Home / Business / Money / Diwali bonanza: Sensex rallies 400 pts; Axis Bank gains 2%

Diwali bonanza: Sensex rallies 400 pts; Axis Bank gains 2%


The News International Team

11:50 am Poll: Telecom operator Idea Cellular is expected to report a 9.4 percent decline (Q-o-Q) in second quarter profit at Rs 660 crore today as July-September quarter is a seasonally weak quarter for the sector, according to the average of estimates of analysts polled by CNBC-TV18. Profit in the previous quarter was Rs 728.2 crore. Revenue may fall 1.9 percent to Rs 7,417 crore in the quarter ended September 2014 compared to Rs 7,561 crore in previous quarter. Operating profit is likely to decline 3.9 percent sequentially to Rs 2,413 crore and margin may slip 67 basis points to 32.53 percent in the quarter gone by (but may rise 130 basis points on year-on-year basis).

11:35 am Market outlook: Madhu Kela of Reliance Capital is bullish on Indian equities from a three-year horizon and expects the asset class to outperform others like real estate, fixed income and gold in that time frame.

He says many investors are feeling left out in this current rally and are waiting for dips to participate. Continuing his positive tone, he says that earnings growth over the next three years will take many market participants by surprise. He foresees earnings growth crossing 20 percent from FY16 onwards. Speaking about the macros, Kela says that India is coming out of a dismal phase of capex and investment cycle. Also, there are early indications of improvements on stalled projects, but the real turnaround in India’s fundamentals will happen significantly over the next six months. He expects the Modi government to surpass most expectations in next five years and sees accelerated policy actions over the next six months.

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The market has started the Diwali week with celebrations buoyed by the election verdict in Haryana and Maharashtra where BJP is set to form the government. Along with the positive reaction of the oil & gas space to the much awaited gas price hike and diesel price de-regulation, global cues are supporting the market.

The Sensex is up 370.99 points or 1.4 percent at 26479.52 and the Nifty is up 113.65 points or 1.5 percent at 7893.35. About 1595 shares have advanced, 605 shares declined, and 87 shares are unchanged.

ONGC, L&T, HDFC and Axis Bank are top gainers in the Sensex. Among the losers are Infosys, Wipro, Reliance, BHEL and TCS.

In earnings reaction Axis Bank reacts positively to Q2 earnings. Bank of America Merill Lynch hikes target to Rs 500 versus Rs 450 earlier.

It is good going for the global markets, Nikkei rebounded from a four month low. Markets reacted to US consumer sentiment rose that to a 7-year high, and the rupiah in Indonesia jumped to 3-week highs on the swearing in of their new president. The rupee strengthened on selling of the US dollar by exporters.


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