Sensex ends off day’s low points, Nifty above 10,550; IT surges

20 Apr 2018

3:30 pm Market at Close: Shares have ended the week on a mildly lower note, but were off the day’s lowest point.

The Sensex is down 11.71 points or 0.03% at 34415.58, while the Nifty is down 1.30 points or 0.01% at 10564.00. The market breadth is negative as 1169 shares advanced, against a decline of 1428 shares declined, while 175 shares are unchanged.

TCS, Infosys, and Tech Mahindra were the top gainers, while Yes Bank and ICICI Bank lost the most.

3:20 pm Analysts expect rate hike post MPC minutes: The interest rate-setting panel's deliberations point towards a "hawkish" stance in the

future, which may increase the possibility of a rate hike by

the Reserve Bank, analysts said.

"Minutes (of the monetary policy committee) suggest that a back-ended rate hike in 2018 remains a possibility, if headline inflation exceeds the trajectory set out by the MPC," domestic rating agency Icra said in a note.

It was also leaning towards hawkishness, which was a view shared by a majority of watchers.

Japanese brokerage Nomura also called the minutes 'hawkish', which has increased the probability of rate hikes.

Its American peer Morgan Stanley said the tone of the minutes was broadly similar, but deputy Governor Viral Acharya's commentary on shifting away from the accommodatory stance was the biggest surprise, reports PTI.

3:10 pm Buzzing: Mahindra CIE Automotive share price gained nearly 2 percent as revenue in January-March quarter grew by 32 percent to Rs 612 crore and profit increased 132 percent to Rs 38.56 crore compared to year-ago.

2:59 pm Earnings: Reliance General Insurance, a wholly owned subsidiary of Reliance Capital, said gross written premium was Rs 5,122 crore in FY18, an increase of 28 percent over FY17 and profit after tax rose 27 percent YoY to Rs 165 crore.

Combined ratio improved from 120 percent in FY17 to 111 percent in FY18 and investment book increased 19 percent YoY to Rs 7,999 crore.

Reliance General Insurance has 7.7 percent market share in the private sector.

2:45 pm Gold Declines: Snapping its three-session rising streak, gold recorded a steep fall of Rs 240 to Rs 32,390 per 10 grams at the bullion market on weak global cues amid easing demand from local jewellers.

Silver followed suit and declined by Rs 180 to Rs 41,300 per kg on reduced offtake by industrial units and coin makers.

Traders said apart from a weak trend overseas, fall in demand from local jewellers and retailers at prevailing higher levels at the domestic spot market mainly weighed on the precious metals' prices, reports PTI.

2:35 pm TCS eyes USD 100 billion in market cap: TCS is the most valued company at Dalal Street, with a market capitalisation of Rs 6.5 lakh crore and inching towards to become the first USD 100 billion company after its healthy earnings performance and strong commentary.

2:25 pm Buzzing: Lasa Supergenerics share price gained 5 percent after it has received WHO-GMP certificate for unit situated at Mahad, Maharashtra issued by The Commissioner, The Food and Drug Administration.

2:16 pm Market Update: Benchmark indices remained under pressure in afternoon trade, weighed by correction in banks and metal stocks, but further rally in technology stocks capped losses.

Global weakness also weighed on the market.

The 30-share BSE Sensex was down 53.72 points at 34,373.57 and the 50-share NSE Nifty fell 19 points to 10,546.30. About three shares declined for every two shares rising on the BSE.

The Nifty IT index jumped 5 percent after healthy TCS earnings and depreciation in the rupee. TCS rallied 6.5 percent while Infosys, HCL Technologies and Tech Mahindra gained 5 percent each.

On the other side, extended selling pressure in Reliance Industries, L&T and banking & financials stocks is keeping the market in bear trap.

1:58 pm Buzzing: Prakash Constrowell share price rallied 10 percent after the company has been declared L-1 bidder by the MCGM (Municipal Corporation of Greater Mumbai) for the new project Dumpsite Reclamation at Mulund Dumping Ground (MDG) in Mumbai by adopting suitable technology for existing garbage dump.

1:45 pm DeMO led to highest fake currency: The country's banks received an all-time high amount of fake currency and also detected an over 480 percent jump in suspicious transactions post demonetisation, a first-ever report on dubious deposits made in the wake of the 2016 notes ban has revealed.

The banks, including those in the private, public and cooperative sectors, and other financial institutions collectively generated 400 per cent more suspicious transaction reports (STRs) at over 4.73 lakh such dossiers during 2016-17, the report said.

