Sensex ends over 370 points higher, Nifty ends above 11,500; midcaps outperform

14 Sep 2018

IPO update for Bharti’s Africa business: Bharti Airtel has chosen UBS, JP Morgan and Citi to coordinate the London initial public offering of its Africa business, two sources familiar with the matter said.

In February Bharti Airtel Ltd said the holding company for its Africa operations was looking at a potential IPO. The appointment of banks for a London listing is a sign the process is progressing.

Bharti Airtel and the banks declined to comment. The company has not given a timeframe for the listing to happen.

The sources declined to comment on the valuation of the Africa operations but the business represents just over a quarter of the revenue of the listed entity, which has a $20 billion market capitalisation.

Market at Close: Thank God its' Friday indeed for investors as benchmark indices managed to close the session on a very strong note. The Nifty has ended above 11,500-mark.

There was buying visible across all the sectors, with maximum gains visible among banks, automobiles, metals, and pharmaceuticals as well. Huge gains in the midcaps segment also boosted market sentiment. The Nifty Midcap ended with gains of 2 percent.

At the close of market hours, the Sensex ended up 372.68 points or 0.99% at 38090.64, while the Nifty closed higher by 145.30 points or 1.28% at 11515.20.

The market breadth is positive as 1,797 shares advanced, against a decline of 834 shares, while 183 shares were unchanged.

Vedanta, Bharti Airtel, Indiabulls Housing and BPCL have gained the most, while Coal India, Infosys and HCL Tech have lost the most.

Market Update: The market has extended extends gains in the last hour of trading on Friday. The Nifty has hit 11,500-mark, while the Sensex has soared over 400 points.

The Sensex is up 400.04 points at 38,118.00, while the Nifty up 150.10 points at 11,520. About 1749 shares have advanced, 772 shares declined, and 181 shares are unchanged.

Sakuma Exports approves sub division of equity shares: Company board approved sub-division of equity shares of the company from the existing face value of Rs 10 per equity share to face value of Re 1 per equity share, subject to approval of the members of the company.

It also approved raising funds by issue of equity shares, as may be permitted, by way of a qualified institutions placement (QIP)/ Foreign portfolio Investment (FPI) or any other placement for an aggregate amount not exceeding Rs 800 crore.

Buzzing: Shares of Ashok Leyland added 3 percent after winning of another order from Bangladesh Road Transport Corporation (BRTC).

The company today announced the winning of another order from BRTC for the supply of 200 Ashok Leyland buses. The order is for single decker AC buses which includes intercity AC buses as well as city AC buses.

These completely built-up (CBU) units for BRTC will be procured against a tender under Indian Line of Credit.

IFCI revises benchmark rates: The company has revised its benchmark rates w.e.f. September 14, 2018. The short term benchmark rate (IBR-ST) has been revised from 9.10 percent p.a. to 9.20 percent p.a., with monthly rests.

IFCI Benchmark Rate (IBR) for long term loans has been revised from 10.40 percent p.a. to 10.60 percent p.a., with monthly rests.

Buzzing: Share price of Engineers India advanced 3 percent as company is going to acquires government's 100 percent stake in Projects and Development India (PDIL).

The company's board in its meeting held on September 13 considered the proposal for acquisition of 100 percent paid-up share capital of PDIL from President of India, acting through the Ministry of Chemicals & Fertilizers and given the approval of bidding for the same by way of share acquisition route, company said in release.

VEDANTA SOARS ON DISCOVERY OF GAS IN BAY OF BENGAL

Shares of Vedanta gained over 5 percent as investors cheered it discovering natural gas in Krishna Godavari basin block in Bay of Bengal.

In a regulatory filing, mining baron Anil Agarwal's company which had recently merged oil explorer Cairn India with itself, said it has notified the oil ministry and the upstream regulator Directorate General of Hydrocarbons (DGH) about the discovery in well A3-2 in block KG-OSN-2009/3.

Vedanta holds 100 per cent participating interest in the block.

"A3-2 is the first exploration well drilled within the KG-OSN-2009/3 block," it said. "Multiple reservoir zones were encountered in the Mesozoic rift formation between the depths of 3351-3944 meters with indications of hydrocarbon during drilling and formation evaluations."

Buzzing stock: Shares of NBCC gained over 5 percent after it informed of buying out 100 percent government stake in consultancy firm HSCC for Rs 285 crore.

"DIPAM intimated vide letter dated September 13, 2018 that NBCC has been selected as the buyer for 100 percent strategic disinvestment of HSCC at a bid amount of Rs 285 crore," NBCC said in a filing to the BSE.

