Sensex ends 224 pts down; banks, IT, pharma drag; metals up

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Market Closing: The market closed lower for the third consecutive session on Friday due to selling pressure in technology, banks, healthcare and auto stocks. The Sensex fell 223.94 points to 28442.10 and the Nifty lost 100.70 points to 8606. About 1184 shares have advanced, 1636 shares declined, and 178 shares are unchanged on the BSE. TCS, Sun Pharma, Axis Bank, Bharti Airtel and Wipro topped the selling list on Sensex, down 3-5 percent while Sesa Sterlite, Tata Steel, NTPC, Hindalco and BHEL gained 1-3 percent. 03:20pm Interview: Mindtree sees bigger growth opportunities in digital, and is investing in it, Krishnakumar Natrajan, MD & CEO, said in an interaction with CNBC-TV18. The company plans to acquire businesses in this space, he said. Mindtree’s fourth quarter net profit declined 8.4 percent sequentially due to forex loss. Dollar revenues were flat. Natrajan said growth outlook for FY16 remained strong, and the effect would show in the second half earnings. However, margins could be lower compared to last year, he cautioned. Parthasarathy NS, President, Chief Operating Officer, said efforts were being taken to arrest attrition and that he was confident of results. 03:00pm Market Update: The market extended losses in last hour of trade. The Sensex is down 208.77 points at 28457.27 and the Nifty down 89.90 points at 8616.80. About 1165 shares have advanced, 1559 shares declined, and 195 shares are unchanged on the BSE.   Shares of TCS and Sun Pharma tanked more than 4 percent followed by Axis Bank, Bharti Airtel and Wipro with 2-3 percent loss. HDFC Bank, Infosys, Tata Motors and ICICI Bank slipped 0.6-1 percent. However, metals stocks continued to shine with the Tata Steel, Sesa Sterlite and Hindalco Industries rising 2-3 percent. 02:50pm CRISIL Earnings: Rating agency CRISIL’s first quarter consolidated net profit declined 20.4 percent sequentially to Rs 56.3 crore, impacted by lower revenue and weak operational performance. Net sales during the quarter fell 5.8 percent to Rs 307.2 crore from Rs 326.3 crore in previous quarter. “Rating revenues were mainly impacted by reduced budgetary support from Government of India for the NSIC-Performance & Credit Rating Scheme for small and medium enterprises,” said the company. CRISIL expects the ratings business to benefit from improvement in the investment climate, pick up in credit growth and decline in interest rates over the coming months. Consolidated operating profit (EBITDA) slipped 15.8 percent quarter-on-quarter to Rs 86 crore and margin declined 330 basis points to 28 percent in the quarter gone by. 02:30pm Investments in India: Flagging off “developing challenges” from the ground, global rating agency Standard and Poor’s today said a policy logjam and “red tape” have hindered investments in India. The rating agency, which conducted a “big data” study of three major emerging Asia economies “from the ground up”, said that India has a different scenario where corporate earnings have plateaued but debt has continued to rise and investments have slumped. “We believe policy gridlock and administrative red tape have hindered investment. The challenge now is to unlock the earnings potential of existing assets,” S&P said. The comments come within a week of S&P cautioning that fiscal weakness continue to make India’s sovereign credit profile vulnerable. S&P has lowest grade investment rating BBB-, just a notch above the junk grade, on India with a stable outlook. However, another major rating agency Moody’s last week upgraded its outlook on the sovereign to positive from stable and said there was a possibility of a rating upgrade from BBB- in 12-18 months. 02:00pm Market Check The market refuses to budge ahead. The Sensex is down 127.80 points at 28538.24 and the Nifty is down 68.55 points at 8638.15. About 1256 shares have advanced, 1432 shares declined, and 175 shares are unchanged. Tata Steel, Sesa Sterlite, Hindalco, BHEL and NTPC are top gainers while TCS, Sun Pharma, Axis Bank, Wipro and Bharti Airtel are among laggards in the Sensex. Gold firmed near USD 1,200 an ounce but the metal was headed for its second straight weekly drop, weighed down by uncertainty over the timing of an interest rate increase by the US Federal Reserve. Expectations that the US central bank would start raising rates in June have been reassessed after recent sluggishness in US economic data and many are now betting that policy will not be tightened until September Strong data could still prompt the US central bank to raise rates sooner, which would dent demand for bullion, and the uncertainty has led to caution in bullion markets.

