Sensex ends up 184 points; Nifty, Midcap at record close; Yes Bank gains 5%

05 Jan 2018

3:30 pm Market Closing: Benchmark indices as well as Midcap ended at fresh record closing high on Friday.

The 30-share BSE Sensex rose 184.21 points to 34,153.85 and the 50-share NSE Nifty gained 54.10 points at 10,558.90.

About 1,714 shares advanced against 1,215 declining shares on the BSE.

3:20 pm Order Win: Infosys said it has been selected by Proximus, the largest telecommunications company in Belgium, to implement Excite – a business transformation program aimed at delivering superior digital customer experiences for its enterprise clients.

The multi-year program will strengthen Proximus' leadership in the professional services market by replacing legacy IT systems, streamlining processes and deploying advanced tools for quoting, selling, ordering, billing, invoicing and more, it added.

3:12 pm Market Update: Benchmark indices extended gains in late trade, with the Sensex rising 191.25 points to 34,160.89 and the 50-share NSE Nifty up 53.30 points at 10,558.10.

The rally may be on hope that the government may retain its fiscal deficit target.

3:10 pm RBI dividend: CNBC-TV18 reports quoting Cogencis that the Reserve Bank of India has given a green signal for extra dividend payment to government.

The government has sought Rs 13,000 crore additional dividend from RBI.

3:01 pm Acquisition: Pidilite Industries has approved investment in equity shares of CIPY Polyurethanes Pvt Ltd.

The proposed shareholding of company in CIPY post such investment will be 70 percent initially, thereby making CIPY a subsidiary of company, it said.

Incorporated in November 1994, CIPY is engaged in business of manufacture and sale of floor coatings using polyurethanes, epoxies, polyurea and polyaspartic polymers.

2:54 pm Buzzing: Idea Cellulars added 11 percent after CLSA upgraded the stock to buy from sell with a target of Rs 130 per share as Idea-Vodafone could see deleveraging of USD 5 billion in the run up to their merger.

2:50 pm Gold Trade: Reversing yesterday's slide, gold prices bounced back by Rs 135 to trade at over one-month high of Rs 30,500 per 10 grams at the bullion market today, largely driven by a firm trend overseas amid pick-up in buying by local jewellers.

Silver followed suit and recaptured the Rs 40,000-mark due to increased offtake by industrial units and coin makers.

Bullion traders attributed the recovery in gold prices to a firm trend overseas as the weakness in dollar which hit a four-month low boosted demand for the precious metal as a safe-haven.

2:40 pm Drug Launch: Drug major Lupin today said it has launched Flucytosine capsules, used to treat serious infections, in the American market.

The company has launched its generic product in the strengths of 250 mg and 500 mg after having received approval from the US Food and Drug Administration (USFDA), Lupin said in a regulatory filing.

The Mumbai-based company's product is the generic version of Valeant Pharmaceuticals International Inc's Ancobon tablets.

The drug is indicated for the treatment of serious infections.

2:30 pm PI Industries in focus: IDFC Securities has maintained its Outperform rating on PI Industries with increased price target at Rs 1,085 per share.

The research house expects the agrochemical company to bounce back to growth from the second half of the current financial year, led by new product launches and exports business.

In custom synthesis and manufacturing business, IDFC expects strong recovery.

Its robust orderbook provides revenue visibility for next three years and unique business model enables growth despite headwinds, the research house said.

IDFC expects revenue and net profit to grow at a compounded rate of 12 percent and 6 percent, respectively, over the financial years through March 2020.

2:27 pm Budget session of parliament will begin on January 29 and Union Budget for 2018 will be presented on February 1, 2018.

The last day for Budget session will be April 6.

2:21 pm Stake Buy: Shares of Lupin gained 2.3 percent intraday as investor Rakesh Jhunjhunwala has increased his stake in the company in the quarter ended December 2017.

Rakesh Jhunjhunwala has increased his stake in the company to 1.92 percent (86,98,605 equity shares) in the quarter ended December 2017 against 1.89 percent (85,48,105 equity shares) in September 2017.

2:11 pm Buyback: Orbit Exports informed exchanges that the board of directors has approved the buyback of up to 4,44,444 fully paid up equity shares by the company (representing 1.55 percent of the total paid-up equity share capital of the company) at a price of Rs 180 per share payable in cash for a total consideration not exceeding Rs 7,99,99,920.

1:56 pm Market Update: Benchmark indices continued to trade higher, with the Sensex rising 160.09 points to 34,129.73 and the Nifty gaining 42 points at 10,546.80.

