Nifty gains for 4th day, ends above 6150; IT, HDFC twins up

Equity benchmarks saw late trade upmove again, extending gains for the fourth consecutive session on Wednesday aided by technology, capital goods and healthcare stocks.

Indices closed more than three-week high with the Nifty rising 25.65 points to 6,152.75 and Sensex climbing 88.76 points to 20,722.97.

The market is getting its rhythm back, Dipan Mehta, Member, BSE and NSE said.

''Along with FII inflows, the fact that the interim budget and the uncertainties related to it are also out of the way is good news. Globally the risk appetite is coming back and the emerging markets rout too is receding,'' he elaborated.

The broader markets outperformed benchmarks; the BSE Midcap and Smallcap indices were up 0.5 percent and 0.66 percent, respectively. Advancing shares outpaced declining ones by a ratio of 1447 to 1201 on the BSE.

Dipen Sheth, head- institutional research, HDFC Securities said the midcap stocks still have good potential in them.

3:40 pm Market closing: The market finally ended on high note with support by IT stocks. The Nifty closed at  6152.75, 25.65 points while the Sensex was up 88.76 points at 20722.97.

About 1447 shares have advanced, 1202 shares declined, and 153 shares are unchanged.

IT, Healthcare and Capital Goods indices ended with strong gains. Sun Pharma, Infosys, TCS, Wipro and HDFC Bank were lead gainers in the Sensex.

Metal stocks remained under pressure during the day. Tata Power, Sesa Sterlite, Tata Steel, NTPC and Hero Motocorp were major losers in the Sensex.

3:30 pm Warning bell: The worst of the NPA trouble for banks is still ahead of us, says broking and research firm Credit Suisse. In its latest report, Credit Suisse says, the financial health of India Inc continues to deteriorate with companies having interest cover (IC) less than 1 at 37 percent in Q3, compared to 34 percent in Q2.

Moreover, it says that 82 percent of the debt was with companies that had IC less than 1 for at least four quarters in the past two years and 29 percent of them in the last eight consecutive quarters.

''We are negative on corporate lenders such as SBI, PNB, BOI, Union, ICICI and Yes,'' the report said.

3:20 pm Stocks in focus: Shares of jewellery stocks are on buyers' radar as Finance Minister P Chidambaram may be looking into removing restrictions on import
of gold.

"India cannot afford to import gold of USD 50-60 billion. People must understand that every ounce of gold is imported," Chidambaram had said.

However, BA Ramesh,Thangamayil Jewellery said in an interview to CNBC-TV18 unless the 80:20 scheme is relaxed, a duty cut may not of much help. The gold imports had risen to over 300 tonnes in the first two months (April-May) of the current fiscal.

3:10 pm Market check: The market has started to make some movement in the last trading hour. The Sensex is up 82.19 points at 20716.40, and the Nifty up is 22.20 points at 6149.30. About 1375 shares have advanced, 1217 shares declined, and 146 shares are unchanged.

02:55pm NPA trouble to continue
The worst of the non-performing assets (NPA) trouble for banks is still ahead of us. That's the word coming in from broking and research firm Credit Suisse. In its latest report, Credit Suisse says, the financial health of India Inc continues to deteriorate with companies having interest cover (IC) less than 1 at 37 percent in Q3, compared to 34 percent in Q2.

Moreover, it says that 82 percent of the debt was with companies that had IC less than 1 for at least four quarters in the past two years and 29 percent of them in the last eight consecutive quarters.

The interest coverage ratio (ICR) is used to determine how easily a company can pay interest expenses on outstanding debt. The ratio is calculated by dividing a company's earnings before interest and taxes (EBIT) by the company's interest expenses for the same period.

The lower the ratio, the more the company is burdened by debt expense. When a company's interest coverage ratio is only 1.5 or lower, its ability to meet interest expenses may be questionable.

According to the Credit Suisse, the large corporate stress is yet to fully reflect in the economy.

While the average ticket size of restructuring referrals has moved up to Rs 2,200 crore (from Rs 700 crore in FY13), the impaired asset level for large corporate segment remains low at 5-6 percent vs more than 10 percent for the system.

