Nifty ends at 8565, Sensex strong; Tata Motors, ICICI up 4%
10 February 2015
03:30 pm Market ending
The market ended with some gains. The Sensex was up 128.23 points at 28355.62 and the Nifty gained 39.20 points at 8565.55. About 1349 shares advanced, 1383 shares declined, and 228 shares were unchanged.
Tata Motors and ICICI Bank jumped 4 percent while SBI, M&M and Tata Steel were up 3 percent. TCS fell 3 percent while HDFC, Sun Pharma, Reliance and HUL were laggards in the Sensex.
03:20 pm Nasscom guidance
The Indian IT outsourcing sector is expected to see export revenue growing 12-14 percent in the financial year starting in April, an industry lobby group said on Tuesday.
The sector's exports in 2015-16 are forecast to rise to as much as USD 112 billion, according to the National Association of Software and Services Companies (Nasscom).
That compares with an estimated rise of about 12 percent from the previous 12 months, in the fiscal year ending on March 31, Nasscom said. Top Indian outsourcing companies Tata Consultancy Services and Infosys have been seeing benefits of a global economic recovery spill over their clients' technology budgets.
This has boosted business for outsourcing firms, who make as much as three-quarters of sales by providing services including technology infrastructure management and development of software applications to clients in the United States and Europe.
03:00 pm Poll
Bank of India is expected to register a solid 39.8 percent increase (year-on-year) in profit at Rs 818.6 crore for October-December quarter, according to a CNBC-TV18 poll.
The sharp spike in profitability is on the back of low base in the year-ago period. In Q3FY14, profit had fallen 27 percent Y-o-Y to Rs 586 crore as provisions climbed 53 percent Y-o-Y to Rs 1,404 crore.
Net interest income, the difference between interest earned and interest expended, may jump 15.8 percent to Rs 3,148.3 crore in the quarter ended December 2014 from Rs 2,719 crore in same quarter last year.
02:40pm Market Update
The 30-share BSE Sensex continued to consolidate at around 28250 level, up 22.30 points to 28249.69 while the 50-share NSE Nifty rose 7.40 points to 8533.75.
About 1172 shares have advanced, 1465 shares declined, and 216 shares are unchanged on the Bombay Stock Exchange. The broader markets were under pressure as the BSE Midcap was trading flat with negative bias and Smallcap declined 0.5 percent.
02:30pm United Bank falls
United Bank of India has turned profitable during October-December quarter due to sharp slide in provisions and jump in other income. However, the net was impacted by lower net interest income.
Net profit for the quarter stood at Rs 41.8 crore in December quarter against loss of Rs 1,238 crore in same quarter last year. However, net interest income (the difference between interest earned and interest expended) fell 18.2 percent year-on-year to Rs 622.5 crore during the same period.
Other income (non-interest income) shot up 92.5 percent to Rs 426 crore and operating profit climbed 10.6 percent to Rs 602.8 crore on yearly basis.
Provisions for bad loans dropped 72 percent year-on-year (up 47.8 percent sequentially) to Rs 520.4 crore with provision coverage ratio at 52.48 percent in December quarter.
02:00pm Market Check
The market gave up all it's gains in afternoon with the Nifty trading below 8500 due to selling in Reliance Industries, HDFC and TCS. The 30-share BSE Sensex declined 135.18 points to 28092.21 and the 50-share NSE Nifty lost 38.80 points to 8487.55.
The market breadth was also weak. About 1092 shares have advanced, 1483 shares declined, and 230 shares are unchanged on the Bombay Stock Exchange.
Arvind Sanger of Geosphere Capital Management says India continued to look interesting in the short term. He remains positive on banks, but sees headwinds like higher oil prices, weak earnings for the market.
IT sector was under pressure after industry body NASSCOM says that IT sector growth in FY15 has come in at 13 percent which was at the lower end of guidance of 13-15 percent, adding currency volatility led to drop in overall revenues.
TCS lost 2.7 percent and Wipro declined 1 percent. Index heavyweights Reliance Industries plunged 3.6 percent and HDFC decliend 2.6 percent. Sun Pharma, L&T, Axis Bank, ONGC, HUL and Maruti Suzuki were down 1-2.7 percent.
However, Infosys, Tata Motors, ICICI Bank, M&M, SBI, GAIL and Coal India gained 1-2.6 percent.
Global markets traded weak as tensions of Greek debt negotiations and geopolitical concerns in Ukraine weighed on sentiment. Fresh Chinese inflation data also added to investors' concerns. France's CAC, Germany's DAX and Britain's FTSE were down 0.2-0.5 percent.
