Nifty, Bank Nifty at 52-week closing high; Sensex up over 250 points

25 Jul 2016

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3:30 pm Market closing: The market has ended on a higher note with both Nifty and Nifty Bank end at fresh 52-week closing highs. The Nifty ended up 94.45 points or 1.1 percent at 8635.65. The Sensex was up 292.10 points or 1 percent at 28095.34. About 1721 shares have advanced, 999 shares declined, and 191 shares are unchanged. The Sensex ended at highest closing level since August 10, 2015.

BHEL, Maruti, SBI, Asian Paints and Sun Pharma were top gainers while Dr Reddy's, Bajaj Auto, Tata Steel and GAIL were losers in the Sensex.

3:00 pm Coal mines income: The government today said a revenue of around Rs 2,237 crore has already been generated till May-end from the allocation of 74 coal mines.

"The revenue already generated till May 31, 2016 from the allocation of 74 coal mines under the provisions of the Coal Mines (Special Provisions) Act, 2015 is Rs 2,237 crore (excluding royalty, cess and taxes) which shall be devolving entirely to the coal bearing state concerned," Coal and Power Minister Piyush Goyal said in a reply to Rajya Sabha.

The revenue which would accrue to the coal bearing states from the allocation of mines comprises of upfront payment as prescribed in allotment document, auction/allotment process and royalty on per tonne of coal production, the minister added.

2:59 pm Market Update: Equity benchmarks remained strong as the Sensex was up 285.77 points or 1.03 percent at 28089.01 and the 50-share NSE Nifty rose 89.65 points or 1.05 percent to 8630.85.

About 1727 shares advanced against 914 declining shares on the BSE.

2:50 pm Earnings estimates: India's largest car maker Maruti Suzuki is expected to report a 7.5 percent growth in profit at Rs 1,276 crore in April-June quarter compared with Rs 1,193 crore in year-ago period, according to average of estimates of analysts polled by CNBC-TV18. Lower operational growth is likely hit bottomline. It will announce earnings on July 26.

Revenue is seen rising 12.5 percent year-on-year to Rs 15,081 crore due to higher realisations, though volume growth slowed down from 14 percent in Q1FY16 to 2.1 percent in Q1FY17.

The company sold 3.48 lakh vehicles in June quarter against 3.41 lakh units in year-ago period. Domestic sales grew by 5.4 percent to 3.22 lakh units while exports declined 27 percent on yearly basis.

2:40 pm Earnings: FMCG company Bajaj Corp's first quarter (April-June) profit grew by 10.1 percent year-on-year to Rs 52.2 crore on the back of operational performance.

Revenue increased 1.7 percent to Rs 204.3 crore in the quarter ended June 2016 compared with Rs 200.9 crore in same period last year, the company said in its filing.

Other income during the quarter was up 27.3 percent at Rs 8.4 crore against Rs 6.6 crore in corresponding period of last fiscal.

Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) grew by 6.8 percent to Rs 70.9 crore and margin expanded by 160 basis points to 34.7 percent on yearly basis. Operational growth was supported by lower raw material cost that fell 14 percent in Q1.

2:20 pm Interview: With widespread monsoon this year, sentiments are turning positive, says Ramesh Iyer, Vice-Chairman & MD of M&M Financial Services adding that the worst is behind for the company now.

The company reported a subdued quarter with 2.25 percent fall in its net profit to Rs 87 crore and reduced its provisions to 30.5 percent to Rs 224.5 crore in Q1.

Asset quality quarter-on-quarter deteriorated to 36.9 percent at Rs 4,414.7 crore.

Change in product mix led to contraction in company's margins and not lending rate, Iyer says. The upcoming festival season in October-November will see a positive uptick for the company.

Non-performing assets (NPAs), which increased in Q1, is expected to improve going ahead. NPAs increased in states like Maharashtra, Madhya Pradesh and parts of Uttar Pradesh.

2:00 pm Market Check
Equity benchmarks extended rally in afternoon trade with the Sensex rising more than 250 points and the Nifty trading above 8600 level, led by banking & financials, auto and technology stocks.

The 30-share BSE Sensex was up 277.52 points at 28080.76 and the 50-share NSE Nifty rose 87.45 points to 8628.65. About 1710 shares advanced against 874 declining shares on the BSE.

