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NMDC falls after weak Q2 outcome

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Last Updated : Oct 25 2013 | 11:57 PM IST

Key benchmark indices trimmed initial losses triggered by negative Asian stocks. The S&P BSE Sensex was down 22.27 points or 0.11%, up 58.16 points from the day's low and off 27.35 points from the day's high. Cairn India edged lower on turning ex-dividend today, 25 October 2013. NMDC fell after reporting weak Q2 result. Idea Cellular slipped after declaring Q2 result. The market breadth, indicating the overall health of the market, was positive.

Foreign institutional investors (FIIs) bought shares worth a net Rs 991.83 crore on Thursday, 24 October 2013, as per provisional data from the stock exchanges.

At 9:21 IST, the S&P BSE Sensex was down 22.27 points or 0.11% to 20,703.16. The index lost 80.43 points at the day's low of 20,645 in early trade. The index rose 5.08 points at the day's high of 20,730.51 in early trade.

The CNX Nifty was down 12.25 points or 0.2% to 6,152.10. The index hit a low of 6,133.85 in intraday trade. The index hit a high of 6,157.10 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 413 shares gained and 368 shares fell. A total of 48 shares were unchanged.

The total turnover on BSE amounted to Rs 149 crore by 09:30 IST.

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Among the 30-share Sensex pack, 21 stocks declined and rest of them gained. GAIL (India) (down 1.82%), M&M (down 1.47%) and Bhel (down 1.16%) edged lower from the Sensex pack.

Infosys rose 0.13%. The company announced after market hours on Thursday, 24 October 2013 that the head of its banking services solution platform Finacle, Haragopal Mangipudi, and 11 others have been inducted to its top decision-making body, the Executive Council.

The Council is the company's top-level body, which is responsible for strategic decision-making.

It includes the company's executive board, the heads of its key business units and strategic business-enabler units, the company said in a filing with the Bombay Stock Exchange and the U.S. Securities Exchange Commission.

The head of the company's Growth Markets segment, Dheeshjith V. G., Eric Paternoster, Ganesh T. Gopalakrishnan, Ganesh Thakkar, Jackie Korhonen, Manish Tandon, Muralikrishna K, Ravi Kumar S, Ronald Hafner, Sanjay Jalona and Subrahmanyam Goparaju have been appointed as members of the Council.

The appointments would take effect from November 1, the company said. Those appointed would be entitled to an annual allowance of $150,000. The council at present has a strength of 16 members and the expansion is the biggest since N. R. Narayana Murthy returned to assume leadership of Infosys.

HDFC Bank shed 0.16%. The bank said after market hours on Thursday, 24 October 2013 that the bank, acting through its Bahrain branch, has priced on 23 October 2013, $500 million Fixed Rate Senior Unsecured Notes (Notes) under its $2 billion MTN programme. The Notes carry a coupon of 3% per annum payable semi annually and are maturing on 30 November 2016. The Notes will be listed on the Singapore Stock Exchange.

TCS rose 0.97%. The stock turned ex-dividend today, 25 October 2013, for a second interim dividend of Rs 4 per share for the year ending 31 March 2014.

Cairn India lost 2.01% on turning ex-dividend today, 25 October 2013 for an interim dividend of Rs 6 per share for the year ending 31 March 2014.

NMDC fell 2.64% after net profit declined 21.46% to Rs 1318.36 crore on 5.53% fall in total income to Rs 3018.29 crore in Q2 September 2013 over Q2 September 2012. The company announced result after market hours on Thursday, 24 October 2013.

The company's production of iron ore rose over 10% to 5.94 million tonnes (MT) while sales of iron ore rose about 11% to 6.50 MT in Q2 September 2013 over Q2 September 2012.

NMDC said that it has planned capital expenditure of Rs 2720 crore including Rs 100 crore for overseas acquisitions for the year ending 31 March 2014. So far, the capital expenditure of Rs 1125 crore has been incurred.

