BHEL & Hero weak, Wipro gains 2%; Sensex, Nifty end flat

28 Apr 2014

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3:40 pm Market closing: After a sluggish trade, the market ended on a flat note as Ukraine crisis looms large once again. The Sensex ended down 56.46 points at 22631.61, and the Nifty close at 6761.25, down 21.50 points. About 1424 shares advanced, 1327 shares declined, and 147 shares were unchanged.

Midcap and pharmas outperformed when most stocks struggled to be in green today.  Cipla, Sun Pharma and Dr Reddy's Labs were up  2-3 percent each. Wipro and SBI were other gainers in the Sensex.

Among the laggards were GAIL, BHEL, Hero Motocorp, Tata Motors and L&T.

3:20 pm Results: HUL posted a net profit of Rs 872 crore, almost inline with CNBC-TV18 poll of Rs 855 crore, in the quarter ending March 31, 2014. It had reported a net profit of Rs 787.2 crore in the corresponding quarter last fiscal.

During the period, net sales grew by 8.9 percent. According to CNBC-TV18 estimates, the FMCG major's income was seen growing 8.3 percent to Rs 7000 crore from Rs 6466 crore on a yearly basis.

3:10 pm Drug ban lifted: Generic drugmaker Wockhardt said  the drug regulator of Himachal Pradesh has revoked a suspension it imposed on the manufacture and sale of a combination drug for pain treatment.

Wockhardt said last week the drug regulator suspended the manufacture, sale or distribution of fixed dose combination of Dicyclomine Hydrochloride IP 10mg, Tramadol Hydrochloride IP 50mg and Acetamenophen IP 325mg.

Navneet Marwah, Himachal Pradesh's drug regulator, said the suspension came into force on April 22 as he had some concerns about the "safety and efficacy" of the product, and sent a report to the Drug Controller General of India (DCGI).

2:55 pm Sour deal: Wal-Mart Stores Inc paid about USD 234 million in debt related to the purchase of a stake in its Indian joint venture with Bharti Enterprises, which the US retailer ended in October last year, according to its 2014 annual report, reports Reuters.

Wal-Mart, the world's largest retailer, had earlier paid USD 100 million to take over its Indian partner's 50 percent stake in Bharti Wal-Mart Pvt Ltd, which runs 20 wholesale stores under the Best Price Modern Wholesale brand.

2:40 pm Results: Shree Cements   reported a 19 percent dip in net profit for the January-March quarter at Rs 222.50 crore despite higher sales.

The company, which has over 13 million tonnes per annum (mtpa) capacity, had clocked Rs 274.09 crore net profit in the corresponding quarter of FY 13, it said in a BSE filing.

Total income grew to Rs 1,665 crore from Rs 1,443 crore on higher revenue from the cement segment. Power business' revenue tripped to Rs 339 crore from Rs 428 crore a year earlier, it said.

The market is sluggish back of mixed global cues amid tensions in Ukraine. The Sensex is down 53.14 points at 22634.93, and the Nifty is down 19.90 points at 6762.85.
About 1285 shares have advanced, 1329 shares declined, and 137 shares are unchanged.

Cement and auto stocks under pressure. GAIL, Hero MotoCorp, HUL, BHEL and Hindalco are top losers in the Sensex. Among the gainers are Cipla, Sun Pharma, Wipro and ICICI Bank.

The rupee recoups losses against the dollar on corporate dollar sales. However, poor risk appetite globally and weak domestic markets weigh. Bonds give up intraday gains as buying support fades following fresh supply at gilt auction Friday.

Brent crude oil rose towards USD 110 a barrel, close to a seven-week high, as tensions mounted in eastern Ukraine and Libya delayed the reopening of a damaged eastern port, reports Reuters.

The United States and Europe are preparing new sanctions against Russia over its actions in Ukraine. Pro-Russian rebels paraded European monitors they are holding on Sunday, freeing one but saying they had no plans to release another seven.

US crude for June delivery added 70 cents to USD 101.30 a barrel, reversing some of its losses from Friday, when it hit the lowest since April 7.

1:45 pm Big bull: The Nifty is likely to breach 7100 before May 16, says Rahul Arora, CEO, Nirmal Bang Securities. According to him, the market, which is currently trading at its all-time high of around 6700 does not looks oversold.

The F&O indicators from last week also suggest that the market sentiment is pretty positive and one would easily get more than 7000 just based on those factors. In an interview to CNBC-TV18, Arora also says that if the Narendra Modi-led National Democratic Alliance garners 240-250 seats then the current series may breach the 7500 mark on its expiry.

1:30 pm Results: FMCG major Godrej Consumer Products Limited (GCPL) today reported 29.28 per cent decline in consolidated net profit at Rs 236.28 crore for the quarter ended March 31, 2014, due to exceptional items in the corresponding quarter of FY'13.

