Kotak Bank Q2 net up 2 pc% on higher interest income, margin

Private sector Kotak Mahindra Bank today reported 26 per cent rise in standalone net profit at Rs 353 crore in the quarter ended September 30, boosted by a healthy growth in interest income and strong margin. 

The total income increased to Rs 2,469.46 crore in the second quarter ended September 30 from Rs 2,174.50 crore a year ago. The net interest income jumped 22 per cent to Rs 924 crore from Rs 758 crore in the same period last year, it said. 

The key profitability gauge, net interest margin (NIM), which is the difference between interest a bank pays on deposits and which it earns on advances, rose 30 bps to 4.9 per cent during the quarter despite adverse market conditions. 

The private lender's total advances rose 11 per cent to Rs 50,609 crore as against Rs 45,443 crore a year ago. 

ICICI Bank Q2 PAT up 20% at Rs 2,352 crore

ICICI Bank Ltd, country's largest private-sector lender by assets, beat analyst estimates by posting quarterly profit gain of around 20.1 per cent, as an appetite for cars and homes led to higher credit growth. 

ICICI is trying to emulate the success of rival HDFC Bank Ltd with a renewed push into consumer loans as demand from the corporate sector slows in tandem with the economy. 

Net profit rose to Rs 2350 crore ($382.63 million) in July-September from a year earlier. That compared with a Rs 2190 crore estimate of 23 analysts polled by Thomson Reuters. 

Net interest income, or the difference between interest earned and paid, rose about 20 per cent to Rs 4040 crore, the bank said on Friday. 

Shares of ICICI, which the market values at $19 billion, fell 17.5 per cent in the September quarter, in line with the broader bank index. They were down 0.16 per cent at 0744 GMT, compared with the benchmark's 0.31 per cent. 

Sensex inches away from 21,000: Is it seeing a villain in Raghuram Rajan?

The Sensex is at a kissing distance from its all-time high of 21,004. Any day, any hour, India’s bellwether index can cross that mark. 

But the index is shying away from this historic milestone. 

Today, it is trading with losses of up to 270 points. 

All the major domestic and foreign factors having been taken care of as of now, the only major macro event from where the markets pick their next cue is the RBI’s policy meet on October 29, say analysts. 



“I’d say that the concerns that most of the emerging markets and CAD-challenged countries like India faced due to the fears of tapering, have receded. This has been the reason why positive trade has sort of played out in the emerging markets over the last few weeks; and we (India) have been a beneficiary of that. Also, concerns on the debt ceiling have sort of receded ... So broadly, these have been the reasons why the emerging markets, in general India, have done particularly well,” says,Ajay Bodke Head-Investment Strategist & Advisory, Prabhudas Lilladher. 

Till now, it was exclusively the fund flow from FIIs that was being credited for the market rally. But now analysts say it’s a broad-based momentum. 

Cairn India Q2 PAT up 46% at Rs 3,380 cr; sales below estimates

 Cairn India reported a net profit of Rs 3,380 crore for quarter ended September 2013 as compared to a net profit of Rs 2,320 crore in the corresponding quarter last fiscal. The PAT was above ET Now poll estimates of Rs 3,250 crore. 

However, the company reported net sales of Rs 4,650 crore, up 4.7 per cent against Rs 4,440 crore in the year-ago period. The ET Now poll expected it to be Rs 4,900 crore. 

Other income for the quarter slipped to Rs 111 crore, vs 222 crore in the same quarter last fiscal. The company reported forex gains of Rs 429 crore vs loss of Rs 785.8 crore. 

Its oil realisations for the quarter stood at $96.7 per barrel vs $98.1 per barrel, Year-on-Year. Gas realisations increased to $5.9/mscf vs $4.9/mscf, Year-on-Year. 

The management has said that it remains on track to achieve FY14 gross production of 225,000 boepd. It has planned $3 billion capex by FY16 and has spent $137 million in second quarter on capacity expansion. 

