Nifty ends below 8350, Sensex down 112 points; Coal India up 1%
05 July 2016
3:30 pm Market closing: The market has ended lower with the Nifty below 8350. The Sensex was down 111.89 points or 0.4 percent at 27166.87, and the Nifty slipped 34.75 points or 0.4 percent at 8335.95. About 1285 shares have advanced, 1461 shares declined, and 147 shares are unchanged.
Coal India, BHEL, HDFC, Tata Steel and Wipro were gainers while GAIL, Bharti Airtel, Hero MotoCorp, Tata Motors and NTPC were losers.
3:10 pm Moody's on India: India's growth over the coming years will be challenged by lacklustre global demand, high corporate leverage and impaired credit supply, Moody's Investors Service today said.
The passage of land acquisition and Goods and Services Tax (GST) Bill has stalled, which illustrates that "political friction will keep the reform process uneven and slow-moving," it said.
"Domestic political developments amid an uncertain global environment in 2016 are likely to keep the market sentiment volatile," Moody's said in 'Inside India' report.
3:00 pm Buyback: Coal India board will consider proposal of buyback of shares on July 11.
2:55 pm Buzzing: Larsen and Toubro (L&T) shares bounced back in afternoon trade after bagging Mumbai Metro III project, and export orders from Mitsubishi Hitachi.
"Mumbai Metro Rail Corporation has announced the commencement of the Mumbai Metro Line 3 project to be executed by heavy civil infrastructure business of L&T Construction, along with its partner, STEC of China," says the engineering and infrastructure major in its filing.
The value of the project is Rs 5,273 crore.
Meanwhile, L&T through its joint venture companies L&T-MHPS Boilers Private Limited (LMB) and L&T-MHPS Turbine Generators Private Limited (LMTG) has also secured export orders worth USD 71.3 million from Mitsubishi Hitachi Power Systems (MHPS).
2:35 pm More foreign money for Axis Bank? Cabinet Committee on Economic Affairs (CCEA) has approved today hike in foreign ownership in Axis Bank to 74 percent from 62 percent.
The stock recouped some losses after this news to trade at 539.40, down 0.7 percent.
2:20 pm Interview: C K Birla Group firm Orient Electric is eyeing 20-25 percent growth in topline this fiscal on the back of increasing demand for its LED lightings and fans, a senior company executive said today.
"We are expanding our fans and LED lightings businesses in a big way. The government has embarked on UnnatJyoti by Affordable LEDs for All (UJALA) scheme to promote use of LED lightings to reduce power consumption. We see a huge demand coming from domestic consumers as well as industries for these products," Chief Executive Rakesh Khanna told PTI here.
"Also, the demand from Energy Efficiency Services (EESL), an initiative of the Power Ministry, is also growing. We see these developments as an opportunity for growth in the LED light segments." The company, which clocked revenue of Rs 1,200 crore last fiscal, is eyeing 20-25 percent increase in topline in 2016-17, he added.
2:00 pm Market Check
Equity benchmarks fell further in afternoon trade with the Sensex declining over 100 points, tracking weakness in European markets.
The 30-share BSE Sensex slipped 115.17 points or 0.42 percent to 27163.59 and the 50-share NSE Nifty declined 42.35 points or 0.51 percent to 8328.35.
The market breadth was negative as about 1492 shares declined against 1167 advancing shares on BSE.
European stocks extended losses as investors took stock of renewed concerns over the Brexit vote and its impact on the wider economy, sending the pound to a 31-year low and oil prices sliding. The pan-European STOXX 600 was down 1.62 percent.
Crude prices dipped, with Brent falling back below USD 50 per barrel as economic concerns took centre stage with many analysts saying oil demand will stall later this year. International benchmark Brent crude oil futures were trading at USD 49.09 per barrel, down 2.02 percent from their last settlement. US West Texas Intermediate (WTI) crude futures were down 2.65 percent at USD 47.69 a barrel.
1:55 pm Flat steel: Government has initiated a probe into dumping of certain flat steel products from China and the European Union with an aim to protect domestic industry from cheap imports.
Essar Steel India and JSW Steel Coated Products had filed a petition before the Directorate General of Anti-Dumping and Allied Duties (DGAD) for initiation of anti-dumping investigation and imposition of taxes on the alleged dumped imports of "colour coated/pre-painted flat products of alloy or non-alloy steel" originating in or exported from China and the EU.
The DGAD said it "prima facie finds sufficient evidence of dumping" of the products from these two regions.
1:45 pm Dish TV looks for buyer? In what can be a big move, Dish TV is in talks to buy Videocon DTH, reports CNBC-TV18's Nisha Poddar quoting sources.
