Sensex ends higher, Nifty near 10,500; SBI down 1%
13 April 2018
3:30 pm Market at Close: Shares have ended the day and week on a positive note, with the Nifty closing near 10,500-mark.
The Sensex is up 91.52 points or 0.27% at 34192.65, and the Nifty up 21.90 points or 0.21% at 10480.60. The market breadth is negative as 1265 shares advanced, against a decline of 1435 shares, while 156 shares are unchanged.
Adani Ports, Wipro, and Tech Mahindra were the top gainers, while SBI, Axis Bank, BPCL and Bajaj Finserv lost the most.
3:25 pm Fundraising: HDFC Bank said it plans to raise Rs 50,000 crore through bonds in the next 12 months to fund business expansion.
The decision to this effect will be taken in the board meeting on April 21, 2018, HDFC Bank said in a regulatory filing.
The funds will be raised by issuing Perpetual Debt Instruments (part of Additional Tier I capital), Tier II Capital Bonds and Long Term Bonds (Financing of infrastructure and affordable housing) up to a total of Rs 50,000 crore in next 12 months through private placement mode, it said.
3:05 pm CJI issue: The Supreme Court today decided to examine a PIL filed by former law minister Shanti Bhushan challenging the existing roster practice of allocation of cases by the Chief Justice of India (CJI).
A bench comprising Justices A K Sikri and Ashok Bhushan sought the assistance of Attorney General K K Venugopal and Additional Solicitor General Tushar Mehta in dealing with the PIL stating that the CJI cannot exercise arbitrary power in allocation of cases.
However, the bench took objection when Bhushan's counsel made an attempt to bring to its notice the unprecedented January 12 press conference held by four of the court's most senior judges -- Justices J Chelameswar, Ranjan Gogoi, M B Lokur and Kurian Joseph -- who had accused Chief Justice Dipak Misra of arbitrarily allocating cases.
2:45 pm OMCs in focus: Oil retailers declined after Brent crude oil futures started moving towards USD 73 a barrel.
BPCL share price fell nearly 3 percent while IOC slipped 1.6 percent and HPCL 1 percent.
Oil explorer ONGC, however, gained nearly a percent.
2:32 pm Crude Update: Oil prices are set for their biggest weekly gains since last July following a jump to a more than three-year high earlier in the week on tensions over Syria and shrinking global oil inventories.
London Brent crude futures were up 0.81 percent, at USD 72.60 a barrel.
NYMEX crude for May delivery was up 0.88 percent, at USD 67.66 a barrel.
Both contracts are set to rise around 7 percent for the week, the biggest weekly gain since July.
2:20 pm Market Update: Benchmark indices turned volatile ahead of Infosys Q4 earnings due later in the day.
The 30-share BSE Sensex was up 9.77 points at 34,110.90 and the 50-share NSE Nifty fell 3.40 points to 10,455.30.
The market breadth also turned negative as about 1,387 shares declined against 1,157 advancing shares on the BSE.
2:05 pm Market Outlook: Sharekhan said projection of a normal monsoon in CY2018, pickup in investment cycle, industrial capex and improving demand add to the positive news. However, rising crude basket, wobbly
deficit numbers and dark clouds of global trade disruptions are key challenges. In this backdrop, we expect FY2019 to be a volatile year for Indian markets, one which will test fortitude as well as provide opportunities to pick attractive businesses.
It believes careful and pragmatic approach in investment will be the key to wealth creation.
1:47 pm Market Update: The market gained strength against in afternoon as technology stocks and Reliance Industries continued to support, but the selling pressure select banks capped upside.
TCS is the biggest gainer among Nifty50 stocks, rising 3 percent while Infosys gained over 1 percent ahead of Q4 earnings later in the day. The Nifty IT index is up 1.5 percent.
1:35 pm Gold Trade: Gold prices rose and were set to post a small gain for a second week running, supported by tensions over Syria.
US gold futures gained 0.10 percent to USD 1,343.20 an ounce.
Spot gold is expected to rise to USD 1,348 per ounce, as it has found a support at USD 1,334, said Reuters' technical analyst Wang Tao, reports CNBC.
1:21 pm Market Update: The market is off its day's high on correction in banks, with the Nifty trading below 10,500 levels.
Infosys also lost some gains as investors turned cautious ahead of its March quarter earnings and FY19 guidance announcement.
The 30-share BSE Sensex was up 63.82 points at 34,164.95 and the 50-share NSE Nifty rose 12.60 points to 10,471.30.
Nifty Bank, Auto, Financial Services and FMCG indices slipped into the red.
1:10 pm M&A Deals: Corporate India announced mergers and acquisitions worth USD 1.5 billion in March, taking the deal tally for the first quarter of 2018 to USD 18.53 billion, says a report.
