Nifty Bank snaps 3-day losing streak, Sensex gains 406 points

27 Dec 2016

3:30 pm Market closing: The market has ended with strong gains. All sectoral indices close with gains  of over 1 percent as FMCG, metals lead the chart. The Sensex was up 406.34 points or 1.6 percent at 26213.44, and the Nifty up 124.60 points or 1.6 percent at 8032.85. About 1679 shares advanced, 862 shares declined, and 193 shares were unchanged. The Nifty Bank snapped 3-day losing streak, closed with gains of over 1.2 percent.

3:00 pm Fund raising: JSW Energy said its board has given nod to raise funds up to Rs 750 crore through issuance of redeemable non-convertible debentures by way of private placement.

The issue proceeds would be used for the general corporate purposes, business operations, working capital and repayment of existing debt, the Sajjan Jindal-led company said in a BSE filing.

"The board (which met today) has approved the raising of funds up to Rs 750 crore through issuance of redeemable non-convertible debentures by way of private placement," the regulatory filing said.

2:45 pm Market extends gains: The Sensex is up 302.94 points or 1.2 percent at 26110.04, and the Nifty is up 92.65 points or 1.2 pecent at 8000.90.
About 1579 shares have advanced, 888 shares declined, and 164 shares are unchanged. ITC, Lupin, Tata Steel, Adani Ports and Cipla are gainers while only GAIL and HDFC are losers in the Sensex.

2:30 pm Market outlook: A number of global fund managers say they are buying emerging market assets for 2017 after the beating the sector has taken since the US election in November, even though credit rating agencies have a less positive outlook. Since the election of Donald Trump as US president, emerging market stocks are down nearly 7.0 percent, based on the Morgan Stanley Capital Index, and the yield spread of emerging market bonds over benchmark US Treasuries is wider by 10 basis points, reversing some of the gains seen earlier in the year.

On November 8, the date of the US election, the EMBI Global year-to-date total return was 14.04 percent, and a week later, on November 14, it had halved to 7.60 percent.

The market continues to gain with the Sensex up 222.88 points or 0.9 percent at 26029.98. The Nifty is up 67.45 points or 0.8 percent at 7975.70. About 1463 shares have advanced, 920 shares declined, and 185 shares are unchanged.

Cigarette stocks are rallying with ITC up 3 percent. Tata Steel, Adani Ports, Lupin and Cipla are other gainers while GAIL, Hero MotoCorp, HDFC, Bharti Airtel and ONGC are losers in the Sensex.
 European stocks were mildly higher amid thin volumes during the holiday period in the region. The German DAX was up 0.16 percent, while the French CAC was trading 0.7 percent higher. London's FTSE 100 is closed for a public holiday.

European trade followed the muted session in Asia where low volumes have sent shares mildly higher.

In the U.S. on Friday, equity markets closed mostly flat on Friday ahead of the Christmas holiday, as the Dow Jones industrial average failed again to reach the psychologically important level of 20,000.

1:30 pm European market: European stocks opened mildly higher on Tuesday amid thin trading volumes during the holiday period in the region. The German DAX was up 0.18 percent, while the French CAC was trading 0.17 percent higher. London's FTSE 100 is closed.

European trade followed the muted session in Asia where low volumes have sent shares mildly higher.

In the US on Friday, equity markets closed mostly flat on Friday ahead of the Christmas holiday, as the Dow Jones industrial average failed again to reach the psychologically important level of 20,000.

The market is rising with the Sensex up 192.57 points or 0.7 percent at 25999.67. The Nifty is up 55.20 points or 0.7 percent at 7963.45. About 1430 shares have advanced, 921 shares declined, and 181 shares are unchanged.

ITC, Adani Ports, Tata Steel, Lupin and Cipla are top gainers while GAIL, Hero MotoCorp, ONGC, HDFC and Bharti Airtel are losers in the Sensex.

Meanwhile, speaking to CNBC-TV18 Aliff Fazelbhoy, Senior Partner at ALMT Legal, said that the PM's speech over the weekend on tax was uncalled-for. It creates uncertainty and we don't know what they have in mind. ''I don't know what the PM has in mind. FM's comments are wishy-washy.''

He mentioned that the obvious thing would be to increase the STT marginally, but to my mind they shouldn't do anything, he added.

If capital gains tax, currently at 15 percent, is hiked up to 20 percent it is going to disturb the FPIs, he said.

