Sensex zooms 511 points, Nifty above 6200; Bank Nifty up 4%
18 October 2013
3:50 pm Market closing: The market ended the week in high spirits. The Sensex is up 467.38 points or 2.29 percent at 20882.89, and the Nifty is up 143.50 points or 2.37 percent at 6189.35. About 1391 shares have advanced, 1074 shares declined, and 170 shares are unchanged.
3:40 pm Market this week: The market has ended on a high note. The Sensex ended up 1.6 percent while Nifty closed 1.5 percent higher. Both the Nifty and Sensex closed almost down at a 3-year high.
3:30 pm Buzzer: Shares of Bharti Airtel climbed around 3 percent intraday on its acquisition. The telecom major has acquired 100 percent stake in US-based Qualcomm's Wireless Business Services (WBSPL). In a statement, Airtel said that it has "completed the acquisition of 100 percent equity shares of Wireless Business Services Private Limited, which holds BWA Spectrum in the Indian telecom circles of Mumbai, Delhi, Haryana and Kerala". The stock closed at Rs 356.60, up Rs 7.90, or 2.27 percent on the BSE.
3:20 pm Boardroom: By exercising spending cuts, Info Edge has managed to improve margins to 17-18 percent year-on-year, says Hitesh Oberoi, chief executive officer and managing director. Info Edge runs famous recruitment website, Naukri.com.
Speaking to CNBC-TV18, Oberoi says the company is likely to do well if the country continues to grow positively. ''If the economy starts improving, if the market for jobs in real estate starts looking up, then our growth rate should improve from here on,'' he adds. Additionally, Oberoi is betting big on the company's real estate-related business (99acres.com) and expects it to do well in the time to come.
The market is on fire today boosted by banks, metals and infra stocks. The Sensex is up 511.31 points or 2.50 percent at 20926.82, and the Nifty up 154.55 points or 2.56 percent at 6200.40. About 1371 shares have advanced, 999 shares declined, and 142 shares are unchanged. Both Sesa Sterlite and Tata Steel are up 6 percent each, followed by ICICI Bank , L&T and HDFC Bank . Bajaj Auto is the only losing stock in the Sensex. JP Associates rallied 4 percent amid large volumes.
Manoj Gaur of Jaiprakash Associates says some announcement of asset sales are likely in the next few weeks. The company has been selling its assets, especially some power and cement businesses to reduce debt. "We are on course to reduce debt by Rs 14,000 crore," Gaur said in an interview with CNBC-TV18.
02:59pm Market on fire The broadbased rally continued in the market. The Sensex is up 501.68 points or 2.46 percent at 20917.19, and the Nifty is up 150 points or 2.48 percent at 6195.85. The Nifty touched the 6200-mark for the first time since May 20. Financials are on fire today with the ICICI Bank rising 5 percent followed by HDFC Bank , HDFC and State Bank of India with 3-4 percent gains. Index heavyweight Reliance Industries cross the Rs 900-mark, up 3 percent to Rs 905 level.
02:55pm Results Impact Cigarette manufacturer VST Industries' net profit rose 17.75 percent year-on-year to Rs 32.5 crore and net sales grew 19.5 percent on yearly basis to Rs 209.1 crore in the quarter gone by. The stock gained just 0.5 percent.
02:45pm Market gains further The market is on fire in last hour of trade with the Sensex gaining 466.19 points or 2.28 percent at 20881.70, and the Nifty rising 140.55 points or 2.32 percent at 6186.40. ICICI Bank gained nearly 5 percent while Axis Bank rose over 5 percent. JP Associates rallied 4 percent amid large volumes.
Manoj Gaur of Jaiprakash Associates says some announcement on asset sales is likely in the next few weeks. The company has been selling its assets, especially some power and cement businesses to reduce debt. "We are on course to reduce debt by Rs 14,000 crore," Gaur said in an interview with CNBC-TV18. The company in September sold its Gujarat cement plants to UltraTech Cement for Rs 3,800 crore.
