Nifty ends at 8170, Sensex slips over 100 points; BHEL, Reliance up

10 Jun 2016

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3:30 pm Market closing: After a lot of struggle, the market has ended lower. The  Sensex is down 127.71 points or 0.5 percent  at 26635.75, and the Nifty slipped 33.55 points or 0.4 percent at 8170.05. About 1220 shares have advanced, 1354 shares declined, and 182 shares are unchanged.

BHEL, NTPC, Lupin, Reliance and Bharti Airtel were top gainers while Tata Steel, GAIl, Coal India, Tata Motors and SBIwere losers in the Sensex.

2:59 pm Market Update: Equity benchmarks continued to fall. The Sensex fell 133.64 points to 26629.82 and the Nifty slipped 35.80 points to 8167.80.

2:55 pm Buzzing: Sadbhav Infrastructure Projects shares rallied more than 10 percent intraday after the company started toll collection in Bhilwara-Rajsamand Tollway, a wholly owned subsidiary.

"Bhilwara-Rajsamand Tollway Private Limited (BRTPL) has received provisional completion certificate for 86 km out of total 87.25 km on June 4 and accordingly toll collection has been started on the project from June 9," the Ahmedabad-based infra company in its filing.

The project - four laning of Rajsamand - Bhilwara section of NH-758 in Rajasthan on DBFOT basis was awarded by National Highways Authority of India. Original concession period is 30 years (including construction period of 910 days).

2:45 pm Gold Update: Rising for the third straight day, price of gold surged by Rs 180 to 29,350 per 10 gram at the bullion market today in line with a firming trend overseas and increased buying by jewellers in domestic spot market.

Silver also advanced by Rs 350 to Rs 40,850 per kg on pick up in demand from industrial units and coin makers.

Bullion traders said besides firming trend overseas, increased buying by jewellers and retailers at domestic spot market mainly kept both gold and silver prices higher.

Globally, gold rose by 0.55 percent to USD 1,269.50 an ounce and silver by 1.32 percent to USD 17.23 an ounce in New York in yesterday's trade.

2:25 pm MoS Finance on oil: As crude oil price hit an 11-month high of USD 50 per barrel, the government today said its fiscal maths and inflation calculations will not be impacted if the commodity stays below the USD 60 mark.

Minister of State for Finance Jayant Sinha, in an interview to PTI, said Indian economy will be "fine" if the oil price stays in the range of USD 40-60 per barrel, but there could be a concern if it goes beyond.

The slump in oil price is one of the factors that has helped Indian economy notch up big gains by cutting its import bill and reining in inflation.

India, which depends on imports to meet 80 per cent of its oil needs, will have to spend Rs 9,126 crore (USD 1.36 billion) more every year for one dollar per barrel increase in crude oil. Besides, the rising crude oil trajectory impacts inflation and growth.

"If oil prices stay in the range that most forecasters are expecting them to be, which is in the USD 40-60 dollar range, then I think we will be fine. If it goes beyond that range, then it becomes a question," Sinha said.

2:00 pm Market Check
Equity benchmarks remained under pressure in afternoon trade with the Sensex falling 104.75 points to 26658.71 and the Nifty declining 28.35 points to 8175.25. The broader markets too were marginally lower after the breadth turned negative.

About 1267 shares declined against 1194 advancing shares on Bombay Stock Exchange.

Tata Motors, Tata Steel, Coal India, SBI, ITC, Tata Motors (D) and Bank of Baroda declined 1-3 percent while BHEL, Lupin, M&M, Adani Ports, Bharti Airtel, Hindalco, Yes Bank, Ambuja Cements and Power Grid Corp were gainers.

SBI, SpiceJet, Yes Bank, Maruti Suzuki, Vedanta, HCL Tech, Infosys and Reliance Industries were most active shares.

European markets extended losses, as a renewed fall in the price of oil and weaker trade in Asia weighed on sentiment. The pan-European STOXX 600 was off 1.3 percent in early trade, with all sectors posting solid losses. London's FTSE 100 fell 1.2 percent in morning trade, while the French CAC was off 1.2 percent and Germany's DAX slipped 1.7 percent.

