Sensex ends 323 points higher, Nifty above 8600; Reliance up 4%

22 Jul 2015

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03:30 pm Market closing: The market is ended with smart gains. The Sensex was up 322.79 points or 1.1 percent at 28504.93, and the Nifty was up 104.05 points or 1.2 percent at 8633.50. About 1755 shares have advanced, 1071 shares declined, and 156 shares were unchanged.

Reliance, M&M, Sun Pharma, Bajaj Auto and HUL were top gainers while Lupin, TCS, Bharti Airtel, Infosys and Hindalco were among laggards.

03:15 pm Market norms: Country's oldest exchange, BSE is taking strict action to stem the misuse of capital market transactions after Securities & Exchange Board of India's (SEBI) crack down on companies using exchanges for evading taxes.

In a chat with CNBC-TV18, MD & CEO Ashish Chauhan says an ideal tax framework must be worked upon now to prevent further misuse.

He said: ''There are various tax exemptions that are available. Eight-ten years back a new tax was introduced called securities transaction tax (STT) in lieu of the long-term capital gains tax for the equities and that has created a large tax arbitrage, which basically is there for all stocks.''

03:00 pm Market Update: The Sensex gained 326.09 points or 1.16 percent at 28508.23 and the Nifty rose 103.90 points or 1.22 percent to 8633.35.

About 1725 shares have advanced, 1005 shares declined, and 164 shares are unchanged on the BSE.

02:45 pm Earnings: JSW Energy's first quarter earnings matched street expectations with the consolidated profit after tax falling 14.8 percent year-on-year to Rs 277 crore, impacted by lower topline growth. Other income, however, restricted the decline in bottomline.

Consolidated total income from operations dropped 17.6 percent to Rs 2,107 crore in the quarter ended June compared to Rs 2,558 crore in the same quarter last year, dented by lower sales volumes (due to weak power demand). Also the company took a planned shutdown at its Vijaynagar plant.

Profit was estimated at Rs 293 crore on revenue of Rs 2,107 crore for the quarter, according to a CNBC-TV18 poll.

02:25 pm Buzzing: Entertainment Network India (ENIL) has received the approval from information and broadcasting ministry for buying 4 radio stations of TV Today Network.

"Entertainment Network (India) has received the MIB's approval to purchase TVTN's four radio stations i.e. radio business in Amritsar, Jodhpur, Patiala and Shimla," said the company in its filing.

The said purchase shall be subject to fulfilment of conditions specified by the MIB, execution of relevant documents with TVTN and completion of all other relevant formalities, it added.

On February 13 & May 08, 2015 (regarding the non-binding memorandum of understanding with TV Today Network (TVTN) for the purchase of seven radio stations from TVTN), the Ministry of Information and Broadcasting (MIB) had declined its approval on the grounds that the proposed sale by TVTN and proposed purchase by the Company is not in conformity with the FM Radio Guidelines.

The scrip of ENIL was quoting at Rs 830, up Rs 103.10, or 14.18 percent after hitting a 52-week high of Rs 840.90 while TV Today Network was quoting at Rs 231, up Rs 17.60, or 8.25 percent on the BSE.

02:00 pm Market Check
The market remained strong in afternoon trade, supported by banking & financials, oil & gas, FMCG and select auto & pharma stocks. The Sensex surged 313.60 points or 1.11 percent to 28495.74 and the Nifty rallied 98.45 points or 1.15 percent to 8627.90.

Nearly two shares advanced for every share declining on the Bombay Stock Exchange.

Reliance Industries, HDFC, Sun Pharma, M&M, HUL, Bajaj Auto and Cipla rallied 2-3.5 percent.

Select panel of the GST (Goods & Services Tax) its submited report on Constitutional Amendment Bill in Rajya Sabha. The panel chief told CNBC-TV18 that the panel recommended three modifications to the bill related to clause 12, 18 & 19.. It recommended compensation for GST loss for 5 years and expects the bill to be passed in Rajya Sabha.

Global markets are weak today. Asian markets like Japan lost more than 1 percent today while Hang Seng down more than 250 points as the fall in commodity prices continued. Gold prices slipped below USD 1100 an ounce. Brent crude, too, declined a percent.

1:50 pm FII view: Sakthi Siva, Credit Suisse said India's return on equity appears to have bottomed at 13.7 percent in March & has since risen to 14.1 percent.

