Sensex ends 282 up; Infosys gains 11%, Maruti falls 3.6%

12 Jul 2013

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3:50 pm Losers and gainers: Maruti Suzuki (down 3.6 percent), ONGC(down 2.7 percent), M&M (down 1.4 percent), Hindalco (down 1.1 percent) and ITC (down 0.9 percent) are biggest losers in the BSE.

3:45 pm Market closing: It was a good day of trade for the market as the Nifty closes higher by almost a percent boosted by good results from Infosys and trade deficit narrowing for the month of June. The Nifty ends the day at 6009, up 73.90 points while the Sensex adds 282.41 points to end the day at 19958.47. About 1069 shares have advanced, 1222 shares declined, and 155 shares are unchanged.

3:40 pm Earnings lash: Sintex Industries has reported an around 2 percent year-on-year decline in profit during June quarter on high interest and depreciation cost. Total income of the plastic and textile manufacturer grew to Rs 1128 crore from Rs 1081 crore YoY. The company said its forex loss narrowed down to Rs 3.7 crore from Rs 29 crore YoY. The stock crashed 5 percent on the BSE.

3:35 pm Earnings outcome: Net profit of South Indian fell to Rs 115 crore in the quarter ended March 31, 2012 as compared to Rs 123 crore in the year-ago period. During the period, its net interest income was at Rs 327.6 crore vs Rs 297 crore Y-o-Y.  Its gross non-performing asset stood at 1.12 percent.  The stock fell around 3 percent on the BSE.

3:30 pm Management speaks: GP Kundargi, CMD of Manganese Ore India Limited ( MOIL ) is hopeful of procuring high grade manganese ore from the newly allotted lands in Maharashtra. The Maharashtra government allotted 597.44 hectares of land in Nagpur and Bhandara districts of the state. It also granted prospecting licenses for 11 blocks in those areas.

MOIL has reserved Rs 250 crore for conducting geophysical research on the same. The exact richness may not be known but it has the prospects of being a high grade ore, he adds.  He told CNBC-TV18 that the production may take about 3-3.5 years to commence production from this land and will eventually boost the company's manganese output.

He sees the company's volumes to be at 11.5-12 lakh tonnes for FY14. The production in FY13 stood at 11.4 lakh tonnes. The production from the new blocks and new sharp sinking projects will increase the total output of the company to 1.5 million tonnes (mt) by 2016-17, he says.

The company's total debtors will be reduced to less than Rs 20 crore as Steel Authority of India Limited's ( SAIL ) Chandrapur unit will repay its debt to MOIL by August 2013.

3:25 pm Views on rupee: The uptrend seen in emerging markets (EMs) over the past week is a relief rally and the downward trend is likely to extend, Laurence Balanco, Asian Technical Research, CLSA told CNBC-TV18. The broader MSCI EM index will not only retest June lows but may also break those levels, he cautioned.

Meanwhile, he expects the Nifty to be rangebound between 5500 and 6100 levels. Although Nifty is trading at the top of the trading range, it may not break on the upside but could retrace back to 5500 levels, he added.

According to him, EM and Asian currencies are likely to see further weakness and the rupee is likely to head to 67 against the dollar.

3:15 pm Macro outlook: Jahangir Aziz, Chief Economist, JPMorgan does not feel there will be a sharp upturn in momentum in IIP numbers. CNBC-TV18 poll points to May IIP at 1.5%; CPI at 9.2%. He further added that the July numbers will probably pick up the impact of rupee depreciation rather than the June numbers. "So most likely in the August print, we will probably see the full force of the impact of the depreciation on CPI and WPI," Aziz said.

He says the balance of payments scene has definitely worsened and it is not just the global markets that is responsible for it. The silence of the monetary authorities in preventing the rupee from free falling has played a big role in forming expectations and the market right now is being driven by people's expectation of the rupee.

The Nifty has hit 6000 on strong trade deficit data and rally in technology stocks. The Nifty up is  at 6000.50, up 65.40 points while the Sensex is up 259.22 points at 19935.28. About 999 shares have advanced, 1188 shares declined, and 144 shares are unchanged.

The country's gold and silver imports dropped drastically to USD 2.5 billion in June from USD 8.3 billion in May. Oil imports slipped to USD 12.7 billion from USD 15 billion during the same period.

Trade deficit fell over 39 percent month-on-month to USD 12.24 billion in June. Exports declined marginally to USD 23.79 billion from 24.51 billion M-o-M, but imports were down by 19.3 percent to USD 36.03 billion in June from 44.65 billion in May.

