Sensex up 257 points, Nifty ends above 10,800 but market breadth in favour of bears
22 June 2018
Market Update: European markets were trading higher amid uncertainty over whether OPEC would manage to increase crude output at a meeting in Vienna later in the day. Britain's FTSE and France's CAC were up 0.7 percent at the time of writing this article.
Asian markets ended mixed following negative close on Wall Street. Investors remained concerns about the trade dispute between the US and China.
Brent crude and US oil futures traded higher by over a percent ahead of OPEC decision.
Market Closing: Benchmark indices closed sharply higher led by recovery in the last hour of trade, backed by banking & financial stocks.
The Sensex gained 257.21 points at 35,689.60 and the Nifty rose 80.80 points to 10,821.90.
Sun Pharma, Cipla, Dr Reddy's Labs, Bajaj Finance, Baja Finserv, M&M and Indiabulls Housing Finance rallied 2-5 percent.
HDFC, HDFC Bank, Axis Bank, SBI, ICICI Bank, Bharti Airtel, L&T and HUL gained 1-2.6 percent while RIL fell nearly 2 percent.
HPCL and UPL were under pressure.
Nifty Midcap index gained 80 points.
Hexaware, Adani Transmission, United Spirits, Ujjivan Financial, IDBI Bank, Fortis Healthcare, Can Fin Homes, Jet Airways, InterGlobe Aviation, Infibeam, Jubilant Foodworks, Bombay Dyeing, Manappuram Finance and Havells gained up to 8 percent.
NIIT Tech, Shree Renuka Sugars, Avant Feeds and PNB were under pressure.
Rupee Update: The Indian rupee appreciated further in afternoon, rising 21 paise to 67.77 against the dollar, after increased selling of the US currency by exporters and banks.
Market Update: Benchmark indices extended rally in the last hour of trade with the Sensex rising 297.31 points to 35,729.70, backed by banking & financials, FMCG and pharma stocks.
The 50-share NSE Nifty rose 92.40 points to 10,833.50 while the Nifty Bank traded 300 points higher but the market breadth remained negative.
About 1,347 shares declined against 1,125 advancing shares on the BSE.
Market Cap: Bajaj Finance (up 3.6 percent) overtook Axis Bank (up 2.5 percent) in terms of market capitalisation.
Bajaj Finance market cap stood at Rs 134,946.95 crore and Axis Bank Rs 134,790.92 crore.
OPEC Meeting: Saudi Oil Minister Khalid Al-Falih said he proposed to increase oil supply by 1 mbpd. "1 mbpd supply will be distributed among nations based on their ability to produce."
Roughly 2/3rd supply increases will come from OPEC countries, he said, adding OPEC will meet again in September & make adjustments as needed.
He said no one should expect immediate flood of oil.
"We support increase of 1 mbpd or less if it supports the market," Kuwait Oil Minister Bakheet Al-Rashidi said.
Market Check: Equity benchmarks are trading at the high points of the day, with the Nifty hitting 10,800-mark now. The Sensex is up over 100 points. Strong gains in financials, namely PSU banks, is aiding sentiment on D-Street. Sharp upmoves are visible in sectors such as pharma, FMCG, energy and infra names. Midcaps too have added to their gains, trading around quarter of a percent higher. Sun Pharma is leading the gainers chart on Sensex and Nifty, followed by Bajaj Finance and M&M, while Reliance, Wipro, and HPCL have lost the most.
IPO Subscription: The Rs 466-crore public issue of RITES has been oversubscribed 8.53 times on last day of the issue.
The issue received bids for 21.49 crore shares against the issue size of 2.52 crore shares, as per data available on the NSE website.
IPO Subscription: The issue of Fine Organics was fully subscribed on the third day its initial public offering (IPO) on last day today.
The issue received bids for 68.52 lakh shares against the issue size of 53.65 lakh crore shares. The total issue was subscribed 1.28 times.
Qualified institutional buyers' (QIBs) category was subscribed 2.83 times, non-institutional investors 0.47 times and retail investors 0.75 times.
Market Update: The market is trading mildly higher amid consolidation in afternoon, tracking positive mood in European stocks.
The Nifty is trading above 10,750 levels while FMCG and Pharma are biggest gainers among sectoral indices, rising over a percent.
The Sensex rose 64.13 points to 35,496.52 and the Nifty gained 21.90 points at 10,763.
?European markets are slightly higher, amid ongoing tensions in the energy market ahead of an OPEC meeting that could expand crude production.
Recommendation: Motilal Oswal has initiated coverage with a Buy rating on ICICI Prudential Life Insurance stock and expects 23 percent upside over a period of one year.
"We value ICICI Prudential Life Insurance (IPRU) using the embedded value methodology and estimate the company to deliver new business value of Rs 2,040 crore in FY20E, while operating return on embedded value (RoEV) remains healthy at 19.5 percent," the research house said.
It valued IPRU at around Rs 68,460 crore using P/EV multiple of 2.7x (implied new business multiple of 21x), which implies a price target of Rs 480 per share – an upside of 23 percent.
