Sensex, Nify end flat; Tata Motors up 3%, Hero falls 3%
03 July 2014
03:55 pm FII view
European markets opened flat on Thursday ahead of the ECB meet. All eyes are now on the US jobs data, which is expected later today.
Discussing a host of global cues, Ramin Nakisa, senior global asset allocation strategist, UBS Investment Bank, says he is expecting good growth in US markets in the second half of the year.
''We were very shocked by the downgrade of US growth we saw last time around. I think we had to downgrade our US growth expectation for the end of this year as a result of that,'' he said, adding that they are hoping for a recovery to continue in US. He expects a subdued policy from the European Central Bank.
03:45 pm Rail Budget hopes
Keeping passenger amenities and comfort as its top priorities, railways have proposed a new design coach with improved furnishings and house keeping scheme in coaches in the Rail Budget 2014-15.
The national transporter is also proposing to introduce intensive mechanised cleaning of coaches, clean train station scheme and comprehensive pest and rodent control treatment as part of measures to provide a comfortable journey to passengers.
As part of the housekeeping scheme, there will be attendants in each coach to address problems related to hygiene like maintaining clean toilets and keeping coaches spick-and-span.
Railways are also proposing to upgrade interior furnishing of coaches.
03:35 pm Market closing
The market ended on a flat note. After a short trading session, the Sensex ended 17.76 points or 0.07 percent down at 25823.45. The Nifty down 9.25 points or 0.12 percent at 7715.90. About 1243 shares have advanced, 1485 shares declined, and 109 shares are unchanged.
Tata Motors was up 3 percent while Wipro, Sun Pharma, M&M and TCS were major gainers in the Sensex. Hero MotoCorp and Bajaj Auto lost 3 percent each while Hindalco, Tata Power and ONGC fell 2 percent each.
03:20 pm Penalty
The Supreme Court has ordered Reliance Infrastructure's BSES to pay Rs 257 crore to state power generation companies. BSES will have to make the payment on or before July 15.
State run National Thermal Power Corporation (NTPC) had complained to the Supreme Court (SC) that electricity maker had not received payment to the tune of Rs 900 crore from Anil Ambani group owned Bombay Suburban Electric Supply (BSES).
It said that Tata-owned distribution companies (discoms) are making regular payments and it is only BSES which is in default.
In March 2014, SC had come out with a clear order directing BSES to make the payments of Rs 900 crore, beginning from January 1 to about March 31 but NTPC claims that the money has not come in so far.
The new government could sell a 5 percent stake in the state-run Steel Authority of India Ltd (SAIL) in the last week of this month, three people directly involved in the process said, reports Reuters.
The marketing roadshows for the stake sale, valued at about $340 million at the current market price, will begin soon after the presentation of the federal budget scheduled for July 10, the people said.
The sources declined to be named as they were not authorised to speak to the media before a government announcement. A SAIL spokesman in New Delhi declined to comment.
03:00pm Jet Airways in News
Jet Airways and Alitalia, Italy's leading carrier, announced the expansion of their code share partnership offering guests enhanced network connectivity between India and Italy and beyond to several Indian and Italian cities of touristic and business importance.
The new code share flights are on sale from July 1, 2014, for travel starting July 5, 2014, the release says.
Under the expanded code share agreement, Jet Airways will place its marketing code on the Alitalia operated flights between Abu Dhabi and Rome and beyond to Bologna, Florence, Naples, Turin, Venice and Verona in Italy.
Similarly, Alitalia will place its code on Jet Airways flights operated between Abu Dhabi and Delhi, Mumbai and Kochi. Alitalia will also place its code on Jet Airways' flights beyond Mumbai and Delhi to Amritsar, Bengaluru, Chennai, Kolkata and Udaipur.
02:50pm Sesa Sterlite in focus
Sesa Sterlite, India's largest private iron ore miner, expects to resume production in the country's Goa state in September, a senior official of the company said.
