Sensex ends 163 pts down on weak earnings; SBI, ONGC plunge

Indian shares fell 0.9 percent on Friday with NSE Nifty closing below the 5700 level due to steep fall in State Bank of India, ONGC and Tata Steel following their dismal performance in the second quarter. The fall in global markets too added pressure on the market.

The 30-share BSE Sensex was down 162.58 points to close at 18,683.68, weighed down majorly by banks, oil & gas exploration, capital goods and metals. In fact, all BSE indices closed in the red.

Meanwhile, the 50-share NSE Nifty lost 52.50 points to 5,686.25.

Shares of Tata Steel, the world's sixth largest steel making company, dropped 3.25 percent on weak operational performance on standalone as well as consolidated basis. Consolidated (including Tata Steel Europe (earlier Corus)) net loss was Rs 364 crore for the second quarter as against profit of Rs 212.4 crore in a year ago period. Standalone EBITDA margin fell quite significantly to 26.5 percent as against 33.5 percent YoY.

Country's largest lender State Bank of India played a spoilsport as the stock fell 3.89 percent. Fresh slippages and restructured loans increased much higher compared to the street expectations, even the net interest income came in lower than forecast.

State-controlled oil & gas producer ONGC was down over 3 percent as its net profit fell 3 percent quarter-on-quarter to Rs 5,896 crore in the second quarter of FY13, impacted largely by a discount of Rs 7,103 crore given to oil marketing companies.

Private sector lender ICICI Bank went down 1.5 percent while its rival HDFC Bank and housing finance company HDFC outperformed other bluechips both closed flat to positive.

Software services exporters Infosys and Wipro lost 1 percent each. Commercial vehicle maker Tata Motors was down 1% too.

State-owned power equipment maker BHEL tumbled 2 percent while engineering conglomerate Larsen & Toubro was down 0.8 percent. Shares of Sterlite Industries dropped over 2 percent.

In the second line shares, Manappuram Finance crashed 14 percent as its net interest margin fell 270 basis points YoY in Q2FY13.

Shipping Corporation of India rallied 4 percent as the company reported a profit of Rs 297 crore in the second quarter as against loss of Rs 140 crore in a year ago period.

Ashok Leyland and SREI Infrastructure were up 6-7 percent following quarterly earnings.

Telecom operator Idea Cellular rose 3 percent today and over 8 percent in the week.

United Breweries group stocks remained in bull grip following the much awaited deal between UB group and UK-based Diageo for stake sale in United Spirits that gained over 1 percent

UB Holdings gained 3.34 percent while United Breweries was up 0.4 percent. Kingfisher Airlines surged 5 percent.

The broader markets too were down in-line with benchmarks; the BSE Midcap Index was down 1 percent and Smallcap fell 0.7 percent.

Declining shares outnumbered advancing by a ratio of 981 to 459 on the National Stock Exchange.

For the week, the BSE Sensex and NSE Nifty closed marginally lower.

On the global front, Hang Seng and Nikkei lost 0.9 percent each, weighed down by worries over the risk of a recession in the world's largest economy as the United States faces a looming fiscal crisis, while Europe still awaits a bailout for Greece, keeping investor risk appetite subdued. Shanghai was down 0.12 percent.

The 50-share NSE Nifty fell below the 5700 level, weighed down majorly by banking, oil & gas and capital goods stocks. European markets too were down with the CAC, DAX and FTSE falling 0.2 percent each.

The BSE benchmark lost 169 points to 18,677 and the NSE benchmark was down 53.55 points to 5,685.20.

The BSE Bankex, Capital Goods and Oil & Gas indices were down 1 percent each while the PSU Index dropped 1.5 percent due to sharp fall in State Bank of India.

Country's largest lender SBI plunged 3.5 percent following steep rise in fresh slippages & restructured loans, and lower than expected net interest income in second quarter while its rival ICICI Bank tumbled 1.5 percent.

