Sensex ends up 170 points, Nifty below 7950; SBI, L&T gain
27 Nov 2015
3:30 pm Market close: The market ended higher even though China jitters send shocks. The Sensex was up 169.57 points or 0.6 percent at 26128.20 and the Nifty was up 58.90 points or 0.7 percent at 7942.70. About 1379 shares advanced, 1252 shares declined, and 238 shares were unchanged.
Hindalco, SBI, L&T, Vedanta and ICICI Bank were top gainers while Tata Motors, Lupin, Maruti, Reliance and Bajaj Auto.
3:10 pm Closure: The government is considering shutting down two more sick central public sector enterprises (CPSEs) -- an HMT arm and Tyre Corporation of India Ltd --
even as it has no disinvest plans for loss-making CPSEs, Union Minister Anant Geete said on Friday.
Tyre Corporation of India (TCIL) is among the public sector units that had earlier been cleared for revival through the joint venture or disinvestment route.
"We are not going in for disinvestment of any (loss-making PSUs). Some were approved for closure earlier. We have prepared individual proposals for them," Geete said at a CII event.
2:55 pm Winter session: There seems to be no end to the tussle between the Union government and the judiciary, with the former launching a fresh attack from inside Parliament.
Addressing the Rajya Sabha on Friday, Union Finance Minister Arun Jaitley hit out at judiciary over the issue of judicial activism, saying it threatened the ''dilution of powers of judiciary, executive and legislature''.
''If there is a dilution of powers, it is not coming from either the state or Central governments,'' said the Union Minister, adding, that ''in fact what started on a positive note as activism by court, at times crosses the 'Lakshman Rekha'.'' Raking up the issue of judicial activism, the Union Minister asserted that ''judiciary cannot assume powers of the legislative''.
2:45 pm Fund raise: IDBI Bank said it has raised USD 350 million (about Rs 2,310 crore) from green bonds to fund clean energy projects. The issue was made under the USD 5 billion medium term note (MTN) programme listed on Singapore Stock Exchange, IDBI Bank said in a statement. With this, IDBI has become the first state-owned commercial bank to raise USD 350 million by selling green bonds. The proceeds will be used for refinancing of clean energy projects assisted by the bank which include wind energy, solar energy, it said.
2:30 pm Interview: Infra company NCC will be selling two of its road projects in order to raise money. The company is putting its Western UP Tollway and Bangalore Elevated Tollway on the block. The company hopes to complete the stake sale by FY16-end. Speaking to CNBC-TV18, Executive VP-Finance YD Murthy, says the company will earn Rs 200-220 crore from the asset sale. Furthermore, Murthy says the proceeds will be used to fund working capital requirement.
The market the Sensex is up 149.56 points or 0.6 percent at 26108.19, and the Nifty up 48.55 points or 0.6 percent at 7932.35. About 1274 shares have advanced, 1240 shares declined, and 210 shares are unchanged.
Hindalco, SBI, ICICI Bank, Vedanta and L&T are top gainers while GAIL, Reliance, Bajaj Auto, Maruti and Lupin are among losers.
Asian stocks closed sharply in the red, led by a heavy afternoon sell off in the Chinese market as brokerages tumbled after authorities launched probes for alleged violations of trading rules. Elsewhere, the ASX, Nikkei, and Kospi all closed in the red.
The weakness in the Chinese market is on the back of weak industrial production data and a lot of investigations and arrests (in the securities market) over the past few weeks, says Shaun Rein, managing director, China Market Research Group. This is leading to panic selling, but the market will bounce back soon considering the underlying economy is fine, he says.
1:55 pm Interview: Welspun Corp has won an export order from the US market for supply of pipelines worth Rs 1,400 crore. Speaking to CNBC-TV18, BK Mishra, Managing Director, Welspun Corp, says the order execution will begin from January 2016 and will take 12-18 months for completion.
He sees revenue recognition from Q1FY17. According to him, the company will also be aided by its well-diversified regional presence.
With this deal, Welspun's outstanding orderbook stands at one million tonne, Mishra adds.