''We are negative on corporate lenders such as SBI , PNB , BOI , Union , ICICI and Yes ,'' the report said.

02:45pm Punj Lloyd under pressure
State-run oil & gas company ONGC has cancelled Punj Lloyd's Rs 730 crore Mumbai High order, reports CNBC-TV18 quoting sources.

The company is seeking fresh bid for Mumbai High B-127 pipeline cluster.

However, Punj Lloyd said the company was on track to implement ONGC Mumbai High order.

02:30pm Coal ministry taking back coal blocks
The coal ministry is taking back 31 coal blocks allocated to private firms including the Tata group and Jindal Steel and Power over delays in developing them, jeopardising billion-dollar projects and inviting warnings of legal action.

The ministry, reviewing some 61 coal blocks allocated over the past decade that have not started production yet, announced on Tuesday it is reclaiming about half as companies have failed to meet milestones. The companies say delays in getting some government clearances hampered work on the blocks, reports Reuters.

"The ministry has already sent notices to a number of companies about the de-allocation," coal ministry spokesman N.C. Joshi said on Wednesday. "Some others will be intimated soon."

02:15pm Thomas Cook and ESAB India on buyers' radar
Travel company Thomas Cook and welding & cutting products supplier ESAB India climbed 2.5 percent and 13 percent ahead of October-December quarter earnings today.

In the quarter ended September 2013, ESAB India had reported a profit of Rs 8.26 crore as against Rs 10.09 crore in same quarter last year.

Travel company during July-September quarter reported a 77 percent growth in bottomline and 313.5 percent jump in topline compared to a year-ago period.

02:00pm The market is heading towards positive close for the fourth consecutive session on Wednesday supported by technology and capital goods stocks.

The Sensex rose 42.17 points to 20,676.38 and the Nifty advanced 10.75 points to 6,137.85. About 1318 shares have advanced, 1204 shares declined, and 140 shares are unchanged.

Infosys rallied 1.8 percent in afternoon trade. HDFC Securities has a target price of Rs 4,000 on the stock due to margin levers unleashed by Narayana Murthy.

Sun Pharma jumped 2.5 percent after the company received an approval from USFDA to sell a drug to treat Osteoporosis, a bone-weakening disease.

Ranbaxy Labs soared nearly 4 percent on reports that the company and US drugmaker Teva have jointly agreed to settle an investigation launched by the New York Attorney General over claims the two firms colluded to indulge in anti-competitive practices.

Shares of TCS, Larsen & Toubro, HDFC Bank, Mahindra & Mahindra, State Bank of India, ONGC, GAIL, Bharti, Wipro and BHEL rose between 0.4-1 percent.

However, Sesa Sterlite, Tata Steel, Hero Motocorp, Bajaj Auto, NTPC and Tata Power declined 1-2 percent.

Auto stocks like Tata Motors, Maruti Suzuki, Bajaj Auto and Hero Motocorp lost ground. Hero and Maruti slashed products prices on account of cut in excise duty by the government.

2:00 Stock in news: Shares of Thomas Cook jumped as much as 8 percent intraday ahead of October-December quarter results.

The travel company, during July-September quarter, reported a 77 percent growth in bottomline and 313.5 percent jump in topline compared to a year-ago period.

Net profit was increased to Rs 17.84 crore from Rs 10.06 crore and total income from operations rose to Rs 436.71 crore from Rs 105.61 crore year-on-year.

The company follows calendar year as its financial year.

1:50 pm Power bill: Power bill defaulters in Delhi who were expecting a reduced power bill are in for a surprise. The Delhi High Court on Wednesday has stayed the Delhi government's decision, saying it was not clear if the 50 percent waiver of power bill was passed by the Cabinet, reports CNN-IBN.

The High Court has asked for an affidavit by Friday.

The ruling is in response to the PIL challenging the subsidy granted by the Aam Aadmi Party (AAP) government to consumers who did not pay their electricity bills from October 2012 to December 2013.

Keeping with party leader Arvind Kejriwal's request during his campaign against high electricity bills in the capital, the AAP government in Delhi had granted a Rs 6-crore subsidy.