State-owned ONGC too fell 3.5 percent due to disappointing second quarter numbers .

Capital goods majors Larsen & Toubro and BHEL were down 1-1.8 percent.

Software services exporter Infosys and commercial vehicle maker Tata Motors slipped 1 percent each.

Shares of Reliance Industries, ITC, Hindustan Unilever, TCS and HDFC went down 0.4-0.8 percent.

However, Cipla, Bajaj Auto, Tata Power and Jindal Steel were marginally up.

In the second line shares, M&M Financial, Ashok Leyland, Radico Khaitan, Shipping Corporation and Delta Corp gained 3.5-7 percent while Manappuram Finance, DB Corp, Maharashtra Seamless, Page Industries and Shree Global dropped 5-12 percent.

Indian shares extended losses amid choppy trade, weighed down largely by State Bank of India - a largest lender in India that disappointed the street by its second quarter numbers. The stock tanked 4 percent as the net profit came in higher than forecast at Rs 3,658 crore (a growth of over 30 percent) and even net interest margin improved to 3.77 percent from 3.57 percent QoQ, but increase in restructured loans & fresh slippages and lower than expected net interest income dented sentiment.

Other PSU banks like Allahabad Bank, Andhra Bank, Bank of India, Canara Bank, Central Bank of India, Dena Bank, IOB, Indian Bank, OCB, UCO Bank and Union Bank were down 1-3 percent due to weak sentiment.

The 30-share BSE Sensex fell 137 points to 18,709 and the 50-share NSE Nifty declined 43 points to 5,695.45.

Private sector lender ICICI Bank was down 1.5 percent while its rival HDFC Bank was down just 0.16 percent.

Technology majors TCS, Infosys and Wipro were down 0.8-1 percent. Engineering conglomerate Larsen & Toubro and commercial vehicle major Tata Motors fell over 1 percent.

State-controlled oil & gas producer ONGC tumbled 2.6 percent as its net profit fell 3 percent quarter-on-quarter to Rs 5,896 crore in the second quarter of FY13, impacted by Rs 7,103 crore on account of discount to oil marketing companies.

Shares of ITC, Bajaj Auto, Cipla, Sun Pharma, Dr Reddy's Labs and Maruti Suzuki gained 0.3-0.8 percent.

The BSE Sensex continued to move in a range around its previous closing value due to lack of local and global cues. Shares of Jindal Steel & Power gained 1.4 percent ahead of second quarter numbers today; Profit after tax is likely to increase 2.6 percent year-on-year to Rs 898 crore in the quarter.

The 30-share BSE benchmark fell 16 points to 18,830.42 and the 50-share NSE benchmark was down 5 points to 5,733.45.

United Spirits touched 52-week high of Rs 1,425 (gaining 6 percent) as sources say the UB Group-Diageo agreed on financial & management contours and they may may announce deal of stake sale tomorrow.

In the second line shares, Shipping Corporation of India surged nearly 6 percent after the company reported a profit of Rs 297 crore in the second quarter of FY13 as against loss of Rs 140 crore in a year ago period.

Ashok Leyland rose 5 percent as its September quarter results were significantly ahead of estimates. The company reported a big operational surprise and margins grew 210 basis points QoQ despite tough macro environment.

M&M Financial, Radico Khaitan and Delta Corp were up 5-6 percent. Gold loan financing company Manappuram Finance plunged 10 percent following disappointing numbers; net profit declined 20 percent YoY to Rs 108 crore in the quarter.

Godrej Industries fell 3 percent as its consolidated net profit dropped 23 percent YoY to Rs 63.6 crore in the July-September quarter.

Shares of ITC, HDFC Bank, Sun Pharma, Bharti Airtel, Bajaj Auto, M&M, Tata Steel and Maruti gained 0.2-0.8 percent.

However, Infosys, ICICI Bank, L&T, Tata Motors, Hero Motocorp and TCS fell 0.2-1 percent. ONGC plunged 2.5 percent following disappointing numbers.

