Wednesday April 24, 10:30 AM
Flat bourses... |
|
By Equitymaster.com
After opening higher, the markets have moved lower. Results from the old economy companies, although in line, have failed to positively surprise markets. The move southwards could be due to the vote over Gujarat in Parliament. The U.S markets have also been heading lower.
The BSE Sensex is at 3,402 (down 2 points) and the NSE Nifty is at 1,106 (no change). The rupee is trading at Rs 49.04 per US dollar.
Among the gainers are the Reliance (RELI.BO, news) group companies, RIL & RPL, which declared results in line with market expectation. Over the past twelve months, the core business of RIL experienced severe difficulties, which is reflected in the results. Lower demand, weaker prices and volatile feedstock prices all took their toll. Going forward, the petrochem cycle over the past quarter seems to have engineered a turnaround, which is likely to turn fortunes for RIL. The amalgamation of RPL is awaited. The combined entity is likely to undergo a phase of heavy capital expenditure, which could amplify the project risk of the company.
Castrol is the other key mover. The stock has had a difficult 24 months moving only southwards. This, however, is more a reflection of the challenging industry environment. The stock seems to be trading higher due to the sharp rise in post tax profits, which are up 32%. However, sales are down 5.5%.
|
