Saturday 8 August 2015

Sensex, Nifty End Lower; Oil Stocks Surge, BHEL Slumps

Posted by suhani varma on Saturday, August 08, 2015 with No comments
Traders choose the safer "cash" option going into the weekend, causing moderate weakness on Dalal Street. The Sensex was down 61.74 points at 28236.39 as PSU banks corrected while oil stocks surged. The Nifty slipped 24.05 points at 8564.60. About 1379 shares advanced, 1545 shares declined and 152 shares were unchanged. Experts expect the market to touch 8800 level soon before seeing major correction. CLSA has increased India weightage on the back of positive impact of government's PSU bank recapitalisation package. 

Raamdeo Agrawal, joint MD of Motilal Oswal Financial Services said economy is recovering, government has started spending. For the week, the Sensex and Nifty gained 0.4 percent each. BSE FMCG outperformed other indices, up 11 percent followed by CNX PSU Bank with 4.9 percent upside. The day had been about the oil stocks, with the sharp fall in crude prices aiding both upstream and downstream companies in trade. ONGC gained 4.4 percent.

BPCL and IOC rose 2 percent. HPCL surged 7 percent. Global oil prices continued to drop as fresh worries about an oversupply grip the markets. Brent crude slipped below USD 50 a barrel and is set to end lower for the sixth week in a row. Nymex remained under pressure for the eight week running. However, all eyes were on three index heavyweight announcing April-June quarter.

M&M’s growth engines misfire in the first quarter, but the 7 percent drop in net profit is not as bad as expected. The stock lost 0.5 percent on profit booking after hitting a record high. Tata Motors has a tougher time getting its bearings as a forex loss of Rs 107 crore makes for a larger-than-expected fall in first quarter net profits. Profit tanked 49 percent and Jaguar Land Rover profit declined 29 percent on lower China sales. Earnings announced post market hours. 


The stock gained 2.5 percent. The most shocking was BHEL’s Q1 net profit slumping 82.5 percent to Rs 33.9 crore compared to Rs 193.5 crore in the year-ago period, impacted by lower revenue and loss at operating level. The stock price lost 5.8 percent. Sun Pharma gained 0.6 percent as Taro's first quarter net sales jumped 65 percent and margin expanded by 2070 basis points to 62.5 percent.


Profits more than doubled to USD 104 million. Vedanta gained more than 2 percent as the company is ready to re-start its Goa operations next week after a 3-year wait. All approvals are in place to mine 5.5 million tonnes of iron ore per annum. Among others, State Bank of India, Coal India, Bajaj Auto and NTPC were other prominent losers, down 1-3.6 percent while Infosys and Reliance Industries supported the market, up half a percent.

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