Sensex, Nifty close higher; Lupin soars 8%, Tata Steel down 5%

07 Jul 2016

3:30 pm Market closing: After a consolidation, equity benchmarks closed marginally higher.

The Sensex was up 34.62 points at 27201.49 and the Nifty gained 7 points at 8342.95. The market breadth remained positive as about 1556 shares advanced against 1203 declining shares on BSE.

Lupin surged 8 percent in late trade after the company received establishment inspection report from the USFDA for Goa facility.

HDFC, HDFC Bank, ITC, HUL, Dr Reddy's Labs and Cipla gained 1-3 percent while TCS, Infosys, Tata Steel, L&T, Adani Ports, ONGC and SBI fell 1-5 percent.

3:10 pm Buzzing: Claris Lifesciences shares gained more than 13 percent intraday on approval from the US health regulator for anti-bacterial injection.

"...has received the abbreviated new drug application (ANDA) approval for Tobramycin injection USP, 80mg/2mL and 1200 mg/30mL multiple dose vials, in the United States of America," says the Ahmedabad-based pharma company in its filing.

The estimated market size in the US is USD 6 million and the product is currently in shortage list of US Food & Drug Administration.

With this, Claris now has a total of 14 approvals and 24 under approval ANDAs.

2:50 pm Market Update: Equity benchmarks erased more than half of gains in late trade. The Sensex rose 56.04 points to 27222.91 and the Nifty gained 8.65 points at 8344.60.

About 1632 shares advanced against 1064 declining shares on BSE.

2:40 pm Nomura on CESC: Nomura has maintained buy rating on CESC, the Kolkata-based power utility company, but raised target price by Rs 20 percent to Rs 725 on likely solid earnings growth. The stock gained nearly 2 percent.

"We raise SOTP-based target price by 20 percent to Rs 725, largely on account of the higher value of the Haldia project, core business, and CESC's holding in Firstsource," says the brokerage.

It believes a solid earnings growth outlook, healthy balance sheet and imminent free cash flow generation peg CESC amongst the better placed independent power plants (IPPs) in India.

2:20 pm HSBC view on GDP: India's economy may grow at a slightly slower pace of 7.4 per cent this fiscal amid weaker global demand and risk aversion, says an HSBC report, flagging "methodological concerns" in computation of official GDP data.

According to the global financial services major, some of the factors that are weighing on the economy include weaker global demand, banking sector risk aversion, sluggish domestic private investment, gradually climbing oil prices, and statistical auto-correction in growth prints.

"All considered, we expect GDP growth to slow gently from 7.6 per cent last year to 7.4 per cent in 2016-17 and further to 7.2 per cent in 2017-18," HSBC said in a research note, adding that despite lower prints, this will be among the best growth performances globally.

India's first quarter GDP growth print was 7.9 per cent y-o-y, primarily led by urban consumption demand.

2:00 pm Market Check: Equity benchmarks gained strength in afternoon trade as European markets extended early rally with the FTSE's Britain, Germany's DAX and France's CAC rising 1-1.6 percent.

The Sensex rose 113.58 points to 27280.45 and the Nifty climbed 21.90 points to 8357.85. About 1634 shares advanced against 999 declining shares on Bombay Stock Exchange.

FMCG, banking & financials and pharma stocks supported the market while IT and auto stocks were under pressure.

Europe's higher open follows a rebound in the US on Wednesday on the back of a rise in oil prices and dovish minutes from the U.S. Federal Reserve's June meeting.

Federal Reserve policymakers said it was prudent to wait for more data and the Brexit vote result before raising rates, and cited a slowdown in hiring as a reason to keep rates unchanged last month, according to meeting minutes released Wednesday afternoon. The non-farm payrolls report due Friday will be the next key data followed by markets.

Oil prices rose, supported by a report of another fall in US crude inventories as well as a weaker dollar, although a glut of refined products and economic growth concerns continue to weigh on markets. International Brent crude oil futures were trading at USD 49.20 per barrel, up 40 cents from their last settlement. US West Texas Intermediate (WTI) crude was up 44 cents at USD 47.87 a barrel.

1:30 pm FII View: Indian markets have returned 2 percent, in dollar terms, since December. While India is relatively placed better than other markets, it is wise to be cautious, says Samir Arora, Founder & Fund Manager, Helios Capital.

Speaking to CNBC-TV18, Arora says: ''Cautious in mind, but not in portfolio yet.''

India's performance has been flat when other markets like Europe and Japan have fallen considerably.

Goods & Services Tax (GST) Bill, good monsoon as well as an expected growth in agriculture could boost Indias gross domestic product (GDP). Arora expects earnings to grow 16-17 percent this year in rupee terms.

