SENSEX NIFTY
Jul 22, 2013, 04.38 PM IST | Source: Moneycontrol.com

Sensex flat; Q1 nos drag L&T, Reliance, Asian Paints down

C Jayaram, Joint MD of Kotak Mahindra Bank feels the market is unlikely to move dramatically over the next few weeks and will trade in a narrow range. He advises investors to go bottom fishing for specific stocks, but very cautiously.

15:50
Moneycontrol Bureau

It was another flat closing for the market Monday amid disappointing performance from largecap companies in Q1. The BSE Sensex gained more than 100 points in afternoon trade, but could not hold gains in late trade after poor numbers by L&T.

The 30-share benchmark gained 9.27 points to close at 20159.12, and the NSE Nifty rose 2.60 points to finish at 6031.80, but the BSE Smallcap Index fell 0.3 percent. Declining shares outnumbered advancing by 1224 to 1027 on the Bombay Stock Exchange.

C Jayaram, Joint MD of Kotak Mahindra Bank feels the market is unlikely to move dramatically over the next few weeks and will trade in a narrow range. He advises investors to go bottom fishing for specific stocks, but very cautiously.

According to him global cues and elections will provide the next big trigger for market but he sees fair amount pain still underlying in the economy. Jayaram stressed that it was unlikely that corporate earnings upgrade will happen over next two-three quarters.

Banking sector is unlikely to see further damage after the carnage experienced over last two weeks, capital goods companies will continue to languish due to delayed government decisions, he adds.

Financials, auto and technology stocks were gainers while losers were capital goods and oil & gas.

Larsen & Toubro (L&T) shares plunged 7.5 percent after engineering and construction major's net profit fell higher-than-expected 12.5 percent year-on-year to Rs 756 crore while analysts had expected it at Rs 991 crore,

In a press conference after results announcement, L&T says that situation is very challenging on the ground. Pressure on margins will continue in the coming quarters. EBITDA margin fell 60 bps to 8.5 percent in June quarter as against 9.1 percent in a year ago period due to industry pressures, but the company is hopeful of meeting sales and margin guidance in FY14.

Its rival BHEL tanked 7 percent. Amol Rao of Anand Rathi feels the state-owned engineering firm is facing headwinds of over capacity and slowdown in capex . He believes the stock is trading close to its lowest valuations.

Reliance Industries shares lost 1.6 percent post its earnings . CLSA maintained an outperform rating on the stock with a target price of Rs 1,000 while JP Morgan retained its neutral rating and said near-term earnings will stay muted.

Asian Paints, one of the largest paint companies in India, too posted weak performance in first quarter earnings. Consolidated net profit fell 1.7 percent year-on-year to Rs 283 crore as against analysts’ forecast of Rs 309 crore. Shares slipped 1.7 percent.

Wockhardt shares crashed 9 percent, after it received a warning letter from the USFDA for its facility at Waluj in Maharashtra for not meeting manufacturing norms. Wockhardt says that it has already initiated measures to resolve the same.

Ambuja Cements lost 4.7 percent after Credit Suisse downgraded the stock to neutral with a target price of Rs 205. "The stock is trading at its peak multiples and already pricing in a margin recovery in CY14 as part of potential merger synergies with ACC," Credit Suisse report said.
The brokerage house expects profit in June quarter to decline 25-35 percent year-on-year for Indian cement majors. Ambuja Cements could report a profit decline of 34 percent Y-o-Y.

Among others, ONGC and Tata Steel fell nearly 3 percent while HDFC, Sun Pharma and Mahindra & Mahindra gained 2.6-3.2 percent.

Country’s largest telecom player Bharti Airtel and private sector lender ICICI Bank climbed 1.6 percent each.

Globally, Asian markets closed higher today while European markets were flat to negative at 04:15 hours IST.

14:24
Wockhardt shares plunged 10 percent, after it received a warning letter from the USFDA for its facility at Waluj in Maharashtra for not meeting manufacturing norms. Wockhardt says it has already initiated measures to resolve the same.

Read More »

13:18
The market continue to trade near day's high with the Nifty holding the 6050 level in afternoon trade on buying in technology, banks and auto stocks, but the selling in oil & gas stocks capped the upside.

Read More »

12:14
Equity benchmarks extended gains in noon trade with BSE Sensex rising above 100 points as banks, IT, auto and realty indices rose 1 percent each.

Read More »

11:29
Wockhardt shares tanked 5 percent as the pharmaceutical company received a warning letter from US FDA over the Waluj plant for not meeting manufacturing norms. In May this year, the US FDA had issued an import alert on the Waluj facility that makes injectables and solid dosages.

Read More »

10:20
"Ambuja Cements is trading at its peak multiples and already pricing in a margin recovery in CY14 as part of potential merger synergies with accounts. We expect June quarter profits to decline 25-35 percent Y-o-Y for Indian cement majors," Credit Suisse report said.

Read More »

09:21
The Sensex is down 9.63 points at 20140.22 while the Nifty slips 4.20 points at 6025.00. BHEL and Reliance Industries are dragging the indices.

Read More »

ADS BY GOOGLE

video of the day

Retail buyers, MFs are back; midcaps hold promise: Ambit

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.