Equities trade in red; metal, auto

The Sensex has so far touched a high of 32,057.12 points and a low of 31,878.30 points during intra-day trade.

The BSE market breadth was bearish with 1,337 declines and 1,180 advances.

“Equity benchmarks erased early gains in the morning trade. Ahead of June quarter earnings, Kotak Mahindra Bank, Reliance Industries and Wipro gained up to 1.7 per cent while Bajaj Auto fell 0.4 per cent,” said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.

“Reliance Industries is slated to announce its earnings for the April-June quarter (Q1) on Thursday and hold its AGM (annual general meeting) the day after. Analysts expect the focus, both in terms of the June quarter numbers and the AGM, would be on the company’s telecom business.”

Sify Editors @ 1:15 PM

Bajaj Auto first-quarter profit falls about 6 percent

Bajaj Auto Ltd posted a 5.6 percent fall in quarterly profit on Thursday as sales were hit by the changeover to BS-IV compliant vehicles and the transition to the new Goods and Services Tax (GST).

Profit was 9.24 billion rupees ($143.48 million) in the first quarter ended June 30, compared with 9.78 billion rupees a year earlier, the country’s fourth largest automaker by market capitalisation said.

The company said it incurred a one-time charge of 320 million rupees as payment to dealers to compensate for losses incurred on GST introduction due to pre-GST inventory held as on June 30.

Sify Editors @ 12:55 PM

Splitting bills will not reduce taxes says RAI

A message on social media has been suggesting that separate bills could help save GST rates. The message has been doing the rounds for almost two weeks, and it explains that for shopping bills worth Rs. 1000 the GST rate would be 0%, for Rs. 1000-1500 would be 2.5%, 6% on Rs. 1500-2500 and 18% for bills in the range of Rs. 2500 – 4500.

The hoax-full message has only inspired a bunch of shoppers, at the expense of retailers who have been forced to split bills for customers. Ironically, the message has led to serpentine queues and additional time for processing bills at the check-out counters.

“Believing the message as true, consumers across the country are demanding that retailers split the bill amount in multiple bills for evading tax, resulting in long queues, wastage of paper and unnecessary hassles at billing counters,” says Kumar Rajagopalan, the CEO at RAI.

The Retailers Association of India (RAI), is a body of 6,000 retailers that advocates retailer’ demands across the country. Rajagopalan had exclusively spoken with Sify on June 14 and explained how GST would impact consumer behavior.

Sify Editors @ 11:15 AM

Sensex buoyed by ONGC and positive global cues opens positively

The Sensex opened to a positive note and traded to 31992.20 at 10:00 AM from an opening of 32033.82. It touched a high of 32057.12.

NSE Nifty too opened to a high of 9920.20, however couldnt maintain momentum, dropping to 9907.75 at 10:00 AM.

Automobile and FMCG stocks lead the gainers while metal and Information technology were in the red.

Petrol stocks were leading the pack owing to the ONGC merger nod. ONGC opened to a high of 162.25, reaching a high of 167.45 by 9:35 AM. The stock seems poised to reach its 52 week high of 212 points that it notched on January 31 2017.

Among the global indices the Nikkei 225 was up by 0.36% while Hang Seng was 0.26% in the green. US stocks too closed to record highs on Wednesday. Rupee traded 64.32 against the Dollar.

Sify Editors @ 11:05 AM

Upeat results lift Sterlite Technologies for second straight session

Extending previous session’s gains, Sterlite Technologies moved up north on strong volumes on Thursday morning, and with the bulls staying quite aggressive at the counter, still remains high up in positive territory.

Sterlite Technologies, which is among the leading telecom products manufacturers in the country, ranks among the global leaders in Optical Communication Products such as optical fibers, fiber optic cables and data cables, operating through its networks in India, China and Brazil. With sales networks spanning across six continents, the company’s products have enabled top telecom operators with smarter networks in more than 100 countries.

