The News International Team
03:30pm Market Closing
The market rebounded on Monday after a big fall in Friday’s session. The Sensex climbed 86.69 points to 26384.07 and the Nifty rose 24.30 points to 7884.25.
About 1459 shares have advanced, 1466 shares declined, and 111 shares are unchanged.
Tata Power, Tata Steel, Coal India, Axis Bank, TCS, NMDC and PNB topped the buying list, up 1.5-3 percent while M&M, Cipla, Sun Pharma, Dr Reddy’s Labs, BHEL and DLF were top losers, down 1-4 percent.
Among midcaps, Sintex Industries, Page Industries, Federal Bank, MTNL, Voltas, Motherson Sumi, OBC, Den Networks, SAIL, Jain Irrigation, LIC Housing and Union Bank rallied 3-20 percent.
However, Unitech, Marksans Pharma, Rico Auto, HDIL, Snowman Logistics, Tata Global, Amtek Auto and Godrej Consumer fell 1.5-4 percent.
03:20pm Brent crude near 4-year low
Brent crude oil fell below USD 88 a barrel, its lowest in almost four years, after key Middle East producers signalled they would keep output high to defend market share even if that meant lower prices.
Saudi Arabia has privately told oil market participants it can accept oil prices between USD 80 and USD 90 a barrel, sources briefed by OPEC’s biggest producer have told Reuters.
Kuwait’s oil minister said on Sunday OPEC was unlikely to cut production to support prices.
The Organization of the Petroleum Exporting countries is due to discuss output at next month’s meeting, and some analysts had expected the group to reduce oil supply before then.
Brent crude touched its lowest since December 2010 at USD 87.74 in early trade on Monday, but recovered slightly to around USD 88.10 a barrel by 0830 GMT, down USD 2.11 on the day. US crude was down USD 1.60 at USD 84.22, reports Reuters.
03:10pm Market Check
The market remained positive with the Sensex rising 93.73 points to 26391.11 and the Nifty gaining 25.05 points at 7885.
About 1387 shares have advanced, 1472 shares declined, and 107 shares are unchanged.
02:55pm Crude oil demand
Crude has been facing pressures with global supplies rising. The prices have fallen around 15 percent this year. Discussing the current trend and outlook, Miswin Mahesh, Energy Analyst at Barclays, said the Indian oil demand is poised to grow faster than Chinese demand this year, which is going to become a significant market changer for balances.
According to him, the Indian oil demand has been sustaining strong growth rates on the back of gasoline demand. Even the diesel price deregulation will “sort of help refineries as well, given that they can get more of their under-recoveries before the quarter ends”.
02:35pm Sintex on buyers’ radar
Plastic products manufacturer Sintex Industries beat street estimates on every parameter with the second quarter consolidated net profit rising 46.8 percent on yearly basis to Rs 107 crore on strong sales and operational performance. Profit in the year-ago period was Rs 72.9 crore.
According to CNBC-TV18 poll estimates, analysts had expected profit of the company at Rs 89.9 crore on total income of Rs 1,551 crore for the quarter.
Consolidated total income from operations grew by 23 percent to Rs 1,681 crore in the quarter ended September 2014 compared to Rs 1,365 crore in same quarter last year.
Operating profit jumped 35.8 percent year-on-year to Rs 288 crore and margin expanded by 160 basis points to 17.1 percent during the quarter as against expectations of Rs 251 crore and 16.2 percent, respectively.
02:25pm IndusInd Bank hits 52-week high
Private sector lender IndusInd Bank’s net profit grew by 30.3 percent to Rs 430.2 crore (beating street expectations) in the quarter ended September 2014 led by strong other income and lower provisions. Profit in the year-ago period was Rs 330.23 crore.
According to CNBC-TV18 poll estimates, analysts had expected profit at Rs 412 crore and net interest income at Rs 826.6 crore for the quarter.
Net interest income, the difference between interest earned and interest expended, rose by 19 percent to Rs 833 crore in July-September quarter compared to Rs 700 crore in the same quarter last year while other income (non-interest income) shot up 34 percent to Rs 558.3 crore from Rs 416.7 crore during the same period. However, operating expenses increased to Rs 666.7 crore from Rs 528.75 crore Y-o-Y.
Provisions of the bank slipped to Rs 73.2 crore in the quarter ended September 2014 from Rs 110.4 crore in previous quarter and Rs 89 crore in the year-ago period.
02:00pm The market bounced back in afternoon trade with the Sensex rising 73.02 points to 26370.40 and the Nifty climbing 19.30 points to 7879.25 led by banks, metals and technology stocks.
BSE Bank, IT and Metal indices gained 1-1.5 percent. Infosys and Tata Power topped the buying list, up 2 percent each followed by TCS, HDFC, Axis Bank, SBI, Tata Steel, Hero Motocorp and Coal India with 1-1.8 percent.
ICICI Bank, HDFC Bank, Tata Motors, Sesa Sterlite, Hindalco Industries, Maruti Suzuki and Bajaj Auto gained 0.2-0.8 percent. However, Mahindra and Mahindra, Cipla, Dr Reddy’s Labs, ITC, NTPC, L&T and Sun Pharma remained under pressure with 1-4 percent loss.
Reliance and IndusInd Bank are in focus ahead of their Q2 earnings today. Reliance Industries will be releasing consolidated numbers for the second time; however profit for the standalone performance is estimated to be flat quarter-on-quarter at Rs 5,600 crores. A CNBC-TV18 poll estimates an 18 percent growth in NII and 25 percent growth in profit with a stable asset quality profile for IndusInd.
CPI data for September will be released today evening. A CNBC-TV18 poll expects it to come marginally lower at 7.2 percent versus 7.8 percent month-on-month. A combination of lower vegetable prices and base effect could pull CPI lower to 7 percent.
On the global front, Asian markets closed lower with the Nikkei falling over a percent despite strong exports data from China in September. Brent crude remained subdued, trading below USD 89 per barrel.