Nifty ends below 8300 ahead of F&O expiry, Sensex falls 195
23 December 2014
03:30 pm Market close
The market has ended lower ahead of December F&O expiry day. The Nifty was down 57.00 points at 8267.00. The Sensex slipped 195.33 points at 27506.46. About 1070 shares have advanced, 1851 shares declined, and 115 shares were unchanged.
Tata Power tripped 3 percent while other losers in the Sensex were Sesa Sterlite, Tata Steel, Coal India and L&T. The gainers include NTPC, Bajaj Auto, Cipla, Bharti Airtel and Hero MotoCorp.
03:10 pm IPO nod:
Toll management company MEP Infrastructure Developers has received market regulator Sebi's approval to raise Rs 360 crore through an initial public offer (IPO).
The Mumbai-based company had filed its draft papers with the Securities and Exchange Board of India (Sebi) for the proposed public offer in September.
Sebi issued its final 'observations' on the draft red-herring prospectus (DRHP) documents on December 9, according to the latest update by the capital markets regulator.
02:45pm Cipla bags order
Cipla Medpro, the third largest pharmaceutical company in South Africa, has been awarded R2 billion share of the South African Government's 2015-17 National ARV tender. The contract is effective from the April 1, 2015 and will run for a period of three years.
CEO of Cipla Medpro, Paul Miller, says that Cipla is proud to have been recognised once again as a preferred partner of the State in the national fight against HIV and Aids.
''We intend to continue this proud tradition and build on the foundation laid to continue our quest of providing affordable healthcare to all,'' Miller adds.
This latest Government tender win is the third in the last year for the growing pharmaceutical company, and follows Cipla Medpro winning a R280 million state therapeutic drug tender (August 2014), a R345 million national respiratory tender (June 2014).
02:25pm Jubilant Life in News
Jubilant Life Sciences has completed tender offer to acquire all outstanding shares of Cadista Holdings Inc, thereby making the US-based firm as its
Jubilant Generics Inc, a subsidiary of the company has successfully completed its previously announced Tender Offer for all of the outstanding shares of Cadista Holdings Inc, Jubilant Life Sciences said in a statement.
"Accordingly, Cadista Holdings has now become a wholly-owned subsidiary of Jubilant Life Sciences Ltd," it added.
As of the expiration of the tender offer, a total of 17,018,378 shares were validly tendered and not withdrawn in the offer, representing around 82 per cent of Cadista Holdings' currently outstanding shares not already owned by Jubilant Generics and its affiliates, it said, reports PTI.
02:00pm Market Check
Equity benchmarks fell more than 0.7 percent in afternoon trade weighed by banking & financials, metals, oil & gas, capital goods and technology stocks. The broader markets too were under pressure with the BSE Midcap and Smallcap indices falling half a percent each.
The Sensex declined 199.74 points to 27502.05 and the Nifty slipped 61.30 points to 8262.70. Two shares declined for every share advancing on the Bombay Stock Exchange.
Andrew Holland of Ambit Investment Advisors says he is nervous about the reform agenda slowing down. The market will be disappointed if no Bills are passed by end of winter session today and that Nifty may settle around the 8300 level in near term, he adds.
Sesa Sterlite topped the selling list in Sensex, down 4 percent followed by Tata Power and Tata Steel with 2-3 percent loss. ICICI Bank, HDFC, Infosys, Reliance Industries, L&T, Tata Motors and ONGC were down more than a percent. However, Bharti Airtel, Bajaj Auto and Hero Motocorp bucked the trend, up 1-1.6 percent.
The rupee also remained under pressure due to month end dollar demand from oil companies, down 17 paise to 63.41 a dollar while bond yields were rangebound in holiday thin trade.
Global equities were mixed. Shanghai plunged 3 percent after China's services trade deficit widened in November to USD 20.8 billion. Meanwhile, European markets like CAC, DAX and FTSE gained 0.4-0.6 percent.
1:50 pm Invesment strategy: Mahantesh Sabarad, from SBICAP Securities (SSL) expects the markets to move sideways. The market is likely to consolidate because concerns in terms of macro data like IIP etc still remain and nothing positive has come out from the winter session to push the market up, he adds. Stock specific, he is upbeat on ONGC, Infosys, Aban Offshore , Neyveli Lignite and FirstSource Solutions. ONGC may have suffered because of fall in crude prices but going forward he thinks prices may bottom out and not fall sharply. With a CAGR growth of around 30 percent, the valuations looks cheap. For Aban Offshore he has an EPS estimate of Rs 110 and has good earnings visibility.
