Live Markets Commentary
Sify Editors @ 4:00 PM
Sensex ends 274 points down
Indian stocks traded weak right through the session on Friday as investors chose to exit several counters amid persisting worries about near term growth outlook and on caution ahead of U.S. President-elect Donald Trump's swearing in ceremony, due later in the day.
Disappointing results from Axis Bank and a lack of positive triggers from Asian and European markets rendered the mood quite bearish. Fairly encouraging Chinese growth report and less hawkish comments by the U.S. Federal Reserve chair Janet Yellen failed to cheer investors.
The BSE benchmark Sensex ended down 274.10 points or 1% at 27,034.50, after touching a low of 27,009.81 in the final hour. The Nifty50 ended at 8349.35, slightly off the day's low of 8340.95, recording a loss of 85.75 points or 1.02%.
Sify Editors @ 3:30 PM
Motherson Sumi acquires Finnish firm PKC; Stock likely to see more upside
After a flat start and a subsequent smart upmove that fetched a gain of about 4%, Motherson Sumi Systems shares faced some resistance past noon and pared some of its gains.
However, prospects of the stock scaling a new 52-week high in the near term look quite bright.
The stock is currently up 0.6% at Rs 327.50, after having hit a high of Rs 338.10 earlier in the day. It's 52-week high of Rs 358.55 was recorded in early August 2016.
The stock's rise came about after the company announced that its Board of Directors at their meeting held on January 19, 2017, approved a proposal to acquire all the issued and outstanding shares and option rights in Finland-based PKC Group Pic.
PKC Group, which has its head quarters in Helsinki, is listed on the Nasdaw Helsinki Stock Exchange. The deal is estimated to be worth 571 million euros ($609 million).
Motherson Sumi Systems said that the acquisition will be made through a wholly owned subsidiary of the Company, to be setup for the purpose. The company has executed a combination agreement too following the Board approving for signing of the same between the Company and PKC for the proposed transaction. MSSL will make a voluntary, recommended public tender offer to acquire all the issued and outstanding shares and option rights in PKC.
PKC is a global tier 1 supplier of wiring harness and associated components to Original Equipment Manufacturers (OEMs) in the Heavy & Medium Duty Commercial Vehicles and Locomotive segments across North America, Europe, Brazil and China.
Combining the two companies will create a leading supplier of wiring systems and components for the worldwide transportation industry, the Finnish firm said about the acquisition. Mr Vivek Chaand Sehgal, Chairman of Motherson Sumi Systems said, "Wiring harnesses are ever more important to the products of our customers and hold a special place within our hearts at MSSL, because it is our company's genesis."
Since Year 2002, Motherson Sumi Systems has made as many as 16 acquisitions, with four of these happening in 2014.
Motherson Sumi Systems will report its third quarter results on 13 February 2017. In the second quarter ended September 2016, the company posted consolidated net profit of Rs 479.85 crore, as compared to Rs 380.32 crore in the quarter ended September 30, 2015. Total income was up at Rs 10,337.08 crore in the September 2016 quarter, from Rs 9044.09 crore in the quarter ended September 30, 2016.
Sify Editors @ 3:00 PM
Adani Power tanks on weak results
Adani Power shares are down sharply this afternoon with weak quarterly results triggering heavy selling at the counter.
The stock, which opened at Rs 38.95, slighly up from its previous close, declined to Rs 33.95 soon after the company came out with its third quarter results. At present, the stock is down more than 11% at Rs 34.50. The stock had recorded a 52-week high of Rs 39.05 on NSE this morning.
Adani Power Limited has announced that it posted consolidated net loss of Rs 323.61 crore in the quarter ended December 2016, as against net profit of Rs 109.49 crore it had recorded in the corresponding quarter last year.
Adani Power, which is among the largest private sector power generations companies in the country, recorded total income of Rs 5872.57 crore for the quarter ended December 31, 2016, compared to Rs 6210.76 crore in the year-ago quarter.
However, the figures for the nine months ended December 31, 2016 are not fully comparable with those of the corresponding nine months of the previous year, as the Adani Power acquired 100% stake of UPCL in April 2015.
