Choppy session ends flat ahead of F&O expiry

It was yet another volatile trading session. After opening with a gap up, the market was unable to hold on to its early gains. In fact, the indices gave up all the gains amid selling pressure witnessed in metals, banking and the realty stocks. Even the small-cap stocks were under pressure. Traders and investors preferred to remain on the sidelines ahead of the F&O expiry. The Fed’s policy announcement later today will also drive sentiment globally. 

On the other hand, capital goods, IT, pharma and select telecom stocks were among the major gainers. 

Finally, BSE Sensex closed at 20,647 down 36 points, while NSE Nifty closed at 6,120 down 6 points over the previous close. 

Indian Overseas Bank reports 36% fall in Q3 net profit

Indian Overseas Bank has reported results for third quarter ended December 31, 2013.

The bank has reported 35.56% fall in its net profit at Rs 75.07 crore for the quarter as compared to Rs 116.50 crore for the same quarter in the previous year. However, total income of the bank has increased by 5.87% at Rs 6190.26 crore for quarter under review as compared to Rs 5846.98 crore for the quarter ended December 31, 2012.

The bank’s gross NPA for the December 31, 2013 quarter of the current fiscal stood at 5.27%, as compared to 4.13% in the same quarter of the previous year. Besides, bank’s Net NPA stood at 3.24% as compared to 2.33% in the same quarter of the previous year.

GAIL India reports 31% rise in Q3 net profit

GAIL India has reported results for third quarter ended December 31, 2013.

The company has reported 30.71% rise in its net profit at Rs 1679.40 crore for the quarter as compared to Rs 1284.86 crore for the same quarter in the previous year. Total income from operations of the company increased by 28.09% at Rs 16038.52 crore for quarter under review, as compared to Rs 12521.55 crore for the quarter ended December 31, 2012.

GAIL is India's flagship natural gas company integrating all aspects of the natural gas value chain including exploration and production, processing, transmission, distribution and marketing and related services.

Shriram Transport reports 13% fall in Q3 consolidated net profit

Shriram Transport Finance Company has reported results for third quarter ended December 31, 2013.

The company has reported 12.89% fall in its net profit at Rs 301.38 crore for the quarter as compared to Rs 345.99 crore for the same quarter in the previous year. However, total income from operations of the company increased by 21.18% at Rs 2033.54 crore for quarter under review, as compared to Rs 1678.14 crore for the quarter ended December 31, 2012.

On the consolidated basis, the group has reported 13.45% fall in its net profit after taxes, minority interest and share of profit of associates at Rs 324.85 crore for the quarter as compared to Rs 375.33 crore for the same quarter in the previous year. However, total income from operations of the company has increased by 22.06% at Rs 2196.99 crore for quarter under review as compared to Rs 1799.91 crore for the quarter ended December 31, 2012.

TVS Motor reports 31% rise in Q3 net profit

TVS Motor Company has reported results for third quarter ended December 31, 2013.

The company has reported 31.17% rise in its net profit at Rs 68.80 crore for the quarter as compared to Rs 52.45 crore for the same quarter in the previous year. Total income from operations of the company has increased by 12.95% at Rs 2057.60 crore for quarter under review as compared to Rs 1821.59 crore for the quarter ended December 31, 2012.

TVS Motor Company is the flagship of the $6 billion Indian conglomerate, TVS Group which recently celebrated one hundred years in the automotive business in India. The company recently won 'India's Most Trusted Two Wheeler Brand' Award from the Times Group.

ICICI Bank reports 9% rise in Q3 consolidated net profit

ICICI Bank has reported results for third quarter ended December 31, 2013.

The bank has registered a rise of 12.53% in its net profit at Rs 2532.21 crore in Q3FY14 as compared to Rs 2250.24 crore in the corresponding quarter previous year. The total income of the bank has increased by 15.40% to Rs 14255.96 crore for the quarter under review as compared to Rs 12352.91 crore in the same quarter last year.

