Sensex, Nifty end with losses; Lupin slumps 5%, Maruti up

27 Oct 2015

3:30 pm Market closing: After a volatile day, the market ended with loses. The Sensex slipped 108.52 points or 0.4 percent at 27253.44 and the Nifty was down 27.65 points or 0.3 percent at 8232.90. About 1264 shares advanced, 1446 shares declined, and 142 shares were unchanged.

Maruti, Sun Pharma, Wipro, HDFC Bank and Cipla were top gainers while Lupin, ONGC, HDFC, GAIL and Tata Steel were losers. Lupin ends 5 percent lower.

3:15 pm Sebi's lashes out: The Securities and Exchange Board of India (SEBI) will increase surveillance of mutual fund investments in corporate debt, its Chairman UK Sinha said on Tuesday and called for the industry to be more careful with investments and procedures.

UK Sinha's comments come amid growing worries about corporate debt investments by asset managers after a unit of JP Morgan in India suffered significant mark-to-market losses in late August when auto-parts maker Amtek Auto Ltd's debt was downgraded by rating agencies.

3:00 pm Big rail push: Railways received Rs 2000 crore from Life Insurance Corporation (LIC), the first tranche of its financial assistance for investment in 50 projects involving construction of new lines and electrification of routes as part of its capacity augmentation programme.

Railways had signed an MoU with LIC in March this year for financial assistance of Rs 1.5 lakh crore over the next five years for construction of new lines and route electrification.

There is a five-year moratorium on interest and loan repayment The Rs 2000 crore cheque was handed over by LIC to Indian Railway Finance Corporation (IRFC) at a function.

2:45 pm Rupee bonds: India will apply a 5 percent withholding tax to offshore rupee bonds for foreign investors, in line with the rate applied to domestic debt, Manoj Joshi, joint secretary at the finance ministry, told reporters on Tuesday.

The clarification comes amid some confusion about whether the withholding tax also applied to offshore debt.

India had cut the tax for debt investments to the current rate from 20 percent in 2013, which will remain in effect until July 2017.

2:30 pm Result: Country's third largest private sector lender Axis Bank 's July-September quarter earnings matched analysts' expectations on Tuesday with profit rising 18.9 percent year-on-year to Rs 1,915.6 crore. Net interest income, the difference between interest earned and interest expended, grew by 15.2 percent to Rs 4,062 crore compared to Rs 3,524.9 crore in same period.

The market remains sluggish as benchmark indices struggle. The Sensex is down 120.69 points or 0.4 percent at 27241.27 and the Nifty is down 33.50 points or 0.4 percent at 8227.05. About 1122 shares have advanced, 1416 shares declined, and 140 shares are unchanged.

Sun Pharma, Maruti, HDFC Bank, Bajaj Auto and Wipro are top gainers while Lupin, HDFC, ONGC, GAIL and BHEL are losers in the Sensex.

Rupee recovered from initial losses against the American currency and was trading at yesterday's closing level of 64.96 in late morning deals on fresh selling of dollars by banks and exporters on the back of weak greenback in overseas markets.

The domestic unit hovered in a range of 64.94 per dollar and 64.9950 per dollar during the morning trade. Meanwhile, the forex dealers were in a wait-and-watch mode ahead of the Federal Reserve meeting, which is starting from today.

In the global market, dollar fell against most of its rivals yesterday on weaker-than-expected US data on housing and manufacturing sectors. Meanwhile, the BSE Sensex was quoted lower by 141.83 points or 0.52 percent in the late morning deals.

1:55 pm Result: Yuan devaluation and seasonal issues led to tepid growth in the second quarter, Satish Jamdar, Managing Director (MD) of Blue Star told CNBC-TV18. The company's total income grew 11.58 percent to Rs 717 crore and earnings before interest, tax, depreciation and amortization (EBITDA) fell 24 percent to Rs 27 crore. The company also had an exceptional loss of Rs 15.80 crore on account of voluntary retirement scheme.

1:45 pm Focus on Africa: Ahead of India-Africa Forum Summit, IAFS, which is to be held on Thursday, Union finance minister Arun Jaitley said the relationship between the two countries have grown manifold and hence India is eyeing new opportunities for trade and economic cooperation with the resource-rich nation. Speaking about the country's annual trade with Africa, which has grown to USD 72 billion but lags China's USD200 billion, the finance minister said India has decided to set up a project development company in Africa. The India-Africa Summit is the largest gathering of foreign dignitaries in over three decades. India has invited all the 54 African nations to take part in the summit.

1:30 pm Exclusive: The Finance Ministry is considering repealing the controversial retrospective tax, sources tell CNBC-TV18. Retrospective or retro tax, laid down by the UPA government, enables the government to raise tax demands on earlier or long concluded deals. In 2014, the Finance Minister Arun Jaitley had ruled out resorting to retrospective tax amendment. Minister of State Jayant Sinha has been assigned the task to find a solution and is expected to seek help from an expert committee to look into the tax matter. The companies are looking at more groundwork on the issue than just a verbal assertion by the government to end retro tax era.

