Markets Gain 0.3%, Cipla Spurts On Q2 Numbers

Ahead of the US presidential elections today, the Indian markets gained over 0.3% by closing. The BSE Sensex closed at 18739 and Nifty managed to hold above the 5700 level.

The Asian markets, however, closed in the negative. Nikkei and Shanghai closed with over 0.3.5% intraday losses and Hang Seng closed with a 0.28% decline.

The European markets are showing gains, with all eyes on the US. The three key indices, viz. FTSE, CAC and DAX, are up by over 0.5%. each

Among the sectors, the Realty index was the top gainer, up 2% by closing. Healthcare stocks are trading up this week too. Power stocks today saw gains of 0.7% on news that most of the states have gone in for a tariff hike. Bankex also showed some strength and was up 0.6% by closing. The CD, Metals, Oil & Gas and Teck indices were largely flat in trades, while Auto was down 0.5% by closing.

Among the Sensex stocks, Cipla gained over 4% after its Q2 results declaration. The company posted handsome growth in its net profit. The topline growth of 24% was fuelled by the strength seen in its exports. GAIL India was also higher by .85% by closing. HDFC, Jindal Steel and SBI each managed to gain over 1%.

The country's largest private sector power utility, Tata Power, gained 0.9% ahead of its Sept quarter earnings due by evening today. Analysts expect a net profit of Rs 275 crore against a loss of Rs 1187 crore seen a year earlier.

Aluminium major Hindalco Industries, on the other hand, declined by 1.5% after it reported its Q2 numbers. The net profit dropped 28.56% Year-on-Year to Rs 359 crore in the quarter, while analysts had forecast a profit of Rs 382 crore. Maruti Suzuki also tanked 1.7% on news that its employees are planning another strike. In a double whammy, its parent company Suzuki is also planning to file for bankruptcy in USA. The share of other Auto companies such as Tata Motors, Bajaj Auto and Hero MotoCorp came under pressure as they are into the exports segment. Dr. Reddy’s Labs saw some profit booking after gaining consistently over its robust Q2 result.

Jubilant Life Sciences came under selling pressure after reporting a decline in its operating margins yesterday. The stock closed lower by 3.9% today.

Reliance Power's shares moved very little as the company posted only marginal growth in its net profit. It is also expected to add robust capacity at the end of the current fiscal, but investors do not seem to be excited about the stock.

The scrip of state-owned Central Bank jumped over 5% after it posted a 35% growth in its net to Rs 330 crore in the quarter ended Sept 2012. On the other hand, the bank reported a 22% drop in its net profit for the second quarter to Rs 661 crore on the back of higher operating expenses and lower Other Income. Though the numbers were below expectations, the shares rose unexpectedly by 0.25%.

Pharma major Glenmark settled a litigation with Janssen Pharmaceuticals over the generic product Norgestimate and Ethinyl Estradiol tablets. After this, the company will be able to sell the generic under a royalty bearing license from Janssen in 2015. Its shares had shown good momentum in the morning, but lost their sheen by day's end and closed in the red.

The shares of United Spirits rose by nearly 2% over news that Britain's Diageo Plc is set to pick up a 51% stake in the company for about USD 2 billion. Kingfisher Airlines, on the other hand, lost 5% as there is no clarity if there would be equity infusion in the troubled company.

The advance-decline ratio on the BSE indicated a positive bias as the total advances outnumbered the total declines.

The gains on the second day of the week in the markets have shown that the positive bias of investors is intact. The corporate results so far have come in better than expected. However, the US Presidential polls due today will be crucial for the markets. Dow Jones Futures are showing a gain of 0.26%, indicating a positive sentiment in the US markets, and hence, one can expect good start of to the day there too.