Nifty above 10,800, Bharti Airtel up 5%
14 December 2018
Market at close: Benchmark indices ended positive but remained flat throughout the day with Nifty close just above 10,800 mark.
At the end, Sensex was up 33.29 points at 35962.93, while Nifty was up 14 points at 10805.50. About 1249 shares have advanced, 1287 shares declined, and 145 shares are unchanged.
Bharti Airtel, Yes Bank, ONGC, NTPC and Asian Paints are the top gainers on the Sensex, while losers are HDFC, Wipro, L&T, Adani Ports and Bajaj Auto.
Among sectors, except pharma and metal all other sectoral indices ended in green, while midcap and smallcap stocks ended flat.
Satin Creditcare Network raised $30 million non-convertible debentures (NCD) from the Netherlands Development Finance Company (FMO) to accelerate its microfinance lending portfolio.
The investment will support Satin Creditcare in its planned expansion and portfolio growth, and its efforts in increasing financial inclusion, through its operations in more than 20 states, the company said.
Anti-dumping Duty Likely On Chinese Chemical
The government may impose anti-dumping duty for five years on a Chinese chemical used in dye and photography industry in order to guard domestic players from cheap imports from the neighbouring country.
Imposition of the duty on 'Meta Phenylene Diamine' was recommended by the commerce ministry's investigation arm - Directorate General of Trade Remedies (DGTR) after conducting a probe in this regard.
In its probe, the directorate has concluded that there has been continued dumping of the chemical from China and it is likely to continue and increase if the current duty is allowed to cease. Source: PTI
Alembic Pharma Raises Rs 350 Crore Via NCDs
Drug firm Alembic Pharmaceuticals said it has raised Rs 350 crore through allotment of non-convertible debentures (NCDs) on private placement basis.
"The NCD committee of Alembic Pharmaceuticals Ltd...has allotted 1,500, 9 percent rated unsecured listed redeemable non-convertible debentures (NCDs)... aggregating to Rs 150 crore under tranche I," Alembic Pharmaceuticals said in a regulatory filing.
The company said it has also allotted 2,000, 9 percent rated unsecured listed redeemable NCDs...aggregating to Rs 200 crore.
Honda Cars to Increase Car Prices
Auto major Honda Cars India said it will increase prices of its entire model range from next month in order to partially offset the impact of rising input costs.
The company, which sells a range of models in the country, including sedans Amaze and City, is currently working on the quantum of the price increase.
"Our input costs are up by 4 percent already due to rise in input costs. In order to offset the impact we are looking to increase vehicle prices from January. We are currently in the process of working out the exact quantum of the hike," Honda Cars India Ltd (HCIL) Senior VP and Director (Sales and Marketing) Rajesh Goel told PTI.
European stocks also traded lower, amid escalating concerns of a sharp slowdown in the world's second largest economy.
Germany's DAX, Britain's FTSE and France's CAC indices were down around a percent each.
ADAG Stocks trade higher
Anil Dhirubhai Anmabi Group (ADAG) stocks are trading higher after Supreme Court (SC) dismissed all the petitions seeking an investigation into alleged irregularities in the Rs 58,000 crore deal.
There is no occasion to doubt the decision-making process in the procurement of 36 Rafale jets from France, the Supreme Court said on Friday and dismissed all the petitions seeking an investigation into alleged irregularities in the Rs 58,000 crore deal, reported PTI.
Oil Update: Oil prices dipped on Friday amid concerns over slowing economic growth in China and as investors cashed in on gains of over 2 percent from the previous session, although supply cuts agreed last week by major crude producers offered some support
Ramco Cements' Expansion Plan
The company proposes to expand its clinker capacity from 3.10 MTPA to 4.60 MTPA along with waste heat recovery system (WHRS) of 27 MW at its Jayanthipuram plant in Krishna District at a cost of Rs 740 crore.
The company is also expanding its grinding capacity at Vizag by another 1 MTPA with the investment of Rs 250 crore for increasing the capacity from 0.9 MTPA to 2 MTPA.
Both projects are expected to be commissioned in March 2020.
With the above investments, the capacity in the State of Andhra Pradesh would become close to 10 MTPA making the company the largest Cement Manufacturer in Andhra Pradesh, Ramco Cement said.
Asian Markets Close Sharply Lower
Shares in Asia closed lower as Chinaese economic data missed expectations, deepening worries about headwinds facing the world's second largest economy.
China's Shanghai Composite, Japan's Nikkei, Hong Kong's Hang Seng, South Korea's Kospi and Australia's ASX 200 were down 1-2 percent.
PE and M&A Deals in 2018
2018 has been a blockbuster year for deal activity in India as this year has broken all previous records by crossing the $100 billion mark in terms of deal value across both private equity (PE) and strategic (M&A) transactions, PwC India said.
