Sensex end flat; Kingfisher up 10% on Mallya's assurance

24 Sep 2013

1

3:50 pm Market closing: The market closed on a flat note as Nifty ends just short of the 5900-levels. The Nifty ended at 5892.45, up 2.70 points or 0.05 percent. The Sensex closed up 19.25 points or 0.10 percent at 19920.21. About 1129 shares advanced, 1161 shares declined, and 162 shares were unchanged. Bajaj Auto, Tata Power, L&T, NTPC and HDFC are top gainers in the Sensex. On the losing side are Hindalco, Coal India, Jindal Steel, Bharti Airtel and Wipro. 3:40 pm FII view on rupee: Leif Eskesen of HSBC Global Research believes the Reserve bank of India will further rollback the remaining 75 bps marginal standing facility (MSF) within the next three months after cutting it to 9.5 percent from 10.25 percent, last week. He also expects the central bank to hike repo rate once more by 25 bps given the same time frame. Speaking to CNBC-TV18, Eskesen says that instead of RBI briefly rolling back the liquidity tightening measures, he would have been more inclined to continue with those measures unless there was confidence regarding the currency stabilisation. 3:25 pm Exclusive: Within days of the Tata Sons-Singapore Airlines joint venture for introducing a full service carrier being announced, Tiger Airways could be seeking alliance with SpiceJet. The airline is gearing up for funds to invest in SpiceJet, reports CNBC-TV18. After Jet Airways deal with Etihad and Tata's foray into aviation with Air Asia and Singapore Airlines, Spice Jet is next on the radar. The airline has reportedly been in talks with various investors for selling a minority stake in the company. "Tiger Airways is actively looking at investing in India and Spice Jet is an interesting target," said a source close to the development, who did not wish to be named.

The market remained volatile as investors paused aggressive selling seen in the last two sessions triggered by Raghuram Rajan's maiden credit policy. The Sensex is up 19.02 points or 0.10 percent at 19919.98, and the Nifty up 3.85 points or 0.07 percent at 5893.60. About 1035 shares have advanced, 1159 shares declined, and 148 shares are unchanged. Kingfisher Airlines shares are locked at 10 percent upper circuit after founder Vijay Mallya, in company's annual general meeting, says the airline company has submitted three revival plans to Directorate General of Civil Aviation (DGCA). "We have requested United Breweries Holdings' (UBHL) board for additional funds. The board has agreed to provide funds to Kingfisher. We will recover UBHL's investment of over Rs 3,400 crore in the airline company," Mallya said.

The market is lacklustre in trade, heading for a flat closing today after topsy-turvy sessions previously on Federal Reserve and Reserve Bank of India's moves. The Sensex is down 6.66 points at 19894.30, and the Nifty is down 4.50 points at 5885.25. NTPC says that the Government of India has paid Rs 536.30 crore to the company towards the settlement of claims recoverable in respect of expenditure incurred on Loharinag-pala Hydro Power Project. The stock rose more than 1 percent. Kingfisher Airlines shares are locked at 10 percent upper circuit after founder Vijay Mallya, in company's annual general meeting, says the airline company has submitted three revival plans to Directorate General of Civil Aviation (DGCA). "We have requested United Breweries Holdings' (UBHL) board for additional funds. The board has agreed to provide funds to Kingfisher. We will recover UBHL's investment of over Rs 3,400 crore in the airline company," Mallya said.

Metals, FMCG and technology stocks are under pressure in afternoon trade. Technology majors TCS and Infosys fell 0.9 percent and 0.24 percent, respectively while their rival Wipro declined 1.8 percent. Among metals stocks, Hindalco Industries , Jindal Steel , Tata Steel and Coal India lost 1-3 percent. In case of Coal India, Global activist group 'Greenpeace India' released its report on Monday accusing the company of misleading its investors by understating its extractable coal reserves by 16 percent at the time of its 2010 listing which was a violation of Indian stock exchange rules. The group has now reportedly filed a complaint with Sebi.

Hindustan Zinc gained 1.6 percent after Department of Economic Affairs secretary Arvind Mayaram says that the decks have been cleared for the Hindustan Zinc and Balco stake sale and now it's up to the mines ministry to take a final call. The finance ministry expects to rake in Rs 25000 crore from this stake sale. Anil Agarwal-promoted Sterlite Industries, which was merged with Sesa Goa last month, holds 64.92 percent stake in Hindustan Zinc and the rest of the stake is with the Government of India. Agarwal had already offered around Rs 17,000 crore for 29.54 percent stake to government. In the beginning of September, there were rumours that he has increased his offer by 10 percent.