On the consolidated basis, the group has reported 8.61% rise in its net profit at Rs 2872.30 crore for the quarter as compared to Rs 2644.61 crore for the same quarter in the previous year. Total income of the group has increased by 9.76% at Rs 20543.46 crore for quarter under review as compared to Rs 18715.39 crore for the quarter ended December 31, 2012.

Havells India reports 28% jump in Q3 net profit

Havells India has reported results for third quarter ended December 31, 2013.

The company has reported 28.32% rise in its net profit at Rs 121.47 crore for the quarter as compared to Rs 94.66 crore for the same quarter in the previous year. Total income of the company has increased by 12.76% at Rs 1195.10 crore for quarter under review as compared to Rs 1059.90 crore for the quarter ended December 31, 2012.

Havells India is engaged in selling products in Kerala for several years and the business has shown an upward trend in terms of turnover in a short span of time. It has 10 manufacturing facilities in India in various states, including Himachal Pradesh, Uttar Pradesh and Rajasthan.

ICICI Bank plans to open four new branches in Arunachal Pradesh: Report

ICICI Bank, India's largest private sector bank is reportedly planning to expand its branch network in Arunachal Pradesh by opening 4 new branches at Naharlagun, Bomdila, Pasighat and Tawang within 6 months. The bank is also planning to open a branch in every district headquarters within the next two years. The bank will offer the entire gamut of ICICI Bank products including a comprehensive range of deposits, loans and NRI services through these branches.

ICICI Bank has more than 3,595 branches and extension counters, and over 11,160 ATMs spread across the country. The Bank services its large customer base through a multi-channel delivery network of branches, ATMs, call center and internet banking.

Karur Vysya Bank reports 5% fall in Q3 net profit

Karur Vysya Bank has reported results for third quarter ended December 31, 2013.

The bank has reported 5.50% fall in its net profit at Rs 106.82 crore for the quarter as compared to Rs 113.04 crore for the same quarter in the previous year. However, total income of the bank has increased by 19.19% at Rs 1403.61 crore for quarter under review as compared to Rs 1177.59 crore for the quarter ended December 31, 2012.

The bank’s gross NPA for the December 31, 2013 quarter of the current fiscal stood at 1.47%, as compared to 1.29% in the same quarter of the previous year. Besides, bank’s Net NPA stood at 0.48% as compared to 0.38% in the same quarter of the previous year.

Godrej Properties shines on reporting 5% rise in Q3 consolidated net profit

Godrej Properties is currently trading at Rs. 160.45, up by 1.65 points or 1.04% from its previous closing of Rs. 158.80 on the BSE.

The scrip opened at Rs. 159.90 and has touched a high and low of Rs. 162.80 and Rs. 159.30 respectively. So far 24,000 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 5 has touched a 52 week high of Rs. 297.28 on 29-Jan-2013 and a 52 week low of Rs. 155.65 on 27-Jan-2014.

Last one week high and low of the scrip stood at Rs. 167.25 and Rs. 155.65 respectively. The current market cap of the company is Rs. 3,197.00 crore.

The promoters holding in the company stood at 74.96% while Institutions and Non-Institutions held 15.51% and 9.53% respectively.

The company has reported 33.96% fall in its net profit at Rs 18.35 crore for third quarter ended December 31, 2013 as compared to Rs 27.79 crore for the same quarter in the previous year. Total income from operations of the company decreased by 24.17% at Rs 74.76 crore for quarter under review, as compared to Rs 98.60 crore for the quarter ended December 31, 2012.

On the consolidated basis, the group has reported 5.32% rise in its net profit at Rs 37.36 crore for the quarter as compared to Rs 35.47 crore for the same quarter in the previous year. However, total income from operations of the company has decreased by 9.18% at Rs 241.95 crore for quarter under review as compared to Rs 266.41 crore for the quarter ended December 31, 2012.