The company had reported a net profit of Rs 334.14 crore in the corresponding period last year, Godrej Consumer Products said in a BSE filing.

GCPL had reported exceptional item of Rs 128.90 crore in the quarter ended March 31, 2013.

It is a lazy day at Dalal Street as the indices refuse to move ahead. The Sensex is down 22.57 points at 22665.50 and the Nifty is down 11.50 points at 6771.25. About 1243 shares have advanced, 1272 shares declined, and 132 shares are unchanged.

In an interview to CNBC-TV18, Raamdeo Agrawal of Motilal Oswal says he remains bullish on the market over the long term and believes a Modi-led government has already been priced in.

Cipla, Dr Reddy's Labs and Sun Pharma are up 1-3 percent each. Wipro and Sesa Sterlite are other gainers in the Sensex.

Among the losers are GAIL, BHEL, Hero MotoCorp, Coal India and HUL.

Globally, Asian markets end lower amid rising geo-political tensions over Ukraine. While Europe opened slightly higher but any bullish sentiment is expected to be capped by ongoing events in Ukraine.

1:55 pm Drug deal: US drugmaker Pfizer made a bid approach to AstraZeneca in January and contacted its British rival again on April 26 seeking to renew discussions about a takeover, the US firm said.

A Pfizer bid for AstraZeneca would be one of the largest ever pharmaceuticals deals. The renewed approach comes amid a wave of mergers and acquisitions in the sector.

In a statement to the London stock market, Pfizer said AstraZeneca had declined to engage in discussions on both occasions and the US group said it was now considering its options.

Pfizer's original proposal, made to the board of AstraZeneca on January 5, included a combination of cash and shares and would have valued AstraZeneca's shares at 46.61 pounds (USD 76.62) each - a premium of around 30 percent at the time.

 1:40 pm Market outlook: UR Bhat, MD, Dalton Capital Advisors doesn't see more legs to the current market rally. He expects to see some correction in the market in run-up to the election outcome on May 16. The market is likely to take cues from global events like developments in Ukraine and the FOMC meeting till May 12, he told CNBC-TV18 in an interview.

He advised investors to book profits now. Bhat is bullish on private sector lenders and prefers them over public sector banks. Those looking to build a portfolio should be underweight on defensives and marginally overweight on cyclicals, he recommended.

1:30 pm Buzzing: Shares of DB Realty slumped 5.5 percent intraday after the company was named in chargesheet filed by the Enforcement Directorate in a money laundering case related to 2G case.

Former Telecom Minister A Raja, DMK MP Kanimozhi and 17 others were named in the chargesheet by the ED in a special court in connection with a money laundering case relating to the 2G spectrum allocation scam in which the party-run Kalaignar TV was allegedly paid Rs 200 crore by the promoters of Swan Telecom.

In its charge sheet, ED said that its investigation has revealed that the amount of Rs 200 crore was paid to Kalaignar TV by Shahid Usman Balwa and Vinod Goenka, promoters of Swan Telecom Pvt Ltd (STPL), using their group entity Dynamix Realty through Kusegaon Fruits and Vegetables Pvt Ltd (KFVPL) and Cineyug Films Pvt Ltd (CFPL) in the "garb of legitimate financial transactions i.E. As loan/share application money".

The market continues to be flat with no specific triggers seen today. The Sensex is down 29.42 points at 22658.65, and the Nifty is down 15.00 points at 6767.75. About 1151 shares have advanced, 1168 shares declined, and 117 shares are unchanged.

The rupee rises as high as 60.51, its highest since April 21, after a large infrastructure development company was spotted selling dollars, reports Reuters. The rupee was last trading at 60.58/59, compared with its close of 60.60/61 on Friday after earlier falling to as low as 60.7450.

The infrastructure developer was seen selling dollars for a second straight session, traders said. Further gains in the pair is likely to be limited ahead of the US Federal Reserve's two-day policy meet beginning Tuesday.

Back home, Cipla, Dr Reddy's Labs, Sun Pharma, Wipro and Sesa Sterlite are big gainers in the Sensex.  Among the losers are GAIL, BHEL, Hero MotoCorp, Coal Indi and HUL. Mid and small cap stocks are in focus today. DB Realty is down 5 percent after the company was named in chargesheet filed by the enforcement directorate filed in the 2G case.

HUL is also weak ahead of announcing its March quarter earnings today.

11:55 am Labour pangs: Bajaj Auto's one-year-old labour dispute saw fresh trouble after the Bombay High Court recently rejected the company's plea to stay proceedings at an industrial tribunal even though workers who intended to go on strike decided to put it off by two weeks.

