Sensex up 273 points, Nifty ends above 8800 for 1st time ever
23 January 2015
03:30pm Market Closing
The market rallied for the seventh consecutive session on Friday, spiking nearly 2000 points on the Sensex (in seven days). The Sensex today gained 272.82 points or 0.94 percent at 29278.84 and the Nifty jumped 60.15 points or 0.69 percent to 8821.55 on ECB stimulus.
About 1140 shares have advanced, 1803 shares declined, and 253 shares are unchanged on the BSE.
Tata Power saw huge buying interest in late trade, up nearly 7 percent. Tata Motors and Bharti Airtel rallied close to 4 percent. DLF spiked 5.5 percent, and Cairn India jumped over 4 percent on rise in crude oil prices.
Cipla, L&T, HDFC Bank, HUL, M&M and Sesa Sterlite gained 2-3 percent whereas PNB, GAIL, BHEL, HCL Technologies and ONGC were down 1-2.7 percent.
03:15pm Atul under pressure
Atul has registered a 17.6 percent drop in its third quarter net profit at Rs 53.7 crore against Rs 65.2 crore in the same quarter last year. The stock lost 5 percent.
Net sales of the chemical company were up 7.2 percent at Rs 617.2 crore versus Rs 575.8 crore during the same period
Operating profit grew 20 percent to Rs 84 crore from Rs 65 crore and margin jumped 150 bps to 13.7 percent versus 12.2 percent on yearly basis. Its other income was down at Rs 4 crore versus Rs 20 crore.
03:00pm Market Update
The market extended gains as the Sensex surged 294.44 points or 1.02 percent to 29300.46 and the Nifty climbed 77.65 points or 0.89 percent to 8839.05.
Tata Power topped the buying list, up 7 percent followed by Tata Motors and Bharti Airtel with 4 percent rally. HDFC Bank, L&T, HUL, M&M and Cipla surged 2-3 percent.
Johnson Controls and Hitachi, and Hitachi Appliances Inc., has signed an agreement to form a heating, ventilation, and air conditioning (HAVC) joint venture (JV).
Speaking about the JV, Gurmeet Singh, Executive Director-Sales, Marketing & BP, Hitachi Home & Life Solutions said 100 percent of the HHIL business would be incorporated in the global Joint venture.
The JV will benefit both Johnson Controls and Hitachi with each other sharing their expertise because each manufactures different products, said Singh.
Citing no further clarity, he declined to comment on whether HHIL would go through on open offer or would be delisted.
The JV he said is likely to be formalised by the end of 2015.
02:00pm Market Check
The market continued its upward momentum in afternoon trade as the ECB's 1.1 trillion euro quantitative easing program helped frontline indices trade nearly a percent higher, though there is profit taking at higher levels. Bank Nifty traded above 20,000 for the first time, up 158 points at 20,075.
The 30-share BSE Sensex advanced 253.02 points to 29259.04 and the 50-share NSE Nifty rose 67.65 points to 8829.05. The market breadth remained negative as about 1061 shares advanced and 1767 shares declined on the Bombay Stock Exchange.
Saurabh Mukherjea of Ambit says global cues may not be uniformly positive. A majority for the anti-austerity Syriza party in the Greek elections over the weekend can hurt sentiment. But Ambit maintains its 30,000 Sensex target by March 2015 and 36,000 by March 2016.
European markets remained firm as France's CAC and Germany's DAX climbed over a percent on ECB stimulus. Britain's FTSE gained 0.6 percent while Asian markets closed higher with the Japan rising to a near three week highs and the Kospi climbing to 4-week highs. Brent crude oil prices recovered marginally as news of the death of Saudi Arabia's king Abdullah added to uncertainty in energy markets.
The rupee appreciated against the dollar, up 19 paise to 61.50 on dollar selling by exporters amid sustained capital inflows. Soaring domestic equity markets also supported the rupee.
01:25pm FII View
Hans Goetti, Head of Investment Asia, Banque Internationale says Indian market is a story that is on the verge of being rerated. In that context, it will remain the favourite of foreign institutional investors for the next two-three years.