India, like Korea, has been associated with downgrades to 2015e consensus EPS, but has the second highest EPS growth in 2015e of 16.3 percent, she added.

"India's 53 percent premium on price-to-book versus return on equity (ROE) valuation model means that a recovery from the current 14.1 percent ROE to 19.8 percent already appears to be priced in," Siva said.

"In July, we reduced India from a 1 percent overweight to a 1 percent underweight, with Axis Bank & HCL Tech remaining our top picks. The two most overvalued sectors are staples & healthcare and both are seeing downgrades to consensus EPS," she added.

1:30 pm Results: Buoyed up by blockbuster films like Tanu Weds Manu Returns, Avengers, Fast & Furious, Piku and Dil Dhadakne Do PVR has posted its highest ever quarterly profit in April-June quarter. The company's consolidated net profit rose 680 percent to Rs 58.5 crore in the quarter ended June 30, 2015 from Rs 7.7 crore in year-ago period.

During the quarter, its total income also jumped 34.14 percent at Rs 486 crore against Rs 362.3 crore in corresponding quarter last fiscal. Margins were at 23.1 percent from Rs 15.1 percent on an annual basis.

This is much better than street estimates. As per a CNBC-TV18 poll, PVR's Q1 net profit was seen rising by a whopping 416 percent to Rs 39.7 crore while topline was expected to rise 21.7 percent at Rs 441 crore year-on-year.

The market continues to hold strong. The Sensex is up 241.69 points or 0.9 percent at 28423.83, and the Nifty is up 74.45 points or 0.9 percent at 8603.90. About 1605 shares have advanced, 979 shares declined, and 137 shares are unchanged.

Reliance, HUL, M&M, Bajaj Auto and HDFC are top gainers while Lupin, TCS, Bharti Airtel, Infosys and Vedanta are among losers.

Gold fell for a seventh session in eight, reflecting sustained downward pressure on the metal days after its steepest drop in almost two years, with more losses seen ahead as the demand outlook dims.

A looming hike in US interest rates has dented gold's appeal as an investment, encouraging more sellers in the market after Monday's 4-percent rout.

12:55 pm Market Update: The Sensex rose 241.69 points or 0.86 percent to 28423.83 and the Nifty gained 74.45 points or 0.87 percent at 8603.90.

About 1605 shares have advanced, 979 shares declined, and 137 shares are unchanged on the BSE.

12:45 pm Interview: The 62 crore thrrough qualified institutional placement (QIP) will be used for on-going projects and new projects, Rajesh Doraiswamy, Joint Managing Director of Salzer Electronics told CNBC-TV18.

Promoter holding, which was 30 percent previously, has come down to 25 percent post-QIP.

L&T, which has been associated with the company for two decades, will hold 19.8 percent now, a decline from 25 percent held earlier, he said.

Doraiswamy expects the change in revenue mix to improve margins by 100 basis points. For the next three years, the company is targeting 25 percent revenue growth, he said adding that the industrial switch gear business will lead growth.

Salzer Electronics operates in four segments – switchgear, building segment, wires & cables and energy management.

12:25 pm Cairn India under pressure: Shares of Cairn India fell by nearly 4 percent today after the company reported a 24 percent drop in June quarter net profit.

Cairn India, the operator of nation's biggest onshore oilfield, yesterday reported a 24 per cent drop in June quarter net profit due to a slide in international oil prices. Net profit in April-June at Rs 835 crore, or Rs 8.36 per share, was 24 per cent lower than Rs 1,093 crore, or Rs 18.17 a share, in the same period a year ago, the company said in a statement.

Turnover fell 41 percent to Rs 2,627 crore.

Cairn got USD 56 per barrel for oil it sold in the first quarter of the current fiscal, 42 per cent lower than USD 97 a barrel realisation in the year-ago period. Oil production from its prime Rajasthan block was 6 per cent down at 1,72,224 barrels per day.

12:00 pm Market Check
The market extended rally in noon trade with the Sensex rising 256.82 points or 0.91 percent to 28438.96 and the Nifty up 77.95 points or 0.91 percent to 8607.40. About 1607 shares have advanced, 874 shares declined, and 142 shares are unchanged on the BSE.