ICICI Prudential Life Insurance is amongst the market leader in the private sector life insurance space, aided by its strong brand, distribution capabilities and product portfolio.
Poly Medicure in Action : Poly Medicure BV, Netherlands, a subsidiary of the company has entered into a share purchase agreement with Plan 1 Health S.R.L., Italy to acquire 82 percent share capital of Plan 1 Health S.R.L, Italy.
Plan 1 Health S.R.L. will become a 'subsidiary' of Poly Medicure B.V. and in turn an 'indirect subsidiary' of Poly Medicure Limited as and when the share acquisition / transfer process is completed, the company said.
Jindal Saw in focus: Pipe manufacturer Jindal Saw said it is currently not exporting large diameter pipes to the United States and the countervailing duty imposed by the US won't have any impact on company's business.
The US had imposed countervailing duty of 541 percent on export of large welded pipes.
Market Update: The market continued to consolidate amid uncertainty over raising crude output in the OPEC decision due later in the day.
The Sensex gained 44.56 points at 35,476.95 and the Nifty rose 12.30 points to 10,753.40.
The sectoral trend remained mixed with the FMCG rising over a percent while the broader markets continue to underperform frontliners.
About three shares declined for every two shares rising on the BSE.
ITC, HDFC and L&T continued to support the market while Reliance Industries, TCS and HDFC Bank are under pressure
Buzzing: IDBI Bank share price rallied more than 5 percent intraday on Friday after reports suggest that state-run insurance major LIC is discussion with the government to pick up stake in the bank.
Sources told CNBC-TV18 that LIC is open to buy significant minority stake in IDBI Bank but there was no discussion of taking controlling stake yet.
As per its investment strategy, LIC does not buy controlling stake in companies.
Investment decision will go through LIC Investment & Strategy Committee and the quantum of stake buy will depend on negotiations & decision by the committee, sources said.
MTNL in Focus: MTNL share price rallied more than 8 percent after CNBC-TV18 reports quoting NewsRise that Department of Telecommunication may discuss the revival plan for BSNL and MTNL with the Prime Minister Office today.
Buzzing: Hotel Leela has defaulted in payment of quarterly interest of Rs. 212.67 Lakhs which was due on 19th June, 2018.
Total interest outstanding as on date is Rs.12.14 crore and principal redemption amount outstanding as on date is Rs.45 crore, the company said.
The company's operating cash flows are not sufficient to service its term loans and NCDs and the funds of the company are escrowed with its lenders and are also monitored by the lenders. The Company is pursuing with the lenders for Debt restructuring.
The company had issued Secured Redeemable Non-convertible Debentures on Private Placement Basis aggregating to Rs 90 crore to LIC of India in December, 2008.
Market Check: Equity benchmarks are trading around the flatlines as investors await fresh cues from the OPEC meet. The Nifty is hovering above 10,700-mark. All sectoral inices are trading in the red, with maximum cuts seen in the energy space. Nifty FMCG is holding the fort for D-Street with gains of around 1 percent. Midcaps have continued their fall from yesterday, down around one third of a percent. Among stocks, M&M, ITC and Bharti Infratel have gained the most, while Reliance, Wipro, and Grasim are the top losers.
Rain Carbon realigns Product Portfolio: Rain Carbon Inc., a leading global producer of carbon-based products, has revised its reporting segments to include carbon and advanced materials, effective January 1, 2018.
The company said the shift from chemicals to advanced materials reflects the company’s increasing focus on transforming by-products of its coal tar and petrochemical feedstock distillation activities to produce raw materials that support high-growth products of the future.
“Realigning business segments will allow company to increase focus on newly developed products that offer environmental benefits to customers as well as those that are serving the needs of certain high-growth areas,” said Rain Carbon President Gerry Sweeney.
Buzzing: HCL Technologies stock price gained nearly a percent after Finnish networking and telecommunications equipment company Nokia has signed a five-year deal with the firm for modernising its IT infrastructure and applications landscape.
The company did not disclose the value of the deal.
HCL will establish an integrated IT services delivery and design framework for services from four different vendors that have been working with Nokia.
Of late, Nokia has been focusing on going digital by launching new-age products in the markets it operates in.
Market Update: The market is trading mildly in the red amid consolidation as traders eagarly await the OPEC meeting decision due later in the day.
Crude oil prices are up over a percent on uncertainty over whether OPEC would manage to agree a production increase at a meeting in Vienna.
The 30-share BSE Sensex fell 37.64 points to 35,394.75 and the 50-share NSE Nifty slipped 14.20 points to 10,726.90 while the Nifty Midcap dropped 0.4 percent on weak market breadth.
About two shares declined for every share rising on the BSE.
Share Allotment: Essel Propack has allotted 15,71,81,664 bonus equity shares of face value of Rs.2 each as fully paid-up bonus equity shares, in the ratio of 1:1 i.e. one bonus equity share of Rs.2 each for every one fully paid equity share of Rs.2 each held, to the members eligible to receive bonus equity shares of the company whose names appeared in the Register of Members and the Register of Beneficial Owners as furnished by Depositories as on the Record Date i.e. 21.06.2018.