Tigerair is in talks with PE players to garner funds in order to bid for SpiceJet, reports CNBC-TV18 quoting sources. It is learnt that the airline is in talks to buy minority stake in SpiceJet and its bid may be backed by Oman Investment Fund. The stock gained 2 percent amid high volumes. MTNL shares are locked at 10 percent upper circuit. According to agency sources, BSNL and MTNL will sign a pact for offering pan-India mobile services which will enable the two companies to utilise each others' network.

02:08pm The market is trading in tight range in afternoon trade Tuesday ahead of September series expiry on Thursday. Equity benchmarks are heading for a strong close in this series with the Nifty rising nearly 9 percent. The Sensex is up 94.61 points or 0.48 percent at 19995.57, and the Nifty is up 27.60 points at 5917.35. Siddharth Bhamre of Angel Broking is bullish on the market and expects significant upside from current levels. He advises investors to go long. "FIIs have been net buyers of more than 7,000 crore in index futures since beginning of this expiry with rise in open interest; they are not shorting this market. At the same time if you look at cash market buy figures, more than 11,000 crore, rollovers are high. Look at the premium for next month's futures; 71 points premium; if you have so much negativity in the market then why premium is so much. So, I believe FIIs are discouraging others to form long position at this point of time," Bhamre explained. Shares of HDFC and Bajaj Auto rallied 2.7 percent each followed by L&T, BHEL and Tata Power with 2-2.5 percent gains.

2:00 pm Spectrum news: The Department of Telecom (DoT) is likely to conduct the third round of spectrum auction by January and expects to garner a minimum revenue of about Rs 11,000 crore this financial year, reports PTI. The government has set a total revenue target of Rs 40,874.5 crore this financial year from spectrum, including auction amount, one-time spectrum charge and annual regular licence fee.

1:45 pm Update on FT crisis: As the National Stock Exchange Limited (NSEL) is all set to default for the sixth consecutive time, the focus is also on the MCX (Multi Commodity Exchange). The government has empowered the Forward Markets Commission (FMC) to take a call on the 'fit and proper' status of the NSEL. The FMC is likely to issue showcause notice to Financial Technologies , three directors of MCX- Jignesh Shah, Joseph Massey and Shreekant Javalgekar this week. The showcause notice will seek an explanation as to why the "fit & proper" status of promoters shouldn't be revoked. They are likely to be given 1-2 weeks to respond to the notice and justify any linkages between Indian Bullion Market Association (IBMA), NSEL and MCX. 1:30 pm Banking view: Money has got cheaper in terms of incremental deposits though the market is still adjusting to the new rates that the Reserve Bank (RBI) has set, says Rajat Monga, CFO, Yes Bank . He says the industry is expecting a further 75 bps falls in marginal standing facility (MSF) rates by RBI's next policy meet.

Until then the banking industry will put base rate revision on hold. "Had RBI not taken this reduction of the MSF rate, base rate increase in industry would have been in order. Possibly the banks that have not raised base rates might still be looking to rework their numbers and we might see some base rate increase," he said in an interview to CNBC-TV18. 1:15 pm Buzzer: Shares of Coal India were down 2.5 percent in afternoon trade. Global activist group 'Greenpeace India' released its report  on Monday accusing the state-run company of misleading its investors by understating its extractable coal reserves by 16 percent at the time of its 2010 listing which was a violation of Indian Stock Exchange rules. The activist group has now reportedly filed a complaint with market regulator Sebi against Coal India. "CIL says its extractable reserves stand at 21.7 billion tonne whereas its own research subsidiary CMPDIL pegs it at 18.2 billion tonne, which is over 16 per cent lower," Greenpeace's Ashish Fernandes said.

