Amtek Auto shares jumped as much as 12 per cent in the morning trade on Tuesday after the company informed BSE that it has appointed Morgan Stanley as advisors to assist in the group’s debt reduction plan.(Photo: Reuters)

Amtek Auto shares jumped as much as 12 per cent in the morning trade on Tuesday after the company informed BSE that it has appointed Morgan Stanley as advisors to assist in the group’s debt reduction plan.

At 10.09 am, the share price of Amtek Auto was up 11.89 per cent at Rs 43.30. The scrip opened at Rs 40.65 and had touched a high and low of Rs 43.35 and Rs 40, respectively, in trade so far. Sensex was up 0.45 per cent at 26,679.

In a regulatory filing, the firm said it was considering various options, including a minority stake sale of up to 25-40 per cent in its overseas business. During the process the company have received a large number of enquires for the outright purchase of a couple of the company’s overseas businesses which include for instance Tekfor group.

“The interest for this has come from trade players and financial players around the globe. These businesses are located in a much coveted market attracting premium valuations in the global markets. There are several options and it is a matter of right value-opportunity that will determine the eventual decision,” the company said in a filing.

The Amtek group is understood to owe over Rs 26,000 crore to 32 banks, including State Bank of India, ICICI Bank, Axis Bank, Bank of Baroda, Bank of India, IDBI Bank, Bank of Maharashtra and UCO Bank.

In the past one year, the share price of Amtek Auto nosedived 77.27 per cent to Rs 38.70 on November 2, 2015. The share price of the copmany was at Rs 170.25 on November 3 last year. Sensex declind 4.67 per cent during the same period.

For the quarter ended September 30, 2015, the company reported net loss of Rs 157.60 crore, down 283.09 per cent, against net profit Rs 86.08 crore in the corresponding quarter a year ago.

Amtek Auto is engaged in the manufacture of components such as connecting rod assemblies, flywheel ring gears and assembly, steering knuckles, suspension and steering srms, CV joints, crankshaft assemblies and torque links. They are backed by in-house design and development facilities engaged in developing new product and processes.The company also has production facilities located strategically across North America, Europe & Asia. Their product portfolio consists of an extensive range of components for Cars,Tractors, LCV, HCV and Stationary engines.

The BSE Sensex and NSE Nifty opened in green on Tuesday on the back of firm global markets. (Photo: Reuters)

10.13 am: Coffee Day Enterprises (CDEL) shares were trading 3.13 per cent up at Rs 278.60. The share price of CDEL plummeted nearly 18 per cent on its debut on Monday, making it the worst opening for a company listing on the bourses in calendar 2015.

10.07 am: Amtek Auto shares jumped over 12 per cent in the morning trade on Tuesday after the company informed BSE that it has appointed Morgan Stanley as advisors to assist in the group’s debt reduction plan. At 10.07 am, Amtek Auto shares were trading 12.79 per cent up at Rs 46.65. Sensex was up 96 points at 26,655.

9.54 am: The rupee recovered by 19 paise to 65.40 against the dollar in early trade on fresh selling of the American currency by exporters and banks. The BSE IT index and BSE Healthcare index were up 0.68 per cent and 0.43 per cent, respectively. 

9.28 am: Share price of SML Isuzu jumped over 1 per cent in the early trade on Tuesday after the company on Monday reported 41.51 per cent rise in October sales. The company has sold 784 vehicles during October, 2015 against 554 vehicles sold in October, 2014. Sensex was up 113 points at 26,672.28.

9.15 am: The BSE Sensex and NSE Nifty opened in green on Tuesday on the back of firm global markets. Sensex opened 101.56 points up at 26,660.71. Nifty opened 35.55 points up at 8,086.35.

Companies such ABB, Adani Power, Den Networks, Indian Oil Corporation, PFC, Power Grid, PTC, PVR, Reliance Power, Tech Mahindra, Nesco, Tribhovandas Bhimji Zaveri may announce their earnings on Tuesday.

Share price of Eros International jumped 10 per cent in the early trade on Monday after the company said that it has engaged a US-based law firm to conduct an independent internal review in the wake of an anonymous campaign spreading “false and malicious information” that has negatively impacted the company’s share prices.

Asian share markets crept ahead on Tuesday after the benchmark for US tech stocks hit its highest in 15 years, while a holiday in Japan kept currencies tethered within recent tight ranges.

The Dow ended Monday with gains of 0.94 per cent, while the S&P 500 added 1.19 per cent and the Nasdaq rose 1.45 per cent to its highest close since 2000.

Back home, Sensex and Nifty declined 97.68 points and 15 points at 26559.15 and 8050.80, respectively, on Monday.

The FIIs as per Monday’s data were net sellers in equity and in debt segments both, according to data released by the NSDL.

In equity segment, the gross buying was of Rs 3,413.48 crore against gross sell of Rs 4,776.42 crore. Thus, FIIs stood as net sellers of Rs 1,362.94 crore in equities.

In the debt segment, the gross purchase was of Rs 323.32 crore with gross sales of Rs 606.54 crore. Thus, FIIs stood as net sellers of Rs 283.22 crore in debt.

