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?  

Metal stocks drag indices lower
Tue, 26 Oct 01:30 pm

After hovering around the dotted line since morning the benchmark indices slipped into the negative territory at noon. European markets have also opened on a negative note following the Asian trend. Currently, metal, banks and oil & gas stocks are under selling pressure whereas automobile and power stocks have showed some gains.

Currently, the BSE-Sensex is trading lower by 75 points, while the NSE-Nifty is down by about 20 points. The BSE-Midcap index is also trading lower by 0.3% while the BSE-Smallcap index is trading marginally higher by 0.3%. The rupee is trading at 44.42 to the US dollar.

The Indian Finance Minister expects the economy to grow at 8.25-8.75% in the current fiscal and to regain the pre-crisis GDP growth level of 9% average growth soon. Robust increase in gross tax revenue, higher than anticipated proceeds from the 3G and broadband spectrum sale as also the proceeds from disinvestment of PSUs are expected to help meet the fiscal deficit target.

Engineering stocks are currently trading weak led by Lakshmi Machine Works, Bharat Bijlee and Jyoti Structures. Stocks of sector heavyweights such as BHEL, Siemens, L&T and Suzlon are in the red as well. Engineering major Crompton Greaves declared its results for the quarter ended September 2010 recently. The company posted a consolidated revenue and profits growth of 10% YoY and 11% YoY respectively during the quarter. The growth in revenue was led by the company's 'consumer products', which grew by 24% YoY.

As for the largest business - the power systems segment - revenues grew by 7% YoY. This segment contributed to nearly 65% of the company's revenues as compared to 65% during 2QFY10. The company performed decently at the operating level with its margins contracting by 0.1% YoY to 13.9%. On the back of the topline growth as well as substantially higher other income, profits increased by 11% YoY during the quarter. As for the performance during 1HFY11, Crompton Greaves' revenues and profits were up by 7% YoY and 14% YoY.

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 "Metal stocks drag indices lower". 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.