The News International Team
03:30 pm Market close
The market ended at record closing high on expiry of January F&O series. The Nifty ended at 8952, up 38.05 points while the Sensex was up 122.59 points at 29681.77. Top gainers in January series were DLF (up 26.6 percent), Tata Motors (up 24 percent) and Axis Bank (up 21 percent). Nifty gained 9.5 percent while Bank Nifty surged 10.7 percent in the series.
In today’s trading session, Dr Reddy’s Labs, HDFC Bank, BHEL, Reliance and ITC were top gainers in the Sensex. Among the losers were HDFC, SBI, M&M, Coal India and Maruti Suzuki.
03:10 Rights issue
Tata Motors intends to utilise Rs 7,500 crore, which it plans to raise via a rights issue, to fund various activities, including introduction of more than 100 new commercial vehicles over the next three years and passenger vehicles on a new modular platform from FY 2016-17.
The company, which is seeking shareholders’ approval through postal ballot for raising funds up to Rs 7,500 crore through a rights issue of ordinary shares, also intends to use the funds to expand in international markets.
“The rights issue proceeds are expected to be utilised to finance a portion of the ongoing capital expenditure, including product development expenses; invest in subsidiaries to support future growth opportunities in India and abroad,” Tata Motors said in a filing to the BSE.
2:55 pm Royalty restrictions?
The Finance Ministry has turned down a DIPP proposal seeking re-introduction of restrictions on royalty payments for preventing excessive outflow of foreign exchange, saying it would send a negative signal to overseas investors.
The ministry, according to sources, is of the view that imposing restrictions on royalty payments will be “retrograde step” and not in sync with the liberalised FDI policy environment. Worried over excessive outflow of foreign exchange as royalty and fees for technology transfer, and use of brand names, the Department of Industrial policy and Promotion (DIPP) had mooted a proposed to re-introduce restrictions on such payments by foreign companies to their parent entities.
02:40 pm Results
Commercial vehicle maker Ashok Leyland turned profitable in the quarter ended December 2014. Net profit for the quarter stood at Rs 32.1 crore against loss of Rs 167.2 crore in the year-ago period. Higher other income and lower finance cost supported the profitability but tax cost restricted profit growth.
Topline and operational performance beat street estimates while the bottomline slightly missed expectations. Profit was expected at Rs 35.8 crore on revenue of Rs 3,195 crore for the quarter, according to the average of estimate of analysts polled by CNBC-TV18.
Revenue shot up 72.1 percent year-on-year to Rs 3,361 crore, driven by strong sales volume growth.
Total volumes during the quarter grew 38 percent on yearly basis to 25,397 units led by medium and heavy commercial vehicle (MHCV) sales. MHCV volumes saw a solid 70 percent growth while light commercial vehicle sales declined 8 percent Y-o-Y.
02:30pm Adani Enterprises in focus
Adani Enterprises plans to announce a mega restructuring plan tomorrow reports CNBC-TV18’s Varinder Bansal quoting sources.
The restructuring is mainly to remove the holding structure and then focus on the core business of the left entity, which would be mining, trading, agri, logistics etc.
The current market cap of Adani Enterprises is Rs 65,000 crore because it owns 74.99 percent in Adani Ports and 68.99 percent in Adani Power.
Post the restructuring process, the company is also looking at raising funds.
Post restructuring, analysts do not expect a huge upside for the stock from current levels but it will undoubtedly be a clean structure.
02:00pm Market Check
Equity benchmarks as well as broader markets continued to consolidate on expiry day for the January derivative contracts. Weak global cues and expiry factors kept markets subdued.
The 30-share BSE Sensex fell 101.55 points to 29457.63 and the 50-share NSE Nifty declined 31.95 points to 8882.35. About 1290 shares have advanced, 1475 shares declined, and 260 shares are unchanged on the Bombay Stock Exchange.
Manish Gunwani of ICICI Prudential AMC expects a correction or minor consolidation in the near term. However, the market looks good with a 2-3 years perspective, he say.
Global markets are weak today. Asian markets like Shanghai closed with losses of more than 1 percent while European equities like FTSE traded down more than 0.5 percent as oil declined and Greece weighed. NYMEX crude traded at USD 44 a barrel, the lowest level since March 2009.
Telecom stocks like Bharti Airtel, Idea Cellular are under pressure after the Cabinet approved 3G auction reserve price at Rs 3,705 crore which is 36 percent higher than the TRAI recommendation and 10.6 percent higher than the previous 3G auction held in 2010.
In key earnings reactions today, Asian Paints disappointed after Q3 profit rose 12 percent, lower than expectations of 30 percent growth. The stock fell 3 percent. HDFC dropped over 2 percent after the housing finance company reported 11.5 percent growth in profit, in line with estimates. However, Dr Reddy’s Labs reported a 7 percent fall in profit in Q3, which is higher compared to expectations of 14 percent decline. In midcaps, VIP Industries and OBC tanked 7 percent after weak numbers.