Moneycontrol Bureau
Live Market Commentary
12:55 pm Opto Circuits India is down 20.61 percent after reporting a disappointing March quarter earnings after its fourth quarter consolidated net profit dropped 94 percent year-on-year to Rs 12.3 crore and net sales fell by 31 percent to Rs 457 crore.
12:49 pm Market update: The Sensex slips 293.20 points to 19922.20, and the Nifty is down 91.25 points at 6032.80.
12:40 pm Reaction to GDP:
Economist Haseeb Drabu said growth was unlikely to pick up this year, more so with the revised loan restructuring rules by the Reserve Bank of India . Already corporates were hugely over leveraged, and banks would be henceforth be cautious of extending further loans as they will have to make higher provisions in case the loans have to be.
He also said that one should not read much into the healthy bottomline growth in Q4 corporate earnings. That is because the topline is still decline, and the improvement in bottomline has been driven by cyclical factors and not structural factors.
12:35 pm Index loser: BSE Bankex, Oil & Gas, Auto, FMCG, Realty indices are dragging weak.
12:30 European market: European markets have opened on a weak note today.
12:15 am Earnings alert: GMR Infrastructure has turned profitable in the March quarter on one-time gain of Rs 1231 crore from sale of subsidiary. Sales climbed over 22 percent year-on-year to Rs 2571.07 crore on improved performance from airport and roads division. The stock jumped around 5 percent on the BSE.
12:10 pm Gainers: Sterlite Industries, Infosys, Dr Reddys Labs, Wipro and GAIL are key movers in the Sensex.
12:07 pm Expert reaction to GDP: Larsen & Toubro chairman A M Naik Friday said he does not expect any major capital investment for the rest of the year so as to make a difference to GDP growth.
"Capex has not started yet, because a huge amount of capacity is going under utilised in auto industry, consumer electronics. So new factories and new capital expenditure is yet to take off and I think there is a lot of surplus capacity, almost in every manufacturing activity or every product that is made,"
he said in an interview to CNBC-TV18.
Naik blamed imports from China as one of the factors responsible for unemployment and economic weakness in India.
The market has stayed weak even as growth in March quarter at 4.8 percent year-on-year was in-line with estimates. The Nifty fell to around 6050, dragged lower by rate sensitives and commodities. However, the cuts are limited for the midcap index.
The Sensex is down 227.75 points at 19987.65, and the Nifty is down 72.60 points at 6051.45.
Analyst Ramesh Damani feels global money will continue to chase India, however if rupee goes beyond 57, it could be disastrous.
The FY13 GDP has also come in line with government estimates of 5 percent, which is lowest in a decade.
