Sensex, Nifty end flat; Bharti Airtel up 3%, NTPC falls 1%
01 January 2015
03:30 pm Market close The market has ended a flat note on 2015. The Sensex ended up 8.12 points at 27507.54 and the Nifty was up 1.30 points at 8284. About 1843 shares have advanced, 989 shares declined, and 976 shares were unchanged. Bharti Airtel, Sesa Sterlite, BHEL, Tata Steel and Bajaj Auto are top gainers in the Sensex while NTPC, Dr Reddy's Labs, Coal India, HDFC and GAIL.
03:10 pm RBI warning The Reserve Bank of India (RBI) cautioned investors against multi-level marketing firms that promise high returns and run on hefty member susbscription fees, warning such offers could result in direct financial losses.
Multilevel marketing structures work on the principle of enrolling more members and a part of the subscription amount is distributed among members at the top of the marketing pyramid. "Any break in the chain leads to the collapse of the pyramid, and the members lower down in the pyramid are the ones that are affected the most," the RBI said in a circular.
02:50pm Jet Airways, SpiceJet up 5-8% Jet fuel (aviation turbine fuel) rates today slashed by Rs 7,520.52 per kilolitre, or 12.5 percent, to Rs 52,422.92 per kl, the sixth straight reduction in prices since August, as international oil prices slumped to five-year low levels. This is the possibly the steepest cut in rates since ATF pricing was deregulated or freed in April 2002.
The cut, effective today, is the sixth reduction in jet fuel rates since August. The price was last cut by 4.1 percent, or Rs 2,594.93 per kl, on December 1. Brent crude, a pricing benchmark for more than half of the world's oil, sank 48 percent in 2014 as US producers and the Organization of Petroleum Exporting Countries (OPEC) ceded no ground in their battle for market share amid a supply glut. Brent fell to USD 57.33 a barrel, the lowest since May 2009. ATF rates now are at their lowest level since February 2011, reports PTI.
02:25pm Interview Century Plyboard is hopeful of achieving the 25 percent revenue guidance for FY15, said Sajjan Bhajjanka, managing director in an interview to CNBC-TV18. According to him, the company in H1FY15 has already achieved the performance of FY14 and so expects to double its net margins to around 10 percent compared to last year. EBITDA margins for FY15 would be around 15-16 percent, said Bhajjanka. On pricing front, he does not envisage any price hikes because the price of wood has been stable compared to that of last year.
02:00pm Market Check The market remained in a tight range with the Nifty consolidating near 8,270 level. The Sensex fell 26.68 points to 27472.74 and the Nifty declined 9.50 points to 8273.20. The broader markets continued to outperform frontline indices with the BSE Midcap and Smallcap indices rising 0.6 percent and 1.1 percent, respectively. Nearly two shares advanced for every share declining on the Bombay Stock Exchange. Prashant Jain of HDFC Asset Management says, "We cannot expect gains in 2015 to be more than 2014 but expect equities to outperform other asset classes in the long term.
" He is optimistic on the economic recovery, saying India is one of the few countries where interest rates will come down. Bharti Airtel and Sesa Sterlite topped the buying list, up 1.8 percent each followed by SBI, L&T, ONGC, BHEL, Tata Steel and Cipla with 0.4-1 percent gain whereas HDFC, ITC, HDFC Bank, Reliance Industries, Dr Reddy's Labs, NTPC and HUL fell 0.4-1 percent. A day after data showed that coal output grew by 14.5 percent in November, coal secretary, Anil Swarup told CNBC-TV18 that Coal India's output is expected to grow by 10 percent in 2015 at 507 million tonnes.
For over a decade now, Coal India's output has been rising by less than 5 percent a year. Swarup said arrangements are in place to despatch all these 507 million tonnes. Maruti Suzuki posted strong numbers in December, slightly better-than-expected as sales for Ciaz Cnd celerio led to good overall growth. Sales grew by 20.8 percent year-on-year to 1.09 lakh units in December. Eicher Motors too posted a good sales in December, total commercial vehicle sales rising 20.7 percent to 3,387 units (Y-o-Y). The rupee weakened marginally to 63.32 versus a close of 63 a dollar yesterday. Dealers said increased demand for the dollar from importers and a lower opening in the domestic equity market would weigh on the rupee.