In Delhi elections, AAP won 67 out of 70 seats with massive 61 percent of the vote share, the biggest ever win by any party in Delhi to date. However, BJP got just three seats while it's a complete rout for the Congress.
1:50 pm Results: ABB India has registered a whopping 42.4 percent growth in profit at Rs 84 crore for October-December quarter. The bottomline growth was driven by strong execution, enhanced productivity, other income and cost take out programs.
"We will continue to push profitable growth initiatives, introduce new products to the market and offer state of the art technology solutions catering to the evolving customer needs," said Bazmi Husain, managing director.
Earnings beat expectations on bottomline and operating income front but revenue was tad below estimates. A CNBC-TV18 poll estimated profit of Rs 82.8 crore on revenue of Rs 2,286 crore for the quarter.
1:30 pm Buzzing: Shares of Hindalco jumped 5 percent intraday after its subsidiary Novelis delivered strong December quarter earnings. The world leader in aluminum rolling and recycling reported a 250 percent growth in net profit in December quarter to USD 46 million from USD 13 million posted in the year-ago period.
Its adjusted EBITDA for the third quarter of fiscal 2015 was USD 236 million, a 16 percent increase compared to the USD 203 million reported for the prior year. ''The increase was primarily driven by higher shipments as a result of strategic capacity expansions in Asia and South America, favorable product mix, and cost benefits from using recycled metal inputs,'' Novellis said in a company statement.
Novelis'Q3 of fiscal 2015 revenues climbed 18 percent to USD 2.8 billion compared to USD 2.4 billion for the third quarter of fiscal 2014.
The market is consolidating as the Sensex is up 118.83 points at 28346.22. The Nifty is up 38.90 points at 8565.25. About 1490 shares have advanced, 1010 shares declined, and 216 shares are unchanged.
Hindalco, ICICI Bank, M&M, SBI and Tata Motors are gainers in the Sensex. Among the losers are Sun Pharma, HDFC, Wipro, TCS and HUL.
RBI Deputy Governor HR Khan today said though the country's forex kitty was at an all time high of USD 330 billion, there should be no complacency as no amount of reserves may be enough to fight extreme volatility. "Foreign currency reserves have improved. Right now we're at USD 330 billion, highest ever.
But there is also a view that no amount of foreign exchange reserves can cushion when there is extreme volatility or external shocks," Khan said, days after weekly data showed an over USD 6 billion jump in forex to an all-time high. "We are much better placed. In terms of fool proofing our balance sheet we have done quite a few things," Khan said, referring to the jump in reserves.
12:30pm Market Expert
The Delhi election outcome has been a defining one, which clearly shows that voters want a corruption free government that focuses on governance, says Dipan Mehta, Member, BSE & NSE . The outcome is quite positive for the Indian electorate and the economy, believes Mehta.
According to him, the sell-off seen in yesterday's trade was a bit overdone and now the reality seems to be sinking in. The election outcome would be an eye opener for the BJP that they need to move towards providing better governance.
When asked if the Delhi election would have an impact on the upcoming Budget, he does not think so. He says the Budget process is already underway and the BJP needs to build a perfect platform and prepare the Budget on basis on merit and on what the country and the economy really requires at this point of time.
12:00pm Market Check
The market erased more than half of gains in noon trade due to profit booking in banks (at higher levels), and fall oil & gas and select IT stocks. The Sensex rose 135.66 points to 28363.05 and the Nifty climbed 33.05 points to 8559.40.
About 1520 shares have advanced, 889 shares declined, and 215 shares are unchanged on the BSE.
It's going to be a landslide win for the Aam Aadmi Party in Delhi. The party is set to win over 60 of the 70 seats with nearly 54 percent of the vote share in Delhi elections. However, BJP conceded its defeat while Congress is on the way to a historic complete rout.
Hindalco Industries topped the buying list, up 3.5 percent on Novelis' earnings. Novelis reported an 18 percent jump in revenue with profit rising 250 percent to USD 46 million. Barclays says the marginal miss in volumes was offset by improved profitability which was driven by improving product mix towards auto.
DLF tanked 4 percent after posting a revenue decline of 5 percent and profit fall of 10 percent in the third quarter. Meanwhile, Larsen and Toubro recovered almost 4 percent from its session lows after brokerages retained a buy on the stock despite weak Q3 earnings. They remain bullish on outlook for FY16.
HDFC, TCS, Sun Pharma, Reliance Industries and Wipro declined 0.6-1.7 percent followed by ONGC, HUL, Hero Motocorp, Bharti Airtel and Baja Auto with marginal losses.
Globally, Asia is mixed as tensions of Greek debt negotiations weighed along with geopolitical tensions re-emerging in Ukraine. Fresh Chinese inflation data also added to investors' concerns.