Directorate General of Foreign Trade says overall imports seem to be tempering. "Import tempering in June was on measure against gold import," he reasoned.

Maruti Suzuki shares extended losses to 3.6 percent while ITC and State Bank of India lost more than one percent.

Geojit BNP Paribas lost 3 percent after its net profit declined to Rs 5.9 crore in first quarter from Rs 6.1 crore in a year ago period. Net salso also slipped to Rs 37.3 crore from Rs 42.2 crore during the same period.

02:50 pm The country's gold and silver imports dropped drastically to USD 2.5 billion in June from USD 8.3 billion in May. Oil imports slipped to USD 12.7 billion from USD 15 billion during the same period.

Trade deficit fell over 39 percent month-on-month to USD 12.24 billion in June.

Exports declined marginally to USD 23.79 billion from 24.51 billion M-o-M, but imports were down by 19.3 percent to USD 36.03 billion in June from 44.65 billion in May.

Directorate General of Foreign Trade says overall imports seem to be tempering. "Import tempering in June was on measure against gold import," he reasoned.

02:40pm Maruti Suzuki shares extended losses to 3.6 percent while ITC and State Bank of India lost more than one percent.

Geojit BNP Paribas lost 3 percent after its net profit declined to Rs 5.9 crore in first quarter from Rs 6.1 crore in a year ago period. Net salso also slipped to Rs 37.3 crore from Rs 42.2 crore during the same period.

02:30pm Gold eased on Friday due to profit-taking after four days of gains but was on track for its biggest weekly gain in nearly two years on easing fears of an early end to US monetary stimulus that has boosted bullion's appeal as a hedge against inflation.

Spot gold fell 0.6 percent to USD 1,277.40 an ounce. Bullion has gained close to 5 percent this week, on course for its biggest weekly climb since October 2011 when it rose 6.2 percent.

Traders attributed gold's reversal to profit-taking and as physical demand slowed after the recent gain in prices, reports Reuters.

02:20pm Sintex Industries shares pared gains after disappointing numbers in first quarter, losing 0.5 percent. Consolidated reported profit after tax of Rs 46.6 crore in April-June quarter as against Rs 46.8 crore in a year ago period. Analysts had expected it to report profit at Rs 64.1 crore.

02:10pm The BSE Sensex maintained momentum from early trade today, rising 201.62 points to 19878 in afternoon trade on support of technology stocks. Infosys remained on buyers' radar after better-than-expected strong numbers and maintaining dollar revenue guidance for FY14 at 6-10 percent.

The country's second largest software services exporter shares rose 10.5 percent as its net profit stood at Rs 2374 crore in first quarter, up 4 percent year-on-year (decline 0.8 percent sequentially) as against expectations of Rs 2315 crore. Its rivals TCS and Wipro gained 2 percent each.

Meanwhile, the NSE Nifty advanced 45.45 points to 5,980.55, supported by HDFC Bank , Reliance Industries , L&T and Bharti Airtel that gained more than one percent.

Indian rupee fell 44 paise to 60.12 per dollar.

Declining shares outnumbered advancing ones by 1155 to 928 on the Bombay Stock Exchange.

1:55 pm Update: DLF says it is in definitive pact to sell Karnataka wind turbine unit and will complete the sale by December 31

1:50 pm FM's views: Pitching for closer business ties between India and US, Finance Minister P Chidambaram has said the two nations should not let ''a few cases of business rivalry'' stand in the way of good relations.

Delivering the key note address at the 38th annual Leadership Summit of the US India Business Council (USIBC), Chidambaram expressed concern over provisions of an immigration legislation passed by US Senate that would make it harder for Indian IT professionals to get temporary work visas.

1:45 pm Update: India Inc mopped-up more than Rs 35,000 crore through private placement of debt securities, or bonds in June, a marginal rise of four per cent from the preceding month. In debt private placements, firms issue debt securities, or bonds, to institutional investors to raise capital.

According to latest data available with the market regulator Securities and Exchange Board of India (Sebi), Indian firms raked in a total of Rs 35,214 crore from the debt on a private placement basis route in June, a slight increase from Rs 33,759 crore garnered in May.

1:40 pm Management outlook: Fall in commercial vehicle (CV) financing led to lower retail growth in Q1, says Romesh Sobti, managing director and chief executive officer of IndusInd Bank .

The bank reported 42 percent year-on-year surge in its net profit at Rs 335 crore. A robust growth in other income and net interest income (NII), helped the lender to post forecast-beating net profit.

In an interview to CNBC-TV18, Sobti says, the bank will continue to post stable margins as there are very strong signals for rate reductions.

