The BSE Sensex ended slightly lower amid a mixed trend in various constituents of the barometer index. Trading was lacklustre mimicking the dull trade in Asian and European markets.
Heavyweights Reliance Industries and Infosys remained subdued for almost the entire day. Cement pivotals firmed up expecting strong Q3 results. Select side-counters surged as well.
The 30-share BSE Sensex lost 14.91 points (0.1%), to settle at 14,114.73. The benchmark index had recovered from a lower level after having dropped as many as 58.99 points, to 14,070.65, at 14:32 IST. Barring the dip in late-afternoon trade, the market remained ranged for the better part of trading. Earlier, the BSE benchmark struck an all-time high of 14,211.15 at the onset of trading.
While the Sensex ended in the red, the S&P CNX Nifty managed a marginal gain. It rose 2.1 points (0.05%), to settle at 4,080.50.
Although the market-breadth ended positive, it had weakened compared to that in the early-afternoon. For 1,334 shares rising on BSE, 1321 declined. As many as 50 shares were unchanged. The BSE Mid-Cap Index gained 26.59 points (0.44%), to settle at 6,081.10. The BSE Small-Cap Index rose 18.73 points (0.25%), to settle at 7505.44.
The BSE clocked a turnover of Rs 3976 crore, lower than Monday’s Rs 4703.78 crore.
Q3 results and the management guidance about the outlook will dictate the near-term trend on the bourses. After results, the focus is likely to shift to the Union Budget 2007-08. Market players are likely to start building fresh positions expecting a favourable policy for businesses in the budget.
The earnings season has started with Infosys, TCS, HCL Tech, HDFC Bank and UTI Bank unveiling strong numbers. While Wipro unveils Q3 results tomorrow, Ranbaxy's are scheduled for Thursday. Reliance Industries unveils results on Thursday and Satyam Computer's are slated for Friday.
A divergent trend was witnessed among sectoral indices on BSE today. The BSE Auto sector index rose 47.18 points (0.8%), to 5,699.73. The Banking sector index, the BSE Bankex, rose 16.74 points (0.23%), to settle at 7,419. The Capital Goods Index was the star performer with a gain of 94.83 points (1%), at 9,361.10.
BSE Metal index lost 108.67 points (1.1%), to 9,162.74. The BSE IT index shed 17.48 points (0.3%), to 5,378.89.
Bajaj Auto turned volatile post results. The stock rose 0.3% to Rs 2776 for the day. The scrip had declined as much as 1.8% to a low of Rs 2715 at 14:33 IST. Earlier, it had held firm ahead of the results. It had gained as much as 3.3% to a high of Rs 2859 at 13:52 IST.
Bajaj Auto’s net profit rose 24% in December 2006 quarter to Rs 345 crore from Rs 279 crore. Net sales rose 28.3% to Rs 2568.23 crore (Rs 2000.94 crore). The operating profit margin (OPM) was under pressure, declining sharply to 14.1% from 17.89% in December 2005 quarter. Bajaj Auto’s Q3 results hit the market in mid-afternoon trade.
Reliance Industries (RIL) lost 1.4% to Rs 1345.50 and Infosys shed nearly 1.4% to Rs 2211. As per reports, RIL has picked up large tracts of land in Delhi for Rs 980 crore for its retail venture.
Infosys and RIL have a combined weightage of 23.2 % in the Sensex.
Hindalco lost 1.3% to Rs 170, tracking weak global metal prices. Global copper was down 1.7% and zinc 3% on Tuesday.
State Bank of India l(SBI) lost nearly 1% to Rs 1211, after SBI chairman said SBI’s loan growth in April-December 2006 period was 16-17% compared with a nearly 30% rise for the banking sector.
Wipro firmed up ahead of its Q3 results, which will hit the market tomorrow morning. The stock gained 1.5% to Rs 637.
TCS dropped 0.5% to Rs 1321.15. In early-trade, the stock hit a lifetime high of Rs 1399. After trading hours on Monday, TCS reported a consolidated net profit as per US GAAP of Rs 1104.68 crore in December 2006 quarter, a growth of 11.4% sequentially. The net profit was at the top end of forecasts, between 4.4 - 13.9% growth, by eight analysts. Consolidated revenue as per US GAAP rose 8.4% on a sequential basis, surpassing an expected 6.2 - 8.2% growth of eight analysts.
TCS also announced an agreement with Banco Pichincha, Ecuador's largest private bank, to provide a comprehensive outsourcing solution, in a contract valued at over $ 140 million for five years.
Cement pivotals were in demand on expectations of strong Q3 results. ACC gained 1.4% to Rs 1099, Grasim gained 1.1% to Rs 2875 and Gujarat Ambuja Cements advanced 0.4% to Rs 144.25.
Cellular services major Bharti Airtel gained almost 1% to Rs 668, extending its recent rally on expectations of strong Q3 results.
L&T advanced 1.3% to Rs 1520. The stock hit a high of Rs 1525.
Housing finance major HDFC lost 2.5% to Rs 1555. It is the biggest loser among the 30-Sensex constituents.
Hindalco shed 1.3% to Rs 170, tracking weak global copper prices.
Mahindra & Mahindra surged 3% to Rs 983. The company said on Tuesday it will build a new plant worth Rs 2500 crore to make vehicles for its joint venture with Navistar International Corp. M&M on Tuesday signed an agreement with the Maharashtra government for the plant, which will have an initial capacity of 2,50,000 units. The production at the plant will begin in two years.