12:30 pm Buzzing: Shares of Saksoft has locked at 20 percent upper circuit as it is going to acquire majority stake in DreamOrbit Softech. The company has signed an agreement to acquire majority stake (60 percent) in Bengaluru based DreamOrbit Softech. With this acquisition, the company will further strengthen its offerings in the digital space with special emphasis on IoT (Internet of Things). DreamOrbit, incorporated in 2010, has been providing specialist technology solutions for the logistics & transportation (including air, land & ocean) enterprises and has offices in Bengaluru (India) and Delaware (USA).

The market has managed to sustain its early gains while FMCG and oil & gas stocks are also rallying. The Sensex is up 114.01 points or 0.4 percent at 25921.11 and the Nifty is up 35.85 points or 0.4 percent at 7944.10. About 1335 shares have advanced, 867 shares declined, and 159 shares are unchanged.

ITC,  Adani Ports, Cipla, TCS and Tata Steel are top gainers while GAIL, Hero MotoCorp, HDFC, Bharti Airtel and HUL are losers in the Sensex.

A number of global fund managers say they are buying emerging market assets for 2017 after the beating the sector has taken since the US election in November, even though credit rating agencies have a less positive outlook.

Since the election of Donald Trump as US president, emerging market stocks are down nearly 7.0 percent, based on the Morgan Stanley Capital Index, and the yield spread of emerging market bonds over benchmark US Treasuries is wider by 10 basis points, reversing some of the gains seen earlier in the year.

On November 8, the date of the US election, the EMBI Global year-to-date total return was 14.04 percent, and a week later, on November 14, it had halved to 7.60 percent.

11:55 am Market view: India is been singled out by investors because of the outflows seen in recent time, believes Rajat Rajgarhia, MD – Institutional Equities at Motilal Oswal Securities.

There is an imminent fear in the market on the back of a slowdown in corporate earnings and economic growth. Market could revisit the 7700 levels, he said.

However, Rajgarhia believes that demonetisation will bring informal industries into the formal system and financial system, too, is expected to become stronger.

Market with a cash component will suffer. Some companies - like HDFC, Infosys and L&T – always come through issues, he said adding that they could be used to hide in the current situation.

11:30 am Outlook: The demonetisation pain is likely to last till the end of current financial year, believes Leo Puri, MD of UTI Asset Management. The pain has already started easing with improvement in note printing. Speaking to CNBC-TV18's Latha Venkatesh, Puri said demonetisation will be very good for the market in medium term. Benefits in relation to expansion of tax base will start coming in next fiscal. While 2016 has been a year of uncertainties, 2017 will bring realignment to the world. Even with foreign investors withdrawing from India, domestic investors have not dried up yet. Puri expects analysts to once again turn overweight on India by middle of next year.

The market continues to make gains with the Nifty reclaiming 7950. The 50-share index is up 35.15 points or 0.4 percent at 7943.40. The Sensex is up 105.53 points or 0.4 percent at 25912.63. About 1284 shares have advanced, 759 shares declined, and 144 shares are unchanged.

Both IT and Pharma indices are up over 1 percent. Cipla, Lupin, M&M, TCS and Adani Ports are top gainers while Bharti, HDFC, Hero and GAIL are losers in the Sensex.

Gold prices rose Rs 100 to Rs 27,001 per 10 grams in futures trade today as speculators created fresh positions, taking positive cues from global markets.

Market analysts said rise in the precious metal at the
global market mainly influenced gold prices at futures trade here.Meanwhile, gold climbed as much as 0.74 percent to USD 1,136.70 an ounce in Singapore today.

10:55 am Interview: Speaking to CNBC-TV18 Seshagiri Rao, Joint MD & Group CFO at JSW Steel said that the company will see an impact due to higher coking coal prices in the coming quarter.

Coking coal prices have more than doubled from August 2016.

Domestic steel costs are at an 18 percent discount as compared to international prices. He expects domestic steel prices to go up in the first quarter of calendar year 2017.

Expect further pressure on EBITDA per tonne from the Rs 7,000/ tonne level in the second quarter of FY16, he said.

10:45 am Market outlook: India currently is been singled out by investors because of the outflows seen in recent time, believes Rajat Rajgarhia, MD – Institutional Equities at Motilal Oswal Securities. There is an imminent fear in the market on the back of a slowdown in corporate earnings and economic growth. Market could revisit the 7700 levels, he said. However, Rajgarhia believes that demonetisation will bring informal industries into the formal system and financial system, too, is expected to become stronger. Market with a cash component will suffer. Some companies - like HDFC, Infosys and L&T – always come through issues, he said adding that they could be used to hide in the current situation.