Niraj Mansingka, Associate Director- Wholesale capital markets, Edelweiss Financial Services, is of the view that while net profit was in line with expectations due to rupee depreciation, other income and revenues were below expectations. 

Wipro Q2 PAT at Rs 1932.1 crore, up 19% QoQ

Wipro, India's third-largest software exporter on Tuesday reported a Profit After Tax (PAT) of Rs 1932.1 crore for the second quarter of the financial year versus Rs 1623 crore, up 19% quarter-on-quarter. This is above an ET Now Poll estimate of Rs 1850 crore.

The sales for Q2 were reported at Rs 10,990.7 crore versus Rs 9735 crore quarter-on-quarter. An ET Now Poll had estimated sales to be at Rs 10,933.7 crore.

The IT services sales came in at Rs 10,068 crore Rs 8936 crore, up 12.6% quarter-on-quarter. The IT services sales or Q2 in dollar terms stood at $1631.1 million versus $1588.3 million quarter-on-quarter. The Q2 IT services EBIT margin was reported at 22.7% versus 19.9% QoQ..

Wipro raised the Q3 IT services revenue guidance to $1.66-1.69 billion from $1.62-1.65 billion. The IT company added 45 new clients in Q2.

"We have signed a large multi-year deal with US banking company. Q2 operating margins have been strong despite wage hikes," the company said. "There are positive indicators on the global economy. Client confidence is on the uptick which has been reflected in earnings," it added.

Ahead of the results, shares in Wipro closed the day at Rs 514.90, up 1.67% on the Bombay Stock Exchange. The stock hit an intra-day high of Rs 518.00 and a low of Rs 509.20.

Wipro has been in a slow growth phase for longer than expected, but has started to win some large deals. In the year to March 2014, the $76-billion IT sector is estimated to expand 12-14%.

Nokia launches first tablet, Lumia 2520 and 6-inch screen smartphones

Nokia unveiled its first tablet and two large-screen smartphones, known as phablets, at the annual Nokia World event in Abu Dhabi on Tuesday. 

The Lumia 2520 tablet, along with its Lumia 1520 and 1620 phablets, are among the last products the Finnish company developed to compete with Apple and Samsung before deciding to sell its handset business to Microsoft . 

The new Lumias use Microsoft's Windows Phone operating system and will face tough competition from large-screen smartphones from Samsung and Apple, which is also expected to unveil slimmer, faster iPads on Tuesday. 

The Microsoft deal is due to close in the first quarter of next year and the new products, which will still carry the Nokia brand, are part of the U.S. company's drive to become a leading player in global consumer devices.

Dear Brokers and Traders, Read only if you believe in the word CHANGE!

"MANA KI ANDHERA BADA GHANA HAI, LEKIN DOSTON DIYA JALANA KAHAN MANA HAI"

Recently these words were uttered by Honorable Chief Minister of Gujarat Mr Narendra Modi.

The above lines do hold good today when we have accepted what has been offered to us without even wondering whether there is something better than what we have.

Why do we stop searching for a new solution to our existing problems.Its not being satisfied about what we have, but its about the lethargy we all as humans carry with us.We just don't want to accept change, just because we feel it a herculean task to change.The most unfortunate part is that we give various reasons for not changing but we dont want to accept one serious reason for changing.

As Traders we know that we need to change or risk reward ratio.We know this is possible. We know this new risk reward ratio does exist.But We Don't change........

As Analysts, we know a new strategy does exist, a new strategy can be made.But we dont change......

As Brokers we know a New Trading Solution, A new Trading platform exists but we give different reasons for not shifting to the new system.Why? Because we dont want to change........

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TCS Q2 PAT at Rs 4702 crore versus Rs 3796.2 crore, up 24.7%

Beating market expectations (TCS), India's number one IT services exporter on Tuesday reported a Profit After tax (PAT) of Rs 4702 crore versus Rs 3796.2 crore in Q1. This is a rise of 24.7% quarter-on-quarter.