Deal value as of December 3, 2018 had reached a record high of around $105 billion across 1,640 transactions, it added.
It said 2018 also recorded strategic deals worth over $71 billion, superseding all previous records and making 2018 a landmark year for M&A in India.
RBI Board Meeting Gets Underway
The crucial central board meeting of the Reserve Bank is underway today morning to discuss contentious issues including a new economic capital framework
(ECF) for the central bank and relaxation in the prompt corrective action norms for at least some of 12 state-run banks.
This is the first board meet chaired by the newly-appointed Shaktikanta Das, who took over as the 25th governor on Wednesday.
In the previous board meeting, held on November 19, the board had decided to constitute a committee of experts to fix the appropriate level of economic capital framework (ECF) that the central bank should hold at any given time and the membership and terms of reference of which will be jointly determined by government and RBI.
Reliance Communications Rises After Supreme Court Order
Shares of Reliance Communications rose 6.6 percent intraday after Supreme Court directed Department of Telecommunications (DoT) to issue NOC to allow company the spectrum sale within 2 days.
Earlier, Supreme Court allowed spectrum sale from Reliance Communications to Jio and directed company to furnish corporate guarantee of Rs 1,400 crore to DoT.
However, Reliance Realty has furnished corporate guarantee of Rs 1,400 crore to Telecom Department as directed by the Supreme Court.
EU Steps Up Planning For No-Deal Brexit
EU leaders agreed Thursday to step up preparations for Britain crashing out of the bloc next March without a deal, with the European Commission to publish a plan next week.
At a summit in Brussels, the leaders of the 27 EU member states called for work on "contingency preparedness" -- Brussels jargon for no-deal planning -- to be intensified.
Commission President Jean-Claude Juncker said he would publish no-deal planning details on December 19, urging Britain to clarify what it wants from the EU.
NIIT Jumps on Allotment of Shares to Amalgamating Companies
NIIT shares gained more than 4 percent after the board approved the allotment of 2.53 crore shares to PIPL Management Consultancy and Investment Private Limited and 2.59 crore shares to Global Consultancy and Investment Private Limited.
Both companies will be amalgamated into NIIT Limited, which was sanctioned by National Company Law Tribunal on November 12, 2018.
"Further 51,282,359 equity shares held by the Amalgamating Companies in the share capital of the Company got cancelled pursuant to the Scheme," the company said, adding there is no change in equity shareholding (promoter/ public) of the company, post allotment/ cancellation of equity shares.
Dhanuka Agritech Gains Ahead of Board Meet
Shares of Dhanuka Agritech added 3 percent intraday as the company is going to consider buyback price on December 20.
The meeting of the buyback committee of the company shall be held on December 20, 2018, to consider and approve the final buyback price, fixation of record date and other related matters in respect of the proposed buyback of equity shares of the company.
Trading Window for dealing in securities of the company will be closed with effect from December 14, 2018, to December 23, 2018 (both days inclusive).
RBI Reserve Should Be Used To Fix Financial System
The Reserve Bank is adequately capitalised, but the money should be used for fixing the financial system, not for financial deficit or financing government expenditure, Former Chief Economic Advisor Arvind Subramanian has said.
The economic principles, moreover, say savings should not be used for current consumption, but for long-term investment, he said Thursday.
"If the reserve is used for deficit financing that would amount to raiding RBI and I would be extremely dissatisfied and disappointed with it," he said, adding the central bank probably is massively capitalised, but the money should be used for fixing the financial system, not for financial deficit or financing government expenditure.
"Also, it should be done cooperatively, not adversarily," he added. Source: PTI
Bharti Airtel, Vodafone Idea Rally
The telecom tribunal Thursday struck down Trai's new norms on predatory pricing saying they lacked required transparency, an order that provides much-needed relief to operators such as Bharti Airtel and Vodafone Idea who had alleged that the rules were tailored for a new entrant. Sources: PTI
Oil Price Fall
Oil prices fell as investors cashed in gains of more than 2 percent made during the previous session on concerns demand may slump amid slowing economic growth, though there are still expectations for producer supply cuts to support prices.
China, the world's second-largest economy and the largest crude importer, reported some of the slowest retail sales and industrial output growth in years for November, highlighting the risks of the country's trade dispute with the United States.
Brent crude oil futures were at $61.05 per barrel, down 0.65 percent, from their last close. US West Texas Intermediate (WTI) crude futures were at $52.38 per barrel, down 0.38 percent, from their last settlement.
Edelweiss Sees 45% Upside in JSW Steel
Edelweiss Financial has a buy call on JSW Steel with a target price at Rs 433, implying a 45 percent potential upside from Thursday's closing levels. The stock gained more than half a percent in morning.
The research house visited company's Vijayanagar plant and reaffirmed its belief in the value the stock offers.
It expects EBITDA per tonne to remain in excess of Rs 11,000.