While he believes commodities are unlikely to make a comeback into a bull market, gold may be bottoming out. "Gold is likely to be building a base and may trend higher in H2FY15." He sees the emerging markets rallying despite a strong dollar.
01:00pm Market Check
The market rallied for the seventh consecutive trading session today aided by ECB stimulus announced yesterday evening. The Sensex surged more than 2000 points in seven days.
Sachin Shah of Emkay Investment Managers believes the undertone for the market is still buoyant. According to him, with the overall macros starting to show signs of improvement, and no major disappointment from earnings so far, has drawn FII flows into India.
There have been inflows to the tune of about USD 4 million into equity and debt just in the month of January, he adds.
The Sensex jumped 244.75 points to 29250.77 and the Nifty climbed 61.75 points to 8823.15 today. However, the broader markets remained under pressure as the BSE Midcap and Smallcap indices declined marginally. About 1062 shares have advanced, 1697 shares declined, and 250 shares are unchanged on the Bombay Stock Exchange.
Telecom operator Bharti Airtel spiked 4 percent. HDFC Bank, L&T, Tata Motors, HDFC, M&M, SBI, HUL, Tata Power, Sesa Sterlite and NTPC gained 1-3 percent while Infosys, TCS, GAIL, BHEL and Coal India declined 0.5-1.7 percent.
Indian markets will remain shut on Monday for Republic day.
European markets opened higher following stimulus of over one trillion euros announced by the European Central Bank yesterday.
12:30pm Divestment next week
India is likely to sell a 5 percent stake in state-run Power Finance Corporation Ltd next week, a finance ministry source said, as the government scrambles to meet part of a near USD 10 billion share sale target before March 31.
"Five percent shares of PFC could be sold next week," a senior finance ministry official, who declined to be named as he was not authorised to speak to the media, told Reuters.
He also said that state-run manganese miner MOIL Ltd could be the next in line with a 10 percent stake sale.
12:00pm Market Check
The market maintained its morning gains supported largely by banking & financials, FMCG, auto and metals stocks. The 30-share BSE Sensex surged 211.40 points to 29217.42 and the 50-share NSE Nifty jumped 53.20 points to 8814.60, rising for the seventh consecutive session today amid positive global cues.
The broader markets erased all early gains; the BSE Midcap and Smallcap indices declined 0.3 percent and 0.7 percent, respectively. About two shares declined for every share advancing on the Bombay Stock Exchange.
Asian markets responded positively to the European central Bank's decision of unleashing 1 trillion euro stimulus package. Hang Seng, Nikkei, Straits Times and Taiwan Weighted gained more than a percent whereas Shanghai came off day's high, up 0.3 percent as China's manufacturing activity remained in contraction for a second straight month.
Brent crude oil prices recovered marginally as news of the death of Saudi Arabia's king Abdullah added to uncertainty in energy markets, up 94 cents to USD 49.46 a barrel.
The rupee traded near 10-week highs as the European Central Bank's stimulus announcement drives foreign fund flows into equities. The euro, however, continued to hover near 11-year lows, which dipped to 1.13 against the dollar after the ECB decision was announced.
Bharti Airtel topped the buying list on Sensex, up 4 percent followed by HDFC Bank, L&T, Tata Motors, HDFC, M&M, HUL and Sesa Sterlite with 1-3 percent upside. GAIL and BHEL dropped 1-2 percent. TCS, Infosys and Coal India fell 0.3-0.7 percent.
Ipca Labs lost 8 percent in an otherwise strong market, reacting to the USFDA converting its form 483 or observations on the company's Ratlam facility into an import alert. The management says four APIs have been excluded from the import alert and the comapny has decided to temporarily suspend API shipments from Ratlam.
11:30am Crude gains ground
Oil prices surged today following the death of Saudi Arabia's King Abdullah, with investors watching to see if the country will change its policy of maintaining high production in the face of plunging prices and a global supply glut.
