Sensex trims losses; State Bank of India, Tata Power up 4%

12:14

Moneycontrol Bureau
Live Market Commentary
The market trimmed early losses in noon trade, but the domestic currency remained weak against the US dollar. Banks, oil & gas, metals and pharma stocks led the support.

The BSE Sensex is down 42.66 points at 18690.38, and the NSE Nifty is down 14.65 points at 5527.60.

India continues to grapple with macro economic problems like high interest rate, inflation, wide current account deficit and barring monsoons, there is no other positive cue for the market as of now, says Nirmal Jain, chairman, IIFL.

Though Jain is not too pessimistic on the market from current levels , but he cautions that given the way macros are shaping up, the market continues to face near-term headwinds and there is a threat of the Nifty falling below the key support of level of 5,500. In the best case scenario, Nifty can go back to 6000 level, he added.

Country's largest lender State Bank of India gained 3.6 percent on short covering while its rival ICICI Bank is up one percent.

Morgan Stanley cut its target price on SBI to Rs 1,200 a share from Rs 1,525. The brokerage house also reduced earnings per share estimates by  13-20 percent in FY14e/FY15e.

Canara Bank rallied 3 percent despite Morgan Stanley reduced target price to Rs 170 a share from Rs 290 on the stock. "Stock of impaired loans could see more stress," Morgan Stanley report said.

Tata Power , which was the top loser with 15 percent loss in previous session on poor Q1 earnings, bounced back with 4 percent gains.

14.03 | 0 komentar | Read More

Rupee could slide more if fresh measures are not taken: BoA

Aug 07, 2013, 11.40 AM IST

In an interview to CNBC-TV18, Jayesh Mehta, Bank of America spoke about perilous fall in rupee and possible measures from RBI to curb same.

In an interview to CNBC-TV18, Jayesh Mehta, Bank of America spoke about perilous fall in rupee and possible measures from RBI to curb same.

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Economy downgrade to put pressure on 5500 range: Edelweiss

Aug 07, 2013, 12.28 PM IST

In an interview to CNBC-TV18, Nischal Maheshwari, Edelweiss Financial Services spoke about market.

In an interview to CNBC-TV18, Nischal Maheshwari, Edelweiss Financial Services spoke about market.

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Australia central bank cuts rates to 2.5%

Australia's central bank on Tuesday cut its main cash rate a quarter point to a record low of 2.5 percent, a widely expected move given a cloudy global outlook, a tepid domestic economy and tame inflation.

Also read: RBI Credit Policy: Leaves key rates unchanged, reflects no hawkish stance

The Reserve Bank of Australia (RBA) made the announcement following its monthly policy meeting. Analysts in a Reuters poll had been unanimous in expecting a rate cut this week.

14.02 | 0 komentar | Read More

Sony rejects proposal to spin off entertainment unit

Japan's Sony Corp rejected on Tuesday a proposal from activist shareholder Daniel Loeb to spin off a part of the electronics company's entertainment business.

Loeb's Third Point LLC hedge fund proposed in May that Sony sell as much as a fifth of its money-making entertainment arm -- movies, TV and music -- to free up cash to revive the electronics business.

Also read: Panasonic Q1 net up 66% in shift from consumer electronics

"Sony's board of directors has unanimously concluded that continuing to own 100 percent of our entertainment business is the best path forward and is integral to Sony's strategy," the company said in a letter to Third Point.

Loeb, who owns around 7 percent of Sony through shares and cash-settled swaps, has called the entertainment division poorly managed.

Sony's board was expected to reject Loeb's proposals, the Nikkei newspaper said last week, with directors arguing Sony could compete better by maintaining ties with the entertainment arm of the business.

Sony has long been a pillar of Japan Inc and a pioneer in the electronics industry. But it has lost market share - and its innovative edge - to aggressive foreign rivals such as South Korea's Samsung Electronics Co Ltd and Apple Inc as they churn out blockbuster products.

