Nifty ends below 8550, Sensex up in late surge;Tata Motors gains

08 Nov 2016

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3:30 pm Market closing: The market has ended higher in late surge. The Sensex was up 132.15 points or 0.5 percent at 27591.14 and the Nifty was up 46.50 points or 0.5 percent  at 8543.55. About 1376 shares advanced, 1508 shares declined, and 124 shares were unchanged. Tata Motors, GAIL, BHEL, Asain Paints and ICICI Bank were top gainers. Among Sun Pharma, Cipla, Adani Ports, Lupin and NTPC were losers in the Sensex.

2:58 pm Market Update: Equity benchmarks were marginally higher amid consolidation. The Sensex gained 49.06 points at 27508.05 and the Nifty rose 15.05 points to 8512.10.

2:45 pm Cargo traffic: Cargo traffic at India's top 12 ports went up by 6.27 percent to 370.04 million tonnes during April-October 2016, compared to the same period a year ago.

These ports, under the control of the Centre, had handled 348.21 million tonnes (MT) of cargo during April-October period of the previous fiscal.

"Cargo traffic at country's 12 major ports recorded a growth of 6.27 percent to 370.04 MT during April-October 2016 period," an official told PTI.

The growth in the traffic has been driven by a number of proactive measures that include mechanisation of terminal, augmenting infrastructure and improving the turnaround time, the official said.

2:30 pm Earnings: State-run power equipment maker Bharat Heavy Electricals (BHEL) surpassed analysts' expectations on quarterly earnings front as it turned profitable in July-September quarter. Profit for the quarter stood at Rs 109 crore against loss of Rs 180.8 crore in same period last fiscal.

Revenue during the quarter increased 12 percent year-on-year to Rs 6,664.5 crore.

Profit was estimated at Rs 96 crore on revenue of Rs 6,379 crore and EBITDA was expected at Rs 95 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

EBITDA (earnings before interest, tax, depreciation and amortisation) stood at Rs 155 crore in Q2 against loss of Rs 437.9 crore in year-ago period with margin at 2.3 percent.

2:20 pm Interview: State-owned NTPC today said it is is well on course to meet its target of generating 10 GW solar energy as part of the government's aim of 100 GW by 2022 .

"NTPC's commitment to add 10 GW solar energy out of government's overall commitment of 100 GW (Solar) is well on target for 2022," company's CMD Gurdeep Singh said in a statement here.

He also stressed on maintaining PSU's market leadership in the power sector through increase in renewable portfolio, while optimising the operations of existing fossil fuel fleet.

He said that more than 90 per cent of NTPC's current coal-based capacity addition are low carbon footprint, high efficiency and SC (super critical)/USC (Ultra Super Critical) units.

2:00 pm Market Check
Equity benchmarks remained directionless in afternoon trade as investors remained cautious ahead of the outcome of the US presidential elections. Even European markets were mixed in early trade.

The 30-share BSE Sensex was up 15.92 points at 27474.91 and the 50-share NSE Nifty gained 3.95 points at 8501 while the market breadth remained negative. About 1589 shares declined against 1165 advancing shares on the BSE.

Lori Calvasina, Chief US Equity Strategist of Credit Suisse says with the 2016 presidential election in final lap, the Credit Suisse Public Policy team anticipates a Hillary Clinton victory in the White House, gives a slight edge to the Republicans for the Senate, and expects the House of Representatives to stay firmly under Republican control.

Under a Clinton win with a split or Republican Congress, he anticipates a neutral to moderately positive move in US equities in the 0-7 percent range. Under a Trump win, he thinks US equities would fall and base case is for a downward move in the 5-10 percent range.

Varun Beverages rebounded after subdued listing, up 5.6 percent to Rs 464.30. PNB Housing Finance extended rally after yesterday's debut, up 9 percent to Rs 972. Both were most active shares on bourses, followed by Mindtree, ICICI Bank, Force Motors, Sun Pharma and Tata Motors.

