Nifty ends tad below 2016-closing high ahead of Brexit votes
23 Jun 2016
3:30 pm Market closing: The Nifty ended tad below 2016 closing ahead of Brexit vote. The 50-share index is up 66.75 points or 0.8 percent at 8270.45. The Sensex was up 236.57 points or 0.9 percent at 27002.22. About 1093 shares have advanced, 1498 shares declined, and 183 shares are unchanged.
Tata Motors, Dr Reddy's Labs, SBI, HDFC Bank and Axis Bank were top gainers while NTPC, Cipla, TCS, Asian Paints and ONGC were losers in the Sensex.
2:59 pm Borrowings fall: India Inc raised USD 1.32 billion from overseas markets in May, down 45 percent from the same month a year ago, RBI data showed on June 23.
Indian companies had raised USD 2.39 billion from foreign markets in May 2015.
Of the total borrowings, that were carried both through external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs), USD 845.72 million were raised via approval process while rest of USD 472.69 million came through the automatic route.
Under the approval route, HDFC raised USD 375 million for on-lending, Reliance Industries USD 190.72 million for refinancing of earlier ECB, Adani Ports USD 150 million for port projects and Dewan Housing Finance Corp raised USD 130 million for on-lending.
2:50 pm Stocks to focus on ahead of Brexit vote outcome: Tata Motors, Tata Steel, Bharat Forge, Hindalco, Infosys, TCS and Tech Mahindra are the stocks that will get impacted by outcome of Britain's referendum.
According to reports, Indian IT companies get anywhere from 6-18 percent of their revenues from the UK. The UK has traditionally been the gateway for Indian IT firms to enter Europe and they have set up a large presence in the UK to serve the EU markets from their headquarters in London.
The United Kingdom is voting today on whether to remain in or leave the 28-nation European Union. Britain's exit from the bloc, widely described as 'Brexit', is being debated globally as such a development could have far reaching implications for the international financial markets, exchange rates and the world economy as a whole.
There are also fears that exit of Britain from the EU could trigger significant capital outflows, including that from the Indian market.
2:45 pm Market Update: Equity benchmarks rallied further in last hour of trade with the Sensex reclaiming 27000.
The index jumped 232.12 points or 0.87 percent to 26997.77 and the Nifty rose 64.80 points or 0.79 percent to 8268.50.
2:30 pm Buzzing: Shares of Reliance Communications gained more than 3 percent intraday. The rating agency has upgraded its outlook to stable from negative on the long term rating BBB+ of Reliance Telecom.
"ICRA has reaffirmed the long term rating at BBB+ (pronounced as ICRA triple B plus) for Rs 812 crore (earlier Rs 867 crore) long term fund based / non fund based bank facilities of Reliance Telecom (RTL). The outlook on the long term rating has been revised to stable from negative," the rating agency says in its report.
It has also reaffirmed short term rating at A2+ for Rs 784 crore (earlier Rs 729 crore) short-term fund-based/non-fund based limits and Rs 500 crore commercial paper programme of RTL.
In arriving at RTL's ratings ICRA has taken a consolidated view of the Reliance Communications (RCom) group including RTL and Reliance Infratel (RITL) and are based on the strong operational and ownership linkages with RCom.
RCom is the fourth largest telecom operator in the country (in terms of subscriber base) and the holding company for all the telecom operations of the group.
2:15 pm BSE's notice to cos: Leading stock exchange BSE has served final notice to as many as 428 companies to either apply for revocation of suspension or opt for delisting.
The securities of these firms have been under suspension for more than seven years on account of non-compliance with various clauses of listing regulations.
The exchange, which is considering compulsory delisting of these companies from its platform in a phased manner, has sent final communications to 428 firms advising them to initiate the process of revocation of suspension.
Prior to that, two separate written communications have already been sent to the companies at the latest address available with the exchange and also to the last known address as per the Ministry of Corporate Affairs' website.
2:00 pm Market Check
Equity benchmarks extended rally in afternoon trade with the Nifty climbing above 8250 level and the Sensex inching towards 27000 on strong upside European markets.
The Sensex gained 178.51 points or 0.67 percent at 26944.16 and the Nifty rose 50.20 points or 0.61 percent to 8253.90.
