Sensex soars 300 points, Nifty ends at 8460; HDFC, GAIL gain
13 July 2015
3:30 pm Market close: After confirmation of the Greece bailout package, the market ended on strong note. The Sensex was up 299.79 points or 1 percent at 27961.18 and the Nifty was up 99.10 points or 1.1 percent at 8459.65.
About 1781 shares have advanced, 1022 shares declined, and 159 shares are unchanged.
Defensives like pharma, IT stocks rallied. GAIL, HDFC, Maruti, NTPC and Wipro were top gainers in the Sensex. Among the losers are ONGC, L&T and BHEL.
3:10 pm Market outlook: Andrew Holland, CEO of Ambit Investment Advisors, says if the monsoons are going to be where they are today, then there can be a 50 bps Reserve Bank rate cut around August-September.
"I would sell into this tech rally. The decade of growth is over for them, I am not going to invest in the tech sector whatsoever for a long time to come until I start to see growth at the top line and whether Greece is in there or not, I don't think it helps the overall industry, so I would sell into this. It is just a relief rally all around which most people would sell into as the day as the day wears on," he says in a interview.
Globally, he believes China is more worrisome than Greece. He is also worried about the US Federal Reserve rate hike situation
2:50 pm Buzzing: Shares of PVR rose over 6 percent intraday after CLSA has initiated coverage with a bullish stance. With a three year target of Rs 1440 per share, indicating 110 percent return from current price, it says Q1FY16 results are likely to be strong.
It expects earnings per share (EPS) to grow 62 percent and 22 percent in FY17 and FY18 respectively on mega plans to double screens in next 3-5 years.
Spike in the balance sheet is estimated to be driven by mega screen expansion plans, rising ticket prices, food & beverages (F&B) spend growth, and operating leverage on fixed costs.
2:35 pm Views on Greece deal: Jan Dehn of Ashmore Investment Management says once Greece manages to get the bridge financing, then by September we can expect a clear idea on establishment of the EU programme.
Talks of the deal has halted Grexit for the moment, he told CNBC-TV18.
German Chancellor Angela Merkel said she would advise German Parliament to authorise bailout negotiations but Greek Parliament must approve entire conditions before German Parliament meets. The deal offers Greece
financing of around €86-87 billion. Dehn believes Greek Prime Minister Tsipras has the numbers, hence he should be able to pass it. He enjoys very strong support in his wish to stay within the Eurozone.
Michael Every of RaboBank said the market's reaction to the good news should be read as knee-jerk as the focus has now shifted to Wednesday.
2:20 pm Result: IndusInd Bank has beaten street estimates with its strong April-June quarter results. Its net profit jumped 24.7 percent to Rs 525 crore in the quarter ended June 30, 2015 from Rs 421 crore in year-ago period.
Net interest income (NII), difference between interest earned and interest paid, also grew 22.5 percent at Rs 980.7 crore in Q1 against Rs 800.7 crore in corresponding quarter last fiscal. Non-interest income for the quarter stood at Rs 720 crore.
However, its asset quality has improved marginally as gross non-performing asset (NPA) was at Rs 570.1 crore compared to Rs 563 crore quarter-on-quarter. Net NPA was at Rs 225 crore versus Rs 210.5 crore (Q-o-Q).
The market continues its uptrend as the Sensex is up 305.91 points or 1 percent at 27967.31. The Nifty is up 94.90 points or 1 percent at 8455.45. About 1676 shares have advanced, 950 shares declined, and 144 shares are unchanged.
GAIL, HDFC, Cipla, Sun Pharma and Maruti are top gainers in the Sensex. Among the losers are ONGC and L&T.
IndusInd Bank is up 1 percent after its Q1 results beat estimates. Its net non-performing asset (NPA) is flat.
European leaders in Brussels have reached a third bailout deal for Greece morning after more than 17 hours of talks on the thorny subject of reforms and more financial aid for the near-bankrupt country. Euro zone leaders "unanimously" reach an agreement on Greece Creditors want more reforms and tax measures Greece to create 50 billion euro privatisation fund Athens to pass some reforms by Wednesday.
