Nifty retains 8250, Sensex consolidates; SBI gains 2%

After a volatile week, the market has consolidated on Friday. The Nifty held around 8250-level firmly with support from IT, auto, pharma and FMCG stocks. The 50-share index ended at 8262.35, up 38.15 points or 0.5 percent while the Sensex was up 117.94 points or 0.4 percent at 27324. According to Ridham Desai, Managing Director, Morgan Stanley, 8000 is a good level for the Nifty. However, he continues to maintain his year-end Sensex target at 32500. He says macros and data points in India have improved in the last few months. Desai continues to remain bullish on equities and says the correction has given a good entry point to investors. He says the Indian market is still in a bull phase and the ongoing correction is a part of the bull market correction.

Asian shares were higher ahead of US data later in the session, which is expected to give clues on the timing of an interest rate hike by the US Federal Reserve.

Europe also followed Asia as bond-market jitters eased after a rollercoaster unwind of bets linked to the European Central Bank's stimulus plan. European bond yields were down across the board and top shares were in positive territory with traders pointing to a calmer end to the week after the Ascension Day holiday on Thursday and recent jumps in German yields.

For the whole week, Sensex was up 0.8 percent, Nifty gained 0.9 percent while Bank Nifty surged 2.1 percent. Midcap stocks outperformed with the index rallying 3.5 percent.

Buzzing
SBI was most favoured stock of the day as it gained 2 percent. Bharti Airtel, HDFC, M&M and Infosys were other gainers in the Sensex. Vedanta, NTPC, Coal India, GAIL and Tata Power were major losers. About 1451 shares have advanced, 1239 shares declined, and 166 shares are unchanged.

Shares of Tata Steel slipped 3 percent intraday. Investors are concerned as it will provide a non-cash write down of goodwill and assets amounting to Rs 5000 crore which will reflect in its forthcoming FY15 results. This impairment pertains to the long products UK business in Tata Steel Europe. However, brokerages say the weakness gives best opportunity to buy.

Among the midcaps, Jubilant Foodworks saw a whopping rise of 12 percent driven by March quarter results. Same-store-sales growth (SSSG) was at 6.6 percent and analysts feel this is likely to grow further.

3:30 pm Market close: The Sensex is up 117.94 points at 27324.00 and the Nifty is up 38.15 points at 8262.35. About 1451 shares have advanced, 1239 shares declined, and 166 shares are unchanged. SBI, Bharti Airtel and HDFC ended with 2 percent. M&M and Infosys were top gainers in the Sensex. Among the losers were Vedanta, NTPC, Coal India, GAIL and Tata Power.

2:50 pm Result: Leading commodity bourse MCX reported 12.68 percent increase in its consolidated net profit at Rs 49.30 crore for the quarter ended March 31.

The exchange had posted a net profit of Rs 43.75 crore in the same period in the previous fiscal. Net income declined to Rs 58.97 crore in the fourth quarter of the 2014-15 fiscal from Rs 63.95 crore in the year-ago period, MCX said in a BSE filing.

The total expenses were slightly lower at Rs 31.93 crore compared with Rs 32.91 crore, while finance costs remained in negative for the period under the review.

However for the full year, MCX reported 18 percent fall in its consolidated net profit at Rs 125.05 crore as against Rs 152.76 crore in last fiscal. Total income decreased by 24 percent to Rs 332.27 crore from Rs 439.94 crore in the said period.

2:30 pm Buzzing: Shares of Tata Steel slipped 3 percent intraday on Friday. Investors are concerned as it will provide a non-cash write down of goodwill and assets amounting to Rs 5000 crore which will reflect in its forthcoming FY15 results. This impairment pertains to the long products UK business in Tata Steel Europe.

JP Morgan is not surprised by this decision and believes the recent rally in the stock should not be impacted by the non-cash impairment, though there may be more kitchen sinking in Q4.

Citi says that post the impairment net debt to equity ratio would rise to 2 times versus 1.7 times earlier but also notes that the financial covenants will not be affected by these write-downs.

However, Morgan Stanley still remains overweight stating any weakness in the stock is an opportunity to build positions.

