The News International Team
11:55 pm Result: Kotak Mahindra Bank’s third quarter standalone profit after tax surged 36.6 percent year-on-year to Rs 464.5 crore, aided by strong other income and lower provisions. Standalone numbers include only banking operations. Net interest income, the difference between interest earned and interest expended, grew 16 percent to Rs 1,059.4 crore in the quarter ended December 2014 from Rs 912.7 crore in same quarter last year.
11:40 pm Buzzing: Shares of Hindustan Zinc jumped 3.5 percent intraday on Tuesday after it posted December quarter earnings. Its third quarter profit jumped 38.1 percent year-on-year to Rs 2,379 crore driven by other income. The bottomline and operational performance was ahead of expectations but revenue lagged estimates.
Macquarie maintains outperform rating on the stock with a target price of Rs 202 per share, stating the company has taken measures to offset the slower ramp up of production from underground mines which augurs well for FY16.
“It needs 30 percent Y-o-Y growth in Q4FY15 to meet guidance target. The recent corrective action taken by HZL on extending the life of itsopen pit makes us more comfortable with FY16 volumes,” the brokerage says in a note.
11:30 am Downgrade: India is expected to grow at 6.3 percent this year and 6.5 percent in 2016 by when it is likely to cross China’s projected growth rate, the IMF said today while terming the new government’s reforms as “promising” but insisted that their implementation is key. In 2014, India’s growth rate was 5.8 per cent against China’s 7.4 percent, said the World Economic Report update released by the International Monetary Fund. India’s growth rate in 2013 was five per cent as against China’s 7.8 percent.
India is projected to grow at 6.3 percent in 2015 and 6.5 percent in 2016, when it is likely to cross China’s projected growth rate of 6.3 per cent, the IMF said. “I think the reform plans of the new Prime Minister are promising. We are going to have to see the speed of the implementation,” said Gian Maria Milesi-Ferretti, Deputy Director in IMF’s Research Department.
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The market is holding on its gains as the Sensex is up 166.29 points or 0.6 percent at 28428.30 and the Nifty is up 51.35 points or 0.6 percent at 8602.05. About 1509 shares have advanced, 844 shares declined, and 286 shares are unchanged.Midcaps are outperforming with a firm advance decline ratio.
HDFC, Tata Steel, Hindalco, Sesa Sterlite and Axis Bank are top gainers while GAIL, HUL, M&M, Bajaj Auto and Hero are among the laggards.
Metal stocks gain. According to a CNBC-TV18 exclusive government sources indicate that the steel ministry has written to the finance ministry seeking revision of import duty on steel products. The steel ministry is asking for raising import duties to safeguard the domestic industry from dumping. Additionally the ministry has suggested waiving import duty on coking coal from 2.5 percent.
Globally, Asian stocks gain buoyed by China’s Q4 GDP that beat expectations to come in at 7.3 percent versus expectations of 7.2 percent. Gold continues to trade at 4-month highs with Brent at sub USD 50 per barrel.