The miner expects its total iron ore output at 9.29 million tonnes in the current fiscal year to March 2015, Aniruddha Joshi, a vice president at Sesa Sterlite that operates in Goa and neighbouring Karnataka, told Reuters in an interview.
The Supreme Court in April lifted a ban on mining in Goa, in place for nearly two years to curb illegal mining, but ordered firms to renew mining leases and environmental clearances before restarting work.
02:40pm M&M Q1 earnings on August 8
Mahindra and Mahindra says a meeting of the board of directors will be held on August 08 to consider and approve the company's unaudited financial results for the first quarter ended on June 30, 2014 (Q1).
In terms of the code of conduct for prevention of insider trading in shares of M&M, the trading window has been closed from July 01, 2014 to August 09, 2014, it adds.
02:30pm Hexaware down 2.5%
Bank of America Merrill Lynch has downgraded Hexaware to underperform with a target price of Rs 135, indicating a 14 percent downside. The brokerage has also lowered revenue growth forecast for CY13-15 to 7 percent from 12 percent and sees flattish earnings over the same period.
''We see emerging revenue concerns for the firm, given weakening growth outlook with its top-10 clients (51 percent of revenues), as a lower presence in growth markets begins to hurt and our expectation that new strategic initiatives to bolster growth will take time to deliver,'' it said.
02:20pm BSE press conference
While addressing press conference post solving technical glitch at exchange, Ashish Kumar Chauhan, MD and CEO, BSE says the the root cause analysis report will be presented to SEBI soon. "BSE, HCL Comnet and Cisco will prepare root cause analysis," he adds. He says preliminary report will be sent to SEBI and finance ministry today.
According to him, BSE hasn't seen this kind of network outage in last four years.
He says equity market had pre-open session at 12:37-12:45 pm.
02:10pm FII View
The Budget is not as important as the market is making it out to be, and it will have a limited impact on the broader economy, feels Neelkanth Mishra, Head of Equity Strategy-India, Credit Suisse.
In an interview to CNBC-TV18, Mishra says the Indian market was moving up as globally, risk appetite has improved.
Mishra says the change of government at the Centre is driving economic growth, but cautioned that market was expecting too much from the government in a short time.
02:00pm Equity benchmarks continued to consolidate in afternoon trade with the Sensex rising 15.83 points to 25857.04 and the Nifty falling 1.05 points to 7724.10. The broader markets were lacklustre too.
About 1017 shares have advanced, 1254 shares declined, and 60 shares are unchanged.
After more than three hours of trading halt from the opening trade, the Bombay Stock Exchange has managed to resume trading in all segments around 12:30 today. The trading in BSE was stopped at 9:30 am due to network problem.
Two-wheeler majors Bajaj Auto and Hero Motocorp as well as aluminium major Hindalco Industries slipped 2-3 percent on profit booking. Oil & gas stocks like ONGC and Reliance Industries declined 1 percent each while power stocks namely Tata Power and NTPC lost a percent too.
Private sector lender HDFC Bank dropped 0.6 percent whereas Tata Motors extended gains to 3.5 percent followed by Sun Pharma, M&M, Wipro and Sesa Sterlite with 1-2 percent.
1:55 pm Budget outlook: The Budget is not as important as the market is making it out to be, and it will have a limited impact on the broader economy, feels Neelkanth Mishra, Head of Equity Strategy-India, Credit Suisse.
In an interview to CNBC-TV18, Mishra said the Indian market was moving up as globally, risk appetite has improved. Mishra says the change of government at the Centre is driving economic growth, but cautioned that market was expecting too much from the government in a short time.
He sees the June sales numbers as a sign that the economy may have bottomed out. He continues to remain bullish on cyclicals, particularly auto and NBFCs. Mishra is recommending his clients to increase exposure to both sectors.
1:50 pm Market check: The Sensex is up 13.24 points at 25854.45 and the Nifty is down 1.25 points at 7723.90. About 992 shares have advanced, 1206 shares declined, and 70 shares are unchanged.