1:30 pm Rupee talk: There is a lot of uncertainty right now, but the dollar is certainly gaining strength, says Paul Mackel, managing director- head of Asian currency research at HSBC. He has a bias towards dollar strength, even going ahead. He says though the dollar-rupee is high, volatility is low. However, in the near-term, he sees the rupee toughing the 67 per dollar mark. Arvind Subramaniam of DBS Bank, says the rupee can see levels of 66.85-66.90 against the dollar by the year-end as the global markets tend to be extremely illiquid around that time.
1:20 pm Oil prices Update: Crude oil futures fell today with losses this month standing at over 8 percent, hurt by disappointing Chinese economic data and worries over a supply glut.
A firmer US dollar also weighed on oil, making greenback-denominated contracts more expensive for holders of other currencies, although trading was quiet after Thanksgiving Day in the United States.
Brent crude had dropped 7 cents to USD 45.39 per barrel, after settling down 71 cents at USD 45.46 in the previous session.
1:10 pm Japan's data: Japanese household spending unexpectedly fell in October for a second straight month, even as unemployment hit a two-decade low, underscoring the challenge facing premier Shinzo Abe in persuading reluctant companies to boost wages.
Consumer price inflation fell for the third consecutive month, but after excluding the effect of lower energy bills, household costs rose.
The data underlined the difficulty Abe faces as he campaigns for companies to spend more of their record profits on wages and investment, in the hope of pulling Japan out of recession.
1:00 pm Market Check
The market continued to consolidate in afternoon trade. It was after a rally in morning trade. Banks, metals and infra stocks supported market while FMCG, healthcare, oil and select auto stocks declined.
The 30-share BSE Sensex gained 57.86 points at 26016.49 and the 50-share NSE Nifty rose 19.90 points to 7903.70. The broader markets remained flat, underperforming benchmarks.
ICICI Bank, L&T, State Bank of India, Hindalco Industries, BHEL, Tata Steel and Vedanta were top gainers on the Sensex, up 1-3 percent. Reliance Industries, Lupin, Bajaj Auto and GAIL lost more than a percent.
12:50 Buzzing: Shares of Fortis Healthcare gained more than 2 percent intraday after its decision to acquire Religare Health Trust Trustee Manager Pte (RHTTM).
"Stellant Capital Advisory Services, the step down subsidiary of Fortis, has entered into a share purchase agreement with RGAM Investment Advisors and other shareholders to acquire 100 percent equity stake in Religare Health Trust Trustee Manager Pte," the company says in its filing to the exchange.
It decided to buy RHTTM at a consideration of USD 14.9 million.
RHTTM is a company incorporated in Singapore that acts as Trustee Manager to Religare Health Trust, of which Fortis is a sponsor.
12:40 pm Shanghai Update: The weakness in the Chinese market is on the back of weak industrial production data and a lot of investigations and arrests (in the securities market) over the past few weeks, says Shaun Rein, managing director, China Market Research Group.
This is leading to panic selling, but the market will bounce back soon considering the underlying economy is fine, he says.
Shanghai Composite Index posted biggest one-day percentage loss since August 25. The index closed down 5.5 percent at 3,436.30.
12:30 pm FII View: Sanjeev Prasad, Kotak Institutional Equities says he sees a moderately negative impact on Indian equities and debt from a gradual increase in US interest rates over the next 12-24 months.
According to him, India's external debt is low and thus the impact would be limited.
"Nonetheless, any appreciation in the US Dollar will hurt financials of certain companies with large foreign currency borrowings and predominantly domestic revenues. The required rate of return for overseas investors could also rise, leading to higher implied cost of equity, especially for growth stocks," Prasad says.
12:15 pm Dabhol plant: Maharashtra's Dabhol Plant, operated by Ratnagiri Gas and Power Private Limited, has started operations by supplying 300 megawatts (MW) to the Central Railways. Operations at the plant have been stuck since January 2014 and this October, the Union Power Ministry decided to revive the plant.
GM Yadwadkar, executive director, IDBI , a lender to the power plant, says starting of the business is a big positive for the industry. He further adds he is positive that the account would not turn into a non-performing asset (NPA).