1:50 pm Macro economy: Fiscal deficit for the current year may be slightly higher than the targeted 4.1 percent, says Soumya Kanti Ghosh, ?Chief Economic Advisor at State Bank of India. In an interview with CNBC-TV18, Ghosh says the overshooting will be because of the slippages on the revenue front.
The fiscal deficit has already hit 99 percent of the current year till Novemmber, and there would be further slippages ahead, he says. According to Ghosh, gross tax revenues have been good, but net tax revenue have been disappointing. He expects the index of industrial production for December to be better than the preceding months.
1:30 pm 2015 Outlook: Returns from equity investments in 2015 are unlikely to be as great as those in 2014, feels Prashant Jain, ED & Chief Investment Officer, HDFC Asset Management. That is because the market has already priced in much of the expected improvement in macro fundamentals and corporate earnings. In an interview with CNBC-TV18, he says the Indian market is still not overvalued, but one will have to be patient with a 2-3 year investment horizon to reap the gains hereon. He says 'fast money' among foreign institutional investors may have exited, but the 'patient' money is still invested.
The market is still sluggish as the Sensex is down 59.82 points at 27439.60. The Nifty down 19.70 points at 8263. About 1581 shares have advanced, 943 shares declined, and 1283 shares are unchanged. Sesa Sterlite, Bharti Airtel, BHEL, Tata Steel and Maruti are top gainers in the Sensex. Among the losers are HDFC, Coal India, NTPC, Dr Reddy's and GAIL.
The Nifty ended 2014 with a 31.4 percent gain, and analysts expect the momentum to sustain this year on hopes the government will announce more economic reforms and the Reserve Bank of India will soon start cutting interest rates. Overseas investors, who invested USD 16.1 million in Indian shares in 2014, continue their buying spree.
They bought Indian shares worth Rs 480 crore on Wednesday, according to provisional exchange data. Oil prices have collapsed this year as the Organization of the Petroleum Exporting Countries opted to maintain the same level of output despite a global glut caused by expanding U.S. shale output and diminished demand growth from China.
12:55pm LPG price cut The government slashed non-subsidised LPG price by Rs 43.50 per cylinder and also cut Jet fuel price by 12.5 percent today. Moreover, PSU oil marketing companies' under-recovery for April-September FY15 stood at Rs 51,110 crore. Kerosene under-recovery for January 1-15 is seen at Rs 19.46 per litre and LPG under-recovery for the same period is expected to be at Rs 235.91/cylinder," said the government.
12:40pm Madhucon Projects in News "Simhapuri Energy, one of the step down subsidiaries of the company, synchronized with grid of its second unit (1X150MW) of the phase II on December 30, 2014 at 14.57 hours," said Madhucon Projects in its filing to the exchange. The second unit was delayed by a month as it was planned to be synchronised on November 30, 2014.
In the phase II, the first unit has been under commercial operation, which was synchronised on January 1, 2014 and its commercial operation date was February 26. Its two units each of 150 MW of phase I were operational since May 4 and July 15, 2012, respectively. Simhapuri Energy aims to set up power generation capacity of 5,000 MW by the year 2015 and 15,000 MW by year 2020 with resources on its own and through its subsidiaries.
12:20pm PNB denies merger In a clarification note to the exchange with respect to news article appearing in the newspaper today titled "Merger threat hangs over Andhra Bank", Punjab National Bank said, "We have to inform that no such development is in the knowledge of the management of our bank."
12:00pm Market Check Equity benchmarks trimmed losses amid consolidation in noon trade today but the rupee extended fall, losing 27 paise to 63.30 a dollar. The Sensex fell 14.11 points to 27485.31 and the Nifty declined 5.50 points to 8277.20 while the BSE Midcap and Smallcap indices gained 0.6 percent and 1 percent, respectively.
The market breadth was positive as about 1508 shares have advanced and 808 shares declined on the Bombay Stock Exchange. Prashant Jain of HDFC Asset Management says the firm can not expect gains from equities in 2015 to be more than 2014 but expects equities to outperform other asset classes in the long term. He is optimistic on the economic recovery, saying India is one of the few countries where interest rates will come down.
A day after data showed that coal output grew by 14.5 percent in November, coal secretary, Anil Swarup told CNBC-TV18 that Coal India's output is expected to grow by 10 percent this year at 507 million tons. For over a decade now, Coal India's output has been rising by less than 5 percent a year. Swarup said arrangements are in place to despatch all these 507 million tons.
