Sensex, Nifty end lower for 5th day; ICICI Bank, NTPC gain
30 October 2015
3:30 pm Market closing: The market ended on a lower note for fifth consecutive day. The Sensex plunged 181.31 points or 0.7 percent at 26656.83 and the Nifty was down 45.95 points or 0.6 percent at 8065.80. About 1002 shares advanced, 1602 shares declined, and 201 shares were unchanged.
NTPC, ICICI Bank, Axis Bank, Dr Reddy and Sun Pharma were top gainers while Vedanta, L&T, M&M, ITC and BHEL were laggards.
2:55 pm FinMin reviews PSUs'capex programme: Pushing for investments and growth, government reviewed the capital expenditure programme of state-owned companies and impressed upon them to complete projects in the remaining part of the fiscal.
The pipeline of projects and investment plans involving 32 PSUs were reviewed at a meeting chaired by Finance Minister Arun Jaitley. It was attended by CMDs of major PSUs including NTPC, IOC and Coal India and senior officials of the Finance Ministry.
"Most PSUs are on track to meet their capex plan for the year. There are some who are lagging, we expect them to cover up in the remaining of the year," Finance Ministry sources said after an hour long meeting.
2:45 pm Gold: Tracking a weak trend overseas and slackened demand from jewellers, gold prices slipped below the Rs 27,000-mark by plunging Rs 245 to trade at over two-week low of Rs 26,830 per 10 grams at the bullion market.
Silver also cracked below Rs 37,000 by falling Rs 735 to Rs 36,630 per kg on reduced offtake by industrial units and coin makers.
Sentiments dampened after the precious metal held at three-week low in global market as investors assessed the strength of the US economy, with bets rising that the Federal Reserve will start to hike interest rates from December, traders said.
2:30 pm Result: Engineering and construction major Larsen and Toubro's (L&T) consolidated profit after tax increased 15.5 percent year-on-year to Rs 996 crore in July-September quarter, boosted by other income.
Revenue grew by 10.6 percent to Rs 23,393 crore from Rs 21,159 crore in same period.
Numbers were more or less below expectations for the quarter. According to analysts polled by CNBC-TV18, profit was estimated at Rs 944 crore and revenue of Rs 23,409 crore for the quarter with operating profit growth of 14 percent and margin expansion of 40 basis points.
The market has fallen sharply as index heavyweights drag benchmark indices reacting to weak September quarter results. After a much struggle, the Nifty breaks 8100. The 50-share index is down 15.90 points at 8095.85. The Sensex is down 102.59 points or 0.38% at 26735.55. About 1140 shares have advanced, 1298 shares declined, and 190 shares are unchanged.
ITC slips 5 percent. Vedanta, M&M, ONGC and GAIL are major losers. NTPC, Hindalco, Tata Steel, Dr Reddy's Labs and Sun Pharma are top gainers.
In a major relief to the three major power distribution companies in Delhi - including Tata Power , Reliance Infra -promoted power distribution companies and BSES twins BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd - the Delhi High Court has upheld the discoms' plea against a CAG audit.
According to the high court order, Comptroller and Auditor General (CAG) does not have the jurisdiction or power to audit accounts of private discoms. In its draft audit report in August this year, CAG had reportedly said that BSES Yamuna, BSES Rajdhani and Tata Power Delhi Distribution Ltd had inflated their previously incurred losses.
1:50 pm Debt securities: Leading bourse National Stock Exchange (NSE) will on Monday auction investment limits for foreign investors to buy government debt securities worth Rs 852 crore. The auction will be conducted on NSE's ebid platform from 1530 hours to 1730 hours, after the close of market hours on Monday, November 2, the exchange said in a circular. The debt auction quota gives overseas investors the right to invest in the debt, up to the limit purchased.
A mock bidding session will be conducted today to check the system performance. Depository data showed that total investments, including limits acquired by foreign investors through the auction route, stood at Rs 1,29,048 crore till October 29, which is 99.34 percent of the total permitted investment limit of Rs 1,29,900 crore in government debt securities.
