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Thursday, 12 July 2012

Stock tips | TCS rubs salt in Infosys' wounds with strong Q1 earnings


India's top software services provider Tata Consultancy Services reported slightly better-than-expected results for April-June, a stark contrast to its rival and number two Infosys , which had earlier in the day disappointed the street with a lower-than-expected quarterly profit and cut its full year US dollar revenue guidance sharply.

TCS first quarter net profit rose 38% year-on-year (12% sequentially) to Rs 3,280.5 crore, while revenue was also up 38% (up 12% quarter-on-quarter) to Rs 14,869 crore.

Analysts on average had expected TCS net profit at Rs 3,250 crore on revenue of Rs 14,806 crore, according to a CNBC-TV18 poll.
Bangalore-based Infosys had reported a lower-than-expected 33%year-on-year (down 1% sequentially) rise in first quarter net profit at Rs 2,289 crore, while revenue was barely in-line at Rs 9,616 crore, up 29% (up 9% quarter-on-quarter).
Infosys had flagged off some pricing pressures, slower IT spends and currency volatility for its poor performance.
TCS also said that unprecedented currency volatility continued to be a challenge in the short-term, but it continues to see good demand from global companies.
"We have seen strong secular growth across all our service lines and industry segments driven by robust volumes from key markets like North America, Europe and UK...Looking ahead, TCS continues to see good demand from global corporations as they successfully navigate an increasingly complex environment," said N Chandrasekaran, TCS' CEO and MD.
TCS said in the first quarter, growth was seen across all industry segments led by retail, telecom and BFSI (Banking, Financial Services and Insurance).
The company added 29 new clients in the quarter ended June 30. Aong key deal wins included a USD 100 million contract with a leading North American retailer, a multi-million dollar managed services contract by a North American communications solutions provider and a multi-year contract from an Australian financial institution.
TCS net added 4,962 employees in the quarter, taking its total employee strength to 2,43,545 on a consolidated basis.
Its utilisation rate, excluding trainees, was at 81.3%, while including trainees was at 72.3%.TCS shares closed at Rs 1,236, down 1.8% on NSE on Thursday. The results were after the markets closed.
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Sensex closes 257 pts down; Infosys tanks 8% on weak Q1 nos


The BSE Sensex fell as much as 308 points intraday on Thursday as sentiment was dented by Infosys' disappointing earnings for the June quarter and weak global cues. Even rumours of unlikely rate cut by the RBI added fuel to the fire.
The BSE benchmark slipped 256.59 points or 1.47% to close at 17,232.55 and the NSE benchmark dropped 71.05 points or 1.34% to 5,235.25 after hitting an intraday low of 5,217.70.
The BSE IT Index, which has major weightage (of more than 14%) after finance sector, tanked over 5% after software bellwether Infosys' results disappointed the street on every count. The stock fell more than 8% to Rs 2,260 as company's net profit dropped 1.16% quarter-on-quarter to Rs 2,289 crore whereas analysts on average had expected around Rs 2,448 crore.
Even the guidance for financial year 2012-13 was lowered by the company saying a large transformational project from a European utility company was cancelled in the quarter (worth approximately USD 15 million) which impacted the numbers and the guidance, according to Barclays Bank.
Infosys expects a growth of at least 5% in revenues (in dollar terms) of USD 7.343 billion whereas analysts had expected around 6-8% and the company itself had forecasted 8-10% growth in April. Barclays Bank says, the lack of near-term visibility has caused the company to not give guidance for the September-12 quarter.
But its rival TCS, country's largest software services exporter, relatively outperformed Infosys with loss of just 1.8% ahead of its first quarter earnings today post market hours.
TCS has outperformed Infosys over the last few quarters and with Infosys failing to meet expectations yet again, the gap between the two could widen further. Analysts on average expect TCS' profit after tax to grow 11% quarter-on-quarter to Rs 3,250 crore while revenue is seen up by 12% to Rs 14,806 crore.
Among other technology companies, Wipro tanked 4% and Hexaware Tech lost 4.5%. HCL Tech declined 2.6% and Tech Mahindra was down 1%.
On the economic data front, industrial output data for May has improved to 2.4%, but the April output revised to negative 0.9% from 0.1% (provisional) earlier that also dampened the mood. Capital goods and mining sectors' growth was negative during the month while manufacturing, electricity and consumer goods reported lower growth as compared to a year ago period.
Now all eyes are on inflation (that will be announced on Monday); market experts expect around 7.5%. Aditi Nayar, Senior Economist, ICRA says, "Drawing upon the guidance provided recently by the RBI, inflationary concerns are likely to dominate monetary policy in the near term. With a low probability of any meaningful easing of retail or wholesale inflation in the forthcoming data for June 2012, the RBI may maintain policy rates at current levels in the first quarter policy review."
Country's largest private sector lenders ICICI Bank and HDFC Bank were down around 1% while State Bank of India ended flat.
Engineering and construction major by sales Larsen & Toubro lost 1.75% and cigarette major ITC declined 0.85%.
Top telecom operator Bharti Airtel slipped 3% and index heavyweight Reliance Industries was down 0.6%. Commercial vehicle manufacturer Tata Motors and top utility vehicle maker tanked 2% each whereas two-wheeler major Hero Motocorp moved up 0.88%.
However, PSU oil & gas companies outperformed - ONGC gained 1.4% and GAIL was up 0.6%. HPCL, IOC and BPCL rose 1-3% after sources from the oil ministry said diesel is likely to be hiked after Presidential polls, reports CNBC-TV18 quoting NewsWire18.
In the second line shares, Indiabulls Real, Shree Renuka Sugars, Bajaj Hindusthan, Karnataka Bank and Dhanlaxmi Bank were up 1-4%. Onmobile Global rallied 5%.
CMC rose more than 11% after stellar performance in first quarter numbers. However, IVRCL, HCC, NCC, Idea Cellular, Jain Irrigation and VST Industries were down 2-4%.
About two shares declined for every share advancing on the National Stock Exchange.
On the global front, France's CAC, Germany's DAX and Britain's FTSE went down 0.6-1%, taking their cue from poor overnight showings by Wall Street and Asia after minutes of the U.S. Federal Reserve's June meeting dampened hopes for more risk-asset-boosting stimulus in the near term. The Dow Jones futures too lost nearly 100 points.
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Wednesday, 11 July 2012

