The market maintained its northward journey for the fourth consecutive session on Wednesday with the Nifty conquering 8700 level. The broader markets also moved in tandem with benchmarks. Positive global cues and banks passing on rate cuts to system boosted sentiment today. The 30-share BSE Sensex jumped 191.16 points to 28707.75 and the 50-share NSE Nifty rallied 54.10 points to 8714.40 supported by technology, FMCG, Coal India and Reliance Industries. Sanjay Dutt of Quantum Securities feels the risk reward is now favorable for long term investors. He is positive on banks, NBFCs and midcap capital goods. Asian markets too were strong today as Hang Seng sky rocketed to a 961-point gain, up 3.8 percent at a seven-year high while Shanghai topped 4000 for the first time ever, after Bank of Japan kept its massive monetary stimulus plan intact. Back home, banks and realty stocks remained in focus today. Leading banks like SBI, HDFC Bank, ICICI Bank and Axis Bank cut lending rates by 15-25 basis points yesterday after the RBI nudged banks to lower rates as the central bank has already cut repo rate by 50 basis points in 2015. SBI and HDFC Bank were up 0.2-0.6 percent whereas ICICI Bank and Axis Bank fell 0.5-0.7 percent. Real estate was one of the top performing sectors after the cabinet approved the Real Estate Development and Regulation Bill that paved the way for setting up a regulator for the sector. HDIL said the bill was a positive move which will increase transparency in the sector. Shares like Brigade Enterprises, HDIL, Indiabulls Real, Puravankara Projects, Sobha and Sunteck Realty rallied 2-8 percent. Coal India was the biggest gainer on Sensex, up nearly 6 percent after the government removed the cap on e-auction sales volumes. Bipin K Saxena, Director-Marketing, CIL said the company was looking to sell more coal via the e-auction route, targeting 10 percent of total sales via e-auction route. Index heavyweight Reliance Industries was the biggest contributor to Sensex gains, up 4 percent. Royal Dutch Shell will buy the BG Group in a cash and stock deal worth a whopping USD 70 billion, the biggest deal in the oil & gas sector in a decade. State-run oil marketing company BPCL surged 3 percent after UBS upgraded the stock to buy with increased target price of Rs 945. The brokerage said it ranked best amongst peers. Drug maker Dr Reddy’s Labs climbed 2 percent as the company and its subsidiary Promius Pharma filed three new drug applications with the US Food and Drug Administration. While reiterating overweight rating with a potential upside of 15 percent, Barclays believes these filings can translate into launches in this segment from FY17E onwards and revenue potential is likely to be USD 30-100 million for each filing with the entire segment likely to be worth USD 500 million over the next 4-5 years. However, Sesa Sterlite was down 2 percent after S&P downgraded Vedanta’s credit rating to BB- from BB with a negative outlook citing weak financial performance for atleast 12 more months because of low oil prices. Among others, Infosys, TCS, ITC, Bharti Airtel, Cipla and GAIL gained 1-2.5 percent whereas HDFC, Hero Motocorp and ONGC fell 1-2 percent. The BSE Midcap Index gained 0.7 percent and Smallcap jumped 1.8 percent. Advancing shares outnumbered declining ones by a ratio of 1758 to 1020 on the Bombay Stock Exchange. In the broader space, Glenmark Pharma shot up nearly 5 percent after the cabinet committee on economic affairs approved hiking company’s FII limit to 49 percent from 35.07 percent. Additionally the company’s US arm’s pricing investigation has been concluded which is not expected to materially impact the company’s cashflow. Rural Electrification Corporation gained 2.6 percent as its offer for sale got fully subscribed. The government is looking to rake up around Rs 1,550 crore via the offer for sale. Midcaps like Ess Dee Aluminium, Kitex Garments, Bajaj Hindusthan, Prism Cement, Geometric, Amtek Auto, JK Tyre, HCL Infosystems, India Cements, IRB Infrastructure, Vakrangee and Crompton Greaves surged 4-20 percent. Meanwhile, Prime Minister, Narendra Modi launched Mudra or the Micro Units Development & Refinance Agency today. The NBFC has a corpus of Rs 20,000 crore and credit guarantee corpus of Rs 3,000 crore. Modi expects traditional banking system to move towards MUDRA model in 1 year, saying it will provide the bottom up push needed to expand GDP. India’s aviation sector reclaimed its pride as the US regulator Federal Aviation Authority upgraded air safety rating, which was shot in the arm for Air India and Jet Airways which can now sign code-share agreements with US airlines.
