Sensex, Nifty end on a sombre note, pharma stocks gain strong

24 Aug 2017

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3:30 pm Market at Close: The Indian market ended the session and the truncated week on a subdued note, with the Nifty holding on to 9850-mark.

The Sensex was up 28.05 points at 31596.06, while the Nifty was up 4.55 points at 9857.05. The market breadth was narrow as 1,425 shares advanced against a decline of 1,126 shares, and 153 shares are unchanged.

Pharmaceutical stocks were the top gainers on both indices, while Adani Ports, Bajaj Auto and HCL Tech were the top losers.

2:50 pm Results: Tutorial services provider Career Point's first quarter profit doubled to Rs 7 crore from Rs 3.4 crore on year-on-year basis.

Revenue grew by 25.6 percent year-on-year to Rs 22.6 crore from Rs 18 crore while EBITDA jumped 78.3 percent to Rs 8.2 crore from Rs 4.6 crore.

EBITDA margin expanded sharply to 36.3 percent from 25.6 percent YoY.

The stock rallied 18 percent.

2:35 pm SPVs sale deal: Dilip Buildcon shares rallied nearly 6 percent intraday on agreement for divestment of entire stake in 24 special purpose vehicles (SPVs).

The Bhopal-based road developer informed exchanges that it has signed a term sheet with Chhatwal Group Trust (Shrem Group) today for divestment by way of sale, transfer or disposal of 24 subsidiaries of the company.

Total project value of these subsidiaries stood at approximately Rs 10,500 crore.

"The sale is for 14 operational projects, and 4 under construction projects & 6 HAM projects, which are at different stages of under construction and pre-construction," Dilip Buildcon said.

It had signed agreement with Shrem Infrastructure with respect to SPV - DBL Tuljapur Ausa Highways, which is also being covered under term sheet signed today, it added.

2:15 pm Market Check: Equity benchmark indices continued to trade just above the flat line, with the Nifty trading above 9850-mark.

The Sensex was up 30.92 points at 31598.93, while the Nifty was up 5.45 points at 9857.95. The market breadth was narrow as 1,344 shares advanced against a decline of 1,047 shares, while 129 shares were unchanged.

Lupin, Sun Pharmaceuticals, and Aurobindo Pharma gained the most on both indices, while Adani Ports, Bajaj Auto and HCL Tech were the top losers.

1:55 pm Management Speak: On Monday, McDonald's India terminated its franchise agreements with Connaught Plaza Restaurants Limited (CPRL), which runs 169 restaurants in north and east India. Also McDonald's has filed an appeal with the National Company Law Appellate Tribunal (NCLT) challenging the reinstatement of Bakshi.

In an interview to CNBC-TV18, Vikram Bakshi, MD of CPRL spoke at length about the agreement.

"We go right back to the judiciary who gave me the right to come back and work in the company and to bring it back to its old glory. McDonald's doesn't want it. So I guess the decision finally have to be made, one way or the other. What you are forgetting is that I did not start this," said Bakshi.

If partners have to part, they have to part on the basis of policy of India, he added.

He further said that according to Indian policy a foreign company wanting to buy out the shareholding of an Indian partner, it can do so on the basis of fair market value.

1:35 pm Appointment: Tata Sons today announced the appointment of Roopa Purushothaman as its Chief Economist and Head of Policy Advocacy.

Purushothaman, who will join Tata Sons with effect from September 1, comes from Everstone Capital, where she was leading the research function.

"In her role, Purushothaman will drive macroeconomic research as well as all policy and advocacy initiatives as relevant to the businesses of the Tata group," Tata Sons said in a statement.

1:18 pm Market Check: Equity benchmarks continued to consolidate in afternoon, with the Nifty hovering around 9,860 level as investors looked for triggers.

The 30-share BSE Sensex was up 45.64 points at 31,613.65 and the 50-share NSE Nifty gained 12.65 points at 9,865.15.

The BSE Midcap and Smallcap indices gained half a percent each. About 1,354 shares advanced against 998 declining shares on the BSE.

Equity market will remain shut on Friday for Ganesh Chaturthi holiday.

1:10 pm Liquor stocks in focus: Investors cheered liquor stocks, as key companies in the sector rose between 2 and 15 percent intraday.

United Spirits (up 6 percent), Globus Spirits (5 percent), Pincon Spirits (8 percent), Radico Khaitan (5 percent) and United Breweries gained around 2 percent.

The development comes after a newspaper reported a clarification issued by the Supreme Court stating that the highway liquor ban does not apply within city limits. This is seen as bringing in a huge relief to these companies.

The publication further laid out what the apex court said in its order. "The purpose of the directions contained in the order dated December 15, 2016 is to deal with the sale of liquor along and in proximity of highways properly understood, which provide connectivity between cities, towns and villages. The order does not prohibit licensed establishments within municipal areas. This clarification shall govern other municipal areas as well. We have considered it appropriate to issue this clarification to set at rest any ambiguity."

