Global cues lift Sensex 92 points, Nifty above 10,400; Axis Bank up 5%
10 April 2018
3:30 pm Market Closing: The market closed higher for fourth consecutive session on Tuesday, with the Sensex rising 91.71 points to 33,880.25 and the Nifty gaining 22.90 points at 10,402.30.
SBI, ICICI Bank, Hindalco, Coal India, L&T and Axis Bank gained up to 5 percent while HDFC, HDFC Bank, Bajaj Finance were under pressure.
The Nifty Midcap index was up 50 points.
Union Bank, Bank of India, Federal Bank, IDFC Bank, Lemon Tree Hotels, Mahanagar Gas, Indraprastha Gas and Gujarat Gas were down up to 7 percent.
Balrampur Chini, Bajaj Hindusthan, Praj Industries, IIFL Holdings, Prataap Snacks, Ramco Cements, Ramco Systems, Fortis Healthcare, PC Jeweller, Nalco and Tata Power rallied up to 17 percent.
3:21 pm Market Update: The market continued to trade higher amid volatility as investors look for March quarter earnings that will start later in the week
ICICI Bank, Axis Bank, infra and metals stocks continued to support the market whereas selling pressure in HDFC twins and Tata Motors capped upside.
Global cues continued to support India as European markets were higher, after Chinese President Xi Jinping sought to soothe investor concerns about the prospect a full-scale trade war between the world's two biggest economies.
3:15 pm Funds withdrawal from Gold ETFs: Investors remained bearish on gold exchange-traded funds (ETFs) as they pulled out Rs 835 crore from the instrument in 2017-18, making it the fifth consecutive financial year of outflow.
The outflow has razed the asset under management (AUM) of gold funds by over 12 percent in the just concluded financial year, according to latest data available with Association of Mutual Funds in India (AMFI).
3:05 pm Buzzing: Metal stocks are on buyers’ radar on the back of rising aluminium prices as well as cooling off of trade war concerns between US and China.
The Nifty Metal index gained over 2 percent, led by gains in stocks such as Hindalco, Tata Steel, NMDC, NALCO, and Hindustan Copper, among others. These scrips gained up to 4 percent.
2:55 pm Road Project Completion: Dilip Buildcon said the project WCP-3 design, build, finance, operate, maintain and transfer (DBFOMT) of Hassan - Ramanathapura - Periyapatna in Karnataka on DBFOMT, annuity basis, has been completed.
The provisional completion certificate has been issued and declared fit for entry into commercial operation as on February 28, 2018 and consequently the company is entitled to maximum bonus of one annuity payment of Rs 26.28 crore in lieu of earlier completion of the said project, it added.
The trading window for dealing in the securities of the Company by its designated employees, directors and promoters shall be closed from April 10, 2018 to April 12, 2018 (both days inclusive).
2:45 pm Recommendation: ICICI Securities said metal stocks were the last to witness a recovery but given the high beta nature of the space, it expects the current momentum to continue in the near term as well.
Tata Steel has found support from its August 2017 levels and is likely to remain positive above these levels. In the current series as well, major Call writing was seen at the 600 strike, which has started witnessing closure. Thus, a further up move is likely in the stock. Hence, with a view of limited downsides in the stock, it advises writing OTM Put for the April series, it added.
2:35 pm Sugar Trade: In restricted activity, sugar prices ended steady at the wholesale market in the national capital today following sporadic demand amid adequate stocks.
Marketmen said scattered buying support from retailers along with sufficient stocks position mainly kept sweetener prices unchanged.
2:20 pm Crude Oil Prices: Oil markets rose by more than 1 percent, extending strong gains from the previous session, on hopes a trade dispute between the United States and China may be resolved without greater damage to the global economy.
Brent crude futures were at USD 69.51 per barrel, up 1.25 percent, from their last close.
US West Texas Intermediate crude futures were at USD 64.22 a barrel, up 1.26 percent.