European stocks traded higher with investors remaining cautious as UK voters go to the polls for a referendum on European Union (EU) membership. France's CAC, Germany's DAX and Britain's FTSE were up 0.8 percent each.
ITC, HDFC Bank, Tata Motors, SBI, Sun Pharma, Lupin and Dr Reddy's Labs gained 1.5-3 percent while NTPC fell over 2.5 percent.
1:45 pm Oil: Oil prices rose in Asia, hours ahead of a high-stakes British vote on whether to remain in the European Union. As with financial markets, oil traders are closely watching the referendum as analysts warn that a British exit could see the country tumble into recession with global spillover effects. Markets tumbled last week after polls pointed to a win for the "leave" camp but they have rallied over the past four days as the pro-EU campaign has recovered momentum.
While most polls have the two sides neck and neck, bookmakers have the "remain" side as clear favourites.
1:30 pm Brexit & rupee: In an event of Brexit, gold will be key and may cross USD 1300 an ounce, said Jamal Mecklai, CEO, Mecklai Financial Services. Even if it is a remain vote, the Rajan effect will still post a downward pressure, he said.
Political uncertainity will trigger market volatility. Sterling will be hammered really hard, said Jane Foley, Rabobank International. "There will be a movement into risky assets immediately; stock markets will move higher, particularly emerging markets in an immediate aftermath of a remain vote."
The market is still sluggish as the Sensex is up 53.87 points or 0.2 percent at 26819.52. The Nifty up 13 points or 0.2 percent at 8216.70. About 951 shares have advanced, 1424 shares declined, and 166 shares are unchanged.
Tata Motors, Sun Pharma, Dr Reddy's Labs, SBI and Lupin are top gainers while NTPC, TCS, ONGC, Cipla and Tata Steel.
All the surveys are hinting towards a 'remain' result for UK in the UK referendum voting which will commence later today. There is an 80 percent chance of the UK staying in Europe, says Khoon Goh of ANZ Research.
If the UK stays, it will be a certain positive for risk assets. Global market has already priced in the 'remain' outcome and hence, sell-off in the US dollar will be limited while the rally in sterling will not be that significant, says Goh.
However, if the vote is to exit then that will be a big shock and risk-off moves will happen in market. In this scenario, sterling is expected to drop below 140 levels, says Goh.
12:59 pm Market Update: Equity benchmarks bounced back in afternoon trade. The Sensex rose 60.90 points to 26826.55 and the Nifty gained 13.90 points at 8217.60.
However, the market breadth remained negative as about 1412 shares declined against 927 advancing shares on BSE.
12:45 pm Europe opens: European stocks opened slightly higher with investors remaining cautious as U.K. voters go to the polls for a referendum on European Union (EU) membership.
The pan-European STOXX 600 was up 0.42 percent.
Markets appear cautiously optimistic ahead of the UK vote on EU membership, although opinion polls ahead of the vote wavered between giving the leave side and the remain side the lead.
However, the latest polls by ComRes, conducted for the Daily Mail newspaper and ITV television, and YouGov for The Times newspaper in London, showed a last-minute increase in the number of voters supporting the remain campaign.
12:40 pm Biocon in news: Biopharmaceutical firm Biocon today said the Drug Controller General of India (DCGI) has given nod to it and partner Quark Pharmaceuticals to proceed with clinical trials on human subjects for a new drug candidate, 'QPI-1007' aimed for ocular neuroprotection.
Biocon and Quark Pharmaceuticals also announced the randomisation of the first patient in India in the global Phase II/III study of the new drug candidate, the company said in a statement.
Randomisation is the allocation of subjects to treatment groups to prevent selection and accidental bias.
12:20 pm FII View: Market is not anticipating the UK leaving the European Union. However, if Brexit happens, then Indian market will correct 4-5 percent, says Prabhat Awasthi of Nomura Financial Advisory. India, he says, is aptly insulated.
This dip, in case of a Brexit happen, is a certain buying opportunity. Recovery in India is getting more broad-based. ''There will be a market impact and less of an economy impact,'' he says.
Awasthi expects the monsoon to aid to this growth and return of balance between urban and rural themes. Sensex is likely to touch 28,000-30,000 levels by December-end and 15-20 percent returns are expected, he says.
12:00 pm Market Check
The market remained directionless in noon trade as globally investors remained on edge ahead of the UK vote on whether to leave the European Union (EU).
