Nifty ends at 8190, Sensex flat; RIL & ICICI drag, Bharti soars
04 January 2017
3:30 pm Market closing: Benchmark indices remained directionless for the third consecutive session on Wednesday, especially after last week's rally.
The 30-share BSE Sensex was down 10.11 points at 26633.13 and the 50-share NSE Nifty fell 1.75 points to 8190.50 while the Smallcap outperformed benchmarks on positive breadth.
The BSE Smallcap index gained 0.5 percent as about 1624 shares advanced against 1163 declining shares on the exchange.
Reliance Industries, ICICI Bank and Cipla were biggest losers, down 1-2 percent while Bharti Airtel rebounded sharply, up nearly 4 percent.
2:59 pm Market Update: Equity benchmarks remained directionless with the Sensex falling 8.91 points to 26634.33 and the Nifty down 2.95 points at 8189.30.
About 1543 shares advanced against 1151 declining shares on the BSE.
2:54 pm Maruti offers discount: Maruti Suzuki, the country's largest car maker, has started offering Rs 10,000-18,000 discount on Swift and Rs 10,000 on Ciaz, reports CNBC-TV18 quoting unnamed sources.
The company also offered a discount of Rs 10,000-20,000 on Swift Dzire and Rs 20,000-25,000 on WagonR.
2:44 pm Acquisition: HCL Technologies said the acquisition of Butler America Aerospace, LLC has been completed with effect from January 3, 2017.
2:34 pm Sugar prices up: Sugar prices shot up further by Rs 110 per quintal at the wholesale sugar market in the national capital today following bumper demand from stockists and bulk consumers, powered by lower output this year.
Marketmen said heavy buying by stockists, retailers and bulk consumers, triggered by thin supplies from mills mainly kept sweetener prices in the green zone for the third straight day.
Besides, waning stockpiles due to consecutive lower production was the main reason behind price rise, they quoted.
Sugar mill delivery M-30 and S-30 prices jumped up further by Rs 110 each to end at Rs 3,640-3,720 and Rs 3,630-3,710 per quintal.
2:18 pm FDI: Foreign direct investment (FDI) into the country grew by over 27 percent to USD 27.82 billion during April-October this fiscal.
The FDI stood at USD 21.87 billion in April-October 2015-2016, according to the Department of Industrial Policy and Promotion (DIPP).
The main sectors which have attracted the foreign inflows include services, telecom, trading, computer hardware and software and automobile.
India receives maximum FDI from Singapore, Mauritius, the Netherlands and Japan.
The inflows increased by 23 percent to USD 55.6 billion in the last financial year.
2:00 pm Market Check
Benchmark indices remained listless with the Nifty hovering around 8200 level due to lack of global cues. Investors awaited the outcome of two-day's GST council meet later today and quarterly earnings that will begin with Infosys next week.
The 30-share BSE Sensex was up 7.36 points at 26650.60 and the 50-share NSE Nifty gained 3.10 points at 8195.35 while the broader markets continued to outperform with the BSE Midcap and Smallcap indices rising 0.15 percent and 0.65 percent, respectively.
The market breadth remained positive as about 1636 shares advanced against 966 declining shares on the exchange.
Bharti Infratel, HCL Technologies, BHEL, Tech Mahindra, Bajaj Auto, ONGC, Tata Motors and Wipro were top gainers with 1.5-3 percent upside while Reliance Industries, HUL, Lupin, ICICI Bank, Cipla, Kotak Mahindra Bank, ACC and Eicher Motors were under pressure, down 0.6-2 percent.
Markets in Europe were flat today as investors awaited flash inflation figures for the euro zone.
1:45 pm European markets: Markets in Europe open slightly higher continuing the gains seen in Asia on Wednesday after the US dollar nearly reached a 14-year high.
The pan-European Euro Stoxx was 0.11 percent higher on Wednesday with the major bourses trading in positive territory.
The new year has started with the release of upbeat economic data, boosting global equities. Further economic data is expected this Wednesday with the release of the latest flash euro zone inflation figures at 10 a.m. London time. The Bank of England is also publishing the latest mortgage lending numbers.
