Stocks
India Inc to witness another forgettable quarter: CRISIL Research
Soft commodity prices, weak growth in investment-linked sectors and subdued rural demand might lead to disappointing results for the quarter ending June 30, independent analysis firm CRISIL Research said on Tuesday.
 
In an analysis of 600 companies (excluding financial and oil and gas companies) representing 70 percent of the overall market capitalization, it said it found only a three percent uptick in revenue growth.
 
However, the growth is 230 basis points over the 0.7 percent seen in the quarter ending March 31, 2015, CRISIL Research said in a statement.
 
The moderate growth expected in export-oriented consumer driven sectors will be impacted by continued weak performance of investment-linked sectors and low global commodity prices, it added.
 
"Export-oriented sectors and some domestic consumption-driven sectors (such as retail, FMCG, and media) will be the topline outperformers with the former being partly aided by the recent weakness in rupee," said CRISIL Research's senior director Prasad Koparkar.
 
Low prices will majorly impact petrochemical, steel, sugar and man-made fibre sectors while cement manufacturers are likely to see another weak quarter, it said.
 
However, after three flat preceding quarters, construction companies are likely to see two to four percent growth.
 
Low rural consumption is reflected in the volume and topline growth of FMCG, tractor and two-wheeler companies which depend on the hinterland. 
 
On the brighter side, rise in data revenue and control on operating expenses will boost telecom companies margins by 120 basis points. Margins of petrochemical companies are expected to witness a rise of over 400 basis points following improvement in polyester feedstock spread, the statement added.
 
Road developers are also likely to witness margin rise by 350 to 400 basis points following a hike in build, operate and transfer (BOT) projects.

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Nifty, Sensex, Bank Nifty may move sideways– Tuesday closing report
A close below 8,480 will open the doors to decline in Nifty
 
We had mentioned in Monday’s closing report that Nifty may continue to move higher as long it closes above 8,460. The 50-stock benchmark opened Tuesday higher and moved in a range up to 2pm. After this, it made a quick plunge into the red. It tried recovering but after reaching up to Monday’s close, Nifty slipped again and closed marginally lower. The S&P BSE Sensex closed flat some 37 points or 0.13% down in the day's trade. The Sensex touched a high of 28,335.23 points and a low of 28,084.36 points in the intra-day trade. The 50-scrip Nifty also closed in the negative terrain on Tuesday -- 11.35 points or 0.13% down at 8,510.80 points.
 
In an emergency meeting of Eurozone leaders in Brussels, Greek Prime Minister Alexis Tsipras is expected to reveal fresh proposals to the country's creditors.
 
 
India VIX rose 1.81% to close at 16.3075. NSE recorded a higher volume of 94.46 crore shares. After a sustained uptrend, the Indian markets on Tuesday are consolidating.
 
The Indian Government is looking to raise about Rs15,000 crore during the current fiscal through gold bond scheme, for which a cabinet note is likely to be moved for consideration later in the month. Investors are awaiting the interest rate for the scheme, which was announced by Finance Minister Arun Jaitley in his budget speech.
 
In a report, ratings agency CRISIL said, it expects India Inc results for the June quarter to disappoint on soft commodity prices, weak growth in investment-linked sectors, and subdued rural demand restrict earnings. "Our analysis of 600 companies (excluding financials and oil & gas), which account for 70% of overall market capitalisation, shows only a mild 3% uptick in revenue growth. Sequentially, this will be 230 basis points (bps) more than the 0.7% seen in the quarter ended March 2015," it said in a research note.
 
Coming back to the Indian stock markets, during Tuesday's intra-day trade, healthy buying took place in consumer durables, healthcare and capital goods sectors.
 
However, automobile, information technology (IT), bank, oil and gas and technology, entertainment and media stocks came under intense selling pressure.
 
The S&P BSE consumer durables index augmented by 75.54 points, healthcare index rose by 47.84 points and capital goods index edged-higher by 15.54 points.
 
The S&P BSE automobile index plunged by 56.62 points, followed by IT index, which receded by 39.73 points, bank index was lower by 39.09 points, oil and gas index fell by 24.02 points and TECK index declined by 28.93 points.
 
The major Sensex gainers in Tuesday's trade were: Coal India, up 2.06% at Rs.428.60; HDFC, up 1.47% at Rs.1,337.35; State Bank of India (SBI), up 0.66% at Rs.272.70; Wipro, up 0.66% at Rs.553.45; and Sun Pharma, up 0.63% at Rs.884.45.
 
