The News International Team
It was a roller-coaster ride on January series F&O expiry day as traders saw some wild swings before a late recovery helping major indices end the day at record levels. As the Nifty clocked gains for the 10th straight session, it continued to march towards the 9000-mark. The Nifty scaled the 8950-mark with help from the select pharma and realty stocks. The 50-share index ended up 38.05 points at 8952.35. The Sensex was up 122.59 points at 29681.77.
It has been a stellar January series for the market as the Sensex and the Nifty surged more than 9 percent each. Bank Nifty gained 11 percent in the series.
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 says. He also expects to see minor earnings downgrades in near to mid-term.
Meanwhile, the stage is set for what could potentially be the largest stake sale ever in a state-run company. Investors are keenly awaiting the government’s decision on the floor price for the Coal India offer-for-sale scheduled for tomorrow.
The stock was under pressure today after the centre decided to sell up to 10 percent stake in the company hoping to mop-up nearly Rs 24,000 crore. However, fall in the stock price has irked the government as CNBC-TV18 sources say the centre has asked market regulator to tighten surveillance over fears of possible short-selling.
HDFC lost 3 percent after it posted December quarter earnings. Its third-quarter net profit stood at Rs 1,425.5 crore, rising 11.56 percent from Rs 1,277.7 crore in the same quarter last year. A CNBC-TV18 poll of analysts had forecast this Rs 1,426 crore. Income from operations rose 12.9 percent to Rs 6,758.4 crore. Its loan book, as of December 31, 2014, stood at Rs 2.19 lakh crore, compared to Rs 1.92 lakh crore on December 31, 2013.
Among other losers were SBI, M&M and Maruti Suzuki.
Meanwhile, Dr Reddy’s Labs surged 4 percent as its Q3 beat street expectations on topline and bottomline front but the operating performance was below estimates. Consolidated net profit of the drug maker fell 7 percent year-on-year to Rs 574.5 crore, impacted by weak operational performance. Higher R&D expenses also affected the profitability.
HDFC Bank was up 3 percent on hopes to rake in more foreign money. BHEL, Reliance and ITC were other gainers in the Sensex.
Adani Enterprises stock was buzzing in trade today ahead of its earnings tomorrow. Sources say the company may announce plans of a mega restructuring along with the earnings.