Sensex up 416 points, Nifty ends above 10,700 on F&O expiry; GDP data eyed
31 May 2018
Market Outlook: "Indications are positive and we believe Nifty will test 10,800 shortly. However, we're seeing limited participation thus focus should be on stock selection," Jayant Manglik, President, Religare Broking said.
Global cues, movement in crude oil price and progression of monsoon will dictate the market trend from hereon, he feels.
Fundraising: Multiplex operator PVR is evaluating acquisition opportunities of cinema exhibition chains and plans to raise funds to carry out the transaction through issuance of non convertible debentures (NCDs).
PVR, which acquired DT Cinemas in 2016, has sought shareholders' nod for raising up to Rs 1,000 crore through issuance of NCDs.
For organic growth, the company is adequately funded and intends to finance bulk of its growth from internal accruals and debts.
"However, in addition to organic growth, the company is evaluating opportunities for acquisition of various other national/regional level exhibition chains for which the company may need to raise funds for the same as well as refinancing of the existing debts," PVR said in a BSE filing.
In a postal ballot notice to shareholders, PVR sought shareholders' approval for authorising the board to raise up to R 1,000 crore via NCDs from domestic as well as overseas market, reports PTI.
Market Closing: Benchmark indices closed sharply higher on the day of expiry of May futures & options contracts. Positive global cues on easing Italy political concerns and the rally in HDFC Bank lifted market sentiment.
The 30-share BSE Sensex rose 416.27 points or 1.19 percent to 35,322.38 and the 50-share NSE Nifty gained 121.80 points or 1.15 percent at 10,736.20 while Nifty Midcap index was down 0.4 percent.
About 1,643 shares declined against 994 advancing shares on the BSE.
Atlanta, Manpasand Beverages, Leel Electricals, Dilip Buildcon, Bombay Dyeing, Suzlon Energy, Hathway Cable, Hindustan Copper, Vakrangee and PC Jeweller were down 5-20 percent.
Avenue Supermarts, NIIT Technologies, KPIT Technologies, Capital First, M&M Financial and Torrent Power gained up to 3 percent.
Order Win: NCC has bagged the package three of Mumbai-Nagpur expressway contract whlie Dilip Buildcon has secured order worth Rs 1,750 crore in Maharashtra.
Sadbhav Engineering bags order: The company has been declared the successful bidder in respect of the bid invited by Maharashtra State Road Development Corporation (a Government of Maharashtra Undertaking) for the project worth of Rs 1,655 crore on EPC mode for Package - 5 from Village Kinhiraja to Village Kenwad in District Washim in the state of Maharashtra.
Market update: The benchmark indices extends the gains in the final hour of trading with Sensex trading higher by 400 points at 35,287 and Nifty gained over 100 points at 10,730.
HDFC Bank, Adani Ports, IndusInd Bank, M&M, Kotak Mahindra Bank, Adani Ports and Tech Mahindra top gainers on the indices.
Buzzing: Shares of Archidply Industries touched 52-week low of Rs 69, slipping 16 percent as company reported poor numbers in the quarter ended March 2018.
The company has reported net loss of Rs 3.16 crore against profit of Rs 1.64 crore in a same quarter last fiscal.
Revenue from operation for the March quarter was down 4 percent at Rs 80.72 crore against Rs 84.72 crore.
The company board has approved scheme of arrangement between the company and Archidply Decor.
Market Update: The market traded near day's high with the Sensex rising 200 points, driven by HDFC Bank, HDFC, Infosys, and oil stocks. Easing of Italy political concerns also lifted market sentiment.
HDFC Bank rose 3 percent ahead of opening of FII trading window on June 1. Global brokerage firm Macquarie sees FII buying worth $1bn
TCS dropped a percent after the stock adjusted for bonus share issue in the proportion of one share for every share held.
The market breadth remained in favour of advances as about two shares gained for every share falling on the NSE.
Crude Update: Crude oil prices declined, weighed down by a surprise rise in US crude inventories and by expectations that OPEC and other producers could increase output at a meeting in June.
Brent crude futures were at $77.19 a barrel, down 0.40 percent, after settling the last session up 2.8 percent.
US West Texas Intermediate crude was down 0.57 percent at $67.82 a barrel. In the previous session, it settled up 2.2 percent, at $68.21 per barrel, reports CNBC.
Europe Update: European stocks traded higher, as elevated concerns over Italy's deepening political crisis showed signs of abating.
