Nifty ends June F&O series tad below 8400, Sensex up 166 points

25 Jun 2015

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03:30 pm Market ends: After consolidation, the market ended with gains. The Nifty closed June F&O series tad below 8400-level. The 50-share index was up 37.15 points or 0.4 percent at 8398 while the Sensex jumped 166.30 points or 0.6 percent at 27895.97.

About 1353 shares advanced, 1316 shares declined, and 159 shares were unchanged.

Bajaj Auto gained 5 percent and L&T was up 4 percent.  GAIL and HDFC twins were other gainers in the Sensex. Among the losers were Wipro, HUL, ONGC, Cipla and TCS.

03:15 Buzzing: Shares of GMR Infra surged 10 percent intraday as it is looking to refinance its long-standing debt. According to media reports, GMR Infrastructure has asked for refinance under the Reserve Bank of India's (RBI) 5/25 scheme for loans.

Under the RBI's 5/25 scheme, banks are allowed to extend the repayment schedule of loans to 25 years with an option to refinance them at the end of five years.

GMR Infrastructure had reported a consolidated net loss of Rs 892 crore for the quarter ended March 31, 2015, impacted by various charges including higher finance costs.

02:58 pm Market Update: Equity benchmarks maintained uptrend. The Sensex climbed 175.34 points to 27905.01 and the Nifty gained 44.45 points at 8405.30. About 1292 shares have advanced, 1275 shares declined, and 168 shares are unchanged on the BSE.

02:45 pm Greece woes: Persistent concerns of Greece leaving the euro weighed on European stocks on Thursday, with the lack of progress in negotiations on a cash-for-reform deal for Athens pushing investors towards safe-haven German Bunds.

The talks stumbled on Wednesday, with euro zone finance ministers accusing Greece of refusing to compromise ahead of a deadline next week when an International Monetary Fund loan tranche of 1.6 billion euros comes due.

Greek officials say without a deal the country does not have the money to pay the IMF. A default may trigger a bank run and may push the country out of the euro.

European Union leaders are set to meet again on Thursday.

European markets are cautious ahead of meeting. France's CAC, Germany's DAX and Britain's FTSE are flat.

Eurozone official today said creditor institutions asked Greece to submit new proposal by 3:30 PM IST. Creditors will submit own proposal at 5:30 PM IST if Greece fails to deliver, the official added.

Meanwhile, Shanghai fell 3.5 percent in late trade.

02:25 pm Interview: Implementation of smart city will definitely be a booster to the business model of the company, says Anoop Kumar Mittal, Chairman, NBCC in an interview to CNBC-TV18. The company is into construction and infrastructure development.

Although Mittal sees huge business opportunities from the above initiatives launched by the government, it will some time before orders start flowing in. He expects order inflows to start by FY16 end or early FY17.

PM Modi today launched his three ambitious schemes Amrut (Atal Mission For Rejuvenation & Urban Transformation), housing for all by 2020 and hundred smart cities mission aimed at urban development. According to PM every urban poor household will be enabled to own a house and that Amrut will ensure basic infrastructure and sanitation.

The company, he says, has already undertaken smart city projects like East Kidwai Nagar, Delhi.

NBCC can also offer services to generate revenue by redeveloping part of the property in case the municipal corporations are short of money and are unable to finance smart city or Amrut projects, says Mittal.

02:00 pm Market Check
The market gained strength in afternoon trade, supported by banking & financials, auto, pharma and capital goods stocks. The Nifty touched 8400 on expiry day, up 38.05 points at 8398.90 and the Sensex rose 162.75 points to 27892.42.

About 1244 shares have advanced, 1273 shares declined, and 168 shares are unchanged on the Bombay Stock Exchange.

Bajaj Auto topped the buying list, up more than 4 percent followed by HDFC, L&T, Dr Reddy's Labs, Vedanta and Hero Motocorp with 2-3 percent upside. HDFC Bank and BHEL climbed over 1 percent whereas ONGC, M&M, Wipro and Cipla declined 1 percent each.

NBCC, L&T, Welspun Corp, M&M, Reliance Industries, SBI and Tata Motors are most active shares on exchanges.

2:00 pm Market check: In a sudden burst of excitement, the market is making some smart gains. The Sensex is up 181.73 points or 0.7 percent at 27911.40, and the is Nifty up 44.65 points or 0.5 percent at 8405.50. About 1237 shares have advanced, 1250 shares declined, and 167 shares are unchanged. 

