Sensex, Nifty post biggest weekly gains in 3 months; SBI up 6%

27 May 2016

3:30 pm Market closing: The market ended with super gains boosted by index heavyweights. The Sensex closed up 286.92 points or 1 percent at 26653.60, and the Nifty was up 79.90 points or 0.9 percent at 8149.55. About 1401 shares have advanced, 1173 shares declined, and 189 shares are unchanged.

SBI gained 6 percent while Sun Pharma was up 6 percent. Adani Ports, Reliance and Bajaj Auto were other gainers in the Sensex. Among losers were ONGC, Axis Bank, ITC, GAIL and NTPC.

2:59 pm Market Update: The Sensex rose 269.16 points or 1.02 percent to 26635.84 and the Nifty jumped 81.80 points or 1.01 percent to 8151.45.

About 1363 shares advanced against 1135 declining shares on BSE.

2:45 pm Earnings: State-run oil marketing company Hindustan Petroleum Corporation's (HPCL) fourth quarter earnings beat analysts' expectations on all counts. Profit shot up 49 percent sequentially to Rs 1,553 crore, partly driven by other income and better operational performance.

Revenue declined 3 percent to Rs 42,195 crore in March quarter compared to Rs 43,500 crore in December quarter while other income doubled to Rs 408 crore from Rs 204 crore on sequential basis.

Operating profit (EBITDA - earnings before interest, tax, depreciation and amortisation) increased 18.8 percent to Rs 2,661 crore and margin has seen expansion of 110 basis points at 6.3 percent for the quarter.

According to analysts polled by CNBC-TV18, profit was expected at Rs 1,216 crore on revenue of Rs 38,791 crore with operating profit at Rs 2,273 crore and margin at 6 percent in Q4.

2:30 pm Big leap: Shares of Jet Airways surged 6 percent intraday after its posted first annual profit after 8 years. Lower fuel expenses and cost control measures aided the airline's performance in FY16. The airline company's net profit zoomed to Rs 397 crore in fourth quarter of FY16 from a loss of Rs 1729 crore in corresponding quarter last fiscal. During the quarter, its fuel expenses fell 25 percent at Rs 999 crore against Rs 1334 crore in year-ago period. Its total income, in Q4, rose 3.6 percent at Rs 5245.3 crore compared to Rs 5064 crore year-on-year. Other income in the period was at Rs 206 crore versus Rs 225 crore (YoY). In Q4, its EBITDA stood at Rs 815.9 crore from EBITDA loss of Rs 340 crore (YoY).

The market gained more steam in afternoon trade with the Sensex rising over 250 points, driven by index heavyweights Infosys and Reliance Industries. The broader markets continued to outperform the BSE Midcap index climbing 1.5 percent.

The 30-share BSE Sensex surged 276.09 points or 1.05 percent to 26642.77 and the 50-share NSE Nifty rose 85.35 points or 1.06 percent to 8155 but the market breadth was not that strong. About 1373 shares advanced against 1047 declining shares on Bombay Stock Exchange.

Sun Pharma spiked 5 percent after Taro earnings. Its subsidiary's profit declined 24.5 percent but operational performance was strong due to a 16.4 percent fall in R&D cost. Operating margin expanded by 400 basis points at 69 percent YoY.

Lupin gained over 1 percent after Mandideep and Aurangabad units have received establishment inspection report from US FDA. Mandideep is the 2nd largest revenue contributor to US business after Goa unit.

Infosys, Reliance Industries, HDFC, ICICI Bank, Adani Ports and HUL gained 1-4 percent.

SBI came off day's high, up 0.8 percent after higher-than-expected slippages of Rs 30,313 crore and more than 2-fold increase in provisions in Q4. Profit declined 66 percent while NII grew by 4 percent during the quarter.

European stocks were on lower as investors looked ahead to comments from US Federal Reserve Chair Janet Yellen. France's CAC and Germany's DAX declined 0.2 percent each.

1:50 pm Market outlook: Though a forecast for good monsoon is being made, how it pans out will be crucial to earnings cycle in FY17, Nitin Jain, Principle Fund Manager at Kotak Mahindra AMC, told CNBC TV-18. He, however, said that he expects earnings cycle to pick up in the second half of the year. Good monsoon, monetary policy are key triggers to improvement in earnings cycle, he said. He said, that the impact of RBI's interest rate cut is yet to be seen and is one of the triggers that one should watch out for in the second half of the year. The company is positive on consumer durables, oil marketing companies and private banks, he said.

1:30 pm SBI Result: India's largest lender State Bank of India 's (SBI) fourth quarter standalone profit fell sharply by 66 percent to Rs 1,263.8 crore, impacted by more than 2-fold increase in provisions and slow growth in net interest income. Profitability was supported by other income, operating profit and tax write-back. Net interest income, the difference between interest earned and interest expended, grew by 3.9 percent to Rs 15,290.76 crore from Rs 14,711.76 crore YoY. Gross advances increased 13.04 percent to Rs 15.09 lakh crore and deposits growth was 9.76 percent at Rs 17.3 lakh crore as of March 2016.

