Sensex recovers in late trade to end flat; TCS, Infosys lead

CNBC

Nomura on GDP: Growth in the current fiscal year will be faster in the first half and will likely face pressure in the second half to end the year at 7.5 percent, a Japanese brokerage said today.

The rate hike by RBI and the the oil prices raise concerns over the sustainability of what was termed as a "cyclical, broad-based recovery", Nomura's chief India
economist Sonal Varma said.
"We feel growth will be front-ended in FY19. The first quarter can see growth of 7.5-8 percent, but it will likely dip in the second half. We should have an overall growth of 7.5 percent for FY19," she told reporters here.
Market Closing: Benchmark indices recovered in late trade to close flat with the Nifty holding 10,800 levels, backed by technology, pharma stocks and Reliance Industries.
The 30-share BSE Sensex rose 22.32 points to 35,622.14 and the 50-share NSE Nifty gained 9.70 points at 10,817.70.
Infosys was up 4 percent and TCS gained 3 percent.
Sun Pharma, Cipla, Bajaj Finance, Lupin, UPL and HCL Technologies rallied 1-4 percent.
ICICI Bank, Hindalco Industries, SBI and Yes Bank were under pressure.
Nifty Midcap index fell 121 points.
Karnataka Bank, Allahabad Bank, Andhra Bank, Union Bank, UCO Bank, SBI Life, HDFC Standard Life, Dish TV, Edelweiss, Petronet LNG, Tata Global, Ashok Leyland, L&T Finance, Holdings, Hexaware, Mphasis and ICICI Prudential fell up to 4 percent.
Strides Shasun, Mishra Dhatu, Jayshree Tea, Dhampur Sugar, Jubilant Foodworks, Granules India and Mcleod Russel gained up to 6 percent.   
Market check: IT stocks help the market to turn positive in the afternoon trade post IT major TCS announced its Rs 16,000 crore buyback plan.
The Sensex up 39.92 points at 35,639.74, and the Nifty up 16.10 points at 10824.10. About 1065 shares have advanced, 1489 shares declined, and 153 shares are unchanged.
Nifty IT and Pharma indices are trading with 2 percent gain, while on the other side Nifty PSU banks shed 2 percent.  
TCS approves buyback: The board of directors of Tata Consultancy Services (TCS) has approved a proposal to buyback up to 7,61,90,476 equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore being 1.99% of the total paid up equity share capital, at Rs 2,100 per equity share.
At 14:56 hrs Tata Consultancy Services was quoting at Rs 1,827.90, up Rs 35.65, or 1.99 percent on the BSE.
Market Update: The market is off its day's low in last hour of trade, backed by technology and pharma stocks, and Reliance Industries.
The 30-share BSE Sensex fell 45.24 points to 35,554.58 and the 50-share NSE Nifty declined 12.60 points to 10,795.40. 
The Nifty Bank remained under pressure, falling 150 points while the IT index gained 1 percent and Pharma up 2 percent as the rupee continued to trade around 68 against the US dollar.
Index heavyweight Reliance Industries hit fresh record high, rising nearly a percent.
Nifty Midcap index continued to underperform frontliners, falling more than half a percent.
JSPL in focus: JSPL said Union Ministers Chaudhary Birender Singh and Dharmendra Pradhan will tomorrow dedicate to the nation its 3 MTPA basic oxygen furnace (BOF) at Angul steel plant in Odisha.
Besides, the ministers will inaugurate a 2 MTPA DRI plant, a blast furnace - claimed as India's largest - and coal gasification plant for steelmaking based on indigenous coal, JSPL said in a statement.
The company's plant at Angul is the largest steel manufacturing plant in Odisha, spread across 3,500 acres, reports PTI.
It has 1.5 MTPA rebar mill, 1.2 MTPA plate mill, 2.3 MTPA billet caster, 1.7 MTPA slab caster and 2.75 MTPA new electric oxygen furnace, the statement said.
It also has 810 MW capacity power plant for captive use, it added.    
Order Win: Shares of BL Kashyap & Sons gained nearly 4 percent intraday as company won orders worth Rs 694 crore from domestic unrelated clients.
The orders include, development /re-development of Gomti Nagar Lucknow Railway Station on EPC basis worth Rs 360 crore and order of Rs 182 crore to do composite civil structure for building (SEZ) at Madhapur, Hyderabad.
The orders include, block civil work (SEZ) at Hinjewadi Pune worth Rs 35.50 crore and construction of tower 2 package-1 at Hyderabad worth Rs 34.51 crore.
Above stated projects are expected to be completed within 24 months from the date of award.