1:55 pm Race: The Lanco Group has short-listed four players, including Tata Power, JSW Energy and Piramal Enterprises, among those that are interested in buying its power assets.

A meeting of the Joint Lenders Forum is scheduled to meet in the next few days to decision on the sale of the power business of the indebted Lanco Group.

Sources have told CNBC-TV18 the company, which has power assets of about 8,000 megawatts, is seeking about Rs 4.5 crore/MW (Rs 36,000 crore) while buyers are bidding at about Rs 3 crore (Rs 24,000 crore).

1:45 pm Wheat: India may import 5 million tonnes of wheat in 2016-17 as its local production is hit by back-to-back years of drought amid rising demand, a leading consumer said on Friday.

The country is expected to produce 85 million tonnes of the grain in 2016, a decline of about 2.3 percent from last year, said S. Sivakumar, group head of agri and IT businesses at ITC.

1:30 pm MF Fund: Investors have pulled out more than Rs 58,000 crore from various mutual fund (MF) schemes in May on account of huge outflow from money market and gilt funds.

In comparison, a total of Rs 243 crore was invested in May last year.

The outflow was mainly due to withdrawal of money from liquid or money market and gilt funds. According to data from the Association of Mutual Funds in India (Amfi), investors withdrew a net Rs 58,185 crore from MF schemes in May 2016 as against an inflow of Rs 1.7 lakh crore in the preceding month.

The market continues to slip with the Nifty struggling to hold 8150. The 50-share index is down 12.80 points or 0.2 percent at 8190.80 and the Sensex is down 49.09 points or 0.2 percent at 26714.37. About 1254 shares have advanced, 1093 shares declined, and 150 shares are unchanged.

BHEL, M&M, Lupin, Bharti and HDFC Bank are top gainers while Tata Steel, Tata Motors, Asian Paints, ICICI Bank and SBI are losers in the Sensex.

European markets opened mostly lower, as a renewed fall in the price of oil and weaker trade in Asia weighed on sentiment. Europe followed Asian markets lower on the last trading day of the week. Markets in Asia were mostly in the red, tracking declines in US markets that followed a drop in crude oil prices.

On the oil front, prices were in negative territory on Friday as a stronger dollar capped gains in the market; however prices still held around or above $50, on the back of supply outages and strong demand.

12:56 pm Market Off day's high: Equity benchmarks erased gains in afternoon trade due to selling in Tata Motors, HDFC, ICICI Bank, Infosys and ITC.

The Sensex gained 8.55 points at 26772.01 and the Nifty rose 3.20 points to 8206.80 while the market breadth remained positive. About 1361 shares advanced against 979 declining shares on BSE.

12:40 pm Europe opens: European markets opened mostly lower, as a renewed fall in the price of oil and weaker trade in Asia weighed on sentiment.

The pan-European STOXX 600 was off 0.6 percent at the open, with all sectors posting solid losses.

London's FTSE 100 fell 0.6 percent around the open, dragged lower by the miners. Meanwhile the French CAC was off 0.6 percent and Germany's DAX slipped 0.7 percent.

12:20 pm Buzzing: Shares of Yes Bank rose over 2 percent intraday after the bank said it has acquired an 8 percent stake in Receivables Exchange of India (RXIL).

"Yes Bank has executed a share subscription and shareholders' agreement agreeing to subscribe for 20,00,000 equity shares of RXIL," it said in a BSE filing yesterday.

The bank said the subscription is equivalent to 8 percent of the post-issue paid-up capital of RXIL.

RXIL is a joint venture company set up by NSE Strategic Investment Corporation and Small Industries Development Bank of India (SIDBI).

12:00 pm Market Check
Equity benchmarks maintained uptrend in noon trade on short covering after yesterday's loss. Banking & financials, FMCG, oil & gas and infra stocks gained.

The 30-share BSE Sensex rose 128.78 points to 26892.24 and the Nifty advanced 40 points to 8243.60. The broader markets also remained firm as the BSE Midcap and Smallcap indices gained 0.4-0.7 percent.