2:15 pm Market Update: Benchmark indices continued to trade higher amid volatility, driven by ICICI Bank (up 3.6 percent), Axis Bank (up 4.6 percent), ITC (0.7 percent), Infosys (0.58 percent) and Reliance Industries (0.35 percent).
Investors digested Chinese President Xi Jinping's comments on plans to further open up the Chinese economy and look for corporate earnings that will start later in the week.
The 30-share BSE Sensex was up 123.67 points at 33,912.21 and the 50-share NSE Nifty rose 34.40 points to 10,413.80 while the Nifty Bank was up over 100 points.
2:05 pm Earnings Expectations: For March quarter earnings, Citi expects around 10 percent YoY growth of Citi coverage Universe, largely driven by strength in commodities sectors (oil & gas and steel) and domestic autos (excluding JLR).
Key drivers could be energy (seen up 33 percent YoY), domestic autos (48 percent YoY excluding JLR) and metals (steel, mainly) while laggards could be financials (seen down 3 percent YoY), pharma (8 percent YoY) and telecom.
It feels financials quarterly earnings could see some volatility. "We expect higher credit costs this quarter since RBI’s revised stressed asset framework may result in upfronted recognition of slippages. RBI's dispensation to allow banks to spread MTM losses over up to four quarters may result in some amount of provision write-back."
1:50 pm Approval to Resolution Plan: Monnet Ispat said pursuant to the provisions of Insolvency and Bankruptcy Code, 2016, the committee of creditors of the company has approved the resolution plan submitted by AION Investments Private II Limited & JSW Steels Limited by 98.97 percent favorable voting through the e-voting process.
1:37 pm Fundraising: LGB Forge has approved raising of funds upto Rs 28 crore by way of offer and issue of equity shares to the existing shareholders of the company on rights basis (Right Issue).
1:31 pm Housing Sales: Housing sales rose by 12 percent in seven major cities to 49,200 units during January-March period over the previous quarter on better demand from end-customers post enactment of new realty law RERA, according to property consultant ANAROCK.
Sales stood at 43,800 units in the October-December quarter of 2017 across seven cities -- Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad and Pune, the consultant said in its housing report for the first quarter of 2018.
New supply increased by 27 per cent to around 33,300 units in Q1 2018 from 26,300 units in Q4 2017. As a result, unsold inventory decreased by mere 2 per cent from 7.27 lakh units in Q4 2017 to 7.11 lakh units by Q1 2018.
1:18 pm Buzzing: Share price of Dilip Buildcon gained 1.7 percent intraday on execution of concession agreement with NHAI.
The company's wholly owned subsidiary DBL Chandikhole Bhadrak Highways has executed the concession agreement with the National Highways Authority of India (NHAI), Ministry of Road Transport and Highways.
The arm is going to undertake the rehabilitation and up-gradation to six-laning of Chandikhole-Bhadrak Section of NH-5 (New NH-16) in the state of Odisha to be executed as hybrid annuity project under NHDP phase V project.
1:10 pm Plant Shutdown: Vedanta said operations at its smelter plant in Tuticorin will remain suspended due to ongoing maintenance activity till further notice.
On March 27, the company had said that as a part of regular maintenance programme, its smelting operations at Tuticorin had undergone a maintenance shutdown for approximately 15 days, while refining and copper rod manufacturing operations would continue as usual.
However, in a filing to BSE today, the company said it had applied for renewal of consent to operate (CTO) for its existing smelter plant at Thoothukudi (also known as Tuticorin) and the application "has been rejected for want of more clarifications."
Now, the company is evaluating further course of action, it said.
12:45 pm Order Win: Welspun Corp said it has been awarded a contract for supply of 417 K MTs of large diameter pipes for a water project in the MENA Region.
With this addition, the company's current order book stands at an all-time high of 1.49 million MTs valued at Rs 9,544 crore.
12:32 pm Europe Trade: European markets opened higher after Chinese President Xi Jinping sought to soothe investor concerns about the prospect a full-scale trade war between the world's two biggest economies.
The pan-European Stoxx 600 opened up around 0.6 percent shortly after the opening bell, with almost all sectors and major bourses in positive territory.
