Market Live: Sensex off day’s high, Nifty slips below 10,000; Q2 earnings eyed

 In Business

Moneycontrol News

11:56 am Order win: Shares of Kalpataru Power Transmission rose 2.5 percent intraday as it has received orders worth Rs 1,057 crore.

The company has secured new orders / notification of award of Rs 1,057 crore, including two orders of Rs 913 crore for design, supply and construction of 500 kV and 225/90 kV transmission lines in Thailand and Africa and an order for pipeline installation and associated terminal works of KSPPL for Rs 144 crore.

11:50 am Market Check: Equity benchmarks erased some gains amid consolidation in late morning trade as investors awaited second quarter earnings season that will begin tomorrow with South Indian Bank.

The 30-share BSE Sensex was up 40.58 points at 31,854.80 and the 50-sahre NSE Nifty gained 6 points at 9,985.70.

The market breadth remained strong as about 1,445 shares advanced against 958 declining shares on the BSE.

11:40 am Auto sales: Global brokerage houses retained their positive view on Tata Motors following Jaguar Land Rover’s September sales data.

While maintaining outperform rating, Credit Suisse said sales volumes improved marginally and expects sharper improvement in second half of FY18.

It expects JLR volume growth at 15 percent in second half of FY18 against 4 percent in first half.

Nomura has maintained its buy rating with a target price of Rs 514, which implies 21.5 percent potential upside.

In FY18, the research house expects wholesale sales growth to remain healthy at around 9.8 percent YoY led by the ramp-up of the new RR Velar, launch of E-Pace/XE (Long wheel base) in Q4FY18 and RR Sport variants (in Oct-2017).

Jaguar Land Rover reported September 2017 retail sales growth of around 7 percent YoY to 65,097 units, largely in line with Nomura estimate. Jaguar sales increased around 4 percent to 18,336 units, while Land Rover was up around 7.7 percent YoY at 46,761 units.

11:27 am Management interview: The pre-sales for the second quarter were up 14.4 percent at Rs 592 crore versus Rs 518.2 crore for the same month last fiscal.

The company posted sales value which was highest in the last three years, said JC Sharma, Vice Chairman & MD, Sobha. This tells us that even while the macro environment was sluggish, if one were to focus on marketing and believe that underlying demand will be there, one will do succeed, he said, adding that this has taken place in all their markets in the last 9 months.

 

On the business outlook front, he said the EBITDA margins will be better than the last three years and the revenues too will be good. Moreover, company will be one of the beneficiaries of the goods and services tax (GST) transition, which will help aid their margins, said Sharma.

He also confirmed that the company would be working on affordable housing scheme.

11:12 am Divestment: Jindal Steel & Power (JSPL) share price gained 5.6 percent intraday after the company sold its oxygen plant assets at Raigarh and Angul units.

“JSPL has divested its oxygen plant assets at its integrated steel plants at Raigarh (Chhattisgarh) and Angul (Odisha), and received a total consideration of Rs 1,121 crore,” the company said in its filing.

JSPL has consummated sale of oxygen plant assets at Rs 1,121 crore with SREI Equipment Finance.

Both companies have also entered into a lease back agreement of the oxygen plant assets for continued operations by JSPL for manufacturing of steel at the respective plants.

10:59 am IPO subscription: MAS Financial Services’ initial share sale has been oversubscribed 1.5 times today, as per data available on exchanges.

The issue received bids for 1.07 crore equity shares against IPO size of 71.24 lakh equity shares, excluding anchor investors’ reserved portion.

10:45 am Gold trade: Gold prices climbed to their highest in more than a week today as renewed concerns over North Korea’s nuclear ambitions stoked safe-haven demand for the precious metal and weighed on the dollar.

US gold futures for December delivery gained 0.83 percent to USD 1,285.50 per ounce.

10:35 am Buzzing: Sobha share price rallied nearly 9 percent intraday as global brokerage house CLSA has maintained its buy rating on the stock with a target price of Rs 525 after strong pre-sales data.

The Bangalore-based real estate company during the second quarter achieved new sales volume of 8.61 lakh square feet total valued at Rs 675.1 crore with an average realisation of Rs 7,840 per square feet.

The company has achieved this growth without launching any new projects during the quarter.

This showed the growth of 5.6 percent and 8.3 percent in sales volume and total sales value compared with previous quarter, respectively while on year-on-year basis, sales volume was marginally higher and total sales value increased by 22.5 percent in Q2FY18.

Sobha said its share of sales value stood at Rs 592.7 crore (out of Rs 675.1 crore) with an average realisation of Rs 6,883 per square feet, up 5.3 percent QoQ and 14.4 percent YoY.

 

10:20 am Market Check: Equity benchmarks gained strength after early consolidation.

The 30-share BSE Sensex was up 93.76 points at 31,907.98 and the 50-share NSE Nifty rose 24.85 points to 10,004.55.

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