1:40 pm FII view: Jim Walker, founder & MD, Asianomics is bullish on India. "The reason we are confident about India, not just looking at 2014 but for the next 5 years, is really because of what's happening in Indian companies over the last year or so. They have realised that they were overleveraged and their balance sheets were bloated," Walker said.

1:30 pm FDI: The government has finalised a cabinet note on FDI in construction. The note says companies with Indian ownership can enter in MOUs to buy agricultural land. It is also positive news for builders as easier FDI norms are in the offing. DIPP proposes easy eligibility norms for FDI in construction and to halve minimum land area requirement to 5 hectare.

1:20 pm Buzzing: Sugar stocks are buzzing today as domestic prices rise on back of lower production. Sugar prices are up by Re 1 per kg to 28.50 per kg in north India.

The market is trading with mild gains amid mixed Asian cues. The Sensex is up 31.52 points at 20665.73, and the Nifty is up 5.70 points at 6132.80. About 1276 shares have advanced, 1123 shares declined, and 126 shares are unchanged.

Pharma heavyweights like Ranbaxy and Sun Pharma are top gainers on the Nifty.

Ranbaxy is in focus today as reports suggest that New York Attorney General may announce a settlement with US units of Ranbaxy and Teva over allegations that the two companies made an unlawful agreement to restrict competition. Ranbaxy and Teva will refrain from entering into similar agreements in future and will pay the state USD 3,00,000.

Meanwhile, India is on the verge of getting its 29th state. Sources say the Telangana bill may be tabled in Rajya Sabha today. Andhra Pradesh Chief Minister Kiran Kumar Reddy, who has been opposing the Bill announced his resignation today.

12:55pm IOC under pressure
The stake sale in Indian Oil Corporation (IOC) via block deal is likely to take place by month-end, reports CNBC-TV18 quoting sources.

Empowered group of ministers is likely to meet next week to discuss offer price for IOC block deal, sources said.

State-run ONGC and Oil India will buy 5 percent stake each in IOC.

IOC stock slipped 1.45 percent to Rs 234.70 on the Bombay Stock Exchange.

12:45pm Ashok Leyland exploring options to reduce debt
Ashok Leyland stock gained 1.6 percent after the company said it is considering sale of Chennai property.

The commercial vehicle maker said it is exploring various options to cut down its debt and has also gone on press about its intention to divest non-core assets in this regard.

"One of the identified non-core asset that is being looked at for sale will be a property situated in the Boat Club Area in Chennai. As of now the company has not sold the property and may be the speculation would have arisen based on some enquiries on the property," the company elaborated.

12:35pm Kolte-Patil remains in focus
Kolte-Patil Developers, which bagged two real estate projects in Mumbai, said about Rs 400-450 crore of investment will go into in the Mumbai residential projects.

The company expects Rs 700-800 crore of topline from this redevelopment projects. Margins for these projects will be better than prevailing margins, it said.

Kolte-Patil Developers stock rose 2.5 percent to Rs 75.35 on top of a 3 percent upmove in previous session.

12:25pm Jewellery stocks on buyers' radar
Government may cut import tax on gold by up to 4 percent by February-end, reports CNBC-TV18 quoting agencies.

PC Jeweller, Titan Company, Gitanjali Gems and Tribhovandas Bhimji Zaveri gained between 1-2 percent.

The government had raised import duty on gold to 10 per cent and also made it mandatory to export 20 percent of the total gold imported.

12:15pm Market Expert
Prabodh Agarwal, VP- Institutional Equities, IIFL expects the bipolar nature of the market to continue till mid 2014. Speaking to CNBC-TV18 from the sidelines of IIFL Investors Conference 2014, he said that investment-oriented sectors should see a pick-up in earnings growth going ahead and capital goods, industrials and financials could see buying in the second half of CY14.

He is also positive on export and consumption sector and sees them continue to perform well. ''Investors should remain reasonably exposed to the defensives like IT, pharma and financials focused on consumers,'' he added.

Meanwhile, FIIs have neutral view on the Indian market as of now and would wait for elections to be out of market's way before taking any investment call on India, he said. He expects FII investments into India to remain muted for the next three months.