12:18 pm SBI's UK subsidiary: The SBI has announced the launch of its UK subsidiary, SBI (UK) Limited, with an initial capital commitment of 225 million pounds from its parent entity.
India's largest state-owned bank, which celebrated the new subsidiary with a special event in London yesterday, becomes the first foreign bank in the UK to ringfence its retail division from its wholesale business.
SBI said that the ringfencing and subsidiarisation of the retail franchise SBI UK, the bank's largest overseas operation, offers UK customers "stability and reassurance" amidst continuing uncertainty around the UK's decision to leave the European Union (EU).
12:08 pm Auto Sales: Domestic passenger vehicle sales were up 6.38 percent at 3,00,722 units in March as against 2,82,698 units in the same month last year.
Car sales were marginally up at 1,91,082 units last month as against 1,90,236 units in March last year, according to the data released by the Society of Indian Automobile Manufacturers (SIAM) today.
Motorcycle sales last month jumped by 25.13 percent to 11,45,221 units compared to 9,15,259 units in March 2017.
Total two-wheeler sales in March were higher by 18.35 percent to 17,41,649 units compared to 14,71,636 units in the year-ago month.
Sales of commercial vehicles grew by 24.55 percent to 1,08,681 units in March as against 87,258 units, SIAM said.
11:55 am E-way Bill Roll Out: E-way bill for movement of goods within the state will be rolled out from April 15, starting with 5 states including Gujarat, UP and Kerala.
From April 1, the government had launched the electronic-way or e-way bill system for moving goods worth over Rs 50,000 from one state to another.
The same for intra, or within the state movement, will be rolled out from April 15, finance ministry said in a statement.
The five states which would form part of the first phase are Andhra Pradesh, Telangana, Gujarat, Kerala and Uttar Pradesh.
11:35 am Crude Oil Update: Oil prices extended gains on hopes that trade disputes between the United States and China could be resolved
US WTI crude futures were at USD 63.85 a barrel, up 0.68 percent, from their previous settlement. Brent crude futures were at USD 69.05 per barrel, up 0.58 percent.
11:24 am Buzzing: Shares of Healthcare Global Enterprises added 3 percent intraday as company approved allotment of equity shares on preferential basis.
The company approved the allotment of 9,34,500 equity shares at Rs 321 per share on preferential basis to M. Gopichand, one of the promoters of the company, for consideration other than cash.
11:14 am Tie-Up: Mahindra Electric joined hands with self-drive rental platform Zoomcar, as part of which the auto major will offer its 100 electric vehicle 'e20 plus' on the latter's platform in the capital.
Mahindra Electric, the electric mobility portfolio of Mahindra & Mahindra (M&M), said the tie up is aimed at promoting shared and cleaner mobility.
The vehicles under the deal are financed as part of an agreement between Zoomcar and Mahindra Finance, which will see Zoomcar obtain customised EV financing.
"Mahindra's commitment towards electric mobility continues. Our aim is to make EVs more mass adaptable in India in public transport, shared mobility and personal vehicles," Mahindra Electric CEO Mahesh Babu told reporters here.
Mahindra group has e2o plus, e-Verito and e-Supro vehicles in its electric vehicle portfolio.
Zoomcar, which operates in 30 cities across India, allows users to rent cars by the hour, day, week or month.
11:01 am Aluminium Trade: Aluminium prices rose further by 0.65 percent to Rs 140.20 per kg in futures as speculators indulged in enlarging positions, tracking a firm trend overseas and pick-up in domestic demand.
Analysts said, apart from positive global cues, pick-up in demand from consuming industries at the domestic markets, continued to influence aluminium prices in futures trade here.
10:50 am Market Update: The market is off its early high as investors after digesting China comments look for March quarter earnings that will be kicked off by Infosys later in the week.
The Nifty is hovering around 10,400 levels while the Nifty Metal is the biggest gainer among sectoral indices.
ICICI Bank, Axis Bank, Reliance Industries, Infosys, metals stocks continued to support the market but selling pressure in HDFC twins and Tata Motors capped upside.