1:40 pm HSBC PMI: Activity in India's services sector grew at its fastest pace in well over a year in June as new business poured in, adding to signs of a pick-up in the economy even as inflation remains high, a survey showed on Thursday. The HSBC Services Purchasing Managers' Index, compiled by Markit, jumped to a 17-month high of 54.4 in June from 50.2 in May. That was the biggest one-month rise in the index in four years.
Before May, the services PMI had been stuck below 50, which divides growth from contraction, for almost a year. The data supports growing optimism among Indian firms that the new government led by Prime Minister Narendra Modi will push through reforms after years of policy paralysis.
1:30 pm AirAsia spreads wings: AirAsia India is looking at new routes and destinations, said its Group CEO Tony Fernandes at a press conference in Thursday. AirAsia India launched flights last month from Bangalore to Chennai and Goa, at advance fares as low as Rs 490 and Rs 990. It has also launched flights to Kochi.
''The airline's flights for the next 2 months have been sold out,'' Fernandes said. The Group CEO of the carrier said they are looking at places where no other airline has gone. He finds northeast to be an ''appealing destination''.
On Japan business, Fernandes said the ''Japan JV did not do well as we did not have right partnership.'' The Malaysian budget carrier ended a partnership with the parent of Japan's All Nippon Airways in June last year. However on Tuesday the company said that it will return to Japan with new local partners.
1:20 pm Buzzing: Shares of Tata Global Beverages (TGBL) fell over 3 percent intraday. Morgan Stanley has maintained underweight rating on the stock.
The brokerage believes increased competition in the branded tea business, increased product development expenses, sharp increase in ad-spends and likely sub economic returns on the cash that the company has on its books near term may limit stock performance.
Morgan Stanley says that TGBL's subsidiary Eight O'Clock Coffee's (EOC) will likely find it difficult to maintain revenue growth and profitability trends with Nestle's entry in the segment. In FY 14, EOC contributed 23 percent to consolidated EBITDA. According IRI (Chicago-based research firm) EOC's exit market share has fallen by over 5 ppt in whole bean coffee over the last two years.
After over three-hour halt in trading, the BSE opened for fresh trading on Thursday. The Sensex is at 25,827.81, down 13.40 points while the Nifty holds 7700, at 7722 down 3.15 points.
Tata Motors, Sun Pharma, Wipro, Sesa Sterlite and TCS are top gainers in the Sensex. Among the losers are Hero Moto Corp, Bajaj Auto, Tata Power, ONGC and HUL.
Technical glitches on the BSE's trading platform seem to have become a common feature in 2014 so far. The fourth and by far the most serious of technical glitches this year forced the country's oldest stock exchange to shut down trading in all its segments. However, NSE was open for trading since morning.
Meanwhile, Gold slipped to trade below a three-month high as investors awaited a string of key data releases later in the day to gauge the strength of the global economy and the fate of stimulus measures by central banks.
US data on jobs, unemployment and trade is expected on Thursday, while the outcome of European Central Bank (ECB) policy meeting will also be announced. Weaker-than-expected data and continued stimulus measures would be supportive of safe-haven gold, typically seen as a hedge against inflation. "There isn't much liquidity today because everyone is waiting for nonfarm payrolls and the ECB," said one precious metals trader in Hong Kong.
01:00pm Top gainers and losers on BSE
Eicher Motors, Apollo Tyres, Jet Airways, Motherson Sumi and Wockhardt gained 3-5 percent while GMR Infrastructure, Thermax, Castrol India, Bajaj Holdings and Jaiprakash Associates fell 3-7 percent.
12:50pm The 30-share BSE Sensex rose 34.72 points to 25,875.93 and the 50-share NSE Nifty gained 5 points to 7730.
The BSE Midcap Index advanced 16.72 points to 9523.62 and Smallcap climbed 38 points to 10472.04.
12:45pm Trading at BSE
After more than three hours of trading halt due to connectivity issue, the Bombay Stock Exchange has managed to resume normal trading.
The exchange had stopped trading at 9:30 am due to network outage.
