10 stocks in focus - Moneycontrol

 

Indian Markets

Our markets closed in the red with the Nifty below 5,250 pulled lower by technology and banking counters. 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 an unlikely rate cut by the RBI added fuel to the fire.

TCS versus Infosys Earnings Results

The finance sector had a bad day yesterday, tanking over 5% after Infosys' results disappointed the street. The stock fell more than 8% to Rs 2,260 as the software bellwether’s net profit dropped 1.16% QoQ to Rs 2,289 crore.

Even the guidance for FY13 was lowered, 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 a Barclays Bank report.

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%. The company had forecasted an 8-10% growth in April.

But rival TCS, relatively outperformed Infosys with a loss of just 1.8% ahead of its first quarter earnings yesterday 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 may widen further. Analysts on average expect TCS' profit after tax to grow 11% quarter-on-quarter to Rs 3,250 crore while revenue are 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% yesterday.

Stocks Making News Today

SKS Microfinance launched its QIP late last night to raise up to Rs 278.5 crore at Rs 75.40 a share. This will be at a 17% discount to yesterday's closing price. The company has said that funds will be used to augment the capital base of the company and to support business expansion. The book closes at 8.30 am today morning.

At the crucial EGoM meet yesterday, telecom minister Kapil Sibal hinted at approaching the Supreme Court for a possible extension of the spectrum auction deadline. The original deadline for the spectrum auction was August 31.

The DGCA’s new chief Prashant Sukul has said that the government is not contemplating the closure of any airline, reports the PTI. 
 
The Andhra Pradesh Pollution Control Board has asked 12 pharma units to shut down. Aurobindo ,Divi's Lab , SMS Pharma’s AP units get closing orders.

Cash-strapped MTNL is looking for new revenue sources. The telecom giant is considering selling its land bank, leasing out its network, considering voluntary retirement scheme (VRS) for its employees, and even restructuring its loans.

On the latest monsoon update, the Met department has said that nearly 64 mm of rains were recorded for the week to July 11 which is 1% above normal.

3i Infotech has allotted 24.62 lakh shares to Goldman Sachs on July 12 on conversion of FCCB’s.

L&T expands its capacity with new electric and automation facility at Vadodara.

GTL has allotted 38.3 lakh zero coupon CCD’s of FV Rs 100 to its promoters.

Bosch will shut its Bangalore plant on July 13 and 14 to avoid buildup of inventory.

Max Alert’s stock will list on July 13. The issue price is Rs 20 a share.

Eon Electric will issue 8.45 lakh warrants on preferential basis to promoters.

In a CNBC-TV18 exclusive, Diageo is set to pick a majority stake in United Spirits .

The UP government has put on hold Reliance Power ’s Rosa thermal power project, reports the Financial Express.

JSPL raises Rs 3500 crore to fund the Odisha Steel project, reports the Economic Times.

Titan has spun off its third party luxury watch retailing arm into a separate co, reports the Business Standard.

Results Today

HDFC Bank Limited, Sintex Ind., AP Paper Mills, Sabero Organics, Jaybharat Maruti, Wendt India, Kajaria Ceramics, Global Vectra

Global Markets

Wall Street pared early session losses but still ended in the red on the back of global growth concerns. US markets rebounded off their session lows, with the Dow briefly turning positive as the S&P index of homebuilders jumped 2.4% and Merck helped lead a rally in healthcare shares. The Dow fell more than 100 points early in the session, turned it around later, but was never able to hold its ground.

On the US economic data front, jobless claims in the US dropped to 350,000 in just a week. The drop was more than what analysts had predicted. The 26,000 fall, means that jobless claims are at their lowest level in four years.

Europe too ended lower as investors cut exposure to global equities after a weak start to the US earnings season and ahead of the Chinese economic data.

Ratings agency Moody's cuts Italy's credit rating by 2 notches to BAA2 from A3 with a negative outlook as the economy faces higher funding costs and contagion risk from Greece and Spain. It could cut its bond rating further if the country loses access to debt markets.

Meanwhile, it's a soft start for Asia as investors await GDP, retail sales data and industrial production data from China. On a data heavy day, China is expecting its second quarter GDP number at 7.7% but there has been speculation it could be lower, especially since China cut interest rates for a second time last week.

Currencies & Commodities

In the currency space, the euro slipped to new two-year lows against the dollar as concerns about global economic growth and lowered expectations of near-term US Federal reserve action had investors wary of taking on risk. Meanwhile, the dollar index was inching close to the 84 mark.

In commodities, crude prices gained above USD 100 per barrel levels as the US announced new sanctions against Iran. Gold prices fell a tad bit but continued close to the USD 1,570 level in Asia trade.