Low and behold

There is little to cheer about in the Diwali run up

Negativity was seen ruling the markets last week. Nifty may trade in a broader range of 7800-8205 this week, where minor support lies at 7900. The strong support of Nifty is at 7800. Your Nifty strategy for the week is buying Nifty 8000 call, and, selling two lots of 8400 call.

Nandan Denim Ltd announced its earnings. The company’s net profit showed a jump of 30.5 per cent. The net profit of the company stood at Rs 15.61 crore in the second quarter ended September 30 2015-16, compared to Rs 11.95 crore in the same quarter last year.

Sales for the same period stood at Rs 294.53 crore against Rs 276.94 crore in corresponding period, last fiscal. For the six months ended September 2015, the company reported a net profit of Rs 31.11 crore, compared to a net profit of Rs 23.43 crore, in the same period, last year.

The net sales for the said period stood at Rs 575.04 crore, against Rs 540.63 crore in the corresponding period, last fiscal. The company reported an EBITDA and PAT margin of 17.2 per cent and 5.3 per cent respectively.

A few highs
Last week, Minda Industries came out with its earnings where the company’s net profit, after excluding tax adjusted exceptional items, has increased by 110 per cent on a yearly basis to Rs 26 crore, in the quarter that ended September 30, 2015.

The consolidated revenue rose by 19 per cent to Rs 652 crore, against Rs 546 crore, on a year on year basis. The operating margin was seen expanded by 294 basis points to 9.7 per cent in the period. The company manufactures auto components.

The country’s services sector activity rose to an eight month high, in economic data. This was on the back of a rise in new business orders. The Nikkei Business Activity Index for October climbed to 53.2 in the month, from 51.3 in September. A reading of 50 divides growth and contraction.

Also, the Nikkei India composite PMI output index which maps both manufacturing and services sectors, rose to 52.6 in October from 51.5 in September. Slower rise in the new business inflows made the manufacturing growth fall to a low in 22 months. The Nikkei India Manufacturing PMI stood at 50.7 in October as against 51.2 in September.

The figure, though, remained above the 50 mark which separates the growth from contraction. A sub index showing the new orders, dropped to a two year low of 51.2 from 52.5 in the period under review.

The core score
Data released in the week showed that the core sector growth rose to a four month high in September but two of the sectors — steel and cement contracted. The core sector data rose to 3.2 per cent, in the period under consideration, compared to 2.6 per cent in October.

The sectors, accounts for 38 percent of the IIP, includes coal, crude oil, natural gas, refinery products, fertilizers, steel, cement and electricity. In the first six months of the current fiscal year, core industries grew by 2.3 per cent, compared to 5.1 per cent, in a year ago period.

The fertilizer sector rose by 18.1 per cent, whereas the electricity generation was at 10.8 per cent. Steel production was down by 2.5 per cent and the cement production also declined by 1.5 per cent in September. On the global front, market movements were mainly on the basis of mixed economic data and earnings.

Also in focus, was the decision interest rates from central banks around the globe. On the US front, business optimism index, retail sales, consumer sentiment, initial and continuing jobless claims are the triggers for this week. Balance of trade, industrial production and GDP are the triggers in the Euro zone area.

For Indian markets, industrial production, inflation and manufacturing production are important data. In the earnings corner, some companies like Tata power, Timken, Kohinoor, OIL, Graphite, Coal India, BPCL, Bliss GVS, DCM, TI, Repro, NMDC, JKIL, Venus Remedies, MMTC, EID parry, Eveready, CESC, Apollo Hospital, Infinite comp, Simplex Infra and Rajesh Exports may announce their earnings.

Disclaimer: No financial information whatsoever published anywhere in this newspaper should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is for educational and information purposes only and under no circumstances should be used for actual trading or making investment decisions.

Readers must consult a qualified financial advisor prior to making any actual investment or trading decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at his or her risk.

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