Nifty ends at 7597, Sensex remains below 25000; pharma, IT drag
29 March 2016
3:30 pm Market Closing: Equity benchmarks ended lower again. The Sensex declined 65.94 points to 24900.46 and the Nifty fell 18.10 points to 7597.
The market breadth was weak as about two shares declined for every share advancing on BSE.
Reliance Industries, Tata Motors, Maruti Suzuki, Axis Bank and Bharti Airtel gained 1-3 percent while Lupin, HDFC, Sun Pharma, Dr Reddy's and TCS fell 1-6 percent.
3:25 pm BSE to suspend cos: Leading stock exchange BSE will suspend trading in the securities of eight companies from April 20 as they failed to comply with certain listing requirements.
In case they comply with the norms by April 14, they would not face trading suspension.
The firms that face suspension are Aviva Industries , Bio Green Papers , Kanika Infotech , Madhur Capital & Finance , Mahesh Agriculture Implements & Steel Forge , Santowin Corp , Vibros Organics and Vishwamitra Financial Services .
The exchange has also ordered freezing of the entire promoter shareholding of these companies from yesterday till further notice.
3:15 pm Rate cut likely?: Reserve Bank is likely to approach policy easing with caution and go for a measured cut next week amid recent bounce in global oil prices and partial implementation of a public sector wage bill, says a report.
The report by DBS said, a 25 bps cut is largely factored in with few quarters also discussing the possibility of a more aggressive 50 bps cut, but there is little scope of a bunched up move.
"Given the recent bounce in global oil prices, partial implementation of a public sector wage bill and indications that the US Fed might resume rate normalisation in April/June, we see little scope of a bunched up move," DBS said in a research note.
The declining inflation and negative industrial outlook have strengthened a case for RBI cutting interest rate in its first bi-monthly monetary policy for 2016-17 on April 5.
2:59 pm Market Update: The market continued to be volatile. The Sensex fell 54.47 points to 24911.93 and the Nifty declined 15.05 points to 7600.05. About 1603 shares declined against 952 advancing shares on BSE.
2:50 pm Morgan Stanley on Maruti: Morgan Stanley has maintained overweight rating on Maruti Suzuki, citing passenger vehicle segment recovery. However, the company slashed target price to Rs 4,310 (from Rs 4,770) following cut in earnings per share and EBITDA estimates due to recent duty hikes, slow pace of volume recovery and adverse forex movements.
It reduced its earnings per share estimates for FY16, FY17 and FY18 by 3 percent, 11 percent and 8 percent, respectively.
According to the brokerage, pace of passenger vehicle segment recovery is slow but car cycle should trend up in coming years. Rolling five-year CAGR for passenger vehicle segment is 2.1 percent for FY11-16 - this is the lowest in the last 20 years.
Morgan Stanley says Maruti is in the midst of a very strong model cycle, which it thinks can keep company's volume growth ahead of segment growth rates.
2:35 pm Buzzing: V2 Retail shares rallied nearly 11 percent intraday on opening three stores in northern part of India.
"V2 has launched three more operational stores - two in Uttar Pradesh (Gorakhpur & Azamgarh) and one in Purnia, Bihar," says New Delhi-based retail company.
Its Varanasi (Uttar Pradesh) store has been closed. Therefore currently its 20 stores are operational
The company says it has 2.3 lakh square feet of retail space, offering apparel and non-apparels.
2:20 pm FIIs inflow: Foreigners are estimated to have pumped USD 36.8 billion into emerging market stocks and bonds in March, the highest monthly inflow in nearly two years, the Institute of International Finance said today.
The Washington-based body, one of the most authoritative trackers of foreign capital flows to and from the developing world, said in a note that all four emerging market regions had received inflows, with Asia topping the list with USD 20.6 billion.
The inflow, the highest since June 2014, follows USD 5.4 billion received in February and is substantially above the 2010-2014 average of USD 22 billion, the IIF said. Bonds took in USD 18.9 billion and equities USD 17.9 billion, the data showed.
2:00 pm Market Check
Equity benchmarks remained choppy in afternoon trade with the Nifty hovering in a range of 7600-7650 ahead of expiry of March derivative contracts due on Thursday. European shares traded higher with the FTSE, CAC and DAX rising 0.5-1 percent.
The 30-share BSE Sensex rose 21.38 points to 24987.78 and the 50-share NSE Nifty climbing 7.05 points to 7622.15. About 1568 shares declined against 891 advancing shares on BSE.
Lupin shares trimmed some losses, falling 8 percent after getting a 483 letter from USFDA for Mandideep unit in Madhya Pradesh.
Among others, HDFC, Sun Pharma, Dr Reddy's Labs, GAIL, Cipla and NTPC were down 1-3 percent while Tata Motors topped buying list on Sensex, up 3.5 percent followed by Reliance Industries, Infosys, Maruti, Axis Bank, Adani Ports, SBI, Bharti Airtel, Tata Steel and Hindalco Industries with 1-3 percent upside.
