Nifty ends flat amid GDP downgrades, weak Bharti Q1 nos
08 Aug 2012
The BSE Sensex and NSE Nifty trimmed gains in late trade to close flat on Wednesday due to profit booking and disappointing forecast by Bharti Airtel. The cut in India's gross domestic forecast (GDP) forecast by the foreign research firms CLSA and Citi to 5.5% and 5.4% from 6% and 6.2% also dampened sentiment.
The 30-share BSE benchmark declined 1.22 points to close at 17,600.56 after gaining as much as 125 points intraday. Meanwhile, the 50-share NSE Nifty hit an intraday high of 5,377.60, before closing with gains of just 1.3 points at 5,338.
The market traded in a positive terrain since morning, but the further fall in European markets after Bank Of England cut economic growth too weighed on Indian equities in late trade. BoE sees modest recovery in growth on gentle pickup in household and said UK GDP would not surpass pre-crisis level until 2014. France's CAC, Germany's DAX and Britain's FTSE were down more than 0.5%.
Back home, country's largest telecom operator Bharti Airtel crashed 6.6% as its consolidated net profit fell higher than expected 24.23% quarter-on-quarter to Rs 762.2 crore in the quarter ended June 2012 while analysts on an average had expected it in the vicinity of Rs 1,075 crore.
The company said political pressures and inflation impacted its African business while rise in service tax and TRAI norms impacted its Q1 performance. Bharti sees possibility of further EBITDA margin dilution. EBITDA margin, which went down by 310 basis points QoQ to 30.2%, was way below the estimates of around 33.4%.
ICICI Bank toppled Bharti Airtel to become the country's 10th most valued firm in terms of market capitalisation, pushing the telecom major out of the top-10 list following a sharp fall in its share price.
On the other side, utility vehicle maker Mahindra & Mahindra surged 4% after the company reported beats forecast, net up 20% to Rs 726 cr
Index heavyweight Reliance Industries cut gains to 0.9% from 2% on profit booking. FMCG majors ITC and HUL were up 0.33% and 1.2%, respectively.
Top commercial vehicle maker Tata Motors too trimmed gains to 0.5% from 2.7%, which was the gainer for third consecutive session.
Metals stocks were strong in trade; Hindalco Industries rose over 2% while JSPL and Sterlite Industries gained more than 1%.
Country's largest private sector lender ICICI Bank was down 1.6% while its rival HDFC Bank fell 0.4%.
Software services exporter TCS dropped over 1% whereas its rival Infosys gained more than 1%.
Engineering and construction major Larsen & Toubro was down 0.7% and state-owned GAIL tanked nearly 3%.
Indiabulls Financial Services, Indiabulls Power and Indiabulls Real Estate fell 1-3% after foreign research firm Veritas advised selling all Indiabulls group stocks.
GVK Power tanked 5% after reporting losses in the first quarter due to higher interest cost. Lanco Infratech and IVRCL tumbled 4-5%. Punj Lloyd went down 3.6% as its consolidated net loss increased to Rs 13.4 crore in Q1 from loss of Rs 12.2 crore YoY.
State-run State Trading Corporation of India and Hindustan Copper rallied 13-15% after reports that the Finance Minister looked to revive share sale in PSUs. Neyveli Lignite and RCF gained 3-4%.
V-Guard Industries rallied 5.5% and the stock doubled in the year itself. Geometric surged nearly 6%. Sun TV and IRB Infra gained 2% each.
Decliners outnumbered advancers by 1606 to 1188 on the BSE. The broader markets closed marginally lower.
Indian shares continued to trade higher with marginal gains due to support from Reliance Industries and Infosys. But a 6% fall in Bharti Airtel has capped the upside. In a conference call after disappointing performance in Q1 results, the company sees possibility of further EBITDA margin dilution.
The BSE benchmark trimmed gains from 106 points to 45 points to trade at 17,646.99. Meanwhile, the NSE benchmark rose 14.50 points to 5,351.20.
Oil & gas producer Reliance Industries, software services exporter Infosys and top commercial vehicle maker Tata Motors were up around 1.5%.
Utility vehicle manufacturer Mahindra & Mahindra rallied 4% after higher than expected numbers in the quarter ended June 2012.
FMCG majors ITC and HUL gained 0.8% and 1.34%, respectively. Metals stocks remained strong; Hindalco Industries surged 3% and Jindal Steel gained 2%; Sterlite Industries was up 1.5% while Tata Steel rose 0.8%.
Country's largest lender State Bank of India went up 0.3% whereas its rival ICICI Bank fell 1.3%.
State-owned oil & gas producer ONGC declined 1% and software services exporter TCS slipped 0.8%.
Indian equity benchmarks extended gains to 0.5% in afternoon trade due to further buying interest in Reliance Industries, Infosys and Tata Motors. Country's largest lender State Bank of India went up 0.8% whereas its rival ICICI Bank declined 1%.