12:00pm The market remains listless in noon trade due to lack of trigger. It may be a consolidation as equity benchmarks rallied 2 percent in previous three consecutive sessions.

The Sensex rose 50.28 points to 20684.49 and the Nifty advanced 12.95 points to 6140.05. About 1229 shares have advanced, 984 shares declined, and 98 shares are unchanged.
 
MCX India, SBI, Tata Elxsi, Ranbaxy Labs, Financial Technologies, Infosys, MCX India and ICICI Bank are most active shares on exchanges.

Ranbaxy Labs rallied nearly 4 percent after the company and US drugmaker Teva have jointly agreed to settle an investigation launched by the New York Attorney General over claims the two firms colluded to indulge in anti-competitive practices.

Sun Pharma is top gainer in the Sensex, rising 2 percent as the company received an approval from USFDA to sell a drug to treat Osteoporosis, a bone-weakening disease.

Shares of Infosys, Reliance Industries, TCS, Larsen & Toubro, ITC, HDFC Bank, Bharti Airtel and State Bank of India gained between 0.4-1 percent.

However, Sesa Sterlite extended its fall to 2 percent followed by Tata Steel with a 1.5 percent decline. Housing finance company HDFC slipped 1 percent.

11:50 am Buzzing: Shares in Sun Pharmaceutical Industries gain 1.5 percent after the company got US Food and Drug Administration approval to sell a drug to treat Osteoporosis, a bone-weakening disease.

Currently the drug, Ibandronate Sodium, is marketed by Roche under the brand name Bovina.

"Bovina generated an annual sales of USD 82 million in 2012. Currently, Sun Pharma is the only generic player to have final approval for this product," brokerage Sharekhan said in a note on Wednesday.

More players would be able to sell the drug after its patent expiry on September 2, 2014, Sharekhan said.

11:40 am Market outlook: The non-banking financial company or the NBFCs space is likely to be in the limelight as Bimal Jalan committee's recommendations on new banking licences is eagerly awaited before this fiscal year end.

Nischint Chawathe, NBFC Analyst, Kotak is betting on IDFC, which is trading below book. He says over the next three years even if the finance company gets converted into a bank and sees pressures on Return on equity (RoE), it would still be a good buy. It may even take some time for the company to get into a full fledged banking model, but considering it is currently trading below book, the stock has possible factored in the worse, he adds.

He says as far as L&T Finance goes, from a valuation point and a return ratio that appears a little high, he would want to look at a better value.

11:30 am Stock in focus: Shares of Hero MotoCorp fell over 1 percent intraday on Wednesday as the auto major slashed price rates by up to Rs 4,500.

Following excise duty cut announced by Finance Minsiter P Chidambaram in the Vote on Account 2014-15, both Honda Motorcycle & Scooter India (HMSI) and Hero MotoCorp reduced product prices. Chidambaram announced reduction in excise duty on small car, motorcycles, scooter and commercial vehicles to 8 percent from 12 percent.

The price benefit starts from minimum of Rs 1,600 on Dream Neo motorcycle, priced between Rs 43,150 and Rs 47,289, and goes up to Rs 7,600 on CBR 250R performance bike tagged between Rs 1.58 lakh and Rs 1.93 lakh (ex-showroom Delhi).

11:20 am Market outlook: Prabodh Agarwal, VP- Institutional Equities, IIFL expects the bipolar nature of the market to continue till mid-2014. Speaking to CNBC-TV18 from the sidelines of IIFL Investors Conference 2014, he said that investment-oriented sectors should see a pick-up in earnings growth going ahead and capital goods, industrials and financials could see buying in the second half of CY14.

He is also positive on export and consumption sector and sees them continue to perform well. ''Investors should remain reasonably exposed to the defensives like IT, pharma and financials focused on consumers,'' he added.

Meanwhile, FIIs have neutral view on the Indian market as of now and would wait for elections to be out of market's way before taking any investment call on India, he said. He expects FII investments into India to remain muted for the next three months.

