Friday, May 2, 2008

Market Review After Closing Bell 02/05/08

The markets went through a consistently positive day on the back of buying activity witnessed in banking, auto and software heavyweights. On the other hand, cement majors faced the brunt of the selling activity. As regards global markets, while the Asian indices closed in the green, the European indices are witnessing a positive trend currently.
The BSE Sensex closed at 17,600 (up 313 points) while the NSE Nifty closed at 5,228 (up 62 points). The rupee was trading at 40.66 to the dollar.
The markets opened positive and remained so through out the day. Infact, the day's graph cleared the dotted line by some margin and the positive sentiment showed no signs of reversal right till the final trading hour. Both the BSE midcap index as well as the BSE smallcap index ended higher by 1%. The overall market breadth was positive with gainers outnumbering losers by a ratio of 7:3 on the broader BSE. ICICI Bank and Reliance Infrastructure (up 7% each) led the pack of gainers, while Hindalco (down 4%) and Reliance Communication (down 3%) led the pack of losers.
HDFC announced its FY08 earnings on Wednesday. The company reported a 47% YoY growth in interest income in FY08 on the back of 29% YoY growth in advances. Its net interest margins improved to 4.0% in FY08, from 3.7% in FY07. Cash surpluses and returns on them kept other income stable. The company's asset management subsidiary aided consolidated bottomline; while its insurance subsidiaries are still in the investment phase. Consolidated bottomline grew by 55% YoY in FY08 buoyed by extraordinary income due to profit on sale of part of the stake in HDFC Standard Life to Standard Life group. Excluding the extraordinary item, the bottomline has grown by 17% YoY in FY08. HDFC ended lower by 1%, while IDFC closed 1% higher.
Raymond announced its FY08 earnings on Wednesday. The company reported a consolidated topline growth of 17% YoY in FY08 and a 3% YoY growth on a standalone basis. The proportion of branded apparel and textile retail sales has increased from 30% in FY07 to 33% in FY08. Consolidated EBIDTA and net profit margins fell from 13.3% and 6.9% in FY07 to 7.1% and 0.9% respectively in FY08 due to higher wool and cotton prices. The company's increasing reliance on exports has impacted this quarter's performance on the back of the appreciation of the rupee against the US dollar. Raymond ended lower by 1%, while Arvind Mills ended 3% higher.
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