Moneycontrol Bureau10:59 am Market Update: Benchmark indices remained under pressure with the Sensex falling 203.71 points to 27887.71 and the Nifty down 54.90 points at 8636.40.However, the market breadth was positive as about 1259 shares advanced against 1002 declining shares on the BSE.
10:41 am Poll: Pharma company Cadila Healthcare is expected to report a 2.3 percent growth in second quarter profit at Rs 399.83 crore and 0.7 percent rise in revenue at Rs 2,477.2 crore on yearly basis, according to average of estimates of analysts polled by CNBC-TV18.
Operating profit is expected to fall 7.1 percent year-on-year to Rs Rs 577.1 crore and margin may contract 200 basis points to 23.3 percent due to adverse business mix.
Analysts expect sequential pick up in revenue on account of company launching ulcerative colitis drug Asacol HD during the quarter as an authorised generic in US markets.
Analysts are divided on growth in US formulations. Some analysts expect US business to grow around 3-5 percent YoY on account of sales of Asacol HD whereas some expect flat to decline YoY on lower sales of HCQS, an anti-malarial drug and slower US approvals.
10:20 am Outlook: Global events like the US Presidential elections and Federal Reserve rate hike are important for foreign inflows and the effect lasts for 2-3 days, says Krishna Kumar Karwa, Managing Director and Chief Financial Officer Of Emkay Global Financial Services.But he says what matters the most are local factors for the market with recent rise in local inflows into the market. In the long-term, he sees the banks' non-performing assets' (NPA) situation and the implementation of the Goods and Services Tax as the biggest long-term triggers for the market.The Indian economy may have improved considerably following a good monsoon, but Karwa says the earnings may only improve in the second half of current fiscal and will hold strong till the end of FY18.The market is in a consolidation phase as it has already run ahead of company earnings, says Karwa.Also read - Axis Bank eyes 18-19% loan growth, says slippages to continue10:00 am Market Check
Equity benchmarks fell further with the Sensex shedding more than 200 points on global weakness. Banking & financials drove the market lower whereas telecom and select auto stocks gained.
The 30-share BSE Sensex was down 208.90 points at 27882.52 and the 50-share NSE Nifty declined 56.20 points to 8635.10.
Bharti Airtel was the biggest gainer, up nearly 3 percent after its profit in Q2 beat analysts' expectations at Rs 1,461 crore and margin expansion continued for fourth consecutive quarter.
Hero Motocorp rose 2 percent ahead of quarterly earnings. A CNBC-TV18 poll expects second quarter to be strong one with profit rising 20 percent on strong operational and volume growth.
Axis Bank retained its top position in the selling list, down more than 7 percent on a 83 percent fall in profit in Q2 YoY due to big clean up bad loans. ICICI Bank was down 3 percent.
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