The market seems to be taking a breather and is also waiting for minutes of the US FOMC January meeting that will be released later today. The Sensex is up 19.87 points at 20654.08, and the Nifty is up 5.65 points at 6132.75.

About 1161 shares have advanced, 796 shares declined, and 94 shares are unchanged. Sun Pharma, Infosys, BHEL, GAIL and M&M are top gainers in the Sensex. Among the laggards are Sesa Sterlite, Tata Steel, Hero Moto Corp, HDFC and Tata Power.

Asian markets trade mixed due to lack of clear direction from US equities.

In currencies, the euro is trading slightly higher against the dollar as weak economic data from the US increased speculation about a delay in cutting down monetary easing. The yen trades in a tight range against the dollar.

Gold prices give up gains but is still trading near 3.5 month highs. Brent too is soft after settling at the highest levels this year.

10:59am Ranbaxy-Teva settle with New York Attorney General
The New York Attorney General and the US units of Ranbaxy Laboratories and Teva Pharmaceutical Industries have settled claims that an agreement between the two drugmakers unlawfully restricted competition.

Under the terms of the settlement, the two generic drug makers will end a 2010 agreement of not challenging each other's rights to sell certain drugs exclusively in the United States.

"Agreements between drug manufacturers to protect each other's market positions violate fundamental principles of antitrust law, and can lead to higher drug prices," Attorney General Eric Schneiderman said in a statement.

Teva and Ranbaxy will pay the New York state USD 300,000 and have agreed to refrain from similar agreements in the future, reports Reuters.

10:50am Sun Pharma gains nearly 2%
Shares in Sun Pharmaceutical Industries gained 1.7 percent after the company got US Food and Drug Administration approval to sell a drug to treat Osteoporosis, a bone-weakening disease.

Currently the drug, Ibandronate Sodium, is marketed by Roche under the brand name Bovina.

"Bovina generated an annual sales of USD 82 million in 2012. Currently, Sun Pharma is the only generic player to have final approval for this product," brokerage Sharekhan said in a note on Wednesday, reports Reuters.

10:40am Ashok Leyland on buyers' radar
Ashok Leyland stock soared 2 percent after the company said it is considering sale of Chennai property.

Commercial vehicle maker said it is exploring various options to cut down its debt and has also gone on press about its intention to divest non-core assets in this regard.

"One of the identified non-core asset that is being looked at for sale will be a property situated in the Boat Club Area in Chennai. As of now the company has not sold the property and may be the speculation would have arisen based on some enquiries on the property," the company elaborated.

10:30am Market Expert
Prabodh Agarwal, VP- Institutional Equities, IIFL expects the bipolar nature of the market to continue till mid 2014. Speaking to CNBC-TV18 from the sidelines of IILF Investors Conference 2014, he said that investment-oriented sectors should see a pick-up in earnings growth going ahead and capital goods, industrials and financials could see buying in the second half of CY14.

He is also positive on export and consumption sector and sees them continue to perform well. ''Investors should remain reasonably exposed to the defensives like IT, pharma and financials focused on consumers,'' he added.

Meanwhile, FIIs have neutral view on the Indian market as of now and would wait for elections to be out of market's way before taking any investment call on India, he said. He expects FII investments into India to remain muted for the next three months.

10:20am Tata retains top brand position
According to a list released today of world's 500 most valued brand, Brand Finance Global 500, Apple is followed by Samsung (USD 79 billion) at second place globally. In the top-ten, these two are followed by Google, Microsoft, Verizon, GE, AT&T, Amazon, Wal-Mart and IBM.

Tata has retained its top place among Indian brands and its global ranking has also improved from 39th in 2013 to 34th now. However, the number of Indian companies on the list has declined to five from six.

Other than Tata, the global ranking of all other four Indian companies has dropped and they include SBI (347th), Airtel (381), Reliance Industries (413) and Indian Oil (474).

Tata's brand value has increased from USD 18.2 billion to USD 21.1 billion, and it has consistently improved its ranking since being placed 100th in the year 2007, reports PTI.

10:10am FII View
Laurence Balanco of CLSA said Nifty's rebound off the early February low which coincides with the 200 DMA has been weak.

