Sensex, Nifty, Midcap at fresh record close; heavyweights lead

08 Jan 2018

3:30 pm Market Closing: The market ended at fresh record closing high yet again on Monday. The Nifty closed above 10,600 for the first time while the Midcap index outperformed, rising a percent.

The 30-share BSE Sensex rose 198.94 points to 34,352.79 and the 50-share NSE Nifty gained 64.70 points at 10,623.60.

Infosys, HDFC, L&T, ITC, Reliance Industries were top contributors to Nifty's gains.

Telecom stocks cracked on tariff war. Bharti Airtel and Idea Cellular were down 4-5 percent.

3:26 pm Buzzing: Unichem Laboratories hit fresh record high, rising nearly 9 percent following approval for buyback and December quarter earnings.

"The board of directors has approved the buyback proposal for purchase up to 2.06 crore equity shares by the company from equity shareholders," Unichem said in its filing.

The company will buyback shares at a price of Rs 430 per share, for an aggregate amount up to Rs 885.80 crore, it added.

Meanwhile, Unichem has reported solid growth in net profit at Rs 2,507 crore for October-December quarter 2017, compared with Rs 26.1 crore in year-ago due to stake sale.

3:12 pm Market Check: Benchmark indices extended gains in late trade, with the Sensex rising 226.55 points to 34,380.40.

The 50-share NSE Nifty was up 70.30 points at 10,629.20.

Index heavyweights Infosys, L&T, HDFC, Reliance Industries and ITC were top contributors to benchmark indices' gains.

3:03 pm Buzzing: Orchid Pharma shares were locked at 5 percent upper circuit at Rs 23.40 on establishment inspection report from the US health regulator for Chennai plant.

The pharma company informed exchanges that it has received the establishment inspection report from the US Food and Drug Administration on successful inspection closure for Chennai plant.

The US health regulator has conducted post-marketing adverse drug experience reporting inspection at Orchid Towers 313, Chennai, Tamil Nadu.

2:55 pm Sugar Update: Sugar prices firmed up by Rs 50 per quintal at the wholesale market in the national capital today following strong demand amid restricted arrivals.

Marketmen said besides tight supplies, heavy buying by stockists and bulk consumers mainly pushed up sugar prices.

Sugar ready M-30 and S-30 prices hardened by Rs 50 to finish the day at Rs 3,480-3,690 and Rs 3,470-3,680 per quintal.

2:45 pm Concession Agreement for Navi Mumbai Airport project: GVK Power & Infrastructure has announced signing of the concession agreement for the Navi Mumbai International Airport project, through the creation of special purpose vehicle - Navi Mumbai International Airport Pvt Ltd (NMIAL) with CIDCO.

CIDCO is the nodal authority of the Government of Maharashtra for implementation of this project.

GVK through its subsidiary Mumbai International Airport holds 74 percent equity shares of NMIAL while CIDCO holds the balance 26 percent.

The initial concession period is 30 years from the appointed date which is extendable for further 10 years.

GVK's subsidiary MIAL was declared the successful bidder in February 2017 for the Navi Mumbai International Airport project and had received letter of award from CIDCO on October 25, 2017.

2:35 pm Capex impact: Essar Ports today said its more than Rs 2,800 crore investment in Salaya and Vizag terminal projects has the potential to increase its revenues by 30 percent in 2018-19 on the back of third-party cargo growth.

The company said it has completed Rs 2,800 crore investment in terminal projects at Salaya in Gujarat and Vizag in Andhra Pradesh and its capacity is likely to go up to 90 MTPA (million tonne per annum) by month-end from the current 82 MTPA.

The company said Essar Bulk Terminal Salaya Ltd (EBTSL) recently commenced commercial operations at its 20 MT dry bulk terminal with the berthing of its first vessel.

2:25 pm Buzzing: Sadbhav Infrastructure Projects shares gained 6 percent intraday following good growth in toll revenue collection.