02:35pm Earnings Impact Info Edge declined 0.5 percent. Net profit of the company rose 13 percent sequentially to Rs 33.2 crore during July-September quarter and revenue increased to Rs 123.6 crore in second quarter from Rs 120.7 crore in first quarter. Akzo Nobel's second quarter net profit declined to Rs 34 crore from Rs 45 crore in a year ago period while net sales increased to Rs 565 crore from Rs 511 crore Y-o-Y. The stock gained 0.2 percent.
02:22pm The market remained in bull grip on broadbased buying with both the equity benchmarks climbing over 2 percent. Larsen & Toubro rallied more than 5 percent ahead of its September quarter earnings. Margins of L&T are expected to contract by 100 basis points due to pricing pressure, shift in sales mix to middle east and forex loss in treasury.
Net profit is seen falling by about 22 percent year-on-year and revenue growth is expected to remain sluggish at sub 10 percent. The Sensex is up 430.73 points or 2.11 percent at 20846.24, and the Nifty is up 130.30 points or 2.16 percent at 6176.15. Sesa Sterlite and Tata Steel continued to hold their top position in the buying list, rising nearly 8 percent and 6 percent, respectively. BSE Metal Index rallied 3.6 percent.
UBS initiated coverage on Sesa Sterlite with a buy rating and a target of Rs 220 per share. The brokerage house expects strong volume growth in the power segment coupled with additional aluminum capacity coming on-stream and potential freeing of the existing mining ban in Goa. Banks are the leaders among largecaps with the BSE Bankex surging 3.5 percent.
Country's largest private sector lenders ICICI Bank and HDFC Bank spiked 3-4 percent followed by State Bank of India with 2.5 percent gains. Housing finance company HDFC rallied 3 percent and petrochemical major Reliance Industries rose 2.6 percent. However, Bajaj Auto is the only loser in the Sensex, falling marginally while there is no loser in the Nifty 50.
1:50 pm Interview: Girish Agarwaal, non-ED, DB Corp believes the company is likely to maintain a 17 percent growth rate going ahead. The print media company's consolidated net profit grew 25.4 percent year-on-year to Rs 60.2 crore, matching analysts' forecast for the second quarter (July-September) . Speaking to CNBC-TV18, Agarwaal says the margins of the company were up 36 percent excluding the forex gain and loss. He believes the company will continue growing through its expansion in the form of new launches. DB Corp is planning to launch Bihar edition from Patna by the first quarter of next year.
1:40 pm FII view: Arjuna Mahendran, chief investment officer, Emirates NBD Wealth Management expects all emerging markets (EMs) including India to trade in a range for the next six-12 months on the back of domestic and global worries.
Speaking to CNBC-TV18, he added that given the way markets have reacted to US debt ceiling issue, indicates that market participants are becoming accustomed to these macroeconomic imbalances and at the end of the day it is the liquidity that is pushing markets ahead. Further, he pointed that buying the markets on dips is the strategy that most people have been following this year.
1:30 pm Buzzing: Shares of Sesa Sterlite rallied 8 percent in after UBS initiated coverage on the stock with a buy rating and set a target price of Rs 220 per share. UBS expects strong volume growth in the power segment coupled with additional aluminum capacity coming on-stream and potential freeing of the existing mining ban in Goa. The firm says Sesa's operating profit would grow at a compounded annual growth rate of 11 percent over the 2013-2015 fiscal years, led by strong volume growth in its power, aluminium and iron ore businesses.
The market continues to surge ahead of the weekend, boosted by banks, metals and capital goods. The Sensex is up 363.23 points or 1.78 percent at 20778.74, and the Nifty is up 108.65 points or 1.80 percent at 6154.50. About 1321 shares have advanced, 930 shares declined, and 160 shares are unchanged.
Rupee reverses gains and weakens on reports that the RBI may consider closing the swap window for PSU oil companies. However, positive risk appetite and broad weakness in dollar restricts further fall. Bond prices are also off highs as rupee weakens against the dollar. RBI's Rs 15000 crore gilts auction result is awaited.