1:50 pm Market outlook: India is likely to outperform China for the rest of the year, is the word coming in from Richard Gibbs, The Principal, Plantagenet Investments. There are a lot of variables (China, Greece) out there, though the crisis mentality has abated, which is the wise thing to do, he says. According to him, the Indian market is well placed considering the WTI is under the USD 52 per barrel mark and may go further down, which is good for the market.
1:30 pm European Council President Donald Tusk's statements after Euro Summit: Nevertheless, the decision gives Greece a chance to get back on track with the support of European partners. It also avoids the social,
economic and political consequences that a negative outcome would have brought. I welcome the progress and the constructive position of Greece that helps to bring back trust among euro zone partners.
Following national procedures, the Eurogroup will work with the Institutions to swiftly take forward the negotiations. Finance ministers will also as a matter of urgency discuss how to help Greece meet her financial needs in the short term, so-called bridge-financing.
1:20 pm More from Greece: In a press conference European Council President Donald Tusk said "we have an agreekment" and said both sides had agreed in principle "to start negotiations on an (European Stability Mechanism)
ESM program, which, in other words, means continued financial support for Greece."
"The decision gives Greece the chance to get back on track with the support of European partners," he added, but said there would be "strict conditions."
Also speaking at the press conference, European Commission President Jean-Claude Juncker said there would be no "Grexit" (a Greek exit from the euro zone) as a result of the deal
Indian market is rejoicing at Greece bailout package approval. The Sensex is up 331.40 points or 1 percent at 27992.80, and the Nifty is up 100.25 points or 1.2 percent at 8460.80. About 1652 shares have advanced, 868 shares declined, and 135 shares are unchanged.
GAIL, Cipla, HDFC, Maruti and Sun Pharma are top gainers in the Sensex.
European leaders in Brussels have reached a third bailout deal for Greece morning after more than 17 hours of talks on the thorny subject of reforms and more financial aid for the near-bankrupt country.
Euro zone leaders "unanimously" reach an agreement on Greece Creditors want more reforms and tax measures Greece to create 50 billion euro privatisation fund Athens to pass some reforms by Wednesday.
Bond yields in Italy and Spain fell to session lows after the comments and the euro revers earlier losses to hit the day's high of USD 1.11725. the pan-European Stoxx 600 index opened 0.8 percent higher.
12:50 pm Greek Bailout package: European leaders in Brussels have reached a third bailout deal for Greece on Monday morning after more than 17 hours of talks on the thorny subject of reforms and more financial aid for the near-bankrupt country.
Politicians quickly took to social media to break the news of a breakthrough. Belgian Prime Minister Charles Michel tweeted the word "agreement" and the Cyprus government spokesman said "we seem to have deal on Greece."
Bond yields in Italy and Spain fell to session lows after the comments and the euro revers earlier losses to hit the day's high of $1.11725. the pan-European Stoxx 600 index opened 0.8 percent higher.
12:45 pm Market check: The market is pumped up with excitement. The Sensex is up 234.84 points or 0.8 percent at 27896.24, and the Nifty is up 72.75 points or 0.9 percent at 8433.30. About 1616 shares have advanced, 881 shares declined, and 137 shares are unchanged.
12:30 pm Breaking: Greece and euro zone 'unanimously' reach deal. EU President says there are three conditions to be met by Greece. Bailout package is approved.
The market is consolidating around 8350-level. The Sensex is down 4.44 points at 27656.96 and the Nifty is up 3.00 points at 8363.55. About 1415 shares have advanced, 960 shares declined, and 151 shares are unchanged.
GAIL, Sun Pharma, Maruti, Cipla and TCS are top gainers in the Sensex. Among losers are ONGC, Hindalco, L&T, Vedanta and BHEL.