The stock rallied sharply on Wednesday after the company reported consolidated revenue of Rs 716 crore for the quarter ended June 2017, up 27% over the corresponding quarter of the previous year. The company’s EBITDA in the fourth quarter was Rs 157.05 crore, a 37.5% jump over the year-ago quarter and EBITDA margin stood at Rs 21.9%.

Net profit was up 66.2% at Rs 69 crore in the April – June 2017 quarter, compared to year ago quarter. The sharp jump was due largely to a 10.5% decline in finance cost.

A pretty strong order book and a notable jump in sales overseas helped lift the company’s revenues in the first quarter. At Rs 320 crore, export sales were the highest ever recorded by the company. At the end of the June quarter, Sterlite Technologies’ order book was worth Rs 3140 crore.

Sify Editors @ 10:45 AM

From HDFC Securities: Oil & Gas sector will be the talk of the town today. Index giant Reliance  industries  will  announce  its  quarterly  numbers today.  It is expected  to report 7.5% growth in sales and about 10% in profits.  Cabinet has approved sale of government’s stake in HPCL to ONGC, in a bid to create oil giants to compete with global rivals.

Bajaj  Auto,  Wipro  and Kotak Mahindra bank will also show their quarterly report  card  today  and  these numbers will drive sentiment on the street. Nifty  managed to hold on to 9800 support and now that becomes the base for the short term.

Sify Editors @ 10:10 AM

Asia stocks hit near-decade high, yen slips as BOJ cuts inflation forecast

Asian shares scaled a near-decade peak on Thursday, bolstered by a surge in global stocks to new records on strong U.S. corporate earnings, while the yen eased slightly after the Bank of Japan reinforced expectations it will lag other central banks in dialling back stimulus.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.15 percent, hovering near its highest level since December 2007.

Australian stocks rose 0.6 percent and South Korea’s KOSPI was up 0.1 percent.

Chinese blue chips advanced 0.15 percent, while the Shanghai Composite edged up 0.25 percent. Hong Kong’s Hang Seng crept up 0.3 percent.

Sify Editors @ 9:45 AM

The Sensex in the Green

The Sensex was up by 244.36 points or 0.77 per cent at the Wednesday’s closing.

In the day’s trade, the barometer 30-scrip sensitive index had touched a high of 31,978.89 points and a low of 31,793.72 points.

The Nifty too, was up by 72.45 points or 0.74 per cent.

Japan’s Nikkei 225 was trading in green, up by 0.68 per cent, Hang Seng was up by 0.29 per cent while South Korea’s Kospi was also up by 0.15 per cent.

China’s Shanghai Composite index was quoting in green, up by 0.26 per cent.

Nasdaq closed in green, up by 0.64 per cent while FTSE 100 was up by 0.55 per cent at the closing on Wednesday.

Sify Editors @ 9:15 AM

The Sensex in the Green

HUL’s first quarter numbers have come in better than street expectations, and brokerage firm HDFC Securities to suggest a buy rating on the scrip.

At a CMP of Rs. 1158, the scrip has been forecast to reach a target-price of Rs. 1304 within 12 months.

The HUL revenue was up by 5% on a year on year basis at Rs. 83.5 billion. The domestic consumer business registered a healthy 6% growth, while EBITDA and APAT remained up at 14% and 15% respectively.

A document shared by Hindustan Unilever to the exchanges showed EBITDA rise by Rs. 1866 crore, while net profit go up 9% to Rs. 1283 crore.

Analysts suggested that GST implementation at HUL has been smooth and restocking benefits would be visible in second quarter FY18.

HUL on its part also suggested that there has been least disruption owing to GST. The company pushed its first GST invoice on 8:08 hours on July 1. The company supplies have been normal while payments to vendors has been made since the first day of the GST launch.

Pricing related concerns on its product-portfolio might have been a cause of worry. But, HUL has had an assortment of products and hence the GST impact seems to have averaged. The tax change has brought down effective price of Detergent bars, skin cleanser, toothpastes, and hair oils while it has increased the price for detergent powders, Hair Care products excluding hair oil, skin creams and color cosmetics, and Instant coffee.

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