"Incremental expansions will happen because the cost of funds as compared to the cost of deposits have been managed pretty well to reduce the cost of funds. So, we do expect small increases in the coming quarters as well," adds Sobti in an interview to CNBC-TV18.

1:35 pm Index check: Smallcap and midcap index are under selling pressure. Banking, OIL and gas, metals, auto, FMCG and realty stocks are weak while IT index led by Infosys is up 5.2 percent from the previous close.

1:30 pm Macro outlook: Major economic policy reforms in India that require legislative changes is most likely to slip away until the next general elections, Deputy Chairman of the Planning Commission Montek Singh Ahluwalia said, reports PTI. 

He, however, assured businesses and investors and that current slowness in growth is only a temporary phenomenon and India would soon bounce back to eight percent growth. "I would assure that there is no item on the reform agenda which the Government of India had earlier said is on its agenda is now off. My expectation is that we are a little bit marking time.

1:25 pm Rupee: The rupee extended its fall to below 60 per dollar levels in afternoon trade on Friday, weighed down by heavy demand for dollars from importers, particularly oil companies, according to dealer, reports Reuters.

The domestic currency is currently at 60.11 per dollar.

The market has come off in afternoon trade but the Nifty holds above 5950. The Sensex is up 140.56 points at 19816.62, and the Nifty is at 5961.80, up 26.70 points. About 909 shares have advanced, 1089 shares declined, and 130 shares are unchanged.

ONGC is the big loser while rate sensitives are also under pressure.

Agency sources say, ONGC, OIL may have to bear part of fertiliser subsidy in FY15 post the gas price hike. Speaking to CNBC-TV18, ONGC says it has not been informed about sharing fertiliser subsidy. While the formula for gas prices has been approved, there is still no clarity on the exact gas price from April first next year.

The race for Mangalore Chemical is heated up further. Zuari Agro has bought an additional 2.5 percent stake in Mangalore chemicals at around Rs 68 a share. Zuari's stake in the company now goes up to 16 percent.

12:55pm Sintex Industries shares gained 4 percent ahead of first quarter earnings today. Analysts on an average expect the plastic products manufacturer to report 37.1 percent growth year-on-year in profit after tax of Rs 64.1 crore, but they feel the forex element could swing the result off the estimates .

12:45pm Indian rupee depreciated further and crossed the 60 level. It fell 40 paise to 60.08 per dollar in afternoon trade.

Laurence Balanco, Asian Technical Research, CLSA says emerging market and Asian currencies are likely to see further weakness and the rupee is likely to head to 67 against the dollar.

12:35pm Infosys shares jumped 11 percent, hitting highest intraday level in 23 months, after the company pleased the street by reporting better-than-expected numbers in first quarter and retained its revenue growth forecast for the financial year 2013-14.

Reliance Industries rose over 1 percent after OIL minister M Veerappa Moily said on Thursday that the decision to raise prices of locally produced gas will not be reviewed, allaying fears that the government may consider a roll-back.

Industrial output data will be announced after market hours today.

12:25pm Equity benchmarks remained strong in noon trade, but the broader markets underperformed benchmarks. European markets opened marginally positive on Friday.

The BSE Sensex is up 169.49 points to 19845.55, and the Nifty is up 34.90 points to 5970.00. Declining shares outnumbered advancing ones by 622 to 472.

IVRCL rose over one percent as the company received orders worth Rs 1,098 crore.

ONGC and OIL may have to bear part of fertiliser subsidy in FY15 post gas price hike, as per sources. Upstream companies  now give discount to oil retailers as subsidy. Subsidy burden seen at Rs 65000 crore. ONGC lost 3 percent.

11:55 am Sugar outlook: "Sugarcane cost has gone up around 14 percent to Rs 210 per quintal whereas sugar price has almost remained same or has risen only marginally in last three sugar seasons," M Manickam, managing director, Sakthi Sugars told Moneycontrol.com in an exclusive interview.

However, sugar makers had asked to pay a minimum of Rs 170 per quintal for the current sugar season, but the central government has mandated companies to pay a price that is 23 percent higher that what they had requested for.

Even if cane price is brought down, it will not have significant impact because sugar price also has to go up in tandem for companies to improve margins. This issue can be resolved only by linking sugarcane prices to the prices of end-products, Manickam added.

11:50 am Update: The uncertainty surrounding the Jet-Etihad deal will delay Jet Airway's USD 300 million fund raising plan via the external commercial borrowing (ECB) route, reports CNBC-TV18 quoting sources.