US benchmark West Texas Intermediate (WTI) for March delivery soared as much as 3.1 percent in New York after the Saudi royal court announced the death. In Asian trade, the contract was up USD 73 cents, or 1.58 percent, at USD 47.04 a barrel.
Brent crude for March jumped USD 1.09, or 2.25 percent, to USD 49.61.
The surge in prices comes after months of steep falls caused by weak global demand, an oversupply of the black gold and a refusal by the OPEC cartel, of which Saudi Arabia is a key member, to cut down on output.
11:00am Market Check
The market continued to defy gravity extending their gains for the seventh consecutive session. However, now that came off the day's high. Gains fueled by the Bank nifty which traded above 20,000.
The 30-share BSE Sensex rose 200.43 points to 29206.45 and the 50-share NSE Nifty jumped 44.70 points to 8806.10. Nearly two shares declined for every share advancing on the Bombay Stock Exchange.
The CNX Midcap index traded above 13000, but now gave up early morning gains. The rupee rose to a 10-week high, up 20 paise to 61.49 a dollar.
Globally, Asian markets responded positively to the European Central Bank's decision of unleashing 1 trillion euros stimulus package. Japan rose to near three-week highs with the Kospi at 4-week highs. The euro continued to hover near 11-year lows while the dollar continued its strength, trading at the best levels since September 2003.
From Nifty stocks, HDFC deserved mention as it put on another 2 percent gains, which rallied 11 percent at current reckoning on a week to date basis.
HDFC Bank, Larsen & Toubro, Tata Motors, Bharti Airtel and Mahindra & Mahindra gained 2-3 percent whereas GAIL lost 2 percent followed by Infosys, TCS, Reliance Industries, Axis Bank, BHEL, Hindalco, Coal India and Tata Steel with marginal loss.
Cairn India is in focus, reacting to its Q3 earnings, wherein profit dipped over 40 percent Q-o-Q, which was a larger than expected decline due to higher depreciation and tax rates. The stock, however, is cushioned by crude that saw a slight bounce back today.
Ipca Labs tanked 7 percent, reacting to the USFDA converting its form 483 or observations on the company's Ratlam facility into an import alert. The impact, however, is limited as three drugs have excluded from the import alert and because Ipca had already voluntarily stopped supplies to the US from the plant.
Biocon declined 3 percent as revenue was up 9 percent with EBITDA margins falling to 15 percent from 24 percent Y-o-Y mainly due to higher R&D costs. Separately the board approved the initiation of the listing process of Syngene.
Polaris fell 7 percent on weak set of earnings.
10:40am Market Update
The Sensex trimmed gains, up 248.91 points at 29254.93. The Nifty held 8800 level, up 58.75 points at 8820.15. However, the broader markets underperformed frontline indices as the BSE Midcap and Smallcap indices fell 0.4 percent and 0.6 percent, respectively.
Even the market breadth turned in favour of declines. About 890 shares have advanced while 1353 shares declined on the Bombay Stock Exchange.
Infosys, Axis Bank, Maruti Suzuki, Reliance Industries, Coal India, Hindalco Industries, TCS and ONGC slipped into red. GAIL fell nearly 2 percent.
10:25am Market Outlook
The global environment is likely to get choppy in the coming months, and investors should not get exuberant because of the stimulus package announced by the ECB, says Saurabh Mukherjea of Ambit Capital.
The Greek elections will be one of the closely watched events, and Mukherjea says there is a good chance of an anti-Euro party coming to power.
But more important to market sentiment will be the events unfolding in China in the coming months, he said in an interview to CNBC-TV18.
Mukherjea sees the slowdown in China could triggering a devaluation of its currency yuan and even leading to it getting 'unhooked' from the dollar peg.
A devaluation in China could have spillover effects and lead to volatility in the currency markets, which in turn will have repercussions for the stock markets as well.
China's Purchasing Manager Index (PMI) for manufacturing falling below 50 will be a sign of trouble not just for China, but also for the global economy, he says.
On India, Mukherjea says he expects the Sensex to touch 30,000 by March this year and 36,000 by March next year.
