Bharat Forge shares fall 6% on CLSA downgrade

Bharat Forge shares slid as much as 6 per cent intraday on Wednesday after a global brokerage house CLSA downgraded the stock from 'buy' to 'sell'.

Bharat Forge shares slid as much as 6 per cent intraday on Wednesday after a global brokerage house CLSA downgraded the stock from ‘buy’ to ‘sell’.

At 12.25 pm, Bharat Forge shrares were down 3.72 per cent at Rs 898.50 apiece. The scrip opened at Rs 886 and had touched a high and low of Rs 905.60 and Rs 876.55, respectively, in trade so far. Sensex was down 29 points at 26,816.

Shares of Bharat Forge are heading towards biggest single day fall since August 24. The share price of the company declined 5.94 per cent on the day.

According to CLSA, operational outlook has weakened significantly on a worsening industrial exports, continued decline in new truck orders in the US, and slow recovery in its domestic industrial business.

CLSA has also cut Bharat Forge’s earnings per share (EPS) target for FY16-18 by 7-26 per cent, factoring in a slower growth across businesses.

In the past one year, the share price of Bharat Forge jumped 21.20 per cent to Rs 933.25 on October 13. Sensex gained 1.75 per cent during the same period.

For the quarter ended June 2015, the company posted net profit of Rs 195.32 crore, up 34.73 per cent, against Rs 144.97 crore in the corresponding quarter a year ago.

According to Eikon data, the scrip has 24 buy, 5 hold and 3 sell ratings.

Eicher Motors Jumps 2% on Royal Enfield's European Push

Shares of Eicher Motors advanced 1.76 per cent to hit intraday high of Rs 18,131.25 after the automaker said that it opened two exclusive stores of its flagship motorcycle brand Royal Enfield in Madrid and Paris, as part of its growth strategy in Europe.

The new stores are part of the company's growth strategy in Europe, it added.

"France and Spain represent two of the most important markets for us in Europe. We have witnessed immense growth in both France and Spain, which is fuelled by our close proximity to the customers in these regions through a wide distribution network and increasing dealership in the past few months," Royal Enfield international business head Arun Gopal said.

Royal Enfield has 80 dealerships across France and 25 in Spain and is expanding its presence in these markets. In France, Royal Enfield witnessed 60 per cent growth in the first seven months of 2015, compared to the same period last year.

As of 11:08 a.m., shares of Eicher Motors traded 1.68 per cent higher at Rs 18,115, outperforming the Nifty which was down 0.07 per cent.

TCS share price falls over 4% on weak Q2 earnings;

Tata Consultancy Services (TCS) share price fell as much as 4.40 per cent in the morning trade on Wednesday after the company delivered another soft quarter (Q2) of growth.

Tata Consultancy Services (TCS) share price fell as much as 4.40 per cent in the morning trade on Wednesday after the company delivered another soft quarter (Q2) of growth adding to the worries of Indian IT sector after Infosys cut US dollar revenue growth guidance and HCL Technologies’ revenue warning. However, broking house Sharekhan, in a note, said it retains its ‘valuation premium for TCS’, but tweaked estimates.

At 10.48 am (IST), TCS share price was trading 3.63 per cent down at Rs 2,503 apiece. The scrip opened at Rs 2,550 and had touched a high/ low of Rs 2,550 and Rs 2,483.05, respectively, in trade so far. Sensex was down 18.85 points at 26,827.68.

For the second quarter (Q2) ended September 2015, TCS posted net profit of Rs 6,084 crore, up 7.05 per cent against Rs 5,684.12 crore in the sequential quarter ended June, 2015. Net profit of the company jumped 16.02 per cent on year-on-year basis. Net sales of the company jumped 5.83 per cent qoq at Rs 27,165.48 crore.

Sarabjit Kour Nangra, VP research, IT, Angel Broking, said, “TCS, posted results below expectation on sales front and net profit, while the EBIT margins remained in line with expectations. On sales front, the company posted a 3 per cent sequential growth in dollar revenues to $4,156 mn V/s $4,177 mn expected. On constant currency (CC), the company posted a 3.9 per cent qoq rise in sales. In rupee terms, revenues came in at INR 27,165 cr V/s INR 27,244 cr expected.”