11:50 am FII view: Weak earnings and the nervousness in global markets are bigger causes for concern than the verdict of the Delhi assembly elections, says Andrew Holland, CEO, Ambit Investment Advisors. In an interview to CNBC-TV18, Holland says expectations from the Union Budget have increased further because of the drubbing BJP has taken in the Delhi polls. According to Holland, the fragile state of the economy leaves little room for a populist Budget. He expects the market to see a good pre-Budget run up. He says the loss in Delhi is a good reality check for the BJP and that the government needs to ensure that its policy actions translate into results on the ground.
11:30 am Result analysis: Analysts are still bullish on Larsen & Toubro despite its tepid December quarter results and lowering order book guidance. Its net profit fell 14.6 percent year-on-year to Rs 1,060 crore on standalone basis, dented by lower operating income, higher depreciation and interest costs. However, the profit was supported by other income of Rs 621.9 crore (up 43.7 percent Y-o-Y).
Bank of America Merrill Lynch has a buy rating on the stock, suggesting to accumulate on dips. However, it expects L&T to register a 10 percent Y-o-Y decline in its Q4FY15 recurring PAT but says weak profits of Q4 will most likely to be ignored by the street given potential of its robust guidance for FY16.
In a post result press conference, company's CFO R Shankar Raman said that L&T will maintain 10-15 percent revenue (consolidated) growth band for this year.
The market is in green after seven consecutive sessions of losses. The Sensex is up 238.31 points at 28465.70 and the Nifty is up 75.00 points at 8601.35. About 1511 shares have advanced, 626 shares declined, and 174 shares are unchanged.
Hindalco, ICICI Bank, SBI, Tata Motors and BHEL are top gainers in the Sensex. Among the losers are Sun Pharma, Wipro, TCS, Hero and Bharti Airtel.
Meanwhile, it is landslide win for the Aam Aadmi Party in Delhi. The party is set to win over 60 of the 70 seats with nearly 54 percent of the vote share in Delhi elections. BJP concedes defeat while Congress is on the way to a historic complete rout.
Globally, Asia is mixed as tensions of Greek debt negotiations weighed along with geo-political tensions re-emerging in Ukraine. Fresh Chinese inflation data also added to concerns. The consumer price index rose 0.8 percent in January for China versus a consensus of a 1 percent gain. The producer price index (PPI) fell 4.3 percent worse than the 3.8 percent expected decline.
10:50am Market Update
The market extended gains in morning trade with the Sensex rising 268.35 points to 28495.74 and the Nifty climbing above 8600 level, up 80.80 points to 8607.15.
About 1490 shares have advanced, 606 shares declined, and 168 shares are unchanged.
10:40am FII View
The Aam Aadmi Party (AAP) has turned out to be a clear winner in the Delhi elections. Reacting to the news, Arvind Sanger, Managing Partner, Geosphere Capital Management said that AAP is likely to take some populist decisions in Delhi.
According to him, BJP should not make any populist noises now and it will be crucial to see how the government reacts to the AAP win in Delhi. Sanger is also expecting continued action by BJP in important ordinance issues.
On Budget, Sanger says it is nothing more than a statement of intent though it will be important to see the quality of the fiscal deficit and government's vision on subsidies and investments going ahead.
Sanger believes market has headwinds like higher oil prices and weak earnings. He, however, remains bullish on the banks.
10:30am Hexaware Earnings
Hexaware Technologies' fourth quarter net profit rose 1.5 percent sequentially to Rs 87.3 crore, driven by strong operating income.
Earnings (except bottomline) beat street expectations. According to a CNBC-TV18 poll, profit was expected at Rs 93.5 crore on revenue of Rs 695 crore for the quarter.
Rupee revenue grew 6.1 percent quarter-on-quarter to Rs 711.8 crore and dollar revenue increased 4.1 percent to USD 114.5 million during October-December quarter. Analysts had estimated dollar revenue at USD 112.2 million.
Earnings before interest and tax (EBIT) climbed 19 percent Q-o-Q to Rs 130.5 crore and margin expanded 190 basis points to 18.3 percent in the quarter gone by. Analysts had forecast of Rs 113.5 crore for EBIT and 16.3 percent for margin.
The software services provider added 10 new clients in Q4.
10:00am Market Check
The market remained in positive terrain led by short covering in banks, FMCG and metals stocks. The Sensex rose 214.11 points to 28441.50 and the Nifty climbed 60.65 points to 8587.
The BSE Midcap and Smallcap indices outperformed benchmarks, up 0.9 percent each. About 1303 shares have advanced, 510 shares declined, and 166 shares are unchanged on the Bombay Stock Exchange.