1:40 pm Expert react to draft civil aviation policy: Civil aviation experts have lauded the draft civil aviation policy on its intent and comprehensiveness. At the same time, they said feasibility and implementation will be critical for the success of the new policy.
Speaking to CNBC-TV18, Jitendra Bhargava, former Air India Executive Director says the stance on 5:20 rule for international flights would any which way be contentious. That is because older carriers would be unhappy about the new entrants having it easy on international flying.
''There is a need to abolish it (5:20 rule), there is no denying the fact,'' he says.
''But the question is, since existing players have to gone through it, should new players benefit,'' he says.
1:30 pm Results: ICICI Bank 's July-September quarter earnings matched analysts' expectations on Friday with profit rising 11.8 percent year-on-year to Rs 3,030 crore. Net interest income increased 12.8 percent to Rs 5,252 crore from Rs 4,656.6 crore year-on-year.
The country's largest private sector lender says its board of directors today approved sale of 9 percent stake in insurance company ICICI Lombard to Fairfax Fin. Transaction values its insurance company at Rs 17,225 crore.
Dragged by weak corporate earnings, the market is sliding further. The Sensex is down 56.87 points at 26781.27 and the Nifty slips 6.25 points at 8105.50.
About 1188 shares have advanced, 1182 shares declined, and 169 shares are unchanged.
ITC tanks over 4 percent, followed by Vedanta, M&M, GAIL, and ONGC. NTPC is up 5 percent while Hindalco, Tata Steel, Dr Reddy's Labs and ICICI Bank are top gainers in the Sensex.
Ajay Srivastava, chief executive officer, Dimensions Consulting says this is the best time to exit stocks that have disappointed on their quarterly numbers,
Speaking to CNBC-TV18, Srivastava says the current quarterly earnings (Q2) have been so far indifferent and hence, the time is ripe to exit badly performing stocks. The exit strategy is also based on his the belief that the market environment won't be improving until atleast Q1FY17.
12:30 pm Aviation policy: Unveiling the much-awaited draft civil aviation policy, the government on Friday proposed tax incentives for airlines, maintenance and repair works of aircrafts besides mooting 2 percent levy on all air tickets to fund regional connectivity scheme.
In a significant move, the Civil Aviation Ministry has pitched for over 50 percent Foreign Direct Investment (FDI) in domestic carriers in case the open skies policy is implemented. Under open skies policy, overseas airlines can operate unlimited number of flights into and out of India.
At present FDI limit is 49 percent. Presenting the revised draft national aviation policy here, Civil Aviation Secretary R N Choubey said the ministry has proposed 2 percent levy on all domestic and international tickets for regional connectivity scheme. "The government expects about Rs 1,500 crore annually from charging 2 percent levy" Choubey added.
12:15 pm IPO news: PNB Housing Finance has hired banks including Barclays, JPMorgan and Morgan Stanley for a Rs 2,500 crore (about USD 385 million) initial public offering, IFR reported today, citing two sources close to transaction.
Indian investment banks Kotak and JM Financial will also advise PNB Housing in the planned IPO, slated for the first half of 2016, IFR, a Thomson Reuters publication, said.
State-run Punjab National Bank owns a 51 percent stake in PNB Housing, while Carlyle Group owns the remainder.
12:00 pm Market Check
The market remained marginally higher in noon trade with the Nifty inching up towards 8150. ICICI Bank and ITC gained more than 1 percent ahead of second quarter earnings while ITC lost nearly 2 percent.
The Sensex rose 63.30 points to 26901.44 and the Nifty gained 23.55 points at 8135.30. About 1278 shares have advanced, 1003 shares declined, and 164 shares are unchanged on the BSE.
The BSE Midcap gained 0.7 percent, outperforming benchmarks.
11:55 am Result boardroom: FMCG major Emami reported a 32.97 percent decline in consolidated net profit at Rs 61.34 crore for Q2 on account of amortisation of Kesh King intangibles. Speaking to CNBC-TV18, chief financial officer NH Bhansali, says a strong summer season had an impact on its sales. While the demand in rural and urban India continues to be mixed, Bhansali is hopeful of logging a decent Q3, Q4 on a strong winter season. After its acquisition of hair and scalp brand Kesh King in Q1, Bhansali says the company is open to more such deals.