14.02 | 0 komentar | Read More

Self-confidence key to overcome poverty: Rahul

Hailing the role of self-help groups in advancement of marginalised section of society, Congress vice-president Rahul Gandhi today said they provide the poor with "self-confidence to overcome poverty". The Congress leader made this comment while participating in a discourse on 'Culture, Deepening Democracy and Most Marginalised Communities', organised here by noted social scientist Badri Narayan.

Also read: Poverty line low, need to revisit methodology: Ahluwalia

"I understand the weaknesses of our system. I will try my best to help the people but unless and until the voice of the marginalised comes out from within, nothing can be done," Narayan quoted Gandhi as having said at the event which was organised at the G B Pant Social Science Institute on the outskirts of the city.

"Poverty is just a state of mind. It does not mean the scarcity of food, money or material things. If one possesses self-confidence, then one can overcome poverty," he said. In this context, Gandhi cited the example of a poor woman in Amethi, who redeemed her self-esteem by getting associated with self-help group Rajiv Gandhi Mahila Vikas Pariyojana. The Congress vice-president, who was accompanied by the party's national general secretary Madhusudan Mistry, also interacted with people from remote villages of Allahabad and other neighbouring districts.

He assured them "my one and only political aim is that I want to tune my ears to the voice of the poor and the marginalised". Earlier, while inaugurating a branch of city-based Kamla Nehru Memorial Hospital in the district's trans-Yamuna region, Gandhi expressed concern over "increasing money-mindedness" among medical practitioners and urged doctors to take a keen interest in serving in rural areas.

Meanwhile, the visit of Gandhi here, the first after he was elevated as the Congress vice-president, was marked by protests from supporters of the BJP at a number of places. Activists of BJP's youth wing Bharatiya Janata Yuva Morcha (BJYM) and the Congress students' wing NSUI came to blows near the G B Pant Institute.
 
BJYM activists had been raising slogans against the UPA government at the Centre and were attacked by NSUI activists when some of them tried to jump in front of Gandhi's vehicle waving black flags, police said, adding that two persons have been rounded up in this connection.

14.02 | 0 komentar | Read More

More pain seen for BHEL, avoid it; buy LT: Kotak Inst

Lokesh Garg of Kotak Institutional Equities says BHEL's poor Q1 numbers have not come as a surprise. He says BHEL's backlog of around Rs 1,10,000 crore with three year execution track record would give it revenue of around Rs 35,000-40,000 crore in the next few years.

"This revenue decline was anticipated, just that it has panned out this quarter and panned out strongly," he told CNBC-TV18.

The bad patch for BHEL may continue due to its weak order inflows trajectory, he added. He is looking at FY14 earnings of around Rs 15 on the stock. He advises investors to stay away from BHEL, atleast for now.

He is also negative on Punj Lloyd . One can buy L&T with a two year perspective.

Below is the verbatim transcript of Lokesh Garg's interview on CNBC-TV18

Q: How disappointed or surprised were you with the numbers of Bharat Heavy Electricals (BHEL)?

A: To some extent numbers could have been anticipated. BHEL's backlog essentially of something like Rs 1,10,000 crore with three year execution track record would give it a revenue line of somewhere around Rs 35,000-40,000 crore in the next few years and to that extent this revenue decline was anticipated, just that it has panned out this quarter and panned out strongly, but it is not something which is completely a surprise to us.

Q: Do you believe that things will pick up in Q2 and Q3 or it looks like this is the track for the next couple of quarters at least?

A: Our outlook is that this bad patch may actually continue. This is essentially related more to order inflows trajectory. I think the order inflow trajectory continues to remain weak on all the issues that we know in the power sector and until and unless that presumes this performance on execution front also continues.

Q: How much have you brought down your FY14 earnings expectations by now after these numbers?

A: We are now looking at FY14 earnings of something like Rs 15 on the stock. The stock would have delivered something like Rs 28-29 at the peak, so there is a significant earnings correction that has panned out in the stock relative to revenues, relative to margins coming down as fixed costs do not get covered fully at lower revenue line levels.