The 30-share BSE Sensex was up 76.34 points at 33,864.88 and the 50-share NSE Nifty rose 15.90 points to 10,395.30.
About 1,200 shares advanced against 976 declining shares on the BSE.
10:25 am Genus Power in Focus: Genus Power Infrastructures has received BIS certification for its smart meters, the only smart meters to have received this certification.
This certification is a testimony of technical capabilities, strong evidence of the product quality and assurance of consistency in quality of the product and service with timely delivery, the company said, adding this is a significant milestone for Genus which will enhance market position as a technologically advanced meter supplier.
10:15 am Political Risk: Hemang Jani of Sharekharn feels political risks are not fully priced in, can arise at any point in time & affect sentiment and create new bouts of volatility. This year is election heavy, given the schedule of elections both across states and centre in 2019.
"We do not feel that some market participants are overemphasizing on political uncertainties. Political risk should not be taken lightly and dealt with proper hedges," he said.
10:05 am Gravita India: Shares of Gravita India added 3.3 percent as company started commercial production at Chittoor plant.
The company started commercial production of PPCP Granules by installing new imported washing line and extrusion line which is having annual capacity of 1200 MTPA.
The production from said plant will cater the needs of injection moulding and non-woven fabric industry globally.
“The company has plans to increase the capacity of said plant to 6000 MTPA by installing two more plastic recycling lines, company said in release.
“This plastic recycling plant is replica of existing plant situated at Phagi, Jaipur which is running successfully and will help the company to increase its topline and bottom-line in coming FY 2018-19.”
“The company has plans to make investment of Rs 5 crore out of which Rs 28 lakh has been invested for procuring and commissioning of above mentioned washing and extrusion line having capacity of 1 200 MTPA from internal accruals of the company,” it added.
9:55 am Buzzing: Share price of Alembic advanced 7.2 percent as the company is going to buyback its equity shares.
The company is going to buyback up to 1,02,50,000 equity shares of the company at a price of Rs from all the eligible shareholders of the company holding equity shares on the record date March 23, 2018.
The buyback offer will open on April 16, 2018 and will close on April 27, 2018.
9:45 am Market Update: The market continued to hold its opening gains following positive lead from global stocks after China's comments on free trade.
The 30-share BSE Sensex rose 133.40 points to 33,921.94 and the 50-share NSE Nifty was up 35.50 points at 10,414.90, driven by banks, metals, IT and infra stocks.
The midcaps also traded in line with frontliners while the Nifty Metal was the biggest gainer among sectoral indices, rising nearly 2 percent.
Wipro fell over a percent after the company hinted at an impact on its profitability as one of its telecom clients is undergoing insolvency proceedings.
9:35 am Rupee Trade: The rupee rose 12 paise to 64.91 against the US dollar at the forex market on increased selling of the greenback by exporters and banks.
Also, a higher opening of domestic equities supported the rupee, but the dollar's recovery against some currencies overseas, restricted the local unit's upmove, forex dealers said.
Yesterday, the rupee had retreated from its one-month high to close 5 paise lower at 65.02 against the US currency on fresh bouts of dollar demand from importers and corporate investors amid forex outflows.
9:24 am Buzzing: Shares of Axis Bank rose more than 2 percent after MD & CEO Shikha Sharma’s term has been reduced to seven months from three years at her request.
Sharma's re-appointment as the Managing Director & CEO of the bank was revised from June 1, 2018 up to December 31, 2018.
"Shikha Sharma, Managing Director & CEO of the bank has requested the board to reconsider the period of her re-appointment as the Managing Director & CEO of the bank be revised from June 1, 2018 up to December 31, 2018,” the bank said in a filing to the stock exchanges.
On December 8, 2017, the board of the third largest private lender had informed of its decision to re appoint Sharma as the MD & CEO, for a period of 3 years with effect from June 1, 2018, subject to requisite approvals.