On the TCS results, Sharekhan in a research report said, “We have tweaked our earnings estimates attributed to the revenue miss and reset of currency estimates to Rs 65 and Rs 64 for FY2016E and FY2017E. At the current market price, the stock trades at 21x and 19x its FY2016 and FY2017 earnings estimates. We continue to remain positive on TCS,

given its strong positioning, scale advantage and headstart in the digital technology space (highest among the top Indian IT companies), which justify the valuation premium for TCS over others. We maintain our ‘Buy’ rating on the stock with an unchanged price target of Rs 3,000.”

Fraudsters use ‘duplicate’ email to dupe ONGC, Saudi company

In one of the biggest cyber crimes in Mumbai, the Oil and Natural Gas Corporation Limited (ONGC) lost Rs 197 crore after cyber criminals duplicated the public sector firm’s official e-mail address with minor changes and used it to convince a Saudi Arabia-based client to transfer payments to their account.

In one of the biggest cyber crimes in Mumbai, the Oil and Natural Gas Corporation Limited (ONGC) lost Rs 197 crore after cyber criminals duplicated the public sector firm’s official e-mail address with minor changes and used it to convince a Saudi Arabia-based client to transfer payments to their account.

The fraud was committed on the promise that the company making the payment would not notice a minor change in the e-mail address of the ONGC representative, with whom they had been communicating. While ONGC communicated with the company from patel_dv@ongc.co.in, the fraudsters duped the company by communicating with them from patel_dv@ognc.co.in.
According to the BKC cyber police team probing the case, ONGC had an order to deliver 36,000 metric tonnes of Naphtha — flammable liquid hydrocarbon mixtures — to Saudi Aramco, an oil company based in Dhahran.
On September 7, ONGC dispatched the order, worth Rs 100.15 crore, from Hazira port in Surat. According to the police, the company usually transferred payments to ONGC’s State Bank of India (SBI) account, but did not do so this time.
“ONGC was to send a second batch of naphtha to Aramco on September 22. However, since they had not received the earlier payment, they enquired with the Saudi-based company,” an officer said. On being told that the delay was on account of public holidays and bank holidays, ONGC dispatched the second batch of Naptha worth Rs 97 crore on September 22. Again, ONGC e-mailed a scanned copy of the tax invoice with its SBI account number to the company.
Again, no payments were received in the ONGC account. What finally set alarm bells ringing was an e-mail ONGC received on October 7 from Aramco stating that the money had been transferred to a new account. When the PSU contacted Aramco, they were told the company had merely followed up on ONGC’s request to deposit the money into an account in Bangkok Bank Public Company Limited. “ONGC had never made such a request,” the officer said.
As soon as an official complaint was registered on October 10, Additional Commissioner of Police K M M Prasanna instructed the cyber crime police station to probe the matter on priority. During investigations, police found that someone aware of the e-mail communication between ONGC and Aramco regarding the transfer of a large sum of money had created an e-mail ID similar to an official ONGC email ID.
“The communication from ONGC was done using the e-mail ID patel_dv@ongc.co.in. The fraudsters merely created an e-mail address patel_dv@ognc.co.in,” said senior police inspector S Mahadik.
Using this ID, the fraudsters began to communicate with Aramco, and as the second email ID appeared almost identical to the original, Aramco officials did not notice the difference. The fraudsters then sent an e-mail asking for the payment to be deposited to a Bangkok-based account. Officers of the BKC cyber police station said an FIR has been registered under Sections 419 (cheating by impersonation), 420 (cheating), 465 (forgery), 468 (forgery for purpose of cheating), 471(using a forged document) of the Indian Penal Code and Sections 66 C (punishment for identity theft) and D (cheating by impersonation using computer resource) of the Information Technology Act. ONGC was unavailable for comment.

DCB Slumps 20% as Q2 Earnings Disappoint

Shares of DCB Bank plunged nearly 20 per cent to Rs 106.80 on Wednesday after the private sector lender's second-quarter earnings disappointed the Street.

It reported a 10 per cent decline in net profit at Rs 36.93 crore for the second quarter ended September, hurt by higher provisioning for bad loans.

The lender had announced its Q2 earnings near the close of Tuesday's trading session. The stock fell nearly 3 per cent yesterday.

Provisioning for bad loans and other contingencies rose significantly to Rs 21.67 crore during the quarter under review from Rs 13.75 crore a year ago.

DCB Bank's total income during the July-September quarter of 2015-16 rose to Rs 464.87 crore, compared to Rs 371.83 crore in the year-ago period.

