Four blue-chip companies are due with their second-quarter earnings today. As each being in the top slots in their respective market, it is expected that their Q2 results will guide Sensex and Nifty.
Four blue-chip companies are due with their second-quarter earnings today. As each being in the top slots in their respective market, it is expected that their Q2 results will guide Sensex and Nifty. Indian stock markets have rallied to record highs despite lower-than-expected first quarter results reported by major companies. Though, the markets have been surging on the hopes of better-than-expected Q2 and Q3 earnings. Recently domestic markets surged to record highs after the Modi government announced a mega plan of Rs 2.11 lakh crore to recapitalise the stressed PSU banks.
Amid the ongoing second-quarter earnings season, investors are keenly awaiting the results of blue-chip companies which may provide a justification to the upmove in the stock markets. There are four blue-chip companies which are slated to announce their second-quarter report card today, including ITC — India’s largest FMCG company, Indian Oil Corporation — Nation’s biggest enterprise, Maruti Suzuki — India’s largest car-maker, ICICI Bank — India’s second-largest private bank. It is expected that these companies may provide an industrial outlook for their representative sectors namely — bank, automobile, consumer good, oil refining.
A look at Q1 performance of these companies
ICICI Bank: Reported a fall of 8.21% year-on-year in net profit to Rs 2,049 crore for April-June quarter. Gross NPAs (non-performing assets) rose 1.4% to Rs 43,147.64 crore for the quarter ended 30 June 2017 versus Rs 42,551.54 crore during the previous quarter ended 31 March 2017.
ITC: Reported a rise of 7.4% in net profit to Rs 2,560.5 crore for April-June period. The total income grew by 4.4% to Rs 14,277.19 crore. Company’s cigarette business posted 6.6% jump in gross sales in the same period to Rs 8,774.16 crore.
Indian Oil Corporation: Reported a better-than-expected first-quarter profit, however, it dipped 45% to Rs 4,549 crore on-year. The company posted 20% rise in operating revenue in the first quarter to Rs 1.28 trillion on the back of higher refinery throughput and export of petroleum products.
Maruti Suzuki (India): Reported a marginal rise of 4.4% in net profit for April-June quarter to Rs 1,556 on-year. The total revenue from operations jumped 16.37% to Rs 19,777.4 crore.
Indian markets at open on Friday
Sensex and Nifty opened marginally higher after a round of mixed corporate earnings reported yesterday. BSE Sensex gained 81.19 points to open at 33,228.32 points while NSE Nifty added 18.5 points to start at 10362.3 points. The stock of Yes Bank was the biggest loser on Nifty, dived 9.85% to hit the day’s low of Rs 298.55 after the fifth-largest private sector lender posted a 25% rise in the net profit to Rs 1,002 crore, but reported a massive increase in bad loans with the Reserve Bank of India finding it to have under-reported NPAs in the last fiscal by Rs 6,355 crore.