Sensex up 438 points, Nifty ends above 7700; metals, banks rally
30 March 2016
3:30 pm Market closing: The market snapped two-day losing streak, rising 1.8 percent. The Sensex surged 438.12 points to 25338.58 and the Nifty rose 138.20 points to 7735.20, led by positive global cues and banks rally.
About 1866 shares advanced against 755 declining shares on the BSE.
ICICI Bank, Tata Motors, Lupin, SBI, Tata Steel and Hindalco Industries surged 4-6 percent while M&M and HDFC lost 1 percent.
3:10 pm Green nod to CIL project: An environment ministry panel has recommended green clearance with some riders to state-owned CIL 's coal mining project in Jharkhand.
Central Coalfields Ltd (CCL), an arm of CIL, was seeking green clearance for expansion of Ashok open cast project (OCP) in Chatra district of Jharkhand from 10 million tonnes per annum to 14 MTPA.
"The Committee (Expert Appraisal Committee), after detailed deliberations...recommended for grant of environmental clearance to the project with the specific conditions," an official source said.
The conditions according to EAC are that as against the proposal for 14 MTPA (million tonnes per annum), the project proponent will not exceed 12 MTPA, and this production permission is limited to the forthcoming year 2016-17 only.
2:55 pm Fund raising: Indian firms raised nearly Rs 49,000 crore through the equity market route in the current fiscal ending tomorrow, a slump of 17 percent year-on-year.
A major revival was however witnessed in the IPO market after nearly four dismal years, said Pranav Haldea Managing Director Prime Database.
In all, Rs 48,952 crore was mobilised through public equity markets in 2015-16 as compared with Rs 58,801 crore last year, shows a report by Prime.
In the equity space, funds were mobilised through Offer- for-Sale (OFS) via the stock exchange mechanism, qualified institutional placement (QIP) and initial public offers (IPO).
Of the total, funds worth Rs 19,822 crore were raised through OFS, another Rs 14,772 crore came from IPOs and Rs 14,358 crore via QIPs.
2:35 pm Market Update: Equity benchmarks jumped further in last hour of trade. The Sensex rose 405.61 points or 1.63 percent to 25306.07 and the Nifty surged 130.15 points or 1.71 percent to 7727.15.
2:25 pm LIC ups stake in PSU banks: Public sector lender Dena Bank has raised Rs 65 crore by issuing over 2 crore shares to LIC on preferential basis.
Andhra Bank also said it has sold over 4.23 per cent stake to LIC on a preferential allotment, without disclosing the amount.
Post the acquisition of additional shares in Dena Bank, LIC's stake in the lender has gone up to 14.5 percent from 11.63 percent earlier, Dena Bank said in a regulatory filing today.
2:15 pm Aurobindo in News: Aurobindo Pharma has received final approval from the US health regulator to market its generic antibiotic drug Vancomycin Hydrochloride for Injection, in the American market.
The company has received final approval from the US Food and Drug Administration (USFDA) to manufacture and market Vancomycin Hydrochloride for Injection USP (Pharmacy Bulk Package), Aurobindo Pharma said in a regulatory filing.
"This product is expected to be launched in the later part of FY16-17," it added.
The company's product is the generic version of US-based Fresenius Kabi's Vancomycin Hydrochloride for Injection USP. It is an antibiotic used in the treatment of severe infections.
2:00 pm Market Check
Equity benchmarks surged further with the Sensex rising 366.94 points or 1.47 percent to 25267.40, supported by banks. European markets too were strong after Fed chair Janet Yellen; France's CAC, Britain's FTSE and Germany's DAX gained 1.5 percent each.
The 50-share NSE Nifty rose 116.65 points or 1.54 percent to 7713.65. The market breadth remained strong as about three shares advanced for every share declining on BSE.
