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Last Updated : Feb 14, 2014 11:10 AM IST | Source: Moneycontrol.com

Nifty holds 6000 amid consolidation; banks, cap goods weak

Telecom stocks like Bharti Airtel and Idea Cellular rallied 3 percent each after Reliance Jio did not win 900 MHz spectrum.


Moneycontrol Bureau
Live Market Commentary


10:50am FII View


Timothy Moe of Goldman Sachs said look for large caps with positive track record. He expects Q4 to remain a weak quarter for earnings.

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One strategy he recommends to investors for the current reporting season is to focus on large cap stocks with a track record of earnings beats. "M&M features among our buy-rated names in India," he added.


10:40am Sun Pharma on buyers' radar


Shares of Sun Pharma rose 0.7 percent after December quarter results. Driven by strong growth in US business and Taro's performance, the drug major’s net profit surged 73.7 percent and revenue grew 50.5 percent (year-on-year) during October-December quarter.


The stock has been on buyers' radar after Taro announced strong third quarter performance with record margins. Sun Pharma currently holds 66 percent stake in the company.


Meanwhile, Sun Pharma has also received US FDA for its Abbreviated New Drug Application (ANDA) to market a generic version of Temodar, Temozolomide Capsules, 5 mg, 20 mg, 100 mg, 140 mg, 180 mg and 250 mg.


Temozolomide Capsules are indicated for treatment of adult patient with newly diagonesed glioblastoma multiforme concomitantly with radio therapy.


Credit Suisse sees an upside of 5 percent at Rs 716, with a rating of outperform. UBS maintains neutral rating on the stock. The brokerage feels management of Sun Pharma needs to continue to do M&A to meet high market expectations.


10:30am Market Expert


Nilesh Shah, MD & CEO, Axis Capital expects markets to remain volatile but does not see any substantial correction from the current levels, at least until the election results get announced. Shah feels the emerging markets (EMs) redemption could be a function of the Fed tapering or risk aversion prevailing in the global investors.


Shah says FII selling has accelerated over the last few weeks, mostly by long-only funds. However, he does not expect any massive redemption from FIIs. “We think asset quality pressure is likely to remain on the higher side,” he told CNBC-TV18.


Shah is long on private sector banks and underweight on PSU banks. For IT, he feels valuations are a bit high but not stretched.


For next week, he says the market will watch how the fiscal deficit target is met in Vote-on-Account.


10:20am SBI to announce Q3FY14 earnings


India's largest lender State Bank of India (SBI) is set to announce its third quarter (October-December) earnings on Friday. The street will watch out for profitability and asset quality of the bank, which both are expected to weaken during the quarter, analysts say.


It has one of the highest non-perfoming assets (NPAs) among large sized peers. Another factor to watch out for is its comments on QIP. The bank raised Rs 8,032 crore through qualified institutional placement in January.


According to CNBC-TV18 poll, analysts expect profit after tax to fall 26 percent to Rs 2,500 crore and net interest income to decline 14 percent to Rs 12,669 crore compared to a year-ago period.


The decline in PAT, which has been continued since Q4FY13, will be on account of higher wage and bad loan provisions. In September quarter, PAT was down 35 percent to Rs 2,375 crore with provisions spiking 66 percent to Rs 3,029 crore.


10:10am IOC talks to CNBC-TV18


IOC reported third quarter net loss at Rs 961.5 crore versus profit of Rs 3,332 crore year-on-year.


PK Goyal, Director-Finance, IOC says the company’s loss can be attributed to lower under-recoveries. The company’s refinery margins stood at USD 4.97/barrel, higher than last year’s USD 3.11/barrel. He expects to maintain FY14 gross refinery margins, or GRMs, at USD 4-5/bbl.


IOC has total under-recovery of Rs 8,800 crore. "If we get 100 percent compensation our profit would have been Rs 6,500 crore before tax," Goyal says.


10:00am The Nifty continued to hold the 6000 level amid consolidation supported by telecom and Tata group stocks. However, the fall continued in banking & financials, FMCG and capital goods stocks.


The Sensex rose 25.46 points to 20,218.81, and the Nifty climbed 3.30 points to 6,004.40. About 768 shares have advanced, 733 shares declined, and 73 shares are unchanged.


Tata Motors gained nearly 2 percent on value buying after strong January sales numbers by Jaguar Land Rover.


Telecom stocks like Bharti Airtel and Idea Cellular rallied 3 percent each after Reliance Jio did not win 900 MHz spectrum.


Shares of Reliance Industries, TCS and Infosys advanced over 0.6 percent.


However, banking & financials continued to see selling pressure. HDFC, ICICI Bank, HDFC Bank and State Bank of India fell 0.2-1 percent.


BHEL lost 2.6 percent, in addition to 3.5 percent. The company has been under pressure due to its order book concerns.


Shares of ITC and HUL are marginally weak. Sesa Sterlite slipped 1.5 percent on profit booking.



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First Published on Feb 14, 2014 10:00 am
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