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Reports India

Indian stock market daily morning report (August 18, 2014, Monday)

August 18, 2014, Monday, 05:30 GMT | 00:30 EST | 09:00 IST | 11:30 SGT
Contributed by Keynote Capitals

Views on markets today

- The BSE Sensex and Nifty rose on Thursday to their highest close in nearly two-and-a-half weeks as blue-chips such as ICICI Bank Ltd gained, tracking higher Asian stocks as soft economic data globally kept up hopes of continued stimulus from central banks.

The broader Nifty was just 0.6 per cent shy of the record high of 7,841 hit on July 25. While Sensex closed at 26103.23, up 184.28.

- Hyderabad-based Suven Life Sciences posted a 16.68 per cent rise in net profit at Rs 34.73 crore for the first quarter of the current financial year as against a net of Rs 29.77 crore for the same period last year.

The biopharmaceutical company's revenues during the quarter were up 30.23 per cent at Rs 141.53 crore, when compared with Rs 108.67 crore last year. The stock closed 2.44% up at Rs. 119.45 on BSE on Thursday.

- Among the 12 BSE Sectoral indices 10 Indices closed in positive while 2 Indicesended the day in negative. Top Gainers: Consumer Durables up by 2.08% and BSE Capital Goods by 1.78%. Top Losers: BSE IT down by 0.08% and BSE Teck by 0.05%.

Market breadth was positive at ~1.20 as investors bought large cap stocks. On provisional basis, FII's bought Rs 6.25bn worth of Indian equities and DII's sold Rs 1.35bn worth of equities.

Economic and Corporate Developments

- Prime Minister Narendra Modi on Friday said he would scrap the 64-year-old Planning Commission and replace it with a new institution to address India's economic needs and strengthen its federal structure.

Officials said the new body would have eight members - three from industry and the rest comprising former or existing chief ministers and Cabinet ministers. Likely to be called the National Development Reforms Commission, it might be housed in Yojana Bhawan, office of the Planning Commission. An 80-page document on the role of the body had been prepared, officials said. This might also pave the way for shifting the allocation of Plan funds to the finance ministry.

Buzzing Stocks

- Faced with a threat of lenders monitoring its operations, Bhushan Steel has decided to raise equity up to $1 billion (around Rs 6,000 crore).The stock of the company closed 4.97% down at Rs.160.50 on BSE on Thursday.

- Tata Steel has posted a 70 per cent year-on-year fall in consolidated net profit for the quarter ended June this year at Rs 337.33 crore, against the Bloomberg estimate of Rs 1,048.5 crore. The decline was primarily due to an exceptional loss of Rs 262 crore, higher tax outgo and the continuing rise in finance costs resulting from ongoing expansions.

For the year-ago period, the company had posted a net profit of Rs 1,139 crore. The stock of the company closed 1.23% up at Rs.541.30 on BSE on Thursday.

- Real estate firm Unitech has posted a 91 per cent decline in consolidated net profit to Rs 5.6 crore in the June quarter, on account of losses of about Rs 1,000 crore in its erstwhile telecom business. The net profit in the year-ago period was Rs 62.9 crore, Unitech said in a statement.

The total income from operations grew two-fold to Rs 1,522.1 crore in the April-June quarter against Rs 572.6 crore in corresponding quarter last year. The stock closed 4.14% up at Rs22.65%.

- Oil & Natural Gas Corporation (ONGC), the country's state-owned petroleum explorer and producer, reported a 19 per cent jump in net profit for the quarter ended June. However, it missed analyst estimates of earnings, due to higher discounts for oil marketing companies (OMCs).

The company recorded a net profit of Rs 4,782 crore during the three-month period, as against Rs 4,016 crore in the corresponding quarter last year (2013-14). This was lower than the Rs 5,850 crore median estimate of 29 analysts surveyed by Bloomberg. The stock closed 2.03% up at Rs.409.95 on BSE.

- Private sector lender J&K Bank's net profit for the quarter ended June this year fell 58 per cent to Rs 130 crore from Rs 307.9 crore in the corresponding period last year.

The drop was primarily due to higher provisioning, which rose about sevenfold to Rs 246.7 crore from Rs 36.2 crore in the year-ago period. In the March quarter, provisioning stood at Rs 60.6 crore. The stock closed 1.80% down at Rs.1471.40.