1:50 pm Retail inflation expectation: Retail inflation is expected to soften to 4.1 percent in October and ease further to sub-4 percent level by November-December, largely helped by favourable base effect, says a Citigroup report. According to the global financial services major, CPI inflation is likely to slide further to sub-4 percent print by November-December before firming towards 4.5 percent by March 2017. "October CPI inflation could decline to 4.1 percent from 4.3 percent last month as the impact from a favorable base effect more than offsets the sequential increase in CPI index," Citigroup said in a note.

1:30 pm European markets: European stocks opened higher on clearer prospects that Hillary Clinton will become the next US President. The Pan-European Stoxx 600 climbed 0.07 percent on Tuesday's opening.

The campaign to win the White House has officially ended and US voters decide Tuesday who will replace Barack Obama. The Japanese finance minister, Taro Aso, said that if the US election triggers changes to currencies, the Japanese authorities will act to ensure stability of the yen.

The market seems to be cautious ahead of US elections tonight. The Sensex is down 42.56 points or 0.1 percent at 27416.43, and the Nifty down 14.55 points or 0.2 percent at 8482.50. About 1128 shares have advanced, 1592 shares declined, and 108 shares are unchanged.

Sun Pharma, Maruti, Adani Ports, Cipla and SBI are top gainers while Tata Motors, BHEL, Axis Paints and GAIL are gainers.

Rahul Singh, Managing Partner at Ampersand Capital Singh believes that in the event of a Democrat victory, it will be more negative for drug price control which might be a reality in the US. ''The bulk of the de-rating in the sector over the years partly captures it. There are still risks to the sector in terms of what the new regime would bring in terms of the various controls,'' he added.

12:59 pm Market update: Benchmark indices remained rangebound with the Nifty hovering around 8500.

The Sensex was down 5.21 points at 27453.78 and the Nifty fell 1.55 points to 8495.50. About 1546 shares declined against 1119 advancing shares on the BSE.

12:50 pm Agreement: GMR Airports (GAL), a subsidiary of GMR Infrastructure Limited, today signed the concession agreement with Government of Goa for the development and operation of north Goa's Greenfield International Airport at Mopa.

As per the concession agreement, GMR will design, build, finance and operate the international airport for 40 years with extension option for another 20 years. The construction period for the first phase of the project is three years from the date of financial closure and is expected to be operational by mid of 2020.

12:45 pm Poll: Ashok Leyland 's net profit may slip 10.5 percent at Rs 257.4 crore in July-September quarter from Rs 286.8 crore in corresponding quarter last fiscal. According to a CNBC-TV18 poll, the auto major's revenue may also fall 8 percent at Rs 4538 crore against Rs 4939.7 crore in year-ago period.

During the period, its EBITDA is seen down 18 percent at Rs 490 crore against Rs 596.4 crore while operating profit margin may stand at 10.7 percent versus 12.1 percent year-on-year.

12:30 pm Gold demand: India's gold demand could fall as much as 24 percent in 2016 to the lowest level in seven years due to higher prices and increased smuggling as the government seeks to bring transparency to bullion purchases, the World Gold Council (WGC) said.

Lower demand from the world's No.2 gold consumer could hurt global spot prices that have risen a fifth so far in 2016, but help the South Asian country to reduce its trade deficit. Gold is one of India's biggest expenses on its import bill.

India's gold demand in the first three quarters of 2016 fell 29 percent from a year ago to 441.2 tonnes, hit by price rises and government moves such as the mandatory disclose of tax code for high-value jewellery purchases, Somasundaram PR, managing director of the WGC's Indian operations, said on Tuesday.

He estimates in 2016 demand to fall to between 650 to 750 tonnes, the lowest since 2009 and far lower than last year's 858.1 tonnes.

12:15 pm LIC on Tata Group: Sources tell CNBC-TV18's Kritika Saxena that Life Insurance Company, possibly the second biggest owner of stakes in Tata Group companies, will not exit the group.

There will be no snap exit from Tata companies, say sources on behalf of LIC.

The channel has been able to confirm that LIC is backing Tata Sons and has assured the promoters that the insurer won't exit.

LIC is not taking any sides now, and doesn't see any reason to question the operations or working of the companies, finds the channel. LIC has said that the spat between Cyrus Mistry and Ratan Tata is a management issue.