The market is struggling with the Nifty still below 8250 mark. The 50-share index is down 32.65 points or 0.4 percent at 8227.90. The Sensex is down 105.69 points or 0.4 percent at 27256.27. About 1108 shares have advanced, 1339 shares declined, and 135 shares are unchanged.

Sun Pharma, Maruti, HDFC Bank, Bajaj Auto and Wipro are top gainers while Lupin, ONGC, HDFC, Tata Steel and BHEL are losers in the Sensex.

Asian stocks turned mixed as mainland markets reversed their losses but lower oil prices still weighed on regional resource firms.

Traders paid attention to Chinese industrial profits data for hints on the chances of further monetary stimulus following Beijing's interest rate cut on Friday. Profits slipped 0.1 percent on year in September, from an 8.8 percent tumble in the previous month, but despite the monthly improvement, economists were pessimistic.

12:58 pm Market Update: Equity benchmarks remained under pressure with the Sensex down 95.48 points to 27266.48 and the Nifty falling 29.60 points to 8230.95.

ONGC (-3 percent), Lupin (-3 percent), HDFC (-3 percent) and Vedanta (-2 percent) were the big losers in the Nifty. Other laggards in the index were Hero Motocorp (-1 percent), Tech Mahindra (-1 percent), Cipla (-1 percent) and Bank of Baroda (-1 percent).

Gainers included Sun Pharma (1 percent), BPCL (1 percent), Idea Cellular (1 percent) and Maruti Suzuki (1 percent).

Bajaj Finserv (4 percent), Ipca Labs (3 percent), IRB Infra (3 percent), JSW Energy (3 percent) and Torrent Power (2 percent) were the big winners in the midcap space. Other notable gainers included Gujarat Pipavav (2 percent), HDIL (2 percent), Bharat Electronics (2 percent), Divis Labs (2 percent) and Union Bank (2 percent).

Brent crude was down 0.9 percent to USD 47.12/barrel and Nymex crude declined 1.3 percent to USD 43.41/barrel.

In Asia, Hang Seng was down 0.2 percent and Nikkei fell 0.9 percent while Shanghai reversed losses, up 0.14 percent.

12:45 pm Buzzing: Shares of DEN Networks rallied more than 8 percent intraday after the Reserve Bank of India has approved hike in FII investment limit.

The Reserve Bank of India on Monday notified that foreign institutional investors/registered foreign portfolios investors can now invest up to 74 percent of paid up capital of the company under portfolio investment scheme.

The cable TV distribution company has passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for enhancing limit for purchase of its equity shares and convertible debentures by FIIs/RFPIs.

12:30 pm Bharat Forge on Europe: Bharat Forge said it is reorganising operations of its European subsidiaries to reduce costs and facilitate tax and fiscal consolidation.

"...with a view to streamline the operations of European subsidiaries of the company, CDP Bharat Forge GmbH, Germany (CDP BF), a direct subsidiary of the company in Germany, has undertaken a corporate reorganisation along with its subsidiaries," the company said in a filing to the BSE.

Such restructuring will facilitate fiscal consolidation, tax consolidation, efficient management and reduction in cost of compliance, it added.

"This restructuring will not have any adverse impact on the consolidated financial of the company," it said further. Bharat Forge said that in relation to the new structure, the consequent changes (including legal) to the other entities within the group are being implemented.

12:15 pm India-Africa biz: India wants its economy to grow much faster, Finance Minister Arun Jaitley said, as Asia's third-largest economy eyes new opportunities for trade and economic cooperation with Africa.

"India today aspires to grow much faster. We are not satisfied with present growth rates," Jaitley told a seminar held before a major India-Africa summit to which all of the continent's 54 countries have been invited.

India has decided to set up a project development company in Africa, Jaitley said in a speech to the event organised by Exim Bank. India's annual trade with Africa has grown to USD 72 billion but lags China's USD 200 billion.

12:00 pm Market Check
The market continued to see downtrend in noon trade, tracking nervousness in Asian peers despite China's surprise rate cut last week. The Sensex fell 105.97 points to 27255.99 and the Nifty declined 30.30 points to 8230.25.

The market breadth was also in favour of declines with ratio of 1010:1305 on the Bombay Stock Exchange.

Sun Pharma topped buying list on Sensex, up 1.4 percent followed by HDFC Bank, Maruti, Wipro, Tata Motors, Bajaj Auto and SBI with marginal gains.

HDFC, Lupin, ONGC and Tata Steel were top losers in trade, down 2-3 percent.

11:55 am New IPO? Mortgage lender HDFC said it is likely to go for public listing of its life insurance subsidiary in mid-2016 once its joint venture partner Standard Life hikes stake to 35 percent. In August, the leading housing finance provider had announced that Standard Life will increase its stake in the JV, HDFC Life, to 35 percent from 26 percent, currently.