On the asset front, the lender also saw a slight deterioration. Its gross non-performing assets (NPAs) as a percentage of gross advances moved slightly up at 1.99 per cent as against 1.9 per cent a year ago. Similarly, net NPAs or bad loans were at 1.16 per cent of the net advances in the second quarter, from 1.07 per cent a year earlier.

Slippages or fresh loans that turned bad rose sharply to Rs 62 crore in Q2 as compared to Rs 42 crore in the same period a year ago.

The results were below expectations, said Mehraboon Irani of Nirmal Bang Securities. He attributed the selloff in DCB Bank to over-ownership among institutions and rich valuations. "DCB is one of those stocks in which people have made very good money over the last 3-4 years. On top of it, it is largely a favoured stock by quite a few funds. In that context, the earnings were disappointing."

DCB stock had outperformed in the past one year as compared to the Bank Nifty. Mr Irani remains positive on the stock from a long-term perspective.

Brokerage Kotak downgraded the stock to sell from buy following the earnings announcement, with a target price of Rs 100.

At 10:24 a.m., the stock was locked in the 20 per cent lower circuit limit as compared to a flat Nifty. 

Avoid TCS; Buy Jet Airways, RCom, Reliance Capital: Chandan Taparia

Stock Talk:
Buy Jet Airways: The stock had strong resistance around Rs 345 level, which it breached with strong volumes and closed above it on Tuesday. It also crossed its 50-day moving average which led to buying in the stock. Traders can buy the stock with a stop-loss at Rs 345-Rs 350 for a target of Rs 385-Rs 390. The stock may also scale levels of Rs 420 in the short term.

Buy Kaveri Seeds Company: The stock has made a bottom and crossed its huddle around Rs 480 levels. Bullish bets have been built up in the stock. It can reach levels of Rs 525-Rs 530 on the upside. Risk-reward ratio looks good for the stock.

Short Idea Cellular: The stock broke its immediate support of Rs 156 and short positions str seen building up in the stock. The stock may fall to Rs 147-Rs 148 levels.

Buy Reliance Communication: The stock has surpassed its previous resistance of Rs 77 and may gain up to Rs 82 levels. It has also witnessed addition of bullish bets. Conservative traders can buy Rs 80 strike call.

Buy Reliance Capital: It has crossed a major resistance of around Rs 390 level with good volumes. Momentum in the stock may continue till Rs 415 levels.

Avoid TCS: A built-up of short positions has been seen in the last few trading sessions. The stock is likely to remain in the Rs 2,500-Rs 2,750 range. If it comes near to the Rs 2,500 range, one can look to buy the stock.

Nifty Struggles Near 8,100, TCS Slumps 4%

BSE Sensex and Nifty struggled in early trade today amid weak Asian markets. The Sensex fell over 100 points in early trade while Nifty slipped below 8100, before paring some losses.

Here Are Top 10 Developments:

1) Market heavyweight TCS fell 4 per cent on its Q2 earnings. Though the profit was better than estimates, India's biggest outsourcer missed expectations in terms of constant currency revenue growth. TCS management highlighted strong business momentum and this could support the stock at lower levels, say analysts. The second half of the year is traditionally a weaker period for Indian IT companies.

2) Commenting on TCS Q2 earnings, brokerage Maybank in a report said strong volume and orderbook growth lend confidence. It maintains 'buy' on TCS shares.

3) FMCG major HUL will announce its earnings later in the day. The stock traded 0.5 per cent lower.

4) Rate sensitive banking and auto stocks were under some pressure.

5) Some buying was seen in FMCG and healthcare stocks, lending some support to the market.

6) Domestic institutional investors, who have all along been strong buyers of Indian equities in the past few months, have been net sellers in the past six sessions, putting pressure on markets at higher levels.

7) Analysts say if Nifty breaches 8,000 levels it could accelerate selling pressure.

8) Gaurang Shah of Geojit BNP Paribas Financial Services said that it will be difficult for Nifty to sustain above 8,200 levels on the upside. Markets are unlikely to draw much support from the earnings and the Bihar election results would provide direction to the markets, he added.

9) Asian markets were under pressure today with Japan's Nikkei down nearly 2 per cent.

10) On Wall Street on Tuesday, stocks slipped, with the S&P 500 touching a fresh seven-week high before ending solidly down.