The government last October invited bids from similarly placed central public sector enterprises (CPSEs) for buying out entire 100 percent stake in HSCC, along with management control.

Market Update: Equities have gathered steam in the afternoon session, with the Sensex reclaiming 38,000, rising over 300 points. The Nifty has soared over 100 points and is trading near 11,500-mark.

Intense buying is visible across major sectors, with banks, auto, metals and pharmaceuticals leading the gainers’ chart. Adding to the strength is a surge in midcaps, with the Nifty Midcap index soaring over 1 percent.

The Sensex is up 295.38 points or 0.78% at 38013.34, and the Nifty up 116.60 points or 1.03% at 11486.50. The market breadth is positive as 1,705 shares advanced, against a decline of 713 shares, while 168 shares were unchanged.

MUTUAL FUND NEWS: BOI AXA Mutual Fund has sought the Securities and Exchange Board of India's approval to launch BOI AXA Small Cap Fund, an open-ended equity scheme predominantly investing in small cap stocks.

The scheme will invest at least 65 percent of its assets in equity and equity-related instruments of small cap companies, up to 35 percent in equity and equity-related instruments of companies other than small cap companies.

It also has the provision to invest up to 35 percent in debt and money market instruments and up to 10 percent in units issued by real estate and infrastructure investment trusts

Asian markets update: News agency Reuters reported that shares across most of Asia rose on Friday on expectations that the United States and China could launch a fresh round of trade talks, and as a surprisingly sharp interest rate hike in crisis-hit Turkey supported the lira and global risk appetite.

But stocks in China fell amid lingering uncertainty over the outlook for trade.

“What the market wants is some degree of certainty,” said Jim McCafferty, head of Equity Research, Asia ex-Japan at Nomura.

“I think everyone knows that the trade deal might not be as optimistic as it might have been in ... June or July, and it might be negative for many Chinese companies. But the fact that there’s no certainty there is one reason that investors are staying on the sidelines.”

News of a possible new round of talks between Washington and Beijing comes even as the trade war between the world’s two largest economies looks set to escalate.

TATA ELXSI RISES ON EXTENDING TIE UP WITH AIRTEL: Shares of Tata Elxsi rose 2 percent after it extended its partnership with Airtel’s DTH service arm.

In an exchange filing, the company said that its alliance was being extended with Airtel Digital TV to deliver an engaging digital platform for customers.

As part of this, Tata Elxsi will build the application software for the company’s innovative hybrid set-top-box, Internet TV.

“We are working together to innovate next generation experiences for subscribers. We see exciting future possibilities with technologies such as AI, multi-modal interfaces such as voice and gesture, and seamless access to content - both online and offline,” said KP Sreekumar, VP and Head of Broadcast Business at Tata Elxsi said in an exchange filing.

Cadila Healthcare rises nearly 3% on USFDA final approval: Share price of Cadila Healthcare rose nearly 3 percent as Zydus Cadila has received the final approval from the USFDA to market Risedronate Sodium Delayed-Release Tablets, 35 mg.

It will be manufactured at the group’s formulations manufacturing facility at Moraiya, Ahmedabad.

Risedronate is a medicine of bisphosphonate group that alters bone formation and breakdown in the body. This can slow bone loss and may help prevent bone fractures.

This medicine is used to treat osteoporosis in women, caused by menopause.

Buzzing: Shares of KNR Constructions rose 6.5 percent intraday Friday after company received bank sanction to finance HAM Project (Hybrid Annuity Mode) worth Rs 1,234 crore.

KNR Shankarampet Projects, our wholly owned subsidiary company has received sanction from bank to finance its HAM project.

With the receipt of above sanction letter, the company is well within the time line as specified in the concession agreement for financial closure of the said project.

Rupee Update: The Indian rupee pared some of its morning gains as it is trading around 71.80 per dollar after it opened 49 paise higher at 71.70 in the early trade.

It opened at 71.70 per dollar on Friday versus 72.19 Wednesday.

Lupin rises: Shares of Lupin rose over 2 percent on Friday morning after the company announced its Nagpur facility received no observations from the US FDA in its latest inspection. “This inspection was a product specific pre-approval inspection. Lupin’s Nagpur facility is the company’s latest site and manufactures Oral Solid Dosage products. The site also houses Lupin’s state of the art injectable manufacturing facility,” the company said in an exchange filing.

Large trade on Fortis: Shares of Fortis Healthcare rose around 2 percent as investors reacted to developments in the NCLT case between Shivinder Singh and his brother.