The Sensex is up 144.85 points at 27350.91 and the Nifty is up 42.50 points at 8266.70. About 1486 shares have advanced, 1054 shares declined, and 183 shares are unchanged.

Banks, infra, auto and FMCG stocks support benchmark indices. SBI, HDFC, M&M, Bharti Airtel and Axis Bank are top gainers in the Sensex. Among the losers are NTPC, Vedanta, Coal India, Tata Steel and GAIL.

According to Ridham Desai, Managing Director, Morgan Stanley, 8000 is a good level for the Nifty. However, he continues to maintain his year-end Sensex target at 32500. He says macros and data points in India have improved in the last few months.

Desai continues to remain bullish on equities and says the correction has given a good entry point to investors. He says the Indian market is still in a bull phase and the ongoing correction is a part of the bull market correction.

1:50 pm Market news: With new insider trading norms coming into force on Friday, a host of companies, including Bajaj Auto, HDFC Bank, HDFC and Yes Bank, have framed their Codes of Conduct to regulate and report stock trades by promoters, top executives, their relatives and all connected persons. Besides, Aurobindo Pharma, Axis Bank, BEML, Jubilant Life Sciences,Ashok Leyland,Tata Communications, JK Lakshmi Cement and Hindustan Motors have formulated their respective Codes of Conduct, according to exchange data. Many more firms are expected to follow suit.

These firms have formulated a Code of Conduct and a Code of Fair Disclosure comprising practices and procedures followed for fair disclosure and handling of Unpublished Price Sensitive Information (UPSI).

1:30 pm Rural demand missing? Contrary to popular perception of rural India witnessing a deceleration in nominal wage, market research consultant Rama Bijapurkar says rural income in the last 10 years grew faster than urban income. Infact, Mayank Pareek, president of passenger vehicle business unit at Tata Motors , says, the rural market will continue to outgrow urban market in FY16 due to low base. However, there has been a little slowdown in the rural market but it is under control. At the same time the urban market is seeing a turnaround, which is good news for the auto industry, he says.

The market is still maintaining its upswing supported by capital goods and pharma. The Sensex is up 88.81 points at 27294.87 and the Nifty up 26.10 points at 8250.30. About 1444 shares have advanced, 953 shares declined, and 162 shares are unchanged.

SBI, Bharti Airtel, M&M, HDFC and Axis Bank are top gainers in the Sensex. Among the losers are NTPC, Tata Steel, Vedanta, Coal India and Hindalco.

China stocks slumped morning after the securities regulator said the market has ample liquidity to handle more initial public offerings, with some interpreting it as a signal that IPO activity could be stepped up further. The market was also spooked by domestic media reports that state-owned Central Huijin Investment Ltd has been slashing holdings in exchange-traded funds tracking main indexes.

12:50 pm UN report: Indian economy is likely to clock 8.1 percent growth in the current financial year, spurred by strong consumer spending amid low inflation, infrastructure projects and government's reform measures, says a UN report. Investment is also expected to rebound, although unevenly, given the still low capacity-utilisation rate at about 70 percent, it said. "Growth is forecast to accelerate to 8.1 percent in 2015 and 8.2 percent in 2016, benefiting from the acceleration of infrastructure projects, strong consumer spending due to lower inflation and monetary easing and gradual improvements in market sentiments," said the UN ESCAP report titled, 'Economic and Social Survey of Asia and the Pacific 2015.

12:30 pm DLF backlash: Slapped with a fresh 'cease and desist' order by fair trade regulator CCI, realty major DLF has said it is "very surprising" that no penalty has been imposed on various other realtors operating in the same market with the same product line.

In a fresh order Thursday against DLF, the Competition Commission of India (CCI) ruled that the realty giant was guilty of indulging in "unfair and abusive" business practices in sale of apartments in a Gurgaon housing project.

CCI asked DLF Gurgaon Home Developers Private Limited and its group companies to "cease and desist" from such unfair trade practices, but did not impose any fresh monetary penalty as Rs 630 crore fine has already been slapped on DLF for similar violation during the same period in a separate case.

