Nifty ends above 8400, Sensex up over 100 points; Infosys up 3%

12 Jan 2017

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3:30 pm Market closing: The market has closed higher with the Sensex up 106.75 points or 0.4 percent at 27247.16. The Nifty ended up 26.55 points or 0.3 percent at 8407.20. About 1201 shares have advanced, 1560 shares declined, and 343 shares are unchanged.

NTPC, Infosys, L&T, Cipla and Wipro were gainers while Lupin, HUL, Coal India, Dr Reddy's Labs and ITC were losers in the Sensex.

2:59 pm Market update: Equity benchmarks remained higher with the Sensex up 90.72 points at 27231.13 and the Nifty up 20.90 points at 8401.55.

2:55 pm Power capacity: Tata Power Renewable Energy (TPREL) announced the commissioning of 36 MW wind capacity of a 100 MW wind farm (under construction) at Nimbagallu in Andhra Pradesh, and 49 MW solar plant at Kayathar, Tamil Nadu, under Welspun Renewable Energy Private Limited (WREPL).

With these, the operating renewable energy capacity of TPREL grows to 1,876 MW, comprising 841 MW wind, 915 MW solar, and 120 MW waste heat recovery capacity as of today. In FY16, Tata Power Renewable Energy Ltd increased its operational capacity by 1169 MW.

2:40 pm Earnings estimates: IT services exporter Infosys' third quarter earnings are expected to be subdued due to seasonal weakness and RBS's contract cancelation. All eyes are on its full year guidance that had been changed twice from the start of current financial year.

Profit is seen falling 1 percent quarter-on-quarter to Rs 3,569 crore and dollar revenue is also likely to slip 1 percent to USD 2,560 million in the quarter ended December 2016, according to average of estimates of analysts polled by CNBC-TV18.

Analysts will closely watch Infosys' full year revenue guidance as its revenue growth momentum has been lost when it saw the contract cancellation at RBS (that contributed 1.4 percent of revenue).

2:30 pm Iran oil price target: Iraq is abiding by an agreement among global oil producers to cut production and wants to see an oil price of around USD 65 a barrel, the country's oil minister said in Abu Dhabi.

Iraq is "hoping for a better price", Jabar Ali al-Luaibi told reporters on the sidelines of a conference. "We are looking at USD 65, something like that". Brent crude is now around USD 55 a barrel.

The Iraqi oil ministry said on Tuesday that it had cut its production by 160,000 barrels per day since the beginning of January. By the end of the month, production would be cut by 210,000 bpd, it said.

2:20 pm GDP growth: India's GDP growth numbers are expected to see a decline of 2 percent in the third and fourth quarters of the current fiscal, as effective currency in circulation has contracted significantly, says an HSBC report.

However, it said, as enough notes are printed, growth is likely to return to the "7 percent ballpark".

According to the global financial services major, the government's decision to abolish old stock of high denomination currency (demonetisation) and issue new notes (remonetisation) could have a mixed impact on the macro economy over a year.

"Using the cash elasticity of GDP, we estimate that growth could be about 2 pp lower in third quarter and fourth quarter of 2016-17 (ending March), given that effective currency in circulation has contracted by 60 percent (as of early-December)," HSBC said in a research note.

2:00 pm Market Check
Benchmark indices were higher amid choppy trade while broader markets continued to underperform in afternoon. TCS and Infosys gained ahead of December quarter earnings.

The 30-share BSE Sensex rose 88.33 points to 27228.74 and the 50-share NSE Nifty gained 21 points at 8401.65. About 1480 shares declined against 1110 advancing shares on the BSE.

Power stocks charged up today with the BSE Power index rising more than 3 percent. NTPC, Torrent Power, Power Grid, Tata Power, Adani Power, JSW Energy and Reliance Power rallied 2-5 percent.

NHPC also surged 10.4 percent. The company announced dividend of Rs 1.7 per share against expectations of Rs 1.4 per share.

Bourses in Europe were lower as investors looked at fresh corporate reports and digested the latest remarks by President-elect Donald Trump. France's CAC, Germany's DAX and Britain's FTSE fell 0.2-0.5 percent.

Gold rose to a 7-week high today on a weaker dollar after US President-elect Donald Trump provided little clarity on future fiscal policies at a press briefing.

1:45 pm European market: Bourses in Europe opened lower after President-elect Trump accused pharmaceuticals of "getting away with murder" and recommitted to a "border tax" in the US. The pan-European Stoxx 600 was 0.34 percent lower with most sectors moving south.

In terms of data, the European Central Bank will release its latest monetary policy meeting accounts and the euro zone will receive its latest industrial production figures. In France, the socialist party is hosting the first debate for the primaries ahead of presidential elections later this year.