The feud between brothers Shivinder Mohan Singh and Malvinder Singh took a new turn on Thursday when the former withdrew his petition from the NCLT citing respect for their mother.

“That out of respect for their mother, the parties have already started mediation and as per the request of the mediators to constructively progress the mediation, the petitioners wish to withdraw the captioned Petition, without prejudice to their rights and contentions. All rights of the petitioners are hereby reserved,” read the filing.

Shivinder had earlier on September 4 filed a case against Malvinder and Sunil Godhwani in the NCLT, alleging 'oppression and mismanagement' of RHC Holding, Religare Enterprises and Fortis Healthcare.

CNBC-TV18 has further reported that a block deal has taken place in the stock. Over 50 lakh shares (1% equity) have traded in 2 blocks on NSE & BSE at Rs 144.70 per share.

BSE CHAIRMAN ON TRADING TIMINGS: BSE Chairman Ashish Kumar Chauhan has told CNBC-TV18 that the exchange is waiting for an approval to start round-the-clock derivatives trading. He further reiterated that derivatives is currently trading successfully for 22 hours per day at Gujarat’s GIFT City.

At this point, only equity derivatives are allowed with extended timelines to trade, he said, adding that the exchange, in general, is comfortable running the market for longer hours.

Market Update: Equity benchmarks have continued to maintain upward momentum, with the Nifty trading well above 11,400, while the Sensex is higher by around 200 points. A stronger rupee and a likely profit booking sentiment is weighing on tech stocks, with the Nifty IT index falling almost a percent.

However, other major sectors are trading in the green, with maximum gains seen in banks, metals, pharmaceuticals, as well as auto names. Midcaps, too, are trading strong and pushing indices higher. The Nifty Midcap index is up over a percent.

At 09:45 hrs IST, the Sensex is up 194.94 points or 0.52% at 37912.90, and the Nifty up 70.00 points or 0.62% at 11439.90. The market breadth is positive as 1,344 shares advanced, against a decline of 375 shares, while 90 shares were unchanged.

Power Grid, Yes Bank, Indiabulls Housing and HPCL are the top gainers, while Wipro, Infosys, Tech Mahindra and HCL Technologies are the top losers.

OMCs surge: Shares of oil marketing companies soared on Friday morning as investors cheered lower crude oil prices and its impact on the companies’ financials.

The likes of Hindustan Petroleum and Bharat Petroleum, among others, rose over 3 percent. Here is a look at their charts.

Sun Pharma jumps 3%: Shares of Sun Pharma are trading higher by over 3 percent on Friday morning as investors cheered an approval for an eye drug for the company. It received an USFDA nod for its specialty opthalmic drug Xelpros, which is used to treat chronic eye disease glaucoma.

The New Drug Application (NDA) of Xelpros was filed from the Halol site in Gujarat. Sun Pharma management earlier indicated that the peak sales guidance of Xeplros is expected to be in the range of $50-$75 million over two to three years. Here is a look at its one-week chart.

Market opens: It’s a strong start to the market on Friday morning, with the Nifty racing past 11,450, up over 100 points, while the Sensex is higher by over 250 points.

Steady global cues, easing oil prices and stronger rupee is aiding sentiment on D-Street. Among sectors, banks, auto, infrastructure, metals and pharma are all trading in the green, while the Nifty Midcap index is up around 1 percent.

The Sensex is up 274.92 points or 0.73% at 37992.88, while the Nifty is higher by 110.20 points or 0.97% at 11480.10. The market breadth is positive as 481 shares advanced, against a delcine of 91 shares, while 40 shares were unchanged.

Shares of Sun Pharma and Vedanta are the top gainers, while Wipro, TCS, Tech Mahindra and HCL Technologies are the top losers.

Rupee opens higher: The Indian rupee continues it gaining momentum on Friday as it gained 49 paise in the opening trade.

It opened higher at 71.70 per dollar versus 72.19 Wednesday.

Technically, now USD-INR is getting support at 71.775 and below same could see a test of 71.39 level, and resistance is now likely to be seen at 72.785, a move above could see prices testing 73.41, according to LKP currency report.

Market at pre-open: Equity benchmarks are likely to have a good start on this Friday morning, with pre-opening rates indicating an upbeat move. The Nifty has zoomed past 11,400, while the Sensex is up almost 200 points.

The Indian rupee has opened at a one-week high and opened at 71.70 per US dollar.

At 09:02 hrs IST, the Sensex is up 199.22 points or 0.53% at 37917.18, and the Nifty up 73.20 points or 0.64% at 11443.10.