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 flat with a positive bias
Thu, 28 Oct 11:30 am

After starting today's session on a positive note, Indian indices have managed to hold on to their gains. However, other key Asian markets are trading mixed. Currently, heavyweights in the Sensex are trading mixed with stocks from the technology and oil & gas space leading the gains. However, realty and power stocks are in the red.

Currently, the BSE-Sensex is trading up by around 42 points, while the NSE-Nifty is up by about 15 points. There has been some buying interest amongst the mid and small cap stocks as well with the BSE-Midcap and BSE-Smallcap indices trading higher by 0.1% and 0.3% respectively. The rupee is trading at 44.48 to the US dollar.

Hotel stocks are trading mixed with Indian Hotels and Hotel Leela leading the gains. However, Taj GVK and Oriental Hotels are trading in the red. Indian Hotels plans to raise Rs 8.5 bn by issuing shares and warrants to the promoter company, Tata Sons. The proceeds will be used to retire debt and strengthen the balance sheet. The board has approved issuance of 36 m equity shares and 48 m convertible warrants as preferential allotment to the promoters. It may be noted that Indian Hotel's consolidated debt stands at Rs 42.1 bn. Repayment of debt through issue proceeds is likely to reduce interest burden and improve profitability. The company also plans to incur a capex of Rs 3.5 bn and has adequate liquidity in place. It may be noted that post the preferential allotment promoters' holding in Indian hotels will go up to 37.5% from 30.2%.

Paint companies are trading firm led by Asian Paints and Kansai Nerolac. Asian Paints declared its 2QFY11 results. The company's topline grew by a muted 5% YoY during the quarter as a result of monsoons which delayed construction activity during the period. Operating margins of the company declined by 0.4%, during the quarter to stand at 18.7%. This dip was due to higher raw material costs faced by the company. The price of titanium dioxide, which is a key raw material, has been on the uptick recently and this put pressure on margins. Net profits declined 20% YoY during the quarter on the back of lower other income, higher depreciation and increase in minority interest. However, the company has declared an interim dividend of Rs 8.5 per share.

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 flat with a positive bias". 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.