In Tata Steel, LIC owns 13.62 percent at the end of September as against 15 percent at the end of December 2012. It halved its investments in Tata Chemicals to 3.33 percent from 6.82 percent, in Tata Elxsi to 1.24 percent  from 6.5 percent and in Voltas to 7 percent from 9 percent.

12:00 pm Market Check
Equity benchmarks as well as broader markets were rangebound in noon trade as investors turned cautious ahead of US presidential elections.

The 30-share BSE Sensex was down 12.98 points at 27446.01 and the 50-share NSE Nifty gained 0.45 points at 8497.50. The market breadth was negative as about 1395 shares declined against 1195 advancing shares on the BSE.

In US, Hillary Clinton continues to be the favourite, said Keith Parker of Barclays. The Republicans will control the House, which reduces chances of aggressive change in policies like taxes and regulations.

A further upside is expected in case of Clinton win. However, if Donald Trump wins, a 10 percent downside is expected, Parker told CNBC-TV18. Barclays is overweight on emerging markets (EMs).

11:30 am Boardroom: Godrej Consumer Products reported 11.2 percent growth in total income to Rs 2,439 crore in the July-September quarter. Margins for the company improved to 19.1 percent from 18.7 percent year-on-year. Volumes grew at 9 percent. Speaking to CNBC-TV18, Vivek Gambhir, MD of the company said that its soap segment is facing challenges, but is expected to normalize in 1-2 quarters. Gambhir is expecting the company to grew better in second half of the year. Home personal appliances business will contribute majorly to growth.

The market is absolutely flat with the Nifty hovering around 8500. The Nifty is up 2.70 points at 8499.75 and the Sensex is up 7.08 points at 27466.07. About 1135 shares have advanced, 1268 shares declined, and 95 shares are unchanged.

Tata Motors, BHEL, ICICI Bank, Bajaj Auto and Dr Reddy's Labs were top gainers while Sun Pharma, Maruti Suzuki, ITC, Cipla and Adani Ports are losers in the Sensex.

Gold prices recovered by Rs 22 to Rs 30113 per 10 grams in futures trade today as speculators raised their bets amid a firm global trend.

Market analysts attributed the rise in gold prices at futures trade to positive global. Meanwhile, gold in global market fell the most in one month in yesterday's trade as investors shifted out of havens and into more bullish bets amid speculation that Hillary Clinton is closer to winning the US election.

10:58 am Market Update: Equity benchmarks remained marginally higher with the Sensex rising 16.54 points to 27475.53 and the Nifty up 5.35 points at 8502.40.

10:40 am Poll: Net profit of Bharat Forge may fall 26 percent to Rs 129 crore in July-September quarter from Rs 175 crore in corresponding quarter last fiscal. According to CNBC-TV18 poll, the auto company may see revenue growth slipping 18 percent at Rs 917 crore against Rs 1116.8 crore in year-ago period.

In Q2, EBITDA is likely to be at Rs 255 crore against Rs 321.4 crore while operating profot margins may stand at 27.8 percent versus 28.7 percent year-on-year.

10:25 am Maruti downgrade: After maintaining it as top pick since April-13, Credit Suisse has downgraded Maruti Suzuki as most positives seem priced in. At around 24x 1-year forward PE, it is the most expensive auto stock globally, it feels.

While auto original equipment manufacturers have de-rated by around 20 percent in the last few years, Maruti has re-rated by around 50 percent, it says.

According to its research note, with the start of the Gujarat plant, there could be a around 100 basis points impact on margins. Post Ignis, the pipeline of new launches looks a bit dry. With the 28 percent rate slab, it seems that there will not be much benefit from GST as compared to a 5-6 percent price cut envisaged earlier.

Credit Suisse says further upgrades look unlikely given that 18-20 percent volume growth in FY18 is already baked in. It raised FY17 EPS by around 8 percent (Q2 results) but broadly maintained FY18/FY19 EPS and target price at Rs 6,000.

10:00 am Market Check
Equity benchmarks continued to consolidate as investors have maintained cautious stance ahead of the outcome of US elections. Asian markets were mixed in trade.

The 30-share BSE Sensex was up 13.90 points at 27472.89 and the 50-share NSE Nifty gained 7.95 points at 8505. The broader markets were also volatile.

