Sensex ends up 240 points, Nifty below 8550; SBI, Tata Steel soar

10 Nov 2016

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3:30 pm Market closing: The Sensex ended up 240 points or 0.9 percent at 27492.53, and the Nifty was up 88.85 points or 1 percent at 8520.85.

About 2000 shares have advanced, 747 shares declined, and 135 shares were unchanged. Nofty Bank posts biggest one day gain in last 8 months.

Tata Steel, SBI, Cipla, Coal India and ICICI Bank were top gainers while Asian Paints, Hero MotoCorp, HDFC, Lupin and Bajaj Auto were losers.

3:10 pm Market outlook: Appreciating the government's renewed clampdown on black money, Porinju Veliyath of Equity Intelligence India said that India is now changing like never before. Indian household which weren't largely part of financial system will enter the setup now, he said.

The black money crackdown is the biggest economic development since independence, Veliyath said.

Veliyath said that while there is a debate about public sector and private sector banks, the banking sector will make a big boom in the years to come. He added he bought into Nifty Bank at the bottom yesterday - a fall that was triggered by the currency demonetization and Donald Trump's election as the 45th President of the United States.

2:59 pm Market Update: Equity benchmarks came off day's high in last hour of trade on further selling in Infosys and HDFC.

The 30-share BSE Sensex was up 309.09 points or 1.13 percent at 27561.62 and the 50-share NSE Nifty gained 110.55 points or 1.31 percent at 8542.55.

2:50 pm Earnings: Public sector lender Bank of India has reported profit in July-September quarter for the first time since Q2FY16 on account of other income and fall in slippages despite higher provisions. Profit stood at Rs 126.8 crore for the quarter against loss of Rs 1,126.2 crore in same period last fiscal.

Net interest income during the quarter declined 10 percent year-on-year to Rs 2,719.74 crore while other income shot up 158.4 percent to Rs 2,010.6 crore and operating profit grew by 71 percent to Rs 2,492.84 crore.

Treasury income aided other income in Q2 on account of decline in government bond yields.

Provisions for non-performing assets increased 112.55 percent to Rs 2,189.65 crore compared to year-ago period but fell 10.7 percent on sequential basis.

2:40 pm Tata Sons on Mistry: Launching a scathing attack on ousted chairman Cyrus Mistry, Tata Sons today accused him of betraying trust and trying to seek control of main operating firms of the over USD 100 billion group.

In a nine-page statement, the promoter of the major operating Tata companies made a point by point rebuttal to the letter which Mistry had written to its board members a day after he was ousted on October 24.

Tata Sons accused Mistry of trying to gain control of the Indian Hotels Co Ltd - the firm that runs Taj Group of Hotels - by using independent directors.

Mistry-headed IHCL, where Tata Sons holds just 28.01 percent stake, had last week in a filing to stock exchanges stated that independent directors have backed the Chairman and his leadership.

2:30 pm Sebi nod to IPOs: Two companies -- Sheela Foam and Aster DM Healthcare -- have received markets regulator Sebi's approval to float initial public offerings (IPO).

Sheela Foam, maker of Sleepwell mattresses, had filed draft papers with Sebi in July, while Aster DM Healthcare, which runs hospitals in India and Middle East, had applied for IPO in June.

The markets regulator issued its final 'observations' on the the draft documents of Sheela Foam and Aster DM Healthcare on November 2 and November 3, respectively, as per the latest update available with Securities and Exchange Board of India (Sebi).

Sebi's 'observations' is necessary for any company to launch the public offer.

Sheela Foam filed draft red herring prospectus (DRHP) with Sebi for its Rs 510-crore offer for sale.

2:20 pm Fuel demand: India's fuel demand rose 8.1 percent in October compared with the same month last year.

Consumption of fuel, a proxy for oil demand, totalled 16.49 million tonnes, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed.

Sales of gasoline, or petrol, were 13.8 percent higher from a year earlier at 2.11 million tonnes.

Cooking gas or liquefied petroleum gas (LPG) sales increased 10.3 percent to 1.86 million tonnes, while naphtha sales surged 4.8 percent to 1.11 million tonnes.

Sales of bitumen, used for making roads, were 6.9 percent lower, while fuel oil use edged up 8.3 percent in October.