According to assurance, tax and advisory firm Grant Thornton, March saw 31 M&A deals worth USD 1,499 million, down 92 percent in value terms from the year-ago month when deals worth USD 23,822 million were announced by way of 28 such transactions.
The January-March period saw 118 deals worth USD 18,529 million, while the same quarter last year witnessed 105 merger and acquisition (M&A) deals worth USD 27,477 million.
Barring the USD 23 billion Vodafone-Idea merger announced in first quarter of 2017, January-March quarter this year witnessed 2.3 times increase in deal values.
1:02 pm FPI Investment Limit: To boost inflows of foreign funds into Indian capital markets, regulator Sebi has decided to raise the investment limit for foreign portfolio investors (FPIs) in central government securities and corporate bonds in two tranches.
It has been decided to enhance limit for investment by FPIs in two tranches from April 12 and October 1.
The move is part of an effort by Securities and Exchange Board of India (Sebi) to push inflow from overseas investors in the country's capital markets.
"Limit for FPIs in central government securities shall be enhanced to Rs 2,07,300 crore on April 12 and Rs 2,23,300 crore on October 1, respectively," the regulator said in a circular.
Earlier, investment limit for foreign portfolio investors (FPIs) was Rs 1,89,700 crore.
12:51 pm Market Update: The market continued to trade higher for the seventh consecutive session after macro data. Investors await Infosys earnings.
The 30-share BSE Sensex was up 191.38 points at 34,292.51 and the 50-share NSE Nifty gained 52.80 points at 10,511.50.
Technology, banking & financials stocks and Reliance Industries continued to support the market
12:40 pm Europe Update: European equities opened slightly higher as investors brace for earnings reports from US banks.
The pan-European Stoxx 600 was 0.15 percent up with most sectors moving above the flatline.
In Asia, shares were mostly higher as geopolitical concerns eased. President Donald Trump tweeted Thursday that he had never said an attack on Syria would be imminent. "Could be soon or not soon at all," Trump said.
As a result, investors are likely to focus and react to upcoming earnings. JP Morgan Chase, Citigroup and Wells Fargo will kick off the earnings season, reports CNBC.
12:23 pm Market Update: Benchmark indices extended rally in afternoon, with the Sensex rising 198.88 points at 34,300.01 and the Nifty gaining 57 points at 10,515.70.
About 1,464 shares advanced against 931 declining shares on the BSE.
12:05 pm Order Win: Reliance Infrastructure EPC has received the Letter of
Award (LOA) from the Mumbai Metropolitan Region Development Authority (MMRDA) for three packages worth Rs 1,584 crore for the construction of Mumbai Metro for the NorthSouth Metro-4 corridor which will run between Kasarwadavali in Thane and Wadala. The stock gained 2 percent.
11:55 am Buzzing: Premier Explosives (PEL), active in the field of explosives and solid propellants, and the French defence company NEXTER, specialized in land systems and ammunition have decided to tie-up for manufacturing Bi-Modular Charge Systems (BMCS) in order to respond to the needs of the Indian Ministry of Defence.
The stock gained 3 percent.
11:45 am Market Update: The markets remained strong ahead of Infosys earnings, continuing uptrend for the seventh consecutive session.
The Sensex is up more than 150 points and the Nifty is trading above 10,500 levels.
The Nifty Midcap index extended gains, rising 0.8 percent while all sectoral indices are in the green barring FMCG.
Infosys is up 1 percent as analysts expect 2 percent dollar revenue growth and over a percent growth in constant currency revenue. The constant currency revenue guidance by the company for FY19 is expected to be around 6-8 percent.
11:30 am Newgen in focus: PR Savings Bank has recently partnered with Newgen to drive operational efficiency and business growth through customer centricity in its loan approval process.
The bank wanted to increase and diversify its loan book growth in two-wheeler and teacher's loan segment through smart engagement model. The bank is now able to link different touch points to provide responsive and high availability system using Newgen's Business Process Management and Enterprise Mobility Framework, the company said.
11:02 am China's Exports Fall: China's exports growth unexpectedly fell in March, the first drop since February last year, raising questions about the health of one of the economy's key growth drivers even as trade tensions rapidly escalate with the United States.
March import growth beat expectations, however, suggesting its domestic demand may still be solid enough to cushion the blow from any trade shocks. That left China with a rare trade deficit for the month, also the first drop since last February.
The latest readings on the health of China's trade sector follow weeks of tit-for-tat tariff threats by Washington and Beijing, sparked by US frustration with China's massive bilateral trade surplus and intellectual property policies, that have fueled fears of a global trade war.
