We had said yesterday that a higher high on the Nifty would be the first sign of reversal. Today the market closed well above yesterday’s high. Now the Nifty will try to have a go at 6,100 again
Gains in rate-sensitive sectors like realty and auto, and global cues helped the market close near the highs of the day. We had said yesterday that a higher high on the Nifty would be the first sign of reversal. Today the market closed well above yesterday’s high. Now the Nifty will try to have a go at 6,100 again. The National Stock Exchange (NSE) recorded volumes of 89.97 crore shares and advance-decline volumes of 882:558.
The market opened with small gains on hopes that the Reserve Bank of India (RBI), in its policy review meeting on 29th January, will reduce interest rates. Markets in Asia were mostly up on positive economic data from across the world while the US markets closed mixed overnight, as a drop in Apple Inc shares, pulled the Nasdaq lower.
Back home, the Nifty opened six points higher at 6,025 and the Sensex started off at 19,946, a gain of 22 points over its previous close. The volatile market dipped to its low in early trade with the Nifty at 6,014 and the Sensex going back to 19,928.
The benchmarks overcame the early hiccups and began on a northward journey as buyers picked up stocks of auto, consumer durables, healthcare and capital goods sectors.
Meanwhile, India’s largest car maker Maruti Suzuki India today reported an over two-fold jump in net profit at Rs501.29 crore for the third quarter ended December 201 compared to Rs205.62 crore during the same period last fiscal. Net sales during the period under review stood at Rs10,956.95 crore, up 45.57% from Rs7,527.10 crore in the year-ago period.
The indices continued their upmove in noon trade, as investors picked up stocks at lower levels after the recent decline in the market. A strong opening of the key European markets also supported the sentiments.
The market hit its highs towards the close of the trading session with the Nifty rising to 6,081 and the Sensex at 20,129. The benchmarks closed near the highs on hopes from the RBI on rates next week. The firm European markets also supported the gains.
The Nifty closed 55 points (0.92%) higher at 6,075 and the Sensex logged off at 20,104, a gain of 180 points (0.90%).
Markets in Asia settled mixed as consumer prices in Japan fell for the seventh time in eighth month in December making a case for further easing of the country’s monetary policy to boost growth.
The Jakarta Composite gained 0.43%; KLSE Composite rose 0.11%; the Nikkei 225 jumped 2.88% and the Straits Times advanced 0.64%. Among the losers, the Shanghai Composite declined 0.49%; the Hang Seng lost 0.08%; the Seoul Composite dropped 0.91% and the Taiwan Weighted fell 0.30%.
At the time of writing, the key European indices were up between 0.16% and 1.01% and the US stock futures were in the green, an indication of a firm opening for US stocks later in the day.
Back home, foreign institutional investors were net buyers of shares totalling Rs1,026.31 crore on Thursday while domestic institutional investors were net sellers of equities amounting to Rs752.26 crore.
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Maruti’s recently launched New Alto 800 has picked up well in the festive season and is expected to do well in the fourth quarter. This coupled with the order backlog for Swift, Swift Desire and Ertiga is expected to drive the demand scenario for the auto major
New Delhi: Riding on good sales of new variants like Ertiga and Swift DZire, and benefiting from low base effect, the country’s largest car maker Maruti Suzuki India on Friday reported an over two-fold jump in net profit to Rs501.29 crore for the third quarter, reports PTI.
The company’s net profit stood at Rs 205.62 crore during the same period last fiscal.
Net sales during the third quarter to end-December, stood at Rs10,956.95 crore, up 45.57% from Rs7,527.10 crore in the year-ago period, Maruti Suzuki India (MSI) said in a statement.
“The growth in net profit was primarily due to higher sales and good response to new models like Ertiga and Swift DZire,” it said, adding the company's continued cost reduction efforts helped to drive profit in the quarter.
Hit by low sales and labour unrest at its Manesar plant and rupee depreciation, the car maker, a unit of Japanese Suzuki Motor Corporation, had reported a 63.6% fall in net profit for the quarter ended 31 December 2011, to Rs205.6 crore, its worst performance in previous 12 quarters.
MSI said its sales volume stood at 3.01 lakh units during the third quarter this fiscal as compared to 2.4 lakh units in the corresponding period of previous year, up 25.85%.
Cheering the smart earnings numbers, shares of MSI were trading 4.10% up at Rs1,599.50 crore apiece during afternoon on the BSE.
During the quarter under review, the company sold 2.7 lakh units in the domestic market compared to 2.1 lakh units, reflecting a growth of 26.98%.
It exported 32,496 units during the quarter, up 17.21% from 27,725 units in the year-ago period.
"The growth in net sales was on account of higher volumes, favourable model mix and enhanced export realisation," MSI said.
During the quarter, the company's total expenses went up by 39.86% to Rs10,667.40 crore from Rs7,627.32 crore in the year-ago period.
MSI spent Rs8,376.04 crore on raw materials compared to Rs5,866.26 crore in the same period last fiscal, up 42.78%, the statement said.
During October-December period last year, MSI's tax expenses also increased by over three-fold to Rs174.34 crore as against Rs55.68 crore in the corresponding three-monthly period in 2011.
The finance cost of the company also went up by over two-fold to Rs45.93 crore from Rs17.59 crore in the same period last fiscal, MSI said.