2:10 pm Earnings: Private sector lender City Union Bank today reported a 14.7 percent rise in net profit to Rs 123.74 crore for the second quarter ended September 30.

The bank had registered a net profit of Rs 107.85 crore during July-September quarter of previous fiscal.

Total income of the bank rose to Rs 894.87 crore during the second quarter as against Rs 829.45 crore in the same period previous fiscal, it said in a regulatory filing.

Bank's asset quality had only a marginal impact as gross non-performing assets (NPAs) as a percentage of gross loans as on September 30, 2016 increased to 2.69 per cent compared to 2.10 per cent a year ago.

Likewise, net NPAs too rose slightly to 1.63 per cent from 1.36 per cent a year ago.

Thus, provisioning for bad loans and contingencies were raised by the bank to Rs 67 crore for the second quarter of 2016-17 compared to Rs 49.85 crore in the same quarter last fiscal.

2:00 pm Market Check: The market maintained its uptrend in afternoon trade with the Sensex holding 400 points gains as global markets remained higher on Trump win. Banks, auto, infra and metals were leading gainers.

The 30-share BSE Sensex was up 431.37 points or 1.58 percent at 27683.90 and the 50-share NSE Nifty gained 147.35 points or 1.75 percent at 8579.35. The broader markets climbed over 2 percent on strong breadth.

About five shares gained for every share falling on the Bombay Stock Exchange.

European markets started slightly higher as they continue to rebound following Donald Trump's victory in the US election. France's CAC, Germany's DAX and Britain's FTSE traded 1 percent higher.

1:30 pm Poll: Healthcare major Sun Pharmaceutical Industries ' second quarter profit is seen rising 52.3 percent year-on-year to Rs 1,685 crore on strong operational performance. According to analysts polled by CNBC-TV18, revenue may increase 13.7 percent to Rs 7,772.8 crore year-on-year, led by US sales. Operating profit may grow 28.6 percent year-on-year to Rs 2,487 crore and margin may expand 370 basis points to 32 percent. Margin is expected to bounceback due to exclusivity of Gleevec generic YoY, improvement in Taro margins and receiving upfront payment of USD 50 million for Tildrakizumab being studied for psoriasis. Base business margin may be stable post stability in cost base from Ranbaxy integration.

The market continues to rise as the Sensex is up 401.81 points or 1.5 percent at 27654.34. The Nifty is up 138.55 points or 1.6 percent at 8570.55. About 2037 shares have advanced, 526 shares declined, and 130 shares are unchanged.

Tata Steel, SBI, Cipla, ICICI bank and Coal India are top gainers while Asian Paints, Hero MotoCorp, Lupin, Infosys and Maruti Suzuki are losers in the Sensex.

Gold prices rose by Rs 172 to Rs 30,049 per 10 grams in futures trade today as speculators engaged in raising their bets amid a firm global trend and increased buying by jewellers at the domestic spot markets.

The yellow metal for delivery in far-month February next year too gained Rs 159 or 0.53 percent to Rs 29,879 per 10 gm in 2 lots. Market analysts attributed the rise in gold prices at futures trade to positive global cues as well as pick up in demand at the domestic spot markets.

Yesterday, gold prices zoomed by Rs 900 to trade at three-year high of Rs 31,750 per 10 grams in the national capital.

Meanwhile, gold was trading higher 0.41 percent higher at USD 1,283.50 an ounce in Singapore.

12:59 pm Market Update: Benchmark indices remained strong in afternoon trade. The Sensex was up 360.66 points or 1.32 percent at 27613.19 and the Nifty gained 127.15 points or 1.51 percent at 8559.15.

About 2044 shares advanced against 500 declining shares on the BSE.

12:50 pm Nod to Adani's Australia project: Adani's plan to build one of the world's largest coal mines in Australia received a boost today by a last-minute amendment to Queensland's new water laws that would exempt the Indian mining giant's controversy-hit 21.7 billion dollar project from any public objection process.

The Queensland government has granted Adani's Carmichael mine project in the Galilee Basin an 11th-hour exemption to new water laws that could have seen the project subjected to further legal challenges.

The government has introduced laws requiring Queensland mining projects to obtain a water licence, in an effort to reduce the impact on ground water.