The 30-share BSE Sensex fell 15.43 points to 26750.22 and the 50-share NSE Nifty declined 10 points to 8193.70. The market breadth remained negative as about 1419 shares declined against 793 advancing shares on Bombay Stock Exchange.
Shares of TCS, Reliance Industries, L&T, ICICI Bank, NTPC, Cipla and ONGC declined 1-3 percent while HDFC Bank, ITC, Tata Motors, Sun Pharma, Lupin and Dr Reddy's Labs gained 1 percent each.
Oil prices rose in Asian trading, shrugging off a smaller than expected decline in US stockpiles as the market waited with bated breath for the result of Britain's "Brexit" vote.
Brent crude futures were up 0.3 percent at USD 50.04 a barrel and US crude futures gained 0.3 percent at USD 49.28 a barrel.
11:45 am New listing: Control Print India has moved an inch closer to its listing day on NSE India, which is June 24.
"Our topline has increased 20 percent and costs have come down by 2 basis points as compared to the last fiscal year," said Rahul Khettry CFO of Control Print.
Market share of the company is currently at 18-19 percent levels and it aims to reach 25 percent mark in a couple of years' time, he added.
The company is also expanding its business in Nepal, Bangladesh and Colombo (Sri Lanka). The company is also focusing on strengthening its brand image, he added.
11:30 am Interview: Nothing really changes for the company if Brexit happens as the event will not impact the tourism industry, said Thomas Cook CMD Madhavan Menon.
Speaking to CNBC-TV18, Menon said though China, India and Hong Kong's outbound business struggled last year, the travel business excluding Quess Corp will do better due to Kuoni acquisition in FY17.
The company's forex and inbound businesses are largely doing well, which makes Menon expect this year's growth for the company to be on par with last year. He is of the view that the travelling company will remain invested in Quess from a long-term perspective.
The market looks jittery ahead of Brexit vote. The Sensex is down 15.52 points at 26750.13, and the Nifty is down 10.95 points at 8192.75. About 760 shares have advanced, 1312 shares declined, and 112 shares are unchanged.
Sun Pharma, Dr Reddy's Labs, Tata Motors, Lupin and ITC are top gainers in the Sensex. NTPC is down 3 percent while Cipla, ONGC, BHEL and TCS are losers in the Sensex.
Gold drifted lower by Rs 74 to Rs 30,048 per 10 grams in futures trade today as participants reduced their positions, largely in line with a weak trend
overseas.
Analysts said a weak trend in the overseas markets where gold dropped for a fourth straight day just before the start of Britain's referendum on its futures in the European Union, weighed on the precious metal in futures trade here. Globally, gold fell 0.06 percent to USD 1,265.20 an ounce in Singapore.
10:45 am Buzzing: Share prices of Natco Pharma rose 8 percent intraday on the back of tentative approval received from USFDA for Sorafenib tablets.
The company's marketing partner, Mylan Inc. has received a tentative approval for its abbreviated new drug application (ANDA) for Sorafenib tablets, 200mg, with the US Food and Drug Administration (USFDA).
This product is the generic version of Nexavar, which is indicated for the treatment of certain types of cancers including unresectable hepatocellular carcinoma and advanced renal cell carcinoma.
Natco manufactures this product at its facility in Kothur, Mahaboobnagar district, Telangana, India.
10:35 am Interview: Biocon has initiated phase II/III study of QPI-1007 to treat non-arteritic anterior ischemic optic neuropathy (NAION), a rare eye disease in India.
Speaking to CNBC-TV18, Kiran Mazamdar Shaw, CMD of the company said Biocon had entered into researching the drug for this disease a year ago and that early trials have indicated a positive data.
However, the drug won't enter the market before 2-3 years, she added.
10:15 am FII Views: Jeff Chowdhry of LGM Investments feels if Britain votes to leave the European Union, it would cause a sort of a ripple effect across both European stock markets and the European currency investors may move into the yen or gold or US dollar.
In an interview to CNBC-TV18, he says emerging markets too would be hit as investors turn risk averse.
''In the short-term and short-term means just a couple of days, I think yes because it would definitely be a surprise, one,'' he says.
''Secondly, it would mean risk-off and in a risk-off environment, EMs including India would be affected on sort of a short-term basis,'' he says.