PSU banks saw buying interest today with Nifty PSU Bank index rising 4 percent after Vijay Mallya told Supreme Court that he is ready to pay Rs 4,000 crore to lenders by September 2016. State Bank of India, which has biggest exposure to Kingfisher with Rs 1,400 crore loan, surged 4 percent.
Among others, ICICI Bank, Tata Motors, Axis Bank, L&T, Sun Pharma, Adani Ports, Bajaj Auto, Hero Motocorp and GAIL gained 2-5 percent while HDFC, Mahindra & Mahindra, Bharti Airtel and Maruti Suzuki lost 0.5-1 percent.
Lupin rose nearly 5 percent after Credit Suisse believes that USFDA observations will have no impact on company's growth as there is no pending ANDA from Mandideep plant.
Metals stocks continued to shine with Tata Steel, Vedanta and Hindalco rising 5-6 percent after the government extended safeguard duty on steel imports. Tata Steel and Hindalco rallied over 5 percent.
1:25 pm Buzzing: Shares of agro-chemical firm Rallis India rose by over 5 percent today after the Tata group's agri-input arm entered into an agreement with IKEA India to transfer its leasehold right over a land parcel here for nearly Rs 214 crore.
Rallis India yesterday said it has entered into an agreement with Swedish furniture retailing giant IKEA to monetise its surplus assets.
"The company signed an agreement for assignment of its leasehold rights in respect of the leasehold land at MIDC Industrial area, Turbhe, Navi Mumbai to IKEA India Pvt Ltd," Rallis India had said in a BSE filing.
On the size of the agreement, Rallis said "consideration of Rs 213.93 crore is payable by IKEA to the company for assignment of its leasehold rights." Rallis India is a subsidiary of Tata Chemicals with business presence in the farm essentials vertical.
1:00 pm Market Check
Rally in banks, pharma, auto and metals stocks pushed Indian equity benchmarks higher by 1.4 percent in afternoon trade. The 50-share NSE Nifty reclaimed 7700 level, rising 105.10 points to 7702.10.
The 30-share BSE Sensex rallied 338.57 points to 25239.03. The broader markets also extended upside with the BSE Midcap and Smallcap indices rising 1.5 percent each.
Bank Nifty rallied 2 percent after Vijay Mallya has submitted a repayment plan of Rs 4,000 crore to Supreme Court. He says he is ready to pay that amount by September 2016.
SBI, who has Rs 1400 crore exposure to KFA, gained 3.4 percent. ICICI Bank surged over 4 percent.
Lupin spiked 5 percent after Credit Suisse believes that USFDA observations will have no impact on company's growth as there is no pending ANDA from Mandideep plant.
Metals stocks gained strength after the government extended safeguard duty on steel imports. Tata Steel and Hindalco rallied over 5 percent.
12:50 pm Market Update: Equity benchmarks climbed further in afternoon trade with the Sensex rising 308.84 points or 1.24 percent to 25209.30 and the Nifty up 96.85 points or 1.27 percent at 7693.85.
12:35 pm Buzzing: Shares of Adani Ports and Special Economic Zone surged over 3 percent today after the company raised Rs 500 crore through issue of debentures.
"The company has raised Rs 500 crore today by allotment of 5,000 rated, listed, secured, taxable, redeemable, non-convertible debentures (NCDs) of the face value of Rs 10,00,000 each on private placement basis," it had said in a regulatory filing to the BSE yesterday.
Earlier this month, the company had also raised Rs 150 crore through debentures. The government has recently approved the Adani Group's proposal for clubbing its three notified special economic zones (SEZs) in Gujarat to form a mega multi-product export zone spanning over 8,500 hectares.
12:20 pm FII View: The markets see Janet Yellen's speech yesterday as being dovish, says Ian Hui, Global Market Strategist, JP Morgan Asset Management, referring to the Fed chair's speech on Tuesday.
Fed statements suggest they have a cautious approach towards rate cuts and so it is unlikey to see a hike in April. But a hike in June is possible, says Hui.