The market holds gain as the Sensex is up 96.83 points at 27302.89 and the Nifty is up 31.75 points at 8255.95. About 1381 shares have advanced, 873 shares declined and 174 shares are unchanged.

Bharti Airtel, SBI, HDFC, Axis Bank and M&M are top gainers in the Sensex. Among the losers are Hindalco, Tata Steel, Vedanta, Coal India and NTPC.

Most emerging Asian currencies rose to see weekly gains on growing expectations the US Federal Reserve will delay interest rate hikes after soft economic data.

Malaysia's ringgit hovered near a two-week high as the economy grew at a faster-than-expected pace in the first quarter and its current account surplus almost doubled. The South Korean won turned higher on stop-loss dollar selling after the central bank kept its policy rate steady as expected and Governor Lee Ju-yeol dented expectations of further easing soon. Exporters also bought the currency for settlements.

11:50 am Market check: The Sensex is up 105.22 points at 27311.28 and the Nifty is up 33.60 points at 8257.80. About 1385 shares have advanced, 835 shares declined, and 178 shares are unchanged. Bharti Airtel, SBI, Axis Bank, HDFC and M&M are top gainers in the Sensex. Among the losers are Hindalco, Tata Steel, Coal India, GAIL and Vedanta.

11:30 am Interview: Manappuram Finance is seeing a sluggish growth in the current quarter but expects growth to pick up second quarter onwards. In an interview to CNBC-TV18, VP Nandakumar, the Managing Director and CEO of Manappuram Finance Ltd, expects nonperforming loans (NPL) to come down in the coming quarter. Manappuram's recent acquisation, Asirvad Microfinance, which holds 85 percent of kitty, is doing well, Nandakumar said, adding he plans to strengthen the business over the next two to three years.

The market is flat as the Sensex is up 28.80 points at 27234.86 and the Nifty is up 12.95 points at 8237.15. About 1286 shares have advanced, 761 shares declined, and 155 shares are unchanged.

SBI, Tata Steel, Bharti Airtel, M&M, Axis Bank and HDFC are top gainers in the Sensex. Among the losers are Tata Steel, Hindalco, Cipla, Coal India and Vedanta.

Oil prices were little changed on Friday but set to end the week slightly higher, buoyed by a weaker dollar, forecasts of lower US crude output and a pick-up in global demand.

US crude is set to rise for a ninth week, which would be the benchmark's longest winning streak since 1983. US crude stockpiles have fallen from record levels, while international oil agencies have cut US production forecasts after low prices hurt shale producers. Analysts said prices have outperformed weak oil fundamentals. Supply continues to exceed demand growth, which has been curbed by a lacklustre global economy.

10:50 am Economy outlook: Indian economy is likely to clock 8.1 percent growth in the current financial year, spurred by strong consumer spending amid low inflation, infrastructure projects and government's reform measures, says a UN report. Investment is also expected to rebound, although unevenly, given the still low capacity-utilisation rate at about 70 percent, it said. "Growth is forecast to accelerate to 8.1 percent in 2015 and 8.2 percent in 2016, benefiting from the acceleration of infrastructure projects, strong consumer spending due to lower inflation and monetary easing and gradual improvements in market sentiments," said the UN ESCAP report titled, 'Economic and Social Survey of Asia and the Pacific 2015.

10:30 am Interview: There are still no signs of capex recovery, says Bazmi Husain, Managing Director, ABB in a panel discussion on CNBC-TV18. He says order enquiries have declined year-on-year, and that the government needs to do more for the power sector on the distribution side. Speaking in the same discussion, MS Unnikrishnan, Managing Director, Thermax says order enquiries from light engineering, textile, brewery and distillery companies have increased. But the enquiries are yet to translate into higher order inflows. He says new orders from the Middle East are down significantly.

The market manages to hold its early gains. The Sensex is up 112.23 points at 27318.29, and the Nifty is up 38.40 points at 8262.60. About 1227 shares have advanced, 514 shares declined, and 120 shares are unchanged.