11:45 am Moody's view on Modi: Against the backdrop of controversies like on beef, Moody's Analytics cautioned Prime Minister Narendra Modi that the country may lose domestic and global credibility if he doesn't rein in the members of his party.
In a report titled India Outlook: Searching for Potential, Moody's Analytics said for the country to reach its growth potential it has to deliver the promised reforms. "Undoubtedly, numerous political outcomes will dictate the extent of success," it said.
The ruling BJP does not have a majority in the Rajya Sabha and crucial reforms bills has been met with an obstructionist opposition. "But in recent times, the government also hasn't helped itself, with controversial comments from various BJP members.
11:30 am Draft aviation policy: With a view to popularise air travel among the middle class, the draft civil aviation proposes to boost regional connectivity and cap airfares for one hour flights between small cities at Rs 2500 per passenger. There will be no frills airports in smaller cities with the government reviving unused airports-many of them from the time of World War II-and spending Rs 50 crore per airport. To help airline companies keep their costs down, the draft policy has proposed that aviation turbine fuel drawn from regional connectivity airports be exempted from custom duty. Also, the policy has proposed waiver of service tax on maintenance, repair and overhaul (MRO) expenses incurred by airline companies.
The market is treading up slightly as the Sensex is gains 55.86 points at 26894. The Nifty up 23.15 points or 0.3 percent at 8134.90. About 1219 shares have advanced, 895 shares declined, and 126 shares are unchanged.
NTPC, Dr Reddy's Labs, Bharti Airtel, ICICI Bank and Hindalco are top gainers in the Sensex. Among the losers are Vedanta, ITC, ONGC, Tata Motors and Infosys.
Analysts said the fall in crude oil futures is mostly in step with a sluggish trend in Asian trade as a midweek rally dissipated with no relief in sight to a global crude oversupply. Prices surge driven by bargain-hunting and a below-forecast rise in US commercial crude inventories, but concerns over the supply glut soon resurfaced as output levels remain elevated.
10:40 am IDFC Bank listing: IDFC said that shares of its newly launched IDFC Bank are expected to list and trade on November 6.
"Shareholders will have to wait for IDFC Bank shares to list and trade to evaluate the value of their combined IDFC and IDFC Bank shareholding," it said in a release.
The release follows email sent to shareholders and bondholders today updating them about impact of demerger of its financial unit into a separate bank company.
On October 1, 2015, it transferred all assets and liabilities of its lending business (Financing Undertaking) to IDFC Bank Limited and simultaneously launched the Bank.
However, the formal inauguration was on October 19. It said post demerger, its networth stands at Rs 9,580 crore.
10:20 am Interview: Bharat Forge will achieve its 2018 revenue guidance on the back of very strong technology driven order pipeline and new innovative products says Amit Kalyani, Executive Director of the company.
Speaking to CNBC-TV18, Kalyani says he expects maximum softness in the export segment in the third quarter and is hesitant to give an outlook on exports due to volatility.
On the Europen market, Kalyani says the company has grown 6-7 percent in the region. However, the outlook remains soft due to immigrant issues and fragile economic conditions, he adds.
Meanwhile, he expects maximum growth recovery in North America and India in the near future.
The market is finding difficult to hold feet as weak corpoarte earnings dent sentiment. The Nifty is struggling to hold 8100 as November F&O series. The 50-share index is down 4.25 points at 8107.50 and the Sensex slips 15.18 points at 26822.96.
NTPC, Dr Reddy's Labs, ICICI Bank, Cipla and Sun Pharma are top gainers while Vedanta, ONGC, Tata Motors, M&M and Infosys are among losers in the Sensex.
Gold held near its lowest in three weeks and looked set to post its worst week in two months on expectations that the Federal Reserve would raise US interest rates this year.
