Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster

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

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Smallcaps in demand at the moment
Thu, 5 Aug 11:30 am

The Indian markets continued to trade in a rangebound manner during the previous two hours of trade. At present, the market sentiment seems quite optimistic as the overall advance to decline ratio is poised at 1.8 to 1 on the BSE. Barring select oil & gas and power stocks, buying activity is being witnessed in stocks across sectors, led by realty, auto and IT.

The BSE-Sensex is trading up by around 55 points (up 0.3%), while the NSE-Nifty is trading higher by about 10 points (up 0.2%). Stocks from the mid and smallcap spaces are finding favour as the BSE-Midcap and BSE-Smallcap indices are trading higher by 0.5% and 0.8% respectively. The rupee is trading at 46.22 to the US dollar.

Engineering and construction stocks are currently trading firm led by KSP Pumps, Alstom Projects, Siemens and Crompton Greaves. Although trading marginally higher today, the stock of Punj Lloyd ended on a very weak note yesterday as it posted weak results for the quarter ended June 2010. During the quarter, the company reported a revenue (consolidated) decline of 42% YoY. The management has attributed this to client-related delays in execution in some of the projects. These include the large-sized orders in Libya as well. At the operating level, the company reported a 56% YoY decline in operating profits as operating expenses declined at a relatively slower pace of 40% YoY. During the quarter, Punj Lloyd’s margins stood at 7.7% as compared to 10.3% during the corresponding quarter last year. While the company did well to reduce the raw material & cost of goods sold as well as contracting charges as a percentage of revenues, the other two key expense heads - employee costs and other expenditure - increased substantially as a percentage of sales.

Punj Lloyd recorded a loss at the net level. Apart from a poor operating performance, lower other income and higher depreciation & interest charges added to the woes at the profit level. However, on the bright side, the company has an order backlog of Rs 256 bn, which is about 2.5 times its consolidated FY10 sales. This gives some indication about the revenue visibility going forward. But at the same time, one should also factor in the execution issues related to construction projects.

Consumer durable stocks are trading in the green with VIP Industries and Gitanjali Gems leading the gains. However, Blue Star and Videocon Industries are trading in the red. Voltas Ltd expects its topline to grow by 35-40% YoY in FY11. It should be noted that Voltas managed revenues of Rs 48.3 bn in FY10. Although, right now the volumes take off has been moderate because of the monsoons, it is expected to pick up soon as the festive season begins. Despite strong guidance on the topline front, the company expects margins to remain under pressure due to stiff competition and higher input cost. In order to ward off raw material price inflation, the company had taken price hikes in the range of 2-3% over the last two months. However, it was not in a position to pass on the entire hike due to stiff competition. Prices of key raw materials such as metals and chemicals have increased dramatically over the last few months. In such a scenario retaining margins could prove to be a challenge for Voltas.

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

Read the latest Market Commentary


What else is happening in the markets today? Dig in...

Equitymaster requests your view! Post a comment on "Smallcaps in demand at the moment". Click here!

  

Stock Market Updates

Bloodbath on Dalal Street: 6 Reasons Why Sensex Nosedived 1,939 Points Today (Today's Market)

Feb 26, 2021 Closing

Indian share markets end deep in the red with the Sensex down by 1,939 points and the Nifty ending down by 568 points.

ONGC Share Price Down by 7%; BSE OIL & GAS Index Down 4.0% (Today's Market)

Feb 26, 2021 03:34 PM

ONGC share price is trading down by 7% and its current market price is Rs 118. The BSE OIL & GAS is down by 4.0%. The top gainers in the BSE OIL & GAS Index is CASTROL INDIA (up 1.3%). The top losers are ONGC (down 7.1%) and GAIL (down 6.3%).

ULTRATECH CEMENT Share Price Down by 5%; BSE 500 Index Down 3.4% (Today's Market)

Feb 26, 2021 03:30 PM

ULTRATECH CEMENT share price is trading down by 5% and its current market price is Rs 6,487. The BSE 500 is down by 3.4%. The top gainers in the BSE 500 Index are SOUTH IND.BANK (up 10.4%) and JAGRAN PRAKASHAN (up 10.0%). The top losers are ULTRATECH CEMENT (down 5.0%) and BAJAJ FINSERV (down 6.3%).

JAGRAN PRAKASHAN Share Price Up by 10%; BSE 500 Index Down 3.2% (Today's Market)

Feb 26, 2021 03:26 PM

JAGRAN PRAKASHAN share price is trading up by 10% and its current market price is Rs 60. The BSE 500 is down by 3.2%. The top gainers in the BSE 500 Index are JAGRAN PRAKASHAN (up 10.1%) and RCF (up 11.0%). The top losers are MAHINDRA CIE AUTO. and AJANTA PHARMA (down 0.1%).

UPL Share Price Down by 5%; BSE 500 Index Down 3.2% (Today's Market)

Feb 26, 2021 03:26 PM

UPL share price is trading down by 5% and its current market price is Rs 589. The BSE 500 is down by 3.2%. The top gainers in the BSE 500 Index are RCF (up 11.0%) and SOUTH IND.BANK (up 10.4%). The top losers are UPL (down 5.4%) and BAJAJ FINSERV (down 6.2%).

ICICI LOMBARD GENERAL INSURANCE Share Price Down by 5%; BSE 500 Index Down 3.2% (Today's Market)

Feb 26, 2021 03:26 PM

ICICI LOMBARD GENERAL INSURANCE share price is trading down by 5% and its current market price is Rs 1,479. The BSE 500 is down by 3.2%. The top gainers in the BSE 500 Index are RCF (up 11.0%) and SOUTH IND.BANK (up 10.4%). The top losers are ICICI LOMBARD GENERAL INSURANCE (down 5.2%) and BAJAJ FINSERV (down 6.2%).

View More Indian Share Market News

Most Popular

It's the Beginning of a New Bull Phase in Smallcaps(Profit Hunter)

Feb 24, 2021

Last time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.

Intraday Trading for a Living(Fast Profits Daily)

Feb 15, 2021

In this video, I'll cover your queries on intraday trading and also share my view on how to decide stop losses and target prices.

Top 5 Stocks Mutual Funds Bought and Sold in January 2021(Sector Info)

Feb 16, 2021

A look at what India's top equity mutual funds bought and sold in January 2021.

I Would Recommend this Small-cap Stock Over Tesla(Profit Hunter)

Feb 16, 2021

Do you enjoy reading Tesla and Bitcoin stories? Here's a not so famous small-cap stock to profit from the rise of EVs.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Feb 26, 2021 (Close)

MARKET STATS