However, the Annastacia Palaszczuk government yesterday added an amendment to the laws that will allow the Adani mine project, which has already faced significant legal action, to avoid court challenges to its water licence.

12:40 pm Tata Sons' EGM: Tata Sons will be calling a TCS EGM to take up removal of Cyrus Mistry. TCS parent company Tata Sons and its directors have lost confidence in Mistry, says the statement.

Tata Sons Board feels Mistry's removal is necessary for future success of the group.

Post removal as group chairman on October 24, Mistry has made unsubstantiated allegations, adds Tata explanatory statement.

The statement goes on to add that Mistry has cast aspersions against Tata Group companies and such conduct of Mistry is not in the interest of the company. mistry has attempted to besmirch  the image of Tata Group.

12:30 pm Earnings: Auto components maker Motherson Sumi Systems (MSSL), the flagship company of Samvardhana Motherson, has reported a 26.3 percent increase in consolidated profit at Rs 480 for July-September quarter compared with Rs 380 crore in same period last year, driven by overall business performance.

Revenue grew by 14.3 percent year-on-year to Rs 10,332.6 crore in the quarter ended September 2016, driven by domestic as well as global operations.

Topline as well as bottomline performance was ahead of estimates. Profit was estimated at Rs 389 crore on revenue of Rs 10,271 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

"We continue to consolidate operational improvements in our performance which is reflected in healthy growth of profit. The reduction in net debt provides additional headroom to prepare for growth. Organic growth is firmly on track to reaching 2020 targets," Vivek Chaand Sehgal, Chairman of Motherson Sumi Systems said in its filing.

12:15 pm Buzzing: Shares of Cipla surged over 7 percent intraday even after the company reported a 34.74 percent fall in consolidated net profit for the second quarter ended September 30, 2016.

"Cipla reported in line results on both revenue as well as PAT front," Kotak Securities said in a note.

Drug major Cipla yesterday reported a 34.74 per cent slide in consolidated net profit to Rs 354.34 crore for the second quarter ended September 2016, mainly on account of increase in expenditure.

The company had posted a net profit after taxes, minority interest and share of profit/loss of the associates of Rs 543.02 crore for the same period a year ago, Cipla had said in a filing to BSE.

12:00 pm Market Check
Equity benchmarks extended rally in noon trade with the Nifty inching towards 8600 level, driven by short covering as well as global support.

The 30-share BSE Sensex surged 450.52 points or 1.65 percent to 27703.05 and the 50-share NSE Nifty was up 155.80 points or 1.85 percent at 8587.80 while the broader markets continued to outperform benchmarks.

The BSE Midcap and Smallcap indices rallied 2.5 percent each as about five shares advanced for every share falling on the exchange.

Gold prices rose by Rs 172 to Rs 30,049 per 10 grams in futures trade as speculators engaged in raising their bets amid a firm global trend and increased buying by jewellers at the domestic spot markets. Yesterday, gold prices zoomed by Rs 900 to trade at three-year high of Rs 31,750 per 10 grams in the national capital.

Asia markets soared with the Nikkei jumping close to 7 percent, as traders reassessed the economic impact of Donald Trump's victory in the US presidential election.

The Nikkei 225 ended up 6.72 percent, or 1,092.88 points, at 17,344.42, as the yen weakened against the dollar. The dollar/yen had plunged to 101 levels on Wednesday.

11:55 am Auto sales: Domestic passenger vehicle sales rose 4.48 percent to 2,80,677 units in October from 2,68,630 units in the same month last year.

Domestic car sales were up marginally to 1,95,036 units as against 1,94,158 units in October last year, according to data released by the Society of Indian Automobile Manufacturers (SIAM).

Motorcycle sales last month grew 7.37 percent to 11,44,516 units as against 10,65,925 units a year earlier.

Total two-wheeler sales in October increased 8.72 percent to 18,00,672 units as compared with 16,56,304 units in the year-ago month.