12:35pm FII View
Aditya Narain, Citi says the government's first budget is just a first step in a five-year run, but should set near-term mood. ''Big ones that would move mood & market: Oil reform; particularly LPG/kerosene subsidies, income tax rationalisation, savings thrust/tax changes, big housing thrust, changing land/labor laws and subsidy cuts. One or more, and the market's off to the bar!'' he adds.
He further says the brokerage house is positively biased, and maintains a December 2014 Sensex target of 26,300.
12:25pm Subir Gokarn on onion's minimum export price
The government on Wednesday hiked the minimum export price (MEP) of onions to USD 500 per tonne to improve the domestic supply and curb prices.
Speaking about it, Subir Gokarn, Director of Research, Brookings India told CNBC-TV18 that dealing with food inflation is priority for the new government on the face of weak monsoon that poses critical risk to vegetables, oilseeds and cereals.
Gokarn is hopeful that normal crop sowing can happen if July gets normal rains.
He welcomed the step taken by the government to check prices of essential commodities and believes it will effectively increase supply of potatoes and onions in the near term.
12:20pm Thomas Cook India: The company partners Manya Abroad - The Princeton Review to provide comprehensive solutions for students travelling abroad.
12:10pm Vakrangee in News
Vakrangee's board of directors at today's meeting approved fund raising by way of qualified institutional placement (QIP) by way of issuance of eligible securities to the qualified institutional buyers (QIBs) upto 15 percent of the then issued and subscribed capital of the company.
The board also constituted a committee to be called as QIP Committee authorised to do all such acts, deeds and things with respect to the aforesaid QIP.
12:00pm The 50-share NSE Nifty remained in a consolidation mode in noon trade after hitting a record high in previous session. Meanwhile, trading in Bombay Stock Exchange has been shut from morning due to technical glitch and the exchange has not yet informed about when it will start, though earlier it had said all orders in order book prior to stoppage will be cancelled.
The Nifty rose 3.5 points to 7728.7 and the NSE Midcap gained 0.44 percent to 11,395.70.
Shares of Tata Motors, Sun Pharma rallied 2 percent each followed by Sesa Sterlite, Mahindra & Mahindra, Wipro, United Spirits and Coal India with over a percent.
However, two-wheeler majors Hero Motocorp and Bajaj Auto fell 2 percent each. NTPC, Hindustan Unilever, Tata Power, Gail and Cairn India declined 1 percent. HDFC, HDFC Bank, ONGC and Infosys slipped marginally.
11:50 am HSBC PMI: Activity in India's services sector grew at its fastest pace in well over a year in June as new business poured in, adding to signs of a pick-up in the economy even as inflation remains high, a survey showed.
The HSBC Services Purchasing Managers' Index, compiled by Markit, jumped to a 17-month high of 54.4 in June from 50.2 in May.
That was the biggest one-month rise in the index in four years. Before May, the services PMI had been stuck below 50, which divides growth from contraction, for almost a year, reports Reuters.
11:40 am Sharon Bio-Medicine gains 14%: Board of directors of the company has approved pricing of warrants to be issued to promoter group on preferential basis for which postal ballot notice has been issued on June 10, 2014. The result of postal ballot is scheduled to be announced on July 14, 2014.
Board has decided to issue warrants, subject to approval of members to be obtained by way of postal ballot at price of Rs 50 per warrant. At the time of conversion of warrants to equity shares, Rs 2 will be appropriated towards face value and balance Rs 48 to security premium.
11:30 am HDIL in News: Housing Development and Infrastructure has entered into definitive agreements with respect to transfer of its 100 percent shareholding of its wholly owned subsidiary company, HDIL Entertainment Private Limited to Carnival Films Private Limited.
"As per the agreement the company will divest its 100 percent shareholding in the subsidiary company thereby handing over the operations of its chain of multiplex business across India," it says.
11:20 am New order: Brahmaputra Infrastructure has been awarded a project worth Rs 18.63 crore by chief engineer (IP), PB, PWD B&R branch, Chandigarh for construction of flyover at Siswan T-Junction on Morinda-Kurali-Siswan road upto state boundary.