10:30 am Exclusive: Sources tell CNBC-TV18 that SEBI has begun interim investigations into the beleaguered Tree House . The market regulator will be probing into alleged questionable accounting practice of the playgroup chain in the last two-three days. It will also be seeking audit and accounting statements pertaining to the last 3-4 years of the company. Sources further add that if required, SEBI officials will ask for statements for the last 5-6 years. Zee Learn had recently informed the exchanges that they have called off their proposed merger with Tree House Education after news broke about Tree House shutting 113 branches due to fund crunch. In August, Tree House and Zee Learn revised the terms of their merger. Both companies were in talks for a deal as early as December 2015.

The market is still in green on support from few index heavyweights. The Sensex is up 59.45 points or 0.2 percent at 25866.55, and the Nifty up 15.90 points or 0.2 percent at 7924.15. About 830 shares have advanced, 870 shares declined, and 100 shares are unchanged.

Cipla, Sun Pharma, Adani Ports, Lupin and TCS are top gainers whule Bharti Airtel, Hero, GAIL, Maruti and Bajaj Auto are losers in the Sensex.

US oil prices extended gains on Tuesday in post-Christmas trading, as OPEC and non-OPEC members are set to start curbing output in less than a week to support oil prices.

Oil has been supported in the past several weeks as the Organization of Petroleum Exporting Countries and non-OPEC members have agreed to lower output by almost 1.8 million barrels per day (bpd) from Jan. 1.

Libya's oil production rose slightly to 622,000 barrels a day (bpd) on Monday, as an armed faction agreed to lift a two-year blockade on major western pipelines, the National Oil Corporation said. It said it could add 270,000 bpd within three months.

9:55 am Demonetisation: Finance Minister Arun Jaitley took stock of the ongoing demonetisation drive at a meeting attended by IBA chief and heads of key bankers including State Bank of India and Punjab National Bank.

The meeting assumes significance as restrictions imposed by the government on currency withdrawal is coming to an end on December 30, which is also the last date for deposit of old currency notes.

It is also believed that meeting discussed issues impact on lending activity, bad loans and earning.

Besides, issue of diversion of cash from banks and other irregularities is also believed to have discussed.

9:45 am Exclusive: Sources tell CNBC-TV18 that SEBI has begun interim investigations into the beleaguered Tree House. The market regulator will be probing into alleged questionable accounting practice of the playgroup chain in the last two-three days.

It will also be seeking audit and accounting statements pertaining to the last 3-4 years of the company. Sources further add that if required, SEBI officials will ask for statements for the last 5-6 years.

Zee Learn had recently informed the exchanges that they have called off their proposed merger with Tree House Education after news broke about Tree House shutting 113 branches due to fund crunch.

9:30 am Interview: In a relief to farmers hit by demonetisation, the Reserve Bank on December 26 gave an additional 60 days to repay their crop loans due in November-December and said that prompt repayment would be eligible for the extra 3 percent interest subsidy.

Dinesh Kumar Khara, Managing Director & Group Executive (Associates & Subsidiaries), State Bank of India said the grace period is a relief for farmers who had problems selling their crop post demonetisation and from the bank's point of view, around 5 lakh farmers would benefit from this extension scheme.

He said the small and medium enterprises prefer to avail the cash credit facility more than loans which have to be repaid on a particular date.

After a tumultous ride, the market has opened in green on Tuesday. The Sensex is up 71.46 points or 0.3 percent at 25878.56, and the Nifty up 18.15 points or 0.2 percent at 7926.40. About 404 shares have advanced, 263 shares declined, and 27 shares are unchanged.

Tata Steel, ITC, Cipla, Adani Ports and ONGC are gainers while Hero MotoCorp, Axis Bank, Wipro, M&M and Dr Reddy's Labs are losers in the Sensex.

The Indian rupee slipped in the early trade on Tuesday. It has opened lower by 10 paise at 67.84 per dollar versus 67.74 Monday. Ashutosh Raina of HDFC Bank said, "The year-end markets are very low on liquidity and continue to trade in a tight range with the dollar index hovering around 103 levels."

The dollar index held steady around the 103 mark, also Iranian rial hits record low against US dollar in a sign of concern about the country's ability to attract foreign money after US president-elect Donald Trump takes office.

Asian stocks were little changed on Tuesday, in thin trade and with little to guide them as most major markets were closed on Monday for Christmas holidays.

MSCI's broadest index of Asia-Pacific shares outside Japan was flat, with Australia closed.  The US market was shut yesterday, so no cues to watch out from there.

The 10-year US Treasury yield was up 0.15 percent on Tuesday, after slipping 0.5 percent on Monday.