The market rallied for the third consecutive session on Tuesday with the benchmark Nifty closing above the 7900 level supported by banks, metals, auto and capital goods stocks. The 30-share BSE Sensex rose 145.80 points to close at 26575.65 and the 50-share NSE Nifty climbed 48.35 points to 7927.75. Even the BSE Midcap and Smallcap close higher, up 0.9 percent and 0.2 percent, respectively. After looking at the kind of reforms announced by the government in last two days, experts expect the market to continue its upward trajectory in the days to come. The Sunday election results, then the couple of announcements that have come about for the coal as well as the diesel deregulation and the gas price hike, I think that changes the pace completely as far as the reforms are concerned, believe Nipun Mehta, founder and chief executive officer, Blue Ocean Capital Advisors. He feels there are going to be more expectations now coming in from the government between now and the finance budget about four months away. Meanwhile, in a move to decide the fate of coal blocks that were de-allocated by the Supreme Court recently, the government on Monday proposed an ordinance to allow e-auction of mines to private players while adding that state-run companies would be allocated mines directly. Auctioning of coal blocks in the next 3-4 months will be a positive for the industry, said Ravi Uppal, CEO and MD of Jindal Steel & Power (JSPL). JSPL rallied more than 7 percent followed by Sesa Sterlite with 4.4 percent gains. Tata Steel and Hindalco Industries climbed over a percent. Capital goods majors BHEL, and Larsen and Toubro rallied 4.3 percent and 1 percent, respectively. Gail India was also one of the top five gainers, up 4.4 percent. Top private sector lender ICICI Bank surged 2.6 percent while rival Axis Bank rose 1.3 percent and State Bank of India was up 0.7 percent. Tata Motors rose 1.5 percent as its subsidiary (British luxury carmaker) Jaguar Land Rover expects its China sales to grow 20 percent this year. Software services exporter Wipro climbed 3 percent ahead of earnings. CNBC-TV18 poll expects dollar revenue to jump 2.45 percent sequentially to USD 1783 million in September quarter. Shares of Bharti Airtel, Maruti Suzuki, NTPC and Hero Motocorp jumped 2-3 percent. However, ONGC and M&M dropped 2.5 percent. Reliance Industries, Infosys and Sun Pharma fell 0.5-1 percent. Coal India slipped 1.6 percent after the Cabinet recommended promulgation of an ordinance that will deal with the process of coal mine allocation of deallocated blocks. Investors of the state-run company are concerned that about the enabling clause within the ordinance that will allow commercial players in the coal mining business, once okayed. It is said this provision will serve as a threat to Coal India to ramp up its production. Earnings HDFC Bank closed flat post second quarter earnings met street expectations. The bank’s Q2 profit rose 20 percent on higher NII and other income year-on-year and asset quality was stable. But public sector lender Punjab National Bank fell 2.6 percent on lower than expected second quarter earnings. Profit grew 14 percent compared to estimates of 142 percent jump and asset quality deteriorated further with the gross non-performing assets rising sequentially (up 51 basis points Y-o-Y) to 5.65 percent from 5.48 percent. South Indian Bank dropped nearly 4 percent as the private sector lender’s second quarter net profit fell 40 percent year-on-year to Rs 76.3 crore dented by sharp jump in provisions. JSW Steel gained nearly 3 percent on beating street expectations on all parameters in second quarter earnings. The steel maker turned profitable, reporting consolidated net at Rs 748.7 crore as against loss of Rs 115.5 crore in the year-ago period. In the midcap space, PTC India Financial, Kalyani Steel, TVS Motor, PFC, Hexaware, SAIL, Apollo Tyres, BGR Energy, REC and Arvind surged 3-7 percent. However, Finacial Technologies tanked 20 percent after the government issued draft order for merger of NSEL with company, saying the entire business of NSEL will be transferred to Financial Technologies. Finance Technologies was not in favour of NSEL's merger with company. Helios and Matheson, Suzlon, Exide Industries, Jindal Saw, Zee Media and HCL Info were down 3-20 percent. About 1504 shares advanced while 1327 shares declined on the Bombay Stock Exchange.