India Inc wants rate cut: Unhappy with the RBI’s decision to keep policy rate unchanged, India Inc on Tuesday said banks must immediately pass on the benefit of earlier rate cuts to borrowers to kickstart growth and stimulate investment. RBI lowered interest rates by a total of 0.50 percent since January 2015, but banks are yet to pass on the benefit to borrowers. “With the RBI choosing not to reduce the policy interest rate, demand revival in the economy and pick up in the investment cycle would remain a tall order”. “The ball is clearly in the court of the banks to rise to the occasion since credit off-take has remained weak despite front loading of the two rate cuts,” Assocham President Rana Kapoor said. Reserve Bank Governor Raghuram Rajan today kept policy rate unchanged awaiting clarity on impact of unseasonal rains on food inflation even as he wanted banks to pass on benefits of previous two rate cuts. “Industry is facing a tough environment as the demand is decelerating and costs of doing businesses are rising,” PHD Chamber President Alok B Shriram said. “There must be transmission by the banks of the front loaded repo rate cut by RBI to the lending rates,” he added. The repo rate, at which RBI lends to the banking system, will continue to be at 7.5 percent and the cash reserve ratio, which is the amount of deposits parked with the central bank, will remain at 4 percent . “A cut in policy rates even by a modest 25 basis points would have been a mood elevator and propelled industry and consumers to augment demand. 02:02pm Market Check The market trimmed losses supported by Reliance Industries. The Sensex dropped 86.94 points to 28417.52 and the Nifty declined 38.55 points to 8621.35. About 1404 shares have advanced, 1204 shares declined, and 162 shares are unchanged on the BSE. The Reserve Bank of India left key policy rates unchanged today. It expects inflation to cool down to 4 percent by August but firm up again to 5.8 percent by year-end. The central bank says they will look through seasonal and base effect for inflation. The Reserve Bank has estimated FY16 GDP at 7.8 percent, 30 basis points more than the CSO expectation. RBI Governor, Raghuram Rajan says there is more room to cut interest rates but will watch out for data, adding that banks over time will be forced to match markets and bring down rates. The governor also says that US Fed’s policy changes will not constrain RBI’s move on rates. The rupee weakened marginally to 62.37 a dollar against a close of 62.18 in previous session on account of fresh demand for the dollar from importers and weakness in the equity markets. Global markets like Shanghai and Nikkei closed with handsome gains today, up 1-2.5 percent while European markets gained more than 1 percent. In positive macro data, UK Services PMI jumped to 58.9 in March against 56.7 in February.
Apr 06, 2015, 01.37 PM IST | Source: Moneycontrol.com Sensex, Nifty rangebound; Geometric up 4%, Sun TV bleeds The market remained rangebound in afternoon trade with the Nifty hovering around 8600 level. Healthcare and FMCG stocks gained strength while banking & financials stocks continued to see selling pressure. 3 0Google +0 0 13:00 Moneycontrol Bureau 01:40pm Market Expert: Fourth quarter earnings is likely to fall short of market expectations, feels Sanjeev Prasad, Senior Executive Director & Co Head (Strategy), Kotak Institutional Equities. In an interview with CNBC-TV18, Prasad sees risks to earning s estimates in the auto, metal, banking, energy and capital good sectors. He expects aggregate March quarter net profits of Sensex companies to grow 6.3 percent year-on-year. Kotak Securities has already trimmed estimates for companies in the metals and mining sectors, says Prasad. Prasad says a pick up in investment cycle is still 3-4 quarters away, and making matters difficult for investors is that quality stocks are extremely expensive at current prices. 01:25pm NTPC in Focus: State-run NTPC is looking at bringing its coal import bill to ‘zero’ in the next five years and will rely on the fossil fuel made available by Coal India and the company’s own mines. The power major is one of the country’s largest consumers of coal. “Our aim is to have zero import of coal, and manage with the coal from Coal India sources or our own mines,” NTPC CMD Arup Roy Choudhury told PTI. When asked about the timeframe in which the PSU plans to have nil coal imports, Choudhury said, “You can say in the next five years.” NTPC ventured into coal mining as part of its backward integration process for fuel security. The company has been allotted 10 coal blocks including Chatti-Bariatu, Chatti-Bariatu (South) and Kerandari in Jharkhand, Dulanga in Odisha and Talaipalli in Chhattisgarh. Its another block — Pakri-Barwadih — in Jharkhand is likely to commence coal production by the end of this calender year and the remaining mines subsequently. 01:00pm Market Check The market remained rangebound in afternoon trade with the Nifty hovering around 8600 level. Healthcare and FMCG stocks gained strength while banking & financials stocks continued to see selling pressure. The Sensex climbed 72.67 points to 28332.81 and the Nifty rose 20.65 points to 8606.90. About 1553 shares have advanced, 933 shares declined, and 169 shares are unchanged on the BSE. Geometric shares rallied 4 percent as sources told CNBC-TV18 that private equity player General Atlantic is looking to pick up the Godrej Group’s 38.4 percent controlling interest in the IT company. Sun TV lost over 9 10 percent amid heavy volumes after the Enforcement Directorate issued an order to attach properties and assets worth Rs 742 crore belonging to Kalanithi and Dayanidhi Maran.