Britain's FTSE and France's CAC were trading 0.3 percent each.
Earnings: Infibeam Incorporation's March quarter profit grew by 53 percent to Rs 20.8 crore while revenue from operations jumped 98 percent to Rs 239.5 crore.
EBITDA (earnings before interest, tax, depreciation and amortisation) shot up 91 percent to Rs 45.2 crore compared to year-ago.
Buzzing: Shares of Pricol slipped 4.6 percent intraday as company's joint venture between the company and Zorg Industries, Hong Kong had been called off due to project non viability.
The company's profit after tax (PAT) in Q4FY18 was up at Rs 32.65 crore against Rs 0.93 crore for the same quarter last year.
The board recommended a dividend of Re 1 per share (100%) to the shareholders of the company for the year March 31, 2018.
AIF Launch: IIFL Asset Management announced the launch of an alternative investment fund (AIF) that will focus on backing professional entrepreneurship.
The company is aiming to raise around Rs 1,200-1,500 crore through the new fund- IIFL India Private Equity Fund - a close-ended Sebi-registered Category II AIF.
The fund is designed to back professionals with a strong execution track record and provide capital to such professional entrepreneurs both at seed and growth stage, IIFL AMC said in a statement, reports PTI.
Market Update: Benchmark indices extended gains in afternoon, backed by HDFC Group, oil stocks and Infosys.
Positive global cues on easing of Italy political concerns also lifted market sentiment.
The 30-share BSE Sensex rallied 204.64 points to 35,110.75 and the 50-share NSE Nifty gained 62.40 points at 10,676.80 but the market breadth remained in favour of declines.
About 1,519 shares declined against 936 advancing shares on the BSE.
Nifty Bank, Financial Services and IT indices traded at near day's high, rising nearly a percent.
Buzzing: Shares of Atlanta touched 52-week low of Rs 51.10, locking at 20 percent lower circuit on the back of resignation of statutory auditors of the company.
There were pending sell orders of 110,352 shares, with no buyers available.
Price Waterhouse Chartered Accountants LLP, statutory auditors of the company, vide their letter dated May 29, 2018 have resigned from their position as the Statutory Auditors of the Company for F.Y.-2017-18 with immediate effect, company said in release.
The company's scheduled board and other committee meeting on May 29 for approval of audited results has been postponed.
Drug Launch: Pharma major Lupin has launched Solosec (secnidazole) 2g oral granules in the US market, have received an approval from the United States Food and Drug Administration earlier.
Last year, the company announced that its US subsidiary, Lupin Inc, acquired Symbiomix Therapeutics LLC, a privately held company focussed on bringing innovative therapies to market of gynecologic infections that can have serious health consequences.
Solosec 2g oral granules is a 5-nitroimidazole antimicrobial agent indicated for the treatment of bacterial vaginosis (BV) in adult women.
Collaboration Agreement: NLC India and NMDC signed a Memorandum of Understanding (MoU) with Environmental Clean Technologies Limited for the largest-ever joint R&D collaboration between Australia and India.
The project aims to jointly setup an integrated Coldry-Matmor pilot plant in India which will develop a low emission Iron and Steel process. The agreement sees the commencement of the next stage of development for ECT’s two proprietary technologies, Matmor which is the world’s first and only lignite (brown coal)-based primary iron making technology and Coldry, a unique, zero-emission, lignite upgrading technology capable of producing a solid fuel for use in power generation and Industrial thermal applications Coldry solid fuel is significantly less CO2 intensive than lignite, the company said.
Market Update: The market continued to hold morning gains ahead of expiry of May derivative contracts. Positive global cues on easing of Italy political tensions boosted investors' sentiment.
The 30-share BSE Sensex rose 154.05 points to 35,060.16 and the 50-share NSE Nifty gained 45.10 points at 10,659.50 while the Nifty Midcap index underperformed frontliners on weak market breadth.
About 1,400 shares declined against 990 shares rising on the BSE.
Nifty Bank extended gains, rising more than 150 points while HDFC Group, oil stocks, and Infosys continued to support the market.
Buzzing: Shares of Manpasand Beverages plunged 10 percent to hit their lower circuit limit for the fourth consecutive session on account of the resignation of its auditing firm with effect from May 26, 2018.
The stock has been on a downtrend for the seventh consecutive sessions and has cracked as much as 49.87 per cent since May 22.
