Sensex ends flat, Nifty Midcap underperforms; IOC, HPCL, BPCL dip

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02 January 2018

3:30 pm Market Closing:Benchmark indices ended on a flat note but the broader markets corrected for second consecutive session.

The 30-share BSE Sensex was down 0.49 points at 33,812.26 and the 50-share NSE Nifty gained 6.70 points at 10,442.20.

About 1,687 shares declined against 1,152 advancing shares on the BSE.

3:10 pm Market Outlook: Hinting at a growth of over 20 percent year on year, IDFC Securities has pegged Nifty's FY19 EPS target to be Rs 577.

In a report on its India strategy, the broking firm said that asset heavy and export-oriented industries are likely to benefit by recovery in global economy.

Meanwhile, consumption and discretionary consumption will find growth impetus from retail credit, it said in its report. In fact, it expects recent reduction in tax rates to boost overall consumption.

On the downside, it sees mild downgrade risks to be continuing in the near term, but earnings could bounce from FY19.

2:58 pm Buzzing: Mahindra and Mahindra shares gained more than 1 percent intraday after global brokerage house CLSA said M&M is its top buy in Indian Autos for 2018.

The research firm has retained its Buy call and raised target price to Rs 910 from Rs 885 per share as the company is benefitting from healthy demand in tractors & cyclical recovery in light commercial vehicles.

Sports utility vehicles volumes are bottoming out & upcoming multi-purpose vehicle (MPV) launch should boost growth, CLSA said. "We see a case to be more positive on Rural India given rising government spending and general elections in 2019."

Volume/EPS CAGR may improve from 0/1 percent over FY14-17 to 10/14 percent over FY17-20, according to the research house.

2:45 pm Sugar Update: Sugar prices soared by Rs 60 per quintal at the wholesale market in the national capital today on heavy buying by stockists and bulk consumers to meet new month's demand.

Marketmen said immense buying by stockists as well as bulk consumers such as soft-drink, ice-cream makers and traders to meet new month demand, mainly attributed the rise in sweetener prices.

Besides, tight supplies from mills too helped the upmove, they added.

Sugar ready M-30 and S-30 prices jumped up by Rs 60 each to settle at Rs 3,490-3,690 and Rs 3,480-3,680 per quintal. Mill delivery M-30 and S-30 prices also shot up by Rs 55 each to finish at Rs 3,240-3,440 and Rs 3,230-3,430 per quintal.

2:32 pm Market Check: Benchmark indices were mildly lower but the broader markets extended losses in afternoon.

The 30-share BSE Sensex was down 62.10 points at 33,750.65 and the 50-share NSE Nifty declined 16.70 points to 10,418.80 while the Nifty Midcap was down 1 percent.

About two shares declined for every share rising on the BSE.

Anil Dhirubhai Ambani Group stocks were under pressure on profit booking. Reliance Naval and Reliance Communications plunged over 10 percent while Reliance Infrastructure, Reliance Power, Reliance Nippon and Reliance Capital were down 1-7 percent.

2:25 pm Order Win: L&T Construction, the construction arm of Larsen & Toubro, has won orders worth Rs 1,454 crore across various business segments.

Smart world and communications business unit has secured order worth Rs 864 crore for implementation of 5 million smart meters while its power transmission and distribution business has bagged orders worth Rs 568 crore from both international and domestic customers.

2:10 pm IPO: Hospitality chain Lemon Tree Hotels has received capital market regulator Sebi's go ahead to float an initial public offering.

The company had filed the draft red herring prospectus (DRHP) with Sebi in September and obtained its "observations" on December 22, which is necessary for any company to launch public offer, latest update with the regulator showed.

Going by the draft papers, Lemon Tree Hotels' public offer comprises sale of up to 195,797,000 equity shares by the existing shareholders, including Maplewood, Whispering Resorts, Palms International and RJ Corp.

The offer will constitute up to 24.90 percent of the post-offer paid up equity share capital of the company.

1:59 pm Stake Sale: Principal Financial Group and Punjab National Bank (PNB) announced the signing of a shares purchase agreement to give Principal full ownership of the Principal-PNB asset management company and Principal Trustee Company Private Limited in India, pending regulatory approval.

