The News International Team
9:50 am Buzzing: Shares of DLF skid 6 percent intraday after it posted disappointing December quarter results. The realty firm reported 9 percent decline in its consolidated net profit at Rs 131.79 crore for the quarter ended December on lower sales.
Its net profit stood at Rs 145.29 crore in the year-ago period. Income from operations fell by 5 percent at Rs 1,956.72 crore for the third quarter of this fiscal from Rs 2,058.42 crore in the corresponding period of the previous year.
Besides lower sales, DLF’s net profit fell because its other income dropped to Rs 123 crore during October-December quarter of this fiscal from Rs 531.78 crore in the year-ago period.
Finance cost, too, increased to Rs 648 crore from Rs 633 crore during the period under review.
9:40 am Delhi election results: AAP crosses the halfway mark, all set to form government in Delhi. AAP leads in 53 seats, BJP in 10 seats. Congress not ahead on even a single seat. t’s day of hope, the passion is winning Delhi, says AAP leader Yogendra Yadav. AAP’s SK Bagga leading in Krishna Nagar by 1065 votes against BJP’s Kiran Bedi.
9:30 am FII view: Abhay Laijawala, Deutsche Equities says the brokerage believes that the recent trend of strong inflows into equity mutual funds is indicative of a long-pending shift in the nature of Indian households’ savings, from physical assets to financial assets.
“As India’s macroeconomic distortions correct, non-productive physical assets would continue to lose their allure, relative to financial assets,” he adds.
Deutsche believes that the financial sector should be the biggest beneficiary of this transition, says Laijawala. Hence the brokerage maintains financials as the biggest overweight in model portfolio.
9:22 am Market check: The market quickly recovered from early weakness. The Sensex is up 123.55 points at 28350.94 and the Nifty is up 36.95 points at 8563.30. About 695 shares have advanced, 450 shares declined, and 149 shares are unchanged. Hindalco is up 3 percent. Tata Motors, Tata Steel, SBI and Axis Bank are gainers in the Sensex. Among the losers are Dr Reddy’s Labs, Tata Power, L&T, ONGC and Bharti Airtel.
Don’t miss: Delhi Elections: Counting begins, AAP senses victory, BJP jittery
The market is weak as the Nifty opened below the 8500-mark but quickly pull up strength. The 50-share index is up 5.45 points at 8531.80. The Sensex is down 101.37 points at 28126.02. About 363 shares have advanced, 478 shares declined, and 151 shares are unchanged.
Hindalco, Tata Motors, Tata Steel, Infosys and HUL are gainers in the Sensex. Among the losers are L&T, Tata Power, ICICI Bank, Hero and NTPC.
The Indian rupee has opened flat at 62.15 per dollar on Tuesday against previous day’s closing value of 62.17 a dollar.
The dollar slips somewhat after a payrolls-inspired rally ran out of steam. The dollar index is a tad softer but not far from an 11-year peak scaled last month.
Pramit Brahmbhatt of Veracity said, “We expect rupee to depreciate today as Asian markets have already opened on a weak note which will force local equities to trade low. Also, the gain in dollar may hurt the rupee. The USD-INR is expected to be in a range of 61.70-62.70/dollar.”
Stocks in the US closed lower despite oil settling higher, as concerns about Greece continued to weigh. The CBoE VIX closed around 18 levels.
In Europe too equities closed lower, as negotiations over Greece’s bailout program continued and the crisis in Ukraine re-escalated
Greek stocks tumbled 5 percent and bond yields spiked after Greek Prime Minister Alexis Tsipras said his election pledge to restructure Greece’s debt was “irrevocable” in his inaugural speech
In commodities, crude prices dipped slightly with Brent crude trading below USD 58 dollars per barrel. Meanwhile, the OPEC has hiked its demand forecast for 2015, predicting that low prices would help boost demand later in the year. However, the organization still said that oil demand growth was “yet to show any signs of accelerating.”
From precious metals space, gold prices remained largely unchanged at around USD 1240 an ounce.