1:30 pm Opinion: Andrew Holland expects one more round of volatility in global commodity and forex markets in January, and sees that feeding into equity markets everywhere. He sees the Nifty settling around 8300 near term. In an interview to CNBC-TV18's Latha Venkatesh and Sonia Shenoy, he says India will not be able to weather the turbulence in global markets unless the government accelerates the pace of economic reforms.
He says lack of any major Bills being passed in this session of Parliament will be viewed negatively by investors, as it will delay the much anticipated recovery in the economy, and by extension, the uptick in corporate earnings. Holland is bullish on private sector banks and auto components firms. He is bearish on defensives, particularly IT as he feels valuations are stretched.
The market is showing signs of cracks ahead of December F&O series expiry. The Sensex is down 131.38 points at 27570.41. The Nifty slips 40.95 points at 8283.05. About 915 shares have advanced, 1767 shares declined, and 120 shares are unchanged.
Infra, metals and IT stocks are dragging the indices with losers like Sesa Sterlite, Tata Power, Tata Steel, Hindalco and Coal India. The gainers are Bharti Airtel, Bajaj Auto, NTPC, M&M and Hero Moto.
Plunging oil prices will prompt global energy companies to cut investments in new projects by 25 percent or more in 2015, analysts said over the past week, as firms try to stay cash-flow positive and keep debt in check. With oil prices down more than 40 percent since June, some companies, including ConocoPhillips, have slashed spending by 20 percent. But because crude prices have yet to stabilize, other companies are waiting to draw up budgets.
Brokers said emergence of profit-booking by funds in stocks that had recently logged gains amidst absence of any fresh trigger and a weak trend at other Asian markets led to the fall in markets. Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 335.24 crore yesterday, as per provisional data from stock exchanges.
12:55pm Market Update
The market extended loss in afternoon trade with the Sensex falling 196.35 points to 27505.44 and the Nifty losing 59.10 points to 8264.90 on profit taking post weak China data.
China reported a trade deficit of USD 20.8 billion in its services sector with the rest of the world in November, which was higher compared to a USD 17.2 billion deficit in the services trade for October.
In November 2013, China reported USD 54.47 billion surplus on its merchandise trade.
About two shares declined for every share advancing on the Bombay Stock Exchange.
ICICI Bank, Reliance Industries, Infosys, Tata Motors and ONGC were down 1-1.5 percent. Tata Steel, Sesa Sterlite, Tata Power, Coal India and Hindalco Industries topped the selling list, down 2-3 percent.
12:50pm Madhucon Projects in focus
Madhucon Projects has entered into a term sheet with TRIL Roads Private Limited to disinvest its subsidiaries Madhucon Infra and Madhucon Toll Highways' 74 percent stake in Madhucon Agra-Jaipur Expressways (step down subsidiary of Madhucon Projects Limited), a National Highway Authority of India's Road Project.
12:40pm Asian markets update
Asian markets were trading lower in late trade with the Shanghai falling more than 3 percent on profit booking. Hang Seng and Kospi were marginally down while Straits Times and Taiwan were flat.
12:25pm Market Expert
Andrew Holland expects one more round of volatility in global commodity and forex markets in January, and sees that feeding into equity markets everywhere. He sees the Nifty settling around 8300 near term.
In an interview to CNBC-TV18, he says India will not be able to weather the turbulence in global markets unless the government accelerates the pace of economic reforms.
He says lack of any major Bills being passed in this session of Parliament will be viewed negatively by investors, as it will delay the much anticipated recovery in the economy, and by extension, the uptick in corporate earnings.
12:00pm Market Check
The market saw profit booking in noon trade as the equity benchmarks came off the day's high. BSE Midcap and Smallcap indices too gave up all gains to trade flat.
The 30-share BSE Sensex fell 59.89 points to 27641.90 and the 50-share NSE Nifty declined 23.15 points to 8300.85. About 1112 shares have advanced, 1334 shares declined, and 112 shares are unchanged on the Bombay Stock Exchange.
HCL Technologies topped the selling list on Nifty, down 2 percent after the IT major said they expect a cross currency headwind which will impact second quarter revenues by 210 basis points. Another weak trigger for IT majors today was that global banks like UBS, JPMorgan and Goldman Sachs may remove IT allocation from their annual budgets.