The installation of 3 MTPA steel plant at Nagarnar in Chhattisgarh, as part of NMDC's forward integration programme and value addition, is being pursued vigorously. Orders for major technological packages have already been placed, other auxiliary packages are in advanced stages of finalization and construction works of the major packages are being undertaken on war footing, the company said.

As part of its expansion programme, NMDC is developing two new mines, one in Bailadila Sector in Chhattisgarh i.e. Deposit-11B Iron Ore Project and the other in Bellary-Hospet region in Karnataka i.e. Kumaraswamy Iron Ore Mine. Besides, orders have already been placed for setting up of 1.2 MTPA capacity Pelletisation plant in Karnataka.

C.S. Verma, CMD of NMDC said, "NMDC is gearing up to ramp up its production and dispatches vigorously which is evident from these results. Inspite of adverse conditions, NMDC has outperformed by showcasing growth in both production and dispatches. The resilient nature of NMDC would ensure to cope up with the challenges and would create new opportunities for sustainable growth."

Idea Cellular slipped 1.26%. The company after trading hours on Thursday, 24 October 2013, said its profit after tax (PAT) rose 13.2% to Rs 398.50 crore in Q2 September 2013 from Rs 351.90 crore (despite including Rs 154.30 crore dividend from Indus) in Q2 September 2012. Revenue jumped 18.1% to Rs 6317 crore in Q2 September 2013 over Q2 September 2012. Revenue growth and scale benefit translated into healthy EBITDA margin of 27.6% in Q2 September 2013. EBITDA margin registered year-on-year (YoY) improvement by 4%, the company said.

The company's consolidated profit after tax (PAT) jumped 86.5% to Rs 447.60 crore in Q2 September 2013 over Q2 September 2012. Revenue, including 16% Indus contribution rose 19% on YoY basis in Q2 September 2013. The consolidated EBITDA margin of 31.2% in Q2 September 2013 is a YoY improvement of 4.4%, Idea Cellular said. The company announced Q2 result after market hours.

As competitive intensity in the telecom sector declines and as the overcapacity phase comes to an inevitable end and also as visibility of spectrum quantum and pricing improves, Idea Cellular expects to further consolidate its position in the telecom voice and data market, the company said in a statement.

Asian markets declined as forecasts from Canon Inc. to Posco disappointed investors. Key benchmark indices in Taiwan, Hong Kong, China, Singapore, Japan, Indonesia and South Korea fell by 0.12% to 1.19%.

South Korea's economic growth maintained the same robust pace in the third quarter as the preceding quarter, beating market expectations and bolstering hopes that Asia's fourth-largest economy stays on a recovery track.

Gross domestic product rose a seasonally adjusted 1.1% in the July-September period from the previous quarter, when the economy grew at the same pace, the Bank of Korea said Friday. That is the strongest pace since the first quarter of 2011, when the economy grew 1.3% on quarter. On a year-on-year basis, the economy expanded 3.3% in the third quarter, accelerating from the second-quarter's 2.3% gain.

Japan chalked up a fourth month in a row of core consumer inflation in September, with a leading indicator for October prices showing a milder rise. The nationwide core consumer price index, which excludes volatile fresh-food prices, rose 0.7% from a year earlier, little changed from August's 0.8% increase. The index was up 0.1% on a monthly basis.

US stocks climbed on Thursday, with the S&P 500 gaining a day after halting a run to a record high, as economic data underscored views US monetary stimulus will be in place for long time.

The preliminary reading of Markit's US flash manufacturing purchasing managers index slipped to 51.1 in October from 52.8 in September, the lowest level for a year. Readings above 50 indicate expansion and the PMI in October signals only modest manufacturing growth.

The Federal Open Market Committee (FOMC) holds a two-day policy meeting on 29-30 October 2013. On 18 September 2013, the Fed surprised economists and investors with its decision to delay scaling back its stimulus amid concerns about the strength of the economic recovery.

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First Published: Oct 25 2013 | 9:30 AM IST

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