Live: L&T spooks market, Sensex closes 151 points down

**3.30 p.m:**Sensex ended the day 151 points lower at 16785 while Nifty was trading 41 points lower at 5049. Though European markets were trading higher, Indian markets fell as traders closed their positions ahead of a critical European Union meeting on Sunday. Also, L&T results, which cut its order book guidance from 15 percent to 5 percent spooked the markets.

L&Tfell by 3.85 percent to Rs 1331.90 after the company announced their results. Though the company said its order book has increased to over Rs 16,000 crore, going forward the company expects orders to slowdown.

Despite a poor financial performance JSW Steel’sstock closed the day higher at Rs 587, up by 0.76 percent. The company posted a net profit of Rs 127 crore against an expectation of Rs 202 crore. A forex loss of Rs 513 crore has resulted in the company posting a lower than estimated profit.

Idea Cellularposted a substantial drop in its profit at Rs 106 crore against expectation of Rs 162 crore. Sales was at Rs 4608 crore against estimate of Rs 4650 crore. For the June quarter the company had posted a profit of Rs 177 crore. Finance and treasury expense at Rs 294 crore against Rs 103 crore was the main reason for the drop.

Cairn Indiais closed the day 1.89 percent lower at Rs 288 a day after the company announced its results which were lower than expected due to a provisioning of prior period royalty payment.

News report said thatBajaj Auto will get VAT refund of Rs 240 crore on Saturday. The stock closed 1.89 percent higher at Rs 1643.95.

Kerala government made the Dhanlaxmi Bank issue political by saying that it is worried about the banks credit-deposit ratio. The stock closed the day 3.66 percent lower to Rs 61.8. An employee union agitating against the Dhanlaxmi Bank’s management had earlier said that there were accounting issues in the bank, which was denied by the management.

Sensex down 170 points, L&T falls by 4%

3.00 p.m: JSW Steel posted a net profit of Rs 127 crore against an expectation of Rs 202 crore. Though the company has posted a better than expected sales of Rs 7625 crore against estimates of Rs 6955 crore and an operating margin of 17 percent versus estimates of 12.1 percent. A forex loss of Rs 513 crore has resulted in the company posting a lower than estimated profit.

The company has lowered the guidance by 14 percent due to severe shortage of iron ore and because of bottlenecks in receipt of the raw material from E-auction.

The stock has fallen by 1 percent to Rs 576.80.

L&T has fallen and currently trades near the low of the day at Rs 1372 down 1 percent after the management said that the company has slashed their order inflow guidance from 15 percent to 5 percent. The company has however, maintained their revenue guidance of 25 percent. With a visibility from its order book of 3 three years, slashing of the order book should not have too much of an impact on the company’s performance.

MB Switchgear has hit the upper circuit of 20 percent at Rs 382.10.

Sensex in the meanwhile has dropped by 111 points at 16825 and Nifty is down by 37 points at 5055.

European markets are trading near the high of the day, up by almost 0.5 percent.

L&T slashes order inflow guidance from 15% to 5%

2.00 p.m: L&T has announced marginally better than expected results by posting a net profit of Rs 798 crore against an expectation of Rs 775 crore. L&T had posted a profit of Rs 764 crore in the same quarter last year. The company posted a total income of Rs 11,245 crore against an expectation of Rs 11,008 crore.

The stock has reacted positively to the results and currently trades 1.29 percent higher Rs 1402. Order book of the company has increased by Rs 16,100 crore during the quarter taking the order book to Rs 1.4 lakh crore.

Operating margin of the company was at 10. 44 percent against expectation of 10.53 percent.

Order book visibility of 2.5 to 3 years

57% of order book is from private sector

Order book increased by 23 percent on a year on year basis

L&T has slashed order inflow guidance from 15 percent to 5 percent, highlighting the slowdown

Staff cost higher due to addition of 6300 employees

Deferment of orders impacted the company

Bajaj Auto to get VAT refund of Rs 240 crore on Saturday

Sensex meanwhile trades 2 points higher at 16,928 and Nifty trades 1 points higher at 5093.

MB Switchgear continues to remain volatile and presently trades 17 percent higher at Rs 374.

Kerala govt. ‘worried’ about Dhanlaxmi Bank’s financial strength

1.25 p.m: Kerala government has now made the Dhanlaxmi Bank issue political by saying that it is worried about the banks credit-deposit ratio. The stock has slipped sharply to by 4 percent to Rs 61.65. An employee union agitating against the Dhanlaxmi Bank’s management had earlier said that there were accounting issues in the bank, which was denied by the management.

Maruti meanwhile has said that it has reached an agreement with the workers union and government.

Markets meanwhile continue to remain rangebound. BSE Sensex is trading 7 points higher at 16,945 while Nifty trades at 5095, up by 3 points.

Idea Cellular posts sharp drop in profit

12.30 p.m: Idea Cellular posted a substantial drop in its profit at Rs 106 crore against expectation of Rs 162 crore. Sales was at Rs 4608 crore against estimate of Rs 4650 crore. For the June quarter the company had posted a profit of Rs 177 crore. Finance and treasury expense at Rs 294 crore against Rs 103 crore is one of the main reason for the drop.

HCC has announced a higher loss of Rs 40.5 crore against estimates of Rs 3 crore loss. Foreign exchange loss has been one of the reason for the drop, the company posted a forex loss of Rs 4.2 crore against a gain of Rs 6 crore previous year.