On account of problems pertaining to developed markets, emerging markets look favourable from an investing point of view, Michael Every of Rabobank said, adding there are flows going into EMs now and India is a beneficiary of that.

1:55 pm Market outlook: Sandeep Shenoy of Pioneer Investcorp says that private sector banks cannot remain immune to the pain in the broader economy, though they will be impacted to a lesser impact as compared to public sector banks.

In a discussion on CNBC-TV18, Shenoy says the bad loan clean up process is only halfway through and that there could be negative surprises for another couple of quarters at least.

Judging from the quarterly earnings announcements so far, he feels earnings growth for the current financial year is unlikely to be around 18 percent estimated by a majority of analysts. He expects the number to be toned down in the coming days. The only positive is that the market is a bit more realistic about the problems facing the economy, and also that policy measures are underway to redress many of the challenges.

1:45 pm Boardroom: IT company Mphasis reported a decent set of numbers in its first quarter earnings on Saturday.

Net profit increased 38 percent to Rs 204.3 crore year-on-year (YoY) and income from operations grew 1.5 percent to Rs 1516.6 crore (YoY).

In an interview with CNBC-TV18, Ganesh Ayyar, CEO and ED of Mphasis along with CFO, V Suryanarayanan gave future guidance for the company finances and its business plans. The company will not change its margin guidance and will keep it between 14-16 percent for FY17, V Suryanarayanan, CFO of Mphasis said.

1:30 pm Market check: Nifty at highest intra-day level since July 23, 2015.

1:25 pm Market rises: The Sensex is up 220.28 points or 0.8 percent at 28023.52, and the Nifty is up 66.75 points or 0.8 percent at 8607.95. About 1714 shares have advanced, 825 shares declined, and 171 shares are unchanged.

The market is surging ahead. The Sensex is up 180.96 points or 0.6 percent at 27984.20, and the Nifty is up 52.65 points or 0.6 percent at 8593.85. About 1666 shares have advanced, 825 shares declined, and 169 shares are unchanged.

SBI, Maruti, ICICI, BHEL and  HDFC are top gainers while Dr Reddy's Labs, Axis Bank, Bajaj Auto, Tata Steel and HUL are losers in the Sensex.

Oil prices held near two-month lows amid worries that a global crude and refined product glut would weigh on markets for some time to come.

Paper stocks are on fire after Seshasayee Paper and Boards reported strong Q1 earnings.

12:42 pm Europe opens: European markets opened slightly higher, as investors tread cautiously amid another batch of earnings and prepare for key central bank meetings later this week.

The pan-European STOXX 600 was up 0.32 percent.

Investors worldwide are expected to keep a close eye on two leading central banks (US Federal Reserve and Bank of Japan) this week, as each institution meets just a month after the UK voted to leave the European Union.

12:35 pm FII View: On account of problems pertaining to developed markets, emerging markets look favourable from an investing point of view, said Michael Every of Rabobank.

Speaking to CNBC-TV18, he said: "There are flows going into EMs now and India is a beneficiary of that." Markets world over are in a 'precarious' position right now, he added. Though there is some rally in the equity markets, he is not too confident about the current rally.

Market sentiment indicates expectation of a hike in the interest rate by the US Fed, he said.

12:20 pm USFDA nod: Glenmark Pharmaceuticals has received final approval from the US health regulator USFDA for triamcinolone acetonide ointment, used in treatment of various skin conditions.

" Glenmark  Pharmaceuticals Inc, USA has been granted final approval by the US Food and Drug Administration (USFDA) for triamcinolone acetonide ointment USP, 0.5 percent," it said in a BSE filing.

Approval has been granted for generic version of triamcinolone acetonide ointment USP, 0.5 percent of Perrigo New York, Inc. This ointment is used to treat various skin conditions including eczema, dermatitis, allergies and rash.

Quoting IMS sales data for the 12 months to May, Glenmark said Triamcinolone Acetonide Ointment achieved annual sales of around USD 4.4 million.

12:00 pm Market Check
Equity benchmarks remained higher in noon trade with the Sensex rising over 100 points, led by banking & financials, auto and technology stocks.