About 1,639 shares advanced against 1,069 declining shares on the BSE.

1:40 pm Joint Venture: Dilip Buildcon said a new company has been incorporated named as 'DBL-VPR Mining Private Limited' for exploring sector of mining activities including but not limited to coal mining.

The said company has been incorporated as a subsidiary of Dilip Buildcon Limited.

The said company is jointly promoted by Dilip Buildcon Limited and M/s VPR Mining Infrastructure Private Limited, with equity participation of 74 percent and 26 percent, respectively, in the equity share capital of the said company.

1:20 pm Pharma Earnings Preview: The Indian pharma sector's December quarter revenue is estimated to remain flat, while profits are likely to slip owing to decline in US businesses and a sharp appreciation in rupee, says a report.

According to an Edelweiss Securities report, though the October-December quarter was "action packed", earnings are likely to remain muted.

"The pharma sector's Q3FY18 (October-December quarter) revenue is estimated to remain flat year-on-year, while EBITDA and PAT are likely to decline 15 percent and 19 percent, respectively," it noted.

The domestic brokerage firm said weak US business and INR appreciation against US dollar/Brazilian Real/Japanese Yen/ South African Rand are expected to drag earnings of Indian pharma companies.

"US revenue expected to decline 11 per cent year-on-year for the sector in constant currency (CC), as faster approvals, heightened competition and sustained pricing pressure to dent growth," it said.

1:01 pm Management Interview: The bank recapitalisation took a giant step forward yesterday when the parliament sanctioned its approval for Rs 80,000 crore of public sector undertaking (PSU) recap bonds. In an interview to CNBC-TV18, Dinabandhu Mohapatra, MD & CEO of Bank of India said the government will give capital based on performance.

He further said that we have provision coverage of 65 percent on non-performing assets (NPAs).

Government to give capital with regards to provisions made on NPA, return ratios and growth, he added.

Talking about business, he said gross NPA will be below 12 percent for FY18.

Common equity tier 1 (CET1) and net NPA will be improved for Bank of India in the immediate future and will show a quick turnaround, said Mohapatra.

12:45 pm Buzzing: Motherson Sumi Systems shares gained more than 2 percent intraday after the promoter company acquired MS Global India and research house IIFL upped its target price on the stock sharply to Rs 450 from Rs 300 earlier.

Samvardhana Motherson International (SAMIL), the promoter of Motherson Sumi Systems and the principal holding company of auto component supplier Samvardhana Motherson Group, on Thursday said it has acquired 100 percent of MS Global India Pvt Ltd from its Korea parent company MS Group.

"The acquisition of MS Global India will see SAMIL enter a new vertical - sheet metal parts with focus on hot stamping - a light weighting technology for high strength sheet metal parts. This technology augurs well towards the trend of light weighting of vehicles and will also find increased use in electronic vehicles," the company said in its statement.

MSGI is a Rs 3,500-crore company and through its manufacturing plant in Chennai, it supplies auto components, including frames for chassis for commercial vehicles.

12:35 pm Management Interview: Coal India has reported their highest ever monthly dispatches in December. In an interview with CNBC-TV18, Gopal Singh, CMD said every month the company would be creating a milestone in terms of the highest ever dispatches.

So January, February, March all the months are going to be very good for Coal India, he added.

It will be dispatching about 56-57 million tonne every month, said Singh.

12:15 pm Buzzing: Shares of Idea Cellular rallied for a second day, soaring nearly 14 percent today after the company unveiled a plan to raise up to Rs 6,750 crore ahead of its merger with Vodafone.

Idea Cellular yesterday unveiled a plan to raise up to Rs 6,750 crore which will alter the shareholding pattern of the company and have a bearing on its merger agreement with Vodafone.

The board of Idea Cellular approved raising about Rs 3,250 crore from entities under the promoter Aditya Birla Group (ABG) and constituted a committee to evaluate potential routes for raising further capital of up to Rs 3,500 crore.

In a separate statement, Vodafone Group said that as a consequence of the change in shareholding in Idea following the capital raise, the two parties have agreed that ABG will buy a minimum of 2.5 per cent of the merged entity from Vodafone for Rs 1,960 crore.

12:02 pm Order Win: Ahluwalia Contracts (India) has secured new orders aggregating to Rs 395.21 crore for construction of institutional, & commercial including electrical, plumbing & firefighting services.

11:53 am Buzzing: Subros shares hit a fresh record high of Rs 347.20, rising more than 10 percent intraday following the beginning of supply of blower application to truck makers.