"A break below 5983-5957 would suggest further weakness in the coming weeks with a downside target of 5588," he added.

10:00am The market gained further with the Nifty moving up towards 6150 level amid volatility, supported by technology, banks and capital goods stocks.

The Sensex rose 54.22 points to 20,688.43 and the Nifty climbed 14.55 points to 6,141.65 while the broader markets outperformed benchmarks. The BSE Midcap and Smallcap indices advanced 0.6 percent each as two shares advanced for every share declining on the BSE.

Healthcare stocks like Sun Pharma and Dr Reddy's Labs rose a percent while Cipla gained 0.4 percent.

Mahindra and Mahindra remained on buyers' radar from start of this week, rising a percent after the finance minister slashed excise duty on small utility vehicles.

Shares of Infosys, TCS, Reliance Industries, Bharti Airtel, Wipro and BHEL climbed 0.5-1 percent.

State Bank of India and Axis Bank rose over 0.7 percent while HDFC and HDFC Bank lost 1.2 percent and 0.4 percent, respectively.

Tata Steel and Sesa Sterlite fell over a percent. Tata Power slipped 0.6 percent on profit taking after the stock rallied 6 percent in last two sessions.

9:50 am Big deal: Mumbai-based Lodha Developers has purchased another property in London for Rs 930 crore. The developer has bought New Court, a commercial property on Carey Street in London from Uk-based investment fund, West End of London Property Unit Trust (WELPUT). The property is a land of about 1.15 acre, which Lodha Developer will transform into a residential property.

Property consultant, Knight Frank, who had advised the developer on its first London Rs. 3200 cr buy that is the MacDonald House, the headquarters of the Canadian high commission at Grosvenor Square, was the advisor this time around too.

9:40 am FII view: Laurence Balanco, CLSA feels Nifty's rebound off the early February low which coincides with the 200 DMA has been weak. "A break below 5983-5957 would suggest further weakness in the coming weeks with a downside target of 5588," he adds

With India's general election on the horizon and ongoing Fed taper, Manish Hemrajani, Oppenheimer continues to recommend defensive stocks that benefit from a weaker rupee and an uptick in economic activity in developed markets.

9:30 am Buzzing: Shares of HMT rallied as much as 7 percent in early trade following approval of revival and restructuring package of Rs 1,083 crore by government.

"The revival and restructuring plans of the company includes cash infusion of Rs 425 crore against which the company has to issue of 8 percent redeemable preferential shares," the company said in its filing.

In the phase I, the Government of India has released the sanctioned funds amounting to Rs 217 crore.

Further, the board of directors of the state-run company on January 25 approved the allotment of fully paid-up 8 percent redeemable preference shares of Rs 100 each for a face value of Rs 217 crore in favour of President of India. That is redeemable within two years as per the terms of sanction of the investment by Government, the release said.

After the rally seen yesterday, the market has opened quietly on Wednesday. The Sensex is up 20.33 points at 20654.54, and the Nifty is up 5.35 points at 6132.45.

About 211 shares have advanced, 87 shares declined, and 23 shares are unchanged.

Hero Motocorp, Sun Pharma, Bharti Airtel, Infosys and Coal India are top gainers in the Sensex. Among the losers are NTPC, Sesa Sterlite, HDFC twins and ICICI Banks.

Indian currency market and banks are shut on account of Shivaji Jayanti.

US markets closed mixed after a three-day holiday weekend with the Nasdaq rising for an eight straight session. Asian markets have opened lower in early trade.

Meanwhile, crude prices trend mixed with the spread narrowing between Brent and Nymex after Nymex rose above USD 103 a barrel to a fresh four-month high, on forecasts of lower crude and oil products stockpiles due to new pipeline capacity and robust winter demand.

From the precious metals space, gold has eased a bit in early trade but remains near the highest level in more than three months as lingering worries about global economic growth burnished its safe haven appeal.

In the currency space, the euro is holding onto broad-based gains, having darted higher while the dollar took a hit from soft economic data and news that foreign investors had been heavy sellers of US assets. The yen meanwhile has weakened a tad bit.