1:50 pm  Interview: Quashing rumors that promoters of KPIT Tech are selling stake in the company, chairman and group CEO, Ravi Pandit said they will consider taking legal action against the person/s found guilty of spreading such talks. In a strongly worded interview to CNBC-TV18, Pandit clarified neither the promoters nor foreign institutional investors (FIIs) and domestic investors (DIIs) are paring stakes in the company. He informed KPIT Tech would pay out dividends, same as last year, and on time.

1:30 pm Buzzing: Shares of Shipping Corporation of India and Varun Shipping jumped 5-6 percent intraday as Baltic Dry index (BDI) hit year-high levels on Wednesday. The index has climbed consistently in June, after being under pressure in beginning of the year.

BDI is an indicator for the bulk shipping industry. It tracks the number of shipping routes and the prices paid for transporting major bulk commodities. It's useful for assessing the outlook of global trade. A rising BDI is positive for the shipping industry.

According to reports, BDI is rising mainly due to increase in grain volumes in the Atlantic. Also, the recent rally in the BDI is led by Capesize rates

The market is gaining gradually as June F&O expiry approaches. The Sensex is up 111.28 points or 0.4 percent at 27840.95 and the Nifty is up 23.35 points or 0.3 percent at 8384.20. About 1178 shares have advanced, 1194 shares declined, and 167 shares are unchanged.

Vedanta, Bajaj Auto, HDFC, Dr Reddy's Labs and BHEL are top gainers in the Sensex. Cipla, M&M, Wipro, ONGC and NTPC are major losers.

Manoj Murlidharan of Religare Securities says he expects Nifty to touch 8,600-8,650 as FIIs opt for reverse arbitrage. However, there is a chance of market making new bottom closer  7,900-7,850 level, he said.

''Now, ideally what we have seen is in the last three to four odd session, there is good Put riding which is happening in the 8,300 mark and we are seeing Call riding which is happening in the 8,400. So, needless to say, even yesterday, if you remember, there was huge Put riding, close to 30-40 odd lakh. But then the Nifty tumbled down, but we had seen that the base of 8,300 is still intact. We expect that intraday, there might be a swing, we might come down to 8,300. But the settlement expiry can be closer to 8,350,'' he says in an interview to CNBC-TV18.

At 12.57 pm Market Update: Equity benchmarks strengthened a bit in afternoon trade. The Sensex gained 92.82 points at 27822.49 and the Nifty rose 17.65 points to 8378.50. About 1173 shares have advanced, 1188 shares declined, and 155 shares are unchanged on the BSE.

12:40 pm AMRUT launch: Prime Minister Narendra Modi today launched the NDA government's flagship Pradhan Mantri Awas Yojana (PMAY) housing scheme, along with its long-planned Smart Cities mission and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) urban renewal initiative.

As part of the three missions, the government will look to create 2 crore houses by 2022 by providing a central grant of Rs 1 lakh to Rs 2.3 lakh per house by way of a 6.5 percent interest subvention scheme; look to create 100 smart cities through a Rs 48,000 crore initiative; and push for urban infrastructure upgrade for 500 cities in a Rs 50,000 crore scheme.

12:20 pm EPFO investment ETFs: Starting in July, India's state-run pension and social security fund will invest about USD 800 million in equities in the current fiscal year, Labour Minister Bandaru Dattatreya said, in a long-awaited move that may help finance an ambitious privatization programme.

The more-than-USD 100 billion Employees' Provident Fund Organisation (EPFO) intends to place an initial 1 percent of its investments in exchange traded funds, increasing to 5 percent of the annual total in equity products by March 31.

12:00 pm Market Check
The market continued to consolidate ahead of June derivative contracts expiry today. The Nifty consistently hovered around the 8,350 mark, supported by select banking & financials, pharma, capital goods and auto stocks. The broader markets also traded in-line with benchmark indices.

The 30-share BSE Sensex rose 64.42 points to 27794.09 and the Nifty gained 9.50 points at 8370.35. About 1108 shares have advanced, 1131 shares declined, and 160 shares are unchanged on the Bombay Stock Exchange.

Asian markets fell, tracking a negative lead from Wall Street after negotiations between Greece and its creditors hit a stalemate overnight. Shanghai lost 1.6 percent.

KPIT Technologies trimmed losses to 5.5 percent from 14 percent after the management clarified on CNBC-TV18 that there is no material development in the company and that the promoters are not selling stake and neither are the FIIs and DIIs reducing stake with the dividend being the same as last year.