Auditing major Deloitte Haskins & Sells resigned as statutory auditors of Manpasand Beverages, as the fruit juice maker failed to provide them with "significant information" on the financial results for the year ended March 31, 2018.
The board meeting of Manpasand Beverages, to consider and approve the financial results for the year ended March 31, 2018, was scheduled to be held on May 30. However, the said meeting now stands cancelled.
L&T Shipbuilding's auditors raise 'going concern' doubts: Multiple years of losses have substantially eroded the networth of engineering major L&T's shipbuilding arm and led its independent auditors to cast 'significant doubts' over whether the company can continue as a "going concern".
L&T, the parent, however said its investment in L&T Shipbuilding is 'strategic' and affirmed its financial support.
In accounting parlance, the 'going concern assumption' typically means that the company will remain in business for the foreseeable future without being forced to halt operations and liquidate its assets.
he company's current liabilities exceeds its current assets as at the balance sheet date. These conditions indicate the existence of material uncertainty that may cast significant doubt about the company's ability to continue as a going concern, M/S Sharp & Tannan, the auditors, said in the FY17 balance sheet, reports PTI.
Rupee Update: The rupee pared its initial gains to trade lower by 3 paise at 67.46 against the US dollar following sudden bouts of dollar demand from importers and banks, despite higher local equities.
The Indian unit hovered between 67.32 and 67.59 during morning deals.
Caution crept as traders awaiting for gross domestic product (GDP) and fiscal deficit data due later in the day.
Yesterday, Moody's predicted fall in India's 2018 GDP growth outlook to 7.3 per cent from 7.5 per cent, citing higher oil prices and tighter financial conditions.
Market update: The benchmark indices extent their gain ahead of May F&O expiry with Sensex trading above 35,000 with a gain of 120 points and Nifty hovering around 10,650.
ONGC, HDFC Bank, Coal India, M&M, Infosys are the top gainers on the Sensex, while losers are Sun Pharma, ICICI Bank, Hero Motocorp, Dr Reddy’s Labs and Tata Motors.
Meanwhile, metal, pharma and PSU banking index trading 0.5 percent down.
NLC India inks pact with NMDC: NLC India and NMDC signed a memorandum of understanding (MoU) with Environmental Clean Technologies for the largest - ever joint R&D collaboration between Australia and India.
The project aims to jointly setup an integrated Coldry - Matmor pilot plant in India which will develop a low emission Iron and Steel process.
At 11:21 hrs NLC India was quoting at Rs 84.15, down Rs 1.05, or 1.23 percent.
Buzzing Stock: Shares of Jamna Auto Industries added nearly 3 percent as company signed technology transfer agreement with Tinsley Bridge.
The company has entered into a technology transfer and technical assistance agreement with Tinsley Bridge (TBL), UK for transfer of TBL's extralite spring technology and special steel technology to the company.
The Tinsley Bridge is located in Sheffield, UK and is highly accredited engineering and manufacturing group in the automotive, nuclear, rail, defence, renewables, machine knives and energy sectors.
Dilip Buildcon in focus: Dilip Buildcon share price extended losses, falling another 12 percent on top of 13 percent correction in previous session on rumours of auditors resigned.
There are unconfirmed rumors in the market relating to the resignation of its statutory auditors of the company.
But the company in its clarification note to exchanges said that there was no truth in the matter and the rumors are baseless.
"We hereby confirm that we are continuing as the Joint Auditors of Dilip Buildcon for the year 2018-19 and thereafter in accordance with the Resolution passed by the A G M in last year," Chartered Accountants said.
The company also clarified that it has already declared audited financial results for the financial year 2017-18 on May 30, 2018 and M/s Mukund M. Chitale & Co., Chartered Accountants, Mumbai and M/s MSG & Associates, Chartered Accountant, Bhopal, Joint Statutory Auditors of the Company have issued the Auditors' Report for the Financial year ended March 31, 2018 with unqualified opinion in respect of the Standalone and Consolidated Financial Results.
Earnings Reaction: Shares of Coal India gained 5 percent intraday as brokerages Jefferies and CLSA has raised the target price of the company.
Jefferies has maintained buy rating on Coal India and raised target price to Rs 363 from Rs 350 per share.
According to Jefferies the strong 40 FSA ASP should sustain and low power plant coal stocks should support steady offtake growth.
The research house expect EPS to grow at 20% CAGR over FY18-20.