With comments from Yellen on Tuesday boosting sentiment, the world markets rallied. Going forward, too, Hui expects the rally to continue, more so because commodities have stabilised and fears of a China slowdown have diminished.
Crude prices depend mainly on demand and supply. With supply expected to remain subdued, the prices could inch higher to around USD 40-45 per barrel by year-end, says Hui.
12:00 pm Market Check
The market extended rally in noon trade with the Sensex rising 287.92 points or 1.16 percent to 25188.38 and the Nifty climbing 91.55 points or 1.21 percent to 7688.55. The broader markets also gained further; the BSE Midcap and Smallcap indices jumped nearly 1.5 percent.
State Bank of India, Punjab National Bank, Bank of Baroda, IDBI Bank and Indian Overseas Bank gained 2-3 percent after Vijay Mallya has submitted a repayment plan of Rs 4,000 crore to Supreme Court.
He says he is ready to pay that amount by September 2016. United Breweries gained over a percent; Mallya holds 32 percent stake in the company, which is currently valued at Rs 6,500 crore.
ICICI Bank was the biggest contributor to Sensex's gains, up 3.7 percent. Reliance Industries, Tata Motors, L&T, Sun Pharma and Adani Ports gained 1-3 percent.
Lupin rebounded sharply, up nearly 5 percent after falling 6 percent in previous session due to USFDA's 483 letter to its Mandideep facility in Madhya Pradesh.
11:40 am Interview: The government has imposed anti-dumping duty on vitrified tiles for six months. The duty is USD 1.37 per square meter on all vitrified tiles from China.
The duty is far less than industry expectations of USD 3/sqm.
Vikram Somany, CMD, Cera Sanitaryware , says the duty is positive for the company and expects Chinese tiles to become less competitive now.
However, the company is not looking to raise prices as of now but will align its hikes with the industry.
Forty percent of the company's sales are protected by anti-dumping duty, says Somany.
The gains from this anti-dumping would be higher for smaller companies like Nitco and Asian Granito than bigger players like Kajaria Ceramics etc.
11:20 am Market Expert: While global markets were on a consolidating phase last week, the recent statement from Janet Yellen on the slow rate hike is likely to extend to the global rally, said Krishna Kumar Karwa, Managing Director of Emkay Global Financial Services.
Karwa, in an interview to CNBC-TV18, said that the domestic market is also likely to see inflows post Yellen's speech. However, post a 10-13 percent global rally, valuations could become frothy, he added.
''It has become more and more of a bottom-up market,'' he said, adding.
Karwa is positive on the rural India theme. He said a good monsoon and increased government spending will ensure good returns for investors over a 12-18 months period.
11:00 am Market Check
Equity benchmarks extended rally, aided by banks, infra, oil and FMCG stocks. The 30-share BSE Sensex surged 234.34 points to 25134.80 and the 50-share NSE Nifty jumped 73.40 points to 7670.40.
The broader markets gained 1 percent too, supported by strong market breadth. About 1596 shares advanced against 535 declining shares on BSE.
Oil futures rebounded in Asian trade, buoyed by a forecast for a less than expected build in crude oil stockpiles last week. A weakening dollar also lent some support but concern that a two-month rally was fading in an oversupplied market put a ceiling on gains.
Brent futures climbed 27 cents to USD 39.41 a barrel after settling down $1.13 in the previous session. US crude rose 36 cents to USD 38.64 a barrel after ending the previous session down USD 1.11.
10:40 am Buzzing: Shares of Nitco Tiles rallied 12.5 percent, Kajaria Ceramics 2.5 percent and Somany Ceramics 3.5 percent intraday after imposition of anti-dumping duty on vitrified tiles.
The government today has imposed USD 1.37 per square metre anti-dumping duty on all vitrified tiles from China, which is far lower than industry expectations.
Industry has expected anti-dumping duty at USD 3 per square metre.
