A close below 5,820 on the Nifty may bring about a downtrend
The market snapped its four-day winning streak and settled lower on profit booking in rate-sensitive sectors. A close below 5,820 on the Nifty may bring about a downtrend. The National Stock Exchange (NSE) reported a lower volume of 54.83 crore shares and advance-decline ratio of 499:817.
The Indian market opened lower after four straight days of gains on profit booking in banking and auto sectors. Markets in Asia were trading with minor gains in morning trade as cautiousness prevailed ahead of an announcement from the Bank of Japan’s policy meeting. US stocks rose in overnight trade on better-than-expected corporate earnings and reports of a drop in weekly jobless claims.
The Nifty opened 16 points lower at 5,900 and the Sensex started off at 19,376, down 31 points from its previous close. The benchmarks hit their intraday highs in initial trade itself and edged lower as trade progressed. The Nifty rose to 5,907 and the Sensex stood at 19,385 at their respective highs.
The market was range-bound in the negative terrain as traders resorted to profit taking after recent gains. A weak opening of the European markets led the benchmarks lower in noon trade.
Meanwhile, Maruti Suzuki, the country’s largest passenger car maker’s Q4 results beat market expectations which saw the BSE Auto index emerging as the top sectoral gainer in noon trade. Maruti Q4 net profit soared 79.4% at Rs1,147.5 crore, net sales were up 9.4% at Rs12,566.6 crore.
Better-than expected results from Maruti Suzuki and in-line numbers from ICICI Bank saw the market bouncing back in post-noon trade. However, selling pressure once again pulled the indices lower to touch their intraday lows. At the lows, the Nifty stood at 5,861 and the Sensex fell to 19,250.
The market snapped its four-day winning streak and settled marginally off the lows of the day. The Nifty fell 45 points (0.76%) to 5,871 and the Sensex declined 120 points (0.62%) to finish the session at 19,287.
Among the broader indices, the BSE Mid-cap index declined 0.64% and the BSE Small-cap index fell 0.54%.
BSE Auto (up 0.84%) and BSE Capital Goods (up 0.29%) were the only gainers in the sectoral space. The main losers were BSE Realty (down 2.20%); BSE Oil & Gas (down 1.61%); BSE IT (down 1.51%); BSE Bankex (down .39%) and BSE Metal (down 1.38%).
Eleven of the 30 stocks on the Sensex closed in the positive. The chief gainers were Maruti Suzuki (up 5.26%); Bharti Airtel (up 4.55%); Bajaj Auto (up 3.09%); GAIL India (up 1.78%) and Larsen & Toubro (up 1.52%). The top losers were Jindal Steel & Power (down 4.29%); Reliance Industries (down 3.19%); ICICI Bank (down 2.82%); Hindustan Unilever (down 2.70%); Tata Steel (down 2.46%) and TCS (down 2.42%).
The top two A Group gainers on the BSE were—LIC Housing Finance (up 6.31%) and Sobha Developers (up 5.55%).
The top two A Group losers on the BSE were—Unitech (down 6.41%) and HDIL (down 5.86%).
The top two B Group gainers on the BSE were—Padmalaya Telefilms (up 20%) and Karur KCP Packagings (up 19.96%).
The top two B Group losers on the BSE were—Genera Agri Corp (down 20%) and Dhanada Corporation (down 19.81%).
Of the 50 stocks on the Nifty, 15 ended in the green. The key gainers were Maruti Suzuki (up 5.22%); Bharti Airtel (up 4.99%); Bajaj Auto (up 3.37%); GAIL India (up 1.77%) and HDFC (up 1.40%). The main losers were HCL Technologies (down 5.21%); JSPL (down 4.77%); RIL (down 3.17%); HUL and ICICI Bank (down 2.99% each).
Markets in Asia fluctuated between gains and losses on mixed results from corporates and the Bank of Japan abstaining from making any new commitment in its policy meeting today.