According to CLSA Coal India delivered strong 4Q EBITDA. It has increased target price from Rs 335 to Rs 360 per share and also raised FY19-20 EPS at 13 percent.
The numbers led by strong FSA as well as e-auction realisations, the earnings growth outlook has improved significantly.
It sees 19 percent earnings CAGR over the next two years, while 11x FY19CL PE and 7% dividend yield are attractive, it added.
CITI has upgraded the Coal India to buy with a target of Rs 350 per share.
The research house hiked EPS by 9% for FY19-20 on higher volumes and pricing. It thinks e-auction volumes could fall YoY as supplies to the power sector rise, it added.
HDFC Bank in focus: Shares of HDFC Bank gained almost four percent during the morning trade to hit a record high as investors made big bets ahead of the FII buying window being opened on June 1.
The SEBI decided to open the window for institutional trading series (6 lakh series) just for a day on June 1, 2018. In fact, the regulator has decided to scrap the mechanism from July 1 onwards. This has led to an increase in demand for the stock.
This is popularly known as the FII Trading Window – when stocks get into FII restriction, there is a separate window on which only FIIs trade so that FIIs still have the option of buying the stock. Since the buyer will be purchasing from another FII, it ensures that there is no change in FII shareholding. For stocks in demand this usually leads to an FII premium.
Buzzing: Country's largest IT services exporter Tata Consultancy Services share price fell nearly 2 percent after the stock adjusted for bonus share issue.
The board of directors of the company, on April 19, had recommended bonus issue of equity shares in the ratio of one equity share of Re 1 each for every one equity share of Re 1 each held by the shareholders of the company as on the record date.
TCS has fixed record date as June 2 for determining the entitlement of members to receive bonus shares.
Earnings: GMR Infrastructure today reported narrowing of its standalone net loss to Rs 819.53 crore for the quarter ended March 2018.
The company had posted a net loss of Rs 2,478.78 crore in the corresponding period a year ago.
Total revenue in the quarter under review stood at Rs 321.29 crore as compared to Rs 272.47 crore in the year-ago period, GMR Infrastructure said in a regulatory filing.
During the quarter, the company reported provision for diminution in value of investments and advances in subsidiaries of Rs 662.50 crore as against a provision of Rs 2,357.68 crore made in the last quarter of 2016-17.
GMR Group has interests in airport, energy, transportation and urban infrastructure, reports PTI.
Deal Called Off: Orient Cement share price rallied 13 percent after CK Birla Group firm Orient Cement has terminated the agreement to acquire two entities, Bhilai Jaypee Cement and Nigrie Cement Grinding Unit, from Jaypee group firms for a total consideration of Rs 1,946 crore.
On May 31 last year, Orient Cement had signed a share purchase agreement (SPA) with Jaiprakash Associates Ltd (JAL), for acquisition of 74 per cent equity shares of Bhilai Jaypee Cement Ltd from JAL.
A business transfer agreement (BTA) was also signed between Orient Cement, Jaiprakash Power Ventures Ltd (JPVL) and JAL, for acquisition of Nigrie Cement Grinding Unit, as going concern from JPVL. (With inputs from PTI)
Buzzing: Shares of Punj Lloyd rose nearly 18 percent intraday as company turned profitable in the quarter ended March 2018.
The company has posted profit of Rs 944 crore in Q4FY18 against loss of Rs 184 crore in Q3FY18. The company had posted loss of Rs 181 crore in March 2017.
Revenue for the quarter ended March 2018 rose 19 percent at Rs 1060 crore against Rs 890 crore in a year ago period.
The board has approved a proposal to restructure the outstanding credit facilities by way of conversion of such credit facilities into securities (non-
convertible/redeemable/convertible) on preferential basis, issuance of securities (non-convertible/redeemable/convertible) to promoters/investors on preferential basis.
Market Update: The market is trading higher ahead of expiry of May derivative contracts, tracking positive move in global peers after easing of Italy political concerns.
The 30-share BSE Sensex rallied 94.98 points at 35,001.09 and the 50-share NSE Nifty rose 22.60 points to 10,637. About 1,013 shares advanced against 740 declining shares on the BSE.
HDFC Bank, HDFC, Reliance Industries and Infosys support the market while ICICI Bank, SBI, Axis Bank, TCS are under pressure.