1:40 pm Market Update: Nifty is likely to stay around 7,600 level in the near-term, says Deepak Shenoy of Capitalmind.in adding that this has been the largest up-move among expiries in recent times.
Speaking to CNBC-TV18, Shenoy says that: ''The options market data tells us that Nifty should perhaps expire at around 7,600 levels.''
However, he believes that these levels are still overvalued.
''It might go there (near the 7600 level) from a technical perspective, but it doesn't seem to have the fundamental strength,'' he adds.
1:20 pm Aurobindo in news: Drug firm Aurobindo Pharma has received final approval from USFDA to manufacture and market Rivastigmine Tartrate Capsules USP, used for the treatment of dementia disease, in the American market.
"The company has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Rivastigmine Tartrate Capsules USP, 1.5 mg, 3 mg, 4.5 mg and 6 mg," Aurobindo Pharma said in a BSE filing. The company said this product is expected to be launched in the first quarter of next fiscal.
1:00 pm Market Check
Equity benchmarks continued to be volatile due to lack of cues and ahead of expiry of derivative contracts for March. The Sensex gained 4.14 points at 24970.54 and the Nifty rose 4.10 points to 7619.20.
The broader markets were flat with negative bias. The market breadth continued to be weak as about 1448 shares declined against 900 advancing shares on Bombay Stock Exchange.
Pharma, FMCG and infra stocks declined while metals, auto, select technology and banks stocks gained.
Oil prices fell in Asian trade as concerns mount that a rally since January is fizzling out, while analysts forecast another rise to record levels for US crude stockpiles. US oil was down 51 cents to USD 38.88 a barrel and Brent fell 50 cents to USD 39.77.
European shares traded higher on Tuesday as markets re-open after the Easter break and investors look ahead to jobs data from the US later this week. The pan-European STOXX 600 was up around 0.8 percent.
12:40 pm Europe opens: European shares opened higher today as markets re-open after the Easter break and investors look ahead to jobs data from the US later this week. The pan-European STOXX 600 was up around 0.4 percent.
European markets started the shortened trading week on a positive note with most investors looking ahead to key nonfarm payrolls data and the employment report from the US on Friday.
12:20 pm Aurobindo gets USFDA nod: Drug firm Aurobindo Pharma has received final approval from USFDA to manufacture and market Rivastigmine Tartrate Capsules USP, used for the treatment of dementia disease, in the American market.
"The company has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Rivastigmine Tartrate Capsules USP, 1.5 mg, 3 mg, 4.5 mg and 6 mg," Aurobindo Pharma said in a BSE filing.
The company said this product is expected to be launched in the first quarter of next fiscal.
The approved product is bioequivalent and therapeutically equivalent to Novartis Pharmaceuticals Corporation's Exelon Capsules, it added.
12:00 pm Market Check
The market continued to consolidate in noon trade with the Nifty hovering around 7600 level. Asian markets were also under pressure with the Shanghai falling over a percent.
The 30-share BSE Sensex declined 46.13 points to 24920.27 and the 50-share NSE Nifty slipped 9.45 points to 7605.65. The broader markets, too, were marginally down as the market breadth remained weak. About two shares declined for every share advancing on the BSE.
Reliance Industries, Tata Motors, Maruti Suzuki, Axis Bank, Tata Steel and Hindalco Industries gained 1-2.5 percent whlie Sun Pharma, Dr Reddy's Labs, Cipla, ONGC, GAIL and BHEL fell 1-3 percent.
Lupin tanked 9 percent after IIFL reported that the company's Mandideep unit in Madhya Pradesh was inspected by the USFDA and has been given a 483 letter. Mandideep is second largest revenue contributor to US business after Goa unit.
11:55 am Market Update: Equity benchmarks recover in late morning trade. The Sensex declined 25.96 points to 24940.44 and the Nifty slipped 1.40 points to 7613.70.
The market breadth remained weak as about two shares declined for every share advancing on the BSE.
11:40 am Buzzing: Rajesh Exports shares gained more than 2 percent intraday Tuesday on repaying loans availed for acquisition of Valcambi.
"Shareholders Global Gold Refineries (GGR) has paid back debt which it had availed from Credit Suisse, Zurich within the first year of acquisition of Valcambi," says the Bengaluru-based gold refiner in its filing.
Rajesh Exports had acquired Valcambi, the Swiss-based world's largest gold refinery on July 24 (2015) from New Mont Mining Corporation. Acquisition was done through a special purpose vehicle namely GGR constituted in Switzerland.
With this acquisition, the company has built up a total capacity to refine 2,400 tons of precious metals per annum.
11:20 am Moody's on telecom tower cos: Telecom tower companies in India will post a revenue growth of about 10 percent over the next two years as mobile operators are expanding their 3G and 4G footprint and will seek to lease more tower space, Moody's Investors Service said today.
"We expect continued growth... as mobile operators, building out and strengthening their third and fourth generation (3G and 4G) footprints, will seek to lease tower space and sell more of their own towers," Moody's Assistant VP and Analyst, Nidhi Dhruv said in a statement.
We expect overall year-on-year revenue growth of about 8-10 percent for tower operators in India during the next one to two years, Dhruv added.
