The News International Team
1:50 pm Result poll: Infosys, the second largest software services exporter in India, is expected to report a 1.9 percent growth in profit at Rs 3,157 crore (excluding forex loss/profit) for the quarter ended December 2014, according to average of estimates of analysts polled by CNBC-TV18. Profit in the previous quarter was Rs 3,096 crore.
The IT exporter will announce its third quarter earnings on Friday. Revenue may jump by 3.3 percent sequentially to Rs 13,783 crore and dollar revenue may increase by 1 percent quarter-on-quarter to USD 2,222 million during October-December quarter. Analysts believe the quarterly performance of the company may be impacted by seasonal weakness and cross currency headwinds.
1:30 pm Buzzing: Shares of Berger Paints and Asian Paints were up 4-10 percent (respectively) intraday. Macquarie has initiated coverage on both the stocks with outperform rating. It expects Berger Paints to touch Rs 509 calling it a challenger in the Indian paints market and thinks that its investment in advertising &promotions and capacity will pay good dividends.
“We expect Berger’s gross margins to expand by 200bps over FY15-17E due to lower crude prices. Combination of higher margin premium product, lower crude prices and operating leverage can aid a 220 basis points improvement in EBITDA margin in FY15-17E,” it elaborates in a report.
Buying interest is seen in Berger also because it turned ex-stock split in the ratio of 2:1 today. Shares having face value of Rs 2 will be divided into two shares of Rs 1 face value.
Macquarie expects Asian Paints to grow faster (18.8 percent revenue CAGR over FY15-17E) than the industry (16.7 percent CAGR over the same period) given its size and its focus on advertising, promotion and distribution.
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The market continues to hold its gains with major support from FMCG and bank stocks. The Sensex is up 282.77 points or 1 percent at 27191.59 and the Nifty is up 95.35 points or 1 percent at 8197.45. About 1933 shares have advanced, 726 shares declined, and 405 shares are unchanged.
Tata Motors, HUL, ITC, Tata Power and GAIL are top gainers in the Sensex. Among the losers are Reliance, Sesa Sterlite, Bajaj Auto and Hero MotoCorp.
Gold prices fell by Rs 180 to Rs 26,981 per ten grams in futures trading today as speculators trimmed positions amid a weak global trend. At the Multi Commodity Exchange, gold for delivery in February fell by Rs 180, or 0.66 percent, to Rs 26,981 per 10 grams in a business turnover of 1,823 lots. Similarly, the metal for delivery in April declined by Rs 168, or 0.61 percent, to Rs 27,220 per 10 grams in 57 lots.
Analysts attributed the fall in gold futures to weak global trends as oil prices recovered before a US jobs report that will provide clues on the outlook for interest rates. Meanwhile, gold fell 0.5 percent to USD 1,204.97 an ounce in Singapore