Cairn India outperforms in a weak market; Vedanta dips 1%

Investors remain wary ahead of the key results to be posted by some of the largecaps including Lupin, Wipro and GAIL

Markets are trading lower as investors remain wary ahead of the key results to be posted by some of the prominent largecaps including Lupin, Wipro, Bajaj Auto and GAIL. Market participants will continue to keenly watch the developments in the Indian Parliament with the Modi government hopeful of the passage of the GST Bill during the present Monsoon session. 

At 11:45 AM the Sensex was at 28,411, down by 94 points and the Nifty was at 8,599, lower by 34 points.  The broader markets are however hogging investor’s interest, with the midcap ands smallcap indices gaining 0.1% and 0.7% respectively. And the market breadth is strong, with 1,409 advances versus 999 decline.

SMART RALLY

Shares of Cairn India rallied nearly 7% on the NSE, on media reports that Britain's Cairn Energy Plc is set to vote against Vedanta buyout offer for Cairn India's minority shareholders.

RUPEE

The rupee dropped by 14 paise to 63.71 against the US Dollar due to sustained dollar demand from banks and importers amid higher dollar overseas.

RESULT CAPSULE

Some of the notable companies due to post their results today are Wipro (down 0.8%), GAIL (up 0.5%), Lupin (down 1%), Biocon (up 1%), United Spirits (down 0.2%), Indian Bank up 0.6%), Rallis India (0.8%). 

RESULT IMPACT

Ceat is up 8% after the company reported a 134.2% increase in net profit in the June quarter to Rs.121.01 crore compared with Rs51.67 crore a year ago.

Bajaj Finserv climbs 4% after the company reported a 46% jump in net profit in the June quarter aided mainly by robust profit from life insurance business.

Container Corporation of India has shed 3.6% after the company reported a 21% decline in net profit to Rs.206.9 crore in the June quarter compared with Rs.261.88 crore a year ago.

Alstom India is up 3.2% after the company reported 46.3% decline in net profit in the June quarter to Rs.8.05 crore compared withRs.14.99 crore a year ago.

KPIT Technologies has rallied 12.3% after the company posted consolidated net profit of Rs.44.4 crore in the June quarter, down 11.7% from a quarter ago.

Bajaj Auto has shed nearly 3% post its quarterly results as the company’s operating profit failed to meet the street expectations.

SECTORS & STOCKS

On the sectoral front, BSE Bankex, FMCG and Power indices are losing sheen, however BSE Consumer Durables, IT, Realty indices are gaining up to 1%.

Tata Steel dips over 3% on weak industry outlook with the global crude steel output slipping 2%. Among its peers, Hindalco and Vedanta have lost up to 1%.

FMCG shares are reeling under pressure in today’s trade. HUL and ITC are down  2% and 0.4% each.

Among other notable gainers include Dr Reddy’s Lab, M&M, Maruti Suzuki, Infosys up between 0.5-2.5%.