Profit-booking continues

The Sensex lost for the third straight day, shedding 134.89 points (1.05%), to settle at 12,723.59. It had opened firm, at 12,881.80, and risen to 12,925.60, at one point of time in early trade. Here, it started declining, and plunged to 12,654.98, by late afternoon as selling picked up pace.

The benchmark index oscillated a huge 271 points for the day.

The S&P CNX Nifty lost 32.85 points (0.89%), to end at 3,677.80.

The total turnover on BSE amounted to Rs 3,441 crore.

The market-breadth was negative; 997 shares advanced compared to 1,1427 that declined. As many as 84 scrips remained unchanged. The BSE MidCap index lost 0.35%, while the BSE SmallCap index was down merely 0.18%.

Among the 30-Sensex pack, 26 declined while the rest advanced.

Bajaj Auto was the top loser, down 3.62% to Rs 2,794, on 3.95 lakh shares, after the company came out with results below expectations for Q2 September 2006 on Wednesday, when the scrip plunged 7.14%.

Reliance Communication (down 2.78% to Rs 367.50), Ranbaxy (down 3.08% to Rs 411) and ITC (down 2.26% to Rs 190.10) were the other prominent losers.

HDFC dropped 2% to Rs 1,451, even while reporting 23% growth in bottomline for Q2 September 2006 to Rs 368.02 crore, compared to a net profit of Rs 298.98 crore in Q2 September 2005. Net profit has surpassed market expectations of about Rs 360 crore. Net interest income (NII) surged 21.7% to Rs 533.10 crore, from Rs 438.03 crore. NII also exceeded expectations of about 19% growth.

L&T lost 2.46% to Rs 1,271.10, even as the company reported 40.6% growth in net profit for Q2 September 2006 to Rs 201.22 crore from Rs 143.05 crore in Q2 September 2005. Net profit adjusted for last year’s extra-ordinary income rose 68% to Rs 201.22 crore from Rs 119.62 crore. Revenue rose 10.8%, from Rs 3,371.60 crore to Rs 3,736.07 crore.

Index heavyweight Reliance Industries (RIL) lost 1.53% to Rs 1,189.50, on 17.41 lakh shares ahead of its Q2 results today. Five brokerages have forecast between 4.6% fall and a 16.8% rise in RIL’s Q2 net profit, between Rs 2,366.20 crore and Rs 2,897.40 crore. While RIL’s refining (two-thirds of turnover) margin has declined, petrochemical (one-third) margins have surged during the quarter in Q2 September 2006. The sharp upswing in petrochemical margins in Q2 September was triggered by the scheduled capacity shutdown in Asia, followed by Europe.

Grasim Industries was the top gainer, up 2% to Rs 2,634, after it reported stronger-than-expected Q2 results. The net profit jumped 80% to Rs 337.84 crore (Rs 187.65 crore), beating market expectations. Four brokerages had forecast 41 - 67.8% growth in Grasim’s Q2 net profit, between Rs 264.70 crore and Rs 315 crore. The topline growth, too, surpassed market expectations. The net sales rose 22.6% to Rs 2,010.82 crore (Rs 1639.10 crore). Four brokerages forecast 11.2 - 18.8% growth, between Rs 1,822.50 crore and Rs 1,946.50 crore. The core operating profit margin surged from 19.6% to 26.4% in Q2 September 2005. The results hit the market after trading hours on Wednesday (18 October).

FIEM Industries finished at a discount (Rs 121.75), compared to the IPO price of Rs 137 per share. As many as 29.29 lakh shares changed hands in the counter on BSE. It was listed on BSE at Rs 145, went on to hit Rs 148 before dropping to a low of Rs 119.65.

Tech Mahindra jumped 12.63% to Rs 770.15, on robust Q2 results. Its net profit rose to Rs 141 crore from Rs 36.50 crore in Q2 September 2005. Total income surged to Rs 648 crore from Rs 257 crore.

JSW Steel surged 4.11% to Rs 327.95, after it announced 225% surge in net profit for Q2 September 2006 to Rs 327.95, compared to Rs 106.29 crore for Q2 September 2005. Total income has increased from Rs 1,551.98 crore to Rs 2,202.97 crore.

Canara Bank dropped 1.6% to Rs 276, as Q2 bottomline fell within the expected range. Canara Bank’s net profit rose 18% to Rs 361.77 crore. The growth was within market expectations. Net interest income surged 21.6% to Rs 981.11 crore, much more than expected. Four brokerages had forecast 16.6 - 20.8% growth. Other income declined to Rs 313.28 crore from Rs 392.84 crore. Provisions and contingencies declined to Rs 153.41 crore from Rs 202.60 crore.

Titan lost 2.61% to Rs 797.75. It reported 50.1% rise in Q2 September net sales to Rs 523.5 crore (Rs 348.8 crore). Net profit jumped 56.2% to Rs 32.2 crore (Rs 20.6 crore).

Jyoti Structures slipped 1.42% to Rs 118. It had reported a net profit of Rs 11.5 crore for Q2 September 2006, compared to Rs 5.3 crore for Q2 September 2005. Net sales rose to Rs 242.6 crore (Rs 158.5 crore).