Even if GST is put in place, its impacts will not be immediate. It won't change earnings in 1-3 years post its implementation, Arora says.

1:20 pm L&T's order inflow: Infrastructure major Larsen & Toubro (L&T) today said its construction arm has won orders worth Rs 3,598 crore across various business segments.

"The construction arm of L&T has won orders worth Rs 3,598 crore across various business segments," L&T said in a BSE filing.

L&T said its Heavy Civil Infrastructure Business, along with its partner, PES Engineers Pvt Ltd, has won a major order worth Rs 1,849 crore from the Irrigation and Command Area Development Department (I&CAD) of the Telangana government.

1:00 pm Market check
Equity benchmarks as well as broader markets remained rangebound in afternoon trade with the Sensex trading in a 70-point band despite strong Europe rally.

The 30-share BSE Sensex was up 32.84 points at 27199.71 and the 50-share NSE Nifty declined 4.35 points to 8331.60.

The market breadth continued to be positive as about 1500 shares advanced against 1053 declining shares on Bombay Stock Exchange.

Tata Steel shares fell 4 percent after sources told CNBC-TV18 that the sale of UK business might be kept on hold to look at all the choices including pension liability. Sale of Port Talbot asset might also be put on hold. No bidders have backed out despite Brexit jitters.

European stocks rallied after a sell-off earlier this week, buoyed by positive sentiment in the US and a tentative rise in oil prices. France's CAC and Britain's FTSE advanced over a percent while Germany's DAX gained 0.7 percent.

Federal Reserve policymakers said it was prudent to wait for more data and the Brexit vote result before raising rates, and cited a slowdown in hiring as a reason to keep rates unchanged last month, according to meeting minutes released Wednesday afternoon. The non-farm payrolls report due Friday will be the next key data followed by markets.

12:40 pm Europe opens: European stocks opened higher after a sell-off this week, buoyed by positive sentiment in the US and a tentative rise in oil prices.

The pan-European STOXX 600 was up 0.89 percent.

Europe's higher open today follows a rebound in the US on Wednesday on the back of a rise in oil prices and dovish minutes from the US Federal Reserve's June meeting.

12:20 pm Buzzing: BGR Energy Systems shares spiked 12.4 percent intraday on bagging contract from the power generation company based in Andhra Pradesh.

"....has received a letter of intent from Andhra Pradesh Power Generation Corporation (APGENCO) for execution of Balance of Plant equipment/systems including civil works for 1 x 800MW - Dr Narla Tata Rao Thermal Power Station, stage - V (1X800 mw), unit-8 at Ibrahimpatnam, Krishna District, Andhra Pradesh on EPC basis," says the Chennai-based engineering and construction company in its filing.

The total lump sum price of this contract is Rs 2,299.87 crore and the contract completion period is 36 months from the date of award.

12:00 pm Market Check
The market continued to be directionless in noon trade with the Nifty trading in 20-point band of 8320-8340. FMCG, private banking & financials, pharma and telecom stocks gained while auto, infra and technology stocks declined.

The Sensex rose 20.76 points to 27187.63 and the Nifty declined 6.70 points to 8329.25. The market breadth remained positive as about 1502 shares advanced against 940 declining shares on Bombay Stock Exchange.

HDFC, HUL, Axis Bank, Bharti Airtel, Cipla and Dr Reddy's Labs climbed 1-2 percent while Infosys, TCS, Adani Ports, ONGC, Tata Steel and NTPC fell 1-2 percent.

Mark Matthews of Bank Julius Baer says that he is overweight on emerging markets as an asset class. India continues to a bright spot. Seventh Pay Commission, GST expectations and monsoon will push growth for the country.

11:30 am Buzzing: NBCC (India) shares surged 14 percent intraday after the Union Cabinet has approved redevelopment of seven colonies at a cost of Rs 32,835 crore.

The Union Cabinet, on July 5, has approved the redevelopment of seven General Pool Residential Accommodation (GPRA) colonies through NBCC and the Central Public Works Department.

NBCC will redevelop Sarojini Nagar, Netaji Nagar, and Nauroji Nagar while CPWD, the unlisted company, has been allotted Kasturba Nagar, Thyagraj Nagar, Srinivaspuri and Mohammadpur.

With this redevelopment, the housing units in these places will be doubled to 25,667 from existing 12,970 units.

"There will be a total expenditure of Rs 32,835 crore which we are investing in dwelling units. After reconstruction, renovation and fresh construction, they could be increased from the present 12,970 to 25,667 dwelling units. This will help government employees who have to wait for long years to get government accommodation," Union Minister Ravi Shankar Prasad said.

