The News International Team
02:50pm Germany GDP growth
Germany grew by a much stronger than expected 0.7 percent in the fourth quarter of 2014, with domestic demand lifting Europe’s largest economy out of its mid-year lull to take growth for the whole year to 1.6 percent and raise hopes of a strong 2015.
Quarterly GDP beat not only the consensus forecast for 0.3 percent in a Reuters poll, but also all individual estimates. The overall growth rate for 2014 overshot the Statistics Office’s January estimate of 1.5 percent.
Unadjusted data showed the economy grew by 1.6 percent on the year in the fourth quarter, also far exceeding the consensus forecast in a Reuters poll for 1.0 percent growth. Third-quarter data growth was confirmed at a previously reported 0.1 percent, reports Reuters.
02:30pm Sun Pharma gains ahead of Q3 nos
Sun Pharmaceutical Industries will announce its third quarter earnings on Saturday. According to a CNBC-TV18 poll, net profit of the drug maker may rise 7 percent year-on-year to Rs 1,638 crore during October-December quarter, impacted by lower operating performance.
Revenue is seen climbing 13.1 percent to Rs 4,879 crore in December quarter from Rs 4,312 crore in corresponding quarter of last fiscal.
During the quarter, its US subsidiary Taro Pharmaceutical Industries had reported a 28.7 percent growth in bottomline and 11.3 percent growth in revenue.
Hence, analysts expect US business growth to be similar to second quarter (largely led by Taro) at 13-15 percent Y-o-Y. However, ex-US revenue may be weak as drugs such as Doxycycline could continue recording a decline. In Q2FY15, US Business was up 14.8 percent Y-o-Y to USD 481 million.
Domestic sales growth, however, is expected to be maintained at around 19-20 percent in Q3. In previous quarter (Q2), domestic formulations were steady with a growth 21 percent at Rs 1,154 crore Y-o-Y (constituted 23 percent of sales).
02:00pm Market Check
The market continued to trade sharply higher with the Sensex rising 304.68 points or 1.06 percent to 29109.78 and the Nifty climbing 98.80 points or 1.13 percent to 8810.35. The broader markets gained too; the BSE Midcap and Smallcap indices rose 0.9 percent and 0.5 percent, respectively.
About 1424 shares have advanced, 1344 shares declined, and 196 shares are unchanged on the Bombay Stock Exchange.
Abhay Laijawala of Deutsche Equities is bullish on the market going into the Budget, saying sectors like infrastructure, banks & financials and urban consumption will be key beneficiaries.
Big boy SBI surged 7 percent after posting a stellar set of earnings in the third quarter. Asset quality remained stable as fresh slippages and restructuring came in lower than Q2 for India’s largest public sector bank.
Another strong set of earnings came in from Mahindra & Mahindra. The stock traded 4 percent higher after its third quarter earnings beat estimates. An exceptional gain of Rs 300 crore aided profit.
State-run oil retailer Bharat Petroleum Corporation has turned profitable with the third quarter net profit at Rs 551 crore against loss of Rs 1,089 crore in same quarter last fiscal. Higher other income and lower finance cost boosted profitability. The stock gained 2.5 percent.
Global cues were strong today as most Asian markets posted gains. Europe too opened in the green extending yesterday’s rally. Brent crude held above USD 59 a barrel, up almost 2 percent this week so far.