Sensex ends up 309 points, Nifty tad below 7850; Reliance up 3%
17 December 2015
3:30 pm Market closing: The market ended higher in last hour hurried buying. The Sensex was up 309.41 points or 1.2 percent at 25803.78 and the Nifty gained 93.45 points or 1.2 percent at 7844.35. About 1925 shares have advanced, 764 shares declined, and 211 shares were unchanged.
Tata Steel was up 5 percent while Hindalco, Vedanta, Reliance and Bajaj Auto were gainers while ONGC, Lupin, GAIL and Axis Bank were laggards.
3:00 pm Market Update: Equity benchmarks extended rally in late trade with the Sensex rallying 308.80 points or 1.21 percent to 25803.17 and the Nifty rising 91.55 points or 1.18 percent to 7842.45.
2:45 pm Buzzing: Investors queued up for buying shares of Deccan Gold Mines on Thursday as the subsidiary will start drilling operations at its Karnataka blocks. The stock is locked at 10 percent upper circuit at Rs 32.65 on the BSE (at 14:29 hours IST) and there are pending buy orders of 285,377 shares, with no sellers available.
"Subsidiary Deccan Exploration Services (DESPL) plans to commence core and RC drilling at Ganajur-Karajgi PL and Mangalagatti PL blocks in Karnataka by third week of December 2015," says the company in its filing to exchange.
DESPL has entered into an agreement with South West Pinnacle Exploration for drilling services. It has proposed to undertake drilling program in a phased manner including 5000-7000 meters in phase-I.
2:25 pm Rupee check: Traders suspect The Reserve Bank of India (RBI) bought bonds and actively intervened in the rupee to support sentiment ahead of the US Federal Reserve's decision to raise interest rates, several market participants told Reuters.
The RBI was estimated to have sold USD 500 million to USD 1 billion today to prop up the rupee in the lead-up to the Fed meeting.
Traders also cited active buying of bonds in secondary markets over the previous few days. The suspected intervention was seen as unusual given that the rupee had already been trading stronger today, tracking gains in local shares, while bonds had also been gaining.
2:15 pm Market Expert: Vibhav Kapoor of IL&FS says with the Fed hiking rates, one big expected market mover event is now out of the way and the hike is done with atleast for the time being. He expects the next hike to take place in March.
On the domestic front, Kapoor says the Nifty will bottom out around levels of 7300-7500, adding that he doesn't expect the current midcap to continue outperforming.
2:00 pm Market Check
Equity benchmarks gained momentum again in afternoon trade, getting support from index heavyweights Reliance Industries and HDFC twins. A 2 percent rally in European markets following first interest rate hike by the US Federal Reserve in almost a decade also supported Indian equities.
The 30-share BSE Sensex rallied 196.60 points or 0.77 percent to 25690.97 and the 50-share NSE Nifty rose 64.30 points or 0.83 percent to 7815.20. The market breadth was strong as nearly 4 shares advanced for every share declining on the National Stock Exchange.
Reliance Industries, HDFC Bank, HDFC, Infosys, SBI, Sun Pharma, L&T, Bajaj Auto, Hindalco and Hero Motocorp rose 1-2 percent. Tata Steel was up 3.4 percent. ONGC, Axis Bank and Lupin were only losers.
1:45 pm Debt reduction: Conglomerate GVK said its subsidiary GVK Airport Developers is exploring various options, including possible initial share sale, to reduce debt burden. GVK Airport Developers handles the airport business of the group. It is the developer of the Mumbai and Bangalore airports. The airport arm is believed to have more than Rs 3,000 crore debt. "GVK Airport Developers Ltd, a wholly-owned subsidiary of our company has been exploring various options, over a period, to raise funds through PE investors, an IPO among others etc, to reduce its debt burden," GVK Power and Infrastructure said in a filing to the BSE.
1:30 pm Buzzing: Shares of InterGlobe Aviation jumped 3 percent intraday, extending its rally. The owner of low-budget airline company has been quite favoured by analysts and investors as it has given around 61 percent returns in about a month time of listing on November 10. It touched record high at Rs 1234 per share on December 16.
Now, Morgan Stanley has initiated coverage on IndiGo owner company with a equalweight rating. It expects IndiGo to post strong earnings growth in near-term stating that it is among the world's best run airlines and crude oil prices at a seven-year low to give additional boost.
The market is flat as the Sensex is up 18.97 points at 25513.34, and the Nifty is up 6.35 points at 7757.25. About 1651 shares have advanced, 843 shares declined, and 204 shares are unchanged.
Tata Steel, Hindalco, Hero MotoCorp, Sun Pharma and SBI are top gainers while ONGC, Lupin, Axis Bank, Maruti and ITC are major losers.
India is not immune to potential market jitters on account of interest rate hike by the US Fed, but favourable economic growth outlook makes it attractive for foreign investors, Fitch Ratings today said.
The country's less dependence on exports and improved external balances make it better placed than many of its peers, it said. "India is not immune to potential general emerging market jitters related to the Fed lift-off, but it is better placed than many of its peers for a number of reasons," said Thomas Rookmaaker, Director, Sovereign Ratings, Fitch Ratings.