"....has started supply of blower application to customers from January 1, 2018 as per schedule," the auto airconditioning systems provider said in its filing.

While majority of the customers have opted for blower application in truck as per the notification but few customers have chosen for air-conditioning fitment as an optional action, it added.

11:45 am Nickel Update: Nickel prices eased further by 1.09 percent to Rs 792.30 per kg in futures trade today as speculators cut bets, tracking a weak trend in the spot market on easing demand.

At the Multi Commodity Exchange, nickel for delivery in January fell Rs 8.70, or 1.09 per cent, to Rs 792.30 per kg in business turnover of 8,796 lots.

Likewise, the metal for delivery in February contracts was trading Rs 8.10, or 1.01 per cent, lower at Rs 797.50 per kg in 215 lots.

Analysts said participants offloaded positions on account of slackened demand from alloy-makers in the spot market, which kept prices down in futures trade.

11:35 am Insurance Companies in Focus: Nomura has initiated coverage with Buy call on HDFC Standard Life, ICICI Prudential Life & SBI Life while it has maintained Buy call on Max Financial with a target price at Rs 680 per share.

The research house said its sector view is positive and it expects 22-38 percent CAGR in value of new business over FY17-20.

ICICI Prudential is its top pick in the insurance space with a target price at Rs 490 while it has set a target price at Rs 840 for SBI Life and Rs 430 for HDFC Life.

All these three insurance companies HDFC Standard Life, SBI Life and ICICI Prudential listed on exchanges in last 16 months after their IPOs.

ICICI Prudential rallied 17 percent till date, from its issue price of Rs 334 and HDFC Standard Life gained 40.4 percent from issue price of Rs 290 but SBI Life has been trading around its issue price of Rs 700 per share.

11:25 am Market Update: Benchmark indices maintained early gains, with the Sensex rising 147.52 points to 34,117.16 and the Nifty up 38.80 points at 10,543.60.

About two shares advanced for every share falling on the BSE.

Yes Bank was top gainer among Nifty 50 stocks, rising 5 percent while oil retailers IOC, HPCL and BPCL were under pressure.

Brokers said improved liquidity in the market following continuous foreign fund inflows and increased buying by domestic institutional investors after the government moved forward on its bank recapitalisation programme boosted trading sentiments.

The finance ministry yesterday sought Parliament's nod for extra expenditure of Rs 80,000 crore towards recapitalisation of bad loans-saddled public sector banks through bonds.

Foreign portfolio investors (FPIs) bought shares worth a net of Rs 212.05 crore, while Domestic Institutional Investors (DIIs) made purchases worth a Rs 325.24 crore yesterday, as per provisional exchange data.

11:12 am Buzzing: Shares of NIIT added 4.4 percent intraday as the company has acquired Eagle Productivity Solutions.

The company through its wholly owned subsidiary NIIT (USA) Inc. has acquired Eagle Productivity Solutions headquartered in USA.

Eagle is a top rated global provider that specializes in training solutions for companies adopting sophisticated cloud- based applications in the pharmaceuticals and life sciences industry.

The blending of these two companies will further help NIIT expand its capabilities in global application rollouts of enterprise applications requiring high adoption and deepen its domain expertise in the pharmaceutical and life sciences domain.

11:02 am Stake sale: Non-banking finance company IFCI has invited bids for stake sale in Clearing Corporation of India (CCIL) by January 19, reports CNBC-TV18 quoting Cogencis.

The company wants to divest 4 percent stake CCIL.

10:50 am Buzzing: Share price of Larsen & Toubro (L&T) touched a 52-week high of Rs 1,328, gaining 1 percent intraday as its subsidiary won order worth Rs 1,483 crore.

The company's wholly owned subsidiary L&T Hydrocarbon Engineering has signed an offshore contract for bassein development 3 Well Platform & Pipeline project with Oil & Natural Gas Corporation (ONGC) valued at approximately Rs 1,483 crore (USD 229 million USD).

The contract includes 3 new wellhead platforms, 23- kilometer subsea pipeline, composite subsea power cable, clamp-on work on an existing platform and modification work on nine existing platforms in the western offshore basin in India.

10:40 am Rupee Trade: The rupee gained 6 paise to trade at over 2-1/2 year high of 63.34 against the US dollar in morning on increased selling of the American currency by exporters and banks.

Besides, stock markets opening with gains and sustained foreign fund inflows also supported the domestic unit, forex dealers said.

The dollar's weakness against some currencies overseas also supported the rupee's upmove.

