Nifty ends at 7671, Sensex rises 348 points; BHEL, Bharti gainers

11 Apr 2016

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3:30 pm Market closing: After posting biggest intra-day gains in last 8 trading session, the Sensex was up 348.32 points or 1.4 percent at 25022.16. The Nifty was up 116.20 points or 1.5 percent at 7671.40. About 1472 shares have advanced, 1107 shares declined, and 128 shares were unchanged.

Hindalco, Adani Ports, BHEL, Bharti Airtel and Wipro were top gainers while Lupin, Dr Reddy's Labs, Cipla and M&M were losers in the Sensex.

3:02 pm Sensex hits 25000: The 30-share BSE Sensex shot up 359.38 points or 1.46 percent to 25033.22 and the 50-share NSE Nifty climbed 118.60 points or 1.57 percent to 7673.80.

About 1450 shares advanced against 1049 declining shares on Bombay Stock Exchange.

2:55 pm Vedanta in news: Metals and mining group Vedanta today said the Goan iron ore arm reported sales of 1.6 million tonnes (MT) during January-March quarter of the last fiscal.

The firm also clocked a production of 1.9 MT during the reported quarter of the last fiscal, even as the production was impacted due to delay in transportation rate negotiations with the truckers, it said in a regulatory filing.

The total sale of 1.6 MT included 0.8 MT of traded ore purchased from the e-auctions. In Karnataka, production was 0.9 million tonnes and sales were 1 MT during the quarter, it added.

The company, which has been allowed to mine 5.5 MT of iron ore from Goa said: "We are engaged with the respective state governments for enhancing mining cap in Goa and Karnataka."

2:50 pm Market Update: Equity benchmarks extended rally in last hour of trade with the Sensex rising 254.81 points or 1.03 percent to 24928.65 and the Nifty climbing 83.60 points or 1.11 percent to 7638.80.

2:40 pm Buzzing: Shares of RS Software India climbed nearly 9 percent intraday after the Reserve Bank of India launched Unified payment interface (UPI).

Kolkata-based IT company is a technology provider to National Payments Corporation of India (NPCI) for UPI. NPCI is an umbrella organisation for all retail payments system in India.

The Reserve Bank of India today launched the Unified Payment Interface (UPI).

"We are humbled to be part of this revolutionary initiative, and actually getting the opportunity to build this for NPCI and country," Raj Jain, CMD of RS Software said, adding this is the vehicle that will bring together Prime Minister's Jan Dhan Yojana, Aadhaar and Mobile.

The company, which built the UPI software, has been focusing on electronic payments system for over two decades.

2:20 pm Tata Steel in focus: Tata Steel is due today to begin the formal sale process for its loss-making British units which employ 15,000 people, a source close to the company said.

Tata, one of the world's biggest steelmakers, said on March 30 it was putting its British assets up for sale, citing a global oversupply of steel, high costs, weak domestic demand and a volatile currency.

A source close to the company said a formal announcement would be made later on Monday. Sajid Javid, Britain's business minister, said on Friday the formal sale process would begin by Monday and that Tata had not set a time frame for the sale.

British Prime Minister David Cameron, already grappling with rows over Europe, his budget and his tax affairs, is trying to find a buyer for Tata's assets.

2:00 pm Market Check
The market rebounded in afternoon trade with the Nifty reclaiming 7600 level, led by technology, banks, auto, telecom and metals stocks. European markets also bounced back after weak opening; France's CAC and Germany's DAX climbed more than half a percent.

The 30-share BSE Sensex rose 124.26 points to 24798.10 and the 50-share NSE Nifty advanced 45.30 points to 7600.50. About 1307 shares advanced against 1104 declining shares on Bombay Stock Exchange.

Adani Ports and Bharti Airtel gained 4 percent each followed by TCS, Tata Motors, SBI, Wipro, Tata Steel, Maruti Suzuki and Hero Motocop with 1-2 percent upside.

Lupin fell over 1.5 percent followed by ITC, HDFC, M&M and Dr Reddy's Labs.

1:55 pm Tata Steel: Tata Steel is due to begin the formal sale process for its loss-making British units which employ 15,000 people, a source close to the company said.