Etihad which picked up 24 percent stake in Jet Air in April said that it is inappropriate to offer any comment on the deal as the airline is engaged a regulatory process to complete the deal.

Sources further say that both Jet and Etihad are unclear on timelines for government clearance regarding the deal. Also,the next few days will be very crucial for the deal when all the ministries and other agencies look at every aspect of these bilateral rights which are very important part of the entire Jet-Etihad deal.

11:40 am Mangement view: Infosys , which beat street expectations in the first quarter , maintained its FY14 US Dollar revenue growth guidance of 6-10 percent, and said it is trying level best to meet or beat that . However, its margin will get hurt by up to 3 percent in the second quarter, due to the wage hikes effective July, it said in a post earnings press conference on Friday.

"This quarter we have done reasonably well. We have been able to keep our operating margins at 23.5 percent, same as last quarter...As we said, we had given wage hikes for people offshore at 8 percent effective July and we also rolled out hikes for other geographies in July. I think, that impact will be visible on operating margins in subsequent quarters. I would roughly expect the impact to be about 300 bps next quarter," Rajiv Bansal, CFO, said.

 SD Shibulal, the company's CEO, said that the company faced an uncertain economic environment, changing regulatory regime and volatile currency environment. Discretionary spends by clients remains under stress, he added. However, he is cautiously optimistic on the year ahead as deal pipeline remains strong.

"We continue to see momentum in our large deal pipeline. Last year, second half we had closed about USD 1 billion of revenue in large deals, This quarter we have closed 7 deals, few of them more than USD 100 million each. These are deals, which are 3-5 years and revenue gets realised over that period," he said.

11:35 am: ONGC and OIL may have to bear part of fertiliser subsidy in FY15 post gas price hike, as per sources. Upstream companies  now give discount to oil retailers as subsidy. Subsidy burden seen at Rs 65000 crore. ONGC tanks 3.5 percent on the BSE.

Don't miss:

It's a stable Friday with the Nifty holding fort above 5950. The Sensex is up 146.15 points at 19822.21, and the Nifty adds 27.50 points at 5962.60. Technology and capital goods lead the charge. The mid and small caps are relatively sedate in trade today.

Infosys jumps 12 percent as first quarter results beat estimates. The dollar guidance is maintained at 6-10 percent. However the management says second quarter earnings could take a 300 bps margin hit due to July wage hikes. The management remains cautiously optimistic but most brokerages give thumbs up to the stock.

Onto the macros, a CNBC-TV18 poll sees IIP for May lower at 1.5 percent versus 2.3 percent month-on- month. Manwhile, June consumer price inflation (CPI) is seen at 9.2 percent.

Asian markets mixed ahead of China GDP data due on Monday. Nikkei up 0.3 percent, however, Kospi is down 0.6 percent. For the week so far, Hang Seng is up 2.5 percent, Shanghai is up 2.75 percent and Nikkei is up 1.5 percent.

In commodities, WT Crude slips from a 15-month high to trade below USD 105 per barrel. Brent trades at USD 107.6 per barrel. Brent-WTI spread now at USD 2, narrowed from USD 19 gap significantly. Gold tests USD 1300, highest level in three weeks, is up 5 percent this week.

Dollar index is down to 82.42, lowest since June 25 and down 3 percent from 3-year high of earlier this week. Latin American currencies rally 0.4-0.6 percent vs dollar with Russian ruble up 1 percent against dollar.

11:10am TCS gained 3.44 percent and Wipro rose 2.24 percent after better-than-expected first quarter earnings by Infosys today.

Major bluechips like Reliance Industries , HDFC Bank and Tata Motors are also on buyers' radar, which advanced between 0.5-0.9 percent.

Healthcare stocks are also seeing buying interest. Dr Reddys Labs jumped over one percent while Sun Pharma gained 0.7 percent.

11:03am Indian rupee is moving towards 60 level, falling by 23 paise to 59.90 per dollar. CLSA feels the rupee is likely to head towards 67 per dollar.

10:43am Indian equity benchmarks maintained early gains with the Sensex rising 170 points, supported majorly by Infosys that beat the street with first quarter numbers.

The BSE Sensex is up 169.99 points at 19845.05, and the Nifty is up 33.25 points at 5968.35, but the broader markets underperformed benchmarks. The BSE Midcap and Smallcap indices are flat.

Earnings season started off on a positive note as Infosys delivered earnings better-than-expected. The dollar revenue guidance remained unchanged at 6-10 percent and the volume growth has improved to 4.1 percent versus 1.8 percent quarter-on-quarter.