The rupee opened higher at 63.35 a dollar and moved to a high of 63.31 a dollar in early trade.

10:25 am CCI on Bayer-Monsanto deal: The Competition Commission of

India today launched a public consultation process to determine whether the billion dollar merger deal between global giants Bayer and Monsanto to create the world's largest seeds and pesticide firm will have any adverse impact on competition in India.

Issuing a public notice inviting comments from everyone affected or likely to be affected by this merger, the CCI said the submissions must be made within 15 working days.

The fair trade regulator launches such public consultation process if it is of the prima facie opinion that a combination has or is likely to have an appreciable adverse effect on competition.

10:10 am Partnership: Food and Beverages maker PepsiCo said it has entered into a strategic partnership with bottling partner Varun Beverages, which will now sell and distribute the entire Tropicana range of juices along with Gatorade and Quaker Value-Added Dairy in north and east India.

Already, Varun Beverages Ltd (VBL) holds manufacturing, sales and distribution rights for Tropicana Slice and Tropicana Frutz in north and east regions.

"In order to further unlock the potential of brand Tropicana, we have entered into a strategic partnership with VBL for ramping up the selling and delivery infrastructure for our Premium Go to Market channel in their territories across North and East India," PepsiCo India Vice President-Nutrition Category Deepika Warrier said in a statement.

10:01 am Buzzing: Shares of Orbit Exports touched 52-week high of Rs 190, rising nearly 5 percent in morning as company s going to consider buyback of its equity shares.

The meeting of board of directors of the company is scheduled to be held on January 05, 2018 to consider and approve the proposal for buy-back of fully paid-up equity shares of the company.

The board will also consider the quantum & mode of buy-back and any other matters incidental thereto in accordance with the provisions of Sections 68, 69 and 70 and other applicable provisions, if any, of the Companies Act, 2013 and the Securities and Exchange Board of India (Buy Back of Securities) Regulations, 1998 as amended.

9:50 am Market Update: Benchmark indices rallied further in morning, hitting fresh record highs on broadbased buying.

The 30-share BSE Sensex was up 169.90 points at 34,139.54 and the 50-share NSE Nifty rose 46.20 points to 10,551.

About three shares advanced for every share falling on the BSE.

9:38 am IOB in action: Shares of Indian Overseas Bank (IOB) gained 9 percent in the early trade as bank decided to utilise share premium balance to write off the accumulated losses.

The company at its board meeting held on January 4, has considered and approved to utilize the balance available in the share premium account amounting to Rs 7650.06 crore as at March 31, 2017 to write off the accumulated losses of the bank aggregating to Rs 6978.94 crore as at March 31, 2017 to present a true and fair view of the financial position of the bank and to take the same into account during current Financial Year 2017-18.

For the quarter ended the company has reported a loss of Rs 1,222 crore, while the bank had a gross non-performing ratio of 22.73 percent during the same quarter.

9:28 am Buzzing: Bharat Forge shares gained 2 percent in early trade after strong Class 8 truck orders in the US.

North America Class 8 truck orders shot up 77 percent to 37,200 units in December against 21,061 units in year-ago month.

Class 8 truck orders increased 15 percent on month-on-month basis.

9:21 am Earnings: GM Breweries said its gross sales in Q3 increased 24 percent to Rs 434 crore and net sales grew by 21 percent to Rs 119 crore compared with year-ago.

Net profit jumped 122 percent to Rs 22 crore while EBITDA surged 113 percent to Rs 34 crore and margin expanded margin to 29 percent from 16 percent YoY.

9:15 am Market Check: Equity benchmarks extended gains in morning on last day of the week, tracking positive global cues. Banking & financials, infra and metals stocks continued to gain.

The 30-share BSE Sensex was up 102.64 points at 34,072.28 and the 50-share NSE Nifty gained 27 points at 10,531.80.

About 1,201 shares advanced against 284 declining shares on the BSE.

SBI, Hindalco Industries, Yes Bank, Indiabulls Housing Finance, L&T, UltraTech Cement, Vedanta, Tata Steel and Maruti Suzuki were early gainers.

HCL Technologies, Tech Mahindra, Wipro, TCS and Infosys were mildly lower on strong rupee.

GM Breweries gained 14.5 percent on strong earnings.

Nifty Midcap added half a percent today, on top of 1 percent rally in previous session.

Globus Spirits, Jain Irrigation, Idea Cellular, Bharat Forge, Ramkrishna Forgings, Munjal Auto, Bhushan Steel, Radico Khaitan, Indian Hotels and Motherson Sumi gained 1-4 percent.