China's March exports fell 2.7 percent from a year earlier, lagging analysts' forecasts for a 10.0 percent increase, and down from a sharper-than-expected 44.5 percent jump in February, which economists believe was heavily distorted by seasonal factors, reports Reuters.
10:50 am NBCC in Focus: NBCC has signed a MoU with Skill Development Institute (SDI), Bhubaneswar for planning, designing and construction of 'Skill Development Institute' on April 12, 2018 amounting Rs 300 crore (approximately) wherein NBCC will work as project management consultant at 7 percent fees.
The stock gained a percent.
10:41 am Order Win: Ashok Leyland, flagship of the Hinduja Group and the largest suppliers of mobility solutions to the Indian Army, has won another critical order from the Ministry of Defence (MOD).
The contract is for supplying High Mobility 10x10 vehicles (HMV 10x10).
This order will end a long search by the Indian Army, who have been looking for HMV 10x10s to carry the Smerch Rockets, this initial order is worth over Rs 100 crores.
The stock price rallied 3 percent.
10:30 am Market Update: Benchmark indices continued to trade higher after macro data, as investors look for Infosys earnings due later in the day.
The 30-share BSE Sensex was up 142.69 points at 34,243.82 and the 50-share NSE Nifty rose 39.30 points to 10,498.
The market breadth breadth was positive as about two shares advanced for every share falling on the BSE.
10:20 am Rupee Outlook: Bhaskar Panda of HDFC Bank told CNBC-TV18 that the risk appetite will be back in play after the US President softened his stance both on Syria and ongoing trade war with China.
In India, the USD-INR should benefit in the beginning and trade in a range of 65.20-65.35 against the US dollar, he feels.
10:10 am Earnings Poll: Country's second largest software services exporter, Infosys, is set to kick start the March quarter earnings season today. Not just Infosys, the entire IT sector outperformed the benchmark Nifty50 index during the January-March period. It is a seasonally weak quarter for Infosys but analysts expect numbers to be good compared to the previous year.
The IT firm gained 8.6 percent and the Nifty IT index was up 7 percent while the Nifty50 fell 4 percent in Q4FY18. This indirectly indicates the sector concerns seem to have bottomed out and there could be better growth going ahead.
Analysts on an average expect 2 percent dollar revenue growth and over a percent constant currency growth in Q4 YoY while the constant currency revenue guidance is expected to be around 6-8 percent.
10:03 am Rupee Trade: After opening higher, the rupee shed 3 paise to 65.29 against the US dollar despite better-than-expected inflation numbers released yesterday.
Yesterday, the rupee staged an impressive recovery from its five-month low towards the fag-end and closed higher by 5 paise to close at 65.26 against the US dollar.
9:55 am Emkay Research on Macro Data: IIP growth remained strong at 7.1 percent YoY in February 2018, higher than our estimate of 6.2 percent.
IIP in last 4 months have been trending in the range of 7-8 percent. The recovery in growth has also been broadbased and is further accentuated by a lower base.
Significant growth in automobiles and in capital goods oriented exports such as machinery has shifted the trajectory of growth upwards.
IIP growth in FY19 is likely to escalate further to an average of 6-6.5 percent from FY18E 4.6 percent.
While on other hand, Mar’18 CPI reading moderated to 4.3 percent YoY from 4.4 percent in Feb’18, in line with our expectation of 4.3 percent. However, Q4FY18 CPI at 4.7 percent is a tad higher than RBI’s estimate of 4.5 percent YoY.
Taking into consideration the lower food inflation and higher core rural inflation, we believe that the rural distress has not yet abated completely. Rise in core inflation and increasing upward risk to overall CPI is likely to prompt RBI to withdraw its Aug’17 25bps rate cut. Our expectation for FY19 average inflation is at 5.6-6.0 percent.
9:50 am Market Update: The market continued its upside for the seven consecutive session following positive lead from Wall Street and macro data.
The Nifty is inching towards 10,500 levels while the Sensex is up around 100 points.
The broader markets also traded in line with frontliners, with the Nifty Midcap index rising half a percent.
IT stocks corrected a bit after yesterday's rally, as investors turn cautious ahead of Infosys earnings due later in the day.
9:40 am Company Outlook: Titan told CNBC-TV18 that jewellery business will see 2.5x growth in revenue from FY17 level, by FY23 against FY22 earlier.
The company is also targetted achieving uniform customer price revenue of Rs 50,000 crore by FY23 and Rs 40,000 crore for jewellery business by FY23 with 10 percent market share.
9:32 am Market Outlook: Saion Mukherjee of Nomura said current forecasts for their coverage universe translate into an earnings cut of 6.5 percent to FY18 forecast, implying earnings growth of 3 percent (excluding financials), and flat for the overall universe.
December 2018 Nifty target of 11,380 implies a 9 percent potential upside from current levels.