Tata, one of the world's biggest steelmakers, said on March 30 it was putting its British assets up for sale, citing a global oversupply of steel, high costs, weak domestic demand and a volatile currency.

A source close to the company said a formal announcement would be made later on Monday. Sajid Javid, Britain's business minister, said on Friday the formal sale process would begin by Monday and that Tata had not set a time frame for the sale.

1:45 pm Mallya woes: The Enforcement Directorate (ED) has decided to move court under the Prevention of Money Laundering Act (PMLA) against Vijay Mallya afternoon following his failure to appear before investigators for the third time on April 9, reports CNBC-TV18.

Mallya had sought time till May to depose before the investigation officers in connection with a money laundering probe in the over Rs 900-crore IDBI Bank loan fraud case. He had cited the ongoing legal proceedings in the Supreme Court over settlement of other loans as a reason for the absence.

Sources said the ED may consider revoking Mallya's passport or issuing a non-bailable warrant against him.

1:30 pm Market rises: After a sluggish day, the market has spring into action. The Nifty has reclaimed 7600 while the Sensex is up 112.71 points or 0.5 percent at 24786.55. About 1248 shares have advanced, 1143 shares declined, and 102 shares are unchanged.

The market is still sluggish with the Nifty hovering around 7500. The 50-share indices is at 7555.50, up 0.30 points and the Sensex is down 17.73 points at 24656.11. About 1182 shares have advanced, 1188 shares declined, and 117 shares are unchanged. FMCG stocks are under pressure while Oil & Gas and Metals are gainers from previous close.

Bharti Airtel, Adani Ports, BHEL, Hindalco and Tata Motors are top gainers while Lupin, M&M, Cipla, HDFC and Dr Reddy's Labs are losers in the Sensex.

Meanwhile, Federal Reserve Chairwoman Janet Yellen and US President Barack Obama are scheduled to meet on Monday with an agenda to discuss key policy rates, says Hartmut Issel, Head-Equity & Credit APAC, UBS.

Speaking to CNBC-TV18, Issel says he is overweight on developed markets, particularly the US and underweight on emerging markets (EMs) on the back of rising inflation from the labour side.

Furthermore, he believes the Fed may hike rates by September, which the global markets have already priced in.

12:59 pm Market Update: Equity benchmarks extended losses in afternoon trade with the Sensex losing 100.85 points to 24572.99 and the Nifty falling 22.45 points to 7532.75, dragged by HDFC, HDFC Bank, ITC and Infosys.

European markets opened lower, following a mostly negative lead from Asia, as the oil price reversed its positive moves to trade in the red.

12:50 pm Fed rate hike?: Federal Reserve Chairwoman Janet Yellen and US President Barack Obama are scheduled to meet on Monday with an agenda to discuss key policy rates, says Hartmut Issel, Head-Equity & Credit APAC, UBS.

Speaking to CNBC-TV18, Issel says he is overweight on developed markets, particularly the US and underweight on emerging markets (EMs) on the back of rising inflation from the labour side.

Furthermore, he believes the Fed may hike rates by September, which the global markets have already priced in.

12:30 pm Orchid in news: Orchid Pharma said it received the establishment inspection report (EIR) from USFDA based on the successful inspection closure for the API manufacturing facility located at Alathur, Kancheepuram District, India.

The facility was inspected by USFDA in the month of August 2015.

12:20 pm IT earnings expectations: Fourth quarter is a jinxed quarter for Infosys , says Sandeep Muthangi, IT Analyst, IIFL-Institutional Equities.

The company's guidance implies an over 2 percent growth for the quarter, says Muthangi.

Muthangi adds that expectation from Infosys is reasonable owing to large deal wins over the last nine months.

Discretionary spending didn't seem to have a larger role to play for the company in this quarter, says Muthangi.

He also hopes for a 30-60 basis point margin expansion for the sector in this quarter and 60 bps improvement for Tata Consultancy Services in Q4.

12:00 pm Market Check
The market remained in a consolidation mode in noon trade ahead of fourth quarter and FY16 earnings season that will start on April 15 with Infosys results.

