Sensex rises 108 points, Nifty ends above 10,150; banks, financials lead

27 Mar 2018

3:30 pm Market Closing: Benchmark indices continued to trade higher for second consecutive session, with the Sensex rising 107.98 points to 33,174.39, tracking positive move in global equities.

The Nifty rose 51.30 points to 10,182 while the Nifty Midcap index outperformed frontliners, gaining 1.3 percent. More than two shares advanced for every share falling on the BSE.

PNB Housing Finance, GIC Housing Finance, MAS Financial, Satin Creditcare, M&M Financial, Bajaj Finserv, Punj Lloyd, Union Bank, IDBI Bank, JSPL, Adani Power and NIIT rallied up to 10 percent.

Central Bank of India lost 4 percent and Talwalkars Better value Fitness was down 21 percent on demerger of lifestyle business.

3:28 pm Stock Upgrade: Phillip Capital has upgraded its rating on Vinati Organics to Buy with a target price at Rs 1,000 per share as the company is an undisputed leader (volume/costs) in IBB, ATBS & allied products.

IBB, ATBS & Allied Products contribute to over 90 percent of company's current biz.

The company is well placed with the weakening Cchinese competition.

3:26 pm USFDA Approval: Pharma major Lupin has received final approval for its Clobetasol Propionate spray, 0.05% from the United States Food and Drug Administration (FDA) to market a generic version of Galderma Laboratories, LP's Clobex Spray, 0.05%.

It is indicated for the treatment of moderate to severe plaque psoriasis affecting up to 20 percent body surface area (BSA) in patients 18 years of age or older.

3:25 pm Fundraising: Great Eastern Shipping informed exchanges that a meeting of the debenture issue committee is scheduled to be held on April 3, 2018, to consider the issue of secured non-convertible debentures upto an amount not exceeding Rs 300 crore by way of private placement.

3:20 pm Merger: State Bank of India said SBI Card JV board approved the appointment of consultants for conducting a study to examine the viability of considering and exploring possibility of merging the JV entities i.e. SBI Business Process Management Services Pvt. Ltd. with frontend company i.e. SBI Cards & Payment Services Pvt. Ltd.

3:08 pm Credit Rating: CARE Ratings has upgraded Talbros Automotive Components' long term bank facilities rating to CARE A- and short term bank facilities rating to CARE A2+. The outlook of both are stable.

3:01 pm Market Update: The market continued to trade higher, with the Sensex rising more than 100 points and the Nifty Midcap gaining over a percent, tracking positive trend in global stocks on easing trade war fears

The 30-share BSE Sensex was up 129.60 points at 33,196.01 and the 50-share NSE Nifty rose 56.40 points to 10,187.10.

About 1,799 shares advanced against 746 declining shares on the BSE.

Tata Elxsi, Britannia Industries and SRF rallied 2-3 percent.

2:50 pm Joint Venture: M&M informed exchanges that the company has agreed to form a joint venture company in Sri Lanka with Ideal Motors (Sri Lanka) and subscribe/acquire upto 35 percent of the share capital of NewCo with the remaining proposed to be held by Ideal and/or any of its affiliates.

2:40 pm Fundraising: Non-banking financial company Capital First, which is set to merge with IDFC Bank, will raise up to Rs 1,500 crore by issuing bonds on private placement basis.

"The debenture committee of the company today approved an issue of rated, listed, secured, redeemable, non-convertible debentures of Rs 1,000 crore plus green shoe option of Rs 500 crore on private placement basis," Capital First said in a regulatory filing.

The bonds will carry two options with coupon rates of 8.80 per cent each for maturities of two years and three years.

Yesterday, Capital First and IDFC Bank informed about getting approval from NSE for amalgamation of Capital First, its subsidiaries Capital First Home Finance and Capital First Securities with IDFC Bank subject to regulatory and other approvals.

2:30 pm Stake Sale: IFCI said it has made partial disinvestment of its stake in NSE to the extent of about 0.02 percent of the total number of equity shares of NSE comprising of 1 lakh number of equity shares at the rate of Rs 873.74 per share on March 26.

2:22 pm Order Win: Steel Strips Wheels (SSWL) announced bagging of yet another exports order for supply of steel wheels for EU Caravan market.

Order comprises of 7,500 steel wheels to be shipped from SSWL's Chennai plant from this month onwards.

2:20 pm CARE on Govt Borrowing: The Government has announced the borrowing programme for the first half of the year which does send signals on the state of markets for the entire year. There has been some departure from the normal trend which is significant given the current situation of tight liquidity and high yields, CARE Ratings said.

Contrary to expectations the government will borrow Rs 2.88 lakh crore of the Rs 6.05 lakh crore of market borrowings for FY19. This is 48 percent of the total as against the normal ratio of above 60 percent.

Generally the government hastens the borrowing in the first half as there is less demand for credit and it is hence an opportune time to push through the borrowing programme. However this time the stance taken is different which means that the markets will take comfort from this announcement given the rather tight liquidity conditions which have kept yields in the higher range during March.