Investors look directionless in the expiry week as trading is extremely volatile today. The Sensex is up 99.77 points or 0.50 percent at 20000.73 and the Nifty is 5916.65, up 26.90 points or 0.46 percent.  About 969 shares have advanced, 988 shares declined, and 158 shares are unchanged. Amid volatlity, capital goods and auto stocks are lendin support to the indices. BHEL , HDFC , Tata Power , M&M and L&T are the top gainers in the Sensex. Meanwhile, technology, metals and realty stocks are reeling under selling pressure. Hindalco , Bharti Airtel , Wipro , Coal India and Jindal Steel ate top losers in the Sensex. The rupee recouped some losses on the back of dollar sales by corporates and foreign banks for their clients but dollar purchases by importers weighing on the rupee. Bond prices are marginally higher as the government stuck to its market borrowing target.

The market is very volatile in trade today, but experts feel over the long term, the market will remain strong. Despite volatility in the market post the credit policy, Abhay Laijawala, MD and Hd-Research, Deutsche Equities remains optimistic on the Indian market and gives the Sensex target of 21,000 for 2013. In an interview to CNBC-TV18 Laijawala says market will see lot of volatility but as far as India is concerned, investors should focus primarily on export and rural recovery plays. The Sensex is up 97.05 points at 19998.01, and the Nifty is up 28.95 points at 5918.70.

Telecom secretary says he expects next spectrum auction to take place in January . The government has estimated Rs 11,000 crore from spectrum auction in FY14. In case of National Spot Exchange, Forward Markets Commission (FMC) will take a call on directors' and promoters' fit & proper status, reports CNBC-TV18 quoting sources. It is learnt that FMC is likely to issue show cause notice (SCN) to Financial Technologies (down 3 percent) and three MCX directors soon. Also Read - Short-term rates to fall more, banks will hold base rate hikes: Yes Bank 12:30pm Gainers Tata Power and BHEL are top gainers in the Sensex, surging more than 2 percent in noon trade. Major bluechips like HDFC and Tata Motors gained 0.8-1.3 percent. L&T gained about 1.5 percent after its subsidiary IDPL met a few analysts on Monday and clarified investor concerns on recently commissioned and under construction projects. IDPL says that sans parent support, the equity gap is to be bridged via IDPL or dhamra port stake sales, road receivables securitisation and investor funding for the Hyderabad metro rail project. MTNL shares are locked at 10 percent upper circuit. The stock rallied 50 percent in September itself. According to agency sources, BSNL and MTNL will sign a pact for offering pan-India mobile services which will enable the two companies to utilise each others' network.

Foreign institutional investors (FIIs) have been net buyers in September so far. They have net bought Rs 12,300 crore worth of equity shares in cash segment, but sold Rs 1,250 crore in debt markets. FIIs have net purchased Rs 6,050 crore contracts in F&O. However, domestic institutional investors have net sold Rs 7,050 crore worth of shares in cash segment.

12:00pm It is a rangebound trade for the market on Tuesday after topsy-turvy moves driven by Federal Reserve and Reserve Bank of India from last week. The volatility is also attributed to expiry on Thursday. The Sensex is up 19.76 points at 19920.72, and the Nifty is up 8.55 points at 5898.30. Even the broader markets are flat. BlackRidge Capital Advisors expects the volatility in the market to increase due to domestic and global factors. Arindam Ghosh, its MD and CEO says that policy uncertainty has been spooking the markets. Pressure on the currency will also continue in the long-term, he says.

He advises investors to enter the market with a 2-3 year horizon. Going forward, flows into the emerging markets (EMs) will be clearly on the basis of risk-on and risk given by news flows, he says. In such times, it is better to invest in quality stocks than quantity, he told CNBC-TV18. Technology and banks are under pressure; Infosys and TCS lost 0.3 percent on profit booking while State Bank of India and HDFC Bank fell 1 percent and 0.35 percent, respectively. Index heavyweight ITC is down 0.4 percent. Bharti Airtel and Hindalco Industries are top losers, falling 1.5-2 percent.

11:55 am FII view: Abhay Laijawala, MD and Head-Research, Deutsche Equities is optimistic on the Indian market and sees Sensex touching 21,000 in 2013. In an interview to CNBC-TV18 Laijawala says market will see lot of volatility but as far as India is concerned, investors should focus primarily on export and rural recovery plays. "Investors must start focusing on themes. So, any sector that is highly exposed to either the global macro situation or the domestic macro situation will see considerable volatility but those sectors where you see a relatively lower risk or a relatively lower sensitivity to global or domestic macro may probably do far better," he said. Meanwhile, Laijawala believes the worst of currency crisis is behind us.

