Indian Markets Outlook: 23-27.07.2012
The outcome of the presidential poll on Sunday will lend cues to local
equities on Monday. Market may get some respite from Reliance Industries'
better-than-expected Apr-Jun earnings. Post market hours yesterday, RIL
reported a net profit of 44.7 bln rupees for the first quarter due to
reversal of some deferred tax provisioning done in earlier quarters. What
came as a major surprise was the $7.6 per barrel gross refining margins.
The rise in margins was on the back of better product mix. Another
positive element in the earnings was the 17% sequential fall in RIL's other
income during the quarter to 19 bln rupees. Petrochemicals contribute
25-30% to RIL's EBIT (earnings before interest, tax), so a fall in margins
in that segment is a bit of a worry. In the broad market, trade is expected
to be largely rangebound as several companies are slated to report
quarterly earnings and due to the expiry of the July futures contract
Thursday.
Rollovers may not be on the higher side this time as
traders would prefer to let their positions expire on caution ahead of the
Reserve Bank of India's first quarter monetary policy review on Jul 31. The
National Stock Exchange's 50-share Nifty to trade in the 5150-5300 range
next week. UltraTech Cement stocks may rise as the company reported a
higher-than-expected growth in net profit and sales in Apr-Jun. The
country's largest cement maker reported net profit of 7.8 bln rupees, up
14.7% on year. Crompton Greaves stocks are likely to fall on Monday as the
company posted a lower than expected consolidated net profit of 859 mln
rupees for the first quarter.
Nifty companies that will detail June quarter earnings
next week are Cairn India, Hindustan Unilever, Larsen & Toubro, Jindal
Steel & Power, Sesa Goa, ACC, HCL Technologies, Power Grid Corp of India,
Ambuja Cements, ITC, ICICI Bank, Wipro, Bharat Heavy Electricals, NTPC,
Punjab National Bank, and Maruti Suzuki India. L&T is seen posting a 9%
rise in net profit on a 16% revenue growth in Apr-Jun. The engineering
major's net profit is seen at 8.15 bln rupees and net sales at 109.2 bln
rupees. But more than the earnings, the street will focus on the order
inflows seen during the reporting quarter and whether the management will
revises its revenue and order inflow guidance for 2012-13 (Apr-Mar). Wipro
that will detail its earnings on Tuesday is seen reporting a 10% sequential
and 22% on-year growth in its Apr-Jun consolidated net profit to 16.24 bln
rupees mainly on foreign exchange gains.
By RUPEE DESK [email protected] www.rupeedesk.in
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