About two shares advanced for every share declining on Bombay Stock Exchange.

Asian Paints and Tata Motors were only losers on Sensex while Reliance Industries, HDFC Bank, ITC and ICICI Bank were leading contributors. BHEL surged 3 percent.

Asia markets stumbled on the final trading day of the week, as a stronger dollar weighed on commodity prices overnight and snapped Wall Street's three-day winning streak.

11:55 am Interview: Mumbai-based producer and distributor of films Eros International is hopeful of bettering its margins, catalogue and syndication revenues in FY17. The production house's stock has gained traction on the success of Housefull 3 at the box office and a tie-up with Apple TV to showcase content.

In a free-wheeling interview with CNBC-TV18, Kishore Lulla, Executive Director, Eros International, said the company is targeting at least a 15-20 percent increase in revenue growth is in the current fiscal year. His optimism stems from the company securing satellite revenue for all films under its banner for FY17. "The whole slate for satellite has been sold," he said.

11:45 am FDI Pharma: Government is considering a proposal to relax foreign direct investment (FDI) norms in existing pharmaceutical companies with a view to attracting more overseas inflows.

According to a proposal of the Finance Ministry, FDI up to 49 percent should be allowed through the automatic route and anything beyond through approval of the Foreign Investment Promotion Board (FIPB), sources said.

The Department of Industrial Policy and Promotion (DIPP) and the Finance Ministry are discussing the proposal.

11:30 am Capital infusion: Government will have to infuse Rs 1.2 lakh crore into PSU banks by 2020 to bolster their balancesheets and make good the losses suffered by them, Moody's Investors Service said today.

This is way higher than an additional Rs 45,000 crore capital infusion plan envisaged by the government.

Moody's said the asset quality of the banks will remain under pressure over the next 12 months and increased provisioning would constrain profitability and limit internal capital generation.

"In view of their results for the fiscal year ended March 2016, Moody's analysis suggests capital requirements of about Rs 1.2 trillion for its 11 rated public sector banks, far higher than the remaining Rs 450 billion included in the government's budget for capital distribution to the banks until 2020," it said.

There is a sharp surge in market supported by rally in index heavyweights. The Sensex is up 173.75 points or 0.6 percent at 26937.21, and the Nifty up 51.80 points or 0.6 percent at 8255.40. About 1419 shares have advanced, 656 shares declined, and 105 shares are unchanged.

BHEL, M&M, Lupin, Adani Ports and Cipla are top gainers while Asian Paints, Tata Motors and Bhrati are losers in the Sensex.

Crude prices dipped further in Asia on a stronger dollar, dampening a rally that saw the commodity hitting 11-month highs earlier in the week. The losses were in line with a sell-off on equities markets from Asia to the Americas fuelled by worries about the state of the global economy.

The greenback was boosted by better than expected US unemployment numbers, making oil more expensive and dampening demand.

Traders, however, expect a fresh boost for oil futures if there are new signs of tightening supplies.

10:59 am Market rebounds: The Sensex gained 82.81 points at 26846.27, and the Nifty rose 27.35 points to 8230.95.

The market breadth continued to be positive as about 1383 shares advanced against 667 declining shares on BSE.


10:40 am Buzzing: Satin Creditcare Network shares surged 19 percent intraday after investment firm Morgan Stanley has picked up 2.6 percent equity stake in the company.

Morgan Stanley Asia (Singapore) has purchased 8.30 lakh shares at Rs 375 apiece through block deal on National Stock Exchange, which was worth over Rs 31 crore.

On the other side, Shorecap II has offloaded 10 lakh shares at Rs 376.25 and Rajsonia Consultancy Services 1.54 lakh shares at Rs 377.05, which were holding 12.23 percent and 2.26 percent stake in the company as of March 2016.

Satin Creditcare was incorporated in 1990 as a non-banking finance company.

10:20 am FII View: A number of brokerages have turned bullish on India of late, such as the likes of HSBC (turned neutral from underweight; target 26,000), Citi (upgraded target to 28,800) and CLSA (increased India overweight by 1 percent).

One of the notable changes in view that has been is brokerage house Ambit turning positive on India.