1:30 pm e-wallet: The State Bank of India (SBI) has blocked its customers from transferring cash into e-wallets through netbanking. However, customers can top-up up the e-wallets via debit and credit cards. The Reserve Bank of India has asked clarification from the bank on this. Clarifying the issue, SBI chairman Arundhati Bhattacharya said that the service has been blocked because of recent breaches and security reasons. The bank has a committee that is looking into high risk and security breaches. She emphasized that the situation is temporary and will be reversed soon.
The market is rangebound with the Nifty hovering 8200. The 50-share index is up 7.40 points at 8199.65 and the Sensex is up 12.55 points at 26655.79. About 1647 shares have advanced, 916 shares declined, and 602 shares are unchanged.
BHEL, ONGC, Asian Paints, Tata Motors and Wipro are top gainers while Reliance, HUL, Cipla, Lupin and ICICI Bank are top losers in the Sensex.
Indian companies have raised close to Rs 27,000 crore by issuing non-convertible debentures (NCDs) to retail investors in the current fiscal so far to meet their business needs. In the entire 2015-16, firms had mobilised Rs 38,812 crore through the route.
The funds have been raised for expansion plans, to support working capital requirements and other general corporate purposes.
NCDs are loan-linked bonds that cannot be converted into stock and usually offer higher interest rates than convertible debentures.
According to the latest data with Securities and Exchange Board of India (Sebi), companies have raised funds totalling Rs 26,965 crore through retail issuance of NCDs during the current fiscal (till January 6).
12:59 pm Market Update: Benchmark indices remained sluggish in afternoon trade. The Sensex was up 14.32 points at 26657.56 and the Nifty gained 6.25 points at 8198.50.
About 1605 shares advanced against 927 declining shares on the BSE.
12:51 pm Coffee exports: India's coffee exports rose by 18 percent to 3,60,949 tonnes during the 2016 calendar year on strong demand and higher international prices, according to the Coffee Board.
In value terms also, the outbound shipments of coffee increased by 8.13 percent to Rs 5,568.13 crore even as the export realisation was lower at Rs 1,54,263.42 a tonne.
As per the Coffee Board's latest data, the overall coffee exports increased to Rs 3,60,949 tonnes in 2016 from 3,05,680 tonnes previous year.
"Our export volumes have gone up because we had record 2015-16 crop and international prices improved in the second half of 2016," a senior Board official told PTI.
12:40 pm State elections dates: Election Commission has announced polling dates for five states.
It said assembly elections in Uttar Pradesh will begin on February 11 in seven phases. The final phase will be held on March 8.
Elections in Uttarakhand will be held on February 15, in Punjab & Goa on February 4 and Manipur on March 4.
Counting of all five states elections will be held on March 11.
12:25 pm Buzzing: Ramco Systems shares jumped more than 11 percent intraday on signing multi-million dollar deal with Panasonic Group.
"Panasonic Group of companies in Malaysia has signed a multi-million-dollar strategic deal with Ramco Systems Sdn. Bhd. Malaysia part of India-headquartered HR software major Ramco Systems to digitise and transform HR and payroll operations for nearly 20,000 employees nationwide on a unified platform," the Chennai-based human resource management solutions provider said in its filing.
Its Human Capital Management (HCM) solution will integrate with multiple enterprise applications and finance systems in individual companies for statutory and payroll requirements.
"Ramco HCM with global payroll will be our growth lever in 2017 and will play a significant role in consolidating our leadership in the region," Virender Aggarwal, CEO, Ramco Systems said.
12:15 pm Oil price outlook: If the Organisation of the Petroleum Exporting Countries (OPEC) members comply with the supply cut to bring down inventories of crude oil, the crude oil price per barrel may go as high as USD 70 a barrel, says Virendra Chauhan, Oil Analyst at Energy Aspects. The price per barrel may rise to around Rs 59-60 by the end of the current quarter.
But he also warns that prices may also see a downtrend if key countries don't cut output. He is worried by Iraq's constant production rise and he fears that Iran along with Iraq may fail to comply with the production cut.
After 8 years, the OPEC members finally agreed to cut oil production in November after a supply glut across the world led to a sharp fall in crude prices.
12:00 pm Market Check
Benchmark indices as well as broader markets erased some morning gains, weighed by index heavyweights Reliance Industries, ICICI Bank and HDFC.
