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Nifty breaches 8050, Sensex firm; HUL up, Wipro falls 2%


The News International Team

9:55 am Results: FMCG major Hindustan Unilever (HUL) is expected to report a 8.3 percent growth in second quarter (July-September) profit after tax at Rs 990 crore compared to Rs 914 crore in same quarter last year, according to the average of estimates of analysts polled by CNBC-TV18.

Adjusted profit after tax of the company is likely to jump 12.1 percent to Rs 990 crore from Rs 883 crore during the same period. In Q2FY14, results included an exceptional credit of Rs 33 crore.

Total income from operations may increase 11 percent to Rs 7,650 crore in the quarter ended September 2014 compared to Rs 6,893 crore in the year-ago period led by price and product mix.

9:45 am Brent price: Brent crude futures extended declines to below USD 86 a barrel on Monday after Goldman Sachs cut its price forecasts for the contract and for U.S. oil by USD 15 in the first quarter of next year. The U.S. investment bank said in a research note on Sunday that it had cut its forecast for West Texas Intermediate to USD 75 a barrel from USD 90, and its prediction for Brent to USD 85 from USD 100, with rising production in non-OPEC countries outside North America expected to outstrip demand.

The bank’s analysts expect WTI to fall as low as USD 70 a barrel and Brent to USD 80 in the second quarter of 2015, when it expects oversupply to be most pronounced.

9:30 am Fund raising: The country’s largest auto maker Tata Motors has raised USD 750 million from Asian and European investors by selling a dual tranche bond issue which got an over subscription of six times at USD 4.5 billion.

The company has priced the 5.5-year benchmark senior unsecured notes of USD 500 million at 4.625 percent, while the coupon for the 10-year USD 250 million notes is fixed at 5.750 percent per annum. It had sold USD 300 million worth bonds in April at a coupon of 5.53 percent for a five-year money, indicating better operating environment for the company.

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The market continues its uptrend in first session after the auspicious Mahurat trading. The Sensex is up 106.15 points at 26957.20 and the Nifty is up 49.80 points at 8064.35.
About 498 shares have advanced, 116 shares declined, and 27 shares are unchanged.

Dr Reddy’s Labs, TCS, BHEL and HUL are top gainers in the Sensex. Among the losers are Wipro, GAIL, Cipla and Sun Pharma.

The Indian rupee opened higher by 11 paise at 61.17 per dollar versus 61.28 Wednesday. The euro held firm in early trade after the European Central Bank’s stress tests found smaller capital shortfalls among European Banks than expected. Traders will be looking to Germany’s IFO business sentiment index due later today.

Pramit Brahmbhatt of Veracity said, “After a long weekend, equity markets are likely to trade sideways and will take cues from global markets for further directions. Rupee is expected to trade firm, although strength in dollar could cap upside moves in rupee altogether. Range for the USD-INR seen between Rs 60.80-61.80/dollar.”

US stocks climbed on Friday, with Wall Street derailing a four-week slide with its best week this year, as quarterly results from companies including Microsoft and Procter & Gamble inspired investor enthusiasm.

In addition, the Federal Reserve will begin its 2-day policy meeting on Tuesday. The fed is expected to end its 3rd round of bond buying with investors eyeing clues on rate hike timings.

In Europe, concerns about the results of Europe’s bank stress tests and the first Ebola case in New York, weighed on investor sentiment ending the FTSE Friday’s session down around half a percent. Moreover, other core indices, CAC and DAX were down around seven tenths of a percent.

Brent crude slipped below USD 86 a barrel amid abundant supply and weak demand.
And in metals space, gold edged lower as rallying equity markets and strong us economic data dented demand for the precious metal as an insurance against risk.

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