In a note to investors, Ambit said it had revised its earlier FY17-end target of 22,000 on Sensex to 29,500.

"Although the possibility of Sensex 22,000 remains real, it is no longer our base case scenario, thanks to the firefighting done by the RBI and the Banks Board Bureau," Ambit said in a note.

10:00 am Market Check
The market continued to consolidate with the Nifty hovering around 8200 level due to lack of global as well as domestic cues. FMCG, banking & financials and technology stocks were under pressure while infra, pharma and energy shares gained.

The Sensex declined 28.05 points to 26735.41 and the Nifty fell 6.50 points to 8197.10 while the broader markets outperformed. The BSE Midcap and Smallcap indices gained 0.3 percent and 0.6 percent, respectively.

The market breadth remained positive as about two shares advanced for every share declining on Bombay Stock Exchange.

Chris Wood of CLSA says Greed & Fear is going to add to the long-standing structural overweight in India in the relative-return portfolio to maintain the three times overweight.

Accordingly, the overweight in India will be increased by one percentage point, he adds.

9:55 am Contrarian call: As investors wring their hands over the impact of Britain's potential withdrawal from the European Union, otherwise known as "Brexit," one of the market's biggest bears delivered a surprising message. "I happen to think that a Brexit would be bullish for global economic growth," Marc Faber told CNBC's "Trading Nation" on Wednesday. "It would give other countries incentive to leave the badly organized EU." The editor and publisher of The Gloom, Boom & Doom Report emphasized that a vote on June 23 by Britain to leave the EU would be an ideal course of action for the country. Additionally, Faber expressed the belief that small countries like Croatia, Estonia and Malta would also prosper as independent nations versus being a part of a larger system.

9:45 am Monsoon update: Monsoon rains in India were 18 percent below average in the week to June 8, the weather office said on Thursday, as the onset of rainfall was delayed by nearly a week from its usual arrival on June 1.

Monsoon rains arrived at India's southern Kerala coast on June 8, easing fears of declining farm and economic growth after two straight droughts hit rural income and agricultural output.

9:30 am FII view: The Indian market is a "good place to be" but valuations are at a 50 percent premium besides the economy facing some problems with policy execution and some sectors facing deep stress, says Archie Hart of Investec.

In an interview with CNBC-TV18's Udayan Mukherjee, Hart also talked about the impending British referendum and said if exit camp wins, it's going to cause an instant reaction in the market followed by weeks of negotiations and handwringing.

The market has opened flat with negative bias. The Sensex is down 64.85 points or 0.2 percent at 26698.61, and the Nifty down 13.05 points or 0.2 percent at 8190.55. About 387 shares have advanced, 311 shares declined, and 38 shares are unchanged.

BHEL, Coal India, Adani Ports, ONGC and NTPC are top gainers in the Sensex while Infosys, M&M, Hero MotoCorp, ICICI Bank and Axis Bank are losers.

The Indian rupee fell further in early trade. The currency has opened at 66.80 a dollar, down 9 paise compared with 66.71 a dollar in previous session.

Pramit Brahmbhatt, Veracity Financial Services said continuous inflow from FIIs will help rupee to appreciate. A decisive break below Rs 66.50/USD will extend its gain towards Rs 66.20/USD, he added.

The dollar climbed the most this month versus the euro, and strengthened for the first time in three days against the yen.

In the global markets, US stocks retreated on Thursday after three days of gains as oil prices fell and global growth worries drove investors to safer assets like bonds.

Federal Reserve officials will meet next week, and the US central bank is expected to leave rates unchanged. Despite surprisingly weak monthly jobs data last Friday, Fed Chair Janet Yellen boosted sentiment by painting a mostly upbeat picture of the economy.

Asian shares are weak while investors poured funds into safe-haven assets amid festering concerns about a UK referendum that could push Britain out of the European Union.

Global bond yields dropped to new lows and perceived safe-haven currencies gained as investors sought shelter in the safety of bonds on concerns about Britain's referendum on European Union membership on June 23. The European Central Bank's commencement of its corporate bond purchase program also bolstered European bonds.

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