Buzzing : Valiant Communications rallied more than 6 percent after the company has received the orders to supply and commissioning of its communication solutions from the domestic entities, namely, Transmission Corporation of Andhra Pradesh (APTRANSCO), Kerala State Electricity Board (KSEB) and Tejas Networks Limited. 
The total value of the orders is Rs 12.56 crore, it said, adding the orders are to be executed in the current financial year 2018-19. 
Market Update: The market traded lower in afternoon with the Nifty struggling below 10,800 levels, weighed down by banking & financials, FMCG and oil retailers.
The 30-share BSE Sensex slipped 123.37 points to 35,476.45 and the 50-share NSE Nifty declined 33.50 points to 10,774.50 while the Nifty Midcap index dropped nearly 1 percent on weak market breadth. About three shares declined for every two shares rising on the BSE.
Reliance Industries continued to support the market, hitting a fresh record high while technology and pharma stocks outperformed due to sharp fall in the rupee.
The rupee breached 68 against the US dollar following strong demand for the greenback amid sustained foreign capital outflows.  
Trade Data: India's trade deficit widened to four month high of $14.62 billion in May as imports surged nearly 15 percent, the government said today.
Commerce Minister Suresh Prabhu said exports in May rose by 28.18 percent to $28.86 billion while imports were up 14.85 per cent to $43.48 billion. Trade deficit widened to $14.62 billion from $13.84 billion in May 2017. Oil imports were up 49.46 percent to $11.5 billion on back of surge in international crude prices, reports PTI.  
Market Update: Benchmark indices extended losses in afternoon with the Sensex falling 162.52 points to 35,437.30, dragged by banking & financials, FMCG and oil retailers.
The 50-share NSE Nifty slipped 45.90 points to 10,762.10 while the Nifty Midcap index declined 0.8 percent.
ITC, IOC, L&T, ICICI Bank, Axis Bank, SBI, Yes Bank, Tata Motors, Vedanta, Bajaj Finserv and ONGC dropped 1-2 percent.
Reliance Industries, Infosys, Bajaj Finance and TCS gained up to 0.9 percent while Sun Pharma, Dr Reddy's Labs, Cipla and Lupin rallied 1-4 percent. 
SBI to stop handling Iran oil payments: India's imports of Iranian oil may be hit from end-August after the State Bank of India (SBI) informed refiners it will not handle payments for crude from Tehran from November onwards, the finance chief of Indian Oil Corp (IOC) said on Friday.
The move by the state-controlled bank, India's biggest, comes after US President Donald Trump pulled out of an international nuclear deal with Iran last month, pledging to reimpose tough sanctions within 180 days.
"(Oil) loading will be affected from end-August under the current mechanism unless a new payment route is established," IOC's A.K. Sharma told Reuters in a telephone interview. 
Recommendation: Investec has reiterated its Buy call on RBL Bank with increased target price at Rs 660 from Rs 630 per share as it raised profit estimates by 6-10 percent.
The bank is rapidly scaling multiple partnerships, most notably with Bajaj Finance, said the research house which believes the inflection to reported profitability is only 4-6 quarters away.
Investec feels the visibility on return on assets (RoA) improvement is high on a 2-year timeframe. "We build in 10 bps RoA improvement every year leading to 40 percent profit after tax CAGR."
Market Update: The market continued to be rangebound in afternoon as investors monitor trade war developments ahead of likely announcement of US tariffs on some Chinese goods.
Technology and pharma stocks outperformed all other sectoral indices as the rupee breached 68 against the US dollar.
The 30-share BSE Sensex fell 37.58 points to 35,562.24 and the 50-share NSE Nifty declined 6.70 points to 10,801.30.   
Recommendation: Housing Development Finance Corporation (HDFC) share price gained 1.6 percent intraday after global brokerage firm CLSA feels earnings growth of the company will accelerate & the stock is available at an attractive valuation.
The research house has maintained Buy call on the stock with a target price at Rs 2,200 per share, saying the housing finance company is among top picks in the sector.
"Core operating profit is estimated to see a 20 percent CAGR over FY18-21. Sustainable core return on equity of 18-20 percent will aid in its rerating," CLSA said.
Amey Chalke, Analyst at HDFC Securities maintained Neutral rating on Dr Reddy's Labs that received generic Suboxone approval from USFA.
It is first generic Suboxone approval for the US market. Along with Dr Reddy, Mylan has also received approval from the US FDA.
Suboxone is used for the treatment of opioid dependence. It is $ 1.8 billion market as per the latest IMS data.
Chalke believes at manufacture level, size could be much smaller. Still it is a substantial opportunity for Dr Reddy which was struggling to get quality approvals for last three years with key plant under warning letter, he said.