The major Sensex losers were: Vedanta, down 2.76% at Rs.158.55; NTPC, down 2.61% at Rs.134.35; Hero MotoCorp, down 1.91% at Rs.2,562.50; Hindalco Inds, down 1.65% at Rs.107.25; and Reliance Industries, down 1.17% at Rs.1,003.40.
 
The top gainers and losers among shares of indices were as follows:
 
Among the Asian markets, Japan's Nikkei gained by 1.31%, however, China's Shanghai Composite Index went down by 1.26%, and Hong Kong's Hang Seng receded by 1.03%. The table below gives the closing values of Asian indices at close:
 
 
In Europe, the London FTSE 100 index was down by 0.22%, the French CAC 40 was lower by 0.88% and Germany's DAX Index receded by 0.56% at the time pof writing. 

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Nifty, Sensex, Bank Nifty will continue to head higher: Monday closing report
Nifty headed higher as long it closes above 8,460
 
We had mentioned in Friday’s closing report that the gains in the major Indian indices in the face of tough external climate and muted investments by foreign institutional investors (FIIs) were an important indicator of an underlying bullishness. The stock market displayed this bullishness Monday in a spectacular fashion. After being down 98.75 points at the opening following the news of Greek referendum Sunday, the NSE’s CNX Nifty recovered the entire loss and closed higher, even as all global markets were awash in red. The market is set to record further gains.
 
After opening in the negative domain on Monday, Indian equities rallied through the trading session, appearing to ignore the "no" vote in Greece to the bailout proposal with conditions and focusing instead on a likely delay in the US interest rate cuts.
 
The S&P BSE Sensex gained more than 115 points or 0.40% in the day's trade.
 
The wider 50-scrip Nifty of the NSE made marginal gains on Monday, closing 37 points or 0.44 percent up at 8,522.15 points.
 
The 30-scrip S&P BSE Sensex, which opened at 27,857.20 points, closed at 28,208.76 points, up 115.97 points or 0.41% from its previous day's close at 28,092.79 points.
 
The Sensex touched a high of 28,235.31 points and a low of 27,774.80 points in the intra-day trade.
 
The mood was somewhat lifted by a dip in global crude oil prices, ample signs of recovery in the monsoon rains and some disappointing jobs data which suggested that a rate cut by the US Federal Reserve may be pushed further. 
 
According to analysts, the markets are waiting for the June quarter results. First major result to come out will be of Tata Consultancy Services (TCS) on 9th July.
 
During Monday's intra-day trade, healthy buying took place in healthcare, oil and gas, bank, capital goods and automobile sectors. However, consumer durables, metal and technology, entertainment and media (TECK) stocks came under intense selling pressure.
 
The S&P BSE healthcare index augmented by 275.96 points, oil and gas index rose by 109.76 points, bank index gained by 106.87 point, capital goods index was edged-higher by 89.67 points and automobile index increased by 52.55 points.
 
The S&P BSE consumer durables index plunged by 100.17 points, followed by metal index, which receded by 56.83 points and TECK index which by declined by 1.22 points.
 
The major Sensex gainers in Monday's trade were: Dr Reddy's Lab, up 3.64% at Rs3,711.75; Cipla, up 3.35 points at Rs652.55; Hero MotoCorp, up 1.34% at Rs2,612.40; Tata Consultancy Services (TCS), up 1.07% at Rs2,632.80; and Lupin, up 1.05% at Rs1,920.40.
 
The major Sensex losers were: Vedanta, down 4.45% at Rs163.05; Hindalco Inds, down 1.36% at Rs109.05; Tata Steel, down 0.73% at Rs298.75; Infosys, down 0.65% at Rs983.50; and NTPC, down 0.65% at Rs137.95.
 
Among the Asian markets, Japan's Nikkei fell by 2.08%, however, China's Shanghai Composite Index went up by 3.74%, and Hong Kong's Hang Seng receded by 3.18%.
 
In Europe, the London FTSE 100 index was down by 0.64%, the French CAC 40 was lower by 1.68% and Germany's DAX Index receded by 1.37% at the closing bell here.
 
The top gainers and losers among shares of indices were as follows:
 
 
The table below gives the closing values of Asian indices at close:
 
 
Among European indices, DAX was at 10,903.94, down 1.40% and FTSE 100 was at 6,554.97, down 1.14%. Athex Composite Share Price Index was at 797.52, up 2.03%. US Index futures were in the red.
 

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