Kotak in its analysis of Cairn has mainained their Reduce rating and intend to do so till there is visibility of higher crude oil prices and higher recoverable reserves. Cairn India’s numbers include a number of adjustments as royalty has become cost recoverable. The company has benefited from a higher other income of Rs 590 crore on account of forex gains due to $1 billion deposited in foreign currency.

RBS has maintained a Sell on Ultratech Cement saying the risk reward is not favourable. Rising cost, have to a large extent negated increase in cement prices which have increased by 24 percent. The company posted a 21.6 percent growth in sales which was due to 1.8 percent drop in cement sales but a 24 rise in prices. Realisations however dropped by 5.2 percent, reflecting cost pressures.

Bajaj Auto, Raymond gain on strong numbers

11.45 a.m: Markets have come off their high with the Sensex trading at 16,982 nearly 46 points higher than previous close. Nifty on the other hand is trading at 5103 up by 11 points.

Bajaj Auto trades near the high of the day at Rs 1652, up by nearly 2.3 percent.

Raymond trades 5.5 percent higher at Rs 377.

MB Switchgear, the recently listed company is now trading 10 percent lower at Rs 285.

Taksheel the other IPO which was listed earlier this weak has hit 20 percent lower circuit at Rs 37.25

Market at day’s high, SBI leads rally

11.00 a.m: Markets have moved higher with Sensex trading 87 points at 17,023 and Nifty gaining 27 points at 5119.

Meanwhile, banking stocks have seen increased buying interest, days before RBI announces its credit policy. SBI leads the rally with a 1.5 percent increase and trades at Rs 1963.

Maruti continues to trade 2 percent higher at Rs 1098, unfazed by the fact that workers at the Suzuki Powertrain unit have not agreed to the terms.

Bajaj Auto trades 1.9 percent higher after announcing a good set of numbers at Rs 1644.

Satyam and Tech Mahindra have shot up after Supreme Court issued notice to CBI regarding bail for Ramalingam Raju.

Maruti agreement with workers falls through, Sensex at 17k

10.30 a.m: News report suggest that the agreement with workers have again fallen through. Suzuki Powertrain workers have refused to agree to the terms. There is no confirmation if work will start from Saturday. Maruti stock has fallen from the day’s high but still continues to be 2 percent higher over previous day’s close at Rs 1099.

Sensex is trading 66 points higher at 17,000 and Nifty is at 5109, up by 16 points.

Market at day’s high, Sensex at 17,000

10.00 a.m: Markets have touched the days high with Sensex trading 60 points higher at 16,997. Nifty on the other hand is up 15 points at 5106. Markets have not reacted to the rupee falling below 50.

Fall in rupee from 44 levels to 50 has been without any impact as the fall was not accompanied by FII selling. Data released by Sebi do not show withdrawal by FIIs to warrant the fall.

Meanwhile, public sector oils companies are witnessing buying with all of them trading at the day’s high.

Exide continues to fall after a poor showing in the second quarter. The stock trades 2 percent lower at Rs 118.

MB Switchgear the IPO that was listed on Wednesday is trading 7 percent higher at Rs 340.25.

Raymond has shot up by 4.36 percent at Rs 373.60. The company posted a 23 percent bottomline growth, among the best in textile companies.

Rupee touches two-year low of 50 against the dollar

9.30 a.m: Indian market opened flat and slipped in initial trades. BSE Sensex trades 5 points higher at 16,942 while NSE Nifty trades 2 point lower at 5080.

Rupee has touched a two year low of 50 against the dollar. IT companies which ideally should be happy with the fall in rupee are trading lower. Infosys has hedged their dollar exposure at 49 while TCS has done the same at 46 levels. Any level lower than this will result in losses (in foreign exchange lower level is represented by higher value).

Among the stocks that are witnessing action in the opening trades are Maruti which is currently trading 2.19 percent higher at 1101, while DLF trades 2 percent lower at Rs 225.70 on news of SEBI launching an inquiry against the company on disclosure violations.

Listen to our pre-market cues below:

Cairn India is trading 2.78 percent lower at Rs 285.45 after the company announced its results which were lower than expected due to a provisioning of prior period royalty payment.

IT leader Infosys trades 0.7 percent lower at RS 2727, while TCS is trading flat at Rs 1048.

Markets to open flat, Rupee touches 50.08 against the dollar

9.00 a.m: US markets ended near their lows on account of renewed worries over the Euro zone crisis. Reports say that European leaders postpones their decision on bailout plan saying they need more time. They are hopeful that a solution will be in place by Wednesday.

Asian markets are trading in a narrow range of 0.5 percent.

Indian markets are likely to open flat, with movement restricted to limited stocks. With roll-over of derivative positions already on due to a shortened week going forward, market movement can remain limited to derivative stocks.

Software stocks can see action as the rupee has hit 50 against the dollar. Doubts over export figures and oil paymenst has resulted in the rupee touching the psychological level.

Some of the stocks that will see action will be DLF which can see selling pressure as SEBI has ordered an investigation in the company on disclosure violation during IPO.

Maruti can witness buying interest as the strike at its Manesar plant has ended.

Among the results that will be announced today are L&T, Idea Cellular and JSW Steel.