Indian rupee ended weaker against dollar on Monday on account of sustained demand for dollar from banks and importers despite weakness in American currency overseas. The rupee closed at 65.59, 33 paise weaker from its previous close of 65.26 on Friday.

(With inputs from agencies)

The BSE Sensex and NSE Nifty are likely to open in green on Tuesday tracking SGX Nifty and firm global markets.(Photo: PTI)

The BSE Sensex and NSE Nifty are likely to open in green on Tuesday tracking SGX Nifty and firm global markets.

At 8.11 am (IST), SGX Nifty was up 35 points, or 0.43 per cent, at 8,104.

Asian share markets crept ahead on Tuesday after the benchmark for US tech stocks hit its highest in 15 years, while a holiday in Japan kept currencies tethered within recent tight ranges. Hang Seng was trading 1.27 per cent up at 22,655.16

The Dow ended Monday with gains of 0.94 per cent, while the S&P 500 added 1.19 per cent and the Nasdaq rose 1.45 per cent to its highest close since 2000.

Back home, Sensex and Nifty declined 97.68 points and 15 points at 26559.15 and 8050.80, respectively, on Monday.

The FIIs as per Monday’s data were net sellers in equity and in debt segments both, according to data released by the NSDL.

In equity segment, the gross buying was of Rs 3,413.48 crore against gross sell of Rs 4,776.42 crore. Thus, FIIs stood as net sellers of Rs 1,362.94 crore in equities.

In the debt segment, the gross purchase was of Rs 323.32 crore with gross sales of Rs 606.54 crore. Thus, FIIs stood as net sellers of Rs 283.22 crore in debt.

Indian rupee ended weaker against dollar on Monday on account of sustained demand for dollar from banks and importers despite weakness in American currency overseas. The rupee closed at 65.59, 33 paise weaker from its previous close of 65.26 on Friday.

Companies such ABB, Adani Power, Den Networks, Indian Oil Corporation, PFC, Power Grid, PTC, PVR, Reliance Power, Tech Mahindra, Nesco, Tribhovandas Bhimji Zaveri may announce their earnings on Tuesday.

Cadila Healthcare’s 2QFY16 net profit of R390.9 crore (41% y-o-y) was primarily due to better product mix and forex gain.

Adjusting for one-off items including the R20 crore from the sale and transfer of ANDAs, additional tax expense due to a change in invoicing policy to subsidiaries, and forex impact, PAT of R386 crore (39% y-o-y) was c6% higher than HSBC.

Net revenues (excluding $3 million income on sale or transfer ANDAs) at R24.3 billion (15% y-o-y) were marginally lower than HSBCe on lower India and US sales, partially offset by higher JV revenues and emerging market sales.

Ebitda  margins at 23.6% were 190-bps higher than HSBCe on better gross margins and lower other expenses. US sales at Rs 1,000 crore (25.2% y-o-y, 1.9% q-o-q) were supported by traction in products including HCQS (hydroxychloroquinesulfate). HCQS has already experienced higher competition and should see no further major price erosion.

The resolution of FDA issues at the Moraiya facility is pending, with Cadila working on site-transfer for key pipeline products, according to the company.

As the Street discounts the reality of slow economic momentum and tepid earnings growth, nearly a quarter of the Nifty stocks now trade around their values of the middle of May 2014, before the outcome of the general elections was announced. For instance, on Monday, capital goods giant Larsen & Toubro traded as low as Rs 1,375 per share, below the value at which it had traded on a day ahead of the outcome of the general elections. The stock has lost more than 5% since Thursday, after the company announced below-expected earnings for Q2FY16 and cut its order inflow guidance for the year. Shares of L&T have lost nearly a quarter of their value since July, as the equity markets ran out of the upward momentum.

At least six brokerages, including HSBC, Citi, BofAML, Barclays and Deutsche Bank, downgraded the L&T stock on the back of dismal order outlook by the company. On Friday, L&T reported a 25% decline in its order inflow for the first half of FY16 and reduced its flow guidance to 5-7%, against 15% it had guided for at the beginning of the year.

HSBC has noted that despite the L&T management revising down their order outlook, given the sharp decline in new orders during the July-September period, the new guidance is also at risk. It said slower-than-expected recovery in investment cycle and the weakening outlook on the Middle East are also considered threat to the current outlook. Besides capital goods giant, metal producers such as Vedanta and Hindalco which witnessed a  sharp plunge in commodity prices affecting their earnings in the last two quarter now trade  40% to 50% below their prices as on May 15 last year. Both these stocks had ridden the rally in the markets after the BJP won simple majority in the polls.
Leading PSU stocks —GAIL, Bhel, Coal India — as well as Bank of Baroda now trade at a significant discount of 4% to 23% to their levels ahead of poll outcome. The clear majority at the Centre and the government’s campaign highlighting the need for economic reforms had raised buying interest in PSU stocks with the BSE PSU index rallying 24% within three weeks of the poll outcome. The index has now traced back this rally.