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Pressure mounts on Sensex, Nifty; Hindalco, NTPC add 1-3%

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Mindtree sees bigger growth opportunities in digital, and is investing in it, Krishnakumar Natrajan, MD & CEO, said in an interaction with CNBC-TV18. The company plans to acquire businesses in this space, he said. Mindtree’s fourth quarter net profit declined 8.4 percent sequentially due to forex loss. Dollar revenues were flat. Natrajan said growth outlook for FY16 remained strong, and the effect would show in the second half earnings. However, margins could be lower compared to last year, he cautioned. Parthasarathy NS, President, Chief Operating Officer, said efforts were being taken to arrest attrition and that he was confident of results. 03:00pm Market Update: The market extended losses in last hour of trade. The Sensex is down 208.77 points at 28457.27 and the Nifty down 89.90 points at 8616.80. About 1165 shares have advanced, 1559 shares declined, and 195 shares are unchanged on the BSE.   Shares of TCS and Sun Pharma tanked more than 4 percent followed by Axis Bank, Bharti Airtel and Wipro with 2-3 percent loss. HDFC Bank, Infosys, Tata Motors and ICICI Bank slipped 0.6-1 percent. However, metals stocks continued to shine with the Tata Steel, Sesa Sterlite and Hindalco Industries rising 2-3 percent. 02:50pm CRISIL Earnings: Rating agency CRISIL’s first quarter consolidated net profit declined 20.4 percent sequentially to Rs 56.3 crore, impacted by lower revenue and weak operational performance. Net sales during the quarter fell 5.8 percent to Rs 307.2 crore from Rs 326.3 crore in previous quarter. “Rating revenues were mainly impacted by reduced budgetary support from Government of India for the NSIC-Performance & Credit Rating Scheme for small and medium enterprises,” said the company. CRISIL expects the ratings business to benefit from improvement in the investment climate, pick up in credit growth and decline in interest rates over the coming months. Consolidated operating profit (EBITDA) slipped 15.8 percent quarter-on-quarter to Rs 86 crore and margin declined 330 basis points to 28 percent in the quarter gone by. 02:30pm Investments in India: Flagging off “developing challenges” from the ground, global rating agency Standard and Poor’s today said a policy logjam and “red tape” have hindered investments in India. The rating agency, which conducted a “big data” study of three major emerging Asia economies “from the ground up”, said that India has a different scenario where corporate earnings have plateaued but debt has continued to rise and investments have slumped. “We believe policy gridlock and administrative red tape have hindered investment. The challenge now is to unlock the earnings potential of existing assets,” S&P said. The comments come within a week of S&P cautioning that fiscal weakness continue to make India’s sovereign credit profile vulnerable. S&P has lowest grade investment rating BBB-, just a notch above the junk grade, on India with a stable outlook. However, another major rating agency Moody’s last week upgraded its outlook on the sovereign to positive from stable and said there was a possibility of a rating upgrade from BBB- in 12-18 months. 02:00pm Market Check The market refuses to budge ahead. The Sensex is down 127.80 points at 28538.24 and the Nifty is down 68.55 points at 8638.15. About 1256 shares have advanced, 1432 shares declined, and 175 shares are unchanged. Tata Steel, Sesa Sterlite, Hindalco, BHEL and NTPC are top gainers while TCS, Sun Pharma, Axis Bank, Wipro and Bharti Airtel are among laggards in the Sensex. Gold firmed near USD 1,200 an ounce but the metal was headed for its second straight weekly drop, weighed down by uncertainty over the timing of an interest rate increase by the US Federal Reserve. Expectations that the US central bank would start raising rates in June have been reassessed after recent sluggishness in US economic data and many are now betting that policy will not be tightened until September Strong data could still prompt the US central bank to raise rates sooner, which would dent demand for bullion, and the uncertainty has led to caution in bullion markets.