12:50pm Stocks In News NCC saw follow-up buying today post a disclosure on the exchanges that big bull Rakesh Jhunjhunwala has bought 50 lakh shares of the company in the past quarter. The stock gained 2.5 percent today and 24 percent in past 15 days. MCX rallied 4 percent after another rejig in the MCX board.
Forward Markets Commission has appointed 2 more independent directors on the board of the company. FMC also indicated that it has appointed 6 independent directors so far and will appoint 1 more. SpiceJet jumped 5 percent on newspaper reports that Qatar Airways is in talks with the airline for a possible acquisition of 24 percent stake. Raymond shares soared 2.5 percent on a media report that the company is planning to offload about 24 percent stake in its engineering subsidiary -- JK Files.
12:31pm Gainers & Losers Sesa Sterlite is the top gainer in the Sensex, rising more than 7 percent followed by Tata Steel with 5 percent gains. Top private sector lenders ICICI Bank and HDFC Bank rallied 2.5 percent each while their rival State Bank of India jumped over 2 percent. Petrochemical major Reliance Industries and housing finance company HDFC gained over 2 percent too. However, shares of BHEL , Cipla and Bajaj Auto are the only losers among largecaps, falling between 0.3-0.5 percent.
12:21pm The market maintained its strong momentum in noon trade with the equity benchmarks rallying 1.6 percent. Reliance Industries, HDFC Bank and ICICI Bank are the leaders among heavyweights while TCS bounced back with 0.6 percent gains. The Sensex is up 319.33 points at 20734.84 - highest level since November 2010, and the is Nifty up 95.85 points at 6141.70, but the broader markets underperformed benchmarks with the BSE Midcap and Smallcap indices gaining between 0.6-0.8 percent. L&T gained nearly a percent ahead of its second quarter earnings today.
According to a CNBC-TV18 poll, margin is expected to contract by 100 basis points due to pricing pressure, shift in sales mix to middle east and forex loss in treasury. Net profit of the engineering and construction major is seen falling by about 22 percent and revenue growth is expected to remain sluggish at sub 10 percent. Sesa Sterlite surged over 4 percent after UBS initiated coverage with a buy rating and target of Rs 220 per share.
The brokerage house expects strong volume growth in the power segment coupled with additional aluminum capacity coming on-stream and potential freeing of the existing mining ban in Goa. On the global front, Asian markets are trading higher as China's third quarter GDP growth came in higher at 7.8 percent in Q2 versus 7.5 percent in a year ago period. However, investors remain skeptical about the sustainability of the recovery.
11:55 am Buzzer: MCX hits upper circuit after another rejig in the MCX boar. The FMC has appointed two more independent directors on the board of the company. The FMC also indicated that they have appointed six independent directors so far and will appoint one more. The stock has rallied 40 percent in this month so far.
11:45 am Market outlook: Deven Choksey, MD, KR Choksey Shares and Securities feels that the Nifty is likely to be around 5,800-6,100 (300-point range) unless fundamental changes. "More importantly what we are seeing is larger amount of money coming in from the liquidity driven FIIs and that is where the market is taking support.
The market will remain in the trading range probably the sector shuffling would keep taking place in this kind of a market. Fundamentals haven't changed, fortunately in the first half of result season, we are seeing a good lot of numbers coming up. However, one is still skeptical about the second half of the result season in which one would like to see how bad or how negative surprises would impact the market on the downside," he said in an interview to CNBC-TV18.
11:35 am Rupee check: The rupee extended its gains to the highest in more than two months on Friday, breaching the psychological 61 per dollar mark, as broad losses in the greenback versus major currencies and gains in the domestic share markets aided, reports Reuters. The partially convertible rupee was at 60.94-95 per dollar at, after hitting 60.92, its strongest since August 18 and higher than its close of 61.23-24 on Thursday.
11:30 am Market check: BSE Sensex hits 3-year high. The Sensex is up 338.84 points or 1.66 percent at 20754.35, and the Nifty is up 103.60 points or 1.71% at 6149.45. About 1216 shares have advanced, 739 shares declined, and 130 shares are unchanged.