The dollar revenues for Q2 were reported at $3.33 billion versus $3.16 billion QoQ. Q2 sales stood at Rs 20,980 crore versus Rs 17,987 crore QoQ. The foreign exchange loss for Q2 was reported at Rs 377 crore.

While the Q2 utilisations excluding trainees came in at 83.4%, the gross employee addition was at 17,362. The number of $100 million plus clients rose to twenty-two from 19. The Q2 volume growth stood at 7.3%.

Commenting on the results, N Chandrasekaran, TCS CEO said, "We continue to see robust demand pipeline across markets. TCS has demonstrated all-round strong growth across markets."

Ahead of the Q2 results, shares in TCS closed the day at Rs 2218.15, up 0.16% on the Bombay Stock Exchange. The stock hit an intra-day high of Rs 2258.05 and a low of Rs 2202.00.

The stock of Tata Consultancy Services has earned 36% return in three months and over half of it in just a month. The counter of the nation's largest IT exporter has been hitting a new high over the past few weeks.

There are three factors that have driven the stock's valuation: a robust performance by the company in the past three years compared to peers, the benefit of weakening rupee given its high proportion of export revenue and lack of avenues for investors due to abysmal growth in the domestic economy.

Being an export oriented company with over 83% of the revenue from the US and Europe, TCS serves as a hedge for investors against weakening trend in the domestic economy.

In addition, considering its relatively faster pace of revenue and profit growth over the past three years, the company is in a position to benefit more from the depreciating rupee against major currencies.

Analysts expect RBI to hike repo by 25 bps, cut MSF by 25 bps

With headline inflation inching up to 6.46 per cent and signs of stability in the currency market, analysts said RBI Governor Raghuram Rajan could hike repo rate by 0.25 per cent and cut the MSF rate by a similar margin in the October 30 monetary policy review. 

"In his maiden policy review, Rajan stressed on inflation control as his priority. With inflation now out of RBI's comfort zone for four months in a row, we expect a 0.25 per cent repo rate hike," rating agency Crisil said in a note. 

According to the research arm of the country's largest lender State Bank of IndiaBSE -2.09 %, with stability in the currency, Rajan is likely to lower the marginal standing facility (MSF) rate, at which the RBI lends to the banks, once the lenders exhaust their overnight repo borrowing limits. 

"We expect repo hike of 0.25 per cent and MSF downward recalibration of 0.25 per cent," it said in a note. 

Official data released yesterday showed wholesale price inflation for the the month of September inching up to 6.46 per cent from 6.10 per cent for August. 

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HDFC BANK RESULTS (Read the Article and get to attend a FREE Seminar)

Private sector lender HDFC Bank  today reported 27.1 per cent jump in net profit to Rs 1982.3 crore for the July-September quarter. 

It had posted a net profit of Rs 1,559.9 crore for the corresponding period last year. The bank's net interest income was up 15.3 per cent to Rs 4,476.5 crore from Rs 3,731.7 crore in the second quarter of the previous fiscal. 

The non-interest income increased by 25.3 per cent to Rs 1,471.8 crore, HDFC Bank said in a statement. The net interest margin of the bank declined marginally to 4.3 per cent as against 4.4 per cent. 

The bank's total income moved up to Rs 11,937.7 crore for the quarter, from Rs 10,146.7 crore in the corresponding period last year, it said. The second largest private sector lender saw its balance sheet size increase 14.2 per cent to Rs 4,31,166.77 crore at the end of the reporting quarter. 

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Its net advances were up 16 per cent at Rs 2,68,617 crore as compared to the September 2012 figure, while deposits were up 14.2 per cent at Rs 3,13,011 crore. The bank scrip was trading at Rs 657.50, down 1.45 per cent, in the afternoon trade on theBSE.

No question of government taking over NSEL: P Chidambaram

 Ruling out takeover of the crisis -ridden NSEL, Finance Minister P Chidambaram has said that its parent group Financial Technologies and another related entity MCX-SX are under watch and persons responsible for the alleged irregularities will have to pay the price. 