10:00am Market Check
The market remained strong, though there is some profit booking at higher levels. However, the broader markets underperformed benchmarks. Banking & financials and auto stocks led the market higher.
The Sensex climbed 313.53 points or 1.08 percent to 29319.55 and the Nifty jumped 83.15 points or 0.95 percent to 8844.55 whereas the BSE Midcap and Smallcap indices traded flat.
According to Deven Choksey of KR Choksey Securities, the market is likely to see both liquidity and volatility, and India is likely to see more fund flows on back of promises made by the government. ''India will remain the centre point of focus", he adds.
Nifty, he says would reconsolidate between 8400-9000 and should not break above 9000 in a hurry but move up in a staggered manner.
Housing finance company HDFC extended rally, up more than 4 percent by topping the buying list on the Sensex. Tata Motors, Larsen & Toubro and Sun Pharma rallied 2 percent each.
HDFC Bank, ICICI Bank, State Bank of India, Mahindra & Mahindra, Bharti Airtel, Cipla and Hero Motocorp gained 1-1.8 percent whereas GAIL topped the selling list, down 1 percent followed by Infosys and Dr Reddy's Labs with marginal losses.
09:35am FII View on ECB
Andrew Garthwaite, Credit Suisse believes that although quantitative easing (QE) by the European Central Bank (ECB) is likely to be less effective than it was in the US and UK, it will be more effective than investors believe.
"We think the key transmission mechanisms are the exchange rate, fall in bond yields, re-valuing property, the fall in SME lending rates in the periphery and ultimately more securitisation. When QE does end, sovereign credit risks could become an issue. This is part of the reason we downgrade peripheral equities," he adds.
09:15am Market Check
The market gained more than a percent in early trade on Friday following stimulus package announced by European Central Bank yesterday evening.
The 50-share NSE Nifty surpassed 8800 level for the first time, up 93.30 points to 8854.70 and the 30-share BSE Sensex rallied 364.49 points to 29370.51. However, the broader markets underperformed benchmarks as the BSE Midcap and Smallcap indices gained 0.5 percent each.
Nearly three shares advanced for every share declining on the Bombay Stock Exchange.
European Central Bank's Mario Draghi announced a bond-buying programme worth over one trillion euros to stave off the deflation threat. The purchases will start on March this year and will last till September 2016.
Global markets cheered the ECB stimulus program with Asian markets trading higher. US stocks climbed on Thursday, extending gains into a fourth session, after the ECB expanded stimulus and as companies posted upbeat quarterly earnings. The CBOE volatility index fell 13 percent to 16.40.
European equities too closed with gains of over 1 percent. The euro, however, slipped to an 11-year low.
Back home, the rally was largely led by banking & financials stocks. Housing finance company HDFC climbed over 2 percent while banking majors ICICI Bank, State Bank of India and Axis Bank climbed 1-2 percent. Rival HDFC Bank gained 0.6 percent.
Tata Motors, which owns subsidiary in UK - Jaguar Land Rover, spiked 3 percent after the ECB move. Among others, ITC, L&T, Sun Pharma, Bharti Airtel, Wipro, M&M, Maruti, Hero Motocorp, Bajaj Auto, Tata Steel and Hindalco Industries jumped 1-1.6 percent.
However, GAIL was the only loser on the Sensex 30, down 0.8 percent.
The Indian rupee gained in the early trade today. It has opened higher 26 paise at 61.44 per dollar versus 61.70 Thursday.
Pramit Brahmbhatt of Veracity said, "Constant flow of FIIs, positive sentiment in the market and the ECB stimulus now will help local equities to trade at all-time highs. Taking cues from positive equities, the rupee is expected to appreciate. We expect the rupee to trade in a range of 61.20-62.20/dollar today."
In other asset classes, Nymex crude futures jumped around USD 1 after Saudi Arabia announced news that King Abdullah had died. Brent was trading around USD 49.
From the precious metals space, gold prices rise above USD 1300 dollars an ounce post the ECB decision as gold is usually seen as a hedge against inflationary concerns.