If either the GST Bill or the Land Acquisition Bill get passed in this session of the Parliament, it will be a huge positive. The corporate sector too will get more confidence to undertake capital expansion, said Sachin Shah, fund manager, Emkay Investment Managers.

Reliance Industries led the market higher, rising 3.4 percent followed by HDFC, HUL, Sun Pharma, M&M and Baja Auto with 2-3 percent upside.

However, Lupin, TCS, Bharti Airtel, Vedanta and Hindalco Industries dropped 1-3 percent.

11:50 am FII view: Revival in urban demand in the second quarter of this year will act as a catalyst for rural demand, Nitin Mathur, Emerging Markets Consumer Research at Societe Generale told CNBC-TV18. He said festive season will help in improving the rural demand.

In the fast moving consumer goods (FMCG) space, Hindustan Unilever Limited is the preferred pick on back of good earnings, Mathur said adding that Societe has retained its buy call on the stock. The target price is Rs 966 for a 12 month period, he said. Mathur has a 'hold' view on other FMCG companies like Marico , Godrej and Dabur . He is bullish on Emami from a long term view because he feels the company has scope to grow because of its small base.

11:30 am Buzzing: Shares of Eicher Motors fell 3 percent intraday after it announced March quarter results. It posted strong Q1 earnings but was marginally below estimates. The stock is seeing profit taking may be since stock is already priced in.

However, analysts are still bullish on the stock which has been giving good returns. Morgan Stanley remains overweight on it and expects sales of apparel and accessories to improve share of merchandise revenues from the current level of only 2 percent.

Macquarie also maintains outperform with a target price of Rs 25,200, indicating 19 percent potential upside. It is betting on Royal Enfield's sales growth, EBITDA margins and market share gains in commercial vehicle space.

The market is holding its gains supported by blue chips. The Sensex is up 202.55 points or 0.7 percent at 28384.69, and the Nifty is up 60.90 points or 0.7 percent at 8590.35. About 1507 shares have advanced, 700 shares declined, and 126 shares are unchanged.

Sun Pharma, HDFC, HUL, Bajaj Auto and Cipla are top gainers in the Sensex. Among the losers are Vedanta, Hindalco, TCS, Infosys and Bharti Airtel.

Oil prices resumed their declines in Asia on Wednesday following a US report showing stockpiles surged last week, with analysts warning for further weakness ahead.  Oil prices have tumbled from more than USD 100 a barrel in June last year as strong production from the US and the Organization of the Petroleum Exporting Countries led to supplies outpacing demand.

Concerns over the return of Iranian oil to the market following a deal with major powers on its nuclear ambitions have also added to pressure on prices. Ahead of an official report, the industry-funded American Petroleum Institute (API) said stockpiles had increased by 2.3 million barrels last week.

10.55 am Market Update: The Sensex gained 157.53 points at 28339.67 and the Nifty rose 47.30 points to 8576.75. About 1443 shares have advanced, 700 shares declined, and 134 shares are unchanged on the BSE.

10:40 am Adani Ports in News: Adani Ports is marketing a five-year US dollar bond to yield around 210 basis points over US Treasuries.

India's largest private developer and operator of ports and related infrastructure has mandated Bank of America Merrill Lynch, Barclays, Citigroup and Emirates NBD Capital as joint bookrunners and lead managers for the US benchmark debut.

SBI Capital Markets is joint lead manager.

Those 144A/Reg S bonds are expected to be rated Baa3/BBB-/BBB-.

10:20 am Market Update: The Sensex gained 132.30 points or 0.47 percent at 28314.44 and the Nifty rose 37.50 points or 0.44 percent to 8566.95. About 1269 shares have advanced, 649 shares declined, and 118 shares are unchanged on the BSE.

10:15 am Acquisition: Cyient has acquired Global Services Engineering Asia, based in Singapore, from Pratt & Whitney Services Pte. The deal is expected to close at the end of August 2015.

Global Services provides repairs, development and validation for aero gas turbine engine components in support of Pratt & Whitney throughout the region.

This acquisition is through Cyient Singapore Pte, which is a wholly owned subsidiary of the company that provides engineering, data analytics, networks and operations solutions.

"We are committed to grow aerospace aftermarket services in the region and expand reach into other industries within Singapore," said Krishna Bodanapu, MD and CEO, Cyient.