Indian equity benchmarks remained lacklustre following mixed Asian cues and after pricing in the Obama's re-election news. The fall in ITC, Reliance Industries, HDFC Bank and SBI offset gains in Infosys, ONGC, Tata Motors and ICICI Bank.

The 30-share BSE Sensex gained 25.38 points to 18,871.64 and the 50-share NSE Nifty went up 4 points to 5,742.70.

India's largest lender State Bank of India was volatile ahead of quarterly earnings today. Investors will closely watch its numbers as other PSU banks disappointed the street by raising asset quality concerns.

While explaining the trend in PSU banks, Suresh Mahadevan, MD & Head of Indian Equities, UBS Securities said, "We have not been very positive on the whole PSU banks pack and that includes SBI. We do not have a very positive view on the name, but there is some chatter that results maybe better and so we will have to wait for the event."

State-owned oil & gas producer ONGC dropped 1.66 percent as its net profit fell 3 percent quarter-on-quarter to Rs 5,896 crore in the second quarter of FY13, impacted by Rs 7,103 crore on account of discount to oil marketing companies.

Software services exporter Infosys lost nearly 1 percent. Private sector lender ICICI Bank, commercial vehicle maker Tata Motors and engineering conglomerate Larsen & Toubro were down 0.3-0.5 percent.

Cigarette major ITC and private oil & gas producer Reliance Industries gained marginally.

Drug producer Sun Pharma rose 1 percent as the company will acquire dermatology company Dusa Pharma for USD 8/share in cash for USD 230 million.

Private power producer Tata Power bounced back with 1.5 percent gains following sharp fall in two previous sessions.

The BSE Sensex opened volatile on Friday despite extended losses yesterday in the US markets for the second consecutive session. The US equity markets fell 1 percent yesterday as concerns over the looming fiscal cliff overshadowed a pair of better-than-expected economic reports. Asian markets too were down in early trade but later on some of them trimmed losses while some rebounded.

The 30-share BSE benchmark was up 7.5 points to 18,853.77 and the 50-share NSE benchmark rose 0.35 point to 5,739.10.

Research firm RK Global says candle pattern suggests positive momentum to be continued with high volatility. "We expect the Nifty to hold 5690 levels below which it might retrace further. However, its pattern indicated downside risk will be limited. Further, its recent high of 5830 is the major hurdle on the upside that might be challenged," the firm explained.

Country's largest lender State Bank of India gained 0.6 percent ahead of second quarter numbers. Analysts feel the bank may surprise the street by reporting better numbers compared to other PSU banks that raised asset quality concerns.

The CNX Midcap Index rose 25 points to 7,991 as advancing shares outnumbered declining by a ratio of 703 to 318 on the National Stock Exchange.

In the second line shares, Manappuram Finance tanked 11 percent as its net interest margin fell 270 basis points in Q2FY13.

Subex lost 3 percent as the company reported a huge loss of Rs 61 crore in the second quarter as against Rs 5.1 crore in the previous quarter.

Ashok Leyland gained 6 percent as the company managed to improve its performance in September quarter compared to disappointing numbers in the previous quarter.

State Trading Corporation surged 6.5 percent as it posted a huge profit of Rs 297.3 crore in the July-September quarter as against loss of Rs 140.6 crore in a year ago period.

Indian Hotels rose 1.66 percent on reports that Orient Express has rejected company's USD 1.8 billion takeover offer, saying the proposal "significantly undervalues" the company.

United Spirits shot up 5 percent as UB Group-Diageo are likely to sign term sheet tomorrow for stake sale as both agreed on financial & management contours, say sources.

UB Holdings, Kingfisher Airlines and Mangalore Chemicals were up 3-5 percent.

Sintex Industries was up 1.4 percent as the company launched QIP book yesterday to raise Rs 140-225 crore.

Pfizer, Natco Pharma, Parsvnath Developers, Hathway Cable and Cummins gained 1-3 percent following quarterly earnings.