The market is surging ahead with the Nifty breaching 8150. The Sensex is up 222.29 points or 0.8 percent at 26588.97, and the Nifty up 70.60 points or 0.8 percent at 8140.25. About 1369 shares have advanced, 1017 shares declined, and 198 shares are unchanged.

Sun Pharma, Adani Ports, Lupin, Reliance and Infosys are top gainers while ONGC, Axis Bank, NTPC, L&T and ITC are losers in the Sensex.

Amid a weak global trend, gold prices drifted lower by 0.15 percent to Rs 28,695 per ten grams in futures trade today as participants cut their bets. Analysts said the weakness in gold futures was mostly in tune with a subdued trend overseas as investors anticipate higher borrowing costs in the US.

12:40 pm Europe opens: European stocks opened lower as markets looked ahead to comments from US Federal Reserve Chair Janet Yellen later Friday.

The pan-European Stoxx 600 index opened 0.2 percent lower. Basic resources and healthcare were the only sectors to open in positive territory.

Markets in Asia were mostly higher on the final trading day of the week as traders awaited direction from the US Federal Reserve's chief. Yellen is expected to answer questions Friday afternoon in the US as she receives an award at Harvard University.

12:20 pm Strides Shasun in news: Strides Shasun today said it has received approval from the US health regulator for anti-biotic and anti-protozoal tablets Metronidazole.

The company has received approval from the US Food and Drug Administration (USFDA) for Metronidazole tablets USP, 250 mg and 500 mg, Strides Shasun said in a BSE filing.

The product received approval in 17 months under the USFDA's new product clearance regime of GDUFA. The product is ready for immediate launch, it added.

According to IMS sales data, the US market for Metronidazole tablets is around USD 50 million.

The company will manufacture the product at its oral dosage facility in Bengaluru.

12:00 pm Market Check
Bulls kept its control over Dalal Street as equity benchmarks maintained morning gains supported by pharma, technology, select oil & banks stocks. Asian markets were mostly higher ahead of cues from US Federal Reserve chief Janet Yellen on rates.

The 30-share BSE Sensex gained 169.26 points or 0.64 percent at 26535.94 and the 50-share NSE Nifty rose 57.50 points or 0.71 percent to 8127.15. The broader markets outperformed benchmarks with the BSE Midcap index rising 1.4 percent.

About 1375 shares advanced against 846 declining shares on Bombay Stock Exchange.

Reliance Industries, Infosys, Sun Pharma, ICICI Bank, Lupin, Adani Ports and SBI gained 1-4 percent while L&T, ITC, Axis Bank, ONGC and NTPC fell around a percent.

11:45 am SBI poll: Country's largest lender State Bank of India (SBI) is likely to disappoint analysts with its fourth quarter earnings as pressure on asset quality may continue for the bank given the high rate of slippages. Earnings will be announced on May 27. Overall slippages can be in the range of Rs 20,000-25,000 crore for the quarter, including likely slippages through asset quality review of Rs 15,000 crore, against Rs 20,692 crore in Q3FY16 and Rs 4,769 crore in Q4FY15. Standalone net profit is expected to fall 48.8 percent to Rs 1,916 crore and net interest income is seen declining 5.4 percent to Rs 13,915.1 crore compared to year-ago period, according to CNBC-TV18's consensus estimates.

11:30 am Earnings review: Surprising fourth quarter results, loan write-offs in FY16 and spotting greenshoots in some of the sectors have brought in cheers to the market, said Tushar Pradhan, CIO HSBC Global AMC, India in an interview with CNBC-TV18. The Nifty clocked a high on Thursday breaching the 8000 levels, last seen in November 2015. US Fed rate hike fears are losing their fizz, he said, adding that benign liquidity conditions, too, have led to the buoyancy in the stock market. Pradhan believes that this is the right time to invest in the Indian equity market but one must have a patient two-year outlook going forward.

Benchmark indices are roaring with gains in June Futures and Options series. The Sensex is up 196.12 points or 0.7 percent at 26562.80 and the Nifty is up 63.80 points or 0.8 percent at 8133.45. About 1355 shares have advanced, 702 shares declined, and 137 shares are unchanged.

Sun Pharma, Adani Ports, Lupin, ICICI Bank and SBI are top gainers while ITC, NTPC, L&T, ONGC and Tata Motors are losers in the Sensex.

Oil prices dipped, pulling back further from the psychological USD 50 level as traders took profit and expectations of tighter global supply receded. Oil prices had topped USD 50 a barrel for the first time this year yesterday following production disruptions in Canada and Nigeria as well as a drop in US crude inventories.

Prices have rebounded from below USD 30 a barrel in early 2016 but they are still less than half their levels in mid- 2014, when crude was commanding more than USD 100 a barrel.

10:59 am Market Update: Equity benchmarks remained strong as the Sensex surged 192.53 points or 0.73 percent to 26559.21 and the Nifty jumped 64.80 points or 0.80 percent to 8134.45.

About 1346 shares advanced against 697 declining shares on BSE.