11:10 am L&T in focus: L&T Construction, a brand of Larsen & Toubro, has won new orders worth Rs 1,459 crore in various business segments like building & factories (Rs 1,173 crore) and transportation infrastructure (Rs 286 crore),
11:00 am Order: ARSS Infrastructure Projects has bags a work order worth Rs 96.50 crore in road sector in the state of Odisha.
10:22 am BSE says there will be a fresh restart and will have pre-opening session. The exchange says previous orders in order book before outage to be cancelled.
10:15 am Opinion: Rajnikant Patel, Former BSE MD & CEO says normally it takes maximum 20 minutes to resolve technical glitch. BSE has to be in touch with SEBI, NSE as well. BSE has to shut all segments to balance trading.
10:10 am NSE check: After slipping in the red, the Nifty managed to gain 4.60 points or 0.06 percent at 7,729.75. Tech Mahindra, TCS, Sun Pharma and Bharti are top gainers while Hero Moto, Bajaj Auto, IndusInd, Tata Power and Ambuja Cements are major losers in the Nifty.
10:05 am BSE CEO says to resume trading in a 'few minutes', reports agencies.
9:52 am NSE says all segments to remain open
9:50 am Market Alert: BSE says to close all markets due to network outage. Network service vendor HCL's team is working to resolve issue.
9:40 am FII view: According to Jonathan Schiessel of Ashburton, India is likely to stay in a bull market if the Modi government delivers on expectations, which remain elevated. He says the finance minister talk of no nonsense Budget is giving confidence to FIIs.
He says a populist Budget will be taken negatively by investors. ''The government tackling of economic problems like inflation will be a big positive,'' he told CNBC-TV18.
He says the Indian market may move another 10-15 percent if reforms are delivered. India is fairly unique in the emerging market space post the election outcome. He says there is a lot more global money sitting to take a call on India post the big event. ''We are comfortable with raising exposure if the government walks the talks,'' he says.
Currently, Ashburton is overweight on industrials, consumer discretionary and financials like NBFCs in India. It is not too fond of PSU banks, and rather prefers to hold on the private sector biggies like ICICI Bank .
9:30 am Buzzing: Shares of Reliance Capital jumped over 1 percent intraday on Wednesday it is beginning the process of unlocking value from investments in non-core sectors to focus on its key financial services businesses.
In a statement to the BSE, the company said it will align its non core investments with successful entrepreneurs and support their future growth. It will singularly focus on and accelerate growth in its core businesses in financial services.
The film and media services business of Reliance MediaWorks has been combined with Prime Focus, in which it will also get a 30.2 percent stake. Reliance Capital used to hold an almost 15 percent stake in Prime Focus, which was offloaded in 2006.
The market has opened in green after Wednesday's record closing high. The Sensex is at 25914, up 78.04 points while the Nifty is at 7739.60, up 14.55 points.
Wipro, Tech Mahindra, BPCL and Bharti are top gainers while Bajaj Auto, Hero, Hindalco, Dr Reddy's and HCL Tech are major losers in the Nifty.
The Indian rupee opened flat at 59.67 per dollar versus 59.69. US dollar clings onto modest gains, having risen broadly on the back of a report that showed solid hiring in the US private sector.
US markets consolidate at record highs after a mixed set of cues from the US economy. US factory orders disappointed but was more than offset by a strong ADB employment report.
Asia markets are cautious ahead of US non farm payrolls and the ECB rate decision due today. Kospi retreated from five-week highs though data showed their foreign reserves rose by the biggest amount in eight months in June.
Traders may also focus attention on China's non-manufacturing Purchasing Managers' Index (PMI) for June. Last month, activity in the services sector grew at its fastest pace in six months.
In the currency space, US dollar clung onto modest gains, having risen broadly on the back of a report that showed solid hiring in the US private sector. In commodities, Brent crude slips below USD 111 a barrel on encouraging signs for supply from Libya and Iraq.