Todays Market from Equitymaster http://www.equitymaster.com/tm.asp The happenings in the stock markets, including a pre-open and closing commentary. Todays Market from Equitymaster http://www.equitymaster.com/icons/eqtm_small1.gif http://www.equitymaster.com/tm.asp http://blogs.law.harvard.edu/tech/rss A 500 points gain for the day http://www.equitymaster.com/tm/tm.asp?date=10/31/2014&title=A-500-points-gain-for-the-day
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After trading strong during post noon trading session, the Indian equity markets gathered momentum and locked in further gains before closing the day in the green. While the BSE Sensex today closed higher by 520 points, the NSE-Nifty closed higher by 153 points. Even Midcaps and Smallcaps closed in the green today. While the BSE Mid Cap index closed higher by 1.2%, the BSE Small Cap index was higher by 0.9%. Except for consumer durable stocks which lost 3% all sectoral indices closed in the green.

As regards global markets, Asian pack too closed strong today with all indices being in the green. The rupee was trading at Rs 61.4 to the dollar at the time of writing.

With festive season coming to an end, India's gold imports for the month of October are likely to halve to 50-60 tons. It may be noted that taking into consideration the festive season, India imported roughly 95 tons of gold in the month of September. Not only was the consumer sentiment positive but prices were also low which boosted demand. Even November is expected to be a muted season as far as imports are concerned. Roughly, 60 tons (similar as this month) is expected to be imported in November. However, the overall situation this year is much better than compared to last year when import duty was increased drastically to curtail imports and curb current account deficit. At the time of writing gold was trading lower by 2%.

Titan Company reported its 2QFY15 results recently. Net sales grew by 56% YoY during the quarter. Segment wise, while jewellery revenues grew by 65% YoY, the watches segment grew by 20% YoY. The seemingly robust performance in the jewellery segment was due to the low base effect of the same quarter in the previous financial year, wherein the segment had witnessed just a 4% growth in sales. Operating expenditure grew 58% YoY, faster than the pace of revenue growth. This led to operating profits growing by only 37% YoY, and a consequent fall in operating margins from 9.7% in 2QFY14 to 8.5% in the current quarter. A steep 34%YoY fall in other income further led to the bottomline growing at a still slower pace of 29% YoY during the quarter. The stock of Titan closed lower by over 6% today.

This article (A 500 points gain for the day) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.]]>
Fri, 31 Oct 2014 10:30:00 GMT http://www.equitymaster.com/tm/tm.asp?date=10/31/2014&title=A-500-points-gain-for-the-day
Engineering & metal bolster markets http://www.equitymaster.com/tm/tm.asp?date=10/31/2014&title=Engineering--metal-bolster-markets
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Indian share markets continued to surge in the post-noon trading session. Barring consumer durable, all the sectoral indices are trading in the green with engineering and metals stocks being the biggest gainers.

BSE-Sensex is up 402 points and NSE-Nifty is trading 117 up. BSE Mid Cap is trading 1.2% up and BSE Small Cap index is trading up by 0.9%. The rupee is trading at 61.35 to the US dollar.

Most of the FMCG stocks are trading in the green led by <>Marico and Bata India. Hindustan Unilever and Godrej Consumer Products are among the few stocks trading in the red. As per a leading financial daily, Dabur will be launching Chyawanprash in biscuit and snack bars with an aim to modernise and widen the reach of its Chywanprash brand. Reportedly, Dabur is the market leader in the Rs 5.5 bn chywanprash category with 65% market share followed by Emami. The category has been clocking growth of 10-12% per annum but its brown sticky appearance has not been able to appeal to the contemporary consumer. The company wants to overcome this limitation by launching it in the form of biscuits and snack bars. Apart from Dabur Chywanprash, the company plans to modernise its other brands such as Hajmola digestive candy and Pudin Hara. Dabur stock is currently trading up 0.3%.

All automobiles stocks are trading in the green today. Gainers are being led by Maruti Suzuki and Hero MotoCorp. As per a leading business daily, Tata Motors acquired Jaguar Land Rover (JLR) is planning to open its first engine plant in UK at a cost of 500 m pound. As per the company, in-house manufacturing of engines will increase the company's competitiveness and increase flexibility to meet customer's needs. In-house manufacturing and design of engines in general provides strategic control competitiveness for auto manufacturers as it is very important component of automobiles. The stock of Tata Motors is trading up by 1.4% at the time of writing.

This article (Engineering & metal bolster markets) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.]]>
Fri, 31 Oct 2014 08:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=10/31/2014&title=Engineering--metal-bolster-markets
Indian markets scale new highs http://www.equitymaster.com/tm/tm.asp?date=10/31/2014&title=Indian-markets-scale-new-highs
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After opening firm, the Indian Indices are witnessing broad based buying interest during the morning trading session. Apart from consumer durables stocks, all sectoral indices are trading in the green.

The BSE-Sensex is trading up 351 points. The NSE-Nifty is trading up 102 points. The BSE Mid Cap index is trading up 1.3% and the BSE Small Cap index is trading up 1.1%%. The rupee is trading at 61.41 to the US dollar.

