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Sensex, Nifty maintain uptrend; Aurobindo, GSK rally

12:00

The News International Team

12:55pm Interview

Minda Industries soared 13 percent intraday on Wednesday to Rs 635 after reporting nearly five-fold jump in net profit to Rs 26 crore for the July-September quarter, due to strong operational income and exceptional item gain on account of sale of battery division. 

The company had profit of Rs 5.12 crore in the same quarter year ago.

Speaking to CNBC-TV18, group CFO Sudhir Jain said the improvement in volumes helped the topline. The volume growth of the company may rise from the current 15 percent to 20 percent in the quarters to come.

The auto-components manufacturer is also expecting margins of around 13 percent in next three-four quarters versus 8 percent currently.

The company is currently operating at 80-85 percent capacity utilisation and expects it to improve to 95 percent in second half of FY15.

Minda has also expanded its Manesar plant in last two years and has added a plant in Hosur recently. The company is not serious about any further acquisitions currently, Jain added.

12:40pm Nikkei at fresh 7-year high

Japanese stocks gained, as investors gave the thumbs-up to a media report that Prime Minister Shinzo Abe will delay a second sales tax hike to avoiding damaging Japan’s economic recovery, and call a snap election to cement his position.

The Nikkei benchmark closed up 0.4 percent at 17,197.05, its highest since October 2007.

Department store shares outperformed the market as the prospect of retailers avoiding damage to sales similar to that caused by April’s tax hike boosted sentiment.

The broader Topix advanced 0.4 percent to 1377.05, while the JPX-Nikkei Index 400 closed up 0.2 percent at 12,580.85, reports Reuters.

12:20pm Market Expert

Prolonging bullish tone of the market, Ravi Muthukrishnan, Co-head research, ICICI Securities has a Nifty target of 9,200 in a year’s time. In addition, he expects earnings to grow 16-18 percent in FY15-16.

With most earnings meeting street estimates, winter session of Parliament coming in and anticipation of various reforms encircling the Budget, he sees huge upside for the market hereon.

In an interview to CNBC-TV18, he advises investors to look at quality midcap stocks, as discount between largecaps and midcaps have struck down dramatically.

12:00pm Market Check

The market continued to trade strong with the Sensex rising 144.19 points to 28054.25 and the Nifty climbing 32.85 points to 8395.50 led by auto and financial stocks.

About 1520 shares have advanced while 1199 shares declined on the Bombay Stock Exchange.

In key macro data to watch for today is October CPI and September industrial output which will be announced after market hours. A CNBC-TV18 poll expects consumer price index to come in sharply lower at 5.63 percent versus 6.46 percent in September while industrial activity is also expected to pick up, which is seen at 2 percent versus 0.4 percent in August.

Power Grid Corporation of India fell over 2 percent after its second quarter earnings missed street estimates. Total income came in higher by 4.5 percent while PAT came in lower by 3.1 percent at Rs 1,200 crore.

In key earnings, Tata Steel declined more than a percent lower as a CNBC-TV18 poll expects topline to fall by 2 percent due to weak European volumes though Indian volumes will be marginally higher. Profits are expected to decline by 35 percent owing to higher effective tax rate at the consolidated level.

Aurobindo Pharma gained 3.7 percent after the company’s US subsidiary emerged as highest bidder to acquire Natrol with bid of USD 132.5 million while GlaxoSmithKline Pharmaceuticals too gained 3.7 percent after CNBC-TV18 learnt that the company has shortlisted a buyer for it’s Thane property worth Rs 1,000 crore.

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