11:45 am Buzzer: Shares of Coal India were down 2.5 percent in morning trade on Tuesday. Global activist group 'Greenpeace India' released its report  on Monday accusing the state-run company of misleading its investors by understating its extractable coal reserves by 16 percent at the time of its 2010 listing which was a violation of Indian Stock Exchange rules. The activist group has now reportedly filed a complaint with market regulator Sebi against Coal India. "CIL says its extractable reserves stand at 21.7 billion tonne whereas its own research subsidiary CMPDIL pegs it at 18.2 billion tonne, which is over 16 per cent lower," Greenpeace's Ashish Fernandes said.

11.31 am Market check: The Sensex is up 115.31 points or 0.58 percent at 20016.27, and the Nifty up 38.00 points or 0.65 percent at 5927.75. About 969 shares have advanced, 742 shares declined, and 150 shares are unchanged. BHEL is up over 3 percent while Tata Power , GAIL , L&T and Tata Motors are lead gaienrs in the Sensex, Wipro , Jindal Steel , Sesa Goa and SBI are major losers in the Sensex. 11:15 am  Buzzer: Shares of Mahanagar Telephone Nigam ( MTNL ) are locked at 10 percent upper circuit at Rs 15.32 on Tuesday. Reports suggest that BSNL and MTNL are likely to sign pact for offering pan-india mobile services which will enable the two companies to utilise each others' network. The stock rallied 50 percent in September so far. According to sources, the two telecom PSUs are not able to provide services throughout the country "on competitive basis" due to geographical restrictions as per licence conditions, while their privately-run rivals are providing pan-India services.

The market is volatile ahead of the September series expiry. The Sensex is up 65.00 points or 0.33 percent at 19965.96, and the Nifty up 24.10 points or 0.41 percent at 5913.85. About 863 shares have advanced, 660 shares declined, and 115 shares are unchanged. Capital goods and autos are supporting the market. Stock specifically, BHEL, Tata Power, GAIL, Maruti Suzuki and L&T are top gainers in the Sensex. On the losing side are Jindal Steel, Sun Pharma , Sesa Goa, SBI and Wipro.

Asian markets are trading lower owing to a weak close in the US markets. Commodities saw gold still hovering a little above USD 1300/ounce while Brent crude was within its recent range trading at USD108 per barrel. Currencies saw the euro marginally lower and emerging markets currencies such as the Indonesian rupiah were weaker vs the dollar. Back home, the rupee is marginally lower in-line with emerging market peers. Government bonds have softened after Rs 4000 cr of bonds were devolved yesterday.

The market is volatile ahead of September series expiry on Thursday. Auto, FMCG, capital goods, power and oil & gas stocks are supporting the market while SBI , HDFC Bank and Bharti Airtel are under pressure. The Sensex is up 73.65 points at 19974.61, and the Nifty is up 27.40 points at 5917.15. Major bluechips like Reliance Industries , ICICI Bank , HDFC, Hindustan Unilever and ONGC gained nearly 1 percent while State Bank of India , HDFC Bank and Sun Pharma fell 0.6-1.3 percent.

Shares of Mahanagar Telephone Nigam ( MTNL ) are locked at 10 percent upper circuit at Rs 15.32 on Tuesday after reports suggest that to state-run companies BSNL and MTNL are likely to sign pact for offering pan-india mobile services which will enable the two companies to utilise each others' network.

There were pending buy orders of 2,97,775 shares, with no sellers available on the Bombay Stock Exchange. The stock rallied 50 percent in September so far. According to PTI sources, the two telecom PSUs are not able to provide services throughout the country "on competitive basis" due to geographical restrictions as per licence conditions, while their privately-run rivals are providing pan-India services.

PSU banking stocks continue to bleed, with many frontline banks now down 10-15 percent in three trading sessions since Friday. In a further blow to the sector after rate hike woes, rating agency Moody's downgraded SBI's unsecured debt and rupee deposits to Baa3 from Baa2 and cut outlook on financial strength rating to negative. SBI is the top loser on the Sensex, down 1.5 percent. Meanwhile, Ffitch downgraded Indian Bank's long term foreign currency debt. It also downgraded PNB and Bank of Baroda by one notch.

