Nifty ends above 8500, Sensex in red; SBI, Wipro gainers

07 Jul 2015

03:30 pm Market closing: The market ended marginally lower after consolidation. The Sensex was down 37.07 points at 28171.69 and the Nifty slipped 11.35 points at 8510.80. About 1670 shares advanced, 1153 shares declined, and 157 shares were unchanged.

Vedanta, NTPC, Hindalco, Hero Motocorp and ONGC were major laggards while Coal India, HDFC, SBI, Wipro and Sun Pharma were top gainers in the Sensex.

03:10 pm Asian Markets: Chinese stocks fell on Tuesday, taking little comfort from a slew of support measures unleashed by Beijing in recent days, and unnerved by Chinese Premier Li Keqiang's failure to mention the market chaos in a statement on the economy.

Before the market opened, Li said in comments posted on a government website that China had the confidence and ability to deal with challenges faced by its economy, but had nothing to say on the three-week plunge that has knocked around 30 percent off Chinese shares since mid-June.

02:55 pm Market Update: The Sensex fell 47.93 points to 28160.83 and the Nifty declined 11.65 points to 8510.50. About 1588 shares have advanced, 1161 shares declined, and 149 shares are unchanged on the BSE.

02:45 pm Another rate cut possible?: Inflation has come down and the fiscal condition is much better, but macro conditions have not changed significantly since the June 2 monetary policy for the Reserve Bank to cut rates further. That's the message coming from RBI deputy governor Urjit Patel. He says it's the CPI number which will influence any further action from the central bank.

"Our stance has not changed since our last policy statement, that you know as we go forward this decision will essentially be data dependent and we will see how the path of CPI inflation pans out over the short and medium term and then take a decision accordingly regarding the interest rate," he says.

On the positive side, he says India is on a fiscal consolidation path. The external situation in terms of funding the current account deficit should not be a problem, he adds. "So all these things suggest that the growth pick up will be supportive and we will be at a better place compared to the past," he adds.

02:30 pm Gainers & Losers: Shares of Reliance Industries, Lupin, NTPC, Vedanta, Hero Motocorp and Hindalco Industries fell 1-2.5 percent. However, HDFC and Coal India topped the buying list, up 1.7 percent and 2 percent, respectively.

Granules India, Kotak Mahindra Bank, Wockhardt, L&T Finance, Jet Airways, SBI, HPCL and Axis Bank are the most active shares on exchanges.

In the midcap space, Relaxo Footwear, Jet Airways, Mcleod Russel, Cox & Kings and Monsanto India rallied 6-9 percent. Smallcap stocks like Zodiac Clothing, Kwality, Jayshree Tea, Sagar Cement and Oriental Hotels surged 15-20 percent.

02:20 pm Market Expert: Manpreet Gill, Senior Investment Strategist, Standard Chartered, says the Indian equity market should be prepared for some volatility in the upcoming days.

"We are approaching that end game much more closely and that end game has potential to cause at least a few jitters," he says.

02:00 pm Market Check
The market erased gains in afternoon trade, dragged by oil & gas, FMCG, capital goods and metals stocks. The Sensex fell 37.49 points to 28171.27 and the Nifty declined 11.45 points to 8510.70. However, the broader markets continued to outperform benchmarks.

The BSE Midcap and Smallcap indices gained more than 0.4 percent. About 1620 shares have advanced, 1077 shares declined, and 157 shares are unchanged on the BSE.

Snapping a two-day rising run, gold prices fell by Rs 70 to Rs 26,500 per ten grams at the bullion market in the national capital owing to slackened demand at prevailing levels amid a weak global trend. Silver, however, ended steady at Rs 36,000 per kg on scattered demand from consuming industrial units.

1:50 pm Loan decline: Declining borrowing costs, improving employment outlook and availability of affordable housing projects are encouraging prospective home buyers to purchase new properties in 2015, a survey has said.

According to a report by ZyFin Research titled 'New Home Purchase Sentiment Index', the regulatory changes including the recent Cabinet approval to the Real Estate Bill (Regulation and Development) are also expected to boost home buyers' sentiment further.

The macro-analytics firm said the sentiment is gradually becoming conducive for home buyers this year compared to 2014.

