03:35 pm Market closing
The market has
ended on an uptrend. The Sensex was up 321.32 points or 1.2 percent at 26429.85
and the Nifty was up 99.70 points or 1.3 percent at 7879.40. About 1634 shares
have advanced, 1212 shares declined, and 111 shares are unchanged.
ONGC, Hindalco,
Coal India, Axis Bank and Tata Motors are top gainers in the Sensex. Among the
losers are Wipro, Infosys, TCS, ITC and Reliance.
03:10 Earnings
Liquor maker
United Spirits has posted a net loss of Rs 55.6 crore in the quarter ended June
2014 as against profit of Rs 118.13 crore in same quarter last year on account
of exceptional loss.
The company has
made a provision of Rs 42.7 crore for diminution in value of investment in
subsidiaries, which resulted in a loss on bottomline front.
Numbers were
lower than analysts' expectations. According to the average of estimates of
analysts polled by CNBC-TV18, profit was expected at Rs 100 crore on revenue of
Rs 2,340 crore for the quarter.
Revenue declined
11 percent to Rs 1,924 crore in April-June quarter of current financial year
2014-15 compared to Rs 2,161 crore in the year-ago period.
02:45 pm Results impact
Investors added
more shares of Axis Bank on Monday as brokerage houses raised target price on
the stock after the company's second quarter earnings met street expectations.
The stock rallied nearly 4 percent intraday.
India's third
largest private sector lender's net profit climbed 18.3 percent year-on-year to
Rs 1,611 crore led by higher other income and net interest income but impacted
by higher provisions. The CNBC-TV18 poll had expected it at Rs 1,612 crore for
the quarter.
While maintaining
outperform rating on the stock, Credit Suisse raised earnings per share
estimates by around 2 percent on higher-than-expected net interest margin.
"With better-than-expected NIMs and pick-up in fees, pre-provisional
profitability has improved. Valuation is inexpensive at 1.8x book, for 18
percent return on equity and 21 percent EPS CAGR," it elaborated.
02:20pm Gainers and losers
ONGC maintained its uptrend, up over 6 percent
on gas price hike followed by Tata Motors, HDFC, ICICI Bank, Larsen and Toubro,
Axis Bank, State Bank of India, Hindalco Industries and Gail India with 2-5
percent gain.
However, Infosys
(down 0.8 percent), Wipro (down 1.5 percent) and TCS (down 0.3 percent) were
under pressure in afternoon trade.
02:00pm
The market maintained its morning gains with the Sensex rising 328.89 points or
1.26 percent to 26437.42 and the Nifty climbing 97.15 points or 1.25 percent to
7876.85.
Advancing shares
ountumbered declining ones by a ratio of 1593 to 1042 on the Bombay Stock
Exchange.
Ridham Desai,
Morgan Stanley says equities look appealing because of the potential earnings
upside. "India's stellar performance this year has been driven by hopes of
reform momentum following strong election results, a likely turn in the
economic cycle and benign global conditions," he adds.
According to him,
even as the market looks fair or better than fair on valuations relative to
bonds and emerging markets, an upturn in the earnings cycle will likely support
valuations. Over the coming two years, he sees earnings compounding at 19.8
percent and 15.5 percent for the Sensex and broad market, respectively.
UltraTech Cement
rallied over 5 percent following higher-than-expected earnings in
July-September quarter. Net profit shot up 55.24 percent year-on-year to Rs 410
crore on strong topline, operational and other income, and lower tax rate but
impacted by higher finance, power and freight cost. Revenue during the quarter
grew by 20 percent to Rs 5,429 crore driven by higher cement sales volumes.
CLSA maintains a buy on the stock with a revised target price of Rs 3150.
Jindal Steel
& Power plunged over 7 percent as sources say CBI has registered a fresh
case of alleged cheating and corruption against the company, in connection with
its probe into coal blocks allocation probe.
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