Most telecom stocks are trading higher today. Reliance Communications and Idea Cellular are leading the gainers. As per a leading financial daily, India's leading telecom tower firm Bharti Infratel, is considering taking over the telecom towers of Vodafone India and Idea Cellular. In addition to this the company is also scouting for acquisitions in Sri Lanka and Bangladesh. The company has cash and cash equivalents of about Rs 76.5 bn. The company already owns 42% stake in Indus towers; a three company JV between Bharti Airtel, Vodafone India and Idea Cellular. The company has about 84,000 towers in India. In comparison, Vodafone India has about 25,000 towers and Idea has about 9,500 towers. Bharti Infratel was trading up 0.5% at the time of writing.

Most software stocks are trading firm with Infosys and HCL Technologies leading the gainers. In an interview to a leading business daily, Vineet Nayar, Executive Vice-Chairman of Tech Mahindra has stated that the company is winning larger deals than before. He stated that these contracts were important for the company to reach its revenue target of US$ 5 bn for FY17. There would also be an element inorganic growth as well. He believed that margins were unlikely to improve this year but sounded hopeful of improving margins next year. The stock was trading up by 1.3% at the time of writing.

This article (Indian markets scale new highs) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.]]>
Fri, 31 Oct 2014 06:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=10/31/2014&title=Indian-markets-scale-new-highs
Indian share markets open firm http://www.equitymaster.com/tm/tm.asp?date=10/31/2014&title=Indian-share-markets-open-firm
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Asian stock markets have opened the day on a firm note with the markets in Japan (up 1.9%) China (up 0.9%) and Hong Kong (up 0.9%) leading the gains. The Indian share markets have also opened the day on a firm note. Barring the consumer durables index, all sectoral indices are trading firm with IT and capital goods indices leading the gains.

The Sensex today is up by around 202 points (0.7%), while the NSE-Nifty is up by about 59 points (0.7%). The mid and small cap stocks are also trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.9% each. The rupee is currently trading at Rs 61.46 to the US dollar.

Cement stocks have opened the day in the green with JK Lakshmi Cement and Birla Corporation leading the gains. Holcim Group company Ambuja Cements Ltd has announced its financial results for the quarter ended September 2014 (3QCY14). During the quarter, the company's standalone net sales grew by 9.1% year-on-year (YoY) to Rs 21,875.5 million. Operating profit increased by 46.9% YoY to Rs 3,934.1 million. Operating margin expanded from 13.3% in 3QCY13 to 17.9% in 3QCY14. At the bottomline level, standalone net profit grew by 44% YoY to Rs 2,390.6 million.

Telecom stocks have opened the day on a firm note with Tata Communication and Idea Cellular leading the gains. Leading Indian telecom player Bharti Airtel has announced its financial results for the quarter ended September 2014 (2QFY15). During the quarter, the company's consolidated net sales grew by 7.1% year-on-year (YoY) to Rs 228,452 million. Operating profit increased by 12.8% YoY to Rs 77,053 million. Operating margin expanded from 32% in 2QFY14 to 33.7% in 2QFY15. At the bottomline level, consolidated net profit grew by 170.2% YoY to Rs 13,832 million.

This article (Indian share markets open firm) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.]]>
Fri, 31 Oct 2014 04:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=10/31/2014&title=Indian-share-markets-open-firm
To spend, or not to spend? http://www.equitymaster.com/tm/tm.asp?date=10/31/2014&title=To-spend-or-not-to-spend
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The crescendo of positive sentiment in India has been building since the new government was elected with an overwhelming majority. 'Good days lie ahead!' appealed Narendra Modi. And sure enough, a virtuous cycle of optimism begetting more optimism has since been sustaining itself.

The stock market has also readily followed this pattern. Just yesterday, the BSE-Sensex scaled yet another high.

But has the Indian consumer started feeling confident enough yet to go out and loosen his purse strings? That, after all, is one of the most important questions businesses out there are anxiously awaiting an answer for.

The answer to that is somewhat of a mixed bag; bitter sweet even.

On the positive side, as per a survey by market research firm Nielsen, India has topped in terms of consumer confidence during the three months to September 2014. Considering that the survey covered 30,000 respondents across 60 markets in the Asia Pacific, Latin America, Europe, Middle East and North America, the picture looks good indeed as far as the average Indian consumer is concerned.

But is this confidence translating into spending?

And this is where things begin to look a little iffy. As their survey indicates, only about 59% of the respondents polled said it was a good time to buy the things they wanted. Somewhat worryingly, this is a 1 percentage point drop from the preceding June quarter. So is the euphoria around the new government waning?

Many businesses, especially retail consumer oriented, surely think so. A Mint report indicates there while there may be bullishness in terms of sentiment in the marketplace, consumers are still being fairly reluctant when it comes to actual spending.

Spending during the festive season surrounding Diwali too was subdued, it points out.

The only ones who have been very successful in luring the currently reticent Indian consumer are the e-commerce firms. That too seems to have become possible only with the temptation of humungous discounts, the likes of which have meant disaster for their own bottom lines.

When the currently prevailing 'positive sentiment' is going to translate into wholehearted spending by consumers is anyone's guess.

In the meanwhile, Indian businesses continue to await such a time with bated breath.

This article (To spend, or not to spend?) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.]]>
Fri, 31 Oct 2014 03:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=10/31/2014&title=To-spend-or-not-to-spend