11:00 am Market Check
The market extended losses with the Nifty falling below 7600 amid volatility. Healthcare, infra and technology stocks pushed the market down while auto and metals stocks continued to support.
The 30-share BSE Sensex fell 116.26 points to 24850.14 and the 50-share NSE Nifty declined 28.20 points to 7586.90. The market breadth also weakened further as about two shares declined for every share advancing on the BSE.
Lupin topped selling list on Sensex, down more than 12 percent after USFDA observations on Mandideep plant in Madhya Pradesh. Other pharma stocks like Sun Pharma, Cipla and Dr Reddy's Labs also have a ripple effect, down 3-4 percent.
10:50 am Market Expert: The reversal in the market, seen in the last three weeks, has lifted market sentiments considerably, said Gautam Shah, Associate Director & Technical Analyst at JM Financial. No pullback in the last few weeks indicates a reversal to 15-months market downtrend, he added.
Nifty could move towards the 7,850 level in the long term, he said adding that 7,400 and 7,600 levels will be the crucial levels to watch out for. What works for this market is a strong momentum and stabilising global cues.
''The market is now making higher tops and higher bottoms,'' he said, adding that one must buy on dips in such a market.
10:35 am FM on corporate tax: Finance Minister Arun Jaitley today said the Indian government has resolved various legacy issues with regard to taxation and is gradually working to bring down the corporate tax rates to the global level at 25 percent from 30 percent currently.
The minister further said that India achieved over 7.5 percent growth rate despite global headwinds and the effort of the government would be to improve it further by promoting ease of doing business and attracting more foreign investment and preventing domestic investors from going abroad.
10:15 am Lupin under pressure: Lupin 's Mandideep unit has been flagged by United States Food and Drug Administration (US FDA). In particular, the active pharmaceutical ingredient (API) and formulations units of the plant in Madhya Pradesh have received two observations each, reports CNBC-TV18 quoting sources.
IIFL says these are very serious observations, adding the company may take at least 18 months to complete remediation at Mandideep unit.
The Mandideep unit contributes USD 200 million in revenues for Lupin.
The scrip of Lupin was quoting at Rs 1,307.40, down Rs 187.80, or 12.56 percent. It has touched a 52-week low of Rs 1,294.05.
10:00 am Market Check: Equity benchmarks gained marginal strength amid choppy trade, supported by banks, FMCG, metals and auto stocks. The 30-share BSE Sensex rose 61.47 points to 25027.87 and the 50-share NSE Nifty advanced 23.55 points to 7638.65.
The broader markets also traded higher with the BSE Midcap and Smallcap indices rising 0.2 percent and 0.3 percent, respectively. About 899 shares advanced against 632 declining shares on BSE.
Reliance Industries, ITC, Axis Bank, Tata Motors, Maruti Suzuki, SBI, Hindalco Industries and Tata Steel gained 1-3 percent while Lupin and Sun Pharma plunged more than 2 percent.
9:45 am Buzzing: Excel Industries gained nearly 9 percent intraday after getting board approval for buyback of equity shares.
"Board of directors, on March 28, have approved buyback of fully paid-up equity shares of face value of Rs 5 each at a price not exceeding Rs 275 per equity share," says the chemical manufacturer in its filing.
The company decided to buy back shares for a maximum amount of Rs 18 crore, subject to maximum of 11,50,000 equity shares from existing equity shareholders/beneficial owners(other than promoters/persons who are in control of the company).
9:35 am FII View: Ridham Desai of Morgan Stanley says the market will be focused on RBI policy - a rate cut of 25 bps expected, the Parliament session - watch for action on the GST bill and Bankruptcy Law, the Q4FY16 earnings season - how bad can it get from here and the state election results although the BJP is not a key player in these polls.
However, the key to absolute market moves is still what happens outside India, he adds.
9:15 am Market Check
The market has opened on a flat note again. The 30-share BSE Sensex rose 22.27 points to 24988.67 and the 50-share NSE Nifty climbed 11.50 points to 7626.60.
Hindalco, Maruti Suzuki, Tata Steel, ITC, Tata Motors, BPCL and Bank of Baroda were early gainers while HDFC, Sun Pharma, Bharti Airtel, ICICI Bank, HUL and Cairn India declined.
The Indian rupee gained further in early trade today. The currency has opened at 66.50 a dollar, up 8 paise compared to 66.58 a dollar in previous session.
Ashutosh Raina of HDFC Bank says currency market has been fairly rangebound in the holiday shortened week, with the dollar-rupee currency pair trading between 66.50-67 per dollar, with portfolio flows pouring in but well supported at lower levels, keeping the pair in a tight range.
He expects the pair to trade in 66-67 per dollar range in near term.
Globally, Asian markets were trading marginally lower while Wall Street ended flat.
Oil prices pulled closer to USD 40 a barrel, amid continuing signs of supply glut, took a toll on sentiment even as traders in the US awaited data and comments from key Fed policymakers due later this week.
US dollar weakened against a basket of major currencies while gold rose marginally.