Nifty trend 12 July 2012


Expected Expiry : We, feel...this July, Month, Expiry Should Take, anywhere around, 5370 - 5410.00
So, Make Ur Strategy, Accordingly......!!!
Today's Levels
Well.......Today's Below.............5320.00  things, not looks superb for NIFTY FUTURE, below that Mark...NIFTY FUTURE, may try to hit, 5295.00 and than..................5273.00.....too in Today's Trading Session........
Things, will be worsen, but only and only below.......5260.00 Mark, below that MARK, Nifty Future, may try to hit, 5230.00 and than...5212.00 too in days to come.
Levels for Bulls...
Well.......Today's Above............5323.00 Mark.things will be charge once again, and than..NIFTY FUTURE, may try to hit, 5343.00 and than..5363.00 too in Today's Trading Session.............!
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Stock market tips update 2.20 pm|Stock tips


The markets are trading at day?s low and barring consumer durables and capital goods, all sectoral indices are trading negative. The Sensex is trading at 17472, down 147 points from its previous close, and the Nifty is at 5306, down 39 points. The CNX Midcap index is down 0.3% and the BSE Smallcapindex is down 0.1%. The market breadth is negative with advances at 561 against declines of 853 on the NSE.
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Stock market news| MCX to launch currency options trading in one month


Shares of Financial Technologies India and MCX today shot up about 9.5%, after capital market regulator Sebi granted permission to their entity MCX-SX to operate as a full-fledged stock exchange.
FTIL shares surged 9.49% to touch a high of Rs 824.90 on the BSE. Similarly, shares of MCX soared 7.7% to Rs 1,246.20.
FTIL and MCX are the promoters of MCX Stock Exchange (MCX-SX).
Speaking at a press conference today, Joseph Massey, MD & CEO of MCX said that the firm will start the process of setting up an exchange soon.
Yesterday evening, Sebi granted permission to MCX-SX to operate as a full-fledged stock exchange, ending nearly 4-year-long wait of the bourse to enter the business – a move that will bring in more competition in markets.
MCX-SX was first granted recognition by Sebi in September 2008, but it was allowed to conduct trading only in the currency derivatives segment.
With the approval, MCX-SX would be able to offer additional asset classes such as equity and equity F&O (Futures and Options), interest rate futures and wholesale debt segments.
MCX plans to launch currency options trading in one month, Massey told reporters. "The listing of exchanges will bring in transparency," he said adding, the timeline for  stock exchange will be announced post next board meet.    
At present, Sebi has granted permanent recognition to eight stock exchanges in the country, but only two of them -- BSE and NSE (National Stock Exchange) -- are operating as active national level bourses across the segments.
MCX is the country's largest commodity exchange, while its promoter FTIL offers technology and other solutions for exchange businesses.
Meanwhile, in the broader market, the BSE 30-stock Sensex was trading at 17,554.21, down 64.14 points at 1105 hrs.
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Stock market news update |'Mkt hinging on hopes of govt action within 30-45 days'