The two companies are negotiating on valuations close to USD 1 billion. This is because Videocon's ask price is currently higher than what Dish TV has offered.
Even the lenders have suggested that sale of Videocon DTH to Dish TV is likely.
Nasdaq-listed Videocon DTH has market capital of USD 855 million and has a net debt of Rs 1600 crore. The losses that the company had last fiscal year stood at Rs 92.2 crore. While Videocon DTH has denied any deal talks with Dish TV, the latter has not offered any comment to CNBC-TV18 query.
1:30 pm India overtakes China: India maintained its supremacy over China in pharmaceutical exports in 2015 with a growth of 7.55 percent to USD 12.54 billion, the commerce ministry said today.
"India's pharmaceutical exports continued its lead over China in 2015...India maintains its supremacy over China in pharmaceuticals," the ministry said in a statement.
While India's pharma exports grew from USD 11.66 billion to USD 12.54 billion in 2015, recording a growth of 7.55 percent, China's exports rose by 5.3 percent to USD 6.94 billion, it added. "India moved ahead of China in all important markets such as the US, Africa and the European Union," it added.
The market continues to fall with the Nifty 8350. The 50-share index is down 23.90 points or 0.3 percent at 8346.80. The Sensex is down 74.44 points or 0.3 percent at 27204.32. About 1267 shares have advanced, 1301 shares declined, and 129 shares are unchanged.
BHEL, Reliance, Tata Steel, Adani Ports and SBI are top gainers while GAIL, NTPC, Tata Motors, Bajaj Auto and Asian Paints are losers in the Sensex.
Services sector grew at its slowest pace in seven months in June, marking the third straight month of a declining growth rate, as new business orders turned sluggish, a monthly survey showed today, adding to the clamour
for rate cuts by RBI.
Besides, future expectations for the business growth dipped to the lowest since February, raising concerns about sustainability of the economic upturn. Experts also believe that rise in input costs may make it difficult for the Reserve Bank to lower the rates, given the central bank's priority to keep inflation in check.
12:42 pm Europe opens: European stocks opened lower as investors take stock of renewed concerns over the Brexit vote and its impact on the wider economy.
The pan-European STOXX 600 was down 0.48 percent.
12:35 pm Buzzing: Southern Online Bio Technologies shares are locked at 20 percent upper circuit at Rs 10.11 after receiving orders from Andhra Pradesh and Telangana.
"...has received an order for supply of 14,544 kilo liters of bio diesel towards annual requirement for 10 percent blend from Andhra Pradesh State Road Transport Corporation for its 76 depots," says the company in its filing.
The value of order is Rs 79.99 crore per annum which is likely to continue for a period of three years.
Additionally, it has also received an order from Telangana State Road Transport Corporation (TSRTC) for supply of 4641.71 kilo litre of bio diesel for its 35 depots for a period of six months. The order is valued at Rs 23.2 crore for six months and extendable for further period of one year.
12:20 pm Wind power capacity: India's wind power capacity is set to grow 30 per cent or 4,300 MW in 2016-17, helped by capacity addition in Andhra Pradesh, Gujarat and Madhya Pradesh, among others, Suzlon Group Chairman Tulsi Tanti said.
At present, the total wind power installed capacity in the country is around 27 GW, accounting for about 9 per cent of India's total installed capacity.
"India is a very promising and demanding market. It is set to grow by 30 per cent annually. In 2016-17, the country will add about 4,300 MW of wind power," Tanti told reporters here.
Suzlon has its rotor blades manufacturing facility in Bhuj and maintains sites for some of its clients.
12:00 pm Market Check
Equity benchmarks as well as broader markets continued to consolidate after recent run-up. Private financials, FMCG, technology and select auto stocks declined while oil & gas and metals stocks gained.
The 30-share BSE Sensex fell 46.76 points to 27232 and the 50-share NSE Nifty declined 17.40 points to 8353.30 while the market breadth was marginally positive as about 1301 shares advanced against 1123 declining shares on the Bombay Stock Exchange.
Anil Dhirubhai Ambani Group stocks hogged the limelight today as Reliance Infrastructure, Reliance Power, Reliance Capital and Reliance Communications gained 2-3 percent.
Meanwhile, Prime Minister Narendra Modi today carried out a major expansion of his Council of Ministers, inducting 19 new faces, including three MPs each from Uttar Pradesh, Gujarat & Madhya Pradesh, and four from Rajasthan.
Prakash Javadekar, who held the independent charge of environment, was the lone minister promoted to the cabinet rank while all new inductees took oath as ministers of state.