Jay Bharat Maruti declined 1.32% to Rs 59.90, despite strong Q2 results. The company registered a net profit growth of 23.80% to Rs 2.96 crore for Q2 September 2006, compared to Rs 2.39 crore for Q2 September 2005. Net sales rose 17.40% to Rs 124.05 crore from Rs 105.69 crore.

Syngenta India jumped 9.31% to Rs 331, after it posted 67% growth in net profit to Rs 34.47 crore for the quarter ended 30 September 2006, compared to Rs 20.69 crore for the quarter ended 30 September 2005. The company's total income increased 27%, from Rs 210.26 crore to Rs 267.80 crore.

Orchid Chemicals dropped 1.48% to Rs 206.80, after it reported 8.1% growth in net profit for Q2 September 2006. Orchid Chemical’s net profit has risen 8.1% to Rs 29.45 crore (Rs 27.22 crore). Net sales rose 2.6% to Rs 245.73 crore. The performance was muted due to a strong base-effect of the corresponding previous quarter. The results are strong on a sequential basis. The net profit rose 101.8%, on a sequential basis, from Rs 14.59 crore in Q1 June 2006. Sales rose 21.8% on a sequential basis.

Geodesic Information Systems jumped 10% to Rs 202.10, after it announced 138% net profit growth for Q2 September 2006 to Rs 23.35 crore, compared to Rs 9.80 crore for Q2 September 2005. Total income increased to Rs 39.91 crore from Rs 21.73 crore.

EMCO surged 3.92% to Rs 595, after reporting strong Q2 September results. EMCO has registered a net profit growth of 71.20% to Rs 8.68 crore for Q2 September 2006, compared to Rs 5.07 crore in Q2 September 2005. Net sales rose 71.40% to Rs 130.49 crore, from Rs 76.15 crore.

Steel maker Ispat Industries jumped 4.72% to Rs 12.20, after the company reported turnaround results for Q2 September 2006. Ispat reported net profit of Rs 2.32 crore for Q2 September 2006, against a net loss of Rs 232.83 crore for Q2 September 2005. Net sales surged 57.20% to Rs 1,884.25 crore (Rs 1,198.40 crore).

Lupin rose 1.58% to Rs 261.70, after reporting 29% growth in net profit for Q2 September 2006 to Rs 58.30 crore from Rs 45.19 crore in Q2 September 2005. The bottomline growth was within market expectations. Market expectations for Lupin were quite varied – five brokerages had forecast 13 - 47.5% growth. Sales rose 21.1% to Rs 491.07 crore from Rs 405.09 crore, well within expectations. Five brokerages had forecast 17.8 - 31.9% sales growth.

Hexaware Technologies lost 3.17% to Rs 168.25, after its consolidated net profit rose 16.5% on a sequential basis to Rs 34.68 crore in Q3 September 2006, from Rs 29.77 crore in Q2 June 2006. The net profit growth beat market expectations. Five brokerages had forecast 10.6 - 15.1% growth. Revenue has risen 8.7% to Rs 224.96 crore from Rs 206.88 crore. Revenue growth was within market expectations. Five brokerages have forecast 7.3 - 10% growth.

Essel Propack declined 3.62% to Rs 82.50, after the company posted poor Q3 results. The company registered a fall of 24.62% in net profit for Q3 September 2006 to Rs 10.10 crore, compared to Rs 13.40 crore for Q3 September 2005. Total income has increased from Rs 69.10 crore to Rs 76.50 crore.

IDBI slipped 2.20% to Rs 78.60, after the company posted almost flat Q2 results. IDBI has posted a net profit growth of 5.73% to Rs 139.40 crore for Q2 September 2006, compared to Rs 131.84 core for Q2 September 2005. Total income has increased from Rs 1,568.17 crore to Rs 1,641.24 crore.

Asian/European markets were trading mixed. The Nikkei 225 index finished 101.64 points (0.61%) lower, at 16,551.36. Sharp losses in shares of chip equipment makers Tokyo Electron after Intel Corp. lowered its capital spending forecast, weighed on the Japanese benchmark index.

The Hang Seng index dropped 61.12 points (0.34%), to settle at 17,986.97.

US blue-chips rose on Wednesday, with the Dow industrial briefly topping the 12,000 mark for the first time on the strength of IBM's better-than-expected earnings, but investor concerns about the outlook for technology profits pushed the Nasdaq lower. The Dow Jones industrial average rose 42.66 points, or 0.36%, to 11,992.68 -- a fresh record closing high. The Standard & Poor's 500 Index gained 1.91 points, or 0.14%, to end at 1,365.96, while the Nasdaq Composite Index fell 7.80 points, or 0.33%, to close at 2,337.15.

Crude oil price rebounded from near its lowest level this year to around $ 58 on Thursday as traders reeled from a sharp rise in already bulging US crude stocks and OPEC ministers gathered for their first output cut since 2004. US light crude for November rose 23 cents to $57.88 a barrel. London Brent crude rose 27 cents, to $ 59.85 a barrel.