BHEL continued to gain, up 1.7 percent. In a management meet with Citi, the company said that the FY16 market size should be larger at 20 GW plus. So far in Q1FY16, BHEL has won orders worth Rs 18,300 crore. According to them, the execution is improving but being pulled down by stranded projects. Citi has a buy on BHEL.

Shares of HDFC, Reliance Industries, L&T, Vedanta, Dr Reddy's Labs, Bajaj Auto and BHEL gained 1-2 percent while ITC, M&M, Wipro and Cipla fell more than 1 percent.

11:55 am Buzzing: Shares of Shriram City Union Finance fell over 3 percent intraday. Goldman Sachs has terminated coverage on the stock and rates it sell. It has also reduced target price to Rs 1625 from Rs 1665 per share. The brokerage has lowered earnings per share estimates by 2.2 percent to 3.8 percent over FY16-17 factoring in trends from Q4FY15 results. The stock has outperformed Sensex 50 percent over the past 2 years as investors have sought exposure to its niche business model focused on Small Enterprise Finance (SEF).

11:45 am  Housing for all: Prime Minister Narendra Modi has launched AMRUT (Atal Mission For Rejuvenation & Urban Transformation), Housing For All (Urban) and Smart Cities Mission. Modi says AMRUT will ensure basic infrastructure and sanitation. He assures every urban poor household will be enabled to Own a house. He adds around 2 crore houses will be built for urban poor and central government's assistance will be given at Rs 1-2.3 lakh/house under 'Housing For All' scheme. 

11:30 am Market outlook: Given the spate of earnings downgrade the market has witnessed in the past, it will likely be difficult for it to move significantly higher in the near term, according to Anant Shirgaonkar, Head - India Equities at UBS Securities. In an interview with CNBC-TV18's Latha Venkatesh and Reema Tendulkar, he said emerging markets may be volatile in the near term. "We have a December target for Nifty at 8,600," he said. He added that investors have been focusing on quality names. "The preference is for cyclicals with low debts and good managements."

The market consolidates on June expiry day with the Nifty hovering around 8350 levels. The 50-share index is up 6.75 points at 8367.60 while the Sensex is up 59.06 points  at 27788.73. About 1018 shares have advanced, 1010 shares declined, and 126 shares are unchanged.

HDFC, BHEL, Bajaj Auto, Vedanta and Reliance are top gainers while Cipla, Wipro, M&M, ITC and HUL are among laggards in the Sensex.

Oil prices were mixed in Asia following a bearish US energy report, while talks over crude producer Iran's nuclear programme dragged on, analysts said. Six global powers -- Britain, China, France, Germany, Russia and the United States -- are trying to nail down a deal to curb Iran's nuclear ambitions by reducing its stockpiles of enriched uranium and mothballing some of its sites.

If the agreement is reached by the deadline and implemented, the powers have agreed to gradually scale back sanctions imposed since 2012, including on its petroleum industry. Iran has the world's fourth-largest oil reserves but its exports have fallen from more than 2.2 million barrels per day in 2011 to about 1.3 million because of the sanctions.

10:58 am Market Update: The Sensex rose 28.19 points to 27757.86 and the Nifty declined 1.20 points to 8359.65. About 999 shares have advanced, 1020 shares declined, and 118 shares are unchanged.

10:40 am Interview: Quashing rumors that promoters of KPIT Technologies are selling stake in the company, chairman and group CEO, Ravi Pandit said they will consider taking legal action against the person/s found guilty of spreading such talks.

In a strongly worded interview to CNBC-TV18, Pandit clarified neither the promoters nor foreign institutional investors (FIIs) and domestic investors (DIIs) are paring stakes in the company. He informed KPIT Tech would pay out dividends, same as last year, and on time.

The stock fell more than 10 percent intraday today.

10:20 am CLSA on Tata Motors: Brokerage CLSA advises buying Tata Motors as its China Autos analyst Alexious Lee believes Tata's stock is pricing in a very pessimistic China scenario and views risk-reward as favourable.

The stock fell more than 20 percent in current financial year 2015-16 against 0.8 percent loss in Sensex and 3.3 percent decline in BSE Auto index during the same period.

In an investor concall, he highlighted that demand for luxury autos has weakened in China, but on a 5-year view, he still expects 10-15 percent CAGR in sales. He said higher-end luxury auto sales have been partly impacted as consumers have invested money in China's booming stock market though, he expects this to reverse in 2016.