In June last year, workers at its Chakan plant in Pune had gone on strike, affecting production for 50 days, demanding, among other things, a wage hike and shares in the firm.

But despite being offered a wage raise of Rs 10,000 for each worker, the employee union has upped its demand, asking for part of the company's corporate social responsibility (CSR) fund to be spent on workers' children and for a statue of founder Jamnalal Bajaj to be installed at the plant.

The Chakan plant, which accounts for 25 percent of Bajaj's production, produces the bestselling Pulsar and Avenger motorcycles, apart from making some of the KTM bikes. The company also has production units at Aurangabad and Pantnagar.

11:45 am FII view: While foreign institutional investors (FII) have preferred India over other emerging markets (EMs), the trend is unlikely to continue in the days to come, says Rishav Dev, equity strategist, Quant Capital.

Speaking to CNBC-TV18, Dev says one can expect negative or flat inflow trend for the next few weeks. ''Before any such big event (election results on May 16), it is very difficult for FIIs to take a call on investing. They are more likely to be waiting on the sidelines,'' he adds.

11:30 am  Buzzing: Shares of Fulford India hit upper circuit (up 20 percent) at Rs 823 per share intraday. Investors are excited about the stock as its promoter Dashtag has made voluntary delisting offer at an indicative price of Rs 1150 which is a sharp 67 percent premium to Friday's close price.

''Dashtag, the promoter, plans to acquire 25.05 percent or 0.98 million shares, representing of the paid-up equity share capital of Fulford India,'' it says in a press statement. The promoters held 74.95 percent stake in Fulford India as on March 31, 2014.

If the delisting offer is successful the equity shares of Fullford India will be delisted from the BSE in accordance with the delisting regulations, it further said.

The market seems to be in no mood to budge today. The Sensex is down 53.00 points at 22635.07, and the Nifty is down 18.95 points at 6763.80. About 1109 shares have advanced, 1067 shares declined, and 97 shares are unchanged.

Pharma stocks are outperforming the market as buying is seen in Cipla, Sun Pharma and Dr Reddy's Labs. Sesa Sterlite and Tata Power are other gainers in the Sensex. Among the losers are GAIL, Coal India, Tata Motors, BHEL and L&T.

Shares of Jet Airways is down 2 percent as reports suggest that Etihad may not have to make an open offer for the airline as Sebi is likely to rule in favour of Etihad Airways this week.
The rupee is weaker tracking strength in the dollar globally while gilts trade with a positive bias due to value buying post sharp fall on Friday. However gains are capped due to supply brought in via auction.

Asian currencies trade mixed against the dollar today. The Indonesian rupiah and Malaysian ringgit were flat due to lower demand for the dollar rose amid concerns. The euro trades in a thin range and the yen is marginally higher.

Crude prices eased as high supply of crude offset geo-political uncertainty. Gold prices rose on risk off trade.

Asian markets trade mostly weak amidst low volumes as rising concerns of geopolitical conflict worried investors. The G7 countries agreed to intensify sanctions against Russia as the country has not taken any action against continued efforts by pro Russia separatists against Ukraine.

10:55 pm Result poll: Hindustan Unilever will announce its March quarter earnings today.  According to CNBC-TV18, the FMCG major's income may grow 8.3 percent to Rs 7000 crore from Rs 6466 crore on a yearly basis. Profit after tax (PAT) too may rise 8.7 percent year-on-year (YoY). The margins are likely to remain flattish on a sequential basis.

HUL may witness continued weakness all round and management commentary is likely to be negative for the next couple. In the last quarter, the management had highlighted that it expects growth to be led by volume and not price-which would be challenging given the overall macro environment has not improved on a sequential basis.

Driven by sustained challenges in discretionary spends and high competition across segments, analysts feel that HUL's volume recovery is unlikely. According to estimates,  its FMCG business is seen to grow 8-9 percent in revenue terms. Volume growth is likely at 3-4 percent Y-o-Y (higher expectations on the street also at 5%) impacted by overall slowdown and a high base of 6% (which included 80 bps benefit built in due to up-stocking on account of transport strike).

10:35 am Market outlook: As the date to the general elections' results comes closer, one should probably wait and not tank up on Modi stocks, advises market expert Sandip Sabharwal.

Speaking to CNBC-TV18, Sabharwal says most high-flying names will give up their gains and some large midcaps may also see sell off.

This is the perfect time to buy on dips, says Sabharwal who prefers Crompton Greaves, Apollo Tyres and Arvind among midcaps. ''They are large established midcaps, but have run ahead of themselves and may correct significantly,'' he further adds.

10:20 am Buzzing: Shares of IDFC fell over 3 percent intraday as its March quarter earnings disappointed the street. Its net profit declined 50.9 percent, much below the CNBC-TV18 poll estimates in the quarter ended March 31, 2014.