In spite of whatever EPS or valuations one may look at one would want to wait out for order inflows recovery to start panning out at least a little bit before one starts to take a call on BHEL's stock.

Q: So even at Rs 130 you would not be recommending a buy to your clients?

A: Considering we are looking at this quarterly performance for the next couple of quarters or maybe almost year, year and half, we would not advise jumping into BHEL right away.

Q: Did you manage to take a look at the Punj Lloyd numbers since you track the sector where sales seemed to be stabilising, the run order over the last couple of quarters?

A: Yes, I have had a look. Punj Lloyd numbers essentially on operating level at least at revenue and EBITDA levels seem to be fine. Punj Lloyd has had very high working capital which is what puts us into a negative territory in terms of recommendation on the stock.

Q: What are you telling your clients about Larsen and Toubro (L&T)? Post those results the stock has had a very meaningful correction, in fact a derating. Do you see more price destruction?

A: I think what is happening to L&T is essentially symptomatic of the rest of the sector as well. If you look at Thermax results, Siemens results, Cummins India results everybody is having the same problem.

L&T is maybe better off because the other companies have had 10-15 percent decline, L&T still had a revenue growth of about 5 percent which is possibly also driven by the fact that L&T has managed the cycle better in terms that it has got business in areas which are less dependent on industrial and infrastructural capex, essentially real estate and now they have started to get meaningful business from Middle East as a geography as well.

So for L&T from a two year perspective we are at least advising clients to add the stock out here. We believe valuations are reasonable and to that extent giving credit for the company to have managed it well so far. However, this does not deny the fact that essentially L&T also operates in the same environment in which these other stocks are operating and to that extent, the stock could see near-term downside or negative surprise in operating performance in the next couple of quarters.

14.02 | 0 komentar | Read More

Buy Titan Ind, Arvind; sell Canara Bank, HPCL: Mukadam

Aug 05, 2013, 12.28 PM IST

Shahina Mukadam of Varun Capital recommends buying Titan Industries with a target of Rs 297 and advises selling Canara Bank.

Like this story, share it with millions of investors on M3

Buy Titan Ind, Arvind; sell Canara Bank, HPCL: Mukadam

Shahina Mukadam of Varun Capital recommends buying Titan Industries with a target of Rs 297 and advises selling Canara Bank.

Like this story, share it with millions of investors on M3

Buy Titan Ind, Arvind; sell Canara Bank, HPCL: Mukadam

Shahina Mukadam of Varun Capital recommends buying Titan Industries with a target of Rs 297 and advises selling Canara Bank.

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In CNBC-TV18's popular show Bull's Eye, Shahina Mukadam of Varun Capital shares her trading strategies for the day.

One may buy Titan Industries with a target of Rs 297. The last week results were pretty good, very strong growth in the jewellery business, almost 47 percent and this was driven actually by lower gold prices. I think this positive growth should continue going forward. The number of stores have gone up substantially. The company has almost 1000 stores. With valuation of around 30 times 2014 earnings it looks like there is some upside still left in the stock.

One may buy Arvind with a target of Rs 77. The relaxation norms for FDI are positive for the company. The company has many tie-ups, partnership with very strong global brands and it benefits two ways. It can either capitalize on some of its tie-ups if the partner wants to work out or there can be a good equity infusion and the brand can be strengthen and good growth by expansion of the number of stores and investments that goes into the brand. In terms of valuation it is about seven times 2014 earnings which is not expensive.

One may sell Canara Bank . The numbers reported on the weekend were very disappointing. Just like other banks, most of the other PSU banks numbers showed a deterioration in asset quality, the net non performing assets of Canara Bank have jumped to almost 2.5 percent despite doubling in provisions. In terms of revenue a lot of revenue growth was cushioned by the jump in treasury income which actually increased by almost 10 times over the previous corresponding last quarter to a level of Rs 510 crore. This is not likely to continue into the next quarter.