Coal India, Sesa Sterlite, Tata Power, DLF, Tata Steel and Hindalco Industries were down 1.5-2 percent while Grasim, Bharti Airtel, Bajaj Auto, Power Grid, UltraTech Cement, HDFC, Hero Motocorp and Mahindra & Mahindra gained 0.8-1.8 percent.
The rupee fell 26 paise to 63.50 a dollar today.
Meanwhile, voters gave a big thumbs up to Modi magic yet again. The BJP is set to form government in Jharkhand and showed a shift in Jammu & Kashmir politics. The PDP was only marginally ahead with BJP a close second in J&K elections.
Globally, Asian markets were mixed in a low volume trade. Brent traded around USD 60 per barrel following a volatile session yesterday.
11:50 am Interview: The businesses around us are undergoing transformation and if a business is under pressure, budgets will get impacted believes, Vineet Nayyar, executive vice chairman, Tech Mahindra.
Nayyar views come on the back of reports that three major global investment banks are likely to remove discretionary IT spending allocation in their budget for 2015.
In a research report, brokerage house Motilal Oswal says: ''(Companies') budgets will be influenced to some degree by the prevailing situation, volatility in which is reflected in fall in commodity prices as well as multiple global currencies v/s the US dollar in recent months. If the situation improves gradually through the course of the year, the velocity and extent of discretionary spending could pick up.''
Nayyar says there is increased automation in the industry to reduce the labour-intensive nature of the work and managements will have to need to work to adapt these changes.
11:30 am Buzzing: Shares of Orchid Chemicals & Pharmaceuticals jumped 4 percent intraday on its fund raising plans to ease out debts. As part of its corporate debt restructuring (CDR) scheme, the company has allotted 1.48 crore shares at Rs 49.79 per share on preferential basis to its promoter group company Orchid Healthcare.
''The board of directors at their meeting held on December 22, 2014 has allotted 1,48,09,801 equity shares of Rs 10 each at Rs 49.79 (including a premium of Rs 39.79 per share) as the first tranche to Orchid Healthcare on preferential basis,'' the company said in a statement.
As part of the CDR package, promoter group firm will pick up stakes to infuse Rs 92.17 crore into the company through preferential allotment of shares. It has around Rs 3,500 crore outstanding debt.
The market continues its gains for the fourth consecutive day with the Nifty surpassing 8350. The Sensex is up 121.17 points at 27822.96 and the Nifty is up 31.20 points at 8355.20. About 1221 shares have advanced, 1010 shares declined, and 86 shares are unchanged.
Bharti, Bajaj Auto, Axis Bank, HDFC and SBI are top gainers in the Sensex.
Banks lead the way today buoyed by RBI tightening rules on non-cooperative borrowers. Additionally banks with insurance arms such as PNB and SBI see further fillip on HDFC's life insurance arm 1 percent stake sale to Azim Premji trust being sold at a premium. Deutsche Bank says the valuation of the deal is 21 percent higher than their valuation of HDFC Life.
Among the losers are Hindalco, Coal India, Sesa Strelite, Wipro and Reliance.
Globally, Asia is mixed in low volume trade. Brent trades around USD 60 per barrel following a volatile session the day before.
10:58am Market Update
The Sensex rose 111.45 points to 27813.24 and the Nifty climbed 29.90 points to 8353.90. About 1213 shares have advanced, 963 shares declined, and 89 shares are unchanged on the BSE.
10:40am Gujarat Pipavav in News
Shares of Gujarat Pipavav Port climbed 3 percent after the company entered into an arrangement with NYK Auto Logistics (India).
As per the agreement, NYK has been sub-leased land for developing a dedicated common user integrated RO-RO yard at Pipavav Port, said the company in its filing.
The RO-RO yard with annual designed capacity for handling 250,000 vehicles will be ready for operations by February 2015, it added.
The company will provide all the port and related facilities to NYK for ensuring smooth and seamless flow of automobile cargo upon commencement of the RO-RO facility.
Port Pipavav is managed and operated by APM Terminals, the ports and terminals company of the maritime giant, the AP Moller-Maersk Group.
10:25am FII View
Rohini Malkani, Citi says after meeting with 50 institutional investors in the US, unsurprisingly, India remains a consensus favorite both as an 'absolute' and 'relative' play due to a trinity of factors i.e. business-friendly Narendra Modi Government, pro-active RBI Governor Rajan; and commodity tailwinds.
''Following a strong market performance in 2014, most investors are of the view that the on-going cyclical and structural upturn could result in India continuing to outperform in 2015, albeit at a modest pace,'' she adds.