1:49 pm Economic Growth: India's growth rate is expected to accelerate over the coming year and is likely to improve further to 7.6 percent by 2019-20 as key sectors would revive from disruptions related to the implementation of GST and demonetisation, says an HSBC report.

According to the global financial services major, GDP growth in India is expected to accelerate to 7.0 per cent in 2018-19 from 6.5 percent in this fiscal, shaking off the disruptions from demonetisation and introduction of the Goods and Services Tax (GST).

"India's growth story has a two-part narrative. The first is a slowdown and gradual recovery in the short run, likely over FY18 and FY19, as key sectors revive from disruptions related to the implementation of GST," HSBC said in a research note.

1:39 pm Auto sales: Royal Enfield, the two-wheeler division of Eicher Motors, today reported 16.67 percent growth in total sales at 66,968 units in December.

The company had sold 57,398 units in December 2016, Royal Enfield said in a statement.

Domestic sales were at 65,367 units last month as against 56,316 units in December 2016, up 16 percent.

Exports rose 47.96 percent to 1,601 units as against 1,082 units in the same month previous year, it said.

1:26 pm NMDC hikes prices: Sources told CNBC-TV18 that NMDC has raises prices by Rs 500/tonne on both fines & lumps for January 2018.

Lumps prices increased 19 percent and fines prices 22 percent for January 2018.

1:15 pm Inter-bank transactions: Automated teller machine (ATM) operators, especially those of private banks, have demanded a raise in inter-bank charges for ATM transactions, according to a report by Business Standard.

The reasons cited for the demand were the impact of demonetization, an increase in the cost of operating the channel, and fewer cash withdrawals by users. If it is heeded, using ATMs is likely to become a costlier affair for the common man.

The operators' demand is being represented by National Payments Corporation of India (NPCI), after the state-owned payments company held separate meetings with private and public sector banks.

1:00 pm Tata Motors gains: Tata Motors shares gained 3 percent intraday Tuesday following strong sales data across segments in last month of passing year.

"The commercial and passenger vehicles domestic sales in December 2017 was at 54,627 units as against 35,825 units in December 2016, a growth of 52 percent, due to increasing demand for vehicles across segments, new product launches and strategic customer initiatives," the company said in its filing.

Commercial vehicles domestic sales during the month increased 62 percent to 40,447 units YoY, led by steady production ramp-up of new range of BS4 vehicles and continued uptick in sales in consumption-driven sectors.

12:44 pm Buzzing: Shares of Ashok Leyland advanced 3.5 percent intraday as the company has registered 79 percent growth in December 2017 sales volume.

The company has sold 19,253 vehicles in December 2017 against 10,731 vehicles in December 2016, growth of 79 percent.

The total sales includes sale of Medium and Heavy Commercial Vehicle (M&HCV) of 15,950 vehicles in December 2017 against 8,782 in December 2016, growth of 82 percent.

Light Commercial Vehicle (LCV) sales also registered 69 percent increase to 3,303 vehicles versus 1,949 vehicles, YoY.

12:25 pm Auto sales: "The commercial and passenger vehicles domestic sales in December 2017 was at 54,627 units as against 35,825 units in December 2016, a growth of 52 percent, due to increasing demand for vehicles across segments, new product launches and strategic customer initiatives," Tata Motors said in its filing.

Commercial vehicles domestic sales during the month increased 62 percent to 40,447 units YoY, led by steady production ramp-up of new range of BS4 vehicles and continued uptick in sales in consumption-driven sectors.

The medium & heavy commercial vehicle trucks segment registered a whopping 83 percent growth while light and intermediate commercial vehicles sales increased by 78 percent, it said.

In December 2017, passenger vehicles sales grew by 31 percent to 14,180 units in December 2017, against 10,827 units sold in year-ago.

Strong performance of Tiago, Tigor, Hexa and Nexon drove the growth momentum, Tata Motors said.

12:02 pm Management Interview: The investigation arm of the revenue department has sent notices under the goods and services tax (GST) anti-profiteering law to three entities, including Hardcastle Restaurants and retail shopping outlet Lifestyle and some of the stockists of Hindustan Unilever (HUL) for not passing the benefit of cost reduction to consumers.

