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Oct 15, 2013 11:15 AM IST | Source:

Sensex extends losses; ICICI, HDFC Bank, ITC drag

Citi Investment is not very upbeat about the Indian market currently. John Woods of Citi Investment feels that the market is still looking for important structural reforms.

Moneycontrol Bureau
Live Market Commentary

10:55am Buzzers

Andhra Pradesh Paper Mills shares tumbled 4 percent as the company reported a loss of Rs 45 crore in Q2 as against a profit of Rs 7.5 crore in a year ago period. However, CMC rallied 4 percent after a 15 percent sequential improvement in revenues and 27 percent growth in profit after tax in the quarter gone by.

NIIT Technologies (up 1.65 percent) and Sintex (down 0.8 percent) will report their earnings today. Sintex is expected to report subdued set of results with a revenue growth of 3.5 percent, margin contraction of 80 bps and profit degrowth of 8.7 percent. NIIT Tech is expected to report better numbers with a 9 percent sequential improvement in revenues.

IndusInd Bank lost 4 percent after Bank of America Merrill Lynch retained its underperform rating on the stock, but raised target price to Rs 400 from Rs 380 earlier. Citi has a sell rating on the stock with a target price of Rs 360.

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10:45am Market Update

The market extended losses after shedding early trade gains. The Sensex is down 97.96 points at 20509.58, and the Nifty is down 35.85 points at 6076.85.

Declining shares outnumbered advancing ones by 1005 to 660 on the Bombay Stock Exchange.

Capital goods majors L&T and BHEL too lost its early gains, falling more than a percent on profit booking.

However, Wipro remained in bull grip with the stock rising nearly 2 percent. The company will declare its September quarter earnings on October 22.

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10:35am Stocks In News

TCS shares added another 0.6 percent gains ahead of its September quarter earnings today. The stock has rallied 78 percent year-to-date. Analysts expect a solid set of earnings from the company with a dollar revenue growing at 5.5 percent and margins expanding around 230 basis points sequentially to over 29 percent due to currency depreciation.

Reliance Industries rose just 0.26 percent post its second quarter results. JP Morgan has upgraded the stock to overweight and upped the target price to Rs 1,000 a share from Rs 800/share earlier as it remained positive on company's core business expansion strategy while Macquarie maintained its outperform rating on the stock with a target price of Rs 1,100/share.

Fortis Healthcare shares gained 4 percent as the company has confirmed sale of its stake in quality healthcare medical services to British medical services group Bupa for USD 355 million. This is part of its efforts to reduce debt by selling some assets.

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10:23am The market shed some of its early gains as the Sensex fell below the 20700 level, dragged down by private sector banks and FMCG stocks.

The Sensex is up 30.38 points at 20637.92, and the Nifty is up 9.95 points at 6122.65.

Citi Investment is not very upbeat about the Indian market currently. John Woods of Citi Investment feels that the market is still looking for important structural reforms.

"We have started to see flows returning back to EM in general and India in particular but a number of bodies are cautioning that unless India follows through some fairly substantive and meaningful structural reforms, it will not be able to depend on foreign direct investment (FDI) to fund its external deficit," John Woods elaborated.

HDFC Bank and ICICI Bank are the laggards, falling 1.5 percent each. HDFC Bank will report its second quarter earnings today; according to a CNBC-TV18 poll, analysts on an average expect profit after tax of the bank to rise 26 percent on yearly basis to Rs 1,963 crore in the quarter gone by.

FMCG majors ITC and Hindustan Unilever declined 0.6 percent each while commercial vehicle maker Tata Motors lost more than a percent.

Aditya Birla group stocks are under pressure as CBI filed FIRs against Aditya Birla Group Chairman Kumar Manglam Birla, Nalco, Hindalco and former secretary coal PC Parakh.

Hindalco Industries and Grasim Industries slipped nearly 2 percent while Aditya Birla Nuvo lost 4 percent.

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