The CNX Nifty logo is displayed on a glass wall at the National Stock Exchange (NSE) in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg) 

Sensex, Nifty Pause After Record Close; Pharma Index At 3-Month High

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Closing Bell

Indian equity benchmarks paused after closing at record highs in the previous session as mild selling pressure in ITC, State Bank of India and Reliance Industries weighed on gains in the pharma shares.

The S&P BSE Sensex was little changed at 33,573 and the NSE Nifty 50 Index fell 0.16 percent to 10,424.

Ten out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Fast Moving Consumer Goods Index's 0.9 percent drop. On the flipside, the S&P BSE Healthcare Index was the top sectoral gainer, up 2.5 percent.

Sensex, Nifty Pause After Record Close; Pharma Index At 3-Month High

Godrej Consumer Posts A Steady Q2

Godrej Consumer Products Ltd.’s quarterly profit beat estimates, driven by new launches and higher volumes.

  • Net profit rose 13.8 percent to Rs 362 crore versus estimate of Rs 351 crore
  • Revenue rose 6.2 percent to Rs 2,506 crore versus estimate of Rs 2,527 crore
  • Ebitda or operating profit rose 14 percent to Rs 532 crore
  • Ebitda margin at 21.2 percent versus 19.7 percent (YoY)

Speaking to BloombergQuint Vivek Gambhir, managing director at Godrej Consumer Products said business has shown lot of resilience and the company is yet to see good pick in rural demand. He expects second half of the current financial year to be stronger.

Natco Pharma Gains On Meeting Estimates In Q2

Shares of the Hyderabad-based drugmaker rose as much as 4 percent, the most since October 5, to Rs 1,010 after it met Bloomberg consensus estimates in September quarter.

  • Consolidated net profit up 27.5 percent at Rs 84.4 crore versus estimate of Rs 84 crore
  • Revenue at Rs 427 crore versus estimate of Rs 429 crore
  • Ebitda or operating profit up 16.3 percent at Rs 121.9 crore

Block Deal Alert

  • Ruchi Soya has 10 lakh shares change hands in a block.

Buyers and sellers were not immediately known

Source: Bloomberg

Fab Four Stocks Of The Day

Hexaware: The Mumbai-based IT company rose as much as 14.58 percent, the most in over six years, to Rs 322 after it reported strong earnings.

  • Nnet profit rose 16 percent to Rs 142 crore versus estimate of Rs 121 crore (QoQ)
  • Revenue at Rs 993 crore
  • Revenue in dollar term at $154 million
  • Ebita rose 8 percent to Rs 157 crore (QoQ)
  • Margin expanded 15.8 percent from 14.7 percent (QoQ)

Rain Industries: Shares of the Hyderabad-based cement and other related products maker rose as much as 10 percent to record high of Rs 287 after brokerage firm Motilal Oswal initiated coverage on the stock with a buy.

Motilal Oswal on Rain Industries

  • Initiated ‘Buy’ rating with a price target of Rs 362; implying a potential upside of 33 percent from Wednesday’s close.
  • Dual benefit of demand growth and supply shock driving CPC prices.
  • Rain investing in high organic growth projects.
  • Strong free cash flow generation to help deleverage its balance sheet.
  • Expect Volume, Ebitda and net profit to grow at a compound annual growth rate of 4 percent, 24 percent and 50 percent over four year till December 2009.
  • Rain has re-rated on visibility of margin expansion and growth.
  • Although stock has run up sharply, the valuations are still reasonable.
  • Bull Case target of Rs 615.

Dredging Corp: The stock rose as much as 17 percent, extending gains to second day after the cabinet approved stake sale of 73.47 percent in the company.

Solar Industries: The stock rose 6.51 percent after it bagged order worth Rs 1143 crore from Coal India for the supply of bulk explosives.