Order Win: Consortium of Capacit'e Infraprojects, Tata Projects Limited and CITIC Construction has received letter of acceptance from Mumbai Housing and Area Development Board (a MHADA Unit) for total contract value of Rs 11,744.26 crore.
"The project will be executed through a Special purpose vehicle in which Capacit'e Infraprojects Limited will have 37.1 percent share worth Rs 4,357.12 crore," the building construction company said in its filing.
Share of Tata Projects Limited in the consortium will be 36.9 percent and CITIC Construction will have 26 percent share.
Rupee Update: The rupee firmed up by 15 paise to 67.83 against the dollar today after increased selling of the US currency by exporters and banks. The dollar slipping from an 11-month peak against other currencies overseas as investors took profits also helped the rupee.
Further, fresh foreign capital inflows took the local currency higher but a lower opening of the domestic equity markets capped the rise, dealers said.
Yesterday, the rupee had appreciated by 10 paise to close at 67.98 against the greenback on sustained selling of the American currency by exporters and local banks.
Market Update: The market is trading flat in morning following mixed trade in Asian peers ahead of uncertainty over raising crude output in OPEC meeting decision due later in the day.
Sectoral trend is also mixed while the broader markets are trading in line with frontliners
The 30-share BSE Sensex fell 10.26 points to 35,422.13 and the 50-share NSE Nifty declined 11.60 points to 10,729.50.
Technical Outlook by Hadrien Mendonca of IIFL:
Going forward, the scenario may turn challenging if the Nifty breaks below its crucial 10,650 level. This is the rising trend line support zone of the enter Symmetrical Triangle pattern within which the Nifty is currently trading in.
For the Nifty to resume its northbound journey, it has to break above 10,930 levels.
The Bank Nifty is on the verge of a breakdown too. Crucial support for the Bank Nifty index is now seen around its 21-day Double Exponential Moving Average which is placed at 26,350. If the Bank Nifty fails to hold above the same then further weakness cannot be ruled out in the near term.
Crude Update: Oil prices rose by more than 1 percent, pushed up by uncertainty over whether OPEC would manage to agree a production increase at a meeting in Vienna later in the day.
Brent crude futures, the international benchmark for oil prices, were at $73.96 per barrel, up 1.25 percent, from their last close.
US West Texas Intermediate (WTI) crude futures were at $66.44 a barrel, up 1.37 percent.
The Organization of the Petroleum Exporting Countries (OPEC), a producer cartel de-facto led by top exporter Saudi Arabia, is meeting together with some non-OPEC members including top producer Russia at its headquarters in the Austrian capital to discuss output policy.
The group started withholding supply in 2017 to prop up prices, reports Reuters.
Market Opening: Benchmark indices started off the tarde on a weak note Friday amid mixed Asian cues ahead of OPEC meeting decision due later in the day.
The Sensex fell 23.01 points to 35,409.38 and the Nifty declined 12.90 points to 10,728.20.
BPCL, IOC, ICICI Bank, HCL Technologies, Bajaj Finance, Dr Reddy's Labs, Tata Steel and ONGC are early gainers.
UPL, Grasim, Sun Pharma, Adani Ports and Reliance Industries are under pressure.
The Nifty Midcap index fell 36 points and Nifty Bank index declined 9 points.
MT Educare, Vakrangee, Manpasand Beverages, Jet Airways, Ashok Leyland and SBI Life gained 1-9 percent.
Kwality, PC Jeweller, Jaiprakash Power, Avanti Feeds, Granules India, PTC India Financial and KEC International are losers in early trade.
Expansion: JSW Steel has proposed an investment of upto $ 500 million in acquiring, enhancing & upgrading Acero Junction Inc, an integrated steel manufacturing unit with a potential capacity of 3 MTPA, located at Ohio USA, in phases.
This takes JSW’s overall investment blueprint for the US market, to produce American melt and manufactured steel, to up to $1 billion. The proposed investment will be made in two phases at its Ohio steel manufacturing facility.
Stocks in News:
Nokia signed five-year global IT infrastructure and application services deal with HCL Technologies.
AstraZeneca received marketing permission for Durvalumab (ImfinziTM) in India.
Strides Shasun's Rectal Artesunate Product received WHO Prequalification.
KPIT and Kinetiq announced strategic life sciences collaboration.
Oberoi Realty alloted 2.4 crore equity shares at Rs 500 each via QIP to investors including Fidelity, Goldman Sachs etc.
Karnataka Bank set export credit target of Rs 2,900 crore to support export sector.
Havells to acquire remaining 31 percent stake in subsidiary Promptec.
Nalco, Hindustan Copper to Form JV to buy Lithium Mines.
Som Distilleries arm received approval for manufacturing of Indian-made foreign liquor.
JSW Steel may bid for ArcelorMittal’s Romanian plant: Reuters.