The US Federal Reserve had last night hiked interest rates by 0.25 percent. This is the first hike in about a decade, signalling a recovery in the US economy. "India's favourable economic growth outlook makes India relatively attractive for foreign investors," he said.
12:58 pm Market Update: Equity benchmarks remained lacklustre as investors digested Federal Reserve's interest rate hike (the first hike since June 2006).
The Sensex declined 21.50 points to 25472.87 and the Nifty fell 5.25 points to 7745.65. About 1618 shares have advanced, 826 shares declined, and 207 shares are unchanged on the BSE.
12:45 pm Buzzing: Shares of JMC Projects climbed 11 percent intraday on getting building projects in Bangalore and Hyderabad.
"The company has secured orders worth over Rs 1,050 crore, including a flyover project in Bhiwandi from MMRDA worth Rs 150 crore," says the civil engineering & EPC company in its filing to exchange.
It has also received five building projects in Bangalore worth Rs 794 crore and one building project in Hyderabad worth Rs 110 crore.
JMC Projects is a subsidiary of Kalpataru Power Transmission.
12:32 pm Interview: Dairy giant Kwality has roped in bollywood actor Askhay Kumar as brand ambassador for all their products. Nawal Sharma, president & head business, Kwality Limited, says this would help Kwality successfully transition into a strong B2C--companies that sell directly to consumers--brand.
The company currently earns 30 percent of its revenues from its B2C business. It aims to enhance the B2C share by launching around 15 value added products in the next 12 to 18 months.
Sharma says that Kwality is currently operating at 6 percent margin. He promises that the company will see a huge jump in profitability after the launch of its value added products. He did not disclose any financial details.
12:16 pm Asia Update: Asian stock markets closed in positive territory, taking cues from a positive finish in Wall Street overnight after the Federal Reserve raised its target federal funds rate to a range of 0.25 to 0.5 percent.
The Australian market finished higher, with the main ASX 200 index adding 74 points, or 1.46 percent, to 5,102. Most sectors on the ASX closed in the green.
12:00 pm Market Check
Equity benchmarks continued to consolidate but the broader markets outperformed with the BSE Midcap and Smallcap indices rising 0.7-1 percent. Metals and pharma stocks gained while FMCG and select auto stocks remained under pressure.
The 30-share BSE Sensex fell 0.84 points to 25493.53 and the 50-share NSE Nifty rose 1.60 points to 7752.50. The market breadth was positive as about 1593 shares advanced against 744 declining shares on the BSE.
11:55 am Realty woes: The government will consider the real estate industry's demand to remove double taxation on developers who have to pay both labour cess as well as PF/ESI, Labour Minister Bandaru Dattatreya said. Addressing a conference organised by realtors' apex body Credai, the minister also expressed concern over huge amount of labour cess being unutilised. Around Rs 16,000 crore is lying in the treasuries of the state governments, he added. The industry has raised the issue of duplication of taxes for carrying out labour welfare, he said.
11:45 am FII view: Sanjeev Prasad of Kotak Institutional Equities expects some more earnings downgrades going into the fourth quarter. In an interview with CNBC-TV18, Prasad says the rate hike by the Fed and its commentary were both on expected lines. Prasad sees the the market giving 10-15 percent returns over the next 12 months, as the ongoing reforms slowly translate into an economic recovery. He expects the Sensex earnings multiple of 15 times FY17 earnings to hold because of improving macros.
11:30 am Shopping: The Cabinet approved ONGC Videsh buying 15 percent stake in Russia's Vankor oilfield for USD 1.26 billion, the first oil deal since the Narendra Modi-led government came to power. OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), will get 4 million tonnes of oil and oil equivalent gas for the stake in Vankorneft, the developer of the Vankor oil and gas condensate field in Turukhansky district of Krasnoyak Territory in Russia.
The market has gone back to yesterday's levels after intial jump in early trade. The Nifty is 7750.90 and the Sensex is down 4.38 points at 25489.99.
Tata Steel, Hindalco, SBI, Vedanta and Bajaj Auto are top gainers while ONGC, M&M, Maruti, Axis Bank and Tata Motors are major losers in the Sensex.
The impact of the US interest rate hike should be minimal in India as the country is relatively well cushioned, Chief Economic Adviser Arvind Subramanian said on Thursday.
Policy makers, including Reserve Bank of India Governor Raghuram Rajan, have been touting India as being more insulated to Fed-related volatility than other emerging markets due to its better economic fundamentals.
"I think we are relatively well cushioned. Volatility in Indian markets should be quite minimal," Subramanian told reporters.
The Fed hiked interest rates for the first time in nearly a decade on Wednesday, signaling faith that the US economy had largely overcome the wounds of the 2007-2009 financial crisis.
10:55 am Market flat: Equity benchmarks continued to consolidate after early trade rally. The Sensex rose 20.06 points to 25514.43 and the Nifty gained 8.80 points at 7759.70.
About 1517 shares have advanced, 595 shares declined, and 173 shares are unchanged on the BSE.
