Sensex, Nifty to open on a flat note

A late bout of buying on Friday rescued the indices. A number of large companies will also announce their earnings. HCL Tech announced Cons PAT at ₹1,726 cr vs ₹1,783 cr qoq. China's economy grew 6.9% yoy in the third quarter, compared with 7% in the previous three months. Expectations were it would grow by 6.8% in July-September period.

Oct 19, 2015 08:10 IST India Infoline News Service

Dalal Street
The equity market seems to be providing lasting value for a while and investors will hope that the gush of fresh capital into the market keeps the going good for the stock market. Foreign investors have halted their selling spree and have pumped in over Rs3000 crore into Indian equities in the month of October. More money of course has flowed into debt markets in October taking FPI total inflows close to Rs.17,000 crore.

A flat start is in the offing as a truncated week gets underway. A late bout of buying on Friday rescued the indices. A number of large companies will also announce their earnings. HCL Tech announced Cons PAT at ₹1,726 cr vs ₹1,783 cr qoq. China's economy grew 6.9% yoy in the third quarter, compared with 7% in the previous three months. Expectations were it would grow by 6.8% in July-September period.

Shares of RIL will be in focus after the company posted a net profit of Rs. 65610 mn for the quarter ended September 30, 2015 as compared to Rs. 57420 million for the quarter ended September 30, 2014. Total Income has decreased from Rs. 986260 mn for the quarter ended September 30, 2014 to Rs. 624340 million for the quarter ended September 30, 2015.

During the week, we expect HDFC Bank to deliver a resilient performance for Q2 FY16 with loan growth at 21%, stable NIM and benign asset quality trends. The NII and PAT is estimated to increase by healthy 18% yoy and 20% yoy respectively. Hero Motocorp Q2 FY16 results are likely to be weak with a PAT decline of 10% yoy on the back of decline in sales volumes. On the other hand Bajaj Auto is expected to see a sharp yoy jump in PAT on the back of margin gains driven by rupee depreciation.

IndiGo is planning to launch an initial public offering worth up to US$ 400 mn and has set the price band of its initial public offering of equity at Rs 700-765 a share, says a report. Details will be unveiled later in the day.

The $41b metal-to mobile telephony conglomerate Aditya Birla group is planning to list its Mauritius-based holding company for carbon black SKI Carbon Black (India) Pvt Ltd in overseas markets, making it the first such case, two people with direct knowledge of the development said, says a report in ET.

S.H. Kelkar & Company Ltd. is expected to hit the capital market on 28th October to raise INR 500 crore through its maiden public offer (IPO).  The Mumbai-based company, which is in the business of making fragrances, flavours and aroma chemicals, has received markets regulator SEBI's approval to launch its IPO. SH Kelkar will raise INR 210 crore by issuing fresh shares, while the US-based private equity giant Blackstone will mobilise INR 290 crore by offloading its 10% stake in the company.

Ujjivan Financial Services Pvt. Ltd., the microfinance lender that has received a provisional licence to convert into a small finance bank, has reportedly hired merchant bankers to start work on a INR 1,500 crore initial public offering (IPO).

Depending on the final dilution agreed upon by the shareholders and the valuation at the time of the launch, the IPO size could be anywhere between INR 1,500 and INR 2,000 crore, according to a business daily. Ujjivan, which is 88.69% owned by foreign investors as on 31st March 2015, must ensure that overseas shareholding drops to 49%, in order to qualify as a small finance bank.

Zee Entertainment-promoted digital offering Ditto TV is reportedly aiming to double its revenue to INR 60 crore in the current fiscal year. “We closed last year at a revenue of around Rs 30 crore. This year we are aiming cross INR 60 crore. Almost 95-96% is subscription revenue,” Zee Digital Convergence CEO Debashish Ghosh has been quoted as saying.

Lanco Infratech Ltd. has become entitled for the reimbursement of income tax of INR 175 crore paid by it for the financial years 2001 to 2012 with interest, after adjusting adhoc amount of INR 70 crore already received. This follows the company getting a favourable order from the Supreme Court on 16th October for its subsidiary company Lanco Kondapalli Power Ltd. (LKPL), Lanco Infratech said in a press released on Sunday.

Maggi is set to return as Nestle reportedly said it cleared tests mandated by the Bombay High Court and the company will restart production of the snack within two-three weeks.

Wall Street ended higher on Friday lifted by a jump in General Electric shares. The Dow Jones rose 74.22 points, or 0.43 percent, to 17,215.97, while the S&P 500 gained 9.25 points, or 0.46 percent, to 2,033.11.Nasdaq Composite added 16.59 points, or 0.34 percent, to 4,886.69.

Deepak Nitrite Limited has announced that the Commercial Paper of Rs. 30 crores issued on July 17, 2015, has been repaid on October 15, 2015. Further, the Company informs the Exchange that the Company has issued Commercial Paper (CP) for Rs. 30 crores value dated October 16, 2015. This has been subscribed by HDFC Bank Ltd having maturity on November 30, 2015. 

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