In an interview to CNBC-TV18, Sunil Duggal, CEO of Dabur India and MS Mani of Deloitte India said that contours of anti-profiteering rule are fairly clear but implementation is difficult for fast moving consumer goods (FMCG).

He further said that there are conflicting laws with regards to pricing in lower value FMCG products.

According to him, scrutiny should be for the entire distribution chain.

Deloitte's Mani said that we do not have any mechanism to determine whether price cuts have been passed or not.

"I would say a strong law needs to be supported by very strong and clear implementation rule," he added.

11:40 am Auto sales: Tata Motors shares gained nearly 2 percent intraday following strong sales data across segments in last month of passing year.

"The commercial and passenger vehicles domestic sales in December 2017 was at 54,627 units as against 35,825 units in December 2016, a growth of 52 percent, due to increasing demand for vehicles across segments, new product launches and strategic customer initiatives," the company said in its filing.

Commercial vehicles domestic sales during the month increased 62 percent to 40,447 units YoY, led by steady production ramp-up of new range of BS4 vehicles and continued uptick in sales in consumption-driven sectors.

In December 2017, passenger vehicles sales grew by 31 percent to 14,180 units in December 2017, against 10,827 units sold in year-ago.

11:29 am Order Win: Ramco Systems, the global aviation software provider on Cloud and Mobile, today announced that it has secured an order from the world's largest and longest running aerial tour company, Papillon Grand Canyon Helicopters, to install Ramco Aviation Suite V5.8, for maintenance and engineering operations of its fleet.

The stock price rallied nearly 6 percent.

Ramco will service two Papillon entities Papillon Grand Canyon Helicopters and Grand Canyon Scenic Airlines with its state-of-the-art Aviation Suite 5.8, integrating both facilities' disparate manual systems on a single digital platform to improve company-wide productivity and process efficiency.

11:10 am Crude Update: Oil prices had their highest January opening since 2014 today, supported by ongoing supply cuts led by OPEC and Russia as well as strong demand.

Only rising US production, which is on the verge of breaking through 10 million barrels per day (bpd), is somewhat hampering the outlook into 2018.

Brent crude futures - the international benchmark for oil prices -were at USD 67.07 a barrel, up 0.3 percent while US West Texas Intermediate (WTI) crude futures were at USD 60.58 a barrel, up 0.28 percent, from their last settlement of 2017.

10:55 am Market Update: Benchmark indices turned volatile after opening rally, but the broader markets extended losses with the Nifty Midcap falling over half a percent.

Nifty PSU Bank was the biggest loser among sectoral indices, falling over a percent. Bank of Baroda, Union Bank, Bank of India, Allahabad Bank, Syndicate Bank, PNB, Canara Bank and SBI were down 1-2 percent.

The 30-share BSE Sensex was up 5.41 points at 33,818.16 and the 50-share NSE Nifty gained 6.20 points at 10,441.70.

About two shares declined for every share rising on the BSE.

10:40 am Factory Data: India's factory activity expanded at the fastest pace in five years in December, a private sector survey showed on Tuesday, buoyed by a rise in output and new orders, which allowed firms to raise prices.

Tuesday's data firms up views that business in Asia's third-largest economy continues to recover but also highlights risks that rising price pressures will keep the Reserve Bank of India (RBI) from slashing interest rates further.

The Nikkei Manufacturing Purchasing Managers' Index, compiled by IHS Markit, rose to 54.7 in December from November's 52.6, marking its fifth straight month above the 50 level that separates expansion from contraction.

10:20 am Rupee Trade: The rupee retreated from fresh five-month high level to trade lower by 2 paise at 63.70 against the US currency in early session on some dollar buying by importers and banks.

The domestic currency opened marginally up at 63.67 and jumped 6 paise to a fresh five-month high of 63.62 at the interbank foreign exchange market on dollar selling by exporters.

However, the rupee lost steam soon and retreated to a low of 63.70 at 10:20 hrs, down by 2 paise compared to previous close of 63.68 a dollar.

10:10 am Buyback: Share price of Lovable Lingerie added 3 percent intraday on the back of buyback offer.