"There is no question of the government taking over NSEL. The government is concerned about the regulated entities, one of them is MCX which is a commodity exchange, other is MCX-SX and the other is the promoter of the MCX and MCX-SX, which is the Financial Technologies. All three are under watch", he said in an interview to a news channel. 

National Spot Exchange Limited (NSEL), promoted by Jignesh Shah-led Financial Technologies, is facing payment crisis of Rs 5,600 crore. 

The Minister, who is here to attend the IMF-World Bank meetings, said that NSEL has been operating under an exemption order and "if it has defrauded any of its investors or clients, (it) must pay a price." 

Chidambaram further said that the Economic Offences Wing ( EOW) of the Maharashtra Police had registered a case and was probing the alleged irregularities. 

"They made one arrest before I left. I didn't know about the second arrest. Those who have committed the acts of malfeasance or misfeasance will pay a price," he added. 

As far as MCX-SX, a stock exchange promoted by Financial Technologies, is concerned, the Minister said that SEBI had forced two of its directors to resign. 

The MCX-SX, Chidambaram said, "is now managed by a board which does not have suspected or tainted people." 

With regards to MCX, the Minister said, "the show-cause notice has been issued, the two weeks period is to expire and the FMC ( Forward Markets Commission) regulator will take action after he receives the reply to the show cause notice".

Smart things to know about tax-free bonds

1. The tax-free bonds are issued by public-sector entities and have a high credit rating.

2. The interest earned from these bonds is tax-free, making them attractive on a tax adjusted basis for investors in the high tax brackets. 

3. Individual investors, Hindu Undivided Families (HUFs), high net worth individuals, and corporates can invest in such bonds.

4. The investors applying for an amount of up to `10 lakh fall under the retail individual investor category, and are eligible for a marginally higher coupon rate.

5. The bonds are listed on stock exchanges within 15 days of the closure of the issue. Investors can sell the bonds in the demat form, subject to a lock-in period, if any.

How to trade Reliance Industries ahead of Q2 results

 Reliance Industries Ltd (RIL) is scheduled to report its earnings for the quarter ended September 30 post market hours on Monday.

The oil & gas major is expected to report nearly 1 per cent QoQ growth in its net profit number for the quarter ended September 30 at Rs 5,400 crore as against Rs 5,350 crore reported in the previous quarter, according to an ET Now Poll.

Net sales are expected to rise by over 16 per cent sequentially to Rs 1,02,000 crore as compared with Rs 87,650 crore reported in the previous quarter.

RIL has been an underperformer so far in year 2013, gaining just about 3 per cent as compared to over 5 per cent gain in the BSE Sensex.

BSE oil & gas sector also under-performed other sectoral indices so far in the year (up nearly 0.10%) as the government continues with its policy decision to hike diesel price by 50 paise per litre every month.

Investors are shy of the sector due to government's regulatory concerns and volatility in forex and oil prices, analysts say.

During the quarter, RIL and its partner BP received approvals from DGH to invest $3.2 billion in the R-series gas field. The production from KG-D6 block had declined to 18 mmscmd compared to its target to reach over 60 mmscmd.

According to analysts, the stock's upside has been capped due to lower production from KG-D6 basin over the last few years. Results are expected to be under pressure due to slower demand but a rise in GRMs could induce some bit of optimism in the stock.

Sachin Tendulkar: The man who turned stones into milestones

Hearing about Sachin's retirement made me feel for the first time, how one tends to take things for granted. Like the sun, or water, I had always thought Sachin would never walk away. I feel kind of emptied out. We began our careers more or less together, so there is an affinity I cannot explain, though, of course, he is much younger than me. Right now, sitting in Perth, I am getting a cold turkey kind of feeling.

I grew up watching Sunil Gavaskar play, and I never thought anyone could possibly ever reach those heights. And then came Sachin. In the early days watching Sachin play, what had struck me was his bohemian simplicity of achieving something big, and I think Sachin never stopped playing freely.

Though I respect his decision and know that I could never have influenced him, I wish I were in India to persuade him to play for maybe another 10 years?