According to him, retail prices of some luxury models have come off in China but there isn't any broad-based price pressure at the manufacturer's end yet. Alexious believes that Jaguar Land Rover needs to cut price of locally produced Evoque to boost demand and also needs to reassure customers that higher-end models will not be localised.

However, luxury small utility vehicles are growing faster than cars and this trend is likely to continue, he said in its note.

10:00am Market Check
The market continued to consolidate ahead of expiry of June derivative contracts. The Sensex rose 44.64 points to 27774.31 and the Nifty advanced 2.60 points to 8363.45. The broader markets also remained flat.

For the near-term, the market is likely to take cue from developments in Greece but later on the focus will shift to monsoons and politics is the word coming in from independent market expert, Ambareesh Baliga.

Shares of HDFC, Larsen & Toubro, Lupin, Bharti Airtel, Bajaj Auto, Hero Motocorp, BHEL and Vedanta are prominent gainers, up 1 percent each. However, HUL slipped over a percent on profit booking. SBI, TCS, ITC, M&M, Axis Bank and ONGC are marginally in red.

In the midcap space, MMTC shot up 16.09 percent followed by NBCC, BASF, HMT and SREI Infra with 4-6 percent upside. However, KPIT Technologies, Responsive Industries, Persistent, HDIL and Jet Airways lost 3-8 percent.

9:40 am Market check: The Sensex is up 32.19 points or 0.1 percent at 27761.86, and the Nifty is up 1.60 points at 8362.45. About 760 shares have advanced, 681 shares declined, and 94 shares are unchanged.

BHEL, Lupin, Bajaj Auto, L&T and Vedanta are top gainers in the Sensex. GAIL, HUL, SBI, M&M and ONGC are major laggards.

9:30 am India at top 3: Emerging markets are expected to grow faster than developed economies, and India is likely to become the third largest economy by 2030 in the world after China and the United States, says a report. According to the Economist Intelligence Unit (EIU), emerging markets are expected to grow faster than developed economies, and as a result developing countries such as China and India are likely to overtake current global leaders such as the US, Japan and Western Europe.

India is expected to move up the rankings to third place, with real growth averaging close to 5 percent up to 2050," the EIU report said. By 2030 the top three economies of the world would be the US, China and India.

Dragged by Greek debt woes the market has opened lower on June F&O expiry day. The Sensex is down 90.20 points or 0.3 percent at 27639.47 and the Nifty is down 24.60 points or 0.3 percent at 8336.25. About 226 shares have advanced, 223 shares declined, and 75 shares are unchanged.

Infosys, Tata Motors, Hindalco, Lupin and Bharti Airtel are top gainers in the Sensex. Among the losers are M&M, HUL, ITC, Cipla and HDFC.

The Indian rupee remained unchanged in early trade compared to previous day's closing value. The currency has opened at 63.60 a dollar.

Tirthankar Patnaik, Mizuho Bank expects the rupee to remain resilient in the near-term relative to peers but the rupee is yet to factor in worsening of the Greek crisis.

He also expects gradual depreciation in the currency and the normalisation towards emerging market peers to continue. Despite recent depriciation, the rupee remains an outperformer across emerging market currencies, Patnaik said.

The dollar fell marginally as investors' focus slowly shifted from Greece to prospects for higher US interest rates. The dollar index had hit a peak of 95.63 yesterday, its highest level since June 12.

Greek woes resurfaced yesterday as the nation's creditors appear to be unhappy with its latest proposals to win more funding. The proposals include fewer spending cuts than creditors would like. The Greek Prime Minister Alexis Tsipras complained about the repeated rejection of his proposals. Euro zone leaders are accusing Greece of refusing to compromise ahead of a key repayment deadline that is set for next week.

The two sides are still wide apart on sticky issues like pension reforms, higher taxes but some are still trying to stay optimistic.

Asian markets opened lower tracking a negative lead from Wall Street after negotiations between Greece and its creditors hit a stalemate overnight. Nikkei retreated from the 18-year high it had hit earlier. Meanwhile Kospi snapped its six day winning streak.

US stocks closed lower as investors weighed the renewed impasse in the Greece debt talks and digested domestic data.

Nymex crude slips around a percent to USD 60 a barrel after a government report showed  an eighth straight weekly drop in US crude stockpiles which was offset by a large build up in oil products.

Gold prices continue to hover around USD 1175 an ounce.

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