After a weak start and a subsequent move up north, the market retreated again this morning, and is currently trading flat, amid somewhat lackluster moves by investors. Quarterly results and stock specific news are dictating the trend for now.
Realty, power and metal stocks are a bit steady. Select stocks from FMCG and automobile sectors too have moved higher. Bank, pharmaceuticals, capital goods, oil and information technology stocks are mostly subdued. While not much buying is happening in the midcap space, quite a few small cap stocks have surged higher on strong buying support.
Tata Power is trading 1.5% up at Rs 103.60. The company announced that it has acquired a 26% stake in Indonesian miner PT Baramulti Sukses Sarana Tbk (BSSR). The acquisition, done through Khopoli Investments Ltd, a wholly-owned subsidiary of Tata Power, would give the power generator access to a part of the one billion tonne coal reserves held by BSSR and its subsidiary PT Antang Gunung Meratus.
Hindalco, Tata Steel, Jindal Steel & Power and Sun Pharmaceutical Industries are up 1% - 1.2%. Mahindra & Mahindra, Maruti Suzuki, Bajaj Auto, Bharti Airtel, Dr Reddy's Laboratories and Cipla are up with modest gains.
ONGC is trading nearly 2% down due to sustained selling pressure following a significant drop in the company's earnings in the July - September quarter. Hero Motocorp is down 1.1%. Infosys, Sterlite Industries and ICICI Bank are also trading weak.
Godrej Industries Ltd shares are down more than 3% at Rs 310 due to weak results. The company has posted a net profit after taxes, minority interest and share of profit of associates of Rs 76.62 crore for the quarter ended September 30, 2012, as compared to a net profit of Rs 92.82 crore it had posted in the corresponding quarter last year.
United Spirits is trading sharply higher once again. According to reports, liquor major Diageo and Vijay Mallya's United Spirits are widely believed to have clinched a transaction giving the British company complete control over India's largest spirits producer.
As per the terms of the deal, Diageo will buy more than 25% of United Spirits in three stages, including the purchase of some stake held by Vijay Mallya. Diageo will invest some money in the company and make an open offer. The British company is expected to pay Rs 1,500-1,600 per share. Diageo will pay around $2 billion for buying a 51% stake.
United Breweries Limited has posted a 75% surge in net profit to Rs 34.2 crore for the second quarter of Fy13 compared to the corresponding quarter in the previous fiscal. The topline surged by 18% to Rs 873 crore.
Aditya Birla Nuvo is up 5% to Rs 965 following the company reporting a sharp 42% year-on-year jump in its consolidated net profit at Rs 304 crore for the quarter ended September 30 on the back of good growth across all its business segments. Revenues grew 12% at Rs 5,992 crore on y-o-y basis.
Manappuram Finance is down sharply after the company reported a 20% year-on-year drop in net profit at Rs 108 crore for the September 2012 quarter, due to lower income from operations and increase in finance cost.
According to the data released by the Society of Indian Automobile Manufacturers, car sales in India rose in October for the first time in three months, due mainly to festive season demand. Automakers sold 172,459 cars in October, up 23.1% from a year earlier, the data showed.
Sales of motorcycles rose 6.7% to 936,122 vehicles. Truck and bus sales stood at 66,722 vehicles during the month, compared with 62,013 a year earlier.