The News International Team
02:55pm Engineers India under pressure
Shares of Engineers India fell 14 percent after reporting poor set of results in the quarter ended June 2014. Profit after tax dropped 37.8 percent year-on-year to Rs 80.4 crore and operating profit margin declined 1,370 basis points to 12.6 percent in the quarter gone by, which both were also lower than analysts’ expectations of Rs 110 crore and 21.5 percent, respectively.
The contraction was seen in segmental performance for both consulting and turnkey project segments. Earnings before interest and tax of both segments were down by 1,490 basis points and 110 basis points.
02:40pm Jammu and Kashmir Bank crashes 10%
Jammu and Kashmir Bank’s earnings were very poor with the first quarter net profit falling 58 percent to Rs 130 crore from Rs 307.9 crore in the year-ago period, impacted by higher provisions.
Net interest income declined to Rs 637.7 crore from Rs 655 crore during the sam period. Net non-performing assets (NPA) jumped to 2.18 percent from 0.22 percent and gross NPA rose to 4.16 percent from 1.66 percent on sequential basis.
02:20pm Market Expert
Despite the recent volatility in the market, Sachin Shah, fund manager at Emkay Investment Managers says the undertone of the market continues to be buoyant, with positive net flows and a fairly good earnings season.
FII inflows were subdued, but there weren’t any significant outflows. FII selling in the debt market was also not significant.
Another good thing that is working in favour of the market is the recovery in rainfall, which has been a positive trigger for the market. However, he cautions that the second half of the monsoon season is yet to play out. Also, some of the macro data points such as oil price sliding significantly – below USD 103/ bbl – are huge positives.
02:00pm The market remained marginally under pressure in afternoon trade weighed down by banks, capital goods, auto and metals & mining stocks. The Sensex slipped 42.59 points to 25838.18 and the Nifty fell 13.75 points to 7713.30.
The BSE Midcap and Smallcap indices extended losses, down 2 percent and 2.5 percent, respectively. About 745 shares have advanced, 2041 shares declined, and 87 shares are unchanged.
BHEL topped the selling list, down nearly 8 percent followed by L&T, State Bank of India, ICICI Bank, Axis Bank, Hindalco Industries, Coal India, Tata Power and Hero Motocorp with 1-3 percent.
Tata Steel and ONGC lost about a percent ahead of first quarter earnings scheduled to be announced after market hours today.
However, the buying in shares of ITC, HDFC, Sun Pharma, TCS and Hindustan Unilever capped the downside, up 1-2.5 percent. Wipro and Infosys gained over 0.6 percent.