There has been a significant rise in sentiment as the index stands at 43.9 in June this year compared with 30.7 in the same period in 2014.

1:30 pm  Market outlook: Private sector banks are likely to report a steady set of earnings for the June quarter, while infrastructure and capital goods companies may log tepid growth, Nirmal Jain, Chairman and Managing Director of IIFL told CNBC-TV18. He said the market appeared good from a medium to long term perspective and that reforms and the investment cycle recovery would be the important triggers. The Indian market had already discounted Greece and fears of a 'risk off' in emerging markets due to the events in Greece were exaggerated, he said.

The market is holding its gains well. The Sensex is up 64.27 points or 0.2 percent at 28273.03, and the Nifty is up 20.80 points or 0.2 percent at 8542.95. About 1654 shares have advanced, 909 shares declined, and 149 shares are unchanged.

Coal India, HDFC, Wipro, Sun Pharma and Axis Bank are top gainers while NTPC, Vedanta, Hero Motocorp, Hindalco and HUL are among laggards in the Sensex. Jet Airways and Spice Jet are up 6-9 percent on the back of falling crude prices.

Falling crude prices is positive not only for specific sectors, but also for the overall economy, Sachin Shah, fund manager at Emkay Investment Managers said. However, Shah said the bigger challenge is subdued demand in last two quarters and low expectations of a pick up.

Meanwhile, Greece faces a last chance to stay in the euro zone when Prime Minister Alexis Tsipras puts proposals to an emergency euro zone summit after Greek voters resoundingly rejected the austerity terms of a defunct bailout. With Greek banks rapidly running out of cash and the European Central Bank slowly tightening the noose on their funding, Tsipras must persuade the bloc's other 18 leaders, many of whom are exasperated after five years of Greek crisis, to open rapid negotiations for a major new loan to rescue his country.

12:58 pm Market Update: The Sensex rose 59.80 points to 28268.56 and the Nifty gained 20.75 points at 8542.90. About 1655 shares have advanced, 907 shares declined, and 142 shares are unchanged on the BSE.

12:45 pm L&T in focus: Brokerages have maintained buy rating on Larsen & Toubro (L&T), the country's largest engineering and construction company, citing strong order inflow in April-June quarter and likely revival in current financial year 2014-15.

CLSA said the stock offers a strong EPS CAGR of 23 percent over FY15-18CL led by pick-up in engineering & construction execution and reduction in losses from its subsidiaries. L&T offers a good proxy on capex revival and a play on multi-fold expansion in its defense, nuke and aerospace (DNA) domains, it added.

L&T's order inflows picked-up in June 2015 with Q1 announced orders of Rs 15,500 crore (+30 percent Y-o-Y) led by strong inflows in transmission and distribution (29 percent of total inflows) domain. Additionally, the top two orders came from higher margin businesses of domestic upstream oil & gas and buildings & factories.

A pick-up in capex by Indian government companies / agencies coupled with pick in orders from Middle East led to 30 percent Y-o-Y increase in order inflows (announced) in Q1FY16. "We note that this 30 percent Y-o-Y growth is coming on a lower base of announced orders in Q1FY15 (around 40 percent orders were announced), so if this ratio moves higher in the current quarter then reported new orders growth may be lower," said the brokerage in its note.

12:30 pm Electrosteel Steels in focus: CNBC-TV18 has learnt that promoters of Electrosteel Steels may lose control over the company.

Kolkata-based Electrosteel Steels went into corporate debt restructuring (CDR) in 2013 when it ran into financial difficulties and has since not been able to fully recover. Over Rs. 6,000 crore of Electrosteel Steel's debt was restructured under CDR in 2013, and that debt has since ballooned to Rs 8,500 crore.

CNBC-TV18 has learnt that the 27 lenders that have an exposure to the steel maker may take the Strategic Debt Restructuring or SDR route to recover their money. The Joint Lenders Forum (JLF) formed by banks is headed by State Bank of India, which alone holds about 20 percent of the entire debt.

Electrosteel Steel is promoted by Electrosteel Castings, which is an Umang Kejriwal controlled company. According to a filing by the company to the exchanges, the promoter group holds 45.23 percent stake Electrosteel Steels, as of March 2015.

Once the JLF converts debt into equity and acquires majority control of the company, lenders will have to bring in a new strategic investor to take over the company from its promoters.

