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Sensex, Nifty consolidate; Asian Paints, HDFC fall 2-3%

14:00

The News International Team

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.

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