The News International Team
9:50 am Earnings poll: Private sector lender HDFC Bank is expected to report a 21 percent growth in profit after tax of Rs 2,398 crore in second quarter of current financial year 2014-15 compared to Rs 1,982 crore in same quarter last year, according to the average of estimates of analysts polled by CNBC-TV18.
Net interest income, the difference between interest earned and interest expended, may grow by 18 percent to Rs 5,275 crore in the quarter ended September 2014 from Rs 4,476.5 crore in corresponding quarter of last fiscal. Loan growth is estimated at more than 18-20 percent year-on-year, which is similar to Q1 growth of 20.7 percent led by corporates while retail growth was modest at 14 percent.
9:35 am Coal e-auction: In a move to decide the fate of coal blocks that were de-allocated by the Supreme Court recently, the government on Monday proposed an ordinance to allow e-auction of mines to private players while adding that state-run companies would be allocated mines directly. The process would be completed in three-four months, finance minister Arun Jaitley said today, adding that proceeds of the auction would go directly to states where respective mines are located. However, in what would come as a disappointment to investors as well as key sectors related to coal mining, such as power, the government stopped short of allowing full commercial mining, with the FM stating that the ordinance would only feature an “enabling provision” to allow the same in future.
The decision by the government, which has been a logical progression in the wake of the Supreme Court to cancel coal licences to captive users, however, came as disappointing to experts tracking the sector as well as companies related to it.
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After a strong rally, the market has opened tepidly on Dhanteras, a day considered auspicious for buying gold. The Sensex is up 59.32 points at 26489.17 and the Nifty is up 16.15 points at 7895.55.
About 485 shares have advanced, 142 shares declined, and 20 shares are unchanged.
Sesa Sterlite, NTPC, Hindalco, Cipla and Tata Steel are top gainers in the Sensex. Among the losers are ONGC, Coal India, HUL, M&M and Sun Pharma.
Meanwhile, both the exchanges have decided to extend the trading session for Gold Exchange Traded Funds on Tuesday till 7 PM on account of Dhanteras – a day considered auspicious for buying gold.
Besides, both the bourses have decided to waive off the transactions charges for all trades in gold ETF securities on that day.After the regular market hours from 9:00 AM to 3:40 PM, trading in gold ETFs will resume at 4:30 PM and continue till 7 PM, the exchanges said.
Gold prices rise to USD 1,245 an ounce as renewed weakness in European stocks boosted interest in the metal as an alternative asset, though a tentative recovery in risk appetite in other markets limited its gains.
The Indian rupee opened marginally higher at 61.30 per dollar against previous close of 61.36.
Major currencies traded in tight ranges with investors facing a vacuum of data and modest price changes in global markets.
Ashutosh Raina of HDFC Bank said, “The markets seem to be taking a breather after the volatile and turbulent last week. The Rupee continues to trade in a broad 60-62/dollar range. Expect the rupee to appreciate from current levels and trade in 60.50-61.50/dollar range.”
In US the stocks climbed, with the S&P 500 marking its longest winning run in a month, as Apple’s quarterly results outdid disappointment that came with a reduced outlook from IBM.
Asia stocks seem to have paused after yesterday’s big rally. Nikkei is lower after the index witnessed its biggest daily rise in more than a year. The stronger yen is also dragging the index down further The mood is cautious ahead of key Chinese economic data. Chinese third-quarter GDP, industrial output, fixed asset investment and retail sales for September.
Among commodities, Brent crude prices slip below USD 86 per barrel resuming a downward move that took the global oil benchmark to near a four-year low last week as supply overwhelmed weak demand in several key markets.