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Nifty holds 8750, Sensex firm; Reliance, NTPC underperform

11:00

The News International Team

11:30am Interview

After a 66 percent rise in third quarter net profit, Y M Deosthalee, chairman and managing director, L&T Finance Holdings says the company is likely to see stable net interest margins (NIMs) in the quarters ahead.

The net interest income for the lending business stood at Rs 623 crore (NIM 5.66 percent) during the quarter compared to Rs 479 crore (NIM 5.23 percent) last year.

Deosthalee says net non-performing assets (NPA) declined though gross NPAs rose.

“The increase in gross NPA is seasonal and it was impacted by the increase in the provision coverage to 35 percent consolidated level,” he adds.

The company’s gross NPA increased marginally at 3.01 percent in December quarter compared to 2.93 percent in the year-ago period and 2.96 percent in previous quarter. Net NPA during the same period stood at 1.98 percent against 2.06 percent and 2 percent, respectively.

11:00am Market Check

The market extended gains into the sixth consecutive session today with the Sensex hitting 29000-mark. The index rose 115.05 points to 29003.91 and the Nifty climbed 24.05 points to 8753.55.

The market sentiment is supported by FIIs that bought over Rs 2,000 crore in cash yesterday, in the sixth straight consecutive session of buying.
 
Globally, the markets are bracing for the European Central Bank meet outcome today. Expectations are of 50 billion euros per month of bond buying expected. Asian markets traded choppy while gold fell sub USD 1300 an ounce and brent crude prices traded sub USD 50 a barrel.

Sesa Sterlite trimmed gains to 0.5 percent from 3.5 percent. The company yesterday said it received approval for renewal of all its mining licenses in Goa. ITC rebounded taking support at its 200 DMA, up 1 percent while HUL traded at a fresh life high, up over a percent.

Reliance Industries topped the selling list on Sensex, down 2 percent followed by NTPC with 1.4 percent decline. HDFC and SBI saw profit booking, falling marginally.

Cairn India will release its quarterly numbers today. According to a CNBC-TV18 poll, Cairn’s third quarter profit is expected to decline 40 percent sequentially to Rs 1,625 crore on lower revenue and operational performance. The sharp fall in crude oil prices is likely to have an impact on Cairn’s earnings in Q3FY15. Brent crude prices fell to USD 49 a barrel (currently) from USD 115 a barrel in June 2014.

Suzlon Energy shed 3.5 percent after rising as much as 8 percent in early trade as it announced selling of its German arm Senvion for 1 billion euros to US-based PE firm Centerbridge Partners in an all cash deal. Shares fell because of fears of what the financials of the company will look like without Senvion. Bankers such as SBI, IDBI Bank and Central Bank say they are still to approve the deal, but expect the entire amount to go towards retiring high cost rupee debt.

Hitachi Home surged 20 percent. The company announced divesting of stake in the company into global joint venture which is formed by Johnson Controls and Hitachi Appliances.

Sun TV Network fell 5 percent, possibly impacted by news of CBI arresting three persons including a close aide of Dayanidhi Maran in connection with a telephone exchange case. However, statements from Dayanidhi Maran today say the arrest does not have anything to do with Sun TV.

Advancing shares outnumbered declining ones on the Bombay Stock Exchange by a ratio of 1299 to 1128.

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