Toll revenue received from its 10 operational special purpose vehicles (apart from NSEL which is an annuity project) stood at Rs 261.72 crore in Q3FY18, higher by 9 percent on sequential basis.

The company reported toll collection at Rs 240.17 crore in Q2FY18.

"The Rs 261.72 crore included Rs 1.75 crore for compensation of stoppage of toll collection for cars from October 13, 2017," the company said.

2:15 pm Market Check: Benchmark indices remained strong in afternoon, with all sectoral indices barring PSU Bank trading higher. Pharma was the biggest gainer on USFDA news while PSU Bank fell 0.2 percent.

The 30-share BSE Sensex was up 171.24 points at 34,325.09 and the 50-share NSE Nifty gained 48.20 points at 10,607.10.

The broader markets extended gains, with the Nifty Midcap rising nearly 1 percent. About two shares advanced for every share falling on the NSE.

Sun Pharma (up 2.89 percent), Lupin (2.47 percent), Tech Mahindra (1.99 percent), Coal India (1.70 percent), L&T (1.62 percent), Infosys (up 1.54 percent) and IndusInd Bank (up 1.26 percent) were top gainers.

Bharti Airtel remained top loser since opening, falling 4 percent on tariff war competition from peers.

2:02 pm SME numbers set to increase sharply: The number of small and medium enterprises listed on BSE and NSE platforms is expected to reach 1,000 in the next two years from nearly 350 at present, leading merchant banker Guiness Corporate Advisory Services said today.

More companies will tap the initial public offer (IPO) route for business expansion plans, to support working capital requirements and other general corporate purposes.

In the entire 2017, 132 SMEs raised a record Rs 1,785 crore through IPOs, much higher than 66 firms that garnered Rs 540 crore in 2016.

Besides, 2017 witnessed more fund-raising than aggregate capital garnered in past five years cumulatively. Overall, the firms mopped up Rs 1,315 crore in the last five years.

1:48 pm DoT on Call Drops: Concerned about the deteriorating call drop situation, the Department of Telecom (DoT) will meet service providers on January 10 to discuss the burning issue as also the new service quality norms that have been implemented in the sector.

"We want to convey to the operators, the government's concerns on state of call drops. Service providers have to get their act together," Telecom Secretary Aruna Sundararajan told reporters here today.

The meeting is also slated to discuss the new stringent call drop norms that were enforced by telecom regulator TRAI in October last year.

On the same day, DoT will also hold a separate meeting with the telecom regulator on the call drop issue.

1:42 pm Earnings: Prakash Industries hits fresh 52-week high of Rs 223.70, rising 9.4 percent intraday after stellar earnings performance in October-December quarter.

Net profit during the quarter jumped more than 5-fold to Rs 101.3 crore, from Rs 18.1 crore in year-ago and revenue surged 54.9 percent to Rs 726 crore from Rs 468.5 crore YoY.

Operating profit more than doubled to Rs 150.5 crore from Rs 62.1 crore and margin expanded to 28.7 percent from 13.2 percent YoY.

Prakash Industries said increase in domestic steel & ferro alloy prices helped profit and revenue.

1:37 pm Tie-Up: Vakrangee announces a tie-up with Netmeds Marketplace Limited to offer medicines and other health products from Vakrangee Kendra.

Netmeds is an online marketplace for pharmaceutical and similar goods including OTC Products.

Vakrangee would act as the assisted digital platform where citizens will now be able to order, pay and collect a wide range of prescription and OTC medicines and other health products at their nearest Vakrangee Kendra.

1:24 pm Projects cancelled: The Centre has cancelled the Rs 32,000 crore project to build 12 advanced minesweepers in partnership with South Korea at the Goa Shipyard, reports The Times of India.

The decision is a major setback to the 'Make in India' project in defence sector as the country is the biggest importers of defence equipment in the world and has been trying to cut reliance on import.