Economy’s growth likely to remain below 5% in 2013-14: RBI

The Reserve Bank of India (RBI) has forecasted the Indian economic growth to fall below 5 percent in 2013-14 as the prospects of a pick-up in real GDP growth in the second half of 2013-14 have been dampened by negative growth witnessed in industrial production over two consecutive months. In the previous fiscal, India's economic growth slowed down to a decade low of 5 percent owing to the global slowdown as well as domestic factors such as high inflation and interest rates.

The RBI in its latest Macroeconomic and Monetary Developments report, highlighted that consumption demand would continue to weaken and lackluster capital goods production indicated stalled investment demand. However, giving some respite, it asserted that growth is likely to recover to 5.5 percent in the next financial year and added that there could also be a case of gradual recovery to the 5-6 percent band on the back of fast track implementation of infrastructure projects cleared by the Cabinet Committee on Investments (CCI), global growth recovery and easing inflation.

Referring to country’s external sector, the report said the current account deficit, which widened to all time high of 4.8 percent of GDP in FY13, will ease to 2.5 percent this fiscal. On the exchange rate front, the RBI expects the rupee to be at the 61 levels by December 2014. However, the central bank expressed concerns over the coming general elections adding that new government’s commitment to reforms hold the key for the future stability of the market and the rupee.

Punjab & Sind Bank reports 36% rise in Q3 net profit

Punjab & Sind Bank has reported results for third quarter ended December 31, 2013.

The bank has reported 35.87% rise in its net profit at Rs 100.11 crore for the quarter as compared to Rs 73.68 crore for the same quarter in the previous year. Total income of the bank has increased by 9.78% at Rs 2177.58 crore for quarter under review as compared to Rs 1983.48 crore for the quarter ended December 31, 2012.

The bank’s gross NPA for the December 31, 2013 quarter of the current fiscal stood at 3.84%, as compared to 2.55% in the same quarter of the previous year. Besides, bank’s Net NPA stood at 2.68% as compared to 1.86% in the same quarter of the previous year.

NTPC reports 10% rise in Q3 net profit

NTPC has reported results for third quarter ended December 31, 2013.

The company has reported 10.18% rise in its net profit at Rs 2861.28 crore for the quarter as compared to Rs 2596.76 crore for the same quarter in the previous year. Total income of the company has increased by 18.21% at Rs 19554.07 crore for quarter under review as compared to Rs 16541.04 crore for the quarter ended December 31, 2012.

NTPC is the largest power generating company in the country. It has also diversified into hydro power, coal mining, power equipment manufacturing, oil & gas exploration, power trading & distribution.

State Bank of India to raise $1.5 billion through QIP issue

State Bank of India (SBI), the country’s largest public sector bank will be raising close to $1.5 billion for which it has launched a qualified institutional placement (QIP) on January 28, 2014. The QIP price band is Rs 1,565-1,596.

The issue will be closed for global and local investors on January 29, 2014. Deutsche Bank, CITI, UBS, HSBC, JP Morgan, SBI Caps are bankers to the QIP issue.

State Bank of India has reported 35.07% fall in its net profit at Rs 2375.01 crore for the second quarter ended September 30, 2013 as compared to Rs 3658.14 crore for the same quarter in the previous year. However, total income of the bank has increased by 12.88% at Rs 37199.92 crore for quarter under review as compared to Rs 32953.47 crore for the quarter ended September 30, 2012.

Central bank rate hike a commitment to restrain inflation: Rangarajan

Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan has underscored the Reserve Bank's latest move for hiking the key lending rate by 0.25 percent a reflection of its ‘strong commitment’ to check inflation. Rangarajan added that the price stability is the main objective of the monetary policy and latest hike may be last in the series of increasing in policy rates if inflation moves along the central bank’s expected direction. The RBI increased the repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 8.0% from 7.75%.

By adding further, Rangarajan asserted that the decision to increase the interest rate is once again reflection of shift in focus from wholesale price inflation to retail inflation, which has been still elevating at close to double digits. The CPI inflation recorded at 9.87% on y-o-y basis in the month of December as against 11.24% in the previous month. While, WPI inflation eased to five month low at 6.16%  in the month of December from a year earlier as against 14-month high of 7.52% in November. 