"Along with Mylan and Dr Reddy, we are also expecting approvals for Teva, Endo and Alvogen in the near term. Moreover, it is going to be at risk launch for Dr Reddy as litigation yet to be settled. Essentially it means if litigation goes against Dr Reddy they have to return the profits generated from this product to Innovator."
He believes this product could add Rs 14 EPS for Dr Reddy. "These are non-core earnings and we are valuing them separately. Maintain Neutral with target price of Rs 2,350."
Recommendation: Greed & Fear has recommended investors to buy into the Indian property sector as affordability remains at the best level in 15 years and developers' pre-sales are rising, Chris Wood of CLSA said.
In HDFC Bank & Indiabulls Ventures, investments will be increased by 1 percentage point each, he said, adding that investments will be paid for by shaving IndusInd Bank & SBI Life.  
?Buzzing: Shares of UPL gained around 3 percent after Deutsche Bank reiterated its buy call on the stock with a target of Rs 890 apiece.
The global investment bank is betting on cross currency movements being favourable for the company so far.
It also expects constant currency revenue growth to meet the upper end of guidance. Along with it, the margin could expand, driven by backward integration.
Deutsche Bank also expects 18 percent EPS CAGR in FY18-20.
Rupee Update: The Indian rupee breached 68 against the US dollar for the first time since May 25, 2018.
It slipped 38 paise to hit a three-week low of 68.01 against the US dollar following strong demand for the greenback amid sustained foreign capital outflows.
Besides, the dollar strengthening against other currencies overseas as the European Central Bank (ECB) pledged to leave interest rates unchanged until mid-2019, weighed on the rupee, traders said.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,372.84 crore yesterday, as per provisional data issued by the stock exchanges.  
Crude Update: Oil prices were little changed, as investors eyed a key OPEC meeting in Vienna as Saudi Arabia and Russia, architects of a producer deal to cut output, indicated they want production to rise.
Brent crude was down 0.08 percent at $75.88 a barrel, after settling down 80 cents the session before.
US West Texas Intermediate crude was up 0.03 percent, at $66.91 a barrel, having settled up 25 cents. It touched a two-week high of $67.16 on Thursday, reports CNBC.
Downgrade: Fitch Ratings has downgraded the Viability Rating of Bank of Baroda from bb+ to bb; however, it has affirmed the (1) short term issuer default rating of BOB at F3, long term issuer default rating at BBB- (3) support rating at 2 and (4) support rating floor at BBB-.  
Tariffs on Chinese Goods: US President Donald Trump has approved tariffs worth USD 50 billion on import of goods from China.
A formal announcement in this regard is expected to be made by the US Trade Representatives today with a notification in the Federal Register in the coming weeks. The move is likely to attract retaliatory action by China.
Trump's approval in this regard followed a 90-minute meeting he had with Commerce Secretary Wilbur Ross, Treasury Secretary Steven Mnuchin and US Trade Representatives Robert Lighthizer yesterday. The meeting also included representatives of the National Security Council, reports PTI.  
EIR from USFDA: Alembic Pharma informed the exchange that the company has received Establishment Inspection Report (EIR) from United States Food and Drug Administration (US FDA) for the inspection carried out by them at formulation facility at Panelav during the period from March 12 to 20, 2018.   
Buzzing: ?Shares of Transcorp International rallied up to 5 percent as investors could be betting on the firm’s bonus issue plans.
The company’s Board will be meeting June 21, 2018 for the purpose of allotment of 6356549 Equity shares of the company as bonus shares at par in proportion of 1 (one) such new Equity share for every 4 (four) existing equity share, the company said in a filing to the exchanges.
The record date for the stock would be June 20, 2018.
The stock has gained over 13 percent in the past one month, while its three-day gain stood at 4 percent.
Sale of NPAs: PSU lender Bank of Baroda has sought the bid to sell 30 NPAs (non-performing assets) worth Rs 7,407 crore, reports CNBC-TV18 quoting Cogencis.
This include Rolta India's Rs 287 crore loan and Bhushan Power's Rs 1,550 crore loan.
Rupee Update: The rupee plunged by 32 paise to hit a three-week low of 67.95 against the US dollar following strong demand for the greenback amid sustained foreign capital outflows.
Besides, the dollar strengthening against other currencies overseas as the European Central Bank (ECB) pledged to leave interest rates unchanged until mid-2019, weighed on the rupee, traders said.
Foreign portfolio investors (FPIs) sold shares worth Rs 1,372.84 crore yesterday, as per provisional data issued by the stock exchanges.