Some may have been surprised by the strength the Indian equity market has shown over the past few weeks, but Samir Arora of Helios Capital isn’t one of them. He believes this rally was expected because focus had shifted to domestic cues after the European Summit. And since there was a bullish sentiment in India, he says the market was bound to move higher.
However, he warns that the rally will only continue as long as there are hopes of some policy action from the government. Change in guard at the Finance Ministry post Pranab Mukherjee’s resignation led to hopes that we were going to see Prime Minister Manmohan Singh bring about a few key policy changes. The market too was buoyed by these hopes. But, Arora says the government should use this window of opportunity to make important decisions within the next few months, or the sentiment on the street will fizzle out.
“If they don’t use this window, then all the threats of downgrade and the threats of the Reserve bank will come through and will lead to total pressure on the government and on the Congress party,” he said.
Furthermore, the failure of the government to deliver could trigger a sharp correction in equities, he said.
Below is an edited transcript of his interview with Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video.
Q: Did you see the kind of strength we have seen on the market screen this last fortnight coming, and what's your sense of where it could be headed?
A: It was little bit expected. As soon as the European problem got solved or there were expectations that it will be stabilized, the issue came back to India, and in India we are definitely bullish right now. This is on the basis that the government has a window of opportunity which they will use. If they don’t use this window, then all the threats of downgrade and the threats of the Reserve bank will come through and will lead to total pressure on the government and on the Congress party.
Also, you can see that the Prime Minister is proactively going out and giving interviews. It would make no sense from his point of view if in the end they are going to do nothing about it, because he would not raise hopes unnecessarily.
I think this window is only for two months. The window is there for the time when the PM is still acting as the FM, because say after 2-3 months a new politician becomes the FM and some thing should be done before that.
Q: So how are you tactically positioning yourself given expectations of some policy changes? Have you added a lot of high beta stocks to your portfolio?
A: The first thing to do is cut off our high beta shorts. For the moment we have added only to the larger cap longs and in the futures in infra and financials because if at all something happens it will all lead to a interest rate cut by the RBI.
The problem is that after say 19th July every day will be counted and so I don’t think the government will be given more than 30-45 days to do something which should be very visible. They cannot do simple things after this because that should have been done at any time in the last three years. So right now we don’t really care about which stock or whether we make the highest return in that period, but we want to participate in that run if it happens.
But on the other hand, we are very willing to go on the other side if say by in 60 days nothing happens. If a new FM comes in who doesn’t seem to be very well known to the financial markets, then you can’t do anything. The only thing that will help is that if oil is USD 60 per barrel, otherwise it will be total disaster for India.
Q: Where should the bar be set at with respect to policy expectations, what has the market priced in? And what would be a prudent kind of expectation purely from a market perspective?
A: You can see that it is longer term money which has been waiting for some action, so I'm not the only guy betting on this right now and I will not be the only guy who will become negative if nothing happens in the next 2-3 months. So it is not that I’m a guy with a different view; there is a general view that the government has a window that they themselves have been creating. They were waiting for a political environment or a political opportunity.
It would be unreasonable to think that they will use new equations to get their Presidential candidate through, but after that they will revert to the old equations where they say they cannot do anything without TMC. If they can get their Presidential candidate through, then the same equations have to be used to have an oil price hike and may be FDI in retail or something. They can’t suddenly say that they don’t have a coalition partner who is not agreeing. The coalition partners did not agree to their Presidential candidate but they still pushed it through. So the same thing should be done for some other decisions.
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Tuesday, 10 July 2012

Stock tips news update 12.00 pm


The markets are still trading rangebound with moderate declines. The Sensex is trading at 17563, down 55 points from its previous close, and the Nifty is at 5331, down 14 points. The CNX Midcap index is up 0.2% and the BSE Smallcap index is up 0.4%. The market breadth is positive with advances at 742 against declines of 587 on the NSE.
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