The Financial Intelligence Unit (FIU), that analyses suspicious financial transactions pertaining to money laundering and terror financing as part of the Union Finance Ministry establishment, reported that counterfeit currency transactions in the banking and other economic channels witnessed an increase by over 3.22 lakh instances during 2016-17 as compared to the last year, reports PTI.

1:30 pm Crude Impact: Every USD 10 per barrel rise in the price of crude oil could worsen India's fiscal balance by 0.1 percent and current account balance by 0.4 percent of GDP, Deepak Jasani, Head – Retail Research at HDFC Securities, said in an exclusive interview with Moneycontrol’s Kshitij Anand.

He sees rural facing and infrastructure plays emerging as a dark horse ahead of the elections in 2018. "Housing and gold finance are spaces where one may be able to shortlist a few stocks where the recent sell-off may have resulted in attractive valuations," he added.

1:15 pm Kakatiya Cements in focus: Kakatiya Cements surged 20 percent after the company restarted its operations at cement plant in Andhra Pradesh.

The Central Pollution Control Board (CPCB) has issued closure directions for non-connectivity of emission monitoring equipment to the CPCB server in respect of cement plant on October 19, 2017. The closure was effected following disconnection of power on the evening of October 18.

As per directives of CPCB, the company had installed online SPM stack monitoring equipment and provided connectivity to CPCB and SPCB servers on February 21, 2018.

The CPCB in March 2018 has revoked its closure directions issued in respect of the company's cement plant and the company was in the process of obtaining the clearance of Telangana State Pollution Control Board (TSPCB).

The company was hopeful that it would be in position to re-start its operations in the cement plant before end of April, 2018.

1:05 pm Buzzing: JB Chemicals and Pharmaceuticals share fell 2 percent as it has received an order from Office of Member Secretary, Pollution Control Committee, Daman directing the closure of the company's formulation manufacturing facility at Daman on the ground of alleged deviation of standards of treated waste water released from ETPoutlet of the said

facility.

12:55 pm Europe Update: European markets were lower, as investors monitored a fresh batch of corporate earnings and economic data.

In Asia, equities were dragged lower after the world's largest chipmaker delivered a disappointing forecast late Thursday. Taiwan Semiconductor Manufacturing slashed its revenue target to the lower end of forecast, citing weaker-than-expected demand for smartphones. MSCI's broadest index of Asia-Pacific shares, excluding Japan, was off almost 1 percent on Friday.

Meanwhile, oil prices hovered close to multi-year highs after climbing to their highest level since late 2014 on Thursday. International benchmark Brent crude traded at nearly USD 74 in early morning deals, boosted by a drawdown in global supply as OPEC kingpin Saudi Arabia appeared poised to increase its export revenue, reports CNBC.

12:45 pm Market Update: The market remained under selling pressure following negative lead from global stocks. But the sharp rally in technology stocks post TCS' Q4 FY18 result and a weak rupee continued to support benchmark indices.

The 30-share BSE Sensex was down 56.61 points at 34,370.68 and the 50-share NSE Nifty fell 22.10 points to 10,543.20.

Shares of TCS hit a record high and was up more than 6 percent.

IT was the only sectoral index in the green, rising 4 percent while Nifty Bank index fell 200 points.

Reliance Industries, HDFC, Bajaj Finance, ICICI Bank, Yes Bank, L&T, SBI and Vedanta were down 1-3 percent.

12:35 pm INOX-IMAX Corporation Agreement: Inox Leisure informed exchanges that the company has entered into an agreement for purchase of IMAX Theatre Systems with IMAX Corporation.

Pursuant to the agreement, the company will install IMAX Theatre Systems at five more multiplexes across India.

The deal brings IMAX's total number of contracted theatres with the Company to 10, with 2 currently open and 8 contracted to open.

12:25 pm Plant Shutdown: Gujarat State Fertilizers & Chemicals informed exchanges that it is considering the shutting down of its fibre unit situated at Kosamba, Surat.

"The subject initiation is mainly on account of non-viability of its products. This shutting down however is subject to the approval of board of directors."

12:15 pm Asia Update: Asian shares slipped as a warning on smartphone demand from the world's largest contract chipmaker slugged the tech sector, while high oil prices stirred inflation fears and undermined sovereign bonds.

In Asia, Apple led the way after Taiwan Semiconductor Manufacturing cut its revenue target to the low end of forecasts and blamed softer demand for smartphones.