The decision to reduce the term comes days after reports suggested the Reserve Bank of India had asked Axis' Board to reconsider Sharma's reappointment at the helm for the fourth term on the grounds of the bank's dwindling financial performance.
9:18 am Wipro falls 2%: Wipro has announced to the National Stock Exchange that one of its telecom service provider clients in India filed a petition to initiate insolvency resolution process with the National Company Law Tribunal in February 2018.
It subsequently admitted its claim in March 2018.
Since then, Wipro has been engaged with the client to discuss the potential outcome of the process. It has now estimated that this development will have an adverse impact on both revenue and profitability.
The impact would be 0.65-0.75 percent of consolidated revenues at the net income level for Q4FY18.
Morgan Stanley believes impact on IT Services revenues for the quarter is likely to be less than the impact on profitability, given the likelihood of provisions against receivables hitting the bottomline.
It thinks the company may still report revenues within the guided range.
9:15 am Market Update: Benchmark indices opened higher, following positive lead from global stocks after China's comments on free trade.
The 30-share BSE Sensex was up 111.20 points at 33,899.74 and the 50-share NSE Nifty gained 36.60 points at 10,416.
Hindalco, NALCO and Vedanta rallied up to 5 percent after comments from China.
Yes Bank, Axis Bank, Kotak Mahindra Bank, ICICI Bank, Tata Steel, Tata Motors and Cipla gained up to 1.6 percent.
Nifty Midcap index was up half a percent.
Dhampur Sugar, Balrampur Chini, Globus Spirits, Suzlon, Alembic, Max Financial, Gravita, Ipca Labs, GVK Power and Alok Industries rallied up to 6 percent.
Bhushan Steel, Apollo Tyres and Suven Life was down 1 percent.
9:05 am Technical Recommendations: We spoke to HDFC Securities and here’s what they have to recommend:
KEI Industries Ltd: BUY| Target Rs. 480 | Stop-loss Rs 402 | Return 11%
KNR Construction: BUY| Target Rs. 340 | Stop-loss Rs 284| Return 11%
Allahabad Bank: BUY| Target Rs. 60| Stop-loss Rs 51 | Return 10%
9:03 am Stocks in news: Axis Bank: Shikha Sharma asks Board to reconsider period of her re-appointment as Bank Head. Board has accepted Shikha Sharma's request pending approval from RBI
HDFC hikes retail prime lending rate by 20 bps w.e.f April 1
Alembic to buyback 1,02,50,000 equity shares at Rs 80 per share
Wipro: Telecom client in India filed a petition to initiate CIRP with NCLT. The company likely to see a negative impact of 65-75 bps on net income level
HealthCare Global Enterprises approved the allotment of 9,34,500 equity shares at Rs 321 per share on Preferential basis to the promoter of the company
ICICI Bank: Fitch has said that allegations pose reputational risks and will take appropriate action if risks to reputation and financial profile rise
9:00 am Market Check: Benchmark indices were higher in pre-opening trade on Tuesday, following positive lead from global stocks after comments from Chinese President Xi Jinping.
The SGX Nifty also indicated higher opening in Indian equity markets, rising 41.50 points to 10,434.50 on the Singapore Stock Exchange.
The 30-share BSE Sensex was up 164.11 points at 33,952.65 and the 50-share NSE Nifty gained 32.80 points at 10,412.20.
Axis Bank, HPCL, Hindalco Industries, Tata Motors, Tata Steel, Allahabad Bank, Federal Bank and HUL gained up to 8 percent.
Wipro fell 9 percent while ICICI Bank and Maruti Suzuki were down around a percent.
Asian markets advanced further as investors digested comments from Chinese President Xi Jinping on measures planned to further open up the Chinese economy. Japan's Nikkei and Hong Kong's Hang Seng gained 1 percent each while China's Shanghai Composite and Australia's ASX 200 were up 0.8 percent each.
US stocks closed well off their session highs on Monday. The Dow Jones industrial average rose 46.34 points to 23,979.10. The S&P 500 gained 0.3 percent to close at 2,613.16 while the Nasdaq composite advanced 0.5 percent to 6,950.34.