CNBC-TV18 learns that lenders have already received proposals from four such potential buyers, and are in the process of finalizing one.

12:00 pm Market Check
The market continued to see marginal gains in noon trade with the Nifty retaining 8500 level as a support. The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.8 percent each.

The Sensex gained 69.09 points at 28277.85 and the Nifty climbed 20.60 points to 8542.75. More than two shares advanced for every share declining on the Bombay Stock Exchange.

Global markets are mixed Pressure mounted on Greece as Prime Minister Alexis Tspipras is expected to present fresh proposals for a deal. Eurozone leaders will meet in Brussels today.

In Asia, Shanghai index tumbled over 2 percent despite rescue measures taken to stabilise the market. Rest of Asia is mixed in today's trade.

An open offer may be on the cards for L&T Finance Holdings. The stock surged 8 percent after CNBC-TV18 learnt that Warburg Pincus is likely to acquire 25 percent stake in the financial services arm.

Paint stocks moved higher tracking a sharp fall in crude oil prices. Analysts believe margin will get improved for paint companies as crude oil constitutes a significant cost for most of these companies. Asian Paints, Shalimar Paints and Berger Paints climbed more than 3 percent. Kansai Nerolac rallied 7 percent.

11:50 am Take on rupee:  The crisis in Greece is unlikely to influence the US Federal Reserve's decision on interest rates, feels Nizam Idris of Macquarie. Global financial markets are speculating that the Fed may hike interest rates in September or December depending on the pace of recovery in the US economy.

Idris says the rupee may trade in a range of 63.0-63.50 to the dollar near term. He says the rupee is being helped by both local and global factors, with falling commodity prices being an important support.

Idris says the RBI's decision to restate foreign investment will be an added boost.

11:30 am Buzzing: Shares of Sobha Developers rose over 5 percent intraday on improving sales. The real estate developer has reported April-June quarter pre-sales at Rs 500 crore, up 5 percent year-on-year. After a sluggish 2014, its pre-sales trends have improved over the last two quarters driven by the company's middle-income housing project launch Dream Acres in Bangalore. Non-Bangalore market performance is muted.

JP Morgan says that Sobha Developers' FY16 pre-sales guidance of Rs 2600 crore is achievable as launch activity scales up with an additional phase of its Bangalore affordable project and a new project in Chennai.

The market is steady as the Nifty is comfortably holding 8500-mark. The 50-share index is up 22.35 points or 0.3 percent at 8544.50. The Sensex is up 74.56 points or 0.3 percent at 28283.32. About 1664 shares have advanced, 571 shares declined, and 111 shares are unchanged.

Bank, IT, metal stocks are supporting benchmark indices. Coal India, HDFC, Wipro, SBI and Axis Bank are top gainers in the Sensex. Among the losers are NTPC, HUL, Hindalco, Reliance and Hero Motocorp.

Oil rebounded in Asia on bargain-hunting after prices plunged a day earlier as Greek defiance against austerity measures imposed by its creditors sparked turbulence in global markets.

Prices rose ahead of an emergency summit on Greece by eurozone leaders in Brussels on Tuesday, after Greek citizens overwhelmingly rejected creditors' demands for further belt-tightening in a referendum.

Gold futures prices today fell by 0.35 percent to Rs 26,235 per 10 grams as speculators offloaded their positions amid a weak global trend. Market analysts said the fall in gold futures was mostly attributed to trimming of positions by speculators, tracking a weak trend overseas.

10:35 am IRB Infrastructure in News: Shares of IRB Infrastructure Developers rallied 3.5 percent on receiving letter of award for Agra-Etawah bypass project from NHAI.   The road developer said it has received letter of award from NHAI for the project of six laning of Agra-Etawah Bypass section of NH-2 in the State of Uttar Pradesh under NHDP Phase-V on BOT mode.

The estimated project cost of the company is approximately Rs 2,650 crore with construction period of 910 days. The concession period for the same is 24 years, it added.

With this Project, IRB's construction order book increased to Rs 10,770 crore, which will be executed in the next three to four years. This will boost the company's visibility for next three to four year, it said in its filing.

10:15 am Oil Update: Oil rebounded in Asia today on bargain-hunting after prices plunged a day earlier as Greek defiance against austerity measures imposed by its creditors sparked turbulence in global markets.