Market Closing: The market reversed its gains due to profit booking in last couple of hours of trade. The Sensex fell 18.37 points to 27957.49 and the Nifty declined 1.30 points to 8491. However, the broader markets outperformed benchmarks. The BSE Midcap and Smallcap indices gained 0.3 percent and 0.9 percent, respectively. About 1581 shares have advanced, 1141 shares declined, and 176 shares are unchanged on the BSE. ONGC, Hindalco Industries, Tata Steel, HDFC Bank, M&M, PNB and UltraTech Cement lost 1-3 percent while BPCL rallied 5 percent. Tata Power, GAIL, Tata Motors, Reliance Industries and Dr Reddy’s Labs gained 1.5-3.5 percent. 03:05pm HCC in News: HCC, the leading infrastructure construction company, has been awarded contract worth Rs 392.13 crore from the Ministry of Road Transport and Highway (MoRTH) for 4-laning of 26km long road on NH52 between Jamugurihat to Biswanath Chariali by-pass in Assam. The project will be completed in 36 months. The project is part of the Special Accelerated Road Development Programme for North Eastern Region (SARDP-NE) and includes rehabilitation, upgradation and augmentation of the existing carriageway, major and minor bridges, culverts, road intersections, interchanges, drains, etc. The order-book position as of December 2014 stood at Rs 14,307 crore. 02:50pm Wheat import largest in 5 years: India has bought up to 80,000 tonnes of Australian wheat in recent deals, three trade sources said today, the biggest such imports by the country in five years as unseasonal rains damage the crop at home. Purchases by the Fworld’s No.2 wheat consumer and producer could buoy benchmark Chicago prices , which rallied more than 6 percent in the past two sessions and are currently near a one-week top amid concerns over dry weather and rising temperatures hurting the US winter crop. Indian flour millers have bought between 70,000 and 80,000 tonnes of Australian prime wheat for April-May shipment at USD 260-USD 265 a tonne, including cost and freight. “They have bought three cargoes as some mills are taking coverage because of reports of rain damage,” said one Singapore-based trading manager with an international trading company. “We don’t expect India to buy large volumes as they have substantially large stocks but there could be some demand for higher grade wheat.” 02:25pm Market Update: The market erased gains with the Sensex falling 8.12 points to 27967.74 and the Nifty declining 4.80 points to 8487.50. About 1552 shares have advanced, 1036 shares declined, and 179 shares are unchanged on the BSE. 02:15pm Videocon d2h IPO: Videocon d2h, the satellite television arm of Videocon Group, will have to file a new draft prospectus for an initial public offering in domestic markets after fund raising via American depositary shares (ADS), Saurabh Dhoot, director of the company, told Reuters. Videocon d2h agreed to sell ADS worth up to USD 375 million to US-based Silver Eagle Acquisition Corp in January, which would get listed on Nasdaq stock exchange on Tuesday. That means the company has to file a new application after filing one in October 2014 to raise up to Rs 700 crore (USD 113.3 million). “We would have a market cap of close to USD 1.2 billion and an enterprise value of USD 1.5 billion after Nasdaq listing,” Dhoot added. 02:00pm Market Check The market extended rally in afternoon trade with the Nifty inching towards 8550 led by banks and oil stocks. The broader markets gained further too; the BSE Midcap climbed 0.8 percent and Smallcap surged 1.4 percent. The Sensex jumped 193.10 points to 28168.96 and the Nifty shot up 57.10 points to 8549.40. About 1681 shares have advanced, 886 shares declined, and 152 shares are unchanged on the BSE. Anish Damania of IDFC Securities expects Nifty to remain range bound between 8000-9000 over the next six months. Country’s largest lenders State Bank of India, ICICI Bank and Axis Bank gained 1-1.5 percent whereas HDFC Bank fell 0.5 percent. Tata Motors extended upside, up 3.3 percent. Tata Power rallied 3.7 percent and Adani Power gained over a percent. Supreme Court ruled that companies can use argument of change in international law to charge higher tariff. Reliance Industries rose over 2 percent as brokerage Morgan Stanley upgraded the stock to overweight from underweight and raised target price to Rs 1,062.
