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NIFTY’s PREDICTION and ANALYSIS by experts for Wednesday, Q2 results of TATA Motors and L&T, Indian Markets bounce back as BULLS take charge…. Market updates for 31/10/18

PurpleTrades - stock market courses > News > NIFTY’s PREDICTION and ANALYSIS by experts for Wednesday, Q2 results of TATA Motors and L&T, Indian Markets bounce back as BULLS take charge…. Market updates for 31/10/18

Report by- Sabyasachi Bhattacharya

 

TATA Motors announced their Q2 results; reporting a loss of Rs 1,048 crores-

TATA Motors on Wednesday has reported consolidated loss of Rs 1,048 crore for the quarter ended September 2018, impacted largely by disappointing performance of Jaguar Land Rover which also reported loss of 101 million pound. Let us look at the key insights of their report-

  • Profit for the September quarter 2017 stood at Rs 2,483 crore. On sequential basis, loss has been narrowed from Rs 1,902.4 crore in June quarter.
  • Provision for impairment of capital work-in-progress and intangibles under development (Rs 93.21 crore) and provision for costs of closure of operation of a subsidiary (Rs 437.08 crore) also hit bottomline.
  • Consolidated revenue from operations during the quarter increased 3.3 percent year-on-year to Rs 72,112 crore driven by domestic sales volume.
  • “Our solid, all-around performance in Q2FY19 has impressively demonstrated that Tata Motors ‘Turnaround 2.0’ is in full swing. The continued improvements were made possible due to a robust product and innovation pipeline, strong market activation, rigorous cost reductions and structural process improvements,” Guenter Butschek, CEO and MD said.
  • Numbers missed analyst expectations. Analysts on an average had estimated loss of around Rs 500 crore for the quarter.
  • At operating level, EBITDA (earnings before interest, tax, depreciation and amortisation) margin fell by 130 bps YoY to 9.9 percent and EBIT margin contracted 310 bps to 1.7 percent in Q2.
  • UK-based luxury car maker Jaguar Land Rover has reported a loss of 101 million pound for the quarter ended September 2018 on fall in revenue and weak operating income.
  • The company in its standalone business (domestic) reported profit at Rs 109.14 crore for the quarter against loss of Rs 283.4 crore in corresponding period last fiscal, but the same was lower sharply by 91 percent QoQ from Rs 1,187.65 crore in June quarter.
  • Tata Motors is the worst performance stock in auto space, falling 60 percent year-to-date and 17 percent during the September quarter against 27 percent and 10 percent fall in Nifty Auto index respectively.

 

 

Let us take a look at the company’s Q2 report-

 

Source- MoneyControl, Purple Trades Research Department   

 

L&T announced their Q2 results; Net Profit jumps by 23% Y-O-Y to Rs 2230.49 crores%-

Infrastructure major, Larsen & Tourbo, reported a net profit of Rs 2,230.49 crore for the September quarter. This is a jump of 23 percent year on year against Rs 1,819.88 crore during the corresponding quarter of last year. Let us take a look at the key insights of their report-

  • It reported a revenue growth of 21 percent year on year to Rs 32,080.83 crore from Rs 26,446.76 crore during previous year.
  • The company reported an earnings before interest, taxes, depreciation and amortization (EBITDA) of Rs 3,770.5 crore during the quarter, a jump of 27 percent to Rs 2,962.2 crore posted during last year.
  • The operating margin has been reported at 11.8 percent.
  • The company witnessed a strong growth of 46%, with order wins worth Rs 41,921 crore at the group level during the quarter ended September 30, 2018 due to pick-up in domestic ordering activity, the company said in its exchange filing.
  • “International orders at Rs 8,268 crore constituted 20% of the total order inflow. On a cumulative basis, the order inflow for the half year ended September 30, 2018 stood at Rs 78,064 crore, growing at 42% over the corresponding period of the previous year,” the company said.

 

 

Let us take a look at the company’s Q2 report-

 

Source- MoneyControl, Purple Trades Research Department     

 

 

Indian Indices move upwards as BULLS bounced back into the game-

Chart source- Upstox

Indian markets was seen moving upwards and breaching the levels of 10,300 with ease. As you can see in the chart given above the markets opened up higher but soon started falling. As our experts in PURPLE TRADES  predicted yesterday that if markets breach the 200EMA then it will continue falling to 10,100 as it did today. From the levels of 10,100 market saw a sharp bounce back and after that there was no stopping it. As you can see in the chart above the markets after the morning session moved beautifully upwards. There was a small consolidation seen at the 10,250 levels but that level was soon breached by the BULLS. Wednesday’s session has ended on a strong note, with the Sensex soaring over 500 points, while the Nifty closed above 10,350-mark. A strong surge in financials along with IT names were responsible for pushing the indices higher. Pharmaceuticals joined the bandwagon as well and a combination of all these factors boosted the market. Automobiles, consumption, infrastructure, and PSU banks were the other big gainers. In the broader markets, the Nifty Midcap index rose around 2 percent. At the close of market hours, the Sensex ended up 550.92 points or 1.63% at 34,442.05, while the Nifty was higher by 188.20 points or 1.85% at 10,386.60. The market breadth is positive as 1,593 shares advanced, 946 shares declined, while 1,114 shares were unchanged.

Nifty moved bounced back from 10,100 levels as predicted yesterday by our experts in Purple Trades. To read the predicted report click below-

 

Let’s take a look at the performance of major Indices-

Look below and it’s quite amazing to note that each and every market in the world moved ahead. US markets, European markets and the Asian markets were all seen in the GREEN.

Source- MoneyControl, Purple Trades Research Department   

 

Let’s take a look at the EXPECTED movement of NIFTY for tomorrow-

Our experts in PURPLE TRADES  have done some analysis of the markets after the upwards move on Wednesday and found out the key factors to watch out for on Thurday-

  • The crucial resistance for the market if it moves upwards will be at 10,500.
  • The short term resistance for the market will be at 10,400
  • If the market moves down then the support will be provided at the price level of 10,200. It has the highest OI and therefore the market is not expected to move below this level.
  • The short term support will be provided at 10,300.
  • Ease of doing business 2019: India jumps 23 spots to 77th Rank in World Bank’s latest report. This news can make the markets open higher.

 

 

Top sectors that moved the market today-                            Data source- Moneycontrol

 

 

Top Gainers for today-                                                                                        Data source- Moneycontrol

 

 

Top losers for today-                                                               Data source- Moneycontrol

 

 

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