The biggest casualty of a 'leave' vote would be the pound sterling and the UK stock market which could fall as much as 5-10 percent feels Chowdhry.
Chowdhry sees a relief rally across markets in the event of a 'stay' vote, but does not expect that to be as big as the magnitude of fall if the vote goes the other way.
10:00 am Market Check
Equity benchmarks continued to be directionless with the Nifty hovering around 8200 as investors remained cautious ahead of Britain's referendum tonight.
The Sensex fell 19.01 points to 26746.64 and the Nifty declined 5.65 points to 8198.05. The BSE Midcap and Smallcap indices slipped 0.3 percent each on weak market breadth.
About 1022 shares declined against 666 advancing shares on Bombay Stock Exchange.
Sun Pharma gained more than 2 percent ahead of board meeting to consider proposal of buyback of shares.
9:55 am Interview: Biocon has initiated phase II/III study of QPI-1007 to treat non-arteritic anterior ischemic optic neuropathy (NAION), a rare eye disease in India. Speaking to CNBC-TV18, Kiran Mazamdar Shaw, CMD of the company said Biocon had entered into researching the drug for this disease a year ago and that early trials have indicated a positive data.
However, the drug won't enter the market before 2-3 years, she added.
9:45 am FII view: Jeff Chowdhry of LGM Investments feels if Britain votes to leave the European Union, it would cause a sort of a ripple effect across both European stock markets and the European currency investors may move into the yen or gold or US dollar.
In an interview to CNBC-TV18, he says emerging markets too would be hit as investors turn risk averse.
''In the short-term and short-term means just a couple of days, I think yes because it would definitely be a surprise. Secondly, it would mean risk-off and in a risk-off environment, EMs including India would be affected on sort of a short-term basis,'' he says.
9:30 am New IPO: Varun Beverages, franchisee for soft drinks maker PepsiCo, today filed preliminary papers with Sebi for an IPO to raise over Rs 1,000 crore.
The IPO entails sale of up to 2.5 crore shares, including fresh issue of 1.5 crore shares and offloading of stake by promoters. The company has filed the draft red herring prospectus with the Securities and Exchange Board of India (Sebi), it said in a release.
Sources said Varun Beverages expects to raise more than Rs 1,000 crore through the initial public offer. Apart from fresh issue of 1.5 crore equity shares, there would be offer for sale of up to 5,000,000 shares each by Varun Jaipuria and Ravi Kant Jaipuria & Sons (HUF), the release said.
The market has opened flat ahead of ahead of the EU referendum Thursday. UK will vote to determine the future of Britain within the 28-member European Union. The Nifty's support is seen around 8,050-8,100 while resistance is likely around 2016 high of 8273.
The Sensex is down 3.27 points at 26762.38, and the Nifty down 3.85 points at 8199.85. About 415 shares have advanced, 271 shares declined, and 32 shares are unchanged.
Tata Motors, Lupin, Dr Reddy's Labs, Coal India and Sun Pharma are top gainers while NTPC, ONGC, HDFC Bank, Tata Steel and TCS are losers in the Sensex.
The Indian rupee opened marginally higher at 67.43 per dollar on Thursday versus previous close 67.48.
The pound climbed to a 2016 high, bringing higher-yielding currencies up with it as confidence mounted that the UK will vote to remain a member of the european union in Thursday's referendum.
Mohan Shenoi of Kotak Mahindra Bank said, "Global currency markets are expected to stay flat in a tight range a day prior to Brexit referendum. Markets are
currently expecting UK to vote for 'remain in EU'. However, a Brexit vote can cause volatility in currency markets particularly in EM currencies."
Among global markets, Asia were mixed in early trade, following losses in US stocks, as investors remained on edge ahead of the UK vote on whether to leave the European Union (EU). In Japan, the Nikkei 225 was up 0.24 percent, while across the Korean Strait, the Kospi was down 0.39 percent.
US stocks closed lower weighed by declines in energy stocks. The Dow Jones industrial average closed down 48.90 points, or 0.27 percent, at 17,780.83. The S&P 500 closed down 3.45 points, or 0.17 percent, at 2,085.45. The Nasdaq composite closed down 10.44 points, or 0.22 percent, at 4,833.32.
In other asset class, gold fell to a two-week low after its biggest one-day drop in four weeks, as expectations that Britain will vote to remain in the European Union reduced risk aversion.