The market has not been showing any sign of recovery yet. The Sensex dropped 196.20 points or 0.74 percent to 26441.08 and the Nifty tumbled 59.05 points or 0.74 percent to 7901.50. About 1038 shares have advanced, 1668 shares declined, and 120 shares are unchanged on the Bombay Stock Exchange. Nischal Maheshwari, Head Of Research, Edelweiss Securities expect a volatile ride for the Indian market since it is no more dependent on domestic fundamentals which have getting better by the day, but now there is cause of concern on the global fundamentals especially with IMF’s warning of global growth. However, every fall in the domestic market should be used as an opportunity to accumulate stocks where the earnings visibility is very strong, says Maheshwari. Although lower crude prices bodes well for India, it shows the demand world over has reduced, he adds. Commercial vehicle maker Tata Motors and aluminium major Hindalco extended losses in afternoon trade, down 5 percent and 4.31 percent, respectively. Tata Steel, ITC, M&M, Sesa Sterlite, Cairn India and NMDC tanked 3-4 percent. HDFC, HDFC Bank, L&T, Axis Bank, ONGC, HUL, Bharti Airtel and Maruti Suzuki were down 1-2.7 percent. However, Infosys maintained its northwared journey, up 6.34 percent post higher than expected earnings. Net profit of the company in Q2FY15 grew by 7.3 percent to Rs 3,096 crore and dollar revenue rose by 3.1 percent to USD 2,201 million on sequential basis. HCL Technologies, Sun Pharma, BHEL, Hero Motocorp, BHEL and Reliance Industries were other gainers, up 1-2.5 percent. Tyre stocks like JK Tyre and Apollo Tyres gained 1-2 percent as well as paint shares like Shalimar Paints and Asian Paints rallied 8 percent and 2 percent, respectively on fall in crude oil prices. Brent crude fell 1.4 percent to USD 88.88 a barrel. Paint and tyre companies are collateral beneficiaries of the decline in crude prices as a large part of their raw materials consists of oil coordinates.
Friday 10 October 2014
Sensex, Nifty tumble; paints, tyre shares outperform
The market has not been showing any sign of recovery yet. The Sensex dropped 196.20 points or 0.74 percent to 26441.08 and the Nifty tumbled 59.05 points or 0.74 percent to 7901.50. About 1038 shares have advanced, 1668 shares declined, and 120 shares are unchanged on the Bombay Stock Exchange. Nischal Maheshwari, Head Of Research, Edelweiss Securities expect a volatile ride for the Indian market since it is no more dependent on domestic fundamentals which have getting better by the day, but now there is cause of concern on the global fundamentals especially with IMF’s warning of global growth. However, every fall in the domestic market should be used as an opportunity to accumulate stocks where the earnings visibility is very strong, says Maheshwari. Although lower crude prices bodes well for India, it shows the demand world over has reduced, he adds. Commercial vehicle maker Tata Motors and aluminium major Hindalco extended losses in afternoon trade, down 5 percent and 4.31 percent, respectively. Tata Steel, ITC, M&M, Sesa Sterlite, Cairn India and NMDC tanked 3-4 percent. HDFC, HDFC Bank, L&T, Axis Bank, ONGC, HUL, Bharti Airtel and Maruti Suzuki were down 1-2.7 percent. However, Infosys maintained its northwared journey, up 6.34 percent post higher than expected earnings. Net profit of the company in Q2FY15 grew by 7.3 percent to Rs 3,096 crore and dollar revenue rose by 3.1 percent to USD 2,201 million on sequential basis. HCL Technologies, Sun Pharma, BHEL, Hero Motocorp, BHEL and Reliance Industries were other gainers, up 1-2.5 percent. Tyre stocks like JK Tyre and Apollo Tyres gained 1-2 percent as well as paint shares like Shalimar Paints and Asian Paints rallied 8 percent and 2 percent, respectively on fall in crude oil prices. Brent crude fell 1.4 percent to USD 88.88 a barrel. Paint and tyre companies are collateral beneficiaries of the decline in crude prices as a large part of their raw materials consists of oil coordinates.
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