The News International Team
Tyre companies have been buzzing of late as Brent crude fell to 4-year low on supply glut, in turn causing synthetic rubber, one of tyre companies’ key raw materials saw price fall too.
Subba Rao Amarthaluru, CFO, CEAT anticipates a 10 percent growth in second half of FY15 as plummeting crude prices will reflect in prices of its derivatives such as synthetic rubber, carbon black and nylon tyre chord.
As another shot in the arm, tyre major is also facing headwinds in export markets.
01:40pm NIIT tanks post earnings
Computer training and software services company NIIT’s second quarter (July-September) consolidated net profit fell 14.2 percent to Rs 10.3 crore compared to Rs 12 crore in same quarter last year on lower operational performance. The stock fell nearly 5 percent.
Consolidated net sales declined marginally to Rs 260.4 crore from Rs 262.4 crore during the same period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 25.5 percent to Rs 18.1 crore in the quarter ended September 2014 from Rs 24.3 crore in the year-ago period.
01:20pm FII View
Manpreet Gill, Senior Investment Strategist, Standard Chartered continues to remain overweight on the Indian market. According to him, the drivers for market remain primarily domestic.
India remains one of his preferred markets with the Asia pacific region, he adds.
Gill expects the US Federal Reserve to raise rates by mid-2015. He believes the US companies have reported strong up-trending earnings path.
01:00pm Equity benchmarks gained strength in afternoon trade supported by banking and financials, capital goods and index heavyweights like ITC and Reliance Industries.
The Sensex rose 111.89 points to 26111.23 and the Nifty climbed 36.85 points to 7785.05. About 1123 shares have advanced, 1422 shares declined, and 94 shares are unchanged.
Bank Nifty jumped 300 points as ICICI Bank, HDFC Bank, State Bank of India and Axis Bank gained 2-2.6 percent. Housing finance company HDFC too rallied 2 percent. Capital goods majors Larsen and Toubro, and BHEL climbed 2-3 percent.
Utility vehicle maker Mahindra and Mahindra topped the buying list, up 3.5 percent followed by Bharti Airtel, ITC, Tata Steel, Cipla, NTPC and Hero Motocorp with 1-2 percent.
However, HCL Technologies and TCS remained under selling pressure, falling 8-9 percent after reporting lower than expected revenues in September quarter.
In the midcap space, Crompton Greaves jumped over 2 percent after sources told CNBC-TV18 that Avantha Group may sell partial equity stake in demerged Consumer Products business. Bain among PE players is in talks to acquire that stake, say sources.
On the global front, European markets bounced back in opening trade after yesterday’s sharp cut.