Auto stocks remained in focus today ahead of sales numbers for the month of December. Maruti Suzuki posted strong numbers, slightly better-than-expected as sales for Ciaz and Celerio led to good overall growth. Andhra Bank gained 4 percent on reports that the bank is a probable candidate for a merger with Bank of Baroda or PNB.
However, the management told CNBC-TV18 recently that their capital requirement from the government reduced to Rs 200-300 crore versus Rs 800 crore earlier. They're not sure if consolidation is a part of the upcoming 2-day discussion in Pune. Aban Offshore, Force Motors, BF Utilities, Gati, Andhra Bank, SBI and Infosys were the most active shares on exchanges.
11:55 am Buzzing: Shares of Glenmark Pharma jumped over 2 percent intraday. The drug company has received shareholders' nod to raise up to USD 300 million through issue of securities. The company has said its proposal to issue securities not exceeding USD 300 million was approved by with 96.07 percent votes in favour through postal ballot. Shareholders also approved hiking the shareholding limit for foreign institutional investors (FIIs)/RFPIs from 40 percent up to an aggregate limit of 49 percent of the paid up share capital of the company, it added.
11:40 am New year, new name: The Planning Commission, which was established in 1950, will be called 'Neeti Ayog' in its new avatar, months after Prime Minister Narendra Modi announced that it will replaced by a new body.
The decision comes nearly three weeks after Modi held consultations with chief ministers at a meeting where most favoured restructuring of the Socialist-era body but some Congress Chief Ministers opposed disbanding of the existing set-up. Modi had announced in his Independence Day speech that the Planning Commission would be replaced by a new body which is in sync with the contemporary economic world.
11:30 am Buzzing: Investors lapped up shares of Kalpataru Power Transmission (KPTL) bagging new orders worth about Rs 560 crore. The stock gained more than 8 percent to touch a five-year high of Rs 233.25 on the Bombay Stock Exchange. It received two contracts from Power Grid Corporation of India. The first order valued at Rs 237 crore was related to two transmission lines (in Kargil) and the second order valued at Rs 190 crore was for supply, erection and commissioning of three transmission lines of 400 KV near Agra. Besides, the company also got a pipeline laying project worth Rs 132 crore from Indian Oil Corporation.
The market is still struggling to get out from red. the Sensex is down 34.25 points at 27465.17 and the Nifty down 13.55 points at 8269.15. About 1426 shares have advanced, 684 shares declined, and 1697 shares are unchanged. Sesa Sterlite, Cipla, Tata Steel, BHEL and Maruti are top gainers while HDFC, NTPC, Coal India, Dr Reddy's Labs and GAIL are among losers in the Sensex.
Auto stocks are in focus ahead of auto sales numbers for the month of December to be released today. The overall view is that demand in 2-wheelers is weak and in passenger cars new launches like Maruti Ciaz, Tata Zest saw a good response. From other asset classes the rupee weakens on broad dollar gains. The dollar ended 2014 with nearly 13 percent gains the strongest since 1997. Government bonds are higher for the fourth consecutive session tracking lower crude prices and on continued hopes of early rate cut.
10:40am Kalpataru Power shares in demand Kalpataru Power Transmission (KPTL) bagged new orders worth about Rs 560 crore. It got contracts valued at nearly Rs 237 crore related to two transmission lines from Power Grid Corporation, according to a filing to the BSE.
Another order, valued at more than Rs 190 crore, is for supply, erection and commissioning of three transmission lines nearly Agra. Besides, the company has been awarded a pipeline laying project worth Rs 132 crore by Indian Oil Corporation.
"We have gained good traction in domestic business in both transmission line and pipeline laying segments and are expecting improved order inflow from both domestic and international business in the last quarter of the year," KPTL's Managing Director Ranjit Singh said, reports PTI.
10:20am Market Expert Saurabh Mukherjea, Ambit Capital says neither GDP growth nor earnings growth has any meaningful relationship with the investment returns generated by the Sensex. ''Instead, these investment returns seem to respond to three very different sets of dynamics like reversion to the mean, the political-economic cycle in India and the US monetary policy cycle,'' he adds. ''Seen against these three set of 'stories', the Sensex looks relatively well placed as we enter 2015. We reiterate our FY16-end Sensex target of 36,000,'' says Mukherjea.