11:55 am Market check: The Sensex is down 14.10 points at 27264.66, and the Nifty is down 9.10 points at 8361.60. About 1259 shares have advanced, 1128 shares declined, and 112 shares are unchanged. BHEL, Reliance, Adani Ports, Tata Steel and ONGC are top gainers. GAIL, Bajaj Auto, NTPC, Tata Motors and Hero MotoCorp are losers in the Sensex.
11:45 am Cabinet expansion: Prime Minister Narendra Modi today carried out a major expansion of his Council of Ministers, inducting 19 new faces, including several dalit and OBC leaders as well as from poll-bound states like UP.
Prakash Javadekar, who held the independent charge of environment, was the lone minister promoted to the cabinet rank while all new inductees took oath as ministers of state.
Today's exercise underlines BJP's attempts at wooing dalits and OBCs, whose votes would be crucial to its fortunes in key states like UP and Gujarat. All barring Vijay Goel and Faggan Kulaste are new faces while a few have been ministers in BJP-ruled state governments.
11:30 am FII view: HSBC has raised its rating on India to 'overweight' from the earlier 'neutral' and upped its Sensex target to 28,500 from 26,000 for this year-end.
Domestic market is picking up in India and earnings expectations of 12 percent are more realistic, says Herald Van Der Linde of HSBC.
''India is a more defensive market,'' he says, adding that earnings growth is expected in certain sectors like IT, private banks and rural-related companies.
A 4-5 percent upside is seen in the market from current levels. However, the domestic market still faces key risks like monsoon, to-be-appointed Reserve Bank governor, China and global events.
The market is struggling in red as auto stocks are dragging. The Sensex is down 73.34 points or 0.3 percent at 27205.42, and the Nifty down 24.90 points or 0.3 percent at 8345.80. About 1137 shares have advanced, 1144 shares declined, and 115 shares are unchanged.
BHEL, Tata Steel, Adani Ports, Coal India and SBI are top gainers while GAIL, NTPC, Tata Motors, Bharti Airtel and Bajaj Auto are losers in the Sensex.
Prime Minister Narendra Modi's mid-term expansion is taking place with 19 new ministers taking the oath in Rashtrapati Bhavan.
Prakash Javadekar, who currently serves as MoS Environment, has been elevated to the Cabinet rank. Senior Ministers Arun Jaitley, Rajnath Singh, Manohar Parrikar and Sushma Swaraj will retain their Cabinet posts.
The first expansion had occurred in November 2014. There are currently 64 Union ministers, including the Prime Minister, and there can be a maximum of 82 of them under a constitutional bar.
10:59 am Market Update: Equity benchmarks extended losses with the Sensex falling 93.40 points to 27185.36 and the Nifty falling 31.65 points to 8339.05.
10:50 am June sevices sector growth: Growth in India's services sector slowed to a seven-month low in June as new orders continued to soften, a business survey showed on Tuesday.
Though input prices rose, service firms were barely able to raise selling prices, suggesting the central bank may have room to cut interest rates again in coming months if inflationary pressures in the broader economy moderate.
The Nikkei/Market Services Purchasing Managers' Index fell to 50.3 in June from May's 51.0, its 12th month above the 50 mark that separates growth from contraction.
The new business sub-index, an indicator of domestic and foreign demand, cooled to a 11-month low of 50.5 in June from May's 50.9.
10:32 am Interview: L&T Power today said that it has won an export order worth USD 71 million from Mitsubishi Hitachi in Indonesia.
Indian power is yet to pick-up and hence, L&T is looking for projects overseas, says SN Roy, Whole time director & Senior Executive VP of the company. L&T Power is focusing on South Africa, Turkey, Egypt and parts of Middle East for projects.
The margins from the projects are expected to be higher than those from domestic projects.
Components for the project will be manufactured in Hazira in Surat and the order will be completed in a year's time, he says.
10:16 am Stake sale: Infrastructure lender IFCI has sold about 0.5 percent stake in NSE for Rs 89 crore at a time when the bourse is firming up plans for listing.
IFCI sold 2.25 lakh shares, or a 0.5 percent stake, in the stock exchange at a price of Rs 3,950 apiece, IFCI said in a regulatory filing.
At that price, IFCI fetched Rs 88.8 crore from the buyers whose name was not disclosed by the seller.
IFCI has however put on hold selling its remaining 3.05 percent stake in NSE. It did not attribute any reason for this.
Last week, SBI had sold 5 percent stake in the bourse NSE to Mauritius-based Veracity Investments for Rs 911 crore, valuing the exchange at over Rs 18,200 crore.
10:00 am Market Check
Equity benchmarks continued to consolidate after a rally in previous six sessions. The Sensex fell 28.80 points to 27249.96 and the Nifty declined 15.55 points to 8355.15.
