Sensex surges 347 points, Nifty reclaims 11,000; financials rally

25 Sep 2018

Market at Close: What a comeback for the bulls after days of relentless correction. Sharp recovery among financials, along with automobiles, metals, pharmaceuticals and IT names ensured that benchmarks ended the day at high points of the day.

The Sensex ended over 350 points higher, while the Nifty ended above 11,000-mark as well.

Among sectors, energy and infrastructure names were the only big losers, while all other indices closed in the green. In the broader markets, the Nifty Midcap ended quarter of a percent higher as well.

At the close of market hours, the Sensex ended higher by 347.04 points or 0.96% at 36652.06, while the Nifty is up 100.10 points or 0.91% at 11067.50. The market breadth is negative as 1,074 shares advanced, against a decline of 1,553 shares declined, while 184 shares were unchanged.

CLSA on ITC: Shares of ITC gained more than 1 percent as broking house CLSA maintained buy with a price target of Rs 390 per share.

According to CLSA there is a potential upside of 31 percent from the last regular trade.

There is a proposal for an additional ‘disaster cess’ to help Kerala post the floods. The said proposal is likely to come up for discussion at the GST Council meet on September 28.

Market Update: Market turns the corner and trading higher in the afternoon trade with Nifty trading above 11,000 mark in the final hour of trade.

At 14:55 hrs IST, the Sensex is up 245.16 points at 36550.18, while Nifty is up 64 points at 11031.40. About 813 shares have advanced, 1738 shares declined, and 158 shares are unchanged.

Pharma and banks are providing support to the market with 1-2 percent gain.

Ashoka Buildcon bags project: Ashoka Buildcon has emerged as the Lowest Bidder (L-1) for Package 1 and Package 2, the aggregate bid value of which is Rs 794.20 crore, with a completion period of 42 months for each package.

The company has submitted bid to Rail Vikas Nigam in joint venture with Story Tech Services LLC, wherein the company is a lead member, for the project viz. construction of roadbed, bridges, supply of ballast, installation of track (excluding supply of rails, and track sleepers), electrical (General Electrification), provision of OHE, signaling and telecommunication works in connection with 3rd Line from Sonnagar to Garhwa Road in Dhanbad division of East Central Railway, in the states of Bihar and Jharkhand in 2 packages.

At 14:50 hrs Ashoka Buildcon was quoting at Rs 110.50, down Rs 3.35, or 2.94 percent.

DHFL tumbles 27%: Shares of Dewan Housing Finance (DHFL) erased early gains and tumbled 27 percent on Tuesday amid fears of a liquidity crisis which continued to haunt sentiments. .

Shares of DHFL had bounced back sharply Monday and ended nearly 12 per cent higher after a massive selling spree on fears of a liquidity crisis Friday.

Housing finance company DHFL Monday had asserted that it has not defaulted on any financial obligations and there has been no instance of delay in repayment of any liability.

"DHFL reiterated that the company has neither defaulted on any bonds or repayment of its financial obligations, nor has there been any instance of delay on any repayment of any liability," a company statement said Monday.

Market Update: Benchmark indices erased all its gains and trading flat in the afternoon trade.

The Sensex is up 40.66 points at 36345.68, while Nifty is down 9.80 points at 10957.60. About 867 shares have advanced, 1568 shares declined, and 139 shares are unchanged.

Private banking major Yes Bank slipped below Rs 200 mark, touched 52-week low of Rs 198.65.

Goldman Sachs maintains buy on Eicher Motors: Shares of Eicher Motors touched 52-week low of Rs 25,060.40, down 3.4 percent despite foreign research house Goldman Sachs maintained buy rating with potential upside of 44 percent.

The firm has kept price target of Rs 37,358 per share.

The company will launch two new motorcycles in foreign and domestic market, which is a key catalyst for the stock, said Goldman Sachs.

CANARA BANK DRAGS GTL GROUP TO NCLT

Canara Bank has moved taken telecom infrastructure player GTL group to the National Company Law Tribunal (NCLT) after the company defaulted on its debt repayment.

While GTL has defaulted on Rs 459 crore loans from the bank, GTL Infrastructure owes Rs 541 crore to the lender.