One can sell Hindustan Petroleum Corporation (HPCL). It is a sell with a target of Rs 182, high oil prices coupled with weak rupee is likely to continue to show stress on the balance sheet of downstream oil companies like HPCL. While the government has allowed increase in price of diesel and petrol I don't think that is sufficient. The IOC offer for sale is likely to put some pressure in terms of any upside that HPCL could have in the shorter term.

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14.02 | 0 komentar | Read More

Nifty volatile; ITC Reliance lead, Coal India soars 5%

12:28

Moneycontrol Bureau
Live Market Commentary
The market is flat with a positive bias with the Nifty hovering around 5700 led by strength in FMCG, technology and metals stocks. Reliance Industries and ICICI Bank gained nearly 1.5 percent while ITC surged 2 percent.

The BSE Sensex is up 45.75 points at 19209.77, and the NSE Nifty is up 13.10 points at 5691.

Delhi takes centre stage as the parliament's monsoon session kick started today. In what could be another stormy session, 44 key bills will be on the agenda, which includes the Food Security Bill, Pension Bill, Insurance Bill and the Land Acquisition Bill.

Buying interest is seen in Jet Airways, which gained 2 percent. Sources indicate that SEBI has cleared the Jet-Etihad deal and it is now up to the government to clear it.

Jet has slashed ticket fares to as low as Rs 1777 for domestic air travel on select routes.

Meanwhile, after giving up 72 percent last week, Financial Technologies witnessed a solid rebound today, gaining 29 percent. In the latest development over the weekend, National Spot Exchange (NSEL) said 13 trading members will pay 5 percent of their outstanding obligations, a total of around Rs 3,100 crore, weekly, and eight members with contracts amounting to almost Rs 2,200 crore would settle outright. The street will watch out for further details in a press conference slated for later today.

14.02 | 0 komentar | Read More

Modi lovers should go to Gujarat, says Cong minister's son

Under fire over his remarks about Gujaratis living in Mumbai, Swabhimaan Sanghatana chief Nitesh Rane today said his statement was not against all Gujaratis, but directed at only those amongst them who felt that Gujarat under Narendra Modi was doing better than Maharashtra.

Also read: I don't want Narendra Modi as my PM: Amartya Sen

Nitesh, son of senior Congress leader Narayan Rane, said his comments were aimed at those who favoured the Gujarat Chief Minister's development model.

"I only said that those who feel Modi is doing a good job can move there," he told reporters.

"My remarks were not aimed at all Gujaratis but only at those who feel there is more development in Gujarat," he said.

"I have taken a political stance... I have stated clearly that people living in Mumbai who feel that Gujarat is developing more than us (Maharashtra), or those who feel Modi is developing Gujarat more than us, why don't they go there," Nitesh said.

"I didn't say all Gujaratis are like that. I didn't say we will drive (Gujaratis) out (of Mumbai)," he said. As to his tweet about Gujarati housing societies favouring vegetarian residents, he said, "I said there are many housing societies in Mumbai which don't allow non-vegetarian (people)."

"Veg skies, Veg hospitals, Veg housing societies. Soon Veg Mumbai! Either Gujjus go back to Gujarat or they turn Mumbai into Gujarat... Red alert," Nitesh had earlier said in his controversial tweet.

Asked if the remarks had been made by him as a Congress leader, Nitesh said, "I said this as a son of the soil of Maharashtra."

When pointed out that he was the son of a senior Congress minister, the 31-year old Nitesh said, "what has that got to do with it".

"There are a lot of Gujaratis staying here who have pride in Mumbai and Maharashtra," he said.

"These tweets were posted by me last month," said Nitesh, who in July had also tweeted a crude caricature of a bare-bodied man with a placard over it that read "Hindu Rashtrawadi (nationalist)," said.

Accompanying the cartoon was a line written in Marathi, which roughly translated, said: "Good the burqa of development is torn."

The statement was a veiled jibe at two of Modi's recent statements: One in which he said he was a "Hindu nationalist", and another in which he refers to the Congress as "hiding behind the burqa of secularist".

14.03 | 0 komentar | Read More