The 30-share BSE Sensex was up 113.71 points at 27916.95 and the 50-share NSE Nifty rose 34.80 points to 8576 while the broader markets maintained outperformance.

The BSE Midcap and Smallcap indices gained 0.75 percent and 0.9 percent, respectively as more than two shares advanced for every share falling on the exchange.

HDFC, HDFC Bank, ICICI Bank, SBI, TCS and Maruti Suzuki were top contributors to Sensex's gains while Dr Reddy's Labs fell nearly 4 percent ahead of first quarter earnings due on July 26.

9:55 am Result poll: State-run lender Canara Bank 's first quarter (April-June) earnings are expected to remain under pressure due to higher credit cost. Profit is likely to fall 74.1 percent to Rs 124 crore and net interest income may decline 4.6 percent to Rs 2400.4 crore compared with year-ago period, according to average of estimates of analysts polled by CNBC-TV18. Net interest income is the difference between interest earned and interest expended.

9:45 am Boardoom: Riding on the back of a good earnings, Havells India expects a low double-digit volume growth in FY17. The electrical goods maker reported a 36.27 percent increase in standalone net profit at Rs 145.58 crore for the first quarter that ended on June 30, 2016. The company had posted a net profit of Rs 106.83 crore for the corresponding period in FY16, it said in a filing to the BSE. Net sales on a standalone basis during the quarter under review were up 17.05 percent at Rs 1,455.38 crore as against Rs 1,243.30 crore in the eary-ago period. Anil Rai Gupta, Chairman and Managing Director, Havells India, said all of the company's verticals, except cables, saw a 20 percent growth in the quarter. He said that the company is hopeful of registering a volume growth in the lower double-digits in FY17.

9:30 am Market outlook: Acknowledging that first-quarter earnings of a majority of companies in FY17 have been below expectations, Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, said that the current consolidation is just a pause in an otherwise strong market. He said factors like good monsoon and Seventh Pay Commission are likely to provide a thrust to economic recovery.

The next 3-6 months are challenging for the market but in the long run, it is a bull market, Shah said, adding that investors should extend their horizon to make money.

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The market is still range-bound with the Nifty above 8550. The 50-share index is up 23.40 points or 0.3 percent at 8564.60. The Sensex is up 58.19 points or 0.2 percent at 27861.43. About 1552 shares have advanced, 682 shares declined, and 126 shares are unchanged.

BHEL, SBI, HDFC, Maruti and ONGC are top gainers while Dr Reddy's, Axis Bank, Bajaj Auto, HUL and L&T are losers in the Sensex.

Oil prices dipped today, extending last week's losses on fresh worries about a global supply glut as more US rigs come back online and the dollar strengthens.

Both contracts sank Friday after a report showed the number of active US installations rose for a fourth straight week as firms are tempted to reopen them by the relatively higher prices. However, the increase in production adds to an already painful oversupply crisis.

10:30 am Buzzing: Ahluwalia Contracts (India) shares gained nearly 5 percent intraday on bagging construction projects worth Rs 472.81 crore.

".....has secured orders aggregating to Rs 472.81 crore for construction of institutional, hospital and residential building, including electrical, plumbing and firefighting services," the New Delhi-based construction company said in its filing.

Out of which, Rs 313 crore is for construction of residential complex for National Cancer Institute at Jhajjar Haryana, Rs 115.60 crore for construction of regional centre for National Security Guard at Kolkata and worth Rs 44.21 crore for civil, finishing and plumbing works for Tata Medical Centre at Kolkata.

With this, total order inflow during FY16-17 stood at Rs 965.46 crore, it said.

10:15 am FIIs investment: Overseas investors have infused more than USD 2 billion into the Indian capital markets so far this month on rising hopes of passage of the GST Bill in the Rajya Sabha and expectations of better corporate earnings.

The investment in July is followed by an outflow of Rs 4,373 crore in the preceding two months (May-June). The pullout was mainly due to outflows in debt markets.

According to depositors' data, the net investment of foreign portfolio investors (FPI) stood at Rs 8,086 crore in the stock market during July 1-22 while it was Rs 6,917 crore in the debt market, taking the total inflows to Rs 15,003 crore (USD 2.2 billion).

Experts are hopeful that the Goods and Services Tax (GST) Bill will be passed in the Upper House of Parliament.