The bank has lent Rs 2000 crore to the Ratnagiri Plant.
12:00 pm Market Check
The market erased some of its morning gains following sharp fall in Chinese market post Japan's CPI data and amid geopolitical tensions. The broader markets were flat.
The 30-share BSE Sensex was up 44.05 points at 26002.68 and the 50-share NSE Nifty rose 17.45 points to 7901.25. The market breadth was marginally positive as about 1213 shares advanced against 1070 declining shares on the BSE.
Asian markets slipped into negative territory, shedding most of their morning gains as feeble data from Japan and China did little to inspire investor confidence. Shanghai was down 4.7 percent, Hang Seng fell 1.8 percent and Nikkei lost 0.3 percent.
Escalating tension between Russia and Turkey also dented sentiment. The latter shot down a Russian warplane on Tuesday, which Kremlin officials said was deliberate. Turkish president Recep Tayyip Erdogan has refused to apologize, insisting his country was defending its security because the plane was in Turkish airspace. Russia says the plane was in Syrian airspace.
11:45 am Buzzing: Shares of Trident rallied 4.8 percent intraday to hit a 52-week high of Rs 57.20 on incorporation of wholly owned subsidiary in the UK.
"The company has incorporated Trident Europe as wholly owned subsidiary in United Kingdom," says the manufacturer & exporter of terry towel, home textile, yarn and paper.
This subsidiary will help the company to widen its reach in European markets, strengthening its marketing channels and will act as a catalyst to superior customer service in those markets, it adds.
11:30 am FII view: There is a lot of uncertainty right now, but the dollar is certainly gaining strength, says Paul Mackel, managing director - head of Asian currency research at HSBC. He has a bias towards dollar strength, even going ahead. He says though the dollar-rupee is high, volatility is low. However, in the near-term, he sees the rupee toughing the 67 per dollar mark.
11:00 am Market Check:
The market is still up as the Sensex is up 167.00 points or 0.6 percent at 26125.63. The Nifty is up 51.20 points or 0.6 percent at 7935. About 1457 shares have advanced, 735 shares declined, and 195 shares are unchanged.
Hindalco, Vedanta, Tata Steel, BHEL and Axis Bank are top gainers while Lupin, GAIL, Maruti Suzuki, Wipro and Bajaj Auto.
Gold dipped towards its lowest level in nearly six years on Friday and was on track for a sixth straight weekly decline, weakened by a robust dollar and expectations of a US interest rate hike next month.
The dollar is trading near an eight-month high against a basket of major currencies, boosted by euro weakness and prospects of higher US rates.
The Federal Reserve is widely expected to hike US rates for the first time in nearly a decade when it meets next in December. Investors believe higher rates could dent demand for non-yielding bullion, while boosting the dollar.
10:50 am IDBI Bank: Maharashtra's Dabhol Plant, operated by Ratnagiri Gas and Power Private Limited, has started operations by supplying 300 megawatts (MW) to the Central Railways. Operations at the plant have been stuck since January 2014 and this October, the Union Power Ministry decided to revive the plant.
GM Yadwadkar, executive director, IDBI, a lender to the power plant, says starting of the business is a big positive for the industry. He further adds he is positive that the account would not turn into a non-performing asset (NPA).
10:40 am Rupee Check: The Reserve Bank of India likely sold dollars through state-owned banks to stem the rupee's fall around 66.88 per dollar, three state-owned bank traders told Reuters.
The Indian rupee was trading at 66.7950/8000 to the dollar, after plunging to an over two-year low at 66.8950.
The Indian rupee tumbled in line with its Asian peers due to persistent risk-off sentiment on the back of broad dollar strength.
Asian shares fell and the dollar held near an 8-1/2-month peak today, while the euro hovered around seven-month lows on expectations of additional stimulus from the European Central Bank next week.
10:30 am Buzzing: Reliance Infrastructure's shares gained 1.4 percent intraday on top of a 3.3 percent rise in previous session. A a media report indicated that the company is in talks with Aditya Birla Group company for stake sale in cement units.
"The Aditya Birla Group's cement company, UltraTech Cements, is in talks to take over cement units of the Anil Ambani-owned Reliance Infrastructure," a media report says quoting unnamed sources.