10:00am Market Check The market continued to trade lower on mild profit booking on the very first day of the year 2015. The Sensex fell 47.59 points to 27451.83 and the Nifty declined 14.60 points to 8268.10 while the broader markets outperformed frontline indices. The BSE Midcap and Smallcap indices gained 0.5 percent each. About two shares advanced for every share declining on the Bombay Stock Exchange.
The Nifty is expected to oscillate between 7,600 on the downside and 9,500 on the upside, according to Amit Gupta of ICICI Direct. Gupta told CNBC-TV18 that any panic during the year should be bought into, pointing out that the Indian economy is expected to remain resilient even in the face of global troubles, as can be seen from the rupee's relative strength in 2014.
Shares of HDFC, Reliance Industries, HDFC Bank, ITC, ICICI Bank, Infosys, NTPC, Dr Reddy's Labs, Coal India, Sesa Sterlite, Hindalco Industries and HUL were down 0.3-1 percent. However, SBI, Cipla, Maruti Suzuki, Sun Pharma, BHEL and Tata Power bucked the trend, gaining 0.3-1 percent. Among midcaps, DB Realty, Clariant Chemicals, Rajesh Exports, Muthoot Finance and Andhra Bank surged 6-12 percent whereas Tilak Finance, PMC Fincorp, Gujarat Pipavav, StanChart IDR and Kirloskar Oil fell 2-10 percent. The Indian rupee was under pressure, falling 22 paise to 63.25 a dollar.
9:50 am Global markets performance in 2014: China and the United States headed the list of 2014 top-performing equity markets among larger economies while markets elsewhere ended the year on a wary note as another sharp drop in oil and worries about Greece's future drove profit-taking. European stocks wrapped up the year 4 percent higher overall, though there were some striking exceptions, such as near-30 percent losses for debt-strained Greece and Portugal.
The stand-out equity performer among top economies this year was China, where the CSI300 index ended 2014 with gains of 52 percent. The index added more than 25 percent in December alone, its best month since April 2007, in part as foreigners won wider access to Chinese stocks.
9:30 am Market outlook: With the key benchmark indexes notching up a near 30 percent gain in 2014, share prices increases, at least for the frontline stocks, may be rather difficult to come by this year, believes market analyst Ambareesh Baliga. In an interview to CNBC-TV18, Baliga, however, said that while the overall market may consolidate, there will be opportunities in the ''India-building'' core sectors such as cement, steel, power or even the banking space.
The Nifty, meanwhile, is expected to oscillate between 7,600 on the downside and 9,500 on the upside, according to Amit Gupta of ICICI Direct. Gupta told CNBC-TV18 that any panic during the year should be bought into, pointing out that the Indian economy is expected to remain resilient even in the face of global troubles, as can be seen from the rupee's relative strength in 2014.
The market kickstarts 2015 in red. The Sensex is down 47.25 points at 27452.17 and the Nifty is down 9.90 points at 8272.80. About 295 shares have advanced, 210 shares declined, and 3302 shares are unchanged. M&M, Bharti, Airtel, BHEL and ICICI Bank are gainers while GAIL, Tata Motors, Sesa and Reliance are laggards. The Indian rupee opened lower by 14 paise at 63.17 per dollar against 63.03 Wednesday. Indian rupee on Wednesday appreciated by 35 paise to end at two-week high of 63.03 against the greenback tracking firm equities and sustained dollar selling by exporters, but lost ground on an annual basis for the fourth year in a row.
The rupee depreciated by 123 paise or 1.99 percent, in calendar year 2014. It had closed at 61.80 against dollar in 2013. US stocks fell on Wednesday as crude oil prices continued their descent, but the S&P closed out a third straight year of double-digit gains. For the year, the Dow ended up 7.5 percent, notching its sixth straight annual gain, and the Nasdaq rose 13.4 percent. The best-performing S&P component in 2014 was Southwest Airlines Co up 124.6 percent, while Transocean Ltd, down 62.9 percent, was the worst. Equities lost steam heading into the New Year after rallying nearly 6 percent over eight sessions, sparked by the US Federal Reserve's commitment to be "patient" about raising interest rates and positive economic data.