Fuel Price Update: Petrol price was today cut by 7 paise a litre and diesel by 5 paise - the second reduction in as many days on the back of softening international oil rates.
Petrol in Delhi now costs Rs 78.35 a litre, down from Rs 78.42, according to a price notification issued by state-owned oil firms.
Diesel rates have been cut to Rs 69.25 per litre from Rs 69.30.
This is the second reduction in rates coming after a 16 day relentless price hike that followed lifting of a nearly three-week hiatus on price revision just before Karnataka went to polls. Petrol and diesel prices were yesterday cut by 1 paisa a litre each. That reduction followed rates touching an all-time high of Rs 78.43 per litre for petrol and Rs 69.31 for diesel in Delhi on Tuesday, reports PTI.
Buzzing: Sadbhav Engineering share price gained a percent after March quarter earnings.
SEL's Q4FY18 revenue grew 7 percent YoY to Rs 1,100 crore, while EBITDA margin expanded around 60bps to 11.2 percent. Lower other income (down 82 percent YoY) restricted PAT to Rs 69.9 crore (up around 2 percent YoY).
The company’s BOT portfolio witnessed healthy around 10 percent YoY growth in toll collection. Robust order inflows which have boosted order book to around Rs 13,200 crore (book-to-bill at 3.7x) and improving margin trajectory are key positives.
With a bid pipeline of around Rs 80,000 crore, Edelweiss expects SEL to win substantial orders going ahead, which will lend impetus to execution growth. The research house has maintained Buy rating on the stock with SoTP-based target price of Rs 530.
Rupee Update: The rupee strengthened by 6 paise to 67.37 against the dollar at the Interbank Foreign Exchange ahead of GDP data scheduled to be released later today.
Forex dealers said besides selling of the American currency by exporters and banks, weakness in the dollar against other currencies supported the rupee.
Furthermore, expectations of robust GDP growth and a higher opening in the domestic equity market, influenced the rupee uptrend, they added.
Yesterday, the rupee had ended with a solid 43 paise gain against the American currency at 67.43 after traders unwound bullish dollar positions.
Market Opening: Benchmark indices started off the expiry day on a strong note, tracking positive trend in global peers on easing of Italy political concerns.
The 30-share BSE Sensex rallied 141.30 points to 35047.41 and the 50-share NSE Nifty gained 42 points at 10,656.40.
Jubilant Foodworks, Punj Lloyd, Apollo Hospitals, Deepak Fertilisers, Satin Creditcare, KNR Construction, Sadbhav Engineering and Saksoft surged up to 15 percent.
Manpasand Beverages, Vakrangee and V-Guard Industries fell up to 10 percent.
Asia Update: Asian stocks traded higher on easing of Italian political concerns.
Japan's Nikkei 225 rose 0.43 percent and Australia's S&P/ASX 200 advanced 0.41 percent.
In South Korea, the Kospi advanced 0.44 percent while China's Shanghai Composite rose 1 percent and Hong Kong's Hang Seng gained 0.8 percent.
Market Pre-opening: Benchmark indices are trading higher in pre-opening, following the rally in global stocks.
The 30-share BSE Sensex rose 100.86 points to 35,006.97 and the 50-share NSE Nifty gained 32.10 points at 10,646.50.
Punj Lloyd gained 20 percent and Reliance Communications rallied 10 percent. Bhushan Steel rose 10 percent.
CRISIL rallied 4 percent.
Market Cues: The Nifty50 is expected to open higher on Thursday following positive trend seen in other Asian markets. The index closed 18.95 points lower at 10,614 on Wednesday.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 25 points or 0.24 percent. Nifty futures were trading around 10,656-level on the Singaporean Exchange.
US stocks ended higher on Wednesday, and the S&P 500 and Dow registered their biggest daily percentage gains since May 4, on signs of easing political turmoil in Italy and as a surge in oil prices boosted energy stocks, said a Reuters report.
Asian stocks rebounded from a two-month trough on Thursday. MSCI’s broadest index of Asia-Pacific shares outside Japan tacked on 0.3 percent having slumped to its weakest since the start of April on Wednesday. South Korea’s KOSPI added 0.6 percent and Japan’s Nikkei advanced 0.5 percent.
Oil prices dropped slightly on Thursday, weighed down by a surprise rise in U.S. crude inventories and by expectations that OPEC and other producers could increase output at a meeting in June, added the Reuters report. Brent crude was trading around $77.30 per barrel.