12:58 pm Realty monetisation: State-run telecom operator MTNL told NewsRise that it is awaiting government approval for its proposal to sell unused properties in major metro cities New Delhi and Mumbai.

It expects Rs 3,500-4,500 crore from the sale of properties in both cities.

The reduction in Rs 15,000 crore loan book is depending on realty monetisation, said MTNL which expects approval for sale of some properties soon.

12:45 pm Assets sale deal: Dilip Buildcon hits record high of Rs 608.95, up 5.4 percent intraday Thursday on likely assets sale deal with AION Capital.

Sources told CNBC-TV18 that private equity fund AION Capital has emerged as frontrunner to buy the stake in company's assets and the deal is expected to finalise within a month.

As per this deal, the road-focused engineering procurement construction contractor will first transfer its completed assets to a special purpose vehicle (SPV).

Hence, initially Dilip Buildcon will transfer its nine completed projects to the SPV, followed by transfer of 10 more under-construction projects upon completion, sources said.

CNBC-TV18 learnt that AION Capital will have 75 percent stake in SPV and the rest will be held by Dilip Buildcon.

12:37 pm Europe trade: Europeans stocks opened higher as investors await comments on monetary policy from the Jackson Hole meeting.

The pan-European Stoxx 600 was 0.32 percent higher in early deals with most sectors moving in positive territory.

Concerns over US President Donald Trump's comments threatening to shut down the government eased overnight. In the meantime, investors will be focused on addresses from central bankers at the Jackson Hole economic symposium.

European Central Bank President Mario Draghi, who is set to address the group on Friday, gave no indication on the future steps of the central bank in a speech in Germany on Wednesday.

12:24 pm Market Check: Equity benchmarks continued to trade in a tight range in afternoon due to lack of triggers at domestic as well as global level.

The 30-share BSE Sensex was up 21.91 points at 31,589.92 and the 50-share NSE Nifty gained 4.20 points at 9,856.70.

The BSE Midcap and Smallcap indices continued to outperform benchmarks, up nearly half a percent each as about five shares advanced for every four shares falling on the BSE.

Healthcare stocks were in demand as Aurobindo Pharma, Lupin, Sun Pharma, Dr Reddy's Labs, Wockhardt, Divis Labs, Ajanta Pharma and Glenmark rallied 2-9 percent.

12:05 pm USFDA nod: Zydus Cadila has received the final approval from the US Food and Drug Administration to market Candesartan Cilexetil tablets USP 4 mg, 8 mg, 16 mg and 32 mg.

The drug is used to treat high blood pressure (hypertension) in adults. It will be manufactured at group's formulations manufacturing facility at Moraiya, Ahmedabad.

The group now has more than 140 approvals from USFDA.

11:50 am Earnings review: "June quarter earnings were disappointed as we were expecting 2 percent decline in earnings of our universe of 174 stocks but the actual decline was 9 percent in earnings," Gautam Duggad, Head of Research, institutional equities at Motilal Oswal Securities said.

So overall it was below expectations. GST related volatility was expected but despite that also overall earnings season was not good, he feels.

All sectoral earnings barring metals disappointed in Q1FY18, he said.

He expects 10-11 percent earnings growth for full year (FY18) against 7.5 percent in same period last year as second half of the year will have low base due to demonetisation factor that hit earnings in second half of FY17.

To that extent, there will be some optical jump to earnings on headline numbers, but underlying operating environment is not showing any meaningful recovery, whether it is capex sector, banks asset quality or broader consumption environment, Duggad said.

11:35 am Order win: Shares of Indian Hume Pipe Company advanced nearly 4 percent intraday as it has received order worth Rs 100.46 crore.

The company has secured a work order of Rs 100.46 crore from Municipal Corporation Bilaspur, Chhattisgarh.

The order includes the augmentation of water supply scheme part-II-distribution system, Bilaspur (Chattisgarh) under AMRUT mission.

The work is to be completed within 24 months.

11:20 am Buzzing: Shares of MEP Infrastructure Developers surged 6 percent intraday as it has received toll collection rights from NHAI.

"The company has received the letter of acceptance (LOA) from National Highways Authority of India (NHAI) informing that MEP has been engaged as 'user fee collection Agency on the basis of Competitive Bidding through e-tender for Chennasamudram fee plaza of NH-4, in the state of Tamil Nadu," company said in press release.

The terms of the contract is of one year.

The operations will commence after complying with the statutory formalities viz. submission of performance security, signing of contract as stated in the LOA.

The contractual amount for the said project is Rs 74.70 crore payable to NHAI on a weekly basis over a period of 1 year.