The market breadth was marginally positive as about 1198 shares advanced against 802 declining shares on the BSE.

Varun Beverages saw a tepid listing on bourses. PepsiCo India's franchise bottling partner debuted at Rs 430 per share, down 3 percent from its issue price of Rs 445. It touched an intraday low of Rs 416.85, down more than 6 percent.

Tata Motors topped the buying list on Sensex, up nearly 4 percent as Credit Suisse believe the GBP depreciation will drive a multi-year outperformance for the stock (JLR) in a way similar to what happened with the JPY for the Japanese stocks. The brokerage house has upgraded to outperform with increased target price at Rs 720 (from Rs 510 earlier), representing a 40 percent upside.

ICICI Bank gained more than 2 percent after second quarter earnings while BHEL rose 2 percent ahead of Q2 results.

9:55 am New listing: PepsiCo India's largest franchise bottling partner Varun Beverages is set to debut on the stock market in a short while. It has fixed issue price at Rs 445, the higher end of price band. The issue has not seen a great response from investors as high valuations and debt might have resisted investors to rethink at the time of listing. The issue, which opened for subscription during October 26-28, was oversubscribed 1.89 times on final day. It was largely supported by qualified institutional buyers, whose reserved portion oversubscribed 4.94 times whereas response from retail and high networth individuals was tepid.

9:45 am Result poll: Ashok Leyland 's net profit may slip 10.5 percent at Rs 257.4 crore in July-September quarter from Rs 286.8 crore in corresponding quarter last fiscal. According to a CNBC-TV18 poll, the auto major's revenue may also fall 8 percent at Rs 4538 crore against Rs 4939.7 crore in year-ago period. During the period, its EBITDA is seen down 18 percent at Rs 490 crore against Rs 596.4 crore while operating profit margin may stand at 10.7 percent versus 12.1 percent year-on-year.

9:30 am FII view: Lori Calvasina, Chief US Equity Strategist of Credit Suisse says with the 2016 presidential election in final lap, the Credit Suisse Public Policy team anticipates a Hillary Clinton victory in the White House, gives a slight edge to the Republicans for the Senate, and expects the House of Representatives to stay firmly under Republican control.

On the broader market, it is the opinion of the US equity strategy team that a Democratic sweep would be a mildly negative to mildly positive event for US equities in the range of +/- 4 percent, he says.

Under a Clinton win with a split or Republican Congress, he anticipates a neutral to moderately positive move in US equities in the 0-7 percent range. Under a Trump win, he thinks US equities would fall and base case is for a downward move in the 5-10 percent range.

The market has opened on a strong note as autos and IT stocks support. The Sensex is up 126.94 points or 0.5 percent at 27585.93 and the Nifty up 43.15 points or 0.5 percent at 8540.20. About 403 shares have advanced, 87 shares declined, and 23 shares are unchanged.

ICICI Bank, Tata Motors, BHEL, Adani Ports and ONGC are gainers while HUL is the only loser stock in the Sensex.

The Indian rupee has opened flat at 66.72 per dollar on Tuesday against previous close 66.74.

Ashutosh Raina of HDFC Bank said, "The countdown to the US Presidential Election results continues. The FBI announcement helped risk assets with dollar index moving higher and equities rallying across globe."

The dollar jumped after Democratic party candidate Hillary Clinton gets eleventh-hour election boost . The dollar strengthened for the first time in seven days against its peers after FBI's decision to absolve Hilary Clinton boosted demand for riskier assets.

The Mexican peso, which has moved in opposite step to perceived chances of Republican Donald Trump winning the elections, retained its strong gains from Monday.

Asian shares rose in early trade ahead of the US presidential election, with investor sentiment buoyed by improving prospects for Democrat Hillary Clinton to win.

Wall Street surged on the eve of the US presidential election. US stocks racked up their biggest one-day percentage gain since March 1, while a volatility measure recorded its biggest drop since late June.

Crude oil prices edged higher, supported by a rebound in other asset classes, but gains were capped by a rallying dollar and doubts over OPEC's planned production cuts.

Gold prices fell as the dollar and stocks rallied. The precious metal saw its steepest decline since October 4.

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