UBS recommended a buy rating on the stock with a target price of Rs 2900. Kotak expects Infosys stock to perform well during the day.  The stock rallied 11 percent.

Elder Pharma gained 4 percent as the board approved plans to recast operations. The board has approved restructuring of the company business by either raising capital, hiving off assets or through other strategic options to reduce debt. According to news reports, French pharmaceutical company Sanofi has emerged as the highest bidder for the domestic formulation business of elder Pharma, ahead of Pfizer and Glaxo .

10:00 am Auto sales: Domestic passenger car sales declined by 9 percent to 1,39,632 units in June this year from 1,53,450 units in the same month of 2012.

According to the data released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle sales in last month declined by 9.16 percent to 7,99,139 units from 8,79,721 units in the same month previous year.

9:50 am Buzzing: The Elder Pharma board has approved the plan for restructuring operations to reduce debt. The company is likely to raise capital via hiving off assets or other strategic options.  The stock is quoting at Rs 363.30, up Rs 9.40, or 2.66 percent on the BSE.

9:40 am Gold update: Gold rose for a fifth session on Friday, on track for its biggest weekly gain in nearly two years on easing fears of an early end to US monetary stimulus that as boosted bullion's appeal as a hedge against inflation.

9:35 am Houseviews: UBS says Infosys is likely to see further upmove. It has a target of Rs 2900 per share. Goldman Sachs is surprised on the upside on both revenue and profit.

9:30 am Expert views: Nilesh Shah, managing director and chief executive officer, Envision Capital expects Infosys to rally further .

However, he believes the management needs to change its commentary and do away with 'cautiously optmistic' view and become more optimistic.

"I believe there is going to be a trend changer only when that word 'cautiously' gets removed and they basically come out and say that they are optimistic about their prospects," adds Shah in an interview to CNBC-TV18.

9:25 pm Gainers: Wipro (up 2.7 percent), TCS (up 2.2 percent), HDFC Bank (up 0.6 percent) and Sun Pharma (up 0.5 percent) are top gainers in the Sensex.

Don't miss: Will China experience a 'hard landing' in 2013?

Infosys better-than-expected April-June quarter earnings boosts the market as the Nifty opens at 6000. The  Sensex opens up 264.21 points at 19940.27 while the Nifty adds  65.40 points to open at 6000.50. About 224 shares have advanced, 67 shares declined, and 27 shares are unchanged.

Infosys surges around 13 percent as India's second largest software services exporter, reported good set of numbers in the first quarter of financial year 2013-14. Its net profit falls lower-than-expected 0.8 percent quarter-on-quarter to Rs 2,374 crore.

Rupee revenue too increased higher-than-expected 7.8 percent Q-o-Q to Rs 11,267 crore from Rs 10,454 crore. Analysts on an average were expecting net profit at Rs 2,315 crore on revenue of Rs 11,029 crore for the quarter.

In other earnings to watch out for, Sintex will be declaring their first quarter earnings today. According to a CNBC-TV18 poll, expect a healthy 12 percent revenue growth at Rs 1,207 crore driven by continued performance momentum. However margin will continue to remain under pressure due to project execution challenges. Segment wise, problems with company's overseas custom moulding business will continue.

Indian rupee has opened at 59.75 per dollar Friday, down by 8 paise compared to previous day's closing value of 59.67 per dollar.

Pramit Brahmbhatt of Alpari said feels the rupee is likely to trade in positive zone on Federal Reserve's statements, a weak dollar and positive equity markets.

The consumer price index (CPI) for June and the indusial output for May will be declared today at 5:30 pm after market hours. While the market may not react much to it, but expectations are that the May industrial output number will be a disappointment, which will prove that little green shoots of growth seen in March and April will be washed away

According to CNBC-TV18, May IIP is seen lower at 1.5  percent versus 2.3 percent month-on-month. Meanwhile June consumer price inflation or CPI is seen at 9.2 percent.

Meanwhile on the global front, it is a stellar rally for US markets, with the Dow and S&P 500 closing at record highs, after Fed Chairman Ben Bernanke emphasised that the central bank intends to keep its stimulus measures for the foreseeable future. Europe too mirrors Wall Street gains.

In Asia, the markets have opened higher this morning reacting to the cues overnight and Bernanke's comments.

Crude rally takes a breather, Nymex Crude slips from a 15-month high. Brent crude hovers around USD 107. In currencies, dollar index is at sub 83 levels. The dollar-yen is at sub-100 levels.

Gold is trading around US 1280 an ounce. The 10-year treasury yields now almost unchanged around yesterday's levels below 2.60 percent.

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