The News International Team
1:55 pm Buzzing: Shares of Asian Paints surged to record high at Rs 916.95, up 3 percent intraday after Credit Suisse upgraded it to outperform from neutral rating. The brokerage has also raised target price to Rs 1020 from Rs 710 per share. Credit Suisse has increased earnings estimates by 20 percent considering crude is at USD 58/ bbl in 2015 and USD 75/bbl in 2016. According to it, the company has major margin tailwinds and a very favourable input cost scenario in FY16 as over 70 percent of the input cost basket is trending downwards.
1:45 pm Defaulter? Jaiprakash Power Ventures said it was likely to default on payments for convertible bonds worth USD 200 million due on February 13 this year, as it could not generate enough revenue from its operations. Jaiprakash, which has been weighed down by debts and a sharp downturn in the performance of the Indian power sector, said in a statement on Wednesday the company was confident of its ability to pay its dues under the bonds by March 31, 2016.
1:30 pm Result: Aban Offshore beat street expectations by reporting a 62 percent growth (year-on-year in consolidated net profit at Rs 130 crore. Good operational performance due to decline in expenses pushed the bottomline higher.
Profit was expected at Rs 85 crore on revenue of Rs 992 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
Consolidated total income of the offshore drilling services provider (to oil companies) grew 1 percent to Rs 1,003 crore in the quarter ended December 2014 from Rs 994.3 crore in same quarter of last fiscal.
Total expenses slipped 1 percent on yearly basis to Rs 669.78 crore during the quarter due to lower cost of materials consumed, rental charges for machinery and insurance cost.
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The market started to skid after the Nifty almost touching 9000-level. The 50-share index is up 15.10 points at 8925.60 ahead of Jan F&O series expiry tomorrow. The Sensex is up 42.56 points at 29613.60. About 1073 shares have advanced, 1583 shares declined, and 254 shares are unchanged.
HDFC is up 3 percent followed by Maruti, ICICI Bank, Coal India and SBI. Among the losers are Bharti, Tata Motors, Sesa Sterlite, Tata Steel and Tata Power.
Analysts say traders are cautious because of the Fed’s first two-day policy meeting of the year that concludes tonight, and policymakers will likely restate their “patient” approach to raising rates, while also voicing faith that the economy will continue improving.
The Federal Reserve is expected to signal it remains on track to begin raising interest rates later this year, as the central bank shows confidence that low inflation and rising risks from abroad have yet to derail the US economic recovery.