1:30 pm Pharma reactions: When US President-elect Donald Trump in his first press conference yesterday railed against local pharmaceutical companies, drug firms back home felt a chill. Shares of Sun Pharmaceutical, Dr Reddy's Laboratories, Aurobindo Pharma, among others were down in the range of 1-2 percent on the BSE today.

However, Wockhardt Chief Habil Khorakiwala says that Indian generic companies as a whole belong to a competitive industry in the US and therefore there is no scope for government intervention there.

What Trump is saying implies to generic companies that have a single source of supply, he said.

Speaking on the impact of Trump's comments on pharma companies, Anmol Ganjoo, Director, JM Financial said that the important factor is the potential price bidding. If the target happens to be the inflation in overall healthcare spends, then Indian companies like Wockhardt should be a net beneficiary, he said.

Benchmark indices consolidated with the Nifty hovering around 8400. The 50-share index is up 22.50 points or 0.3 percent at 8403.15 while the Sensex is up 92.04 points or 0.3 percent at 27232.45.

NTPC, L&T, Infosys, ONGC and ICICI Bank are top gainers while Lupin, Dr Reddy's Labs, Coal India, Sun Pharma and BHEL are losers in the Sensex.

India's GDP growth numbers are expected to see a decline of 2 percent in the third and fourth quarters of the current fiscal, as effective currency in circulation has contracted significantly, says an HSBC report.

However, it said, as enough notes are printed, growth is likely to return to the "7 percent ballpark".

According to the global financial services major, the government's decision to abolish old stock of high denomination currency (demonetisation) and issue new notes (remonetisation) could have a mixed impact on the macro economy over a year.

1:20 pm Market update: Benchmark indices remained higher with the Sensex rising 114.19 points to 27254.60 and the Nifty climbing 28.90 points to 8409.55.

About 1417 shares declined against 1127 advancing shares on the BSE.

12:59 pm Interview: When US President-elect Donald Trump in his first press conference yesterday railed against local pharmaceutical companies, drug firms back home felt a chill. Shares of Sun Pharmaceutical, Dr Reddy's Laboratories, Aurobindo Pharma , among others were down in the range of 1-2 percent on the BSE today.

However, Wockhardt   Chief Habil Khorakiwala says that Indian generic companies as a whole belong to a competitive industry in the US and therefore there is no scope for government intervention there.

What Trump is saying implies to generic companies that have a single source of supply, he said.

12:50 pm Buzzing: Techno Electric & Engineering Company shares rallied 5 percent intraday after sale of wind power assets by the company.

The company has sold 33 MW wind power assets in Tamil Nadu at an effective valuation of Rs 165.19 crore.

Post this transaction, it continues to hold 12 MW of wind power assets.

Techno Electric along with its subsidiary Simran Wind Project will have a portfolio of 129.9 MW of wind power asset post above transaction, the Kolkata-based engineering, procurement and construction services provider said in its filing.

12:35 pm Dollar slips: The dollar skidded today, moving back toward one-month lows against the perceived safe-haven yen, after President-elect Donald Trump's highly-awaited news conference failed to offer details on his promises to boost fiscal spending and cut taxes.

Trump, who takes office on January 20, did not elaborate on his planned growth policies, and instead took aim at targets that included pharmaceutical companies and US intelligence agencies.

12:20 pm Earnings estimates: Software services provider TCS' third quarter earnings are expected to be week on account of seasonality (due to year-end furloughs) and cross currency headwinds. Profit is seen falling 1.5 percent sequentially to Rs 6,489 crore and revenue may grow 1 percent to Rs 29,577 crore in Q3.

According to average of estimates of analysts polled by CNBC-TV18, revenue in dollar terms may increase only 0.2 percent to USD 4,382 million and constant-currency revenue growth may be around 1-1.5 percent compared with previous quarter.

Analysts say cross-currency movement is likely to cause revenue growth headwind. During the quarter, US dollar appreciated 5.3 percent against pound, 3.2 percent against euro and 1 percent against Australian dollar.

12:00 pm Market Check
Benchmark indices maintained uptrend amid volatility in noon trade but broader markets continued to underperform. Banks, infra and select technology stocks gained while the selling continued in FMCG, healthcare and HDFC group stocks.

The 30-share BSE Sensex rose 81.40 points to 27221.81 and the 50-share NSE Nifty gained 19.10 points at 8399.75. The market breadth was negative as about 1332 shares declined against 1069 advancing shares on the BSE.

Power stocks were in limelight today. NTPC, Power Grid Corporation and Tata Power gained 3-4 percent.

L&T and Infosys were leading contributors to Sensex's gains, up 2 percent each whereas ITC, HDFC, Sun Pharma, Lupin, Dr Reddy's Labs, HUL and TCS were under pressure.