The company is going to buyback up to 20,00,000 fully paid up equity shares of the company of face value of Rs 10 each at a price of Rs 250 per share from all the eligible shareholders holding equity shares on the record date i.e. December 8, 2017.

The buyback offer will be open on January 8 & will close on January 19, 2018.

10:04 am Buzzing: Angel Broking has initiated coverage with Buy rating on Capital First, the non-banking finance company and set a target price at Rs 850, implying a 22.4 percent potential upside from Monday's closing price.

The stock rallied nearly 2 percent in early trade but came off early highs due to volatility in the market.

The stock is poised for re-rating with improving return ratios, it said.

The research house further said change in ownership & management brought new life to company.

Angel Broking feels the favorable loan mix with expansion in net interest margin will drive earnings. It expect AUM/earnings to grow at CAGR of 23/32 percent over FY17-20.

9:55 am Market Check: Benchmark indices erased opening gains to trade flat, with the Nifty trading below 10,450 level.

The 30-share BSE Sensex was down 25.76 points to 33,786.99 and the 50-share NSE Nifty fell 3.70 points to 10,431.80.

The broader markets also wiped out gains. About 1,226 shares declined against 871 advancing shares on the BSE.

9:45 am Infosys in focus: Salil S Parekh takes over as the Chief Executive Officer (CEO) and Managing Director (MD) of Infosys today. Besides improving profitability, Parekh will face challenges such as ensuring no senior-level executive exits the firm.

Parekh, who was one of Capgemini's five deputy CEOs, has experience in the cloud computing business, ability to handle large acquisitions and a strong grip on technology and sales.

On December 2, 2017, Infosys had announced that its Board of Directors has appointed Salil S Parekh as CEO and MD of the company effective January 2, 2018.

9:35 am Auto sales: Bajaj Auto's total sales in December registered a healthy 30 percent growth, driven by exports and strong three-wheeler sales.

Total sales increased to 2.92 lakh units in last month of passing year, from 2.25 lakh units sold in year-ago.

Total domestic sales rose 25 percent year-on-year to 1.49 lakh units while exports shot up 35 percent to 1.43 lakh units in December.

Bajaj Auto said 3-wheeler sales grew by 187 percent to 63,785 units compared with 22,217 units sold in same month last year.

Motorcycle sales during the month increased 13 percent to 2.29 lakh units, from 2.03 lakh units in December 2016.

9:30 am Buzzing: Shares of Thermax has touched a 52-week high of Rs 1,270, gaining more than 5 percent in the early trade as it has won order worth Rs 327 crore.

The Thermax Group has concluded Rs 327 crore order from a public sector company based in Western India for its upcoming chemical plant, company said in press release.

The project is for a BTG (boiler turbine generator) package on engineering, procurement and construction (EPC) basis for their captive co-generation power plant of 2X65 MW capacity, it added.

The scope of the supply includes design, engineering, manufacturing, construction and commissioning of the solid fuel based BTG package consisting of 2 CFBC boilers, steam turbines and generators.

The company also would be supplying emission control equipment and other auxiliaries for the BTG package.

The project is to be completed in 24 months.

9:21 am USFDA Approval: Dr Reddy's Laboratories has received approval from the US Food and Drug Administration for Guaifenesin; Pseudoephedrine hydrochloride tablets.

Guaifenesin is indicated to treat acute respiratory tract infection.

9:15 am Market Check: Equity benchmarks rebounded in opening on Tuesday, with the Sensex rising more than 100 points, backed by pharma, metals and technology stocks.

The 30-share BSE Sensex was up 147.65 points at 33,960.40 and the 50-share NSE Nifty gained 55.60 points at 10,491.10. About 1,057 shares advanced against 270 declining shares on the BSE.

Mahindra & Mahindra, Dr Reddy's Labs, Cipla, Sun Pharma, GAIL, Tata Steel, Coal India, TCS, HCL Technologies and Infosys were early gainers.

SBI and Eicher Motors were early losers.

Nifty Midcap index gained 120 points on strong market breadth.

Castex Technologies, Unitech, Alok Industries, DB Realty, Thermax, TVS Motors, EID Parry, Bajaj Hindusthan and Reliance Power rallied 2-10 percent.



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