The rupee depreciated by 5 paise to 71.73 on the forex market as the American currency strengthened, while the domestic equity market traded marginally higher.
Forex traders said strengthening of the US dollar against some currencies overseas and caution ahead of RBI central board meeting under new Governor Shaktikanta Das, weighed on the local unit.
On Thursday the rupee appreciated by 33 paise to 71.68 per US dollar.
Infosys Announces Joint Venture with Hitachi, Panasonic and Pasona in Japan
Infosys announced the formation of a joint venture with Hitachi Ltd., Panasonic Corporation and Pasona Inc, strategically enhancing its presence in Japan.
Executing on its strategy to help clients navigate their digital journey, the entity formed by complementary, iconic companies coming together, will accelerate business process transformation leveraging digital procurement platforms for the local and global needs of Japanese corporations, the IT firm said.
Infosys will acquire 81 percent of the shareholding in Hitachi Procurement Service Co., Ltd., Hitachi’s fully owned subsidiary that currently handles indirect materials purchasing functions for the Hitachi Group. Hitachi, Panasonic and Pasona will be minority shareholders of the entity.
Asian Markets Under Pressure
Asian markets fell, putting the region on course to end a broadly positive week on a sour note, as traders took a step back and their profits off the table.
There was also some unease after the head of the European Central Bank raised concerns about the growth outlook for the eurozone owing to issues within and outside the bloc.
Japan's Nikkei, Hong Kong's Hang Seng and South Korea's Kospi were down over a percent while China's Shanghai Composite slipped half a percent.
Benchmark indices continued to consolidate in morning, which was on expected lines said technical analysts.
The 30-share BSE Sensex rose 14.52 points to 35,944.16 and the 50-share NSE Nifty gained 1.50 points at 10,793.
The market breadth was in favour of bulls as about 780 shares advanced against 661 declining shares on the BSE.
Motherson Sumi Systems rallied nearly 7 percent after a media report indicated that the company is in talks to acquire German-based company.
"India’s leading auto ancillary company is in talks to acquire or merge with Germanybased Leoni, the largest maker of special automotive cable globally," The Economic Times said quoting two people familiar to development.
Leoni is listed on German exchange and has a market capitalisation of 1.03 billion euro. The Nuremberg-headquartered company manufactures wire systems, electric power distribution, modular cable harnesses, and battery cables.
Its products are well placed to tap new opportunity for electric mobility and autonomous driving, the report said.
Benchmark indices opened flat but immediately lost ground to trade lower on the back of profit booking. The Nifty rallied nearly 500 points in previous three consecutive sessions.
The Sensex was down 107.07 points at 35,822.57 and the Nifty slipped 33.20 points to 10,758.30.
UltraTech Cement, Bharti Airtel, Asian Paints, IOC and ICICI Bank were early gainers.
Bajaj Finance, IndusInd Bank, Bajaj Finserv, Yes Bank, Indiabulls Housing Finance, BPCL, Hero MotoCorp, Reliance Industries, Hindalco, Vedanta and Tata Steel were early losers.
Nifty Midcap index was down 63 points.
IEX, IDBI Bank, IOB, Dena Bank, Corporation Bank, UCO Bank, Allahabad Bank, Bank of India and OBC gained.
JSPL, Jet Airways, South Indian Bank, Federal Bank and Max India were under pressure.
JP Morgan Downgrades HUL
Global research firm JP Morgan has downgraded FMCG major Hindustan Unilever to neutral from overweight and also slashed target price to Rs 1,910, implying 3 percent potential upside.
"It has been a great stock but time for a breather," it said.
HUL shares, so far, rallied 35 percent in the current calendar year on better earnings in Q2 and hope of growth in consumption sector ahead of general elections 2019.
JP Morgan sees limited scope for earnings upgrades as margin gain assumptions are leaving little margin of safety.
Market at pre-open: Benchmark indices are flat in the pre-opening trade with Nifty trading above 10,800 level.
At 09:01 hrs IST, the Sensex is down 2.87 points or 0.01% at 35926.77, and the Nifty up 14.40 points or 0.13% at 10805.90.
HCL Tech down 2 percent in the pre-opening trade as JP Morgan has downgraded the stock to neutral from overweight. However, IOC, UCO Bnak, HDFC are trading higher.
Asian markets trade lower: Asian shares were on the defensive on Friday as investors kept a wary eye on economic tensions between Washington and Beijing while the euro was steady after the European Central Bank halted new bond purchases as expected.
Wall Street ends flat: The S&P 500 finished little changed after a volatile session on Thursday, as investors continued to be spooked by uncertainty on both domestic and international issues, driving up bids for defensive shares while financials and consumer discretionary stocks were the biggest drags.
SGX Nifty: Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 66.50 points or 0.61 percent. Nifty futures were trading around 10,759.50-level on the Singaporean Exchange.