Taiwan's main index slid 1.8 percent with techs sinking 3.5 percent and TSMC off more than 6 percent. Stocks in South Korea took a 0.5 percent dip.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 1.1 percent, again led by a 1.6 percent fall in technology. Japan's Nikkei eased 0.1 percent as the drop is tech outweight the gains in energy and financials, reports Reuters.

12:05 pm Fortis gets non-binding offer: Fortis Healthcare said it has received a non-binding expression of interest from KKR-backed Radiant Life Care, making it the fifth bidder for the beleaguered firm.

Radiant Life Care has offered to acquire at least 26 percent stake in Fortis Healthcare (FHL) at Rs 126 per share, excluding its diagnostic business SRL.

The stock is up over 1 percent.

11:55 am Drug Approval: Glenmark Pharmaceuticals has received final approval from the US health regulator for a generic version of Temovate Topical Solution used to treat certain scalp and skin conditions.

Glenmark Pharmaceuticals USA has been granted final approval by the US Food and Drug Administration (USFDA) for Clobetasol Propionate Topical Solution USP, 0.05%, the company said in a BSE filing.

The approved product is the generic version of Temovate Topical Solution.

11:50 am Market Update: The market remained under selling pressure due to global weakness, but the sharp rally in technology stocks post TCS Q4 results and weak rupee capped the losses of benchmark indices.

TCS shares rallied 6.5 percent to hit a record high, adding nearly Rs 40,000 crore to total market capitalisation of Rs 6.5 lakh crore.

The IT is the only index in the green, rising 3.5 percent while other all sectoral indices are in the red.

The 30-share BSE Sensex was down 73.82 points at 34,353.47 and the 50-share NSE Nifty fell 30.90 points to 10,534.40. About 1,343 shares declined against 935 advancing shares on the BSE.

11:35 am RBI Approval: Private sector lender Yes Bank said has received Reserve Bank of India's (RBI) approval to open two representative offices in London and Singapore.

"This is a significant development in the overall augmentation of Yes Bank's business model and will help in further diversification and expansion of financial services to the NRI diaspora," Yes Bank MD and CEO Rana Kapoor said.

"Opening of representative offices in key financial and trade hubs...gives us an effective coverage for most key global geographies and demonstrates our commitment to grow our footprint in the international banking space," he added.

Yes Bank opened its first representative office in Abu Dhabi in April 2015 and also launched IFSC banking unit (IBU) at GIFT City, Gandhinagar, in the same year, reports PTI.

11:25 am Buzzing: Shares of TCS jumped 6.5 percent intraday after the company reported a 4.4 percent rise in March quarter net profit and guided towards a better show in fiscal 2019.

The stock was the biggest gainer on both key indices, Sensex and Nifty.

The firm's market valuation zoomed Rs 37,702.06 crore to Rs 6,45,880.63 crore.

11:15 am IndusInd Bank in focus: Most brokerage firms raised their respective target price for IndusInd Bank post Q4 results after the bank reported 27 percent year-on-year (YoY) growth in the net profit to Rs953 crore.

The most aggressive price target came from Citigroup which maintains a buy call on the stock but raised its target price to Rs 2,180 from Rs 2,060 which translates into an upside of about 20 percent from current levels.

The bank's net profit was largely in line with market expectations. A Reuters poll had pegged its net profit at Rs 961.5 crore for the quarter under review.

The bank’s net interest income, which is the difference between interest earned and interest expended, came in at Rs 2,007.59 crore, 20.4 percent higher than in the corresponding quarter a year ago.

11:07 am Crude Update: US West Texas Intermediate (WTI) crude futures were at USD 68.12 a barrel, down 0.25 percent. WTI has gained nearly 8 percent in the last eight days of trading.

Brent crude futures were at USD 73.61 a barrel, down 0.23 cents. The global benchmark touched USD 74.75 a barrel, its highest since November 27, 2014 - the day OPEC decided to pump as much as it could to defend market share.

10:55 am Buzzing: Eveready Industries plunged 10 percent after fair trade regulator CCI imposed a total fine of Rs 215 crore on Eveready as well as Indo National, industry grouping AIDCM and their officials for cartelisation in pricing of zinc carbon dry cell batteries.

Invoking leniency provisions, the Competition Commission reduced the quantum of penalties on Eveready, Indo National as well as their officials. The fine has been completely waived off in the case of Panasonic Energy India, which was also involved in anti-competitive practices.

In a 39-page order, the watchdog has penalised Eveready and Indo National, which owns the brand 'Nippo' and Association of Indian Dry Cell Manufacturers (AIDCM) to the tune of nearly Rs 215 crore.