10:40 am Asia Update: Asian stock markets traded in positive territory, taking cues from a positive finish in Wall Street overnight after the Federal Reserve raised its target federal funds rate to a range of 0.25 to 0.5 percent.
China's Shanghai Composite and Japan's Nikkei gained more than 1.5 percent followed by Hong Kong's Hang Seng with 0.8 percent upside.
10:30 am M&M falls again: The stock lost 1.5 percent after losing more than 5 percent in previous session after the Supreme Court put a ban on diesel vehicles (having a engine capacity of more than 2000cc) in Delhi.
While reacting to the news, Mahindra and Mahindra says vehicles affected by diesel vehicle ban represent 2 percent of monthly sales.
Executive Director Pawan Goenka says 2 percent loss will be reversed on the back of strong sales after ban is lifted.
"We are looking at options to see what we can do with engines under development. Currently we are working on 2.2 litre diesel engines at MRV facility in Chennai. We will look at redesigning products to bring them below 2 litre capacity," he details his plan.
10:15 am FII View: David Bloom, HSBC says the Federal Reserve delivers a dovish hike which should be easy for the emerging markets to digest.
He does not expect large reaction from Asian currencies. He feels dot plot was unchanged for 2016 suggesting 4 rate hikes.
Bloom sees a more supportive environment for the high-yielding rupee.
10:00 am Market Check
The market erased early gains on profit booking after pricing in Federal Reserve's rate hike. It rallied in previous three consecutive sessions ahead of Fed meet outcome. The Sensex erased more than 170 points gains from day's high and Nifty 50 points gains from intraday high.
The 30-share BSE Sensex fell 0.88 points to 25493.49 and the 50-share NSE Nifty rose 1.60 points to 7752.50. The broader markets continued to outperform benchmarks with the BSE Midcap and Smallcap indices rising 0.5-0.8 percent.
The market breadth was positive as about 1416 shares advanced against 517 declining shares on the BSE.
9:55 am Market check: The Sensex is up 68.11 points or 0.3 percent at 25562.48, and the Nifty is up 20 points or 0.3 percent at 7770.90. About 1386 shares have advanced, 420 shares declined, and 96 shares are unchanged.
SBI, Tata Steel, GAIL, Hindalco and Vedanta are top gainers while ONGC, M&M, HDFC, Infosys and Maruti are losers.
9:45 am GST logjam: In a fresh bid to break the logjam on the crucial GST Bill, the government is contemplating holding an all-party meeting soon as it is confident of the support of a larger number of Opposition parties on the issue. There is a view within the government that Congress is "single-handedly" blocking the passage of the GST Bill for "other reasons" and may not find support of many parties on this issue on a common forum. Government sources said that a senior leader from the opposition camp had also suggested convening of an all-party meeting to break the logjam over the issue.
9:30 am Market outlook: Market expert Samir Arora of Helios Capital says one shouldn't worry far too much about the Fed hike, despite worries of capital moving from emerging market (EMs) to Developed Markets (DMs) to attract higher rates. Arora says this shift of funds is unlikely to actually happen, further adding that even if one does go by historic data 17 consecutive Fed hikes augured well for India, so that scenario could still pan out in India's favour. The US Fed between 2004 and 2006 raised interest rates 17 times from - 1 percent to in June 2004 to 5.25 in June 2006. This coincided with a period of high growth in Indian economy alongwith relatively low interest rate regime.
Boosted by strong global cues, the market has opened strong after Federal Reserve has hiked interest rates after nine years. The Nifty is up 45.40 points or 0.6 percent at 7796.30 and the Sensex is up 150.63 points or 0.6 percent at 25645. The 50-share index touched 7800 in early trade. About 822 shares have advanced, 139 shares declined, and 31 shares are unchanged.
GAIL, SBI, NTPC, Sun Pharma and Vedanta are top gainers while ONGC, M&M, Coal India, HDFC and HUL are major losers in the Sensex.
The US Federal Reserve hiked its benchmark interest rate by 0.25 percent for the first time in a decade. The move, closely watched, across the globe is seen as a dovish commentary by Fed chairperson Janet Yellen.
Yellen said the Fed's monetary policy remains "accommodative" and there will be a "gradual" increase in Fed fund rates.
The Indian rupee has opened at 1-week high due to weakness in dollar. The currency rose 11 paise to 66.62 a dollar compared to 66.73 per dollar in previous session.
Mohan Shenoi, Kotak Mahindra Bank says with the uncertainty gone, EM equities and currencies are expected to rally today. He expects the USD-INR pair to trade today in a range of Rs 66.35-66.70/USD.
On bond market, Shenoi says the bond market is expected to rally on the back of rupee appreciation and absence of scheduled auctions in the rest of December. He expects the 10-year benchmark yield to trade today in a range of 7.68-7.73 percent.
Asian stock markets jumped as investors chose to take an historic hike in US interest rates as a mark of confidence in the world's largest economy, though the good cheer did not extend to oil where oversupply again pressured prices.
Crude futures rose recouping some of the losses from the previous session. Crude futures rose recouping some of the losses from the previous session.