India is likely to outperform China says Richard Gibbs, The Principal, Plantagenet Investments. There are a lot of variables (China, Greece) out there, though the crisis mentality has abated, which is the wise thing to do, he says.
According to him, the Indian market is well placed considering the WTI is under the USD 52 per barrel mark and may go further down, which is good for the market.
11:50 am Earnings expectations: There is no case for the flow of domestic funds into equities to stop anytime soon, says Manish Gunwani of ICICI Prudential AMC. "In fact, we will see a shift from physical assets to financial assets over the next few years," he told. He doesn't buy the argument that it is just liquidity that is driving the market up.
He believes equities will outperform other asset classes in the medium term. However, as far as earnings growth is concerned, he is not that optimistic about it this year and expects it to be in low-teens. But he feels, FY17-18 can see around 18 percent growth. According to him, domestic cyclicals will see gradual and uneven recovery.
11:30 am Market outlook: The market could consolidate for the next couple of months, but beyond that it offers good upside, Navneet Munot, Chief Investment Officer, SBI Mutual Fund says.
He is betting on four broad drivers--the government's focus on the ease of doing business, technology enablers which help ion creating brands much faster, improvement in logistics and introduction of GST, and the fall in the cost of factors of production--to drive the revival in the economy.
Munot says there were will be much different set of winners from these trends over the next three to five years, compared to those seen in the last 5-7 years.
Munot says the doubling of per capital income will boost consumer discretionary spends, and certain sectors could see an exponential growth because of this.
The market is completely flat while metals continue to put pressure. The Sensex is up 7.88 points at 27669.28, and the Nifty is up 6.10 points at 8366.65. About 1389 shares have advanced, 816 shares declined, and 136 shares are unchanged.
GAIL is up 3 percent, Cipla, Sun Pharma, Bharti Airtel and TCS are top gainers in the Sensex. Among the losers are Hindalco, Vedanta, L&T, ONGC and BHEL.
China stocks extended their recovery on Monday morning, raising hopes that measures taken by Beijing to prevent a full-blown market crash have worked, although renewed interest in leveraged bets has led to fresh regulatory crackdown on margin lending.
Signs that speculative investors have returned worried regulators. On Sunday, China's securities regulator warned brokerages not to open their trading systems to firms engaged in illegal businesses, and cracked down on identity fraud, a typical practice in grey-market margin financing.
10:50 am Market outlook: Elara Capital has put its faith in consumption sector owing to increase in consumption of FMCG names like Marico, Dabur, Emami & HUL. Speaking to CNBC-TV18, Harendra Kumar of Elara Capital says next leg of growth is going to come from consumption sector with midcap FMCG names staying outperformers. The other pocket that is going to gain big time belongs to the digital India theme. He names Tata Communication as a big beneficiary of the digital India growth.
10:30 am Brokerage view: CLSA has reiterated Maruti as its high conviction buy stock with a target of Rs 4450 per share. Shares of the auto company were up 1 percent intraday on Monday as the brokerage sees multiple catalysts driving its strong earnings growth.
CLSA expects its market-share gains to accelerate with rollouts of four new cars (a S-Cross crossover, a light commercial vehicle, a premium small car and a compact urban SUV) in FY16. It estimates Maruti's market share to improve to 46.7 percent by FY17 from 45 percent in FY15. It forecasts an 11 percent export CAGR over FY15-17 with its entry into new markets and sees a 13 percent CAGR for total volumes. Growth of the passenger-vehicle (PV) industry may improve from 4 percent in FY15 to 6.2 percent in Q1 FY16 and will rise higher as the economy recovers.
The market is still holding early gains. The Sensex is up 61.13 points at 27722.53, and the Nifty is up 16.80 points at 8377.35. About 1242 shares have advanced, 589 shares declined, and 112 shares are unchanged.
GAIL, Sun Pharma, Cipla, Bharti Airtel and Dr Reddy's Labs are top gainers in the Sensex. BHEL, Hindalco, Axis Bank, L&T and Coal India are among losers.