Referring to the economic growth, PMEAC Chairman expects that growth rate for the current year to be around 5 percent, and 6-6.5 per cent in next fiscal. Meanwhile, Rangarajan projection for growth was higher than what the RBI has indicated. Central bank projected the GDP growth to be less than 5 percent in current fiscal and around 5.5 percent for next fiscal.

Bharti Airtel reports over two fold jump in Q3 consolidated net profit

Bharti Airtel has reported results for third quarter ended December 31, 2013.

The company has reported over two fold jump in its net profit at Rs 1797.10 crore for the quarter as compared to Rs 750.30 crore for the same quarter in the previous year. Total income of the company has increased by 10.98% at Rs 12589.40 crore for quarter under review as compared to Rs 11344.00 crore for the quarter ended December 31, 2012.

On the consolidated basis, the group has reported over two fold jump in its net profit at Rs 610.20 crore for the quarter ended December 31, 2013 as compared to Rs 283.70 crore for the same quarter in the previous year. Total income of the group has increased by 13.34% at Rs 21960.70 crore for quarter under review as compared to Rs 19375.60 crore for the quarter ended December 31, 2012.

HPCL’s arm to acquire stakes in two gas fields in Australia: Report

Hindustan Petroleum Corporation’s (HPCL) subsidiary Prize Petroleum has reportedly inked an agreement to buy stakes of Australian major AWE in two fields of that country. Prize Petroleum will acquire 11.25% interest in T/L1, part of BassGas infrastructure and Yolla field, and a 9.75% interest in T/18P of Trefoil field in Australia for $85 million. The field is held by a consortium in which Origin Energy, AWE and Toyota Tsusho are the major partners.

The fields are located in shallow water in Bass basin between mainland Australia and Tasmania offshore Victoria. In addition, the acquisition will also entail a stake in offshore platform, gas processing plant and a 147 kilometre subsea pipeline.

HPCL operates two major refineries producing a wide variety of petroleum fuels and specialties, one in Mumbai (west coast) of 6.5 million metric tonnes per annum (MMTPA) capacity and the other in Vishakapatnam, (east coast) with a capacity of 7.5 MMTPA.

Reliance Power commences commercial operations at second unit of Sasan UMPP

Reliance Power has commenced commercial operations at the second 660MW unit of the 3,960 MW (6X660 MW) Sasan Ultra Mega Power Plant (UMPP) being developed by Sasan Power, a wholly owned subsidiary of the company.

Reliance Power is a part of the Reliance Anil Dhirubhai Ambani Group and is established to develop, construct and operate power projects domestically and internationally.

Indices to open on a higher note

The RBI governor sprang a rabbit out of his hat with a rate hike when the consensus was of a status quo. The repo and MSF rates were raised by 25bps to 8% and 9% respectively while the CRR was left unchanged at 4%. Stating that the RBI is neither hawk, nor dove, Raghuram Rajan said, “We are owls. The owl is traditionally a symbol of wisdom. We are vigilant when others are resting,” add that that the RBI is doing what is necessary for the economy.

The RBI governor made it clear that the primary focus is not the investors, not the markets; it is the consumer and how to bring inflation down for the Indian consumer. In its recent policies, RBI has been laying more emphasis on CPI as an inflation benchmark and therefore making it the key determinant of its inflation-curbing actions. A rate hike of 25bps at this juncture, the RBI says, was required to stem upside risks to the central bank’s CPI forecast of 8% for the next 12 months.   

The outlook is a positive start. Global cues are relatively healthy for a change. Bharti Airtel and ICICI Bank results will be in focus today. Even as FIIs were selling domestic institutions saw one of their best single-day buying as they turned net buyers to the tune of Rs11.78bn. Asian markets are marginally higher. US indices eked out some gains.