10:45 am Market Update: The market continued to reel under marginal selling pressure, following correction in global stocks. The correction in banking & financials, FMCG, metals and oil exploration stocks weighed on the market, but sharp rally in technology stocks capped market losses.

The 30-share BSE Sensex was down 59.90 points at 34,367.39 and the 50-share NSE Nifty fell 18.80 points to 10,546.50.

The 13-month low rupee and healthy TCS' Q4 performance lifted Nifty IT index over 3 percent, but other sectoral indices were down.

Metals stocks lost shine after yesterday's sharp rally, with the Nifty Metal index falling nearly 2 percent. PSU Bank was the major loser among sectoral indices, down 2.5 percent.

10:25 am CLSA ups TCS target: While reiterating its Buy rating on TCS and raising target price to Rs 3,700 per share (from Rs 3,250 earlier), global brokerage house CLSA said Q4 revenue beat estimates sharply, hence it upgraded FY19-20 revenue & EPS estimates by 1 percent.

It expects the company to maintain payout ratios and expects a buyback/dividend to compensate for a lower payout in FY18.

10:15 am Railway Operating Ratio: Railways' operating ratio, the direct indicator of working of the government-run transporter could settle at 98.5 percent for 2017-2018, recording its worst performance ever since 2000-2001 when it was 98.3 percent, an official said.

He said the number reflects the increased burden of allowances and pensions that have gone up because of the revision in the 7th Pay Commission.

An operating ratio of about 98.5 percent in FY18 would mean a dip of more than two per cent in the revised 96 percent figure announced in the February budget. The operating ratio indicates how much railway spends to earn a rupee.

10:05 am IMF on Indian Reforms: The reforms carried out by India has been bearing fruits and benefiting people, making a strong case for more steps, a top IMF official has said.

The implementation of the goods and services tax (GST), despite a bumpy road, is going to help secure the solidity of foundation of public finances, David Lipton, the International Monetary Fund (IMF)'s First Deputy Managing Director David Lipton, told PTI.

The recent steps taken to deal with the accumulated problems in banks are important ones, Lipton said, as he identified digital ID technology and other structural reforms important moves towards inclusive growth and making India an economic powerhouse.

"There's certainly more to be done but India is certainly seeing benefits from what it has done," he said on the sidelines of the Spring meeting of the IMF and the World Bank.

9:55 am Rupee Trade: Rupee weakened by 25 paise to breach the 66-level and hit its 13-month low of 66.05 against the US dollar due to appreciation of the US currency overseas.

Increased demand for the dollar from importers also put pressure on the domestic unit.

Meanwhile, the minutes of the last meeting of the Monetary Policy Committee (MPC) indicated the Reserve Bank of India may shift to a hawkish monetary stance in June.

Dealers attributed the rupee's fall to dollar gains against other currencies overseas, persistent foreign fund outflows and a lower opening of the domestic equity market.

Yesterday, the rupee had lost 14 paise to close at a fresh 13-month low of Rs 65.80 as growing worries over higher crude prices and likely fiscal slippages led to subdued forex market sentiments.

9:45 am Market Update: The market is mildly lower following weakness in global peers, dragged by banks, metals stocks, Reliance Industries and ITC.

However, the buying in technology stocks capped market losses.

TCS is the biggest gainer among Nifty50 stocks, rising 4 percent to hit a fresh record high after reporting healthy quarterly earnings.

Infosys, HCL Technologies, Tech Mahindra and Wipro gained 2-3.5 percent while HPCL, BPCL and IOC rebounded 1 percent each after yesterday's sharp sell-off.

9:35 am Buzzing: Cyient rallied as much as 9.4 percent in morning trade, a day after the company reported 16.2 percent year-on-year (YoY) rise in net profit at Rs 121.5 crore for the quarter ended on March 31, 2018, compared to the year-ago period.

The Hyderabad-based company had posted a net profit of Rs 104.6 crore in the corresponding quarter a year ago, Cyient said in a statement.

Its revenue increased 12.8 percent to Rs 1,061.8 crore in the said quarter against Rs 941 crore in the year-ago period.

“Cyient delivered strong revenue growth in 4QFY18 but disappointed on the margin front, but the management remains optimistic about Cyient’s growth prospects and has guided for double-digit growth in core IT services and 35 percent YoY growth in DLM,” HDFC Securities said in a note.

9:25 am UltraTech questions resolution process of Binani Cement: Aditya Birla group firm UltraTech Cement told the Kolkata bench of NCLT that the process followed by the Resolution Professional and the Committee of Creditors while evaluating the bids for Binani Cement was "fraudulent".