Yesterday, the rupee had gained 3 paise to end at 67.62 against the US currency, cutting short its two-day decline.
Market Update: The market is rangebound. Investors monitor the trade developments ahead of likely announcement of US tariffs on some Chinese goods.
The 30-share BSE Sensex fell 15.47 points to 35,584.35 and the 50-share NSE Nifty declined 1.70 points to 10,806.30. About 954 shares advanced against 687 declining shares on the BSE.
Buzzing: Prestige Estates share price gained as much as 5 percent in morning after global investment firm CLSA maintained Buy call to the stock, with a target price of Rs 395 per share.
The research house sees large scale-up potential in residential & office business and likes company's platform-led strategy to growth.
The company raised its risk appetite & investment capability at the right time, CLSA said, adding the stock is a preferred value pick in the property sector.
ICICI Bank clarifies on NCLT case against Punj Lloyd: ICICI Bank has filed an insolvency petition under the Insolvency and Bankruptcy Code, 2016 against Punj Lloyd before the NCLT Principal Bench, New Delhi on May 28.
On June 14, 2018, the NCLT issued notice to Punj Lloyd to file their reply within 2 weeks. The petition has been filed in the ordinary course of business against a defaulting borrower and has been determined to not be material to ICICI Bank and does not warrant disclosure to the stock exchanges.
USFDA Approval: Dr Reddy's Laboratories has received final approval from the US Food and Drug Administration (USFDA) and is launching Buprenorphine and Naloxone Sublingual Film, 2 mg/0.5 mg, 4 mg/1 mg, 8 mg/2 mg, and 12 mg/3 mg in the United States market.
It is a therapeutic equivalent generic version of Suboxone (buprenorphine and naloxone) sublingual film.
The product is being launched with an approved Risk Evaluation and Mitigation Strategy (REMS) Program.
Buprenorphine and naloxone are used to treat adults with opioid dependence/addiction. Buprenorphine helps suppress withdrawal symptoms caused by discontinuation of opioid drugs, and naloxone reverses and blocks the effect of opioids.
This combination of medications is used as part of a complete treatment program including prescription monitoring, counseling, and psychosocial support.
Market Opening: Benchmark indices opened on a flat note amid mixed trade in Asia ahead of likely US tariffs on select Chinese goods.
The Sensex fell 12.28 points to 35,587.54 and the Nifty slipped 1.80 points to 10,806.20.
L&T, Reliance Industries, HDFC Bank, BPCL and IOC are under pressure.
Dr Reddy's Labs, TCS, Lupin, ICICI Bank, Titan Company and Maruti Suzuki gained up to 2 percent.
Nifty Midcap index is flat.
Tata Global, HDFC Standard Life, Venkys, Kesoram Industries, PVR, HOEC, Prestige Estates and LG Balakrishna gained up to 5 percent.
SBI Life, Vakrangee, Gitanjali Gems, Avenue Supermarts and Gati fell up to 5 percent.
Market Pre-Opening: The Sensex gained 56.44 points at 35,656.26 and the Nifty rose 0.70 points to 10,808.70.
Pre-Market: The Nifty50 is likely to open lower on Friday following muted trend seen in other Asian markets. The Nifty closed 48 points lower at 10,808.
Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 19.5 points or 0.18 percent. Nifty futures were trading around 10,795-level on the Singaporean Exchange.
US stocks ended a choppy session lower on Wednesday after the US Federal Reserve raised interest rates as expected and projected a slightly faster pace of rate hikes this year, said a Reuters report.
The European Central Bank said on Thursday it will end its unprecedented bond purchase scheme by the close of the year, taking its biggest step in dismantling crisis-era stimulus a decade after the start of the euro zone's economic downturn, it said.
Asian shares wobbled on Friday as investors braced for US tariffs against China, while the euro flirted with two-week lows after a cautious European Central Bank indicated it would not raise interest rates for some time.
Market Pre-Opening: Benchmark indices are higher in pre-opening trade. Asian markets are mixed ahead of likely US tariffs on some Chinese goods.
The Sensex Sensex rose 122.33 points to 35,722.15 and the Nifty gained 15.40 points at 10,823.40.
Market Outlook: Abhinav Gupta , President, Capital Markets, Share India Securities said global weakness led a minor correction on the D street today even as some buying was evident at lower levels.
Nifty on Thursday ended at 10,808 losing 48 points. After 6 days of continuous gains, Nifty fell today with a falling gap action at 10,833-10,842 which hints at some pressure of profit booking building up.
Nifty could show a range bound movement with slight negative bias as consolidation catches up. Nifty may find it difficult to cross 10,842 today. On the lower side, violation of 10,773 could push index towards 10,730 as well.