Tuesday 21 October 2014
Nifty gains for 3rd day, ends above 7900; Wipro surges 3%
The market rallied for the third consecutive session on Tuesday with the benchmark Nifty closing above the 7900 level supported by banks, metals, auto and capital goods stocks. The 30-share BSE Sensex rose 145.80 points to close at 26575.65 and the 50-share NSE Nifty climbed 48.35 points to 7927.75. Even the BSE Midcap and Smallcap close higher, up 0.9 percent and 0.2 percent, respectively. After looking at the kind of reforms announced by the government in last two days, experts expect the market to continue its upward trajectory in the days to come. The Sunday election results, then the couple of announcements that have come about for the coal as well as the diesel deregulation and the gas price hike, I think that changes the pace completely as far as the reforms are concerned, believe Nipun Mehta, founder and chief executive officer, Blue Ocean Capital Advisors. He feels there are going to be more expectations now coming in from the government between now and the finance budget about four months away. Meanwhile, in a move to decide the fate of coal blocks that were de-allocated by the Supreme Court recently, the government on Monday proposed an ordinance to allow e-auction of mines to private players while adding that state-run companies would be allocated mines directly. Auctioning of coal blocks in the next 3-4 months will be a positive for the industry, said Ravi Uppal, CEO and MD of Jindal Steel & Power (JSPL). JSPL rallied more than 7 percent followed by Sesa Sterlite with 4.4 percent gains. Tata Steel and Hindalco Industries climbed over a percent. Capital goods majors BHEL, and Larsen and Toubro rallied 4.3 percent and 1 percent, respectively. Gail India was also one of the top five gainers, up 4.4 percent. Top private sector lender ICICI Bank surged 2.6 percent while rival Axis Bank rose 1.3 percent and State Bank of India was up 0.7 percent. Tata Motors rose 1.5 percent as its subsidiary (British luxury carmaker) Jaguar Land Rover expects its China sales to grow 20 percent this year. Software services exporter Wipro climbed 3 percent ahead of earnings. CNBC-TV18 poll expects dollar revenue to jump 2.45 percent sequentially to USD 1783 million in September quarter. Shares of Bharti Airtel, Maruti Suzuki, NTPC and Hero Motocorp jumped 2-3 percent. However, ONGC and M&M dropped 2.5 percent. Reliance Industries, Infosys and Sun Pharma fell 0.5-1 percent. Coal India slipped 1.6 percent after the Cabinet recommended promulgation of an ordinance that will deal with the process of coal mine allocation of deallocated blocks. Investors of the state-run company are concerned that about the enabling clause within the ordinance that will allow commercial players in the coal mining business, once okayed. It is said this provision will serve as a threat to Coal India to ramp up its production. Earnings HDFC Bank closed flat post second quarter earnings met street expectations. The bank’s Q2 profit rose 20 percent on higher NII and other income year-on-year and asset quality was stable. But public sector lender Punjab National Bank fell 2.6 percent on lower than expected second quarter earnings. Profit grew 14 percent compared to estimates of 142 percent jump and asset quality deteriorated further with the gross non-performing assets rising sequentially (up 51 basis points Y-o-Y) to 5.65 percent from 5.48 percent. South Indian Bank dropped nearly 4 percent as the private sector lender’s second quarter net profit fell 40 percent year-on-year to Rs 76.3 crore dented by sharp jump in provisions. JSW Steel gained nearly 3 percent on beating street expectations on all parameters in second quarter earnings. The steel maker turned profitable, reporting consolidated net at Rs 748.7 crore as against loss of Rs 115.5 crore in the year-ago period. In the midcap space, PTC India Financial, Kalyani Steel, TVS Motor, PFC, Hexaware, SAIL, Apollo Tyres, BGR Energy, REC and Arvind surged 3-7 percent. However, Finacial Technologies tanked 20 percent after the government issued draft order for merger of NSEL with company, saying the entire business of NSEL will be transferred to Financial Technologies. Finance Technologies was not in favour of NSEL's merger with company. Helios and Matheson, Suzlon, Exide Industries, Jindal Saw, Zee Media and HCL Info were down 3-20 percent. About 1504 shares advanced while 1327 shares declined on the Bombay Stock Exchange.