10:40 am Oil Update: Oil prices dipped in Asia today, pulling back further from the psychological USD 50 level as traders took profit and expectations of tighter global supply receded.

US benchmark West Texas Intermediate for July delivery was down 37 cents at USD 49.11 a barrel while Brent North Sea crude, the European standard, was 39 cents lower at USD 49.20.

Oil prices had topped USD 50 a barrel for the first time this year yesterday following production disruptions in Canada and Nigeria as well as a drop in US crude inventories.

The USD 50 level is an important point because it's the price that makes economic sense for suppliers to start pumping again, CMC Markets trader Alex Wijaya told AFP.

10:20 am Earnings estimates: Country's largest lender State Bank of India (SBI) is likely to disappoint analysts with its fourth quarter earnings as pressure on asset quality may continue for the bank given the high rate of slippages. Earnings will be announced on May 27.

Overall slippages can be in the range of Rs 20,000-25,000 crore for the quarter, including likely slippages through asset quality review of Rs 15,000 crore, against Rs 20,692 crore in Q3FY16 and Rs 4,769 crore in Q4FY15.

Standalone net profit is expected to fall 48.8 percent to Rs 1,916 crore and net interest income is seen declining 5.4 percent to Rs 13,915.1 crore compared to year-ago period, according to CNBC-TV18's consensus estimates.

Analysts expect loan growth to remain around industry levels and treasury income to support other income.

10:00 am Market Check
Equity benchmarks continued to see buying interest on first day of June series. The Nifty is inching towards 8150 level, up 55.65 points or 0.69 percent at 8125.30.

The Sensex rose 168.30 points or 0.64 percent to 26534.98, led by pharma, banks and technology stocks. The broader markets also participated in rally with the BSE Midcap and Smallcap indices rising 0.7 percent each. The market breadth remained strong as about two shares advanced for every share declining on Bombay Stock Exchange.

Sun Pharma surged 4 percent after Taro earnings. Its subsidiary's profit declined 24.5 percent but operational performance was strong due to a 16.4 percent fall in R&D cost. Operating margin expanded by 400 basis points at 69 percent YoY.

Lupin gained nearly 3 percent after sources told CNBC-TV18 that Mandideep unit has received establishment inspection report from US FDA. It is the 2nd largest revenue contributor to US business after Goa unit.

ITC, Tata Motors, L&T and NTPC were marginally down on profit booking.

9:55 am Modi governemnt review: As the Narendra Modi-led government completes two years in office, industry body CII today said the administration has initiated "big bang" structural reforms like setting up NITI Aayog and devolving more power to states.

"In two years, the NDA government has strategically navigated the Indian economy to all-round stability. It has undertaken big bang structural reforms, including more power in the hands of states, establishment of NITI Aayog and empowerment of markets," CII Director General Chandrajit Banerjee said.

"For investors, critical achievements of the government relate to inflation control, more public investment in infrastructure, social security, fiscal management and tax administration," he added.

9:45 am Market extends gains: The Sensex is up 209.18 points or 0.8 percent at 26575.86, and the Nifty is up 65.60 points or 0.8 percent at 8135.25. About 1055 shares have advanced, 523 shares declined, and 79 shares are unchanged.

Sun Pharma, Lupin, SBI, Adani Ports and Cipla are top gainers while Tata Motors, ITC, BHEL, NTPC and Bharti Airtel are losers in the Sensex.

9:30 am Market outlook: Discernable green shoots are visible in the economy now, says Dipankar Choudhary of Centrum Broking, adding that momentum is visible in sectors like airline, capital goods, coal and automobile. Earnings too seem to be on an upward trend, he added. Speaking from the sidelines of 'Centrum Corporate Day 2016' conference, Choudhary says that while the balance is tilting towards a large number of upgrades for companies, downgrades are also happening. These downgrades are especially in the banking sector, which once again reported disappointing earnings.

After a stellar rally yesterday, the market has opened strong on Friday. The Nifty has touched 8100 briefly beginning June series . The 50-share index is up 24.25 points or 0.3 percent at 8093.90. The Sensex is up 78.72 points or 0.3 percent at 26445.40. About 504 shares have advanced, 204 shares declined, and 34 shares are unchanged.

Sun Pharma, Lupin, SBI, Axis Bank and Adani Ports are up while L&T, Bajaj Auto, ICICI Bank, Dr Reddy's Labs and HDFC Bank are losers in the Sensex.

The Indian rupee extended gains. The currency has opened at 67.02 a dollar, up 15 paise compared to previous day's closing value of 67.17 a dollar. The USD-INR pair after briefly trading above 67.50 per dollar has moved back into the 66.50-67.50 range tracking global dollar weakness and positive equities.

Ashutosh Raina of HDFC Bank says the equity markets are consolidating recent gains, oil is edging higher and dollar is slightly weaker, adding markets await the US Q1 GDP data.

Asian stocks pulled ahead after patches of US data continued to paint the world's largest economy in a positive light, while the dollar was on the defensive against its major peers. The Dow inched down 0.1 percent and the S&P 500 ended flat overnight after rising strongly for two days as advancing utilities offset declines in materials, banks and other cyclical industries.