Bharatiya Janata Party (BJP) has conceded its defeat in Delhi elections, leading in 9 seats while Aam Aadmi Party (AAP) was leading in 60 seats. Elections held for 70 seats on Saturday.
Shares of ICICI Bank, Tata Motors, State Bank of India, Mahindra & Mahindra, BHEL, GAIL, Tata Steel and Sesa Sterlite gained 1-2 percent.
Hindalco Industries topped the buying list, up 3.5 percent after Novelis earnings. Subsidiary Novelis posted 3.5 times rise in net income at USD 46 million and revenue grew 18 percent to USD 2.8 billion (Y-o-Y).
However, Sun Pharma lost 1.5 percent followed by L&T, ONGC, Wipro, Bharti Airtel, Hero Motocorp and Maruti with 0.2-0.9 percent loss.
Meanwhile, the rupee gained further, up 19 paise to 61.97 a dollar.
9:50 am Buzzing: Shares of DLF skid 6 percent intraday after it posted disappointing December quarter results. The realty firm reported 9 percent decline in its consolidated net profit at Rs 131.79 crore for the quarter ended December on lower sales.
Its net profit stood at Rs 145.29 crore in the year-ago period. Income from operations fell by 5 percent at Rs 1,956.72 crore for the third quarter of this fiscal from Rs 2,058.42 crore in the corresponding period of the previous year.
Besides lower sales, DLF's net profit fell because its other income dropped to Rs 123 crore during October-December quarter of this fiscal from Rs 531.78 crore in the year-ago period.
Finance cost, too, increased to Rs 648 crore from Rs 633 crore during the period under review.
9:40 am Delhi election results: AAP crosses the halfway mark, all set to form government in Delhi. AAP leads in 53 seats, BJP in 10 seats. Congress not ahead on even a single seat. t's day of hope, the passion is winning Delhi, says AAP leader Yogendra Yadav. AAP's SK Bagga leading in Krishna Nagar by 1065 votes against BJP's Kiran Bedi.
9:30 am FII view: Abhay Laijawala, Deutsche Equities says the brokerage believes that the recent trend of strong inflows into equity mutual funds is indicative of a long-pending shift in the nature of Indian households' savings, from physical assets to financial assets.
''As India's macroeconomic distortions correct, non-productive physical assets would continue to lose their allure, relative to financial assets,'' he adds.
Deutsche believes that the financial sector should be the biggest beneficiary of this transition, says Laijawala. Hence the brokerage maintains financials as the biggest overweight in model portfolio.
9:22 am Market check: The market quickly recovered from early weakness. The Sensex is up 123.55 points at 28350.94 and the Nifty is up 36.95 points at 8563.30. About 695 shares have advanced, 450 shares declined, and 149 shares are unchanged. Hindalco is up 3 percent. Tata Motors, Tata Steel, SBI and Axis Bank are gainers in the Sensex. Among the losers are Dr Reddy's Labs, Tata Power, L&T, ONGC and Bharti Airtel.
The market is weak as the Nifty opened below the 8500-mark but quickly pull up strength. The 50-share index is up 5.45 points at 8531.80. The Sensex is down 101.37 points at 28126.02. About 363 shares have advanced, 478 shares declined, and 151 shares are unchanged.
Hindalco, Tata Motors, Tata Steel, Infosys and HUL are gainers in the Sensex. Among the losers are L&T, Tata Power, ICICI Bank, Hero and NTPC.
The Indian rupee has opened flat at 62.15 per dollar on Tuesday against previous day's closing value of 62.17 a dollar.
The dollar slips somewhat after a payrolls-inspired rally ran out of steam. The dollar index is a tad softer but not far from an 11-year peak scaled last month.
Pramit Brahmbhatt of Veracity said, "We expect rupee to depreciate today as Asian markets have already opened on a weak note which will force local equities to trade low. Also, the gain in dollar may hurt the rupee. The USD-INR is expected to be in a range of 61.70-62.70/dollar."
Stocks in the US closed lower despite oil settling higher, as concerns about Greece continued to weigh. The CBoE VIX closed around 18 levels.
In Europe too equities closed lower, as negotiations over Greece's bailout program continued and the crisis in Ukraine re-escalated
Greek stocks tumbled 5 percent and bond yields spiked after Greek Prime Minister Alexis Tsipras said his election pledge to restructure Greece's debt was "irrevocable" in his inaugural speech
In commodities, crude prices dipped slightly with Brent crude trading below USD 58 dollars per barrel. Meanwhile, the OPEC has hiked its demand forecast for 2015, predicting that low prices would help boost demand later in the year. However, the organization still said that oil demand growth was "yet to show any signs of accelerating."
From precious metals space, gold prices remained largely unchanged at around USD 1240 an ounce.