02:15pm Videocon d2h IPO: Videocon d2h, the satellite television arm of Videocon Group, will have to file a new draft prospectus for an initial public offering in domestic markets after fund raising via American depositary shares (ADS), Saurabh Dhoot, director of the company, told Reuters. Videocon d2h agreed to sell ADS worth up to USD 375 million to US-based Silver Eagle Acquisition Corp in January, which would get listed on Nasdaq stock exchange on Tuesday. That means the company has to file a new application after filing one in October 2014 to raise up to Rs 700 crore (USD 113.3 million). “We would have a market cap of close to USD 1.2 billion and an enterprise value of USD 1.5 billion after Nasdaq listing,” Dhoot added. 02:00pm Market Check The market extended rally in afternoon trade with the Nifty inching towards 8550 led by banks and oil stocks. The broader markets gained further too; the BSE Midcap climbed 0.8 percent and Smallcap surged 1.4 percent. The Sensex jumped 193.10 points to 28168.96 and the Nifty shot up 57.10 points to 8549.40. About 1681 shares have advanced, 886 shares declined, and 152 shares are unchanged on the BSE. Anish Damania of IDFC Securities expects Nifty to remain range bound between 8000-9000 over the next six months. Country’s largest lenders State Bank of India, ICICI Bank and Axis Bank gained 1-1.5 percent whereas HDFC Bank fell 0.5 percent. Tata Motors extended upside, up 3.3 percent. Tata Power rallied 3.7 percent and Adani Power gained over a percent. Supreme Court ruled that companies can use argument of change in international law to charge higher tariff. Reliance Industries rose over 2 percent as brokerage Morgan Stanley upgraded the stock to overweight from underweight and raised target price to Rs 1,062.
02:40pm Interview: Irfan Razack, CMD of Prestige Estates said the company is confident of beating FY15 sales guidance of Rs 5000 crore backed by a healthy demand scenario. The company did pre-launch of six projects in Bangalore and it is also seeing a good response for their new projects in Hyderabad. Going forward they are confident of attaining 15-20 percent growth and expect revenues from Kochi and Chennai to improve significantly in FY16. 02:20pm Gold Update: Gold dropped for a second straight session today, slipping further from a three-week high, as the dollar climbed after Federal Reserve Chair Janet Yellen signaled the US central bank may be on course to raise interest rates later this year. Bullion may be set to give up recent gains fueled by the Fed’s March policy statement that it was prepared to move more slowly in hiking US rates than the market expected. The metal rose for seven consecutive sessions after the Fed’s meeting this month in its longest rally since 2012. On Friday, Yellen said an increase in the Fed’s benchmark rate “may well be warranted later this year” given sustained improvement in US economic conditions. Bullion is headed for a second consecutive monthly drop in March as a looming US rate hike dims the appeal of a non-interest bearing asset. 02:00pm Market Check: Bulls kept complete control over Dalal Street today. The Sensex extended rally, up 401.19 points or 1.46 percent at 27859.83 and the Nifty surged 111.50 points or 1.34 percent to 8452.90. The broader markets also gained further with the BSE Midcap and Smallcap indices rising 1.6 percent and 2.8 percent, respectively. About 1911 shares have advanced, 723 shares declined, and 133 shares are unchanged on the BSE. UltraTech Cement, Idea Cellular, ONGC, ITC, Bharti Airtel and Coal India topped the buying list on Sensex, up 3-4 percent. HDFC gained 2.5 percent after Keki Mistry told CNBC-TV18 that with regards to HDFC Life the timing or amount of IPO is not decided yet and Standard Life will want to increase stake in HDFC Life but the quantum is not decided. Separately, they see scope of further 25 to 50 bps rate cuts but don’t expect any movement on April 7. Shares of HDFC Bank, L&T, Axis Bank, ICICI Bank, TCS, SBI, HUL, Wipro, Hero Motocorp and Tata Steel climbed 1-2 percent whereas Reliance Industries, Hindalco Industries and Tata Power remained under pressure.