10:00am The market bounced back in morning trade Tuesday after a 746 points fall in previous two sessions on rate hike concerns. The recovery is largely supported by short covering in most beaten down stocks like auto, capital goods and oil & gas stocks. The Sensex is up 132.63 points at 20033.59, and the Nifty is up 41.35 points at 5931.10.

Two shares advanced for every share declining on the Bombay Stock Exchange. Rakesh Arora of Macquarie feels the global liquidity will remain strong and will support the market. "This may be a good time to churn portfolio and buy stocks showing further earnings upgrades potential, such as Idea Cellular , Reliance Industries, Sun Pharma, HCL Technologies and TCS ," he adds. Larsen & Toubro, Tata Motors and Maruti Suzuki are biggest gainers, rising more than 2 percent.

9.53 am Market levels: The Sensex is up 53.85 points or 0.27 percent at 19954.81, and the Nifty up 19.35 points or 0.33 percent at 5909.10. About 669 shares have advanced, 349 shares declined, and 61 shares are unchanged. Capital goods and realty stocks are seeing buying interest while metals pack are in the red. L&T, Maruti Suzuki, Tata Motors and ONGC are lead gainers. 9:45 am FII view: BlackRidge Capital Advisors expects the volatility in the market to increase due to domestic and global factors. Arindam Ghosh, its MD and CEO says that policy uncertainty has been spooking the markets.

Pressure on the currency will also continue in the long-term, he says. He advises investors to enter the market with a 2-3 year horizon. Going forward, flows into the emerging markets (EMs) will be clearly on the basis of risk-on and risk given by news flows, he says. In such times, it is better to invest in quality stocks than quantity, he told CNBC-TV18. Information Technology, pharmaceuticals, and energy stocks are his favourites now. In the banking sector, he recommends staying away from PSUs. Yes Bank is his preferred pick in the pack. 9:30 am Management speaks: Despite being downgraded by global ratings agency Moody's, Arundathi Bhattacharya, managing director, State Bank of India , doesn't expect any impact on the domestic front .

Though external fund raising costs may rise, she says. However, the bank is not planning any such fund raising at the moment, she adds. According to her, the concerns on capital are overdone. Also Read: Moody's cuts State Bank of India's debt rating to 'Baa3' On Moody's raising a question mark on the bank's asset quality, Bhattacharya says if the economy turns around then asset quality could improve almost three months from the turnaround, if not then it may well go into FY15. Global rating agency Moody's downgraded the senior unsecured debt and local currency deposit rating of country's largest bank State Bank of India ( SBI ) by a notch to 'Baa3' from 'Baa2', citing asset quality and recapitalisation concerns.

The market has opened a flat note after the aggressive selling in the last two sessions. The Sensex is down 33.46 points or 0.17 percent at 19867.50, and the Nifty down 10.70 points or 0.18 percent at 5879.05. About 291 shares have advanced, 238 shares declined, and 40 shares are unchanged. ONGC, TCS , Wipro , Tata Motors and Bajaj Auto are top gainers in the Sensex. On the top losers side are Jindal Steel , SBi, Coal India , Sun Pharma and HDFC Bank . The government will borrow Rs 2.35 lakh crores through the second half of the year, but says this will not push fiscal deficit beyond the targeted 4.8 percent -- bond prices fall as traders make space for fresh bond auctions. Yields surged 25 basis points to cross 8.8 percent. Indian rupee fell 19 paise in early trade Tuesday to 62.79 per dollar as against previous day's closing of 62.60 per dollar.

Ashutosh Raina of HDFC Bank says that the rupee has been trading in a very narrow range with a weakish bias. "Profit booking in equity markets, clubbed with demand from importers has put mild pressure on the currency," he adds. According to Raina, the rupee is expected to trade in a range of 60-64/USD for the week. "The range for the day is seen between 62.50-63.30/USD." Globally, US markets closed lower for the third straight session on Monday amidst fears of tapering and ongoing worries over the debt ceiling.

Europe too is dragged lower by uncertainty over the fate of a coalition government in Germany. Asian markets fell after steep losses on Wall Street overnight. Nikkei saw cuts of almost a percent, which resumed trade after holiday extended weekend. In commodities, oil prices dropped by more than 1 dollar per barrel while gold edged higher following three days of losses.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more