11:00 am Market Check
Equity benchmarks remained flat with a positive bias due to lack of global and domestic cues. The Sensex advanced 51.56 points to 27218.43 and the Nifty gained 2.35 points at 8338.30.

The market breadth continued to be positive as about two shares advanced for every share declining on the Bombay Stock Exchange.

Punjab National Bank shares rallied more than 3 percent after its housing finance subsidiary filed IPO papers with the market regulator.

Asia markets were mixed, despite a stronger finish in the US that followed a rise in oil prices and the release of dovish Federal Reserve meeting minutes. Japan's Nikkei and China's Shanghai fell 0.3-0.6 percent while Hong Kong's Hang Seng was up 0.8 percent.

Oil prices rose, supported by a report of another fall in US crude inventories as well as a weaker dollar, although a glut of refined products and economic growth concerns continue to weigh on markets. International Brent crude oil futures were trading at $49.09 per barrel, up 29 cents from their last settlement. US West Texas Intermediate (WTI) crude was up 35 cents at USD 47.78 a barrel.

10:40 am IPO: GreenSignal Bio Pharma (GSBPL), a vaccine manufacturing company, has filed the draft red herring prospectus (DRHP) with SEBI for its proposed public offer through Offer for Sale (OFS).

The offer for sale would constitute about 1,45,79,560 shares and will be offered by the existing shareholders (38 percent of the paid-up capital of GSBPL) to QIBs, HNIs and retail investors in India as well as FIIs, FPIs and NRIs eligible to invest in these securities.

The majority of GSBPL's revenue for quarter ended June 30, 2016 comes from exports to various countries," P Murali, managing director said.

GSBPL is promoted by P Sundaraparipooranan and P Murali.

The company manufactures and supplies the tuberculosis (TB) immunizing vaccines called the BCG (bacillus calmette-guerin) that are administered to babies to protect them from being infected with severe forms of childhood tuberculosis (TB).

Government of India, Ministry of Health and the UNICEF (United Nations International Children's Emergency Fund) are the principal clients of GSBPL.

10:30 am Buzzing: Share of  Kalpataru Power Transmission (KPTL) advanced 6.5 percent intraday as it has secured new orders exceeding Rs 1900 crore.

The orders include, a turnkey project for construction of 225 KV transmission line and substation in Republic of Senegal of approximately Rs 1340 crore, which is financed by Exim Bank of India's NEIA buyer credit scheme.

It has bagged another turnkey project for construction of 500 KV transmission line in Islamic Republic of Afghanistan of approximately Rs 575 crore, funded by ADB.

10:00 am Market Check
The market continued to consolidate in morning trade with the Nifty hovering around its previous closing level. The BSE Smallcap index outperformed benchmarks, rising 0.6 percent.

The 30-share BSE Sensex was up 59.92 points at 27226.79 and the 50-share NSE Nifty gained 0.90 points at 8336.85. The market breadth remained positive as about 1367 shares advanced against 569 declining shares on Bombay Stock Exchange.

Sanjay Dutt of Quantum Securities said an investor should have India in her portoflio given the volatility in the global market.

"On every dip, this market will be bought into," he said.

Banking & financials, FMCG, pharma, metals and telecom stocks gained while technology stocks were under pressure.

9:35 am FII View: Robert Buckland of Citi says following the Brexit vote, Citi economists cut their global 2017 real GDP growth forecast to 2.6 percent.

"This suggests EPS growth in the 0-5 percent region, not the +13 percent currently being forecast by the analyst consensus," he says.

According to Buckland, further downgrades would be a drag on global equities.

"We are reassured by the recent resilience of emerging markets equities and remain overweight. Valuations are attractive and stabilising commodity prices should help," he says.

9:15 am Market Check
Equity benchmarks opened on a flat note amid mixed Asian cues. The Sensex was up 35.97 points at 27202.84, and the Nifty gained 6.05 points at 8342.

The broader markets outperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.2 percent and 0.5 percent, respectively.

The market breadth was also positive as about 923 shares advanced against 389 declining shares on Bombay Stock Exchange.

Bharti Airtel and Dr Reddy's Labs gained over a percent followed by ITC, HDFC, SBI, L&T and HUL while Infosys, HDFC Bank, TCS, Bajaj Auto, Reliance Industries and NTPC declined.

Punjab National Bank climbed over 3 percent as its subsidiary housing finance company has received approval for listing IPO from National Stock Exchange and Bombay Stock Exchange.

Asian markets were mixed with Shanghai and Nikkei falling half a percent while Hang Seng gained 0.8 percent.