Asian markets were lower with Japanese shares falling as dollar/yen slipped to a one-month low, after President-elect Donald Trump held a raucous and freewheeling press conference that analysts said was sparse on economic policy details.

Oil prices were steady after US crude and refined product stocks sent mixed messages to the market, with ongoing uncertainty over OPEC compliance with planned output reductions also in focus.

11:45 am Exclusive: The Central Board of Direct Taxes' released recently circular proposes to bring foreign portfolio investors under the purview of a withholding tax. The circular ever since it was released late last year has been sending jitters down the spines of FPIs.

FPIs fear such a move could lead to double – and even triple -- taxation. Transfers among India-dedicated, according to the circular, will be levied on indirect taxes.

The onus will fall on the fund manager to withhold tax for clients at the time of redemption. It will also impact feeder funds holding more than 5 percent stake in any Indian company.

11:30 am Result poll: Software services provider Tata Consultancy Services ' (TCS) third quarter earnings are expected to be week on account of seasonality (due to year-end furloughs) and cross currency headwinds. Profit is seen falling 1.5 percent sequentially to Rs 6,489 crore and revenue may grow 1 percent to Rs 29,577 crore in Q3. According to average of estimates of analysts polled by CNBC-TV18, revenue in dollar terms may increase only 0.2 percent to USD 4,382 million and constant-currency revenue growth may be around 1-1.5 percent compared with previous quarter. Analysts say cross-currency movement is likely to cause revenue growth headwind. During the quarter, US dollar appreciated 5.3 percent against pound, 3.2 percent against euro and 1 percent against Australian dollar.

The market continues to rise but pharma stocks are under pressure. The Sensex is up 115.41 points or 0.4 percent at 27255.82, and the Nifty up 26.65 points or 0.3 percent at 8407.30. About 1061 shares have advanced, 1153 shares declined, and 341 shares are unchanged.

NTPC, Infosys, L&T, ONGC and ICICI Bank are top gainers while Coal Indiam Adani Ports, Sun Pharma, Dr Reddy's Labs and BHEL are losers in the Sensex.

Continuing its rising streak for the fourth straight day, gold prices rose further by 0.17 percent to Rs 28,347 per 10 grams in futures trading today as speculators engaged in widening in their bets, taking positive
cues from global markets.

Analysts said, increasing of positions by participants on the back of a firming trend overseas, mainly kept gold prices higher at futures trade.

10:59 am Market Update: Equity benchmarks retained upside with the Sensex rising 103.32 points to 27243.73 and the Nifty climbing 25.50 points to 8406.15.

10:45 am Buzzing: Shares of  Hindustan Organic Chemicals  gained as much as 20 percent intraday as it is going to consider the proposal to sell its land.

The company's board meeting is scheduled to be held on January 20, to consider and to approve the unaudited financial results for the third quarter ended December 31, 2016.

The board will also consider the proposal to sell part of its land at Rasayani to BPCL  and proposal to sell land, plant & machinery of C.N.A plant at Rasayani to ISRO as per GOI's directions.

10:35 am Tata Motors' new launches: New product launches in passenger vehicles will have to be done keeping in mind external market conditions rather than sticking to deadlines, indicated a top Tata Motors official.

The company which has committed itself to launching two new products every year has had trouble sticking to deadlines, which has resulted in loss in launch momentum and even loss in potential customers. 

Last calendar year the company launched just one new product in the market while the second new product will come after a gap of nine months, next week.

While its hatchback Tiago has become a runaway success since launch in April, 2016 its launch was delayed by more than three months. The premium sports utility vehicle Hexa which was to debut last calendar year is rescheduled for this month.

10:20 am Interview: US president-elect Donald Trump yesterday lambasted the domestic pharma companies for outsourcing work.

However, any negative impact on generic suppliers here is ruled out, says Kiran Mazumdar Shaw, CMD of Biocon.

She said she completely agrees with Trump's view but doesn't see his views affecting Indian pharma.

''I don't think these are going to be big issues; if Indian pharma companies are supplying these products to the US markets and if there are no US suppliers, which is mostly the case, this doesn't affect the Indian pharma companies,'' she said.

10:00 am Market Check
Benchmark indices gained for third consecutive session amid volatility, with the Nifty hovering around 8400 level. Technology, infra and private banks continued to support the market whereas pharma, FMCG and metals stocks were under pressure.

The 30-share BSE Sensex rose 80.85 points to 27221.26 and the 50-share NSE Nifty gained 15.90 points at 8396.55 while the broader markets were moderately lower on weak breadth. About 1158 shares declined against 891 advancing shares on the BSE.

Infosys rallied more than 2 percent after US president-elect Donald Trump in his press conference yesterday did not say anything on H1B Visa Reform bill and ahead of December quarter earnings on Friday afternoon.