11:05 am Deposit rates: Bank of India slashed savings deposit rate by 50 bps to 3.5 percent for balance upto Rs 50 lakh but kept savings deposit rate unchanged at 4 percent for balance above Rs 50 lakh.

10:58 am Deal: Private sector lender IndusInd Bank has emerged as frontrunner for deal with non-banking finance company Bharat Financial Inclusion, according to sources that told CNBC-TV18.

IndusInd Bank will discuss merger proposal with the board this week and Bharat Financial's M R Rao is likely to present IndusInd's offer to its board next week.

IndusInd Bank, Bharat Financial deal will be share-swap deal, sources said, adding the deal is likely by mid-September.

10:45 am SC Verdict: SC declared right to privacy as a fundamental right.

The bench gave a unanimous verdict that right to privacy as a fundamental right under the Article 21.

10:23 am Market Check: Benchmark indices remained volatile in morning trade, with the Nifty hovering around 9,850 level as investors looked for triggers after digesting Infosys and PSU banks consolidation news.

The 30-share BSE Sensex was up 17.56 points at 31,585.57 and the 50-share NSE Nifty rose 4.20 points to 9,856.70.

The broader markets outperformed benchmarks as the BSE Midcap and Smallcap indices gained 0.3 percent each on positive breadth.

About 1,113 shares advanced against 807 declining shares on the BSE.

Infosys, Tata Motors, Lupin and Sun Pharma top four contributors to Sensex' gains but upside is capped by HDFC Group stocks.

9:55 am Buzzing: Shares of V-Mart Retail rose nearly 3 percent intraday on the back of opening of two new stores.

The company has opened two new fashion stores in the state of Uttar Pradesh and Jharkhand.

With the opening of these stores the company has total of 17 composite & 47 fashion stores in Uttar Pradesh and 9 fashion stores in Jharkhand.

This takes the total number of stores to 151 stores in 127 Cities across 14 states, with 37 composite stores and 114 fashion stores with a total area of approximately 12.79 lakh square feet.

9:45 am Stake sale: Share price of Mcleod Russel rose 2.5 percent intraday as the company is going to sell its loss making unit.

The company has decided to dispose of its Bhatpara Tea Estate, a loss making unit of the Company in Dooars, subject to necessary approval/s.

On August 23, 2017 the company has entered into an agreement for sale with Voom Food Industries of Siliguri, West Bengal.

The company will receive around Rs 13.21 crore from sale and the sale process will get completed after the sale permission is obtained from the government of West Bengal.

9:38 am Infosys in focus: Sources told CNBC-TV18 that Infosys is in initial stages to appoint selection panel to oversee selection. The panel, which aims to complete process within 4 months, is also in charge of overviewing board composition.

Search panel may have founders, board members & independent business leaders, sources said.

Its 10 key clients expressed their concern in writing on what lies ahead in terms of operations. They sought clarity on CEO succession & operational changes and also sought clarity on issue with founders and the way forward.

Sources said chairman R Seshasayee & co-chair Ravi Venkatesan will move on only after situation is stable.

9:28 am FII View: Jonathan Garner of Morgan Stanley said key country overweights of China and India are amongst the best country performers in 2017 so far.

He recommends investors to focus on alpha rather than beta.

"Within India, we are overweight IOC and Jain Irrigation," he said.

9:25 am Buzzing: Shares of Alembic Pharmaceuticals gained 3 percent in the early trade as it has sold its formulations manufacturing facility at Baddi.

The company has sold its formulations manufacturing facility at Baddi on slump sale basis to Scott Edil Pharmacia (SEPL), a company engaged in the business of pharmaceuticals products.

SEPL does not belong to the promoter / promoter group / group companies and is not related party of the company.

The turnover and networth of the said manufacturing facility for the last financial year vis-a-vis turnover and networth of the company is insignificant.

The company continues to meet its domestic formulation demand from Sikkim unit and international formulation demand from its Panelav unit.

9:15 am Market Check: Equity benchmarks opened moderately higher amid mixed Asian cues on Thursday.

The 30-share BSE Sensex was up 44.21 points at 31,612.22 and the 50-share NSE Nifty rose 12.25 points to 9,864.75.

Infosys, ITC, TCS, Reliance Industries, L&T, Sun Pharma, Lupin and M&M gained while HDFC Bank, Maruti Suzuki, Kotak Mahindra Bank, HUL, Bajaj Auto and SBI were under pressure.

Nifty Midcap was up 0.2 percent.

SREI Infrastructure shares gained 3.5 percent as Bharat Road Network IPO will open from September 6-8.

United Spirits, United Breweries, Alembic Pharma, Mcleod Russel, Praj Industries and Ugar Sugar Works gained up to 6 percent.

Fortis Healthcare, DLF, Allahabad Bank, Dena Bank, SPARC, Andhra Bank, Castrol, Jaypee Infratech and Union Bank were under pressure.

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