HDFC Bank Q2 profit rises 20% on higher NII, other income
India's second largest private sector lender HDFC Bank met street expectations with the second quarter net profit rising 20.1 percent to Rs 2,380 crore compared to Rs 1,982 crore in same quarter last year supported by higher other income and net interest income by impacted by higher provisions. Net interest income, the difference between interest earned and interest expended, grew by 23.1 percent to Rs 5,511 crore in the quarter ended September 2014 from Rs 4,476.5 crore in the year-ago period while net interest margin expanded 10 basis points sequentially to 4.5 percent from 4.4 percent. Profit was expected at Rs 2,398 crore and net interest income at Rs 5,275 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18. Other income (comprising of fees & commissions, foreign exchange & derivatives, profit on sale of investments) increased 11 percent to Rs 2,047 crore from Rs 1,844 crore during the same period while operating expenses jumped 19.2 percent to Rs 3,497.90 crore from Rs 2,934.2 crore Y-o-Y. Provisions and contingencies jumped 18 percent on yearly basis (down 5.6 percent quarter-on-quarter) to Rs 455.9 crore in the quarter gone by. Asset quality was stable with the gross non-performing assets (NPA) falling to 1.02 percent in second quarter of current financial year 2014-15 compared to 1.07 percent Q-o-Q and 1.09 percent Y-o-Y. Net NPA remained unchanged at 0.3 percent on sequential as well as yearly basis. The bank said total restructure loans were at 0.1 percent of gross advances as of September 2014 as against 0.2 percent in September 2013. In absolute term, gross NPA was flat (up 14.3 percent year-on-year) at Rs 3,362 crore compared to Rs 3,356 crore on sequential basis and net NPA declined 9 percent (up 19.6 percent Y-o-Y) to Rs 917.3 crore from Rs 1,007.4 crore quarter-on-quarter. Advances during the quarter grew by 21.8 percent year-on-year to Rs 3.27 lakh crore driven by domestic retail loans and wholesale loans while deposits jumped 24.8 percent to Rs 3.9 lakh crore in the same period.
Sensex up 150 pts, Bank Nifty at life high; ITC falls 1%
The Nifty sees gains for the third consecutive session retracing back to 7900 as sentiment turned positive with foreign investors returning to Indian market. Metal and cement stocks are also adding strength after the cabinet decision to introduce an ordinance to re-auction the de-allocated coal blocks which will be completed in the next 3-4 months. The Sensex is up 150.35 points at 26580.20, and the Nifty is up 45.30 points at 7924.70. About 1415 shares have advanced, 733 shares declined, and 81 shares are unchanged. The Bank Nifty is at a lifetime high today outperforming the Nifty month-to-date in October with a gain of 6.7 percent in the month versus a 0.44 percent gain for the Nifty. HDFC Bank and PNB also trade higher ahead of Q2 earnings today. Sesa Sterlite, GAIL, BHEL, NTPC and Bharti Airtel are top gainers in the Sensex. Among the losers are Coal India, ONGC, Sun Pharma, ITC and M&M. Globally, Asia is mostly lower reacting to a raft of economic data from china. GDP for Q3 in China came in at 7.3 percent slightly better than the estimated 7.2 percent but slower than the 7.5 percent in the previous quarter. September industrial data from China jumped 8 percent beating estimates but retail sales missed estimates.
Idea Cellular reports 69% rise in Q2 consolidated net profit
Idea Cellular has reported results for second quarter ended September 30, 2014.
The company has posted a rise of 71.57% in its net profit at Rs 664.60 crore for the quarter ended September 30, 2014 as compared to Rs 387.36 crore for the same quarter in the previous year. The company’s total income has registered a growth of 20.80% at Rs 7606.71 crore for quarter under review as compared to Rs 6296.45 crore for the quarter ended September 30, 2013.
On consolidated basis, the company’s net profit after taxes and minority interest for the quarter under review registered 68.87% growth at Rs 755.88 crore against Rs 447.61 crore in the September quarter of previous fiscal. The company’s total income has increased by 20.36% at Rs 7686.48 crore for the quarter from Rs 6385.91 crore in the similar quarter of previous year.
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