11:45 am Outlook: Corporate earnings have been impacted by slowdown in rural economy, lackluster monsoon and competition from online retailers, BP Singh of Pramerica Mutual Fund told CNBC-TV18. Singh expects the non-dollar exposure companies to come out with weak set of second quarter earnings. Currently, steel and commodity companies are suffering, he adds. Pharmaceutical companies need to be looked at from yearly view and on basis of an Abbreviated New Drug Application (ANDA) approvals rather from quarter-on-quarter results, Singh said. Singh is positive on the top five pharmaceutical companies and expects good earning numbers from them.

11:30 am Boardroom: Indian mortgage lender Housing Development Finance Corporation (HDFC) posted better-than-expected standalone net profit in September quarter, up 18.2 percent to Rs 1,605 crore from Rs 1,357.6 crore in year-ago period. The miss in the quarterly numbers came on the net intrerest income (NII) front with the interest rising 6.2 percent year-on-year to Rs 2,076.2 crore and calculated NII increased 6.8 percent to Rs 2,005.5 crore in the quarter gone by. Net interest income is the difference between interest earned and interest expended. Speaking to CNBC-TV18, Keki Mistry, vice chairman and managing director, says the lower NII figure is due to a softer interest rate environment in the country.

The market continues to slip as the Sensex is down 143.68 points or 0.5 percent at 27218.28. The Nifty slips 39.85 points or 0.5 percent at 8220.70. About 896 shares have advanced, 1181 shares declined, and 101 shares are unchanged.

Sun Pharma, Maruti, Bajaj Auto, NTPC and Dr Reddy's Labs are top gainers while ONGC, HDFC, Lupin, Vedanta and Tata Steel.

Oil prices fell, on course for a third week of losses as US inventory data is expected to show another increase in crude stocks. US commercial crude oil stockpiles likely rose for a fifth straight week, by an average of 3 million barrels to 479.6 million, in the week ended Oct. 23, a preliminary Reuters survey taken ahead of industry and official inventory data.

10:59 am Market Update: Equity benchmarks continued to be under pressure with the Sensex falling 130.36 points to 27231.60 and the Nifty declining 38.60 points to 8221.95.

About 905 shares have advanced, 1177 shares declined, and 108 shares are unchanged on the BSE.

10:50 am Interview: Indian mortgae lender Housing Development Finance Corporation (HDFC) posted better-than-expected standalone net profit in September quarter, up 18.2 percent to Rs 1,605 crore from Rs 1,357.6 crore in year-ago period .

The miss in the quarterly numbers came on the net intrerest income (NII) front with the interest rising 6.2 percent year-on-year to Rs 2,076.2 crore and calculated NII increased 6.8 percent to Rs 2,005.5 crore in the quarter gone by. Net interest income is the difference between interest earned and interest expended.

Analysts expected NII to grow 17 percent at Rs 2,197.2 crore for July-September quarter.

Speaking to CNBC-TV18, Keki Mistry, vice chairman and managing director, says the lower NII figure is due to a softer interest rate environment in the country.

While the company sold lesser loans in Q2, the demand in housing segment, Mistry says is strong.

Furthermore, Mistry says the non-individual loans slowed down in Q2, but he expects a demand to return in the next two quarters as the economy picks up.

10:30 am Earnings Poll: TVS Motor Company 's July-September quarter profit is likely to grow 12 percent year-on-year to Rs 106.9 crore and revenue may increase 5 percent to Rs 2,816.5 crore, according to analysts polled by CNBC-TV18.

Analysts expect this quarter performance to be weak due to tepid volume growth. The company sold 6.78 vehicles in Q2FY16, higher by 0.4 percent compared to 6.76 lakh vehicles sold in year-ago period. Strong export growth was offset by weakness in domestic volumes.

Export volumes grew by 23 percent Y-o-Y while domestic volumes declined 3.6 percent to 5.52 lakh units. Analysts expect realisations to improve 5.1 percent on yearly basis to Rs 41,694 per unit due to falling raw material cost.

10:15 am Market Expert: What global markets want at this point is some fiscal stimulus from China, says Andrew Holland of Ambit Investment Advisors. "If China can somehow stabilise, that is all the uplift that the markets will need," he told CNBC-TV18. He says the market did not take China lowering rates positively.

As far as the earnings season in India is concerned, Holland is fairly encouraged by it. He says though the topline growth in the second quarter has been subdued, margin expansion has been encouraging. He sees this helping companies in the following year as well.

10:00 am Market Check
The market remained under pressure with the Sensex falling 86.42 points to 27275.54 and the Nifty declining 25.95 points to 8234.60. HDFC continued its downtrend, losing another 2.4 percent after net interest income missed analysts' expectation in September quarter.

Lupin and Vedanta lost 1.5-2 percent ahead of second quarter earnings, which are expected to be subdued. Maruti Suzuki will also announce its earnings; stock gained nearly 1 percent as analysts expect company to report strong set of numbers in the quarter gone by.

ONGC, Coal India, Tata Steel and Hindalco declined 1-2 percent while L&T, Sun Pharma, M&M and Bajaj Auto gained more than 0.5 percent.

The market breadth was negative as about 903 shares declined against 829 advancing shares on the BSE. The broader markets continued to be flat.