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Index Trends And Stocks In Action October 31, 2014

The Indian market managed to close October series at an all time high. Volumes were on a spin as turnover surpassed over 10 lakh crore on the back of short covering witnessed in the IT heavyweight like Infosys, TCS, HCL Tech. In our last write up we mentioned most of the momentum indicators have turned positive and market is likely to surge to new high and this was in line with our expectation. Now going forward the momentum is likely to continue along with some consolidation. Nifty seems its heading to levels of 8280-8330 in short term. On downside major support for index is in band of 8120-8135.

Bharti Airtel (BSE Code: 532454) reported 170.2% jump in net profit in Q2FY15 at Rs 1,383 crore which is highest quarterly profit since March 2011 backed by a 74% increase in mobile data revenue in India as data volume doubled. Consolidated revenue grew 7.1% to Rs 22,845 crore in Q2 FY15 as compared with Rs 21,324 crore reported in the same quarter previous fiscal year. The stock may trade with a positive bias in today’s trade.

Ambuja Cements (BSE Code: 500425) reported a 44% jump in net profit for Q2 FY15 at Rs. 239 crore on improved sales realisation. The improved sales realisation helped the company to earn higher EBITDA at Rs. 393 crore as compared with the previous quarter of Rs. 269 crore, a growth of 46.1%. Net sales of the company rose to Rs. 2,188 crore during the quarter from Rs. 2,003 crore a year earlier, recording a 9.2% growth. While the growth in cement sales volume during the quarter was marginally lower, the net sales increased by 9.2% as compared to the previous quarter on account of improved sales realization. The stock may remain in focus in today’s trade.

IDFC (BSE Code: 532659) has posted a 14% drop in net profit to Rs 421 crore in Q2 FY15 due to sharp increase in provisions and operating expenses. Compared to the same period a year ago provisions including for the bad loans went up by 459% to Rs 281 crore while operating expenses went up by 43% to Rs 197 crore. The operating income of the company grew by 24% to Rs 1,101 crore. The Net Interest Income (NII) of the company declined by 6% to Rs 648 crore while the non-interest income expanded by 127% to Rs 449 crore. The Net Interest Margin (NIM) for rolling 12 months ending September 30 shrunk to 3.8% compared with 4% a year ago. Board approves demerger of financial undertaking of IDFC into IDFC Bank. IDFC will transfer its financial business into wholly owned step down subsidiary IDFC Bank. Existing shareholders of infra finance company will get one share of Rs 10 each for every one equity share of Rs 10 each held in IDFC. The bank is slated to commence its operations from October 2015. The stock may remain in focus in today’s trade.

Titan (BSE Code: 500114) has posted a net profit 28.6% to Rs 239.98 crore in Q2FY15. Its income from operations rose 55.7% to Rs 3,564.67 crore. The jewellery business grew nearly 65% to Rs 2,929.38 crore due to redemption of Golden Harvest accounts of customers that had to be closed due to regulatory changes. Income from watches was Rs 527.46 crore in Q2, compared with Rs 439.07 crore last year. The stock may remain in focus in today’s trade.Other businesses of the company comprising precision engineering, a B2B business, the eyewear segment and accessories grew 20.9% in Q2.

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