11:30 am Market outlook: Speaking to CNBC-TV18 Manish Gunwani of ICICI Prudential Mutual Fund said that there is an upward movement seen in bond yields globally. Ultimately, it is about eanrings growth, he said. He doesn't think there is a case yet for a P/E (price to earnings) re-rating. He believes in the short term both GST and demonetisation moves will have an impact. ''These big reforms will hit earnings in this quarter or another quarter, there is no denying it. It is a big structural positive,'' he said. The part of growth that is seen now is commodity intensive. ''If positioning translates into action you can see material intensive growth coming back.''

After badly bruised yesterday, the market is picking up pace as investors are actively buying. The Sensex is up 471.03 points or 1.7 percent at 27723.56 and the Nifty is up 158.05 points or 1.8 percent at 8590.05. About 1971 shares have advanced, 310 shares declined, and 84 shares are unchanged.

SBI, Tata Steel, Cipla, ICICI Bank and Adani Ports are top gainers while HDFC Paints, Infosys, HDFC, Wipro and Hero MotoCorp are losers in the Sensex.

Gold held steady early after briefly surging to a six-week high in the previous session, as global markets and the US dollar showed surprise gains in the wake of Republican Donald Trump's presidential victory. Donald Trump's victory in the US presidential race throws into question the core assumption in global financial markets that the Federal Reserve will raise interest rates soon and follow with further gradual hikes over coming years.

10:51 am Interview: Deepak Khetrapal, MD & CEO of Orient Cement said at the EBITDA level it has been a poor performance this last quarter.

Orient Cement reported a standalone net loss of Rs 29.4 crore for the quarter ended September 30, 2016, against a net profit of Rs 28 crore in the year-ago period.

''Our markets and plants underwent some difficulty because of monsoon rains. It led to operational challenges,'' he said.

 He said that the thermal power plant that sends fly ash to be blended with clinker wasn't producing power. That also hurt our volumes, he said.

10:45 am Vishal Sikka to employees: According to a media report, Infosys CEO Vishal Sikka, in an e-mail to employees, has said the company's Zero Distance programme has helped improve customer satifaction to a ten-year high. Competitiors, inspired by Infosys' succes, have followed suit, Sikka adds.

Zero Distance is an Infosys initiative to boost innovation and promote improvements in the company's ongoing projects.

In the mail, Sikka also says the company is rapidly progressing towards automation and innovations in the entire service industry.

10:30 am Poll: Garments manufacturer Page Industries is expected to report profit at Rs 73.76 crore for July-September quarter, up 22 percent compared with Rs 60.3 crore in year-ago period, according to average of estimates of analysts polled by CNBC-TV18.

Revenue is seen rising 21 percent year-on-year to Rs 559.7 crore while EBIDTA (earnings before interest, tax, depreciation and amortisation) may grow 17 percent to Rs 118.6 crore but margin may contract 100 basis points to 21 percent in Q2.

Volume growth may be around 17 percent. Analysts expect menswear/sportswear to sustain revenue growth momentum of 26 percent and expects womenswear segment to report a healthy 21 percent growth led by 17 percent volume growth.

Operating leverage and improved mix are expected to drive EBITDA margin but higher cotton prices may impact margin YoY.

10:20 am Nifty Bank hit 20000 for the first time since September 23, up 2.5 percent on value buying.

10:15 am FII View: Mahesh Nandurkar of CLSA says two unexpected big macro events - US elections and Indian currency scrappage - warrant some changes in model portfolio and top picks.

He expects disruptions caused by demonetisation to hit the property sector the most and housing finance will also be impacted. He removed HDFC from model portfolio as a result.

He says Donald Trump's win in US elections is a relief for Indian pharma companies and he added Sun Pharma back to top buys while the expected US infra spending boost should improve the outlook for commodities and he added Hindalco to the model portfolio.

He also added HUL to the portfolio, taking advantage of the recent correction and on the expectations of a good harvest driving demand improvement.

10:00 am Market Check
Equity benchmarks continued to rally in morning trade with the Sensex surging 350 points, driven by banks, infra, metals and pharma stocks. Short covering and global cues drove the market higher.

The 30-share BSE Sensex was up 349.62 points or 1.28 percent at 27602.15 and the 50-share NSE Nifty gained 116.50 points or 1.38 percent at 8548.50 while the broader markets outperformed.

The BSE Midcap and Smallcap indices rallied 2 percent each on strong breadth. About 8 shares advanced for every share declining on the exchange.