Healthcare stocks like Lupin, Sun Pharma and Dr Reddy's Labs, which have high exposure to US market, fell over a percent after Donald Trump says pharma companies are getting away with murder, also implying more aggressive bidding and likely lowering of drug prices.

"The last night Trump's speech clearly focused on Economic inclusion with focus towards creating a challenging environment which will result in some short term disruption. With focus now on bidding drugs and a new procedure is a clear indication that companies specifically from pharma space may take a hit as there is a lot of challenges that may evolve coupled with end of Obama Care which is a clear indication. With higher exposure to US, pharma space already seeing a bad phase, insult to injury," Mustafa Nadeem of Epic Research says.

Metals stocks like Tata Steel, Coal India and Hindalco were down 0.4-1 percent on profit booking after rising sharply for last two sessions due to China's decision to shut few medium frequency induction furnaces.

9:55 am Currencies: The Mexican peso weakened to fresh record lows against the US dollar, crossing the psychologically key level of 22 pesos to the dollar as a Donald Trump news conference inflamed trade worries.

"Nothing that Trump has said made it any less likely that Mexico is in trouble. They've been dealt a bad hand," said Thierry Albert Wizman, global interest rates and currencies strategist at financial advisory firm Macquarie.

The president-elect "again talked about companies not leaving the US, staying here," Wizman said.

In Trump's first news conference since the election, the real estate mogul highlighted announcements in the last two weeks by automakers such as Ford Motor to expand production in the US rather than Mexico.

9:45 am Pharma: Following US president-elect Donald Trump's explosive speech last night where he lambasted the domestic pharma companies for outsourcing work, pharma stocks are likely to be in limelight today.

However, any negative impact on generic suppliers here is ruled out, says Kiran Mazumdar Shaw, CMD of Biocon.

She said she completely agrees with Trump's view but doesn't see his views affecting Indian pharma.

''I don't think these are going to be big issues; if Indian pharma companies are supplying these products to the US markets and if there are no US suppliers, which is mostly the case, this doesn't affect the Indian pharma companies,'' she said.

9:35 am FII view: Abhay Laijawala of Deutsche Bank says based on a bottom-up aggregate of estimates, the Sensex is likely to post earnings growth of 15.4 percent YoY in the December 2016 quarter.

However, a significant chunk of earnings growth is attributable to commodity sectors and an exceptional loss in the base of ONGC, he adds. Excluding oil + metals, Sensex earnings growth comes in at a muted 3.6 percent YoY.

Within the Sensex, he expects sectors like energy, capital goods, telecom, pharma and utilities to post strong growth, while sectors like autos, banks and consumer to report negative earnings growth.

9:22 am Market climbs: The Nifty has hit 8400 briefly first time after November 11. The 50-share index is up 15.35 points or 0.2 percent at 8396 and the Sensex is up 71.34 points or 0.3 percent at 27211.75. About 817 shares have advanced, 380 shares declined, and 244 shares are unchanged.

The market has opened higher with the Nifty nearing 8400 after US President-elect Donald Trump's speech did not give any specific policy details. The Nifty is up 10.35 points or 0.1 percent at 8391 and the Sensex is up 49.61 points or 0.2 percent at 27190.02. About 571 shares have advanced, 247 shares declined, and 235 shares are unchanged.

Infosys, ONGC, Adani Ports, Tata Motors and Hero MotoCorp are top gainers while Dr Reddy's Labs, Sun Pharma, Lupin, Cipla and ITC are losers in the Sensex.

The Indian rupee gained in the early trade. It has opened higher by 17 paise at 68.15 per dollar versus 68.32 Wednesday.

Mohan Shenoi of Kotak Mahindra Bank said, ''President-elect Trump's press conference lacked details on economy resulting in dollar giving up some of its
gains. Asian economies are struggling with the threat of greater US protectionism.''

The Mexican peso weakens to a historic low after US president-elect Donald Trump warned US auto companies would face a high tax for products made south
of the border. The dollar index weakened to 101 mark.

Asian shares traded mixed following a choppy session in the US with stocks ending higher after President-elect Donald Trump held a raucous and freewheeling press conference that analysts said was sparse on economic policy details.

The news conference concluded with Donald Trump, who will be inaugurated as the 45th President of the United States on January 20, not providing further clarity on his proposed policies. Japanese benchmark Nikkei 225 dropped 0.91 percent, as the yen strengthened against the dollar. A stronger yen is generally bad news for Japanese companies as it makes exports more expensive and lowers repatriated profits earned overseas.

Over at Wall Street, the Dow Jones industrial average finished up 0.5 percent to 19,954.28, while the S&P 500 closed 0.28 percent higher at 2,275.32. The Nasdaq composite added 0.21 percent to close at 5,563.65.

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