Yields in the market have softened today by about 20-25 bps and while equilibrium will be reached at a higher level, the yields are likely to be below the 7.62 percent 10-year benchmark rate. Expected lower supply of paper in the market pushes up prices and lowers yields, which is what has been buffered in by the market, CARE said.

Lower yields will be good for banks as it comes at a time when the investment portfolio needs to be valued at the end of the year and the MTM outcome could be positive this time unlike in December when yields had increased, it added.

2:15 pm Acquisition: Fortis Healthcare said it has received an unsolicited non-binding indication of interest from Manipal Health Enterprises for possible transaction with the company on March 23.

"The said proposal is still under evaluation by the management and no firm decision in this regard has been taken by the board," Fortis said.

Fortis did not disclose any financial details of the proposal.

Sources told Moneycontrol that a consortium led by US-based private equity investor TPG Capital and Manipal Hospital Enterprises may soon close the deal to buy embattled healthcare provider Fortis Healthcare.

"The deal could be announced anytime this week," said a person aware of the development who didn't want to be named.

The deal will be structured in a way - that the new owners will be insulated from legal liabilities that may arise of ongoing investigations against the company by regulatory agencies, sources said.

2:10 pm Government Investment in IOB: Indian Overseas Bank informed exchanges that it has received an amount of Rs 388.94 crore on March 26, 2018 towards contribution of the Central Government in the preferential allotment of equity shares of the bank during the FY18, as Government's investment.

1:58 pm Rajya Sabha disruption: The Rajya Sabha could not bid farewell to 40 retiring MPs today or transact any business for the 16th day in a row as Chairman M Venkaiah Naidu adjourned the House for the day after AIADMK members protested over the Cauvery water issue.

After laying of listed papers, the chairman said the House should bid farewell to retiring MPs.

However, AIADMK members entered the Well of the House shouting slogans and carrying placards and were soon joined by the TDP. Prime Minister Narendra Modi was in the House.

1:44 pm Market Update: The market gained strength again in afternoon, tracking positive trend in European equities.

The Sensex is up more than 150 points and the Nifty is inching towards 10,200 levels.

Midcap index outperformed frontliners, rising 1 percent as PSU banks, NBFCs and metals lead the charge.

The 30-share BSE Sensex is up 168.27 points at 33,234.68 and the 50-share NSE Nifty gained 58.20 points at 10,188.90.

About three shares advanced for every share falling on the BSE.

1:30 pm Increase in Shareholding: Gujarat State Petronet informed exchanges that the company has acquired 2,46,66,914 equity shares of Gujarat Gas (i.e., 17.92 percent of the fully paid-up equity share capital of Gujarat Gas) from GSPC, by way of an inter-se promoter transfer through a block deal on March 26, 2018 at a price of Rs 830.75 per share.

Subsequent to the same, GSPL now holds 43.67 percent of the fully paid-up equity share capital of GGL.

1:20 pm Crude Oil Update: Oil prices were firm, supported by concerns that tensions in the Middle East could lead to supply disruptions, although further rises expected in US crude output loomed over markets.

US West Texas Intermediate (WTI) crude futures were at USD 65.71 a barrel, up 0.24 percent, from their previous settlement.

Brent crude futures were at USD 70.30 per barrel, up 0.26 percent.

1:10 pm Expansion: Veer Energy announced expansion to establish 'Solar Infrastructure' unit at Vapi, (Gujarat) to celebrate 10 years journey with an investment of Rs 10 crore.

1:01 pm Employee Addition: Hinduja Global Solutions announced the

addition of 300 new customer service positions to support a leading digital (mobile) payments company’s customers.

12:50 pm Vodafone-Idea Merger: The merger plan of telecom operators Vodafone India and Idea Cellular is in the "final stage of approval", Telecom Secretary Aruna Sundararajan said.

The mega merger has already received the green light from NCLT and markets regulator SEBI, and according to Sundararajan, the telecom department "is in the process of expediting it".

She was speaking to reporters on the sidelines of a Cellular Operators Association of India (COAI) event catalysing 5G launch in the country.

Last week, Vodafone and Idea announced the leadership team for their soon-to-be-merged entity, with Kumar Mangalam Birla as the non-executive chairman and Balesh Sharma as the new CEO.

The merger - slated to create India's largest telecom operator in terms of customer base and revenue market share - is expected to be completed by June this year, subject to statutory approvals, the companies had stated.

12:40 pm Europe Trade: European equities opened higher as concerns over a global trade war eased.

The pan-European Stoxx 600 was 1 percent up with ever sector moving in positive territory.

In Asia, markets rose after reports that the US and China are open to discuss trade-related issues. The news comes after a ratcheting up of tensions between the superpowers and fears of a potential trade war.

The White House is seeking reduced tariffs on imported cars as well as asking China to allow foreign majority ownership of financial services firms in exchange for not imposing higher prices on an array of imported Chinese goods.

12:30 pm Jefferies on Eicher: Jefferies has upgraded Eicher Motors to Buy with a target price at Rs 31,880 per share. The stock price rallied 2 percent.

The company is in a transition phase with waiting period going away for first time in years.

Its reported growth has been normalising as it started showing current demand versus pent-up demand.