Nifty Realty index surged 4.5 percent after losing more than 10 percent on black money crackdown. PSU Bank index gained further, up 5 percent while Metal surged 5.5 percent.

9:55 am FII view: The introduction of Goods and Services Tax (GST) is a very positive move for India feels Mark Matthews of Bank Julius Baer & Co., who believes it will restructure the economy. 

Sharing his views on the US elections outcome, Matthews says market is increasingly looking at Donald Trump as a pro-growth President and although his world view is through a narrow prism of business and economics and he is not so much in geopolitics of things, "he is more of a deal-maker than deal-breaker" which might prove beneficial.

Factoring in Trump's plan of trimming corporate tax rates to 15 percent from 35 percent, earnings per share of companies in US should expand by 20 percent over next few years and that itself could help markets rally, he adds.

9:45 am Demonetisation: I&B minister M Venkaiah Naidu asked opposition parties to not try scoring "political points" on the Centre's move to demonetise Rs 500, Rs 1000 notes as it will help in containing inflation, making housing affordable but will hit people like unscrupulous arms dealers. "Apart from curbing corruption and black money, this will bring down inflation, land prices will also get reduced and home buyers will have happy news," Naidu who is also the minister for Urban Development as well Housing and Urban Poverty Alleviation said at a press conference here.

9:30 am Market outlook: The realty, agriculture and banking sector will greatly benefit from the surprise demonetisation carried out by the government on Tuesday, says Rashesh Shah, Chairman & CEO, Edelweiss Financial Services.

There may be many difficulties across several sectors due to this move. But in the medium to long-term, India's economy will see a deflationary trend. The sudden ban on Rs 500 and Rs 1000 notes helps the government not only crack down on black money, but also counterfeiting of currency, says Shah.

He expects global growth to remain lukewarm with periodic shocks in the global market. Although he adds that he is positive on India and says it is very well insulated from global volitility.

The market has opened higher fueled by global market momentum. The Sensex is up 368.97 points or 1.3 percent at 27621.50 and the Nifty is up 114.80 points or 1.4 percent at 8559. About 270 shares have advanced, 25 shares declined, and 3 shares are unchanged.

Sun Pharma, ICICI Bank, Adani Ports and Axis Bank are top gainers, no stock is in red in the Sensex.

The Indian rupee opened marginally lower at 66.49 per dollar versus previous close 66.43.

Mohan Shenoi of Kotak Mahindra Bank said, "Trump presidency has triggered volatility in global equity, bond and currency markets. Dollar after initial sell-off rebounded well against major currencies."

The US dollar rose broadly against its major rivals post trump's victory. The Mexican Peso plunged to record lows on Wednesday, losing 7.8 percent to trade at 19.79 to the dollar.

Asian shares rebounded and the dollar firmed after global markets made a remarkable comeback from the shock of Republican Donald Trump's presidential victory, dumping safe-havens for the tempting returns of risk assets.

Analysts were more than a little puzzled by the sharp reversal after global markets plunged initially on Wednesday as Trump swept to power. The Nikkei duly recouped all of Wednesday's 5 percent loss and more to trade up 6 percent.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.7 percent, while Australian stocks soared 3 percent in the largest daily gain since late 2011.

Investors again revised the outlook for US interest rates, with the probability of a December rate hike by the Federal Reserve going from as low as 30 percent to as high as 80 percent.

S&P 500 futures had shed 5 percent at one stage only to stand 1.1 percent higher late in the day.

The Dow jumped 1.4 percent, while the cash S&P 500 and the Nasdaq both added 1.11 percent. Trading volume was the highest since June, when Britain also shocked traders by voting to abandon the European Union. The CBOE Volatility index , a gauge of investor anxiety, fell 23 percent and was on track for its biggest daily drop since late June.

Crude oil prices rose, as US financial markets bounced back from a early Brexit-like slide. Crude had tumbled as much as 4 percent early in the session, in the immediate aftermath of the US presidential election results. US crude tumbled to near USD 43, a near two-month low.

Gold held steady early on Thursday after briefly surging to a six-week high in the previous session, as global markets and the U.S. dollar showed surprise gains in the wake of Republican Donald Trump's presidential victory.

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