The News International Team
10:55am Market Check
Equity benchmarks erased early gains with the Sensex falling 79.48 points to 26977.93 and the Nifty losing 13.90 points to 8080.20 but the broader markets remained strong.
The BSE Midcap and Smallcap gained 1 percent each. About 1744 shares have advanced, 730 shares declined, and 85 shares are unchanged.
Abhijit Roy, MD, Berger Paints believes the reduction in crude prices will aid gross margins, however adds that most of the company’s raw materials will have no impact from the crude fall.
Roy rules out any price hikes in the short-term given softness in input prices. Although there is no material pick-up in volumes so far, the paint company is confident of achieving margins in the range of 11-12 percent on the back of their market share having improved to current 19-20 percent, he says in an interview with CNBC-TV18.
While the automotive segment is seeing signs of uptick, a revival in the infrastructure space will abet growth in industrial paint segment, he adds.
10:30am IDFC in News
Investors bought more shares of IDFC today after the state-run infrastructure financing company decided to open QIB issue on September 10. The stock gained 4 percent, in addition to 2 percent upside in previous session.
“Subsequent to the approval accorded by the shareholders of the company on July 29 to issue and allot equity shares for an amount aggregating up to Rs 2,000 crore to qualified institutional buyers (QIBs), the capital raise committee of the board of directors has decided to open the issue on September 10 for subscription by QIBs under the said placement,” said the company in its filing.
The company has fixed a floor price for share sale at Rs 143.70 apiece.
10:15am FII View
Mahesh Nandurkar, CLSA says the government has started laying out building blocks for a sustainable higher growth trajectory for India.
“We highlight 4 key initiatives i.e financial inclusion, digital India, improved foreign policy and greater autonomy to states. While these initiatives do not have a quantifiable economic impact; they will have a huge broad based positive impact for an inclusive longer-term growth improvement,” he adds.
10:00am The market continued to trade in a positive terrain with the Sensex rising 44.85 points to 27102.26 and the Nifty gaining 19 points to 8113.10 while the broader markets outperformed benchmarks smartly.
The BSE Midcap and Smallcap indices climbed 1 percent each. About three shares advanced for every share declining on the Bombay Stock Exchange.
Sun Pharmaceutical Industries fell over 4 percent on US drug regulator’s surprise audit at the pharma major’s Halol facility in Gujarat. It is learnt that USFDA inspectors in two teams are auditing both the injectibles as well as oral solids units at the plant, with one team focusing on manufacturing processes and other closely auditing quality control and assurance departments.
In the midcap space, GSFC shot up 13.4 percent followed by Abbott India, Bhushan Steel, Indian Bank and Bharat Electronics with 4-5 percent while among smallcaps, HOEC, Oscar Investment, Infinite Computer, Punjab & Sind and Marathon Realty surged 9-17 percent.