Advanced minesweepers also called mine counter-measure vessels (MCMVs) are naval vessels used to detect and weed out explosive underwater enemy mines that can potentially disrupt maritime trade. The first use of minesweeping in modern history dates back to 1855 in Crimean War.

1:10 pm Cybersecurity budget: With increased number of cases of data breaches, the government is expected to keep aside separate funding in Budget to improve cybersecurity. The government could allocate an overall digitisation budget of Rs 20,000 crore, Business Standard reported quoting sources.

The increasing number of such crimes and also questioning the safety of the Aadhaar is pushing the government to bring in proposals and allocate funds for cybersecurity separately in this Budget. Sources told the paper that Rs 1,500 crore is likely to be divided between the electronics and information technology ministry for more focus on the Indian Computer Emergency Response Team (CERTIn) and the home ministry for counter-terrorism cyber cells.

Funds of smaller amounts can be allocated to various ministries so that they are able to secure their networks. The IT ministry is likely to be allocated close to Rs 5,500 crore in Budget 2018 as compared to the Rs 4,040 crore allocated last year.

12:55 pm Buzzing Stock: Indoco Remedies shares gained 3.5 percent intraday Monday ahead of inspection by the US health regulator for company's Unit-1 located in Goa.

Sources told CNBC-TV18 that the US Food and Drug Administration is expected to begin inspecting company's Unit 1 plant next week and it may be pre-approval inspection.

Indoco's Unit-1, located in Goa, is an oral dosage manufacturing plant and the contribution of this unit to overall sales is small.

12:45 pm USFDA inspection: Indoco Remedies shares gained 3.5 percent intraday ahead of inspection by the US health regulator for company's Unit-1 located in Goa.

Sources told CNBC-TV18 that the US Food and Drug Administration is expected to begin inspecting company's Unit 1 plant next week and it may be pre-approval inspection.

Indoco's Unit-1, located in Goa, is an oral dosage manufacturing plant and the contribution of this unit to overall sales is small.

Overall US business contributes around 25-30 percent of total export sales of Indoco Remedies.

12:37 pm Market Update: Equity benchmarks continued to trade around record high levels in afternoon on sustained buying in pharma, banking & financials, IT and oil & gas stocks.

The broader Nifty of the NSE was trading above 10,600 points with 38 of its constituents led by Tech Mahindra, Sun Pharma, Lupin, BPCL and L&T trading with gains.

The 30-share BSE Sensex was up 197.18 points at 34,351.03 and the 50-share NSE Nifty gained 56.50 points at 10,615.40. About two shares advanced for every share falling on the BSE.

Sustained FII inflows into Indian equities, firm Asian cues after fresh Wall Street record closing last Friday boosted investors' sentiment.

12:29 pm Gold Trade: Gold futures slipped marginally to Rs 29,198 per 10 grams as participants cut bets amid a weak global trend.

Besides, profit-booking by speculators also weighed on prices.

At Multi Commodity Exchange, prices for delivery in February contracts fell Rs 19, or 0.07 percent, to Rs 29,198 per 10 grams in a business turnover of 658 lots. Also, the yellow metal for delivery in far-month April declined Rs 20, or 0.07 percent, to Rs 29,130 per 10 grams in 35 lots.

12:15 pm Fundraising: Country's largest lender State Bank of India plans to raise up to USD 2 billion (over Rs 12,600 crore) by issuing bonds in US dollar or other convertible currency.

"The executive committee of the Central Board.. has approved long term fund-raising in single/multiple tranches up to USD 2 billion," State Bank of India (SBI) said in a regulatory filing.

It said the fund-raising will take place through a public offer and/or private placement of senior unsecured notes in US Dollar or any other convertible currency during fiscal 2017-18 and 2018-19.

12:01 pm Stake Buy: Satin Creditcare said Kora Management LP - a global emerging markets investment firm - has made an equity investment of Rs 80 crore in company to support the company's growth and digital initiatives as a financial services provider to rural and semi-urban India.

