Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Markets lower ahead of RBI policy
Tue, 3 May 11:30 am

Indian stock market indices have been trading in the red on the back of selling pressure from heavyweights. Metals and banking stocks are the biggest gainers, while realty and consumer durables are not finding favour.

The BSE-Sensex is down by 73 points while NSE-Nifty is trading 21 points below yesterday's closing. BSE Midcap and BSE Small cap indices are trading flat. The rupee is trading at 44.37 to the US dollar.

Finance stocks are trading mixed with LIC Housing and Motilal Oswal leading the gains. However, Mahindra Finance and Cholamandalam Investments are trading weak. IDFC recently announced its fourth quarter and (4QFY11) and full year ended results for FY11. The company has reported rise in income from operations by 27% and 22% for the quarter and full year respectively. The topline numbers are Rs 13.02 bn and Rs 49.16 bn for the quarter and the full year. The growth in income from operations in FY11 is mainly on the back of 50% YoY growth in advances. Disbursements and approvals grew by 106% YoY and 40% YoY respectively. Company's taxes went up by 70% over the quarter last year and 36% over the last year. A fall was seen in the other income by 45% year on year. Higher taxes, increased provisioning and lower other income hurt profits for the financial company and IDFC reported net profit growth of 26% in 4QFY11 and 21% in FY11. It has declared a dividend of Rs 2 per share.

Food & Tobacco stocks are trading mixed with Tata Coffee and VST Industries trading firm while GSK Consumer and Lakshmi Energy is trading weak. GSK Consumer released its 1QCY11 results. The company's top line grew by a moderate 9.5% YoY. While demand for GSK remains strong, sales appear muted due to a high base effect. This is because the company has consistently posted strong double digit top line numbers in the same quarter the last few years. Operating income grew by 9.4% while operating margins remained flat during the quarter. During the quarter staff costs and other expenditure grew sharply. However, fall in raw material costs and advertisement spending (all as a percentage of sales) helped keep the operating margins flat and operating income growth in line with sales. Net profits grew by 15% YoY during the quarter. This was due to strong other income growth which doubled during the quarter and a marginal fall in effective tax rates. Effective tax rate fell from 34.4% in 1QCY10 to 34% during the current quarter.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Markets lower ahead of RBI policy". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.