Sensex, Nifty snub WPI inflation nos; Bharti slips 3%

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BHEL in News: State-owned power equipment maker BHEL has signed a Memorandum of Understanding (MoU) with a Russian company INTMA, to set up a gas-based power project in Kazakhstan. The MoU will further help BHEL in consolidating its presence in the CIS countries, the company said. “The two parties will endeavour to assist each other in the implementation of this MoU. For us, this is a great opportunity to expand our footprint in the CIS region,” BHEL Chairman and Managing Director B P Rao said. Primarily engaged in manufacturing of power plant equipment like gas turbines, steam turbines, hydro turbines and boilers, BHEL has robust experience in construction of power plants in India and overseas, it said. BHEL is currently executing 23 major projects in 16 countries and has a presence in more than 75 countries. 01:00pm Market Check Even after food prices fell to a three month low in March, the market seems to be unimpressed. The Sensex is down 43.42 points at 29001.02 and the Nifty is down 18.80 points at 8815.20. About 1493 shares have advanced, 1141 shares declined, and 152 shares are unchanged. Wholesale price index (WPI)-based inflation for March fell to a new low of -2.33 percent, the fourth successive month of deflating prices after the flat reading in November. The WPI reading for February was -2.06 percent. A CNBC-TV18 poll of economists had forecast March WPI at -2.07 percent. Economists say the latest number is proof that inflation is clearly trending lower, and this should provide the Reserve Bank of India room to cut rates. Sesa Sterlite, SBI, Tata Power, ITC and ICICI Bank are top gainers in the Sensex. Among the losers are M&M, Bharti Airtel, Tata Motors, Wipro and Infosys.

Nifty choppy; KEC Intl, Century Tex, Sobha midcap gainers

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Nitin Fire Protection in demand: Nitin Fire Protection received approval from Underwriter’s Laboratory in the US for emergency lights for fire safety protection. The market size for this product in the US is USD 250 million. Speaking to CNBC-TV18, Rahul Shah, executive director of the firm, said the company has been growing at 20-25 percent compound annual growth rate (CAGR) since last three-four years and is hopeful of continuing that momentum for a couple of more years.   The company is currently enjoying 15-20 percent margins in the domestic market. It is looking to penetrate the US market with this new approval. 02:45pm Market Expert: Despite there being a “slight disconnect” between valuations and fundamentals, the sheer flow of money towards Indian markets may lift them from current levels and take the Nifty closer to 9,000, believes Sandeep S Shenoy of Pioneer Investcorp. Shenoy said the market has paused in recent times but capital flows will remain steady. “This leg of the rally will likely be led by healthcare,” he said. 02:30pm Aurobindo Pharma in focus: Aurobindo Pharma has divested stake in its Australian subsidiary to Eris Pharma for an undisclosed amount to focus on the US, European and emerging markets. The unit was not contributing any profit to APL. “Aurobindo Pharma Ltd (APL) has divested its step-down subsidiary, Aurobindo Pharma (Australia) Pty Ltd, to Eris Pharma Australia Pty Ltd,” Aurobindo Pharma said in a filing to the BSE. APL will continue to manufacture and supply products to Eris Pharma for Australian and New Zealand markets over the next few years, it added. “This divestment is in line with APL’s strategy of focusing on the US, the EU and key emerging markets. This subsidiary was not contributing any profit to Aurobindo,” the company said. Aurobindo Pharma currently exports its products to over 125 countries. 02:00pm Market Check The market remained rangebound in afternoon trade, heading to snap the five-day winning streak on profit booking. The Sensex dropped 46.39 points to 28838.82 and the Nifty shed 17.30 points to 8761. The broader markets continued to outperform with the BSE Midcap and Smallcap indices rising 0.5 percent and 0.9 percent, respectively. About 1581 shares have advanced, 1108 shares declined, and 175 shares are unchanged on the BSE. In the midcap space, KEC International, Century Textiles, V-Guard Industries and Sobha gained 8-15 percent while smallcap stocks like Indian Metals, Century Enka, Claris Life, Sagar Cement and Pricol jumped 13-20 percent.