CMC spurted 23% to Rs 1119. The stock rose for the second day in a row after it reported strong Q3 results on Saturday (13 January 2007).
HCL Tech gained 1.3% to Rs 638, after it reported a stronger-than-expected 14.4% sequential growth in consolidated net profit as per US GAAP in Q2 December 2006 to Rs 286.20 crore. Revenue rose 6.2% to Rs 1465.10 crore. Revenue growth was within market expectation, between 3.3 - 7.9% growth.
IPCL lost 1.1% to Rs 286. After trading hours on Monday, IPCL reported 78% growth in net profit in December 2006 quarter at Rs 405 crore (Rs 228 crore). Net sales rose 42.6% to Rs 3056 crore (Rs 2143 crore).
Nestle India dropped 4.4% to Rs 1162. The company said late on Monday that the Rs 43.23 crore from its share premium account, will be distributed among shareholders. An amount of Rs 43.09 crore from the company's general reserve account will be paid to shareholders as a special dividend. The scheme is subject to regulatory approvals.
Cairn India rose nearly 1% to Rs 142.45, extending Monday’s surge. Oil and Natural Gas Corporation said on Monday it will announce plans to build a pipeline to transport crude oil from Cairn India oilfields in Rajasthan by the end of the week.
"We are discussing various options and whosoever will build the pipeline will recover the cost from the sale of crude," R.S. Sharma, Chairman, ONGC, said on the sidelines of an energy conference.
Separately, Cairn India said it is actively discussing with the Government of India and other parties, including ONGC and ONGC's subsidiary MRPL, arrangements for transporting crude from its Rajasthan oil fields and an agreement is still to be reached.
RCF jumped 10.6% to Rs 46.30, after the company said it will unveil Q3 results on 31 January 2007.
Batliboi rose 1.1% to Rs 113.50. Batliboi reported a surge in net profit in December 2006 quarter to Rs 3.95 crore (Rs 1.69 crore). Net sales rose 42.8% to Rs 36.23 crore (Rs 25.36 crore).
Lumax Auto Technologies settled at Rs 110.70 on NSE compared to the IPO price of Rs 75. The stock debuted at Rs 80 compared to the IPO price of Rs 75. The stock also hit a low of Rs 75 and a high of Rs 143. As many as 72.4 lakh shares changed hands in the counter on NSE.
Areva T&D India ended flat at Rs 997.90. The power transmission equipment maker said it had secured three orders of total worth Rs 252 crore.
Dalmia Cement Bharat rose 1.2% to Rs 423.50, after the company reported a net profit of Rs 64.84 crore in December 2006 quarter compared to a net profit of Rs 11.72 crore in December 2005 quarter. Net sales rose to Rs 231.05 crore from Rs 138.90 crore.
Prism Cement jumped 10% to Rs 41.60, after it reported a net profit of Rs 50.09 crore in December 2006 quarter compared to a net profit of Rs 3.35 crore in December 2005 quarter. Net sales rose to Rs 190.01 crore from Rs 127.24 crore.
Patel Engineering ended flat at Rs 462. The company today reported 16.4% growth in net profit in December 2006 quarter to Rs 29.46 crore (Rs 25.32 crore). Net sales during the same period rose to Rs 284.12 crore (Rs 231.32 crore).
Bajaj Auto Finance rose 2.4% to Rs 385. The company on Monday reported a net profit of Rs 16.86 crore in December 2006 quarter compared to a net loss of Rs 11.81 crore in December 2005 quarter. Total income surged to Rs 126.76 crore from Rs 71.37 crore.
KS Oils jumped 5% to Rs 333.10, after it reported a net profit of Rs 20.21 crore in December 2006 quarter compared to a net profit of Rs 3.55 crore in December 2005 quarter. Net sales rose to Rs 305.15 crore (Rs 123 crore).
Lok Housing & Constructions jumped 5% to Rs 282.55, after it reported a net profit of Rs 24.19 crore in December 2006 quarter compared to a marginal net loss in the corresponding period last year. Net sales rose to Rs 81.78 crore (Rs 17.71 crore).
Aztec Software & Technology Services plunged 9% to Rs 147.15, on news that the exit of a major client and the appreciation of the rupee will cap growth in the Jan-March quarter. The software services firm earlier posted a 7% rise in Oct-Dec net profit.
Sumeet Industries jumped 5% to Rs 18.95. Sumeet Industries said on Tuesday, its board had approved allotment of 2.5 million shares on a preferential basis to promoters and associates at Rs 30 a piece.
International ratings agency Moody's Investors Service said on Tuesday, there is no change to India's sovereign ratings outlook, and said large public debt was keeping its domestic currency rating at a speculative grade.
"A healthy external position is reflected in an investment-grade Baa3 foreign currency rating, but heavy public debt hampers its domestic currency rating," Moody's statement read. India's domestic currency debt is assigned a speculative-grade Ba2 rating, with a stable outlook. Debt as a ratio of gross domestic product now stands at 92%, the agency said.
European markets were subdued. Key benchmark indices in Germany and France were down by 0.1% each. London's FTSE 100 index was flat. Asian markets were mixed. Key benchmark indices in Hong Kong, Japan, and South Korea were down between 0.04 - 0.2%. Key benchmark indices in Singapore and Taiwan were up between 0.09 - 0.1%. US markets were closed on Monday.
Oil prices edged lower below $53 a barrel on Tuesday, pressured by warm weather and ample supplies. US crude was down 14 cents at $52.85 a barrel. Prices last week fell to a 19-month low of $51.56 for US crude, taking losses since the end of last year to around 15%.