The News International Team
03:30 Market closing
The market ended in green for second straight day. The Sensex was up 178.35 points at 28533.97, and the Nifty ended up 61.85 points at 8627.40. About 1729 shares have advanced, 1076 shares declined, and 216 shares are unchanged.
Axis Bank was up 3 percent while NTPC, Maruti, L&T and RIL were top gainers in the Sensex. Among the losers were ONGC, BHEL, M&M, Cipla and Tata Motors.
03:20 pm Sugar sale
The world’s second biggest sugar producer, is considering giving export incentives for 1.4 million tonnes raw sugar, Food Minister Ram Vilas Paswan, as mills started distress sale of the sweetener to pay cane farmers.
“The ministry’s views is that we should give subsidy for 1.4 million tonnes…the paper has been circulated for a cabinet meeting,” Paswan told. Without any government incentive, Indian sugar is uncompetitive in world markets well supplied by low-cost producers Brazil and Thailand.
Subsidies of Rs 3,300 a tonne helped exports of raw sugar last year and government sources said last month India was considering a rise in the subsidy to Rs 4,000 this year.
IT services firm Cognizant has guided to a 16 percent growth for calendar year 2015 and believes its forecast is fair since it is seeing increased traction in all its businesses.
The company is also eyeing 19 percent growth for fiscal FY15 led by higher spending in healthcare. The forecast is higher than Nasscom’s projection of 12-14 percent growth exports for FY16. The Nasdaq-listed IT company has crossed the USD 10 billion revenue mark.
Speaking to CNBC-TV18, Malcolm Frank said it will continue to focus on growth and surpassing its peers has been a natural by product. Cognizant bases its upbeat guidance on strong demand environment across services, that too after factoring in higher Visa costs. The company does not think US will pass its Immigration Bill in next two years.
02:45pm Ricoh India locked at 20% upper circuit
Ricoh India has turned profitable during October-December quarter with net at Rs 10.6 crore as against loss of Rs 0.2 crore in the year-ago period. The bottomline was supported by strong revenue growth and higher other income.
Net sales of the leading office automation company shot up 80.3 percent to Rs 409 crore in Q3FY15 from Rs 226.8 crore in same quarter last year.
Goods business increased 115.6 percent Y-o-Y to Rs 289.8 crore with EBIT loss at Rs 5.5 crore (against loss of Rs 8.5 crore in Q3FY14). Services segment reported a 29 percent growth at Rs 119.3 crore with EBIT rising 64.6 percent at Rs 34.4 crore in the quarter gone by.
02:30pm Syndicate Bank in News
State owned Syndicate Bank has registered a decline of around 20 percent in net profit for the third quarter ended December 2014 at Rs 304.99 crore. Bank’s net profit in the corresponding October-December quarter of previous fiscal stood at Rs 379.76 crore.
Total income has increased from Rs 5,011.28 crore for the quarter ended December 31, 2013 to Rs 5,921.58 crore for the quarter ended December 31, 2014,” it said in a filing to the BSE.
The net interest margin, a gauge of profitability, fell to 2.25 percent during Q3-FY15, from 2.76 per cent in Q3-FY14.
On the asset front, gross non performing assets (NPAs) or bad loans increased to 3.6 percent of gross advances, from 2.8 percent in the year ago period. Net NPAs were at 2.38 percent of net advances in the third quarter of 2014-15, up from 1.66 percent during the same period a year earlier.
02:00pm Market Check
It’s a steady day of trade on Dalal Street. The market gained for the second consecutive day led by banking stocks. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 1.3 percent each.
The Sensex advanced 208.90 points to 28564.52 and the Nifty climbed 72.05 points to 8637.60. About 1603 shares have advanced, 1060 shares declined, and 224 shares are unchanged on the BSE.
Ajay Srivastava of Dimensions Consulting expects the market to rise in the run-up to the Budget. He says FIIs are mainly betting on largecaps and banking names. He remains cautious on PSU banks as he sees another deep correction if NPAs rise.
Global markets traded mixed. Investors are cautious ahead of a meeting of eurogroup finance ministers in Brussels to discuss a solution to the Greek debt crisis.
The rupee traded marginally higher today tracking strength in equities. The 10-year benchmark yield is rangebound ahead of retail inflation data due tomorrow.
TCS is confident of beating NASSCOM’s 12-14 percent growth guidance for FY16. Natarajan Chandrasekaran, CEO & MD told CNBC-TV18 that the company is seeing growth across markets, adding government’s push for digital India will aid revenues.
Jindal Steel topped the buying list on Nifty, up 8 percent followed by L&T, Bank of Baroda, PNB, Axis Bank, Reliance Industries, Maruti and NTPC with 2-3 percent gains.