The 30-share BSE Sensex rose 82 points to 17,683 and the 50-share NSE Nifty gained 25 points at 5,362.
Rajen Shah, CIO of Angel Broking says money flow will decide the fate and the direction of the markets hereon. "Fundamentals have taken a back seat. It is liquidity which is driving the markets currently," he says.
Index heavyweight Reliance Industries advanced nearly 2% and top commercial vehicle maker Tata Motors surged more than 2.5%.
Software services exporter Infosys and FMCG major Hindustan Unilever gained more than 1%. Cigarette major ITC was up 0.5%.
Utility vehicle maker Mahindra & Mahindra rallied 2% ahead of first quarter numbers today.
Metals stocks like Jindal Steel, Hindalco Industries and Sterlite Industries surged 2-3% while Tata Steel was up over 1%.
Telecom operator Bharti Airtel tanked over 2% due to lower than expected net profit and EBITDA in first quarter. Shares of GAIL and ONGC were down around 1%.
In the second line shares, GVK Power and Infrastructure tanked more than 3% as it has reported higher than expected consolidated net loss of Rs 64.3 crore in the quarter ended June 2012 as against profit of Rs 58.9 crore in a year ago period due to higher interest cost and tax expenses. Analysts on an average had expected the loss in the vicinity of Rs 3 crore.
State-owned STC India, National Fertiliser and HMT rallied 7-14% after The Economic Times reported that Finance Minister P Chidabaram looked to revive share sale in public sector undertakings.
Bajaj Corp and Whirlpool rose over 6% whereas Glodyne Tech, Jagran Prakashan, Indiabulls Real, Indiabulls Financial and Alstom T&D slipped 3-5%.
The 50-share NSE Nifty continued to move in a narrow range of 5340-5360 since early trade due to lack of trigger globally and locally. The market already rallied quite sharply in previous few sessions by attracting foreign money nearly Rs 5,000 crore, so it is waiting for some trigger to drive the rally further. Trigger may be in the form of reforms by the government or further developments towards easing Eurozone debt crisis.
The BSE benchmark moved up 26 points to 17,627.79 and the NSE benchmark rose by 10 points to 5,346.60.
Utility vehicle maker Mahindra & Mahindra extended rally to 2% ahead of numbers for the quarter ended June 2012. Analysts on an average expect a growth of 3% in profit after tax due to higher interest cost and depreciation, but revenues are likely to grow by 35% year-on-year.
Commercial vehicle major Tata Motors remained strong for the third consecutive session today with gains of nearly 2%. In three days, the stock shot up 10%.
Metals stocks hogged the limelight with the sector index gaining 1.5%. Hindalco Industries surged 2.5% and Sterlite Industries gained 2% while Tata Steel was up 1.2% and Jindal Steel rose 1.8%.
Infosys, country's second largest software services exporter and FMCG major Hindustan Unilever moved up over 1%. Index heavyweight Reliance Industries was up 0.8%.
Telecom operator Bharti Airtel trimmed losses to 2% from 4% on buying interest. The company disappointed the street by reporting lower than expected PAT and EBITDA in the first quarter.
State-owned oil & gas producer ONGC and top IT services exporter TCS were down 1-1.5%. Engineering and construction major Larsen & Toubro declined 0.6%.
Private sector lenders ICICI Bank and HDFC Bank fell over 0.4% while their rival State Bank of India gained 0.3%.
The BSE Sensex and NSE Nifty remained higher with marginal gains amid volatility since early trade due to buying interest in Reliance Industries and Infosys. Tata Motors and SBI too played supportive role, but the fall in Bharti, ONGC, TCS, L&T, ICICI Bank and HDFC Bank capped the upside.
The BSE benchmark went up 36 points to 17,637.84 and the NSE benchmark moved up 14 points to 5,350.90.
Saurabh Mukherjea of Ambit Capital expects high liquidity to continue supporting markets. Foreign institutional investors bought nearly Rs 5,000 crore worth of shares in India equity markets since July 27.
The market is now hoping that the government will kick start the process of reforms in the upcoming monsoon session. However, he said, "We don't expect any significant reforms in the near-term."
Index heavyweight Reliance Industries gained nearly 1%. FMCG major Hindustan Unilever and software services exporter Infosys rose over 1%.
Commercial vehicle major Tata Motors climbed higher for the third consecutive session today with gains of 1.6%. Utility vehicle maker Mahindra & Mahindra rallied 1.8% ahead of first quarter numbers today.
Country's largest lender State Bank of India went up 0.7% while its rivals ICICI Bank and HDFC Bank declined 0.24% each.
Metals stocks extended gains; Jindal Steel, Hindalco Industries and Sterlite Industries rallied 2-2.5%.
Telecom operator Bharti Airtel remained under pressure with 3% losses after lower than expected Q1 net profit and operating profit.