10:00am Market Check
Equity benchmarks remained in positive terrain for the fourth consecutive session, especially ahead of Jharkhand and Jammu & Kashmir's elections results. The Sensex rose 110.30 points to 27812.09 and the Nifty climbed 30.65 points to 8354.65.
The BSE Midcap and Smallcap indices gained 0.4 percent and 0.5 percent, respectively. Nearly two shares advanced for every share declining on the Bombay Stock Exchange.
PDP took early lead in Jammu and Kashmir with 23 seats while there was a big lead for BJP in Jharkhand with 36 seats.
Banking and financials stocks continued to see buying interest. HDFC added another 1 percent gain after it decided to sell 0.95 percent stake in HDFC Life to Azim Premji Trust yesterday. Shares of ICICI Bank, Axis Bank, HDFC Bank and State Bank of India advanced 0.4-1.2 percent.
Auto stocks advanced too; Tata Motors, Hero Motocorp, Mahindra & Mahindra, Bajaj Auto and Maruti Suzuki were up 0.4-1 percent whereas Reliance Industries, Dr Reddy's Labs, Hindalco, Sesa Sterlite and Coal India fell 0.6-1.6 percent.
9:50 am Cut in IT budget: Three major global investment banks are likely to remove discretionary IT spending allocation in their budget for 2015, reports CNBC-TV18, quoting unnamed sources. This is the first time that many large global banks are removing IT spend allocation altogether from their budgets
It is learnt that UBS, JP Morgan and Goldman Sachs could be the three banks. UBS and JP Morgan declined to comment, while Goldman Sachs is yet to respond to the CNBC-TV18 query.
Citi is yet to decide on its IT spending budget, but said that it would be allocated on a requirement basis.
None of the abovementioned banks have given out any fresh contracts relating to discretionary spending.
9:40 am Market check: The market has sprung into action as the Sensex is up 125.79 points at 27827.58. The Nifty is up 33.30 points at 8357.30. About 1031 shares have advanced, 486 shares declined, and 54 shares are unchanged.
Axis Bank, Bajaj Auto, Tata Motors, BHEL and Infosys are up 1 percent each. Among the losers are Dr Reddy's Labs, Hindalco, Wipro, Coal India and Reliance.
9:30 am Buzzing: Investors bought huge shares of Mukand after the company decided to transfer special and alloy steel business to its arm via slump sale.
"The board of directors on Monday approved a proposal to transfer its special and alloy steel business as a going concern by way of a slump sale to a subsidiary company for an enterprise value of Rs 1,590 crore," said the alloy and stainless steel long products manufacturer in its filing to the exchange.
The transaction is subject to deduction of debt and net working capital adjustment as on the date of transfer. The net consideration will be paid in cash by the subsidiary, it added.
The steel and alloy business has an installed capacity of 3.7 lakh million tonne per annum.
After the rally seen on Monday, the market has opened flat today. The Sensex is up 8.16 points at 27709.95 and the Nifty is up 0.60 points at 8324.60. About 386 shares have advanced, 191 shares declined, and 33 shares are unchanged.
M&M, NTPC, Tata Motors, Bharti Airtel and Coal India are top gainers in the Sensex. Among the losers are Dr Reddy's Labs, HDFC Bank, Sun Pharma, Sesa Sterlite and Hindalco.
The market is keenly watching poll results as counting of votes for the 81-member Jharkhand Assembly began in 24 centres across the state today amid tight security. Counting of votes for the 87-member Jammu and Kashmir Legislative Assembly has also begun in early morning.
The Indian rupee opened marginally lower at 63.30 per dollar against the previous closing of 63.25. The dollar holds firm, having risen to its highest level in nearly nine years against a basket of major currencies, driven in part by persistent weakness in the euro and a fresh fall in the yen.
Ashutosh Raina of HDFC Bank said, "The upward march of USD continues amid thin trading in holiday season. The revival of risk appetite helped global equity markets end higher, with dollar broadly firm on divergent yield outlook."
Globally, US markets ended higher leading the Dow and the S&P 500 to record finishes. European markets too closed with gains with the sentiment boosted by a rebound in the Russian ruble. Asian markets are positive.
In other asset classes, crude prices declined, with Brent Crude down 2 percent to USD 60 per barrel after Saudi Arabia's Oil Minister said OPEC would not cut production at any price. Gold slipped below USD 1180 an ounce and silver slid 3 percent after US existing home sales fell to a six-month low, and as oil prices eased back.