Anti-dumping duty imposed on vitrified tiles is for next six months, says the government.
10:20 am FII View: Sakthi Siva of Credit Suisse says while the slowing in China's return on equity (RoE) is well recognised and a key reason why MSCI China trades at a 27 percent discount on price-to-book versus RoE valuation model, she suspects most investors have not noticed a similar slide in India's RoE.
India's RoE has halved from its 2005 highs and its current level of 12.3 percent is similar to China's 12.2 percent, she adds.
According to her, even more striking is that the rate of slowing in RoE is remarkably similar in both countries recently. India's premium has once again risen to above 50 percent, Siva says, adding while history is not always an accurate guide, previous episodes were associated with underperformance.
"We retain our underweight on India," she says.
10:00 am Market Check
Equity benchmarks continued to hold early gains with the Sensex rising 193.42 points to 25093.88 and the Nifty climbing 60.95 points to 7657.95. Banks, FMCG, oil, auto and pharma stocks gained.
The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising more than 1 percent. The market breadth remained strong as more than three shares advanced for every share declining on BSE.
Shares of Healthcare Global Enterprises, the cancer-care network operator, started off trade on a negative note despite positive market trend. The stock listed at Rs 210.20 on National Stock Exchange, down 3.6 percent compared to issue price of Rs 218. It fell nearly 20 percent in early trade to hit day's low of Rs 175 after seeing a high of Rs 211.90.
9:35 am Buzzing: Sun Pharmaceutical Industries shares gained 2.6 percent intraday after the company acquired 14 established prescription brands from Novartis AG and Novartis Pharma AG in Japan.
"A wholly-owned subsidiary of Sun Pharma will acquire portfolio consisting of 14 established prescription brands from Novartis for a cash consideration of USD 293 million. These brands have combined annualised revenues of approximately USD 160 million and address medical conditions across several therapeutic areas," says the company in its filing.
Under the terms of the agreements, Novartis will continue to distribute these brands, for a certain period, pending transfer of all marketing authorisations to Sun Pharma's subsidiary. The acquired brands will be marketed by a reliable and established local marketing partner under the Sun Pharma label.
9:15 am Market Check
The market rebounded on Wednesday after a sell-off in previous two consecutive sessions, tracking positive global cues post Federal Reserve Chairperson Janet Yellen's comments.
The 30-share BSE Sensex rose 208.93 points to 25109.39 and the 50-share NSE Nifty climbed 63.25 points to 7660.25. The market breadth was also strong as about 844 shares advanced against 138 declining shares on BSE.
Lupin, Tata Motors, ICICI Bank, Sun Pharma, Hindalco Industries, Vedanta and UltraTech Cement topped buying list in early trade.
The Indian rupee has opened marginally higher at 66.48 per dollar today against previous close of 66.54.
NS Venkatesh of IDBI Bank said, "The rupee ended stronger versus the dollar yesterday. We saw custodial banks selling dollars and FIIs providing support to the rupee."
"Dollar demand from importers due to year end will be high. The dollar index is showing signs of weakness post Yellen's comments," he added.
Venkatesh expects the rupee to trade in a range of 66.45-66.60/dollar today.
The US dollar hit its lowest level against the euro in over a week and fell against other major currencies after Federal Reserve Chair Janet Yellen said it was appropriate for the Fed to proceed "cautiously" in hiking interest rates.
Stocks in the US closed higher, led by gains in tech stocks, after Fed Chair Janet Yellen said it is appropriate for policymakers to proceed 'cautiously.' The S&P 500 and Dow Jones Industrial Average recovered from a lower open to close at their highest levels of the year so far and in positive territory for 2016.
Asian markets too are trading in the green. However, on the data front Japan's industrial output data showed fragile factory activity due to sluggish demand both at home and abroad. The Industrial output fell 6.2 percent on-month in February, compared with an expectation for a 6 percent decline, following a 3.7 percent gain in January.