Sensex under pressure; pharma stocks slip, Idea gains 3%

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New IPO: Nuziveedu Seeds, in which the Blackstone Group holds a 25 percent stake, is set to file for a market listing to raise up to USD 200 million, report media quoting unnamed sources. Nuziveedu, which could file as early as next week, has hired JPMorgan, JM Financial Services and Axis Capital as lead managers, the sources said. They declined to be named as the information is not yet public. Blackstone, which invested USD 54 million in the company in 2008, will make a part-exit with a near four times return on a seven-year-old investment, one of the sources said. “We are almost done and could file it within a few weeks,” said one of the sources. One other source said the filing could be completed within a week. 01:00pm Market Check The market extended losses in afternoon trade due to selling in private banks and pharma stocks. The Sensex slipped 106.27 points to 28778.94 and the Nifty fell 39.50 points to 8738.80 amid consolidation. The BSE Midcap and Smallcap indices continued to trade higher, up around half a percent. Advancing shares outnumbered declining ones by a ratio of 1504 to 1114 on the BSE. The Indian equity market looks like “on the best investments in Asia” right now and UBS is overweight the country, according to Hartmut Issel, the firm’s Head Equity & Credit for Asia Pacific and Chief Investment Officer for Wealth Management. Issel said earnings growth and reforms momentum in the Indian market were two of the key drivers of UBS’ bullishness. Cipla lost further, down 3.5 percent after CLSA downgraded the stock to sell from underperform with a target price of Rs 619. According to the brokerage, inhalers may offer only gradual upside in EU contrary to market expectations. Shares of HDFC Bank, HDFC, TCS, L&T, Sun Pharma, Lupin and Hindalco dropped 1-3 percent while Sesa Sterlite and Idea Cellular topped the buying list, up 2-3 percent. SBI gained nearly 2 percent as Barclays maintained its overweight on the stock with a target price of Rs 353. The brokerage said SBI is a significant outperformer in two key franchise products – savings accounts and credit cards. Japan’s Nikkei share average topped the psychological 20,000-point mark on Friday for the first time in 15 years on hopes of stronger corporate earnings, and gained 2.4 percent on the week. The Nikkei rose as high as 20,006 before ending down 0.2 percent at 19,907.63.

Moody’s lifts Sensex 177 pts; Reliance up 3%, PNB jumps 6%

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Bulls remained in power on Thursday as the market cheered the India outlook upgrade by Moody’s. The Nifty ended above 8750 level supported by banks stocks and index heavyweight Reliance Industries. However, healthcare and telecom stocks were under pressure. The market sustained its uptrend for the fifth consecutive session today with the 30-share BSE Sensex rallying 177.46 points or 0.62 percent to 28885.21. The 50-share NSE Nifty climbed 63.90 points or 0.73 percent to 8778.30. Moody’s has upgraded India’s outlook to positive from stable but the rating remained unchanged at Baa3. The rating agency said rating upgrade will depend on investment uptick and reform implementation. “It’s a reflection of the fundamentals improving dramatically in India and it will lead to further inflows by FIIs,” said Hans Goetti, head of Investment – Asia, Banque Internationale. “We have actually seen quite a lot of inflows over the past few months into bonds especially fixed income. This is because interest rates in India are bound to come down as inflation comes down and on a risk reward basis bonds are probably even more attractive than equities at this point, so foreign inflows will continue,” Goetti explained. RBI Governor Raghuram Rajan said Moody’s outlook upgrade is positive but India must do more. Meanwhile, the Hyderabad Special Court sentenced Ramalinga Raju, the prime accused of the Satyam fraud to 7 years imprisonment, finding him guilty of cheating, forgery, and criminal breach of trust. All other accused also held guilty by the court. Banks took the lead with the BSE Bankex rising 2.5 percent or 459 points. Country’s largest lender State Bank of India was up 2.5 percent while its rival Axis Bank gained 2.9 percent. ICICI Bank and HDFC Bank rallied 1.7 percent each. Punjab National Bank, IndusInd Bank and Kotak Mahindra Bank topped the buying list on Nifty, up 4-6 percent. Petrochemical major Reliance Industries was the leading contributor to Sensex’s gains, up 3.4 percent followed by Tata Steel with 2.7 percent upside. Coal India gained 1.7 percent as brokerage Macquarie reiterated its outperform rating on the stock with increased target price of Rs 452 (from Rs 420) and upgraded earnings by 8 percent after coal ministry issued a directive removing an earlier cap on e-auction volume effective April 2015. However, the BSE Healthcare Index dropped 2 percent after Bank of America Merrill Lynch downgraded Sun Pharma to underperform from buy; and Lupin, Cipla & Cadila Healthcare to neutral from buy. The brokerage believes that some stocks in sector may be priced to perfection with less room for error. Sun Pharma, Lupin and Cadila Healthcare plunged 3 percent each while Cipla lost 2 percent. Telecom stocks like Bharti Airtel and Idea Cellular slipped 2-3 percent after TRAI has reduced ceiling tariffs on national roaming. Come May 1, national roaming voice tariff will be cut by 25 percent and SMS tariff will see a 75 percent reduction. It was a stellar listing for Inox Wind that listed at a 24 percent premium to the issue price of Rs 325 today. The scrip closed at Rs 438.40, higher by 34.89 percent. Deepak Asher, Director of the company said the company is extremely bullish on the renewable energy sector which is set for unprecedented growth going forward. Max India climbed nearly 4 percent after the Reserve Bank of India notified government’s decision to raise FDI limit in the insurance sector, paving the way for Bupa to increase stake in Max Bupa. The market breadth was positive as about 1579 shares advanced against 1263 shares declined on the Bombay Stock Exchange. Global markets were mixed today. Hang Seng continued its surge, rising more than 700 points to hit a fresh 7-year high. However, Shanghai fell 0.9 percent on profit booking. In Europe, France’s CAC, Germany’s DAX and Britain’s FTSE gained 0.5-1 percent (at 16 hours IST).