The 30-share BSE Sensex was down 9.13 points at 26634.11 and the 50-share NSE Nifty slipped 1.15 points to 8191.10. About two shares advanced for every share declining on the BSE.
HDFC, Bharat Financial, Jubilant Life, Kushal Trade, BPCL, Century Textiles and Maruti Suzuki were most active shares.
Oil edged higher, with top exporter Saudi Arabia expected to raise prices for its crude as part of planned supply cuts, although a strong dollar and moderate economic growth prospects restricted gains.
US West Texas Intermediate crude futures were trading at USD 52.70 per barrel, up 0.71 percent, from the last settlement. Brent crude futures were up 0.7 percent, at USD 55.86 a barrel.
11:55 am Aviation: After a long rough patch, Indian aviation is finally booming, but that burst of growth is now taking a toll on the industry's infrastructure.
High operating costs, intense competition and the collapse of Kingfisher Airlines had weakened both business and civil sectors in previous years, but recently the Indian market has turned a corner into the world's fastest growing, largely thanks to supportive government policies.
India is currently the sole bright spot in Asia's aviation sector, Neil Book, CEO at the largest independent aviation firm JSSI, told CNBC's "Squawk Box" on Wednesday.
Private jet sales are up and the emerging middle/upper classes have witnessed double-digit growth rates in travel, he explained.
11:45 am Exclusive: The implementation of the Goods & Service Tax (GST) Bill on April 1 is looking highly impossible now. The GST Council in its meeting today is likely to debate on a possible date implementation of the bill. It will also take up the crucial issue of dual control. Members have told CNBC-TV18 that the council will also discuss fresh list of demerit goods for cess. The states are demanding a compensation of Rs 55,000 crore in case of any losses. Sources say that the states will seek to have control over taxes on income below the Rs 1.5 crore threshold. The center is pitching for control over services.
11:30 am FII view: Speaking to CNBC-TV18 Ajay Srivastava, CEO of Dimensions Corporate Finance Services said that this year's Budget will be different from last year's owing to two reasons. ''Macro-economically, we are worse off now than before and two, we are highly over invested in the market.'' He believes MNC stocks are a good bet as a lot of them are better-managed and cater to international markets. ''There is always a possibility of a takeout,'' he said, adding that banking and high capex stocks are equally high on his list. Highly leveraged good quality industrial companies are also on his good books. ''We are ferreting them out. Leverage is not a bad word.'' He also spoke about the CBDT clarification that came last week that proposed to double-tax FPIs. He said he is still waiting for clarifications to come in and that right now it is not bothering a lot of people.''
The market is gradually picking pace. The Sensex is up 20.22 points at 26663.46, and the Nifty up 8.15 points or 0.1 percent at 8200.40. About 1561 shares have advanced, 674 shares declined, and 641 shares are unchanged.
Tata Motors, ONGC, BHEL, Bajaj Auto and Coal India are top gainers while Reliance, Cipla, Bharti, Lupin and ICICI Bank are losers in the Sensex.
Demonetisation took its toll on the Indian services sector in December as the business activity contracted for the second consecutive month amid steeper reduction in incoming new orders, a monthly survey showed today.
The Nikkei India Services Purchasing Managers' Index (PMI), which tracks services sector companies on a monthly basis, stood at 46.8 in December, little changed from November's 46.7, indicating a further solid contraction in output.
The index that slipped into contraction territory in November remained in that zone as the rupee ban led to the sharpest fall in new business since September 2013. A reading above 50 shows expansion while a score below denotes contraction.
10:59 am Market Update: Benchmark indices were flat with a positive bias. The 30-share BSE Sensex rose 10.61 points to 26653.85 and the 50-share NSE Nifty gained 4.50 points at 8196.75.
About 1547 shares advanced against 663 declining shares on the BSE.
10:39 am Services PMI: Business activity in the Indian service sector fell for the second consecutive month in December, reflecting a steeper reduction in incoming new work. Backlogs continued to rise, while employment decreased fractionally. Panel members widely blamed the deterioration in economic conditions on the rupee demonetisation, with concerns towards the speed of the recovery weighing heavily on sentiment. Meanwhile, input costs rose further, but efforts to boost demand led some firms to lower their charges, Nikkei IHS Markit says in its report.