The market is maintaining the upmove supported by financial and defensive stocks. The Sensex is up 309.07 points or 1.51 percent at 20724.58, and the Nifty is up 96.15 points or 1.59 percent at 6142.00. About 1137 shares have advanced, 589 shares declined, and 102 shares are unchanged. Sesa Sterlite, Tata Steel , ICICI Bank , SBI and HDFC are the lead gainers in the Sensex. Among the losers are TCS and Bajaj Auto .
Ahead of the September quarter results, L&T is up around 1 percent. According to a CNBC-TV18 poll, analysts on an average expect its profit after tax to fall 21.8 percent year-on-year to Rs 890 crore. Net sales may rise 8.1 percent to Rs 14,266 crore in September quarter from Rs 13,195 crore in a year ago period. Revenue growth of the capital goods company has been declining sequentially since second quarter of last financial year.
Asian markets are trade mostly mixed today. China's third quarter GDP data was in focus rising to 7.8 percent vs 7.5 percent for the previous three months. Gold saw a big spurt overnight with a jump of 3 percent to USD 1321/oz. Brent was flat at USD 109 per barrel. Dollar traded near an 8-month low against most global currencies. The euro rose to 1.36 and yen was at a 1-week high.
10:55am Market Update The market extended its upmove with the Sensex gaining 295.92 points at 20711.43, and the Nifty rising 89.45 points at 6135.30. BSE Bankex rallied 2.6 percent and Metal Index gained 2 percent followed by Realty, Auto, Oil & Gas, Power and Healthcare indices with 1-1.6 percent gains. However, TCS and Bajaj Auto are only losers among frontliners.
Shares of SpiceJet are flying high on hopes of stake sale to a foreign carrier. The stock rallied around 6.5 percent intraday on Friday as media report indicates that Qatar Airways is in talks with SpiceJet for a possible acquisition of 24 percent stake in the airline. However, both airlines had denied talks about any possible stake sale earlier in the year.
The media report quotes sources saying that the talks were in preliminary stages and Qatar Airways may infuse USD 200 million in debt and equity in SpiceJet. However, the Kalanithi Maran-promoted, low-cost carrier has once again denied the development.
10:45am Metals, Pharma, Auto on buyers' radar Tata Steel and Sesa Sterlite topped the buying list among frontliners, surging more than 3 percent followed by Jindal Steel with 2 percent gains. In the pharma pack, Sun Pharma and Dr Reddys Labs gained 1-2 percent while in the auto space, Hero Motocorp , Maruti and M&M rallied nearly 2 percent. Deven Choksey, MD of KR Choksey Shares and Securities feels the market remains in the trading range of 5800-6100 levels.
According to him, 6,100 level acts like an electric current for the markets at higher levels. "Probably the sector shuffling would keep taking place in this kind of a market. Fundamentals haven't changed, fortunately in the first half of result season, we are seeing a good lot of numbers coming up. However, one is remaining skeptical about the second half of the result season in which one would like to see how bad or how negative surprises would impact the market on the downside," he explained.
10:35am Market Expert Samir Arora of Helios Capital remains bullish on Indian market. According to him, the market has not priced in BJP victory in elections 2014 yet. Index heavyweight Reliance Industries continued its upmove, adding 1.6 percent on top of a 1.5 percent gains in previous session. Commercial vehicle maker Tata Motors bounced back with 1.4 percent gains after losing 4 percent on Thursday on profit booking.
10:18am The market gained more strength in morning trade with the Sensex rising over 200 points, supported largely by financials. Inflow of foreign money is the main driver for Indian equities, which may continue in medium term, feel experts. They believe Fed tapering may not happen in 2013, so the flow of money may continue in emerging markets.
FIIs have bought more than Rs 7,600 crore worth of equity shares in October so far, in addition to Rs 12,632.90 crore worth of buying in September. The Sensex is up 253.75 points at 20669.26, and the Nifty is up 76.35 points at 6122.20.. More than three shares advanced for every share declining on the Bombay Stock Exchange.
ICICI Bank is the leader among largecaps, gaining nearly 3 percent followed by HDFC Bank with 2 percent gains and State Bank of India with 1.8 percent gains. Housing finance company HDFC rallied 1.7 percent. However, TCS remained under pressure, falling 0.4 percent in addition to 5 percent loss in previous session.