More downside is expected, analysts and traders said, with the looming US rate hike set to hit demand for the non-interest-paying asset, and also as the technical picture has weakened. Gold has been under pressure after the Fed on Wednesday surprised with a direct reference to its next policy meeting as a possibility for the first US rate hike in nearly a decade.
9:55 am Debt repayment: Jet Airways said it has repaid loans worth Rs 558 crore in the September quarter and expects its debt burden to come down as business improves.
However, the leading carrier anticipates its debt to be marginal higher before tapering off. The airline saw its net profit jump 25 percent to Rs 87.59 crore in the July-September period.
During an analysts call today, Jet Airways' senior executive Ravichandran Narayan said its net debt stood at Rs 11,171 crore at the end of September.
9:45 am Market outlook: Sakthi Siva, Credit Suisse says MSCI India has underperformed MSCI Asia ex-Japan by 7.6 percent since the highs on August 21. According to her, India has always underperformed MSCI Asia ex-Japan when its premium reaches 50 percent as it did in March 2006, December 2007, January 2015 and again in August 2015.
Siva says India's 2015 consensus EPS downgrades of 17 percent are double the regions. "India's current ROE is 13.8 percent but implied ROE is 19.1 percent, we reiterate underweight call on India," she adds.
9:30 am Earnings: Glenmark Pharmaceuticals reported 19.81 percent increase in consolidated net profit to Rs 197.78 crore for the second quarter ended September 30, driven by good growth in India, US and Europe. The company had posted consolidated net profit of Rs 165.07 crore in the July-September quarter of the last fiscal, 2014-15, Glenmark said in statement.
For the second quarter, consolidated revenue was at Rs 1,909.36 crore, as against Rs 1,680.70 crore, up 13.60 percent, it added. Glenmark Chairman & MD Glenn Saldanha said: "We have recorded good overall growth in the quarter powered by our India, US and Europe businesses."
He said devaluation of currencies across emerging markets; especially in countries like Brazil and Russia had an adverse effect on the company's operations.
"Going ahead, we expect our India, US and Europe businesses to continue to drive growth for our company," Saldanha added. The stock rallied 4 percent.
9:15 am Market Check
After a four-day weakness, the market has opened November F&O series on a lacklustre note. The Sensex rose 15.21 points to 26853.35 and the Nifty gained 7.60 points at 8119.35.
Dr Reddys Labs, Cipla, ICICI Bank, Tata Steel, Hindalco, Yes Bank and Grasim were lead gainers in early trade. However, Vedanta, ONGC, ITC, M&M, Maruti Suzuki and Bosch were under pressure.
The Indian rupee opened with marginal gain of 3 paise at 65.26 per dollar today versus 65.29 Thursday.
Pramit Brahmbhatt of Veracity said, "Strength in dollar will keep rupee under pressure. Overnight, US market has traded low as weaker than expected US GDP data has further deepened concerns over global growth which may force local equity market to open weak."
He further added, "Rupee range for the day is seen between 64.80-65.80/dollar."
The euro edged up against the dollar following upbeat euro zone economic data, while the yen is flat ahead of the Bank Of Japan's monetary policy decision due later today.
Asian shares too posted a lackluster open today, with Australia's S&P ASX 200 index hitting its lowest level since October 21, following an uninspiring handover from offshore markets.
China's benchmark Shanghai Composite index ticked down 0.2 percent. Among other indexes, the blue-chip CSI300 traded flat, while the Shenzhen Composite edged down 0.2 percent.
In Hong Kong, China Huarong Asset Management opened flat in its stock market debut after raising USD 2.3 billion in the city's largest initial public offering (IPO) in 2015. The stock traded at its IPO price of HK$3.09. The Hang Seng index dropped 0.7 percent.
US stocks, meanwhile, ended slightly lower on Thursday as the market digested disappointing tech earnings reports and the potential for an interest rate hike in December. The Dow Jones industrial average fell 23.72 points, or 0.13 percent, to 17,755.8, the S&P 500 lost 0.94 points, or 0.04 percent, to 2,089.41 and the Nasdaq Composite dropped 21.42 points, or 0.42 percent, to 5,074.27.