"Canara Bank has filed an application for initiation of corporate insolvency resolution process against GTL and GTL Infrastructure," the companies said in separate filings to exchanges.

MOODY’S VIEW ON RENEWABLE ENERGY

The share of renewable energy in the country's electricity generation mix is likely to rise to around 18 percent by 2022, from 7.8 percent at present, owing to the continuous focus on capacity addition from solar and wind, a report said Tuesday.

Global ratings agency Moody's Investors Service in its report said India is taking positive steps to align its power generation mix with its Nationally Determined Contribution (NDC) commitments under the Paris Climate Agreement.

Buzzing stock: National Aluminium Company (NALCO) share price rallied 2.8 percent intraday Tuesday after global brokerage house Macquarie raised target price on the stock.

The stock price was quoting at Rs 66.60, up Rs 1.75, or 2.70 percent on the BSE, at 12:20 hours IST.

Macquarie has upgraded alumina prices by 25-37 percent for FY19-20. "Higher alumina and weaker rupee lead to 25-41 percent EPS for FY19-21," the research house said.

It feels the company is the best play on alumina and maintained Outperform call on the stock with increased target price to Rs 87 from Rs 82 per share.

GARDEN REACH SHIPBUILDERS IPO UPDATE

The initial public offering (IPO) of Garden Reach Shipbuilders and Engineers has received a tepid response. As of 11:45 am on Day 2 of the issue, it has been subscribed 0.02 times.

From a total issue size of 2.92 crore shares, it received bids for 5.5 lakh shares.

Buzzing: Adlabs Entertainment share price rallied 14.5 percent after company signed agreement for new entertainment park in Andhra Pradesh.

Adlabs has signed an MOU with Riverbay group, to develop and operate a new entertainment park in Amaravathi, the strategically located in Andhra Pradesh government's new planned capital.

Kajaria Ceramics approves acquisition: The board approved acquisition of 30,00,000 equity shares of Rs 10 each of Kajaria Floera Ceramics, a subsidiary company, at a consideration aggregating to Rs 3 crore, subject to applicable laws.

The board has also approved incorporation of a wholly-owned subsidiary company in USA by making investment/loan not exceeding USD 1 Million, subject to compliance of applicable laws.

At 11:42 hrs Kajaria Ceramics was quoting at Rs 388.55, down Rs 10.75, or 2.69 percent.

INDIGO, JET AIRWAYS AND SPICEJET FACE CRUDE, PASSENGER TRAFFIC HEADWINDS

Aviation companies such as InterGlobe Aviation, Jet Airways and SpiceJet are all down up to 3.5 percent on the BSE. These companies are facing a double whammy in terms of higher crude oil prices as well as a dip in passenger data too.

SUVEN LIFE SCIENCES SECURES PRODUCT PATENTS IN CANADA AND SRI LANKA

Suven Life Sciences told exchanges in a filing that it has been granted product patents from Canada and Sri Lanka corresponding to the New Chemical Entity for the treatment of disorders associated with Neurodegenerative diseases.

The granted claims of the patents include the class of selective H3 and 5-HT6 compounds respectively and are being developed as therapeutic agents for neurodegenerative disorders such as Alzheimer’s disease, Attention deficient hyperactivity disorder (ADHD), Huntington’s disease, Parkinson and Schizophrenia and sleep disorders like Narcolepsy, among others.

The stock is currently trading higher by 7 percent.

ORDER WIN FOR CAPACITE INFRAPOJECTS

Capacite Infraprojects has won contracts worth Rs 674.75 crore. This includes receipt of an order from Piramal Realty Group worth Rs 560.90 crore and a repeat order of Rs 113.85 crore from Radius Group. The company has informed regarding the order win in a filing to the exchanges.

Market Update: There’s a sharp recovery seen on D-Street. The Sensex is trading higher by over 100 points, while the Nifty is looking to clinch 11,000-mark.

The Sensex is up 103.67 points or 0.29% at 36408.69, while the Nifty is higher by 26.60 points or 0.24% at 10994.00. The market breadth is negative as 873 shares advanced, against a decline of 1,196 shares, while 118 shares were unchanged.