"We are overweight on financials (particularly retail private banks and insurance), autos, oil and gas, infra/construction and healthcare. We are underweight on IT, consumer staples, utilities and cement," he said.
9:26 am China Trade Surplus: China's trade surplus with the United States surged 19.4 percent on-year in the first quarter, data showed today, as trade tensions between the world's two largest economies simmer.
The surplus reached USD 58 billion in January-March, customs bureau spokesman Huang Songping said at a briefing in Beijing. Exports to the US rose 14.8 percent year-on-year, while imports grew 8.9 percent, reports PTI.
9:22 am Acquisition: Reliance Industries said it executed definitive agreements to acquire majority shareholding constituting 72.69 percent (on fully diluted basis) from existing investors of Indiavidual Learning Pvt Ltd (Embibe), a leading AI-based education platform leveraging data analytics to deliver personalized learning outcomes to each student.
Reliance has agreed to invest upto USD 180 million into Embibe, (including consideration to be paid for acquiring majority stake from existing investors) over the next three years.
Embibe will use the capital over the next three years towards deepening its R&D on AI in education, as well as business growth and geographic expansion, catering to students across K-12, higher education, professional skilling, vernacular languages and all curriculum categories across India and internationally.
The founder and CEO of Embibe, Aditi Avasthi will continue in her leadership role and will drive the growth of the business.
9:18 am Sectoral Performance: All sectoral indices are in the green, with the Nifty IT, Metal, Auto, Pharma, Bank and Realty gaining up to 0.7 percent.
9:15 am Market Check: Benchmark indices extended previous day's gains, following positive lead from Wall Street and macro data, as investors await Infosys Q4 earnings due later in the day.
The 30-share BSE Sensex rose 107.15 points to 34,208.28 and the 50-share NSE Nifty gained 27.70 points at 10,486.40.
Vedanta, Hindalco, Dr Reddy's Labs, IOC, Kotak Mahindra Bank, TCS, Infosys, HCL Technologies and Axis Bank gained up to 2 percent.
Sun Pharma, IndusInd Bank, HUL and Tata Motors were under pressure.
Fortis Healthcare, Kwality, Agro Tech, NALCO, HUDCO, BEML, Harrisons Malyalam, Titan Company, TBZ, Madras Fertilizers, RCF, Chambal Fertilizers and Jaiprakash Associates gained up to 8 percent.
9:04 am Technical Recommendations: We spoke to IIFL and here’s what they have to recommend:
Jindal Stainless (Hisar) Limited: BUY| Target 205| Stop Loss 171| Returns 13%
IRB Infrastructure Ltd: BUY| Target 302| Stop Loss 258| Returns 11%
Balkrishna Industries Ltd: BUY| Target 1388| Stop Loss 1235| Returns 8%
9:02 am Stocks in news: Thyssenkrupp, Tata Steel delay signing of joint venture deal
NBCC (India): The company has secured total business of Rs 770 crore for March 2018.
HAL, M&M: Boeing partners with HAL & Mahindra to manufacture F/A-18 Super Hornet in India.
State Bank of India: CBI Questions DGM Rank Officials From SBI branch In Frankfurt & Mauritius
GAIL India: The firm will receive LNG cargo from Gazprom in May
Adani Group: The company has entered into multiple tie-ups to further defence business, Hindu Business Line reported.
IL&FS Transport: The firm is raising USD 1 billion infrastructure fund under its PE business, Mint reported.
Hindustan Unilever: Company appoints Sanjiv Mehta as Chairman
9:00 am Market Check: Benchmark indices were strong in pre-opening following positive lead from Wall Street and good macro data, as investors await Infosys Q4 earnings due later in the day.
The 30-share BSE Sensex rose 125.36 points to 34,226.49 and the 50-share NSE Nifty gained 56.80 points at 10,515.50.
HCL Technologies, Fortis Healthcare, Axis Bank, Maruti Suzuki, RCF, Agro Tech, Kwality, Nelco, JBF Industries, Harrisons Malyalam and TBZ gained up to 10 percent.
Dish TV, Petronet LNG and Jet Airways were under pressure.
Trends on SGX Nifty also indicated a positive opening for the broader index in India, a rise of 29 points or 0.28 percent. Nifty futures were trading around 10,497-level on the Singapore Stock Exchange.
US stocks climbed on Thursday as investors anticipated a strong earnings season and as US President Donald Trump’s suggestion that a military strike on Syria may not be imminent ratcheted down geopolitical worries, Reuters reported.
Asian shares traded higher early on Friday trade, with Japan and South Korea gaining after US markets gained in the last session. MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1 percent while Japan's Nikkei gained 0.8 percent. South Korea's Kospi added 0.48 percent, Reuters reported.