new faces have been inducted in the Prime Minister Narendra Modi cabinet. Suresh Prabhu gets railways, Sadanand Gowda moved to law, Manohar Parrikar gets the defence ministry and Arun Jaitley now holds an additional portfolio of Information and Broadcast ministry.
The Indian rupee started the trade on a positive note. The currency climbed 19 paise to 61.43 per dollar against Friday's closing of 61.62. Dollar hovered below a four-year peak, having lost a bit of altitude late last week after US jobs data fell short of expectations, prompting some investors to take profits on extremely long positions.
Agam Gupta of Standard Chartered said, "The dollar has gotten sold off against all currencies after the Non-Farm Payrolls print on Friday evening from the US markets.''
In Asia, investors also digested local media reports that Prime Minister Abe is considering calling a snap election if he delays a second sales tax hike.
In crude, Nymex crude rebounded marginally after the fall in unemployment in the US. Also, the head of the oil producing nations (OPEC), said there is no reason to panic over this recent drastic fall in crude prices. He added that it was speculation and not over-supply that triggered this fall in oil prices.
From precious metals space, gold settled more than 2 percent higher on Friday and posted its biggest one-day gain in nearly five months as a retreat in the US dollar and heavy short-covering lifted bullion.