Sensex up 125; Ranbaxy soars 28%, Sun Pharma & SBI dip 3%

08 Aug 2013

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The market gained strength on Thursday after a two-day fall, but was down 2 percent for the truncated week on growth concerns after the rupee touched a record low of 61.81 against the dollar.

The Sensex rose 124.46 points to close at 18789.34, and the Nifty gained 46.55 points to finish at 5565.65, aided by short covering in rate sensitives and metals.

The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 1.3 percent each. Advancing shares outnumbered declining ones by 1371 to 859 on the Bombay Stock Exchange.

Technical experts believe the market may go up further in near term, but the rupee volatility may decide the real direction for the market in medium to short term.

Shardul Kulkarni, senior technical analyst of Angel Broking expects the market should move from the current levels to around 5,700-5,750, which is a relief rally. He feels the bounce can last for seven-eight trading sessions, he adds.

Meanwhile, Ridham Desai of Morgan Stanley has cut Sensex year-end target to 19,720.

''The RBI's dovish commentary last week amidst possibly the severest liquidity tightening it has initiated since 1998 has made markets even more vulnerable to global cues, especially the QE taper in the US. We see a 35 percent probability of a bear case versus 20 percent earlier,'' he reasoned.

Indian rupee also recovered today, rising above the 61 level on hopes that the more measures may be announced over the weekend. Department of Economic Affairs secretary says that the government will issue more measures on rupee by end of the current week.

Ranbaxy Labs was the biggest gainer with a 28 percent rise after revenues and adjusted margins beat estimates in second quarter.

03:25pm Strong Buzzer of the day
Ranbaxy Labs shares soared 30 percent to Rs 365 amid hefty volumes on the Bombay Stock Exchange. Analysts feel the stock had been hammered quite badly in previous sessions on FDA woes, due to which it was undervalued compared to peers. Hence, it showed strong upmove today, analysts add.

03:15pm The market gained more strength with the Nifty rising nearly one percent on recovery in rupee. HDFC group, metals, private banks, realty and healthcare stocks are on buyers' radar.

The BSE Sensex is up 147.97 points at 18812.85, and the NSE Nifty is up 52.50 points at 5571.60.

Indian rupee recovered smartly, climbing above the 61 level. It gained 37 paise to 60.93 against the US dollar. Department of Economic Affairs secretary says that the government will issue more measures on rupee by end of the current week. Finance minister P Chidambaram will talk more on rupee measures, he adds.

State Bank of India dropped 2.5 percent and Sun Pharma lost 3.5 percent ahead of first quarter earnings. Former will announce earnings on Monday and latter will declare tomorrow.

02:45pm Earnings
IRB Infrastructure's consolidated net profit fell higher-than-expected 5 percent year-on-year to Rs 134.6 crore in April-June quarter, but income from operations rose over 5 percent Y-o-Y to Rs 1,032.6 crore during the quarter on higher construction revenues, which was above analysts' forecast. The stock gained 2 percent.

Akzo Nobel shares fell 2 percent after its first quarter net profit dropped to Rs 35 crore from Rs 61 crore year-on-year.

Baba Kalyani, CMD of Bharat Forge expects exports to continue growing, but he does not expect significant pick up in domestic volumes.

Jet Airways shares declined 0.6 percent. The company posted a loss of Rs 355 crore during April-June quarter as against profit of Rs 24.7 crore while total income declined to Rs 4,005 crore from Rs 4,587 crore Y-o-Y.

Currency
Indian rupee gained 37 paise to go above 61 level at 60.93 against the US dollar.

02:22pm Equity benchmarks continued to trade higher with the Nifty holding the 5550 level, helped by HDFC pack, metals and telecom stocks. However, State Bank of India , Reliance Industries , Sun Pharma , Dr Reddys Labs and Wipro are under pressure.

The BSE Sensex is up 128.45 points at 18793.33, and the NSE Nifty is up 50.70 points at 5569.80.

The market breadth remained in favour of advances on strong upmove in midcaps and smallcaps (both gained more than one percent). About 1237 shares advanced while 817 shares declined.

Tata Motors fell 0.6 percent after erasing 5 percent gains from day's high.

The government will divest 5 percent stake in Coal India via auction route. The process to appoint merchant bankers for the same has been started. The stock gained 2.6 percent.

Reliance Infrastructure shares rallied 3.5 percent as the company said it was prequalified for Rs 9,800 crore worth of NHAI projects.

Hindalco Industries topped the buying list, rising more than 5 percent while Cipla rebounded with nearly 5 percent gains.

At 1:50pm Buzzers
After reporting an extremely disappointing set of numbers in March quarter, all eyes will be on Jet Airways today as it will report earnings today. Estimates are very wide ranging - ICICI Direct expects a loss of Rs 898 crore in June quarter as against profit of Rs 24.70 crore and also expects an EBIT loss of Rs 764 crore.

Meanwhile Edelweiss expects an EBITDA growth of 1.5 percent to Rs 470.70 crore in case of Jet Airways. It also expects passenger traffic to decline 17 percent year-on-year due to a rise in competition amid slowdown. The domestic market share may decline 240 bps to 24.2 percent and the margins are estimated to also get impacted due to high operating costs led by rupee depreciation, says Edelweiss.