On standalone basis, Adani Power posted a net loss of Rs 478.39 crore in the quarter ended December 31, 2016 as compared to net loss of Rs 30.24 crore in the quarter ended December 31, 2015. Total income decreased from Rs 3195.23 crore for the quarter ended December 31, 2015 to Rs 3063.97 crore for the quarter ended December 31, 2016.
Adani Power's bottomline was hit due to lower revenue and operational income, besides higher finance cost. In the third quarter, revenue was down 6.1% to Rs 5813 crore, from Rs 6191 crore in the year-ago quarter.
In the third quarter of current fiscal, Adani Power sold 14.9 billion units, as against 16.6 billion units sold in the year-ago quarter. The company's operating profit declined 18% in the quarter, and margin was down 410 points to 28.4%, compared to year-ago quarter.
Non-availability of domestic fuel linkages, regulatory complexity and lower power demand are some of the reasons attributed to the decline in revenues. The company feels the enviroment is quite challenging, but is of the view that these are temporary deterrents that could be resolved with intervention of key stake holders.
Sify Editors @ 2:30 PM
Sensex down 267 points as selling intensifies; Bank, metal stocks under pressure
With selling pressure gathering force, the market, which opened on a weak note this morning, has slipped deeper into the red now. A mixed close in Asian markets and slightly lower opening in major European markets, besides lingering concerns about near term growth outlook weigh on sentiment.
Also, investors appear quite wary of going long ahead of the swearing-in ceremony in the U.S., where Donald Trump will assume office as President. Markets across the globe are looking ahead to what stance the Trump-led government will take with regard to its economic and trade policies.
The BSE benchmark Sensex is down 266.82 points or 0.98% at 27,041.78 and the Nifty50 is down 82.10 points or 0.97% at 8353.00.
Sify Editors @ 2:00 PM
Profit booking drags Indian equities lower
Profit booking, coupled with negative global cues and a weak rupee, dragged the Indian equities markets lower during the mid-afternoon trade session on Friday.
Besides, investors remained cautious ahead of US President-elect Donald Trump's inauguration.
The key indices traded in the red, as stocks of banking, metal and consumer durables witnessed heavy selling pressure.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) receded by 70 points or 0.83 per cent, to 8,365.10 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,232.69 points, traded at 27,075.61 points -- down 232.99 points or 0.85 per cent from the previous close at 27,308.60 points.
The Sensex has touched a high of 27,264.41 points and a low of 27,055.14 points during the intra-day trade so far.
The BSE market breadth was tilted in favour of the bears -- with 1,629 declines and 866 advances.
Sify Editors @ 1:30 PM
Mindtree hits more than 1-month low on drop in profit
Mindtree Ltd's shares fall as much as 3 pct to lowest since Dec. 13
IT company said on Thursday Dec qtr consol profit fell about 27 pct to 1.03 billion rupees ($15.12 million), missing analyst estimates.
"Mindtree reported a tepid revenue performance in line with seasonal trends and management's indication of flat revenue growth," Emkay Global Financial Services said in a note.
Stock fell about 27 pct in 2016, when IT firms were hurt by Brexit worries and U.S. elections.
Sify Editors @ 12:50 PM
Sensex down 133 points as weakness persists; Idea, Bharti Airtel post strong gains
With several top stocks from across various sectors trading lower due to sustained selling pressure, the market, which opened weak this morning, continues to languish in negative territory in early afternoon trade.
Metal, power, consumer durables, power, oil and bank stocks are mostly weak. Healthcare, information technology, capital goods and power stocks are also mostly subdued, while telecom stocks are finding good support.
The Sensex is down 133.30 points or 0.49% at 27,175.30, while the Nifty50 of the National Stock Exchange is down 33 points or 0.39% at 8402.10.
Sify Editors @ 12:50 PM
Buy Reliance Industries for medium to long term gains. Add at declines.