I have had many discussions on cricket with him, and this Almighty of cricket is the most informed expert on the game one can imagine. However cliched it sounds, an era has ended with him.

There was a thing Sachin had said in an interview a few years ago - 'when people throw stones at you, turn them into milestones' - it is something I'll never forget.

Sachin replies to his critics on the field, his work is his answer. Because 99.9% who criticise him do not know 0.000% of cricket, as what Sachin has is a gift not just excellence, and one cannot question a gift of God.

A while ago, my daughter Suhana and I wrote a poem for Sachin, where we had to introduce him on stage, a simple childish one, but he loved it and even asked us for it to keep it.

From his great 24-year repertoire of games, one that stays is how he hit Shoaib Akhtar all over the boundary for fours and sixes, when Shoaib was really knocking Sachin out. He played fire with fire. I think it was one of the World Cup matches, though I am not very sure.Even today, my IPL team boys tell me, 'However tired Sachin sir is, he comes out and works out'. That kind of dedication is what he is made of. As a child, Sachin may have been born with a gift, but Sachin, the man, backed it with grit and determination.

As for what he will do after retirement: I think he has already given the best years of his life to cricket and the sport. People don't realise how much he's given - he is an icon, a role model, he has given countless records to match or break. Cricket is already blessed by Sachin. In my opinion, he should now sit back and enjoy.

A recent memorable moment was with Dilip (Kumar) saab and Sachin. We were shooting for a Filmfare cover with Dilip saab, Amitji and me, and Dilip saab mentioned Sachin's name. I told him the same, and he came to meet Dilip saab.

The moment of watching Sachin standing next to Dilip saab was so pure and beautiful, so electrifying, that no camera could have captured that.

My favourite shot of Sachin? When he moves away and hits a bouncer for a six from outside the off stump.

Infosys Q2 net up 1.6% to Rs 2,407 crore; revenues up 31.5%

IT major Infosys, today reported a 1.6 per cent rise in consolidated net profit to Rs 2,407 crore for the second quarter ended September 30, 2013, on the back of large deals and increased sales from Big Data and Cloud.

The Bangalore-based firm had reported a net profit of Rs 2,369 crore in the year-ago period, it said in a BSE filing.

Consolidated revenue was up 31.5 per cent to Rs 12,965 crore from Rs 9,858 crore in the year-ago period.

Reacting to the results, Infosys' shares opened 7 per cent higher at Rs 3,360 from the previous close on the BSE. They later fell to Rs 3,220 apiece, still up by 3.07 per cent from its previous close.

India's second-largest software services exporter, which had kept its US dollar revenue guidance unchanged after the first quarter results, revised it upwards to 9-10 per cent for the 2013-14 fiscal from 6-10 per cent earlier.

It also revised rupee revenue guidance to 21-22 per cent for the 2013-14 fiscal from 13-17 per cent earlier.

In dollar terms, however, the NYSE-listed firm's net profits fell by 11.1 per cent to USD 383 million in second quarter of this fiscal from USD 431 million in the year-ago period.

Revenues rose by 15 per cent to USD 2.07 billion in the July-September quarter of 2013-14 fiscal from USD 1.80 billion in the same quarter of 2012-13 fiscal.

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"Sachin Tendulkar Finally Retires from Cricket". This was the headlines today in all the leading newspapers. Infact,even the Financial Newspapers have taken a note of it.

One gets refreshed by  reading all the praise for his achievements.By reading this news, we all would have got a break form the routine everyday sad and crime news.

Such sudden motivational news like Sachin's achievements reinforces that good things do happen. They are always there. You need to search them. Once you get them you are away from the clutches of the same old demotivating things, be it news or any event.

This logic, explained above is universal and Financial Market is no exception.Every other day one reads of Fraud,Malpractice, Bribery etc.A investor, a broker, A Trader or anyone who is to stock market get totally devastated, when they come to know that they are duped by a Trustworthy person or Institution.