Oil prices fell in Asia as Iran and major western powers said they were closer than ever to a landmark nuclear deal that would lift sanctions and see Tehran's crude exports return to global markets. A forecast by the International
Energy Agency (IEA) for slower world oil demand next year was also weighing on the market, analysts said.
Gold edged lower, dragged down by the euro after a weekend emergency summit to tackle Greece's debt crisis yielded no deal and with the US Federal Reserve still on track to raise interest rates this year. Greece will now be required to push legislation through parliament this week to convince its euro zone creditors to release funds to avert a state bankruptcy and start negotiations on a third bailout programme estimated at up to 86 billion euros (USD 95.5 billion).
9:50 am Buzzing: Shares of Sintex Industries slipped 7 percent intraday after it announced April-June quarter results. It missed analysts expectations even though the textile and plastic company Sintex Industries reported a 12 percent growth in its consolidated net profit at Rs 69 crore during the quarter ended June 30 from Rs 61.59 crore in the corresponding quarter last fiscal. Growth in its custom molding business drove Q1 earnings.
During the quarter, its consolidated total income grew by about 9 percent to Rs 1,471.21 crore versus Rs 1,345.41 crore in the year-ago period.
There was a big slip of 53 percent in the revenues of infrastructure division.Infrastructure business revenue dragged to Rs 54 crore against Rs 114 crore year-on-year. It was clocking revenues of Rs 110 to Rs 290 crore in the past four to five quarters.
9:30 am Results poll: IndusInd Bank is likely to report stable loan growth, net interest margin (NIM) and asset quality in April-June quarter which will be announced today. According to a CNBC-TV18 poll, the bank may report net profit at Rs 514.44 crore, up 22.19 percent compared to Rs 421 crore in corresponding quarter last fiscal. Its net interest income (NII) is seen growing 21.75 percent at Rs 975.24 crore against Rs 801 crore year-on-year. NIMs may come in at 3.65 percent while provision may decrease to Rs 97.4 crore versus Rs 107.44 crore on sequential basis.
Loan growth is expected to be significantly higher significantly higher than industry, given the pick up in auto sales.
The market has sprung into positive territory in Monday opening. The Sensex is up 85.30 points at 27746.70, and the Nifty up 28.05 points at 8388.60.
About 616 shares have advanced, 122 shares declined, and 72 shares are unchanged.
Sun Pharma, Lupin, Cipla, GAIL and Dr Reddy's Labs are top gainers. Among the losers are Vedanta, BHEL, HUL, Hero and HDFC Bank.
The Indian rupee opened marginally lower at 63.45 per dollar on Monday against 63.39 Friday. Agam Gupta of Standard Chartered said, "The uncertainty from the Greece situation is still continuing as the weekend Eurozone meetings have not led to a conclusive resolution." He further added, "Dips to 63.30-63.35/dollar will be used by local Government banks as a dollar buying opportunity, while uptick to 63.55-63.60/dollar will attract exporter hedging. We expect the USD-INR to trade between the range of 63.30-63.60/dollar for the day."
However, there is still no deal on the Greek bailout as creditors asked for even more tough conditions than those rejected by Greek people in last Sunday's referendum.
Greece Parliament will now vote on Wednesday on whether to accept more pension overhauls and sales tax increase among other tough measures.
There are renewed fears of Athens leaving the euro zone as Germany proposes "Greece should be offered swift negotiations on a time-out from the euro area.''
Nikkei rebound after last week's 4 percent loss. In Asia, Shanghai market will remain in the spotlight following last week's relief rally as Beijing continues to tighten controls. The stock market regulator has said it wants to ensure
that real names and id numbers were used on trades. Reports over the weekend stated that some brokerages were suspected of manipulating futures prices and other "malicious" trading practices.
Crude prices continue to slide as Iran and six world powers are close to nailing down a nuclear deal. Gold pares gains as Yellen signals a 2015 rate hike.