The investment by Kora is part of the recently concluded capital raise of Rs 2,05 crore via a preferential allotment.

With this transaction, Daniel Jacobs, co-founder and senior partner at Kora, will be joining Satin's board of directors.

11:47 am Buzzing: Bharat Forge shares hit a fresh record high of Rs 750, rising 2 percent intraday after global brokerage house, HSBC raised target price on strong North America Class 8 truck orders.

HSBC has retained its Buy rating on the stock with increased target price at Rs 820 from Rs 775 per share as stronger order inflows are likely to impact Bharat Forge earnings favourably, but rupee appreciation against US dollar should partially offset the gains.

N America Class 8 truck sales are firmly placing CY18 to be another year of builds growth, it said.

N America Class 8 trucks segment accounts for 20 percent of Bharat Forge standalone revenue.

HSBC said the bullishness is also based on expectations of strong improvements in global capex cycle.

11:32 am New COO at RPP Infra: RPP Infra Projects has informed the exchange that P Murugesan will take charge as chief operating officer (COO] of the company with effect from January 08, 2018.

11:21 am Market Check: The market has held on to its morning gains, with benchmarks trading above key milestones.

At 11:21 hrs IST, the Sensex is up 202.76 points or 0.59 percent at 34356.61, and the Nifty up 59.00 points or 0.56 percent at 10617.90. The market breadth is positive as 1719 shares have advanced, while 865 shares have declined, and 385 shares are unchanged.

Midcaps have continued to put up a strong show, while Sun Pharma, Infosys and Tech Mahindra gained the most. Bharti Airtel and Hindalco lost the most.

10:55 am Mark Mobius retires: Well-known emerging markets investor Mark Mobius will retire from Franklin Templeton Investments at the end of January, the investment fund said on Friday.

Mobius, hired by Sir John Templeton in 1987 to launch one of the first mutual funds dedicated to developing economies, ran the firm's emerging markets team until 2016, when he passed on his role as chief investment officer to Stephen Dover.

As executive chairman of Templeton Emerging Markets Group (TEMG), he oversaw around $50 billion in investments and remained one of the best-known names in emerging market investment.

10:35 am RBI action: India's growth rate may slow down to its lowest level in 4 years. Advance estimate for FY18 pegs gross value added (GVA) growth at 6.1 percent much below street estimates and well below the Reserve Bank of India (RBI) estimate of 6.7 percent.

In an interview with CNBC-TV18, A Prasanna, Chief Economist at I-Sec PD spoke about the same.

Gap between GVA and gross domestic product (GDP) could shrink. Our full year estimate for GVA is at 6.5 and GDP at 6.7 percent, he said.

10:17 am Market Check: Equity benchmarks extended their gains from the opening minutes, with the Sensex gaining over 200 points, while the Nifty was up over half a percent.

At 10:17 hrs IST, the Sensex is up 202.87 points or 0.59% at 34356.72, and the Nifty up 56.60 points or 0.54% at 10615.50. The market breadth is positive as 1661 shares have advanced, against a decline of 753 shares, while 373 shares are unchanged.

Sun Pharma, Infosys and Lupin gained the most on both indices, while Bharti Airtel and Asian Paints lost the most.

10:08 am Buzzing Stock: Shares of Hindustan Construction Company gained 5 percent intraday on Monday as investors cheered a recent order win by the company.

The company's joint venture has been awarded a contract worth Rs 484 crore for the metro rail project in Pune.

HCC is the lead partner in the JV with AL FARA'A and has 51 percent stake in the JV. "The contract is for construction of eight elevated metro rail stations viz. Vanaz, Anand Nagar, Ideal Colony, Nal Stop, Garware College, Deccan, Sambhaji Park and PMC on Line II of Pune Metro Rail Project," the company said in a filing to the exchanges on Monday morning.

