The News International Team
12:40pm Eicher Motors at new record high
Investors continued to buy shares of Eicher Motors, the Royal Enfield maker, after Credit Suisse raised a target price on the stock to Rs 10,180 (from Rs 9,000 earlier), the highest among brokerages, due to strong earnings in April-June quarter. The stock gained as much as 7.7 percent to touch a fresh record high of Rs 9,995 on the Bombay Stock Exchange.
The brokerage said it maintains bullish thesis on the stock on the robust growth potential for the Royal Enfield motorcycle, along with healthy margin expansion at both the businesses (motorcycle and commercial vehicle).
12:20pm Gainers and Losers
FMCG majors ITC and Hindustan Unilever rallied 2.6 percent and 2.2 percent, respectively. Software services exporters TCS, Infosys and Wipro gained 1-2 percent. HDFC and HDFC Bank extended upmove further, rising 0.7-0.8 percent.
Sun Pharma rallied 1.6 percent after reporting profit of Rs 1,390 crore in Q1FY15 as against loss of Rs 1,276 crore (due to provision of Rs 2,517 crore on settlement on Protonix Generic with Nycomed and Pfizer Wyeth) in the year-ago period.
However, BHEL fell further, losing more than 7 percent after reporting disappointing numbers with margins coming in at 4.2 percent versus 6 percent Y-o-Y. Macquarie cut FY15/16 earnings per share by 4 percent/2 percent and also slashed target price to Rs 144/share from Rs 149/share.
Shares of Larsen and Toubro, State Bank of India, Axis Bank, Tata Steel (ahead of Q1 earnings today), Hindalco, Coal India (post earnings) and Tata Power declined 1.5-2 percent.
12:00pm Equity benchmarks remained rangebound in noon trade but the broader markets fell more than a percent. The Sensex rose 31.82 points to 25912.59 and the Nifty gained 8.45 points at 7735.50.
Declining shares outnumbered advancing ones by a ratio of 1659 to 885 on the Bombay Stock Exchange.
Among midcaps, Engineers India dropped 12.16 percent (post Q1 earnings) followed by Syndicate Bank, Indian Overseas Bank, Den Networks and Unitech with 7-8 percent. However, Birla Corporation, Eicher Motors, Natco Pharma, JK Cement and Blue Dart gained 4-9 percent.
In the smallcap space, Prakash Industries, HCC, Ashiana Housing, Empire Industries and Bajaj Hindusthan tanked 7-10 percent whereas Minda Industries surged 20 percent followed by IFB Industries, Indian Metals, NOCIL and Hitachi Home with 6-9 percent.