Will M&M, Sun Pharma earnings help Nifty gain momentum?
A CNBC-TV18 poll sees M&M posting 30% revenue growth backed by a steady 11% growth in volumes. The company is expected to post higher realisations due to sequential improvement in product mix.
February 08, 2013 / 10:26 IST
The Sensex fell on Thursday, to its lowest close in one-and-a-half months, led by a decline in banking stocks, after government estimates showed India's FY13 growth could be worse than expected and the Nifty cracked below 5,950 yesterday.
Earnings Central A CNBC-TV18 poll sees M&M posting 30% revenue growth backed by a steady 11% growth in volumes. The company is expected to post higher realisations due to sequential improvement in product mix. Sun Pharma is seen posting 25% profit growth on the back Taro numbers. GMR Infrastructure, BEML & BGR Energy are among the other key results expected today. In earnings action, Cognizant beats its guidance as fourth quarter revenues rise to a better-than-expected USD 1.95 billion and net profit surges 16 percent. The company beats forecasts for the full year as well.The divestment roadmapThe mega NTPC divestment fetches the government Rs 11,500 crore, leaving the government near 73 percent of its Rs 30,000 crore divestment target. Work on the FY14 divestment pipeline begins and issues are likely to start from the first quarter with Coal India, Neyveli Lignite, Nuclear Power Corporation, and Hindustan Aeronautics.Asian markets started off on a mixed note today after European Central Bank President Mario Draghi reiterated risks still facing the euro zone economy, turning investor sentiment more cautious ahead of Chinese trade data for January due out during the session.Meanwhile, the US stocks finished well off their earlier lows in volatile trading as techs recovered, but brewing worries over Europe kept a damper on gains. The CBOE volatility index rose to close above 13.In economic data, weekly jobless claims fell 5,000 last week to a seasonally adjusted 366,000. Economists expected a reading a relatively higher reading of 368,000.European equities fell to 2013 closing lows amid persistent concern over the region's economic weakness.ECB and BoE leave key rates unchangedThe ECB decided to leave its main interest rate unchanged at 0.75 percent. The ECB president Mario Draghi, said that economic weakness in the euro area will continue in the early part of the year but later in 2013 economic activity should start to recover. Talking about inflation, Draghi said that the ECB expected inflation to fall below 2% in the coming months.The Bank of England also decided to maintain status quo, leaving rates and the quantitative easing programme unchanged. However, the BoE said in its policy statement that it was ready to provide additional monetary stimulus if required.In the currency space, the euro slipped to two-week lows after the European Central Bank chief said he would monitor the impact of the currency's strength. The dollar index moved higher above 80In the commodity space, Brent crude edged higher after Iran rejected calls for direct talks with the United States, while US crude prices tumbled on concerns about growing domestic stockpiles in the Midwest.Gold prices too held firm after comments by European Central Bank president Mario Draghi ignited renewed economic fears over the euro zone. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