The Hang Seng gained 0.65%; KLSE Composite rose 0.29%; Straits Times advanced 0.33% and Taiwan Weighed was flat with a positive bias. Among the losers, the Shanghai Composite dropped 0.97%; the Jakarta Composite fell 0.32%; the Nikkei lost 0.30% and the Seoul Composite settled 0.36% lower.
At the time of writing, the key European markets were down between 0.50% and 0.97% as corporate results disappointed investors. At the same time, US stock futures were trading in the negative.
Back home, foreign institutional investors were net buyers of shares aggregating Rs1,449.70 crore on Thursday while domestic institutional investors were net sellers of stocks amounting to Rs1,269.43 crore.
Lupin Pharmaceuticals Inc, the subsidiary of the Mumbai-based Lupin has received final approval for its Pirmella Tablets (Norethindrone and Ethinyl Estradiol Tablets) from the United States Food and Drugs Administration (US FDA) to market a generic version of Janssen Pharmaceuticals, Inc.’s Ortho-Novum Tablets. These tablets are indicated for the prevention of pregnancy. The stock fell 0.69% to close at Rs686.60 on the NSE.
IL&FS Engineering and Construction Company has secured a Rs 27.84-crore project from Haryana Vidyut Prasaran Nigam. The contract is for design, supply and setting up of two new 132 KV substations and five 132 KV extension bays on a turnkey basis in Sonipat district of Haryana. The stock ended unchanged at Rs43.40 on the NSE.
Keeping the price for Samsung Galaxy S4 below Rs42,000, the Korean handset maker is trying to garner major share in high-end smartphone market
Samsung, the market leader in smartphone, has priced S4, its fourth generation mobile handset in the Galaxy series at Rs41,500 as per the expectations of Indian users. The competitive pricing may help Samsung S4 to beat other high-end mobiles, like HTC One (priced at Rs42,990), based on Google's Android operating system.
Samsung Galaxy S4 comes with new features like gesture control, a five-inch full HD Super AMOLED touchscreen, 13-mega pixel back and 2MP front camera. The company is offering S4 with two different processors, 1.6 GHQ quad core and 1.2 GHz quad core in India. This means Samsung is still not ready for its much-rumoured and long awaited Exynos Octa-5 eight-core chip. The S4 launched in the US runs on 1.9GHz quad core Snapdragon 600 processor.
The mobile handset would be available at Samsung brand stores in Delhi, Bangalore, Hyderabad and Mumbai from 12 noon onwards on Saturday. It would reach across the country by next week.
A new feature included in Samsung Galaxy S4 is ‘Smart Pause’ where users can pause a video just by looking away from the screen. It also has ‘Air View’ feature, which allows users to hover with their fingers to preview the content of an email, S Planner, image gallery or video without having to open it by just gesturing in air.
The S4 has new imaging features like “Dual Camera” and “Dual Video Call”, allows users to click pictures and make video calls using both the front and rear cameras simultaneously.
Here are the specifications of Samsung Galaxy S4...
Nomura Equity Research expects 4QFY13 results of JSW Energy to surprise whereas Adani Power and Lanco Infratech are expected to disappoint
Nomura Equities Research, in its Quick Note on power utilities and coal expects 4QFY13 normalized earnings of stocks under its coverage to exhibit a mixed bag. Relative to consensus, as was the scenario for 3QFY13, it expects 4QFY13 results of JSW Energy to surprise whereas Adani Power and Lanco Infratech are expected to disappoint.
It does not expect any major surprise in the earnings of NTPC, Power Grid Corporation and Reliance Power; as Nomura’s normalized PAT forecasts for these utilities are 2%-3% below consensus. As regards Coal India, Nomura’s net profit forecast is in line with consensus, although our EBITDA forecast is 4% below consensus; year-end incentives, incremental impact of the diesel price hike and e-auction contribution are key swing factors.