Anil Dhirubhai Ambani Group company's cement units are likely to fetch an enterprise valuation of Rs 5,000-5,500 crore, the report adds.
10:15 am Market Expert: Sahaj Agrawal, Associate Vice President-Derivatives, Kotak Securities says he expects volatility to remain high in the month of December with resistance seen around 8000.
Overall trend remains negative as he expects selling pressure at higher levels of the index. "On the downside support is seen at 7750 and 7550. One can look at initiating a 7900 straddle for the December series," he says.
The market continues to see good buying in December series as the Nifty eyes 7950. The 50-share index is up 42.35 points or 0.5 percent at 7926.15. The Sensex is up 127.51 points or 0.5 percent at 26086.14.About 1198 shares have advanced, 596 shares declined, and 139 shares are unchanged.
Tata Steel, ICICI Bank, M&M, Axis Bank and Cipla are top gainers while Dr Reddy's Labs, ITC, GAIL, Maruti and Lupin are major losers.
Crude oil futures fell on Friday with losses this month standing at over 8 percent, hurt by disappointing Chinese economic data and worries over a supply glut.
A firmer US dollar also weighed on oil, making greenback-denominated contracts more expensive for holders of other currencies. Although trading was quiet after Thanksgiving Day in the United States. Profits earned by Chinese industrial companies fell 4.6 percent in October from a year earlier, data from the country's statistics bureau showed on Friday, declining for the fifth consecutive month.
9:55 am Coal India divestment: Five Indian investment banks including ICICI Securities and SBI Capital have been hired to manage the government's sale of a 10 percent stake in state-controlled Coal India, IFR reported on Thursday, citing two sources close to the matter.
Other banks which have been hired to manage the offering are Axis Capital, JM Financial and Kotak Investment Banking, IFR, a Thomson Reuters publication, said. Eight banks including HSBC had submitted bids for the deal.
9:45 am Buzzing: Shares of Welspun Corp gained 9.4 percent intraday on getting export order for onshore project in America.
"The company has won an order for supply of 2.16 lakh tonnes line pipes for an onshore project in Americas," says the pipe maker.
With the addition of this order, current order hook of the company has crossed 10.40 lakh tonnes worth Rs 6,400 crore, it adds.
Revenue recognition from this order will start next year, says BK Mishra, managing director. He expects the company to start FY17 with orders of 5-6 lakh tonne.
9:30 am RBI on bond: Reserve Bank of India (RBI) is allowing foreign investors to buy corporate bonds that are either totally or partly in default, it said on Thursday, a potential boost to the country's nascent distressed debt market. "This will provide an exit to existing investors and also help in reducing the level of stress in the banking sector," said a policymaker. India is struggling to clean up corporate balance sheets after years of expansion were followed by a sharp slowdown in growth.
The market extended upside in early trade Friday with the Sensex hitting 26000-mark, up 63.04 points at 26021.67. The Nifty also reclaimed 7900-mark on first day of December series, up 26.80 points to 7910.60.
Lupin, Tata Motors, Sun Pharma, Axis Bank, Bharti Airtel, Bank of Baroda, ONGC and IndusInd Bank were early gainers, up 0.5-1.5 percent. GAIL and Bajaj Auto were under pressure.
The Indian rupee has opened lower by 9 paise at 66.65 per dollar today against previous close of 66.56 a dollar.
Ashutosh Raina of HDFC Bank says the dollar continues to gain against most of its G-10 peers on expectations of Fed hiking rates in December with the dollar index fast approaching this year's high of 100.39.
He further adds that the USD-INR pair has also breached the psychological level of 66.50/dollar and is expected to weaken further on the back of continued dollar strength.
He expects the pair to trade 66.40-67/ dollar range in short term.
Globally, Asian markets were trading mixed as investors took their cues from European equities, which closed higher Thursday on anticipation of further stimulus from the European Central Bank (ECB).
In other asset classes, the euro hovered near seven-month lows against the dollar and lost ground against the yen as investors bet against it, expecting the ECB to ease monetary policy again next week.