Markets captured by bears on weak Q2 earnings; Nifty below 8100:
Markets extended the bear rally and dropped down the entire weak over weak global cues as well as weak earnings which led the indices to fall below their psychological support marks. Nifty closed below 8100 which indicates weakness may continue towards 8000 while it needs a closing above 8150 to gain strength.
HEADLINES FOR THE DAY:
- Aviations stocks were trading higher after the release of draft Civil Aviation Policy which proposed the FDI (Foreign direct investment) in domestic airlines from current 49% to over 50% and also other reforms such as tax incentives, 2% levy on domestic and overseas tickets, up gradation of airports etc.
- Shares of Dr Reddy’s laboratories gained on back of the Company’s plans to push the sales of Biosimilars (can be described as Copies of complex biotech drugs).
- Glenmark Pharmaceuticals received approval for its Lacosamide Tablets (generic version of Vimpat Tablets) by the United States Food & Drug Administration (USFDA).
- SPARC (Sun Pharmaceutical Advance Research Company) declined after the Government of India approved the company’s rights issue of Rs 250 Cr based on the recommendation of the Foreign Investment Promotion Board (FIPB).
- Asian Development Bank (ADB), IndusInd Bank (IBL) and IFMR Capital signed the second partial guarantee programs to fund microfinance institutions (MFIs) in India.
- Sadbhav Infrastructure Project Ltd completed acquisition for 60% equity stake from JV partner HCC Concessions Limited.
- Sun TV climbed about 9% after the announcement that the Board Of Directors would consider buying back the fully paid equity shares on November 5.
Q2 RESULTS CORNER:
- Larsen & Toubro (LT) witnessed sharp downfall of around 4% due to lower order inflow guidance while it posted increases in net profit by 15.5% (YoY) at Rs 996 Cr; Revenues of the company also grew by 10.6%.
- ITC declined by 5% as it missed the street expectations with Q2 profit rising to Rs 2431 Cr vs Rs 2425 Cr (YoY); Cigarette Revenue was up by 1.6% while Revenue from its Hotels dropped down 1.4%.
- Kotak Mahindra Bank up to increase in Q2 net profit by 28.1% to Rs 569.5 Cr (YoY); Gross NPA marginally increased to 2.34% vs 2.31% while Net NPA rose to 1.05% from 1.04%.
- Glenmark Pharma soared 5% on strong earnings in Q2 of 19.81% at Rs 197.78 Cr vs Rs 165.07 Cr (YoY); Revenues of the company were up 13.60%.
- ICICI Bank up as its Q2 net profit climbed 11.85% at Rs. 30.30 bn vs Rs 30.09 bn (YoY); Revenues grew by 8.18% to Rs. 161.06 billion from Rs. 148.88 bn(YoY).
- Apollo tires, closed with a loss of 6.2 % as the company reported that its Total Income decreased by 10.4 per cent to Rs.3, 014 Cr (YoY) while net profit showed 8% growth at 278.7 Cr v’s Rs.257.9 Cr (YoY).
- Indoco Remedies Q2 PAT for the quarter at Rs 22.6 Cr vs Rs 22.4 Cr (YoY) while Net Revenues were up by 9.4% at Rs 247.7 Cr against Rs 226.4 Cr (YoY).
- Karnataka Bank announced a 15.4 % rise in Q2 profit at Rs.102 Cr as compared to Rs.88.4 Cr (YoY) and total income has increased by 7.1%.
- Ajanta Pharma Ltd Q2 net profit stands at Rs. 99.9 Cr vs Rs. 83 Cr, an increase of 20.3% rise while total income rose by 17.7%.
- Century Textiles & Industries Ltd recorded a net loss of Rs. 242.60 mn vs net profit of Rs. 7.70 mn (YoY) while total income increased to Rs. 19618.00 mn.
- Ipca Laboratories Ltd net profit dipped by 80%, which stands at Rs. 116.90 mn against the net profit of Rs. 613 mn for the same quarter last year.
- Nestle traded marginally lower as the company’s Q2 profit dropped by 60% at Rs 124.2cr vs Rs. 311.3 cr (YoY).
- Thomas Cook tumbled 4% as the net profit dropped 36% at Rs 18.2 crore as compared to Rs. 28.6 crore(YoY).
- Crompton Greaves closed 3% down as the company recorded a net loss in this quarter at Rs. 521.40 mn vs Rs. 695.90 mn(YoY).
- State Bank of Travancore trades higher after jump in its net profit at Rs. 102.80 Cr.
- Emami Ltd Q2 net profit declined by 33% as the company posted net profit at Rs. 613.40 mn vs Rs. 915.20 mn (YoY).
Results on 2ns November 2015:
- ADANI ENTERPRISES, ADANI PORTS, ESCORTS, HINDUSTAN MOTORS, INDIA CEMENTS, INDIAN BANK, MONNET ISPAT, NILKAMAL LTD,ORIENTAL BANK, SONATA SOFTWARE, UNITED SPIRITS are coming up with its Q2 (Quarter 2) results on 2nd November, Friday.
What is the Stock Market?
The stock market is a platform where shares sell or buy through a broker or direct for trading, here a person who trade a share know as a trader and this process called trading. Trading perform in two variants such as online trading or offline trading. Trading is very risky or interesting business where knowledge is a main weapon by which you can win this war
Shares are a small part of a corporation. Shares issued by a registered company and can be sold or bought by traders and companies sometime through a broker or direct. Whenever shares buy into a company, the trader who buys this is the owner of this small part of that company. The share price can be depending on many factors such as on world economic condition, on the growth of the company who issued this share and other factors. The main important thing of pricing about share is that it depends upon balance between supply and requirement. If number of buyers is higher and they want to purchase a particular stock then the price goes to increase. On the other hand, if there is more number of sellers or demands of share is less than, the price goes to decrease.
Some traders deal stocks with the help of a stockbroker or some perform directly from online trading. A broker is a person who trades stocks for their client trader; basically they are intermediate between exchange and trader. A broker can also assist with customers for taking right trading decision with their expert tips like as Stock Tips and Option Trading Tips for stock market and Forex Tips for the forex market. Their suggestion is based on public reports about the companies.
Opinion from stockbrokers
A brokers counsel their customer on how to deal with their stocks. Some of the suggestions they give us:
BUY – This is the call to purchase the stock as soon as possible
HOLD – This is called to hold the stock for the appropriate moment.
SELL – This is call to sell the stock as soon as possible.
Stock markets usually process trade over a definite duration of time, and its trading days may be reflected in different region. The forex market is a very big part of share trading and extended all over the world, USA, China and Hong Kong is the main countries which are involved in forex trading. To become an expert trader, they need to know all the basic keywords related to share trading such as bear and bull market, stop loss and revenues. We are showing below some basic keyword.
Resistance – It is a stock’s price value on which sellers frequently emerges, therefore stopping a price raise. It is a good buying state when a stock breaks throughout resistance.
Support – It is a stock’s price value on which buyers frequently emerges, therefore stopping a price drop. It is a good time for selling stock when a stock breaks by support.
Stop Loss – It is an important trading tool which placed as order with a broker to sell a security if it achieved with a definite price point. This order is built to minimize an investor’s loss on a point in a security. Many expert investors employed a stop-loss order only for a long position with expert trading tips such as Stock Tips and Nifty Tips; it can also be employed for a small position.