03:30 pm Market close
The market ended at record closing high on expiry
of January F&O series. The Nifty ended at 8952, up 38.05 points while the
Sensex was up 122.59 points at 29681.77. Top gainers in January series were DLF
(up 26.6 percent), Tata Motors (up 24 percent) and Axis Bank (up 21 percent).
Nifty gained 9.5 percent while Bank Nifty surged 10.7 percent in the series.
In today's trading session, Dr Reddy's Labs, HDFC
Bank, BHEL, Reliance and ITC were top gainers in the Sensex. Among the losers
were HDFC, SBI, M&M, Coal India and Maruti Suzuki.
03:10 Rights issue
Tata Motors intends to utilise Rs 7,500
crore, which it plans to raise via a rights issue, to fund various activities,
including introduction of more than 100 new commercial vehicles over the next
three years and passenger vehicles on a new modular platform from FY 2016-17.
The company, which is seeking shareholders’
approval through postal ballot for raising funds up to Rs 7,500 crore through a
rights issue of ordinary shares, also intends to use the funds to expand in
international markets.
“The rights issue proceeds are expected to be
utilised to finance a portion of the ongoing capital expenditure, including
product development expenses; invest in subsidiaries to support future growth
opportunities in India and abroad,” Tata Motors said in a filing to the BSE.
2:55 pm Royalty restrictions?
The Finance Ministry has turned down a DIPP
proposal seeking re-introduction of restrictions on royalty payments for
preventing excessive outflow of foreign exchange, saying it would send a
negative signal to overseas investors.
The ministry, according to sources, is of the
view that imposing restrictions on royalty payments will be "retrograde
step" and not in sync with the liberalised FDI policy environment. Worried
over excessive outflow of foreign exchange as royalty and fees for technology
transfer, and use of brand names, the Department of Industrial policy and
Promotion (DIPP) had mooted a proposed to re-introduce restrictions on such
payments by foreign companies to their parent entities.
02:40 pm Results
Commercial vehicle maker Ashok Leyland
turned profitable in the quarter ended December 2014. Net profit for the
quarter stood at Rs 32.1 crore against loss of Rs 167.2 crore in the year-ago
period. Higher other income and lower finance cost supported the profitability
but tax cost restricted profit growth.
Topline and operational performance beat street
estimates while the bottomline slightly missed expectations. Profit was
expected at Rs 35.8 crore on revenue of Rs 3,195 crore for the quarter,
according to the average of estimate of analysts.
Revenue shot up 72.1 percent year-on-year to Rs
3,361 crore, driven by strong sales volume growth.
Total volumes during the quarter grew 38 percent
on yearly basis to 25,397 units led by medium and heavy commercial vehicle
(MHCV) sales. MHCV volumes saw a solid 70 percent growth while light commercial
vehicle sales declined 8 percent Y-o-Y.
02:30pm Adani Enterprises in focus
Adani Enterprises plans to announce a mega
restructuring plan tomorrow reports’s Varinder Bansal quoting sources.
The restructuring is mainly to remove the holding
structure and then focus on the core business of the left entity, which would
be mining, trading, agri, logistics etc.
The current market cap of Adani Enterprises is Rs
65,000 crore because it owns 74.99 percent in Adani Ports and 68.99
percent in Adani Power.
Post the restructuring process, the company is
also looking at raising funds.
Post restructuring, analysts do not expect a huge
upside for the stock from current levels but it will undoubtedly be a clean
structure.
02:00pm Market Check
Equity benchmarks as well as broader markets
continued to consolidate on expiry day for the January derivative contracts.
Weak global cues and expiry factors kept markets subdued.
The 30-share BSE Sensex fell 101.55 points to
29457.63 and the 50-share NSE Nifty declined 31.95 points to 8882.35. About
1290 shares have advanced, 1475 shares declined, and 260 shares are unchanged
on the Bombay Stock Exchange.
Manish Gunwani of ICICI Prudential AMC expects a
correction or minor consolidation in the near term. However, the market looks
good with a 2-3 years perspective, he say.
Global markets are weak today. Asian markets like
Shanghai closed with losses of more than 1 percent while European equities like
FTSE traded down more than 0.5 percent as oil declined and Greece weighed.
NYMEX crude traded at USD 44 a barrel, the lowest level since March 2009.
Telecom stocks like Bharti Airtel, Idea Cellular
are under pressure after the Cabinet approved 3G auction reserve price at Rs
3,705 crore which is 36 percent higher than the TRAI recommendation and 10.6
percent higher than the previous 3G auction held in 2010.
In key earnings reactions today, Asian Paints
disappointed after Q3 profit rose 12 percent, lower than expectations of 30
percent growth. The stock fell 3 percent. HDFC dropped over 2 percent after the
housing finance company reported 11.5 percent growth in profit, in line with
estimates. However, Dr Reddy's Labs reported a 7 percent fall in profit in Q3,
which is higher compared to expectations of 14 percent decline. In midcaps, VIP
Industries and OBC tanked 7 percent after weak numbers.
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