The seasonally adjusted headline Nikkei India Services Business Activity Index registered 46.8 in December, little-changed from November's reading of 46.7 and indicating a further solid contraction in output.
10:20 am Buzzing: Shares of Godrej Properties rose more than 3 percent intraday as it has sold over 300 apartments at its recently launched project Godrej Green.
''Within two months of launch of its project Godrej Green in Pune, the company sold over 300 apartments, which represent 75 percent of total 400 apartments that were opened for sale,'' the company said in press release.
Godrej Green, is a part of a larger 31 acre residential developments at Undri, is spread across 10 acres.
The project offers 2BHK and 3BHK apartments with carpet areas ranging from 52.3 square meter to 82.5 square meter.
10:00 am Market Check
Equity benchmarks gained strength amid consolidation as investors awaited the outcome of two-day GST Council meet later today. The broader markets continued to outperform on strong breadth.
The 30-share BSE Sensex was up 70.33 points at 26713.57 and the 50-share NSE Nifty rose 23.15 points to 8215.40 while the BSE Midcap and Smallcap indices gained 0.6 percent each.
About three shares advanced for every share falling on the BSE.
HDFC rebounded after early losses, up 0.5 percent on short covering. Tata Motors extended gains, up more than 2 percent followed by ONGC, L&T, Infosys, Sun Pharma and ICICI Bank.
Reliance Industries erased early gains to trade 1 percent lower. ITC, Bharti Airtel and HDFC Bank remained under pressure with moderate losses.
Asian markets were mixed with the Japanese shares rising more than 2 percent as the yen weakened against a stronger dollar and recent surveys suggest global manufacturing sectors might be seeing a strong turnaround.
9:45 am Airlines woes: Raising red flags over dilution of FDI norms for local carriers, the Federation of Indian Airlines (FIA) has said the decision would place domestic players at a disadvantage as well as have serious implications on national security.
FIA, whose members are IndiGo, SpiceJet, Jet Airways and GoAir, have been vociferous in their opposition against relaxation of foreign direct investment norms for airlines.
In a strongly-worded letter to the Civil Aviation Ministry, the grouping has suggested that any dilution in substantial ownership criteria for domestic carriers should be done only on a reciprocal basis.
9:30 am FII view: Neelkanth Mishra of Credit Suisse says the momentous changes of 2016, both local and global, have not played out fully yet, and there continue to be significant policy risks and uncertainty. He expects a slowdown in real-estate and continued stress in the banking system to hurt growth for longer than current market expectations. ''GST will also be disruptive for a few quarters. The recent rate cuts may not revive credit growth for several quarters. We also believe there are limited avenues available to the government to provide a fast acting stimulus. We continue to prefer non-India low P/E stocks, or beneficiaries of low interest rates,'' he adds.
The market has opened flat on Wednesday. The Sensex is up 2.73 points at 26645.97 and the Nifty is up 9.15 points or 0.1 percent at 8201.40. About 656 shares have advanced, 186 shares declined, and 595 shares are unchanged.
Tata Motors, Infosys, Coal India, L&T and Maruti are top gainers while HDFC twins, Bharti, ITC and Lupin are losers in the Sensex.
The Indian rupee opened marginally higher at 68.29 per dollar versus previous close 68.33.
NS Venkatesh of Lakshmi Vilas Bank said, "The rupee is likely to take cues from the equity market movement and is expected to trade in the range of 68.20-68.55/dollar today."
US dollar rose to its highest in 14 years against the euro and a basket of major currencies yesterday after data showed solid growth in US manufacturing. The dollar index has pulled back marginally today on profit booking.
Among Asian markets, Japanese shares up more than 1 percent morning as the yen weakened against a stronger dollar, and after a private survey suggested the manufacturing sector might be recovering.
The Nikkei 225 leaped up 1.73 percent while the Topix bounced up 1.83 percent, likely due to expectations of a weaker yen after the greenback hit a 14-year high overnight against a basket of currencies.
Wall Street rose sharply as a post-election rally extended into the new year, helped by gains in Verizon Communications and technology companies Alphabet and Facebook.
US stocks have surged over the past two months on expectations that President-elect Donald Trump will stimulate the economy with tax cuts and infrastructure spending and slash regulations in the financial industry.