The News International Team
Live Market Commentary
9:55 am Opinion: Raising concern about over-dependence of Indian capital markets on foreign institutional investors, eminent banker Deepak Parekh has said that something needs to be done to change this pattern. “There is too much dependence on foreign institutional investors (FIIs), and I think we have exported our capital markets abroad. We have to do something to change this pattern,” Parekh told a capital markets meet organised by the ISB here over the weekend.
“Who is really benefitting from our well regulated equity markets? It is not the Indians, it is not our institutions, it is not our labour, it is not our retirees, but the FIIs,” said Parekh, Chairman of mortgage giant HDFC .
9:45 am Stock call: Infrastructure major Larsen and Toubro reported weak second quarter numbers. Though its net profit was up 21 percent led by other income, the company reduced its consolidated revenue guidance for FY15 from 15 percent growth year-on-year to now 10-15 percent. However, on order inflows, it maintained the guidance of 20 percent growth. Sanjeev Zarbade of Kotak Securities says though L&T delivered a mixed set of numbers for the second quarter of FY15, he continues to recommend investors to buy the stock on every dip.
He explains that any improvement in macros will provide positive cues for the company. On the order front, though the company is yet to see growth in large orders in chemicals and refinery, it is seeing positive traction in roads and power utilities business orders, he adds
9:32 am Result: Coal India reported over 28 percent fall in its consolidated net profit to Rs 2,192 crore in the September quarter of this financial year due to higher expenses. The world’s largest coal miner had clocked a profit of Rs 3,052 crore in the same quarter previous year, the company said in a BSE filing.
Its net profit took a beating as the company’s expenses rose by almost 8 percent as compared to the flat growth in sales. Total expenses increased to Rs 14,144 crore in the July-September quarter of this year from Rs 13,112 crore in the same period last year.
9:28 am Market check: The Sensex also touched record high at 280027. It is now up 152.98 points or 0.5 percent at 28021.61, and the Nifty up 43.65 points or 0.5 percent at 8380.65. About 1092 shares have advanced, 452 shares declined, and 31 shares are unchanged.
9:23 am Market at new high: The Nifty has touched another new high. The 50-share index is at 8368.45, up 31.45 points and the Sensex is up 100.37 points at 27969.00. About 972 shares have advanced, 421 shares declined, and 35 shares are unchanged.
L&T is down 2 percent after it disappointed investors with its September quarter results. Cipla, ICICI Bank, Hindalco and TCS are among the laggards. Gainers in the Sensex include Sun Pharma, ITC, BHEL, Sesa Sterlite and Coal India.
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The market has opened with some marginal gains. The Sensex is up 28.58 points at 27897.21, and the Nifty is up 0.80 points at 8337.80. About 573 shares have advanced, 178 shares declined, and 34 shares are unchanged.
Dr Reddy’s Labs, Sesa Sterlite, Sun Pharma, GAIL and M&M are top gainers in the Sensex. Among the losers are L&T, Coal India,Tata Motors, ICICI Bank and Maruti Suzuki.
It was an action packed weekend on political front as 21 new faces have been inducted in the Prime Minister Narendra Modi cabinet. Suresh Prabhu gets railways, Sadanand Gowda moved to law, Manohar Parrikar gets the defence ministry and Arun Jaitley now holds an additional portfolio of Information and Broadcast ministry.
The Indian rupee started the trade on a positive note. The currency climbed 19 paise to 61.43 per dollar against Friday’s closing of 61.62. Dollar hovered below a four-year peak, having lost a bit of altitude late last week after US jobs data fell short of expectations, prompting some investors to take profits on extremely long positions.
Agam Gupta of Standard Chartered said, “The dollar has gotten sold off against all currencies after the Non-Farm Payrolls print on Friday evening from the US markets.”
In Asia, investors also digested local media reports that Prime Minister Abe is considering calling a snap election if he delays a second sales tax hike.
In crude, Nymex crude rebounded marginally after the fall in unemployment in the US. Also, the head of the oil producing nations (OPEC), said there is no reason to panic over this recent drastic fall in crude prices. He added that it was speculation and not over-supply that triggered this fall in oil prices.
From precious metals space, gold settled more than 2 percent higher on Friday and posted its biggest one-day gain in nearly five months as a retreat in the US dollar and heavy short-covering lifted bullion.