Appearing on behalf of UltraTech Cement, senior advocate Mukul Rohatgi questioned the process followed by the Committee of Creditors (CoC) of Binani Cement led by Bank of Baroda in selecting rival Dalmia Bharat Group as the highest bidder.

He submitted that UltraTech apprehends that it was not declared as the H1 bidder in view of the penalty imposed by the Competition Commission of India.

On February 27, 2018, CoC informed that UltraTech is the H2 bidder.

9:18 am TCS Top Star: TCS is the biggest gainer among Nifty50 stocks after reporting healthy growth in quarterly earnings on Thursday, rising 3 percent.

The Tata Group firm has reported consolidated profit at Rs 6,904 crore for the quarter ended March 2018, registering a 5.7 percent growth compared to Rs 6,531 crore in previous quarter and 4.5 percent growth over year-ago period.

Consolidated revenue from operations for the quarter grew by 3.8 percent (up 8.2 percent YoY) to Rs 32,075 crore on sequential basis, which was ahead of Reuters poll of Rs 31,669.2 crore.

Revenue in dollar terms increased 3.9 percent, the highest growth in last 14 quarters, to USD 4,972 million in Q4FY18, which was far ahead of analyst estimates. Dollar revenue growth on year-on-year basis was in double digit at 11.68 percent.

9:15 am Market Check: Benchmark indices opened flat amid global weakness and higher crude oil prices.

The 30-share BSE Sensex was down 21.76 points at 34,405.53 and the 50-share NSE Nifty fell 11.90 points to 10,553.40.

Nifty Bank was down 0.41 percent while Nifty Midcap declined 60 points.

Eveready Industries and JB Chemicals were down up to 10 percent.

Mahindra CIE, Bharat Seats, Cyient gained up to 5 percent while Reliance Power fell 2 percent post March quarter earnings.

Mphasis was up 2 percent while Jaypee Infra and Nalco were under pressure.

9:08 am Market Update: Benchmark indices settled flat in pre-opening trade, with the Sensex rising only 6.85 points to 34,434.14 and the Nifty falling 4.90 points to 10,560.40.

9:05 am Bond Yield: The 7.78% 10 year government bond yield opened higher by 15 basis points at 7.78 percent against previous close of 7.63 percent.

9:03 am Technical Recommendations: We spoke to IIFL and here’s what they have to recommend:

V-Guard Industries Ltd: BUY| Target, Rs 276| Stop Loss Rs232| Returns 12%

Yes Bank Ltd: BUY| Target Rs 348| Stop Loss Rs 306| Returns 9.5%

Sunteck Realty Ltd: BUY| Target 470| Stop Loss Rs 413| Returns 9%

9:01 am Stocks in news: TCS: Q4 profit up 5.7 percent QoQ at Rs 6,904 crore, EBIT margin at 25.4 percent; approves 1:1 bonus

Cyient: Q4 net up 16.2 percent to Rs 121.5 crore

Fortis Health: Company focusing on binding offers only, advisory panel to meet on April 25

Thomas Cook: The company has purchased 4.4 percent in Travel Corporation of India.

Indian Metals & Ferro Alloys: Company gets Rs 123 crore notices for excessive mining.

ABG Shipyard: Liberty House UK moves NCLT to challenge resolution professional's decision

Kakatiya Cement: Company resumes operation at Telangana plant after its closure on pollution grounds

9:00 am Market Check: Benchmark indices were higher in pre-opening trade, with the Sensex rising 148.79 points to 34,576.08 and the Nifty climbing 21.10 points to 10,586.40 despite weak global cues.

Cyient, Mahindra CIE, Fortis Healthcare, Mishra Dhatu and IndusInd Bank gained up to 4 percent while Vakrangee was down 3.6 percent.

Wall Street’s three major indexes closed lower on Thursday, with tobacco stocks leading a tumble in consumer staples while concerns about smartphone demand hurt the technology sector and rising bond yields and earnings helped financials rebound, said a Reuters report.

The Dow Jones Industrial Average fell 83.18 points, or 0.34 percent, to 24,664.89, the S&P 500 lost 15.51 points, or 0.57 percent, to 2,693.13 and the Nasdaq Composite dropped 57.18 points, or 0.78 percent, to 7,238.06.

Asian shares slipped as a warning on smartphone demand from the world’s largest contract chipmaker slugged the tech sector, while lofty oil prices stirred inflation fears and undermined sovereign bonds, Reuters report added.