Sterlite Industries is up nearly  2 percent as the National Green Tribunal (NGT) allowed the company to operate Tuticorin plant. As per NGT order, the company has to follow 20 rules given by expert team and that team will submit report to TNPCB and NGT every 2 months.

Godrej Properties declined 2 percent after its rights issue is priced at Rs 325 apiece, a 30 percent discount to the current market price.

News reports suggest that Adani Ports is close to acquiring Dhamra Port, an equal joint venture between the Tatas and L&T, in a deal believed to be worth Rs 5000 crore. The stock gained 1.5 percent.

Tilaknagar Industries rallied 11 percent on a media report that the company is in talks with Suntory Holdings and Pernod Ricard to sell a 15-20 percent stake for around 600 crore.

Gujarat Gas surged 20 percent as the company's profits doubled to Rs 100 crore from Rs 52 crore in Q1 year-on-year.

The NSE Nifty picked up momentum amid volatility in afternoon trade & is now trading above 5550 led by strength in rate sensitives and commodity shares while the Midcap and Smallcap indices rose nearly a percent.

The BSE Sensex is up 86.64 points at 18751.52, and the NSE Nifty is up 32.60 points at 5551.70.

The Nifty won't break crucial support level of 5500 immediately on hopes that the central bank will protect the free falling rupee, says Ambareesh Baliga, Edelweiss Financial Services .

Infact the Nifty is likely to bounce back, but whether that will sustain remains doubtful, he told CNBC-TV18.

Adani Enterprises , Rural Electrification Corporation , BEML , BGR Energy, Fortis Healthcare , IRB Infrastructure, Jet Airways and Sobha Developers will announce its April-June quarter earnings today.

Ranbaxy Labs soared 14 percent after revenues and adjusted margins beat estimates.

Bharti Airtel shares gained nearly 3 percent after the top telecom operator will raise call rates on select Delhi post-paid plans on September 8, reports CNBC-TV18 quoting agencies.

Sterlite Industries rose 3 percent after National GreenTribunal allowed the company to operate its Tuticorin plant.

2:45pm Market Update
The BSE Sensex is up 99.07 points at 18763.95, and the NSE Nifty is up 35.15 points at 5554.25 while the Metal and Realty indices rallied 3 percent each.

Auto, Capital Goods and Bankex gained one percent each while Healthcare declined over one percent. Midcap and Smallcap indices too rose one percent each.

Stocks in News
Bharti Airtel shares gained more than one percent after the top telecom operator will raise call rates on select Delhi post-paid plans on September 8, reports CNBC-TV18 quoting agencies.

12:29pm Equity benchmarks are trading marginally higher in noon trade with the Nifty holding above 5500 led by strength in rate sensitives and metals stocks.

The BSE Sensex is up 58.33 points at 18723.21, and the NSE Nifty is up 25.10 points at 5544.20 while the broader markets gain 0.9 percent.

Meanwhile, Ridham Desai of Morgan Stanley cuts Sensex year-end target to 19,720.

"The RBI's dovish commentary last week amidst possibly the severest liquidity tightening it has initiated since 1998 has made markets even more vulnerable to global cues, especially the QE taper in the US. We see a 35 percent probability of a bear case versus 20 percent earlier," he explained.

Indian rupee appreciated by 22 paise to 61.08 against the US dollar.

Ranbaxy Labs shares surged 13 percent after April-June quarter revenues and adjusted margins beat estimates. Citi's target of Rs 650/share suggests a significant upside potential for the stock.

Metals are strong today; Sterlite Industries, Tata Steel and Hindalco Industries rose 3-4 percent.

Tilaknagar Industries , EIH , GMDC, Neyveli Lignite , Delta Corp , STC India and Bharat Forge jumped 8-12 percent.

11:45am The India rupee is higher in very thin volumes as some dealers still hope government may announce some import control measures over the long weekend. It appreciated by 18 paise to 61.11 against the US dollar.

The BSE Sensex is up 82.13 points at 18747.01, and the NSE Nifty is up 29.35 points at 5548.45.

Stocks in News
Deepak Fertilisers shares rallied 3 percent. Net profit of the company declined to Rs 42.7 crore in April-June quarter from Rs 45.5 crore Y-o-Y while net sales jumped to Rs 738.3 crore from Rs 631.2 crore during the same period.

JSW Steel hiked long product prices by average Rs 500-750 per tonne and upped flat product prices by Rs 1,000-1,250/tonne, reports CNBC-TV18 quoting agencies.

Boardroom
Zee Learn, after its earnings, says that the company witnessed improvement in enrollment during the quarter (Q1) and added over 192 new Kidzee centres.

Zee is confident of maintaining profits across FY14 and expects around 44 percent growth in profit in FY14. The stock surged nearly 4 percent.

11:27am The market remained directionless in late morning trade, but the broader markets are positive with the BSE Midcap and Smallcap indices gaining 0.6 percent and 0.9 percent, respectively.

