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Sensex, Nifty consolidate; BSE Midcap, Smallcap slip 1%

12:00

The News International Team

12:59pm Interview

Gautam Malhotra, MD, Amtek Auto and director Ahmednagar Forging says the company has shifted its focus to non-auto businesses like mining, oil and gas, and pumps and valves.

“The key levers of our non-auto strategy are segments are going to be tractors, construction equipment and going forward it is going to be railways, oil and gas and the new entrants are going to be pumps, valves and mining segment,” he adds.

On the auto front, he says, currently the slowdown in the commercial vehicle side seems to have been arrested. The industry is seeing significant consolidation driven by supply chain as well as OEMs, which has helped growth in order book position, adds Malhotra.

There is signifcant traction on the tractor side. Contribution from railways business too has improved. He expects a contributing to increase from 10 to 18 percent from railways.

Malhotra expects a double-digit growth for the group in the next fiscal.

12:40pm Skipper locked at 5% upper circuit

Skipper Limited, which is amongst India’s largest manufacturers of EHV Transmission Towers, has commenced the engineering activities for supplies to two prestigious 500 KV Transmission projects in the high – growth Latin American regions of Peru and Chile.

Last year, Skipper entered into a 3-year Alliance agreement with one of South America’s leading transmission operators for exclusive supply rights to all their current and future power transmission projects. The value of the awarded contracts under the agreement so far is approximately 85 million USD, says the company in its filing.

12:20pm Sasken under pressure

Shares of Sasken Communication Technologies are locked at 20 percent lower circuit on Wednesday after the company’s chief executive resigned yesterday.

“Anjan Lahiri, whole time director and CEO has resigned from the services of the company and consequently from the board of directors effective September 23, 2014,” said the software services provider in its filing.

Rajiv C Mody, currently the chairman and managing director, will be stepping in as the CEO for now. He founded the company in 1989, at San Jose along with two other co-founders.

Mody does not see much change in business with CEO stepping down. In an interview to CNBC-TV18, he says his emphasis is on growing revenue. “We will continue to build expertise in IT business,” he adds.

Anjan Lahiri had completed his one year in the company in previous month. Anjan, who co-founded MindTree in 1999, joined Sasken in August 2013. Prior to co-founding MindTree, Anjan was a consulting director with Cambridge Technology Partners (CTP) in New Jersey.

12:00pm Market Check

Equity benchmarks remained rangebound in noon trade but the broader markets fell more than a percent. The Sensex declined 14.14 points to 26761.55 and the Nifty fell 6.45 points to 8011.10.

The market breadth was negative. About two shares declined for every share advancing on the Bombay Stock Exchange.
 
The ongoing correction is a healthy sign and the market needs to consolidate before resuming the bull run, says Nirmal Jain, Chairman, IIFL.

Jain feels the markets have been looking for reasons to correct and sees sharp corrections in midcaps and smallcaps. He says that one should be prepared for a 5-10 percent downside in the broader markets and 10-15 percent in midcaps.

BHEL and Tata Power tumbled over 2 percent each followed by TCS, HDFC, Larsen and Toubro, Tata Motors, Hero Motocorp and Bharti Airtel with 1-1.8 percent loss. However, Hindustan Unilever, Wipro and Coal India gained 2 percent. ITC and Infosys climbed over a percent.

In the midcap space, Sintex Industries, Sanofi India, Va Tech Wabag, Thermax and IFCI gained 3.5-4 percent while CARE, Prestige Estate, Bhushan Steel, Amtek Auto and Trinity Trade lost 4.5-6 percent.

Among smallcaps, Educomp Solutions, Sarda Energy, KGN Enterprises, Speciality Restaurants and NRB Bearings surged 5-6 percent whereas Sasken Communications, PFL Infotech, PC Jeweller, GOL Offshore and La Opala RG declined 8-20 percent.

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