After a choppy session of trade, the market closed flat on Friday. In fact, it was a sigh of relief for the market today after a 654-point crash on the Sensex in previous session. Banks helped the market recover in last couple of hours of trade while telecom, pharma, FMCG and index heavyweights like Reliance & HDFC saw consistent selling pressure. The 30-share BSE Sensex fell more than 200 points intraday, before closing up 1.06 points at 27458.64. The index was up for the first time in last eight consecutive sessions. However, the 50-share NSE Nifty ended at 8341.40, down 0.75 point after hitting a day’s low of 8269.15. Ajay Srivastava of Dimension Consulting said domestic market was looking very weak. Valuations for Indian market have gotten out of hand and the next 12 months could be “very painful” for some parts of it, believes Srivastava. He said that economy looked “fundamentally positive” in the wake of reforms undertaken by the government, but the steps will take time to percolate down to earnings. “Some correction has already happened. More has to happen,” he added. After seeing more than a percent fall intraday, the broader markets also closed flat but the market breadth remained in favour of declines in the ratio of 1787 to 1075 on the Bombay Stock Exchange. For the week, the Sensex and Nifty saw third consecutive weekly fall, down 2.8 percent and 2.7 percent, respectively. Bank Nifty and BSE IT & Metal indices were down 3 percent each. Today the Bank Nifty gained 1 percent supported by ICICI Bank (up 2.23 percent), State Bank of India (up 2.6 percent), HDFC Bank (up 0.6 percent) and Axis Bank (up 0.4 percent). Auto stocks like Tata Motors and Maruti Suzuki gained 1.3-1.8 percent whereas M&M and Hero Motocorp fell over 1 percent. Larsen & Toubro climbed 2.5 percent on getting orders worth Rs 1,711 in March and on plans to list businesses over next three years. It major Infosys rallied 2.7 percent after unlisted rival Accenture raised its revenue growth guidance for 2015 to 8-10 percent from 5-8 percent earlier. Aluminium major Hindalco Industries was also among top gainers, up 3 percent. However, telecom stocks reeled under pressure today as even though the regulatory overhang got lifted with the conclusion of auctions, investors remained concerned about the spectrum payout impact on the companies’ balance sheets. Bharti Airtel tanked 5.8 percent and Idea Cellular lost 4.6 percent. Idea Cellular & Yes Bank added in the Nifty 50 today while JSPL & DLF were excluded from the index. HDFC, Reliance Industries, ITC, Wipro, Sun Pharma, HUL, BHEL, Dr Reddy’s Labs were other prominent losers, down 1-3.5 percent. In the broader space, JSPL jumped 4.5 percent. The Delhi High court raised an eyebrow over the government’s decision to cancel coal block bids from JSPL and BALCO on Thursday calling the move unfair. The court asked the government what changed its stance on the possibility of carterlisation and also on why a re-auction has not been considered. Meanwhile, upstream companies may not have to bear any subsidy burden for the fourth fiscal, even as the government looks to notify a lower price for gas which will come into effect from the April 1, say sources. The Prime Minister Narendra Modi urged families who can afford to pay the unsubsidised price of LPG cylinders to voluntarily give up on LPG subsidy. Global markets were mixed today. Oil prices headed southward once again as concerns over closure of a key oil shipping route near Yemen eased. Brent crude fell more than a percent to USD 58.5 a barrel and NYMEX dropped nearly two percent to USD 50.5 a barrel. Goldman Sachs in its note today said that the strikes in Yemen would have little effect on oil supplies. Yemen is only a small crude exporter and tankers could avoid passing its waters to reach their ports of destination.