The BSE Sensex is up 19.63 points at 18684.51, and the NSE Nifty is up 10.90 points at 5530.

Sun Pharma dropped over 3 percent post weakness in its Israeli subsidiary Taro's earnings. Taro's Q1 net sales were down 3.7 percent to USD 153.2 million while profits were down to USD 58.8 million from USD 62.9 million Y-o-Y. CLSA maintained its buy rating on the stock with a target price of Rs 630 per share.

ONGC shares lost 2 percent. CMD expressed disappointment at Q1 subsidy and says net realizations fell to USD 42 as against USD 48 per barrel.

Adani Ports rose 1.5 percent on reports that the company is close to acquiring Dhamra Port, an equal joint venture between the Tatas and L&T, in a deal believed to be valued at Rs 5000 crore.

Tilaknagar Industries surged 9 percent after consolidated net profit rose to Rs 17.3 crore from Rs 11 crore and net sales jumped to Rs 167 crore from Rs 153.4 crore year-on-year.

About 1052 shares advanced while 741 shares declined on the Bombay Stock Exchange.

10:40am Buzzers
Tata Motors gained nearly 2 percent post strong earnings from Jaguar Land Rover Wednesday. Macquarie maintained its outperform rating on the stock with a target price of Rs 380 and raised FY14 EPS by 9-11 percent.

Goldman Sachs reiterated its buy rating on the stock, but cut target price marginally to Rs 366 while CLSA reiterated a buy rating with a target price of Rs 380.

Ranbaxy Labs surged 8.6 percent post earnings. Citi maintained its buy rating on the stock with a target price of Rs 650, but mentioned that it is a high risk stock currently. Second quarter results were better-than-expected at the operating level, with more than 10 percent revenue growth (ex- exclusivities), better EBITDA margin at 7.4 percent (up 124 bps Q-o-Q) and strong Q-o-Q growth in US generics being the key encouraging signs. Citi maintained that there are enough signs that a turnaround is under way, albeit at a slower pace than we expected earlier.

10:15am The market is completely lacklustre in morning trade on lack of trigger globally and locally, but the midcaps and smallcaps outperformed benchmarks with 0.5 percent gains.

The BSE Sensex is down 28.47 points at 18636.41, and the NSE Nifty is down 2.35 points at 5516.75. Advancing shares outpaced declining ones by 858 to 491 on the Bombay Stock Exchange.

Bharat Forge shares rallied 8.5 percent on higher-than-expected earnings during April-June quarter. Net profit fell to Rs 90.6 crore from Rs 105.2 crore and revenue declined to Rs 791.6 crore from Rs 936.4 crore year-on-year. Analysts had expected it to report net profit of Rs 56 crore on revenues of Rs 690 crore.

Fortis Healthcare gained one percent. The board of directors today approved allotment of FCCBs worth USD 30 million.

9:45am Buzzers
Gujarat Gas shares rallied 13 percent after its April-June quarter's consolidated net profit doubled to Rs 100 crore from Rs 52 crore Y-o-Y.

Dhampur Sugar declined 2 percent after it reported Q1 consolidated net loss at Rs 20.4 crore as against profit of Rs 6.4 crore year-on-year.

MOIL rose 1.7 percent. Its first quarter net profit jumped to Rs 112 crore from Rs 99.4 crore on yearly basis.

The BSE Sensex is up 48.29 points at 18713.17, and the NSE Nifty is up 19.40 points at 5538.50. Advancing shares outnumbered declining ones by 708 to 328 on the BSE.

9:15am The market gained marginally higher in early trade amid volatility Thursday, tracking uptrend in major Asian markets. Indian rupee is also stuck at 61.21 against the dollar.

The BSE Sensex is up 22.52 points at 18687.40, and the NSE Nifty is up 7.65 points at 5526.75, but the broader markets outperformed benchmarks. BSE Midcap and Smallcap indices rose 0.5 percent each.

Among Asian markets, Shanghai, Hang Seng, Nikkei and Kospi gained 0.5-0.8 percent.

Back home, Tata Motors shares gained 2.5 percent on short covering as well as strong numbers from its UK subsidiary Jaguar Land Rover, but its domestic business remained weak.

Ranbaxy Labs jumped 4 percent on matching analysts' forecast in April-June quarter. It reported an 18 percent decline in revenues to Rs 2683 crore. The net loss stood in-line with estimates at Rs 524 crore and margins slipped to 7.4 percent.

Meanwhile, Sun Pharma shares tumbled 3.5 percent ahead of first quarter earnings on Friday. Taro's June quarter sales fell 3.7 percent on yearly basis to USD 153.2 million on one-time charge while profit grew by 6.5 percent.

Among midcaps, Essar Oil , Financial Technologies , Balrampur Chini and PFC gained 3-5 percent while Lanco Infratech, Dish TV and Opto Circuits declined 3-4 percent.

News reports suggest, Tilaknagar Industries is in talks with Suntory Holdings and Pernod Ricard to sell a 15-20% stake in the company to raise around Rs 600 crore. The stock rallied 8 percent.

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