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US shutdown: Who cares! Sensex rallies 300 points

Most Asian markets including India seem to have given two hoots to concerns over the partial shutdown in the US, something which most analysts say is likely to slow down the world's largest economy.

The S&P BSE Sensex rallied over 300 points in mid-morning trade on Thursday, led by gains in IT, metals, autos and capital good stocks.

At 10:20 a.m.; Sensex was trading 287 points higher or 1.4 per cent at 19,804.40. It has hit a low of 19,583.97 and a high of 19,823.95.

Earlier in the week, US federal government staggered into a partial shutdown which may put the US in danger of busting through its debt ceiling.

The congressional Republicans stubbornly demanded changes in the nation's health care law as the price for essential federal funding and US President and Democrats adamantly refused which led to the first government shutdown for the first time in 17 years.

Both leaders of the House and Senate acknowledged there would not be a resolution in time to stop a shutdown, as flurry of last-minute moves by the House, Senate and White House failed to break a bitter budget standoff over President Barack Obama's health care law.

Will the shutdown impact global markets, including India?

Well, analysts are of the view that emerging markets including India are likely to remain volatile ahead of debt ceiling negotiations and FOMC meet due later in the month of October. However, it (shutdown) is only a near-term worry for global markets and should end up benefiting emerging markets like India.

"The shutdown was on the cards. Hopefully, there will not be an overhang on the market for too long, but in this interim period, it could be one more negative," said Jyotivardhan Jaipuria, HoR, BofA-ML in an interview with ET Now.

"Therefore, for most investors it is a near-term worry, but it is not going to be prolonged because ultimately they have to find a solution. No politician can afford to have a prolonged shutdown of the US," he added. Jaipuria expects markets to correct around 3 per cent in next 15-20 days after the event, markets will slowly recover.

The last two shutdowns, which took place weeks apart in late 1995 and early 1996, cost taxpayers $1.4 billion, according to estimates from the Office of Management and Budget, according to a report.

Global markets may remain nervous on this event along with EM's including Indian market, said Siddharth Sedani, Assistant Vice President at Microsec Capital Ltd.

"Indian markets would be volatile during this week on US Govt. shutdown as well as some domestic positives like Q1FY14 CAD came in line with expectation and improved PMI (still in contraction mode) boost the Indian markets to stay afloat and not drift down significantly," he added.

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FINANCIAL TECHNOLOGIES IN TROUBLE! - ET

The Economic Offences Wing of Mumbai Police, which is probing the alleged Rs 5,600-crore NSEL scam, has summoned bourse's promoters, including Jignesh Shah, defaulting brokers and senior officials, even as raids continued at exchange's different premises today.

"We have summoned Shah, (Joseph) Massey, other promoters, directors and defaulting brokers, directing them to appear before us for questioning.

"The summons were served to about 60 people soon after the FIR was registered. The accused will have to appear before us within five days from the day they received the summons," an EOW officer told PTI here today.

The FIR was registered on Monday. National Spot Exchange (NSEL) officials were not available for comment.

Meanwhile, the raids at the residences and offices of the NSEL top brass, brokers and defaulters continued across the country on the third day today, the officer said.

The police teams, which began raiding as many as 193 locations on Monday, had so far covered 143 locations (44 office premises, 45 houses and 54 warehouses) and collected crucial evidence, the officer added.

About 65 voluminous files, 61 hard disks, six laptops, 25 pen drives, two CPUs and an iPad were among the evidence collected so far, the officer said.

NSEL, promoted by Shah-led Financial Technologies BSE -1.25 %, has been facing problems in settling Rs 5,600 crore dues of 148 members/brokers representing 13,000 investor-clients, after it suspended trade on July 31 on government's direction.

An FIR was registered on Monday by the EOW against its promoters, directors and defaulters on the charges of cheating, forgery and breach of trust among others.

Yesterday, the EOW froze 58 bank accounts, including the accounts of the crippled Exchange and the accused, while the CBI started a probe into alleged duping of customers and irregularities by the exchange.