10:00 am Buzzer: SpiceJet is up 5 percent on the BSE. Newspaper reports indicate that Qatar Airways is in talks with SpiceJet for a possible acquisition of 24 percent stake in the airline. However, both airlines had denied talks about any possible stake sale earlier in the year.
9:50 am Exclusive interview: Samir Arora of Helios Capital is bullish on India and is expecting the positive trend to continue. Disagreeing that liquidity alone are driving markets, he said in an interview to CNBC-TV18, that return on equities will depend largely on election outcome. "Market has not priced in BJP victory yet," he adds.
As an investment strategy, he is still not buying infrastructure stocks. In the currency space, Arora does not see rupee strengthening much from current levels. "May see rupee trading in range of 59-60 per dollar," he feels.
9:45 am Market check: The Sensex is up 165.38 points at 20580.89, and the Nifty is up 48.10 points at 6093.95. About 763 shares have advanced, 308 shares declined, and 47 shares are unchanged. Banking stocks are making smart moves with ICICI Bank and HDFC twins gaining the most. Tata Power and Tata Motors are other gainers in the Sensex. TCS and Bajaj Auto are laggards in the Sensex.
9:30 Earnings poll: Larsen & Toubro (L&T), the engineering and construction major, will announce its second quarter (July-September) results today. According to a CNBC-TV18 poll, analysts on an average expect profit after tax to fall 21.8 percent year-on-year to Rs 890 crore. Net sales may rise 8.1 percent to Rs 14,266 crore in September quarter from Rs 13,195 crore in a year ago period. Revenue growth of the capital goods company has been declining sequentially since second quarter of last financial year. After losing around 4 percent in yesterday's trade, the stock is up 0.4 percent on Friday.
After a cut in Thursday's session, the market opened on a higher note. The Sensex is up 82.70 points at 20498.21, and the Nifty up 25.05 points at 6070.90. About 255 shares have advanced, 53 shares declined, and 16 shares are unchanged. Tata Steel , Wipro , Tata Motors, Sesa Sterlite and HDFC are gainers in the Sensex. Among the top losers are Hindalco , Bajaj Auto, NTPC , TCs and Coal India. The Indian rupee opened on flat note at 61.19 per dollar against 61.23 Thursday.
Pramit Brahmbhatt, CEO, Alpari India said, "Rupee should strengthen further tracking strong Asian peers and weak dollar in the overseas market." "However, a weak stock market and dollar demand by importers at these levels might add pressure. A breach of 61/USD will push rupee towards 60/USD levels.
The range for the day is seen between 60.85-62/USD," he added. The US markets saw a good recovery with the S&P 500 logging a fresh 13-year high. The Dow pulled off a stunning comeback, erasing a triple digit loss to finish near the flat line. Even the small cap Russell 2000 index hit a new all-time record.
The CBOE volatility index slumped to 14. The initial jobless claims in the country fell by 15,000 to 358,000 last week, according to the labor department. In Europe, it was a day of consolidation. Markets closed narrowly higher, with investors cheering after US lawmakers finally reached a deal to lift the country's borrowing limit, averting a debt default in the short term.
Asian markets widened their gains on the back of positive economic data from China. The country's Q3 GDP was up 7.8 percent Y-o-Y and up 2.2 percent Q-o-Q. Hong Kong's Hang Seng rose 0.77 percent, while Japan's Nikkei was flat at 14,595. Singapore's Strait Times added 0.31 percent. In commodities, crude tumbled as stockpiles in the Oklahoma oil hub began to reverse a months-long decline.
Talks over Iran's nuclear programme also kept prices under pressure. Brent crude was down about 1.6 dollars per barrel near 109 point. Nymex was sharply lower, down 1.62 at a little over 100 dollars per barrel. Gold climbed more than 3 percent to USD 1321 per ounce, aided by dollar weakness and hopes that the US debt deal may prompt the Federal Reserve to hold back from reducing its additional monetary stimulus.