The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.2-0.3 percent. Even the market breadth was positive as about 1049 shares advanced against 861 declining shares on the Bombay Stock Exchange.
UltraTech Cement touched a record high of Rs 3,600 intraday in opening but came off day's high on profit booking. The company finalised acquisition of 21.2 MTPA cement capacity of Jaiprakash Associates for Rs 16,189 crore. JP Associates rallied 35 percent.
Meanwhile, there will be announcement of cabinet reshuffle today. As many as 19 new ministers, half a dozen of them from Uttar Pradesh which goes to polls in 2017, are set to be inducted into his team by Prime Minister Narendra Modi.
According to sources, the expansion-cum-reshuffle being carried out by Modi is also expected to see elevation of at least one minister to Cabinet rank. Some of the 19 new ministers are expected to get Independent charge, the sources said.
9:55 am Fertiliser price cut: The retail prices of non-urea fertilisers including DAP have been slashed by up to Rs 5,000/tonne following drop in global prices of raw materials, Union Minister Ananth Kumar said.
The state-run fertiliser firms Rashtriya Chemicals and Fertilisers (RCF) and National Fertilizers Ltd (NFL) as well as private firm Indian Potash Ltd (IPL) have agreed to reduce the price of non-urea fertilisers, the Fertiliser Minister said.
The retail price of Di-ammonium Phosphate (DAP) has been cut by Rs 2,500 to Rs 22,000/tonne, Muriate of Potash (MoP) by Rs 5,000 to Rs 11,000/tonne, while complex fertilisers rates have been brought down by Rs 1,000/tonne.
For a bag of 50 kg, the effective rate for DAP would come down by Rs 150, MoP by Rs 250 and other NPK fertilisers by Rs 100.
9:45 am Big deal: Jaiprakash Associates and UltraTech approved an amendment to the draft sale agreement that was signed in March this year to sell JP Associates cement business to the latter.
UltraTech will buy JP's cement five operating units, amounting to a capacity of 17.2 million tonnes per annum for Rs 16,189 crore and pay an additional Rs 470 crore for a grinding unit.
JP Associates current debt stand's at Rs 28,000 crore alongwith Rs 2,000 crore in a subsidiary. Of this, Rs 12,000 crore will be transferred to UltraTech, says Rahul Kumar, Director & CFO of JP Associates. The company will have close to Rs 15,000-16,000 crore debt left post the deal.
9:30 am FII view: Suhas Harinarayanan, JM Financial says the market is no longer in the value zone. ''Given that the market is now pricing in a higher probability of a double-digit EPS growth, there looks to be only a few domestic factors that could drive the market higher in the near-term. Our recommended, bottom-up, model portfolio continues to be skewed towards private financials, healthcare, & consumer discretionary.''
Soon after opening in mildly green, the market slipped into red. The Sensex is up 60.53 points or 0.2 percent at 27339.29 and the Nifty is up 8.60 points or 0.1 percent at 8379.30. About 223 shares have advanced, 75 shares declined, and 20 shares are unchanged.
ICICI Bank, ITC, Adani Ports, Bharti Airtel and Tata Steel are top gainers while ONGC, Bajaj Auto and Wipro are losers in the Sensex.
The Indian rupee opened lower by 6 paise at 67.33 per dollar against previous close 67.27. Yen held steady against the dollar on safe haven buying. The currency has gained more than 3 percent since the UK.
Ashutosh Raina of HDFC Bank said, "The strong rally in USD-INR has been halted by aggressive intervention. Expect the pair to trade in the 67-67.50/dollar range in near term."
All eyes will be on the Cabinet re-shuffle today. As many as 19 new ministers, half a dozen of them from Uttar Pradesh which goes to polls in 2017, are set to be inducted into his team by Prime Minister Narendra Modi.
Among global markets, Asian shares stepped back after five straight days of gains today as investors took stock of a rally driven by the hope that central banks will provide stimulus to offset a likely downturn triggered by Brexit.
MSCI's broadest index of Asia-Pacific shares outside Japan. Japan's Nikkei .N225 dropped 0.5 percent. Financial and commodities markets in the United States were closed on Monday for Independence Day.
The Bank of England has indicated it could take provide stimulus measures to support the economy in coming months. Many investors also expect the European Central Bank and the Bank of Japan could expand their monetary easing. Base metal prices were also bolstered by talk of stimulus in China.
Yen held steady against the dollar on safe haven buying. The currency has gained more than 3 percent from Brexit. Crude prices decline as signs of slowing demand in Asia weighed. Gold prices were near USD 1350 an ounce.