The Sensex declined 48.88 points to 24624.96 and the Nifty fell 9.70 points to 7545.50. The broader markets continued to outperform benchmarks with the BSE Midcap and Smallcap indices rising 0.4 percent each.

11:55 am Buzzing: Sun Pharmaceutical Industries shares gained 2 percent intraday  on approval from the US health regulator for anti-inflammatory drug. One of wholly owned subsidiaries of the company, on April 9, received approval from US Food & Drug Administration (USFDA) for new drug application (NDA) related to BromSite (bromfenac ophthalmic solution) 0.075 percent. The drug is used for the treatment of postoperative inflammation and prevention of ocular pain in patients undergoing cataract surgery. BromSite, developed by InSite Vision, is the first non-steroidal anti-inflammatory drug (NSAID) approved by the USFDA to prevent pain and treat inflammation in the eye for patients undergoing cataract surgery.

11:45 am Interview: The soon-to-be launched snow park at Adlabs Imagica is a move towards achieving cash break-even for the company, says Kapil Bagla, CEO of Adlabs Entertainment . Bagla hopes the theme park to break even in FY17. Spread across an area of 30,000 sq ft, the expected footfalls for the snow park is around 3000-4000 per day, which will increase the annual capacity to 15 lakh. The theme park is located just off the Mumbai-Pune Expressway. Bagla expects revenue from the snow park to be around Rs 15-18 crore, and says it would contribute about 25 percent to the total Adlabs business.

11:30 am Cigarette woes: The cigarette and tobacco industry is reeling under an estimated loss in production turnover of over Rs 3500 crore as of now, as per The Tobacco Institute of India, reports CNBC-TV18, quoting sources. It is also understood that the Maharashtra FDA has now seized cigarettes worth over Rs 300 crore and companies have been asked to submit an undertaking that they will follow the changed regulations, say sources. Seized cigarettes will be held by Maharashtra FDA for 90 days before which the companies need to send the undertaking. Meanwhile, industry players await clarification from government on pictorial warning regulations. Cigarettes have been seized from various parts of the state including Mumbai, Pune, Nashik.

The market is flat with negative bias. The Sensex is down 8.46 points at 24665.38 and the Nifty is at 7555.20. About 1184 shares have advanced, 840 shares declined, and 92 shares are unchanged.

Bharti Airtel, Adani Ports, BHEL, Hindalco and NTPC are top gainers while Lupin, Cipla, Dr Reddy's, M&M and ITC are losers in the Sensex.

Gold prices rose 0.53 percent to Rs 29,284 per 10 grams in futures trade today as speculators raised their bets, taking positive cues from global markets.Market analysts said rise in gold prices at futures trade was largely in step with a firm trend overseas as global economic-growth concerns boosted the metal's appeal as a haven asset.

Globally, gold climbed as much as 1.07 percent to USD 1,251.70 an ounce in Singapore today.

10:40 am Market Expert: The markets are unlikely test the lows of February seen in FY16, says Nilesh Shah, MD, Kotak Mahindra AMC. He offers a caveat that unless the monsoon fails, the markets won't retreat.

There are a number of reasons that could pull down the markets, cautions Shah. One will be the quarterly earnings guidance which he sees as being muted. Tighter liquidity seen in January-March of 2016 will have a bearing on the markets. Similarly, the deficit in banks amounting to more than Rs 2 lakh crore is likely to pull back the market.

10:20 am Buzzing: Rajesh Exports shares gained 4.5 percent intraday on getting export order worth Rs 1,188 crore.

The Bangalore-based jewellery maker has bagged order of designer range of gold and diamond studded jewellery and medallions from UAE.

"The order, which is to be completed by June 30, will be executed at company's manufacturing facility at Bangalore that has an installed capacity to process 250 tonnes of jewellery and gold products per annum," says Rajesh Exports in its filing.

10:00 am Market Check
The market continued its consolidation after a 2 percent loss in previous week as investors are eagerly waiting for fourth quarter earnings and outlook for FY17.

The 30-share BSE Sensex fell 31.86 points to 24641.98 and the 50-share NSE Nifty declined 4.05 points to 7551.15 while the broader markets outperformed benchmarks.