The infrastructure finance company's net profit stood at Rs 258 crore as against Rs 526 crore on a year-on-year basis as the income remained largely flat and expenses almost doubled. It disappoints on profits due to higher provisions. Provisions in Q4 stood at Rs 482 crore, which is 192 percent up Y-o-Y (Rs 165 crore) and 1220.5 percent up on a quarter-on-quarter basis (Rs 36.5 crore).

The market continues to be sluggish but the Nifty holds above 6750 comfortably. The Nifty is down 3.15 points at 6779.60 while the Sensex is up 7.75 points at 22695.82.

Metals and pharma stocks are lending support to the indices while Sun Pharma, Dr reddy's Labs, Sesa Sterlite, Tata Power and Hindalco are top gainers in the Sensex. Among the losers are Bharti Airtel, Tata Motors, BHEL, HDFC and Coal India.

Meanwhile, Asian shares wavered in choppy trade after an uninspiring performance on Wall Street and amid increasing tension in Ukraine, which kept risk appetite in check and helped bolster the safe-haven yen.

Pro-Russian rebels paraded European monitors they are holding in eastern Ukraine on Sunday, freeing one but saying they had no plans to release another seven as the United States and Europe prepared new sanctions against Moscow.

MSCI's broadest index of Asia-Pacific shares outside Japan oscillated between positive and negative territory, and was last trading flat.

Gold climbed to its highest in 1-1/2 weeks, steadying above USD 1,300 an ounce as weaker equities and escalating geopolitical tensions in Ukraine boosted the metal's safe-haven appeal.

Traders were cautious about the price gains as they said the tensions could be short-lived and that outflows from gold-backed exchange traded funds had only paused, rather than reversing. They were also waiting for US nonfarm payrolls report and the Federal Reserve's policy meeting later in the week for stronger trading cues.

9:55 am Buzzing: Shares of Jet Airways fell over 3 percent intraday as reports suggest that Etihad may not have to make an open offer for the airline as SEBI is likely to rule in favor of Etihad Airways this week. Etihad has acquired 24 percent stake stale in Jet Airways for Rs 2,058 crore.

Sebi's clearance will come as a big relief for Etihad, who would have had to shell out another Rs 2,000 crore on the open offer to the minority shareholders of Jet.

9:40 am Brokerage views: UBS maintains sell rating on Axis Bank with a target price of Rs 1300. The brokerage is disappointed as the private sector lender's restructuring is still high at Rs 1120 cr which is 2.2 percent of loans compared toRs 670 cr 1.4 percent of loans sequentially.  It prefers ICICI Bank in the sector.

Goldman Sachs has a neutral rating on the stock but with an increased target of Rs 1670 from Rs 1570. Though asset quality is resilient, Axis Bank's positives include net interest income  growth and net interest margin expansion of 19 basis points quarter-on-quarter.

9:30 am Results poll: Hindustan Unilever will report its Q4 numbers today. In a CNBC-TV18 poll, the total income is expected to grow 8 percent to Rs 7000 crores. Profit after tax (PAT) too may rise 8.7 percent and the volume growth is likely at 3-4 percent year-on-year (YoY). The margins are likely to remain flattish on a sequential basis.

The market has opened on a flat note as the Sensex is up 0.16 points at 22688.23, and the Nifty is down 4.20 points at 6778.55. About 307 shares have advanced, 137 shares declined, and 37 shares are unchanged.

GAIL, Axis Bank, Dr Reddy's Labs, ITC and Sesa Sterlite are among the gainers in the Sensex. The early losers include M&M, Tata Power, Coal India, NTPC and ONGC.

The rupee opened flat at 60.62 per dollar versus 60.61 Friday.

The dollar got off to a quiet start following a few days of directionless trading with investors unlikely to take aggressive positions ahead of major events out of the united states and euro zone.

Agam Gupta of Standard Chartered said that, "In rupee the downward momentum from Friday could continue but expect real demand from nationalised banks to come in at 60.40/dollar levels."

"Exporters who missed the bus will look to sell on any upticks until levels of 60.80/dollar. The range for the day is seen between 60.40-60.80/dollar," he added.

Global cues, meanwhile, are negative as the Wall Street ended the week in the red as investors tracked escalating tension in Ukraine.
Nasdaq was down 2 percent with the S&P and Dow Jones, down around a percent each. European markets too ended lower with German index down 1.5 percent and Asia too slipped with Nikkei down a percent.

Crude shrugged off threats and demands between western powers and Russia over the crisis in Ukraine. And precious metal gold climbed to its highest level in one and a half weeks on Monday as weaker equities and escalating geopolitical tensions in Ukraine boosted the metal's safe-haven appeal.

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