10:00 am Market Check
The market recouped early losses, led by short covering in FMCG, pharma and oil stocks. The Sensex gained 78.05 points at 28260.19 and the Nifty rose 23.30 points to 8552.75.

The broader markets also gained with the BSE Midcap and Smallcap indices up over 0.4 percent. About 1054 shares have advanced, 637 shares declined, and 106 shares are unchanged on the Bombay Stock Exchange.

Volatility is here to stay in the near term on account of international factors such as Greece and Federal Reserve action (rate hike) and also domestic cues such as monsoon and the ongoing earnings season, said Naina Lal Kidwai, Country Head, HSBC India, Director, HSBC Asia Pacific.

Sun Pharma and Hindustan Unilever rebounded sharply on short covering, up 2 percent each. Sun Pharma issued profit warning for FY16 on Monday and HUL disappointed street on bottomline front.

Shares of HDFC, Reliance Industries, M&M, ONGC, Bajaj Auto and Cipla gained 0.9-1.6 percent. However, Infosys saw profit booking, down 1.6 percent after rising 11 percent in previous session post earnings. Vedanta dropped more than 2 percent.

9:45 am Market outlook: Volatility is here to stay in the near term on account of international factors such as Greece and Federal Reserve action (rate hike) and also domestic cues such as monsoon and the ongoing earnings season, says Naina Lal Kidwai, Country Head, HSBC India, Director, HSBC Asia Pacific.

"We still have the issue of the US and quantitative easing (QE) and is it September, is it December and while some of its get factored in it does affect global markets and it affects therefore foreign institutional investment here. So, I think as long as external volatility remains which it does, it eases a bit when Greece get sorted out. It eases a bit once we know where QE is going, is a lot of it," she says.

9:30 am Poll: PVR is expected to post best-ever quarter in April-June period riding on films like Tanu Weds Manu Returns, Avengers, Fast & Furious, Piku and Dil Dhadakne Do. As per a CNBC-TV18 poll, PVR's Q1 net profit is likely to rise by a whopping 416 percent to Rs 39.7 crore from Rs 7.7 crore in corresponding quarter last fiscal.

During the quarter, its  topline is seen growing 21.7 percent at  Rs 441 crore versus Rs 362.3 crore in year-ago period. EBITDA is expected to rise 66 percent at Rs 90.8 crore against Rs 54.7 crore year-on-year while margins may grow 20.6 percent against 15.1 percent (Y-o-Y).

The company which is into production, distribution and exhibition business added 23 screens in Q1 FY16 taking the total number to 467 in India. Analysts polled by CNBC-TV18 say that blockbusters films this quarter will drive revenues and footfalls. Topline growth will be aided by higher number of screens, higher ticket prices, increased footfalls and increased spending per head. Margins may improve due to higher operating leverage.

The market has opened with small cuts. The Sensex is down 22.72 points at 28159.42, and the Nifty is down 18.65 points at 8510.80. About 270 shares have advanced, 246 shares declined, and 72 shares are unchanged.

Sun Pharma, Bajaj Auto, Wipro, ONGC, NTPC are top gainers while Infosys, Tata Steel, Vedanta, Hindalco and Tata Motors are major losers.

The Indian rupee opened with a marginal loss of 7 paise at 63.58 per dollar on Wednesday against previous close of 63.51.

Himanshu Arora of Religare said, "The USD-INR pair is expected to trade in a rangebound fashion today with bearish bias amid weakness in dollar. Fresh selling of dollars by banks and exporters is expected to support the rupee today."

 The euro rebounded from three-month lows against the dollar as an easing of pessimism about Greece. The yen rose versus the greenback on upbeat remarks on inflation from the Bank of Japan Chief.

Asian markets have opened weak with Japan's Nikkei down more than a percent as the fall in commodity prices continues.

Globally, too stocks in the US closed lower with lackluster earnings from a few blue chips pressuring the Dow Jones Industrial Average 1 percent.

Greece's stock exchange remained closed, while the local banks re-opened on Monday for the first time in three weeks.

Crude prices continue to remain volatile with NYMEX crude trading above 50 dollars per barrel and Brent holding around 56 dollars per barrel.
 
Gold hovers near 5-year lows with more losses expected in the coming months following Monday's "bear raid" when sellers dumped an estimated 33 tons in just two minutes.

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