The BSE Midcap and Smallcap indices gained 0.2 percent each on positive market breadth. About 1016 shares advanced against 602 declining shares on Bombay Stock Exchange.

Bharti Airtel gained 3 percent on acquisition of 4G spectrum from Aircel in 8 circles.

Tata Motors, Adani Ports, ONGC, Sun Pharma, BHEL and Hindalco Industries rose 0.5-1.5 percent while Infosys, HDFC, Lupin, HDFC Bank, TCS, M&M, Dr Reddy's Labs and Cipla fell 0.5-1.8 percent.

9:45 am Corporate interview: Cement demand in Andhra Pradesh and Telangana has improved significantly in the fourth quarter of FY16 making it one of the best quarters in terms of sales in recent history, says K Ravi, MD of NCL Industries, a south-based company, which manufactures cement under the Nagarjuna brand. 
In an interview to CNBC-TV18, Ravi says the company touched 98 percent capacity utilisation levels in March aided by various irrigation and concrete road projects undertaken by the government in Telangana.

While demand in AP has also been good, he expects a further boost as projects at Amaravati and Vijayawada pick up pace in the coming months.

9:33 am Rupee & bond market outlook: India's corporate bond market will take between three to five years to develop given the huge financing demand from the infrastructure sector, a senior banker has said. As of now, the Indian corporate bond market is in a development stage while regulatory changes are in the process, said Shyam Srinivasan, managing director and chief executive officer of Kerala-based The Federal Bank Ltd.

"The bond market has to evolve...it would take between three to five years," he told PTI at the Global IIMPACT 2016 conference and exhibition held in Singapore over the weekend.

But in the meantime, financial markets like Singapore can be a big feeder for India, Srinivasan pointed out. Srinivasan is also confident that some of the Indian banks, with stressed balance sheets due to over leveraging by mega projects, will be able to recover over the next 12 months.

9:23 am FII view: Mahesh Nandurkar of CLSA says Q4 is likely to mark the return of revenue growth for India coverage universe at 7 percent YoY. However, earnings growth will continue to be weak at 1 percent YoY as a clean-up of bad assets depresses earnings of the financials sector, he adds. According to him, margins of domestic companies should rise by 100 basis points YoY, the sixth consecutive quarter of improvement.

Nandurkar feels an earnings decline of 2 percent YoY in FY16 is likely to improve to 15 percent growth in FY17, helped by a low base. Earnings growth pick-up should be visible from the September 2016 quarter onwards, he says.

The market started off week on a flat-to-positive note. The Sensex rose 41.81 points to 24715.65 and the Nifty advanced 13.35 points to 7568.55.
Bharti Airtel topped buying list on Sensex, up 3.11 percent after acquisition of 4G spectrum rights from Aircel for 8 circles for Rs 3,500 crore.

BHEL rose 1.6 percent after a media report indicated that NTPC's Bangla JV awarded EPC contract to company for USD 2.4 billion. Sun Pharma was up 1.44 percent on USFDA approval for BromSite.

ONGC, Adani Ports, Tata Motors and Idea Cellular were other gainers while Infosys, Cipla, M&M, HDFC, Tata Steel, Asian Paints, Wipro and BPCL were losers.

The Indian rupee opened lower by 3 paise at 66.50 per dollar today against 66.47 Friday.

Pramit Brahmbhatt of Veracity said, "Rupee is expected to trade sideways with negative bias and will continue to find support at 66.80/dollar."

"The trading range for the day is seen between 66.20-66.80/dollar," he added. The euro hold near a six-month peak of 1.14 level against the dollar, meanwhile the yen strengthens further to 107.

Asia markets were lower ahead of a series of market-moving economic data due this week. Japan's Nikkei 225 was off 1.34 percent, while across the Korean Strait, the Kospi was near flat.Major exporters in Japan saw significant sell-off in morning trade, with shares of Toyota dropping 3.15 percent, Nissan down 3.25 percent and Honda off 2.98 percent. A stronger yen is a negative for exporters because it reduces their overseas profits when converted into local currency.

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