Prices rose ahead of an emergency summit on Greece by eurozone leaders in Brussels on Tuesday, after Greek citizens overwhelmingly rejected creditors' demands for further belt-tightening in a referendum.

US benchmark West Texas Intermediate for August delivery advanced 47 cents to USD 53.00 in late-morning Asian trade after plummeting nearly 8.0 percent, or USD 4.43, in US closing deals yesterday.

Brent crude for August gained 69 cents to USD 57.23 after retreating more than 6.0 percent, or USD 3.78, in London.

10:00 am Market Check
The market entered into consolidation mode after pricing in Greece crisis. The near term key trigger for the market would be April-June quarter earnings and monsoon.

The Sensex rose 43.93 points to 28252.69 and the Nifty advanced 16.15 points to 8538.30. The broader markets outperformed benchmarks; the BSE Midcap and Smallcap indices gained 0.6 percent and 0.9 percent, respectively.

The market breadth remained positive as about 1398 shares have advanced against 465 shares declined on the Bombay Stock Exchange.

HDFC, Wipro and Coal India topped the buying list on Sensex, up 1-2 percent followed by ICICI Bank, Infosys, State Bank of India, Axis Bank and M&M with marginal gains. However, Reliance Industries, HUL, Lupin, Tata Motors, ITC, NTPC and ONGC declined 0.2-1 percent.

9:50 am FII view: It is tough to find direct channels of contagion arising out of the debt crisis in Greece, as the international banking system does not have a big exposure to Greek debt, says Ray Farris of Credit Suisse.

But other softer problems remain, says Farris in an interview.

Nobody thought the bankruptcy of Lehman Brothers in 2008 would eventually cause the global financial crisis, Farris says.

"Greece exitting the Eurozone may not be a big deal. But if markets respond poorly to pricing of similar risks for countries like Portugal, Spain Ireland over a period of time, there could be a problem," Farris says.

9:30 am Greece to hit rupee? The government is "very closely" monitoring the developments in Greece as that could have implications on the international currency market, Commerce and Industry Minister Nirmala Sitharaman said. "I think the Greece affair is going to play out for a few more days and we will certainly have to watch that...India's foreign exchange reserves are comfortable. The RBI and the government are very closely monitoring the developments. I think we have to be alert and keep watching what is happening," Sitharaman said.

After a massive rally in late trade yesterday, the market has opened with gains on Tuesday. The Sensex is up 85.75 points or 0.3 percent at 28294.51 and the Nifty is up 28.55 points or 0.3 percent at 8550.70. About 657 shares have advanced, 107 shares declined, and 59 shares are unchanged.

HDFC, Tata Steel Wipro, Cipla and Coal India are top gainers in the Sensex. Among the losers are Hindalco, Dr Reddy's Labs, Reliance, NTPC and ONGC. Asian Paints, BPCL are top Nifty gainers on weak crude prices.

Crude tumbled over 7 percent overnight amid the Iran nuclear deal negotiations, the Greece debt drama and volatility in Chinese stocks.

Nymex crude fell more than 7 percent to USD 52 per barrel after Greece's rejection of debt bailout and China rolling out emergency measures to support its stock market. Brent crude fell 6.3 percent to USD 56.50/bbl, below 100 DMA, biggest slide in last three months.

Adding to the pressure on oil markets, Iran and global powers were trying to meet a July 7 deadline on a nuclear deal, which could add more oil to oversupplied markets if sanctions on Iran are eased. The self-imposed deadline could be extended again, officials at the negotiations said.

Asian markets are mixed bag after the sharp knock yesterday. Nikkei has bounced back smartly though the yen is hovering sub 123. The Kospi has come off 0.7 percent from day's high while the rest of Asia is trading in the green.

US stocks closed mildly lower, recovering from sharp opening losses on selloff overseas, as traders shook off concerns of contagion from the Greece debt crisis. Bond yields held lower, with the 10-year yield near 2.30 percent.

In Europe, equities closed lower, after Greece voted "no" to reform proposals in the country's referendum on Sunday and the Greek finance minister Yanis Varoufakis resigned. Peripheral indices suffered the most, with Italy's FTSE closing around 4 percent lower.