Moody’s lifts Sensex 177 pts; Reliance up 3%, PNB jumps 6%

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Bulls remained in power on Thursday as the market cheered the India outlook upgrade by Moody’s. The Nifty ended above 8750 level supported by banks stocks and index heavyweight Reliance Industries. However, healthcare and telecom stocks were under pressure. The market sustained its uptrend for the fifth consecutive session today with the 30-share BSE Sensex rallying 177.46 points or 0.62 percent to 28885.21. The 50-share NSE Nifty climbed 63.90 points or 0.73 percent to 8778.30. Moody’s has upgraded India’s outlook to positive from stable but the rating remained unchanged at Baa3. The rating agency said rating upgrade will depend on investment uptick and reform implementation. “It’s a reflection of the fundamentals improving dramatically in India and it will lead to further inflows by FIIs,” said Hans Goetti, head of Investment – Asia, Banque Internationale. “We have actually seen quite a lot of inflows over the past few months into bonds especially fixed income. This is because interest rates in India are bound to come down as inflation comes down and on a risk reward basis bonds are probably even more attractive than equities at this point, so foreign inflows will continue,” Goetti explained. RBI Governor Raghuram Rajan said Moody’s outlook upgrade is positive but India must do more. Meanwhile, the Hyderabad Special Court sentenced Ramalinga Raju, the prime accused of the Satyam fraud to 7 years imprisonment, finding him guilty of cheating, forgery, and criminal breach of trust. All other accused also held guilty by the court. Banks took the lead with the BSE Bankex rising 2.5 percent or 459 points. Country’s largest lender State Bank of India was up 2.5 percent while its rival Axis Bank gained 2.9 percent. ICICI Bank and HDFC Bank rallied 1.7 percent each. Punjab National Bank, IndusInd Bank and Kotak Mahindra Bank topped the buying list on Nifty, up 4-6 percent. Petrochemical major Reliance Industries was the leading contributor to Sensex’s gains, up 3.4 percent followed by Tata Steel with 2.7 percent upside. Coal India gained 1.7 percent as brokerage Macquarie reiterated its outperform rating on the stock with increased target price of Rs 452 (from Rs 420) and upgraded earnings by 8 percent after coal ministry issued a directive removing an earlier cap on e-auction volume effective April 2015. However, the BSE Healthcare Index dropped 2 percent after Bank of America Merrill Lynch downgraded Sun Pharma to underperform from buy; and Lupin, Cipla & Cadila Healthcare to neutral from buy. The brokerage believes that some stocks in sector may be priced to perfection with less room for error. Sun Pharma, Lupin and Cadila Healthcare plunged 3 percent each while Cipla lost 2 percent. Telecom stocks like Bharti Airtel and Idea Cellular slipped 2-3 percent after TRAI has reduced ceiling tariffs on national roaming. Come May 1, national roaming voice tariff will be cut by 25 percent and SMS tariff will see a 75 percent reduction. It was a stellar listing for Inox Wind that listed at a 24 percent premium to the issue price of Rs 325 today. The scrip closed at Rs 438.40, higher by 34.89 percent. Deepak Asher, Director of the company said the company is extremely bullish on the renewable energy sector which is set for unprecedented growth going forward. Max India climbed nearly 4 percent after the Reserve Bank of India notified government’s decision to raise FDI limit in the insurance sector, paving the way for Bupa to increase stake in Max Bupa. The market breadth was positive as about 1579 shares advanced against 1263 shares declined on the Bombay Stock Exchange. Global markets were mixed today. Hang Seng continued its surge, rising more than 700 points to hit a fresh 7-year high. However, Shanghai fell 0.9 percent on profit booking. In Europe, France’s CAC, Germany’s DAX and Britain’s FTSE gained 0.5-1 percent (at 16 hours IST).