State-owned oil & gas producer ONGC fell 1.5% and top software services exporter TCS lost 0.9%. GAIL tanked over 2%.
Indiabulls Financial Services, Indiabulls Power, Indiabulls Real Estate and Indiabulls Securities were down 1-4% after foreign research firm Veritas advised selling all Indiabulls group stocks. But, Indiabulls Wholesale Services gained 3% and Indiabulls Infrastructure and Power rallied 5%.
Alembic Pharma rose over 1% as the company is in product development and license agreement with Accu-Break (A US-based pharma company).
Strides Arcolab surged more than 4% after the company received US FDA approval for Oxaliplatin Injection that will be launched through Pfizer.
The broader markets gained 0.3% each as about 1268 shares advanced as against 1073 shares declined on the BSE.
Reuters Market Eye - The BSE Sensex gains 0.3 percent. Asian shares extended gains for a third straight session to reach a three-month high on Wednesday, as investors continue to bet that policymakers will soon decisively address the euro zone fiscal crisis and declining global growth.
Provisional exchange data showed foreign investors were buyers of stocks worth 8.16 billion rupees on Tuesday, when the BSE index rose by 1.1 percent.
Dealers however say that considering sharp run-up over the last two sessions, some correction could set in at higher levels later during the day.
Metal shares were leading the gains: Hindalco rose 2.6 percent, Jindal Steel and Power rose 2.34 percent while Tata Iron and Steel gained 1.9 percent
Bharti Airtel shares fell 3.66 percent after the company posted a 37 percent fall in April-June net profit.
Indian shares were consolidating around their previous closing values after a rally of more than 400 points on the Sensex this week. Overall the market stabilised now as it has priced in European cues and US jobs data, now the market is waiting for some action on reforms by the government as the monsoon parliament session will begin today. The market has been looking optimistic after Finance Minister P Chidambaram said he would come out with measures to reduce fiscal deficit.
The BSE benchmark rose 31 points to 17,632.63 and the NSE benchmark went up 11 points to 5,347.35. The broader markets too were marginally higher as advancers outnumbered decliners by 701 to 518 on the National Stock Exchange.
Index heavyweight Reliance Industries and software services exporter Infosys gained nearly 0.8%.
Top commercial vehicle maker Tata Motors rose more than 1% while utility vehicle manufacturer M&M too went up over 1%.
Among metals and mining stocks, Jindal Steel and Hindalco Industries rallied 2.5% each. Tata Steel, Sterlite Industries and Coal India were up 1-1.5%.
Country's largest power producer NTPC climbed nearly 2% as its CMD said the Coal India had assured the company of 10% more coal this year compared to last year. It expects to receive 140 mt of coal from Coal India in FY13.
Top lender State Bank of India went up 0.5% whereas its rivals ICICI Bank and HDFC Bank were down 0.4%.
Telecom operator Bharti Airtel plunged 4% as its consolidated net profit fell higher than expected 24.23% quarter-on-quarter to Rs 762.2 crore as against analysts forecast of around Rs 1,075 crore. The company said adverse regulatory and tax developments had impacted operating profits.
Engineering and construction major Larsen & Toubro and software services exporter TCS slipped 0.5% and 0.9%, respectively.
The BSE Sensex and NSE Nifty started off trade on a flat note on Wednesday as they were consolidating at previous closing values after a rise of more than 2% this week. Stable global markets on continuous optimism in Eurozone helped the market.
The market completely ignored the news that the foreign research firms CLSA and Citi cut India's GDP forecast to 5.5% and 5.4% from 6% and 6.2%, respectively.
The BSE benchmark was up 28 points at 17,629.97 and the NSE benchmark gained 10 points at 5,346.35.
Top commecial vehicle maker Tata Motors topped the buying list again with 1.6% gains. Utility vehicle maker M&M went up 1% ahead of first quarter numbers today.
Shares of ICICI Bank, Reliance Industries, Infosys, Tata Steel, JSPL, SBI, L&T and Coal India were on buyers' radar in early trade.
Top telecom operator fell 1.5% on disappointing performance at bottomline and EBITDA fronts.
ITC, BPCL, TCS, HDFC Bank, Bajaj Auto and Maruti too were under pressure.
The CNX Midcap Index rose 14 points to 7,310 as about two shares advanced for every share declining on the National Stock Exchange.
In the second line shares, VIP Industies rose 0.7% and Shobha Developers gained over 1% after Q1 results. Punj Lloyd and Bombay Dyeing were flat after results.
Tulip Telecom surged 3.7% as the company tied up Rs 400 crore for FCCB repayment.
Sun TV, Dish TV and Educomp Solutions were up 1-2%.
IRB Infrastructure gained 3%. Jaypee Infra rallied 2.5% as CRH is in talks to buy Jaypee Cement Corp's Gujarat assets.