The News International Team
02:45pm Crompton Greaves under pressure ahead of earnings
The Sensex slipped 156.91 points to 26192.42 and the Nifty fell 60.90 points to 7803.10 while Crompton Greaves tanked nearly 8 percent ahead of Q2 earnings.
Crompton Greaves is expected to report a 37.3 percent growth in consolidated profit after tax Rs 80.2 crore in July-September quarter compared to Rs 58.4 crore in same quarter last year, according to the average of estimates of analysts polled by CNBC-TV18.
Net sales may increase 9.5 percent to Rs 3,508 crore in the quarter ended September 2014 from Rs 3,205 crore in corresponding quarter last fiscal driven by overseas business especially due to growth from international power systems.
Key issues to watch out for are margin expansion in the power systems segment, given higher exports and increase in contribution from switchgears; improvement in the overseas automation and systems business performance, given execution of recent better margin order wins; and performance improvement in Hungary / Canada
02:30pm Results Boardroom
IT company Mindtree is gung-ho over its growth story and is confident of beating the NASSCOM industry growth target of 13-15 percent for FY15. According to CFO Rostow Ravanan, the Q3 will remain muted but the company will bounce back with strong growth in Q4 and so, the overall growth will be much better.
Speaking to CNBC-TV18 post announcement of Q2 earnings , CEO and MD Krishnakumar Natarajan said the company is overall very positive on its deal pipeline which is very strong across verticals. The company also aims to maintain current margins in Q3.
The midcap company is hopeful of starting with an aggressive growth in Europe in the next two quarters. The hi-tech segment has now delivered three quarters of consistent quarter-on-quarter growth for the company.
Mindtree added eight clients in Q2 and has signed deals worth USD 165 million during the same period.
02:00pm Market Check
After trading flat in the first half, the market succumbed to selling pressure post noon. The 30-share BSE Sensex fell 71.84 points to 26277.49 and the Nifty declined 28.40 points to 7835.60.
The market breadth is very weak today. About 1012 shares have advanced while 1767 shares declined on the Bombay Stock Exchange.
In an interview to CNBC-TV18, Vibhav Kapoor of IL&FS says he does not see a major downside to this market. According to him, 7300-7400 could be the worst level on the Nifty if global markets weaken.
Global markets are weak across the board today. European markets like France’s CAC dropped more than 0.5 percent on top of a 3 percent slide in previous session. Germany’s DAX and Britain’s FTSE traded flat while Japan’s Nikkei closed with more than 2 percent cut.
The Indian rupee is trading weak today on increased dollar demand amidst capital outflows, down to 61.59 a dollar from 61.44 a dollar in previous session.
Shares of Reliance Industries, Mahindra and Mahindra, HDFC, Sesa Sterlite, Hindalco Industries, Tata Steel, Bajaj Auto, BHEL and Tata Power declined 1-4 percent while ITC, HUL, Cipla, Gail India and Coal India gained 1-2 percent.