The News International Team
After a heady rally this week on Dalal Street, the market looks all geared up for another busy time ahead. The market recouped previous week’s losses with the Sensex and Nifty rising 2.4 percent and 2.8 percent, respectively after surprise rate cut by RBI and fall in December trade deficit. The rupee also gained past 62/dollar while lower crude prices played havoc.
Corporate earnings of major companies may rule the roost in the week. So, here are stocks that investors and traders are keenly keeping a close eye on.
The petrochemical major announced December quarter earnings on Friday post market hours. It matched street expectations by reporting profit of Rs 5,085 crore for the December quarter, down 11.4 percent compared to Rs 5,742 crore in previous quarter on standalone basis.
Its net sales declined 16.9 percent to Rs 80,196 crore during the quarter from Rs 96,486 crore in previous quarter. Gross refining margin for the third quarter of current financial year 2014-15 was USD 7.30 a barrel against USD 8.30 a barrel in second quarter.
Deven Choksey, MD, KR Choksey Shares & Securities said the numbers are comfortable and better-than-expected.
The software’s third quarter profit jumped 5 percent sequentially to Rs 2203.1 crore. IT services revenue rose 3.9 percent to Rs 11,344 crore in October-December quarter and dollar revenues increased 1.3 percent to USD 1.795 billion on sequential basis.
Constant currency IT services revenue in dollar terms grew 3.7 percent sequentially USD 1.84 billion, which was within the company’s guidance range of USD 1.81-1.84 billion. This constant currency dollar revenue growth was much higher compared to its peers Infosys (2.6 percent) and TCS (2.5 percent).
Dipesh Mehta, IT Analyst, SBICAP Securities says the numbers give confidence of future growth prospects because it was reasonably broad based. The stock is sure to do well going forward, says Mehta. The guidance given by the company too is in line with expectations, he adds.
The ministry may give clearance to revival plan next week, according to CNBC-TV18 sources. After Kalanithi Maran’s exit, the market is eager to know Ajay Singh’s turnaround plan for the troubled airline company. Also, it will be interesting to see if Singh can avoid an open offer.
The general exemption available under takeover code includes certain schemes of arrangement, subject to conditions. SpiceJet has called its scheme as “scheme of reconstruction”.
Oil marketing companies
HPCL , BPCL and IOC are likely to react to price cut of petrol and diesel. OMCs have slashed diesel and petrol prices by Rs 2.25 and Rs 2.42 per litre respectively. Meanwhile, excise duty on the products was hiked by Rs 2 per litre. This is the ninth straight reduction in petrol prices since August, and fifth in diesel since October.
RK Singh, Former CMD, BPCL, said there could still be some over-recovery by OMCs but one should not forget that oil companies need to have their own fiscal conditions sound so that they can invest, and service large projects in the future.
The FMCG major is expected to announce its December quarter results on Monday. It is likely to report net profit at Rs 1,091 crore, up 2.7 percent year-on-year. During the period, its total income is estimated to grow 10.2 percent at Rs 7963 crore. Analysts expect 5-6 percent volume growth Y-o-Y in Q3 on a base of 4 percent YoY led by promotions carried in soaps and detergents segment.
Kotak Mahindra Bank
It is expected to report third quarter standalone profit at Rs 439.56 crore, up 29.3 percent compared to Rs 340 crore in the year-ago period. The private sector lender will announce its earnings on January 20. Net interest income, the difference between interest earned and interest expended, may jump 18.7 percent to Rs 1,083.1 crore during October-December quarter from Rs 912.7 crore in same quarter last fiscal.
Other major companies that are expected to announce third quarter earnings this week are ITC, Biocon, Ultratech Cement, ING Vysaya and Cairn India.
Disclosure: Reliance Industries has acquired management control of Network18, which owns TV18 Broadcast and moneycontrol.com
(Posted by Nasrin Sultana)