Sify Editors @ 12:20 PM
Cement stocks subdued after CCI imposes penalty on seven companies
Cement stocks are turning in a mixed performance, with investors digesting news that the Competition of India has imposed a Rs 206 crore penalty on seven cement companies for bid-rigging and cartelisation.
The seven companies, including ACC, UltraTech Cement and Ambuja Cements, have been penalised a total of about Rs 206 crore, for violating competition norms with regard to a tender floated by an agency in Haryana in the year 2012.
Shree Cement, Jaiprakash Associates, JK Cement and JK Lakshmi Cement are the other cement manufacturers penalised by the CCI.
The regulator has held that these cement companies, through their impugned conduct, have engaged in bid-rigging that eliminated and lessened competition. The bid-rigging has been established from quoting of unusually higher rates in the impugned tender and determining different basic prices for supply of cement at the same destination through reverse calculation, among others.
In a release, CCI said "The anti-competitive conduct was re-affirmed through SMS exchanged and calls made amongst the officials of the cement companies.”
Shares of JK Lakshmi Cement (down 1%), Jaiprakash Associates (down 0.6%), Ambuja Cements (down marginally) and ACC (down marginally) are trading weak, while UltraTech Cement (up 1.5%), Shree Cement (up 1.2%) and JK Cement (up 0.6%) are trading higher.
Sify Editors @ 11:55 AM
Buy Crompton Greaves. Hold with a stop loss at Rs 55.
Sify Editors @ 11:25 AM
Buy Havells India (Rs 401). Add at declines for medium term.
Sify Editors @ 10:50 AM
Sharp fall in net profit, bad loans hurt Axis Bank
Axis Bank shares are down sharply Friday morning, with disappointing third quarter numbers prompting investors to indulge in some heavy selling at the counter.
More than the sharp drop in third quarter net profit, concerns over the bank's asset quality appear to be hurting investors. Axis Bank reported a sequential decline in slippages at Rs 4212 crore in the December quarter from Rs 8772 crore in the previous quarter. However, a substantial portion - Rs 1631 crore or more than 35% - came from outside the watch list the bank had given earlier. For the second successive quarter, the bank is seeing a rise in slippages from outside th watch list.
Axis Bank reported a net profit of Rs 579.6 crore for the quarter ended December 2016, down 73.3% from year-ago quarter. Net interest income in the third quarter increased 4.1% to Rs 4333.73 crore, from Rs 4162.06 crore in the third quarter of the previous financial year.
Net interest margin declined to 3.43%, from 3.64%, even as retail advances were up 19% (y-o-y) to Rs 1.49 lakh crore.
The bank's provisions for bad loans rose more than five-fold to Rs 3795.8 crore. Gross NPAs as a percentage of gross advances increased to 5.22% from 4.17% in previous quarter. Net NPAs stood at 2.18% at the end of December quarter, up from 2.02% a quarter earlier.
Sify Editors @ 9:50 AM
Buy Yes Bank if looking at medium term. Add small quantities at declines.
Sify Editors @ 9:15 AM
Sensex down 81 pionts after weak start; Axis Bank declines on disappointing results
Despite encouraging economic data out of China and the U.S., the Indian stock market is trading lower Friday morning, with investors treading cautiously ahead of U.S. President-elect Donald Trump's swearing-in ceremony.
Information technology and bank stocks are trading weak. Power stocks are also a bit lower. FMCG, healthcare, capital goods, automobile, metal and oil stocks are mostly flat. A few stocks from realty sector are edging higher.
The BSE benchmark Sensex, which declined to 27,196.20, is currently at 27,227.88, down 80.72 points or 0.3%. The Nifty50 of the National Stock Exchange is down 22.80 points or 0.27% at 8412.30, coming off a low of 8397.05.
In the forex market, the rupee opened at 68.05 against the U.S. dollar, up 7 paise from its previous close of 68.12.
Axis Bank is down 5.8% on weak results. The bank reported a 73% fall in net profit in the third quarter of current financial year compared to the corresponding quarter of the previous year. Gross NPAs rose to 5.22% in the third quarter, up from 4.17% in the preceding quarter.