12:55 pm Amara Raja at new high:
Shares of Amara Raja Batteries hit a record high of Rs 1,025 apiece, up more than 5 percent after reporting better than estimated earnings in the quarter ended June. Brokerages maintained buy rating on the stock post earnings.
Net profit in Q1 grew by 15 percent year-on-year to Rs 122 crore, driven by strong revenue growth in the automotive segment and favourable lead prices. Revenue increased by 11 percent to Rs 1,145 crore. Operating profit margin expanded by 100 basis points to 18.2 percent, the highest since Q4FY10.
Brokerage Nomura has retained buy rating on the stock. With capacity expansions in the automotive segment and with the recovery in the economy, it expects Amara Raja to continue to deliver healthy double-digit revenue growth.
12:43 pm Market Update: Equity benchmarks recovered in afternoon trade. The Sensex declined 71.22 points to 27996.09 and the Nifty fell 7 points to 8511.55.
About 1313 shares have advanced, 1206 shares declined, and 141 shares are unchanged on the BSE.
Tata Motors bounced back with more than 1 percent gain. The stock was down 2 percent on weak global sales numbers.
12:23 pm Buzzing: Birla Corp said it will acquire two cement units from Lafarge India having a capacity of 5.15 million tonnes per annum for Rs 5,000 crore. The stock rallied 15 percent.
Birla Corporation said in a BSE filing said “it has agreed to a transaction with Lafarge India Private Ltd, whereby Birla Corp, either directly or through its wholly-owned subsidiary, shall acquire both the Jojobera and Sonadih cement businesses (Acquisition business) from Lafarge India for an Enterprise Value of Rs 5,000 crore”.
Birla said it will acquire the cement business, comprising an integrated cement unit at Sonadih (Chhattisgarh), a cement grinding unit at Jojobera (Jharkhand), along with Concreto and PSC brands.
“Acquisition business has a cement capacity of 5.15 million tonnes per annum,” it added.
The company said that upon completion of this transaction, Birla Corporation will consolidate its position in the eastern India cement market, where the demand supply scenario and outlook continue to remain buoyant.
12:00 PM Market Check
The market halved its losses in noon trade with the Sensex down 154.39 points at 27912.92 and the Nifty down 30.10 points at 8488.45. However, the broader markets outperformed benchmarks as the BSE Midcap and Smallcap indices gained more than 0.2 percent.
The rupee dropped further by 21 paise to Rs 65.21 following sustained bouts of dollar demand from importers amid higher greenback overseas on the back of weak domestic equity market. The domestic currency on Thursday had plummeted by 32 paise to 65.10 against the dollar, hitting its weakest level last seen in September 2013, as China further devalued yuan.
All PSU banks rallied further after the government launched a revamp plan ‘Indradhanush’ which deals with reforming PSU banks. Bank of Baroda led the upmove as the market cheered the appointment of the MD and Chairman of the bank from the private sector. The stock shot up 14 percent.
SBI gained 4 percent after the PSU banks reform move and the bank decided to cut rates on deposits of certain maturities by 25-50 basis points.
ICICI Bank rebounded smartly, up marginally in noon trade. Tata Steel and Sun Pharma rallied 2 percent each.
Cipla lost nearly 4 percent despite a strong quarter. Kotak has a buy rating with a target of Rs 790 per share. But CLSA maintained sell rating with target of Rs 683.
HDFC fell nearly 2 percent as the HDFC Life stake sale to Standard Life was done at a slightly lower valuation against the sale to Azim Premji Trust in June quarter. HDFC Vice Chairman and CEO Keki Mistry said the company may look to bring IPO of HDFC Life in 2016.