Overall for the next week, Nagji K Rita, Chairman & MD of Inventure Growth & Securities believes that traders need to remain extremely cautious. â€œIt is the derivative expiry next week as well the market setup is not very encouraging to build large positions. Sharp weakness in the banking sector has damaged the overall sentiment,â€ he adds.
The market remained lacklustre Friday with the equity benchmarks closing flat, but stocks that announced earnings swung sharply either side.
“Most of the results are still meeting expectations or are slightly beating expectations, expect private banking where for the first time there seems to be pressure building both at margins and asset quality,” Amisha Vora of Prabhudas Lilladher says.
She further says that the real pain in terms of results is still to come.
The BSE Sensex was up 21.44 points to close at 20149.85 while the Nifty is down 8.85 to end at 6029.20, but the BSE Midcap and Smallcap indices fell 0.6 percent each.
Accoring to Vora, going ahead it looks a little difficult to break that upper limit of the range, which was anywhere around 6100-6200. “The way macros are placed and the way now RBI has taken a stance, I think the upper limit will be capped for sometime,” she explains.
For the week, the Sensex gained 0.96 percent and the Nifty rose just 0.3 percent while the broader markets fell around 0.5 percent.
Overall for the next week, Nagji K Rita, Chairman & MD of Inventure Growth & Securities believes that traders need to remain extremely cautious. “It is the derivative expiry next week as well the market setup is not very encouraging to build large positions. Sharp weakness in the banking sector has damaged the overall sentiment,” he adds.
Technology, auto, oil & gas and telecom stocks gained while financials, metals, power and capital goods were under pressure.
TCS shares rallied 5 percent today, reacting to better-than-expected earnings. First quarter net profit grew by 16 percent year-on-year (6 percent quarter-on-quarter) to Rs 3,831 crore. Rajesh Gopinath, CFO confirmed that the outlook for FY14 is good as the company has a fantastic pipeline of deals.
Two-wheeler maker Bajaj Auto’s April-June quarter earnings matched expectations, even though volume sales declined. Net profit grew by 2.8 percent year-on-year to Rs 738 crore during the quarter.
Managing Director Rajiv Bajaj said his company had not lost any material market share on a year-on-year basis, adding that it had a 46 percent market share in the sports bike segment. His company is working on six new variations of the ‘Discover’ brand, he added. The stock gained 3.7 percent while its rival Hero MotoCorp jumped 2.6 percent.
Meanwhile, BHEL shares crashed 8 percent as concerns persist on additional order cancellations, sustained weak inflows, reduction in cash flow and margin pressure. Its rival Larsen & Toubro, which will declare its earnings on Monday, lost just 1 percent.
Housing finance major HDFC dropped over 2 percent after it reported lower-than-expected 17 percent growth in net profit at Rs 1173 crore for the first quarter Y-o-Y. Even its net interest margin slipped at 3.9 percent in Q1 versus 4.2 percent in previous quarter.
Shares of country’s largest private sector lender ICICI Bank, which is going to announce its results on July 31, fell 2.6 percent followed by SBI and HDFC Bank with 0.5 percent losses.
Among others, IT solutions provider Mastek plunged 10 percent as its net profit slipped 65 percent Q-o-Q to Rs 7 crore on forex loss and weak UK operations. Mindtree shares gained 3 percent on higher-than-expected earnings in Q1 while Hexaware Technologies gained 1 percent after its bottomline grew by 23.6 percent Q-o-Q to Rs 98 crore.
In banking space, UCO Bank lost 5.6 percent. State-run lender reported strong numbers with the first quarter net profit growing 41 percent rise year-on-year to Rs 511 crore, bolstered by MAT refund. The bank recognised minimum alternative tax (MAT) credit to the extent of Rs 147.4 crore for the quarter gone by. Adjusting for this refund, net profit growth would have been flat.
Sun Pharma and Sterlite Industries were down 3 percent each.
Gitanjali Gems crashed for the fifth consecutive week and has been hitting lower circuit for the 20th session today. It has shed 80 percent since June 18, 2013 from Rs 546.50 to current price of Rs 109.85 on the BSE.
SEBI and NSE have barred 26 entities and persons from trading in equity markets for six months. This is related to the prime broking case and the activity in Gitanjali gems. The banned entities and persons are linked to Gitanjali Gems and Prime Broking, and the list includes Gitanjali Gems' promoter Mehul Choksi.
Reliance Industries rose 0.67 percent ahead of earnings that will be announced today evening.
Declining shares outnumbered advancing ones by 1301 to 1027 on the BSE.
Indian rupee appreciated by 32 paise to 59.35 against the dollar.