9:55 am Fundraising: Shares of Jindal Steel & Power (JSPL) touched 52-week high of Rs 270.30, surging 13 percent in early trade as company planning to raise Rs 1,000 crore.

The company will raise Rs 1,000 crore through qualified institutional placement (QIP) route in February, said by Chairman Naveen Jindal.

Speaking to CNBC-TV18 Jindal adds the company will also raise equity for Oman operations.

We have always been a standard account, it is just out of some technical issues of Reserve Bank of India (RBI) -- because they have very strict guidelines – few banks had become non-performing assets (NPAs). No bank has lost a single rupee with JSPL and no bank will lose a single rupee with JSPL, he said.

Raw material prices have gone up and steel prices have also improved and there is a good demand for all our products. So we are very confident that going forward things are going to be much better, he added.

We are going to be raising only about Rs 1,000 crore and utilising it mostly for some debt repayment and to clear payments of all our suppliers and creditors, said Jindal.

Will require around Rs 1,000-1,500 crore from banks for working capital, he further mentioned.

9:45 am Rupee Trade: The rupee strengthened by 8 paise to trade at 63.28 against the US dollar in opening session today on selling of the greenback by exporters and banks amid gains in stocks which scaled record levels.

Currency dealers said continued foreign fund inflows and weakness in the greenback against other currencies overseas supported the rupee.

Furthermore, a higher opening in the domestic equity market gave the uptrend some momentum, they added.

On Friday, the rupee ended at a 32-month high of 63.37, up 4 paise on steady unwinding of the American currency by exporters.

9:35 am Buzzing: Shares of Larsen and Toubro (L&T) touched 52-week high of Rs 1,330.10, rising more than 1 percent in early trade as it has won orders worth Rs 2,265 crore.

The Transportation Infrastructure and Water & Effluent Treatment businesses of L&T Construction have jointly bagged three EPC orders worth Rs 2,265 crore from Andhra Pradesh Capital Region Development Authority (APCRDA).

The scope of work includes investigation, design & construction of roads, drains, culverts, water supply, sewerage, sewerage treatment plants, utility ducts for power & ICT, reuse waterline & avenue plantation for land pooling schemes in zones – 6, 7 and 10 areas of Amaravati Capital City.

9:29 am Pre-sales data: Realty firm Sobha's sales bookings increased by 92 percent to Rs 750.9 crore during the third quarter this fiscal on higher volumes and better average realisation.

The Bengaluru-based developer had sold properties worth Rs 390.8 crore in the year ago period.

According to an operational update, Sobha sold 9,33,365 sq ft (square feet) area during the third quarter, up 52 per cent from 6,13,652 sq ft in the same period last fiscal.

The average price realisation increased to Rs 8,045 per sq ft from Rs 6,369 per sq ft during the period under review.

9:21 am Asia Update: Asian markets were higher, following the positive lead from Wall Street in last session. Japan's Nikkei gained 0.9 percent, followed by China's Shanghai Composite (up 0.35 percent) and South Korea's Kospi (0.66 percent).

9:15 am Market Check: The market started off second week of the new year at record high levels on Monday as the Nifty crossed 10,600-mark for the first time, tracking positive lead from global peers.

The 30-share BSE Sensex was up 163.36 points at 34,317.21 and the 50-share NSE Nifty rose 46.90 points to 10,605.80.

About 1,255 shares advanced against 273 declining shares on the BSE.

Sun Pharma, Yes Bank, GAIL, L&T, Infosys, Lupin, HPCL and BPCL were early gainers, rising 1-2 percent while Bharti Airtel fell nearly 4 percent.

Nifty Midcap index was up 0.6 percent.

Sobha surged 10 percent post strong operational performance in Q3. Prestige Estates also gained 3.5 percent.

Jaypee Infratech, Sagar Cements and Goa Carbon rallied 4-9 percent.