Buying counters are now buzzing in the financials space, with the Bank Nifty trading over one-third of a percent higher. Automobiles, pharmaceuticals and IT sectors are trading higher as well. In the broader markets, midcaps are trading higher by one-fifth of a percent. Here is a look at the heatmap chart on Sensex.

YES BANK RISES AHEAD OF BOARD MEETING

Yes Bank’s shares are up more than 3 percent ahead of its Board Meet to choose a successor to MD & CEO Rana Kapoor.

A day before its board meeting, Yes Bank reassured investors of the bank’s commitment to its stakeholders along with its strong financial position.

“At the outset, the Bank would like to inform its stakeholders that the Bank and its MD & CEO (managing director and chief executive officer) will be fully guided by its Board of Directors (meeting scheduled on September 25, 2018), the Reserve Bank of India and other relevant stakeholders. The Bank's management remains committed to protecting the interests of all of its stakeholders,” Yes Bank said in a statement to the stock exchanges.

Buzzing: Shares of Mangalam Drugs & Organics locked at 5 percent upper circuit on Tuesday after company received WHO approval.

There were pending buy orders of 14,766 shares, with no sellers available.

The company received the final approval from (WHO) World Health Organization for the drug Efavirenz.

Infosys wins CAD 80.3 million contract: Share price of Infosys rose 1 percent after Infosys Public Services Inc (IPS) has been awarded a CAD USD 80.3 million contract by Public Services and Procurement Canada (PSPC) to modernize and automate their procurement processes.

IPS is working with Ernst & Young LLP (EY) and SAP Canada Inc. (SAP) to digitize PSPC procurement system through the implementation and management of a cloud-based electronic procurement solution.

Market Update: Selling pressure has hit the market within the first fifteen minutes of trade. The Sensex has now extended losses to over 100 points, while the Nifty is hovering below 10,950-mark.

A weaker rupee and high crude prices are weighing on financials space, while non-banking financial companies (NBFCs) have also continued with their bear streak. Banks, automobiles, FMCG and metal names are the top losers among all sectoral indices, while pharmaceuticals are the big gainers. The Nifty IT index is trading marginally higher.

The Sensex is down 106.99 points or 0.29% at 36198.03, while the Nifty is down 36.70 points or 0.33% at 10930.70. The market breadth is negative as 486 shares advanced, against a decline of 964 shares, while 65 shares were unchanged.

Yes Bank and ONGC are the top gainers, while Bharti Airtel, Power Grid, Indiabulls Housing and Bharti Airtel have lost the most.

Market opens: It is a negative start to the market on Tuesday, with the Nifty beginning 14 points lower around 10,950-mark. The Sensex is trading flat.

The Sensex is down 6.16 points or 0.02% at 36298.86, and the Nifty down 14.00 points or 0.13% at 10953.40. The market breadth is narrow as 300 shares advanced, against a decline of 227 shares, while 49 shares are unchanged.

Among sectors, banking names have taken a hit, along with automobiles and metal names. Pharmaceuticals are trading in the green, while IT names are trading flat, amid a weak rupee.

HDFC and Yes Bank are the top gainers, while Power Grid, ICICI Bank, Indiabulls Housing and Bajaj Finance have lost the most.

Rupee Opens: The Indian rupee slipped in the early trade on Tuesday. It opened lower by 26 paise at 72.89 per dollar versus previous close 72.63.

Yesterday, the rupee rose marginally against the US dollar but gains for the currency was short lived after global crude oil prices rallied to fresh highs. Brent crude oil rose to the highest level in four years after Saudi Arabia and Russia ruled out any immediate increase in production despite calls by US President Donald Trump for action to raise global supply, said Motilal Oswal.

Concerns about production shortfalls are encouraging traders to remain long on the commodity. On the other hand, strength in the dollar against its major crosses also weighed on the rupee.

Today, USD-INR pair is expected to quote in the range of 72.50 and 73.20, it added.

Market pre-open: Benchmark indices opened mixed on Tuesday with Sensex gained 100 points, while Nifty is down 30 points in the pre-opening trade.

At 09:02 hrs IST, the Sensex is up 103.54 points at 36408.56, while Nifty was down 29.60 points at 10937.80.

IOC, BPCL Maruti Suzuki and M&M are among the major lowers in pre-opening trade.