10:00 am Market Check
Equity benchmarks continued to consolidate ahead of expiry of July derivative contracts while the broader markets outperformed with the BSE Midcap and Smallcap indices rising over half a percent.

The 30-share BSE Sensex was down 22.52 points at 27780.72 and the 50-share NSE Nifty declined 3.90 points to 8537.30. About two shares advanced for every share declining on the Bombay Stock Exchange.

Axis Bank lost 2 percent after disappointing set of earnings in Q1. Profit fell 21 percent on account of sharp spike in provisions for bad loans and also NPA worsened.

Dr Reddy's Labs declined nearly 2 percent while State Bank of India and Cipla gained 1 percent each.

9:55 am Brexit impact on UK: The Brexit vote will cost the UK up to USD 338 billion in lost merger-and-acquisition (M&A) activity by 2020 and the global economy up to USD 1.6 trillion, law firm Baker & McKenzie said on Monday.

"An active M&A market is all about confidence and credibility," Michael DeFranco, global chair of M&A at Baker & McKenzie, said in a report.

"To restore that confidence the UK government will need to get to grips with the enormous challenge of negotiating a new trading relationship with the EU as quickly as practically possible. Otherwise we move into more dangerous territory," he added.

The forecasts above are based on an adverse scenario where Brexit incites growing populism in mainland Europe and undermines EU support among remaining members.

9:45 am GST: Telecom industry has sought a clear cut position on levy of taxes on Value Added Services under the proposed GST regime, says a paper by Assocham-KPMG.

Certain VAS offerings such as ringtones come under the 'entertainment tax laws' in some states, the paper said, adding that as service tax is also liable on revenue generated from rendering such services, there is a dual levy on them.

The Goods and Services Tax (GST) regime "should provide clear and comprehensive provisions with respect to coverage of telecom services for providing clarity of levy of taxes on VAS, infrastructure sharing and e-commerce transactions, since these transactions could have different treatment under GST", said the paper.

9:30 am Buzzing: Shares of Equitas Holdings gained 5.6 percent intraday as its net profit jumped 64 percent in the quarter ended June of FY2016-17.

The share has got listed on exchanges on April 21, 2016 at Rs 146.53 per share, up 33 percent from issue price of Rs 110 per share. The company's raised about Rs 2,200 crore from IPO.

It has reported 64 percent jump in consolidated net profit at Rs 61.2 crore for the first quarter of 2016-17 financial year against net profit of Rs 37.4 crore in the
corresponding April-June quarter of 2015-16.

The market has opened flat on Monday with the Nifty below 8550. The 50-share index is down 21.65 points or 0.2 percent at 8519.55 and the Sensex is down 57.53 points or 0.2 percent at 27745.71. About 214 shares have advanced, 82 shares declined, and 28 shares are unchanged.

Adani Ports, ITC, Asian Paints, Maruti and GAIL are top gainers while Axis Bank, Cipla, BHEL, TCS and M&M are top losers in the Sensex.

The Indian rupee opened lower by 11 at 67.19 per dollar on Monday versus 67.08 Friday.

The dollar index rose to a more than four-month high on Friday as positive US data prompted investors to re-evaluate the likelihood of a rate hike from the US Federal Reserve while other central banks are seen cutting rates or adding stimulus.

Asian shares held near nine-month highs as worries over the impact of Britain's Brexit vote eased amid efforts to maintain growth, while the dollar was buoyed by a run of solid US economic data.

Policy makers from the Group of 20 countries agreed to work to support global growth and better share the benefits of trade, in a weekend meeting dominated by the impact of Britain's exit from Europe and fears of rising protectionism. MSCI's broadest index of Asia-Pacific shares outside Japan. Japan's Nikkei rose 0.4 percent.

US stock prices marked four straight weeks of gains last week, supported by renewed strength in the tech and telecom sectors and a stronger-than-expected report on manufacturing.

Crude prices inched down, staying not far from two-month lows hit in the previous session, amid worries over a global oil glut. A strong dollar and the fourth weekly rise in the US oil rig count have helped relieve pressure on crude futures. The world's biggest economies will work to support global growth and better share the benefits of trade, policymakers said on Sunday after a meeting dominated by the impact of Britain's exit from Europe and fears of rising protectionism.

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