Adani Power (Reduce) – Expect net loss to reduce q-o-q: Nomura has pegged Adani Power’s revenue at Rs18.5 billion (RS2.7/kWh blended realization, Rs4.25/kWh merchant realization, ~6.2bn kWh sales), EBITDA (normalized for fuel creditors-linked MTM exchange fluctuation gains) at Rs4.1 billion and normalized net loss at Rs4.9 billion (assuming 15% effective tax provision). Including potential MTM exchange fluctuation gain on derivative instruments, it expects reported loss at Rs4.6 billion. Once again, fuel mix at Mundra would be the key to profitability; the brokerage’s net loss forecast is 15% above consensus.
JSW Energy (Neutral) – Expect earnings to beat consensus: Nomura has pegged 4QFY13 revenue of JSW Energy at around Rs22.8 billion assuming blended realization at around Rs4/kWh and sales volume of around Rs4.85 billion kWh. The brokerage has build in a 5% q-o-q drop in cost of coal (per kWh) resulting in EBITDA at Rs8.3 billion (36.4% margin) and normalized net profit at Rs3.3 billion. Including potential MTM exchange fluctuation gain, Nomura expects reported PAT at Rs3.56 billion (up around 15% q-o-q).
NTPC (Buy) – Expect a robust performance: Nomura’s normalized earnings forecast for NTPC is marginally below consensus on the back of improved Plant Availability (PAF) and utilization (PLF) for coal-fired stations. It expects normalized earnings at Rs25.6 billion (up 11% y-o-y, 4% q-o-q). Including the recovery of prior period dues and interest thereon, Nomura expects reported PAT at Rs46.5 billion.
Lanco Infratech (Buy) – Expect cash losses to widen: Nomura expects: (1) Consolidated revenues to be marginally lower q-o-q as power revenues decline on lower PLF, solar EPC revenues pick up, non-solar EPC revenues remain stagnant and revision of the selling price to Bluewaters enhances Griffin Coal’s top line; and (2) EBITDA to drop 10% q-o-q, primarily due to lower contribution from the power business. Together with a marginal uptick in interest outgo and lower tax outgo, its expects Lanco Infratech’s normalized net loss at Rs4.7 billion (up 7% q-o-q); including potential MTM f/x gains. Nomura has pegged reported net loss at Rs4.5 billion. The 4QFY13 EBITDA forecast is 9% below consensus while normalized net loss forecast is 22% above consensus, said Nomura.
Reliance Power (Reduce) – Expect ~35% RoE for Rosa: Factoring in around 35% RoE for Rosa (1200MW), Nomura expects consolidated EBITDA of Reliance Power at around Rs 3.7 billion (up 108.6% y-o-y, down 22.4% q-o-q). Together with a forecast 11% q-o-q drop in non-operating income (lower cash in hand) and a 20% potential tax incidence, the brokerage expects normalized net profit at Rs2.3 billion (up 32% y-o-y, down 32% q-o-q) and reported PAT at Rs2.4 billion. Normalized PAT would appear sharply lower q-o-q as 3QFY13 RoE at Rosa was likely exaggerated by recouping of fixed cost under- recovery in 2QFY13 on the back of outages-led low plant availability.
Power Grid Corporation (Buy) – All eyes on FY2013 commissioning: Nomura expects a 4.7%/3.4% q-o-q growth in revenues for PGCIL and EBITDA, driven by around Rs26 billion effective incremental capitalisation of transmission assets for the quarter. Building in a 20% drop in non-operating income (on the back of a lower cash chest), the brokerage expects normalized net profit to be up around 3% q-o-q (up 19% y-o-y) at Rs10.8 billion. Nomura’s 4QFY13F earnings forecast is 3% below consensus.
Coal India (Buy) – Expect PAT at Rs49.6 billion (up 25% y-o-y): On the back of a 130 million tonne (mt) offtake, Nomura has build-in: (1) 10% sales via e-auction; (2) blended realization at Rs1,472/tonne (up 2.3% q-o-q), including year-end incentives of Rs750 million; and (3) EBITDA at Rs53.5 billion (implying 28% EBITDA margin) post OB removal adjustment of around Rs18 billion. This translates to a normalized PAT of Rs49.6 billion (up 25% y-o-y). Nomura’s net profit forecast for is in line with consensus.