SBI, HDFC, Axis Bank, Tata Motors and M&M are top gainers in the Sensex. Among the losers are Tata Steel, Hindalco, Cipla, GAIL and Dr Reddy's Labs. Metal stocks are under pressure.

Gold traded near a three-month high on Friday and was on track for its biggest weekly gain in four months on receding expectations the Federal Reserve would hike US interest rates soon.
Recent US data has supported market expectations that the economy is not strong enough for the Fed to start rising record-low rates from June.

The bullion market was getting comfort from Wednesday data that showed US retail sales were flat in April, weaker than expected, as households cut back on purchases of automobiles and other big-ticket items.

9:50 am Modi China visit: After the cultural treat on day one of his visit, Prime Minister Narendra Modi will hold a meeting with his Chinese counterpart Li Keqiang in Beijing on Friday.Deals worth 10 billion dollars are likely to be sealed between India and China Modi began his day by visiting the symbolic Great Hall of People where he received a traditional welcome. He will also address students at Beijing's prestigious Ching-hua University. Also on the itinerary is a visit to the famous Temple of Heaven where Modi and Li will witness the much anticipated Yoga-TaiChi event.

However, all eyes will be on the signing of key agreements which will be followed by a joint press address later in the day. There are a host of interactive issues between India and China including the border issue, water issues, cyber espionage among several others. On day one of his three-day visit, Modi held "very substantive" discussions with Chinese President Xi Jinping focusing on strengthening of mutual trust and the boundary issue.

9:30 am Market outlook: Ridham Desai, Managing Director, Morgan Stanley says 8000 is a good level for the Nifty. However, he continues to maintain his year-end Sensex target at 32500. He says macros and data points in India have improved in the last few months. Desai continues to remain bullish on equities and says the correction has given a good entry point to investors. He says the Indian market is still in a bull phase and the ongoing correction is a part of the bull market correction.

The market opened on positive note driven by strong global cues. The Sensex was up 140.39 points or 0.52 percent at 27346.45, and the Nifty up 46.35 points or 0.56 percent at 8270.55. About 608 shares have advanced, 177 shares declined, and 67 shares are unchanged.

SBI, NTPC, M&M, Vedanta and Bharti are top gainers while Tata Steel, Sun Pharma, Dr Reddy's Labs and Cipla are major losers in the Sensex.

The Indian rupee gained in the early trade. It has opened higher by 17 paise at 63.48 per dollar versus 63.65 Thursday.

The US dollar held near its lowest since January against a basket of major currencies after soft US producer prices data challenged hopes for better US economic growth and supported the view that the Federal Reserve would delay hiking interest rates. The euro rises to 1.14 to the dollar.

Ashutosh Raina of HDFC Bank said, "Dollar weakness in the overseas markets coupled with the strong intervention by Reserve Bank of India (RBI) at higher levels has made the rupee slip back into the range of 63-64/dollar. We expect the USD-INR pair to trade in the range of 63.30-63.80/dollar."

Taking cues from record high finish on Wall Street on Thursday, Japan's Nikkei 225 rebounded from the previous day's close, which was at the lowest in nearly one week, as the yen ticked up 0.1 percent to 119.27. The fall in dollar-yen on Thursday, sparked by the selloff in bonds, sent jitters through the equity market and led the Tokyo bourse down 1 percent.

Australia's S&P ASX 200 index advanced in early trade to hit a seven-day high, as an impressive lead from the US helped to offset the impact of a strengthening Australian dollar.
South Korea's key Kospi index looks set to extend gains into the third straight day, with department store giant Shinsegae continuing its charge, and as traders expect the Bank of Korea to keep the country's monetary policy unchanged.

Meanwhile in the US, stocks closed one percent higher as investors cheered further weakness in the dollar and calmer bond markets, amid mixed economic data. The S&P 500 set a new closing record with information technology jumping 1.7 percent.

In Europe, equities finished higher as new regulation from the European Union helped the continent's steel producers post strong gains. Crude prices fell marginally as ample global supply picture weighed on prices while Brent's front-month June contract headed to expiration. Brent crude is currently trading at USD 66 per barrel.

Gold prices are near 3-month highs as the dollar came under pressure following a new batch of mixed US data.