12:20 pm Appointment: Ricoh India said the board of directors has appointed Subhankar Lahiri as Managing Director and CEO effective April 1, 2018 and Ajay Kumar Mishra as Chief Financial Officer/KMP of the company.

The board also appointed Tanmoy Adhikary as Independent Director, Hamsa Vijayaraghavan as Independent Director, and Rajat Jain as Internal Auditor.

12:10 pm Buzzing: Shares of Wipro advanced 2.5 percent intraday as company expanded its partnership with Adobe.

The company has expanded global relationship with Adobe to create, build and run digital marketing solutions and campaigns for their clients, across the globe.

As a part of this alliance, Wipro will embed Adobe’s design and prototyping software, Adobe XD CC, the all-in-one UX/UI solution for designing and prototyping mobile apps and websites, into its digital experience platform, company said in release.

12:01 pm Arbitration Award: In a major immediate relief to Delhi Airport Metro Express Pvt. Ltd. (DAMEPL), a subsidiary of Reliance Infrastructure, Delhi High Court has directed Delhi Metro Rail Corporation (DMRC) to pay Rs 306 crore to a consortium of banks to ensure that no account of DAMEPL turns NPA by March 31, 2018.

The Court passed an order to this effect on March 23, 2018 in response to an execution petition filed by DAMEPL under Section 36 of the Arbitration and Conciliation Act, 1996 seeking to enforce the arbitral award dated May 11, 2017.

DAMEPL had filed the petition after an earlier petition by DMRC challenging the Arbitral Award was dismissed by the Delhi HC on March 6, 2018. F

Following HC order, the banks are expected to get Rs 306 crore from DMRC.

11:55 am Market Update: The market continued to trade higher, but was off its day's high with the Nifty hovering around 10,150 levels while the Nifty Midcap index was up over half a percent.

All sectoral indices are in the green, with the PSU Bank index rising over 1 percent.

Bandhan Bank held its early gains, rising 26 percent over issue price on day 1.

The 30-share BSE Sensex was up 44.30 points at 33,110.71 and the 50-share NSE Nifty rose 23.10 points to 10,153.80.

About three shares advanced for every share falling on the BSE.

11:40 am Plant Shutdown: Vedanta informed exchanges that as a part of regular maintenance program, the company's smelting operations at Tuticorin have taken a maintenance shutdown for approximately 15 days.

This activity was earlier scheduled in the month of April 2018. The refining and copper rod manufacturing operations will continue as usual.

11:30 am Karnataka Election: Karnataka Election will be held in a single phase.

The voting for Karnataka election will be held on May 12 and counting will be done on May 15.

11:25 am Order Win: Kalpataru Power Transmission has secured new orders / notification of award of Rs 901 crore.

In includes, turnkey order of Rs 643 crore for construction of 765 kV D/C transmission lines in Tamil Nadu from TANTRANSCO. Design, supply, erection, testing & commissioning for railway electrification, including OHE and TSS works for Rs 195 crore from CORE.

Orders from PGCIL & SEBs for GIS Substation and transmission line of Rs 64 crore.

11:10 am Buzzing: JMC Projects (India), the subsidiary of Kalpataru Power Transmission, has secured new orders of Rs 634 crore. The stock rallied 4 percent.

"It include residential and commercial projects in South India totalling Rs 509 crore, construction of office complex for Karnataka Power Transmission Corporation Limited, Bangalore for Rs 125 crore," the company said.

Order inflows for this financial year have crossed Rs 3,300 crore, which is as per the guidance for order inflow of 2017-18, SK Tripathi (CEO & Dy. Managing Director) said.

11:00 am USFDA Approval: Glenmark Pharmaceuticals Inc, USA has been granted final approval by the United States Food & Drug Administration (US FDA) for Clobetasol Propionate Spray, 0.05 percent, the generic version of Clobex Spray, 0.05 percent, of Galderma Laboratories, LP.

This product will be manufactured at Glenmark’s Baddi plant in India. A

ccording to IQVIATM sales data for the 12-month period ending January 2018, the Clobex Spray, market2 achieved annual sales of approximately USD 30.5 million.

Glenmark’s current portfolio consists of 131 products authorized for distribution in the US marketplace and 63 ANDA’s pending approval with the USFDA.

10:50 am Order Win: The heavy engineering arm of Larsen & Toubro has

received orders worth Rs 747 crore from Nuclear Power Corporation of India Ltd (NPCIL) to supply steam generators and end shields for its indigenously designed 700MWe Pressurized Heavy Water Reactors (PHWR) to be set up at Gorakhpur Haryana Anu Vidyut Pariyojana (GHAVP) in Fatehabad district of Haryana.

These steam generators and end shields will be manufactured at L&T’s integrated, state-of-the-art Hazira manufacturing complex in Gujarat, which is one of the largest of its kind in South Asia.

Steam generator is a critical equipment of the nuclear power facility that generates steam by using heat produced in a reactor core, while end-shield

is used to prevent the direct radiation coming out from a reactor core.

10:40 am Market Update: The market was off its day's high due to correction in HDFC and HDFC Bank, but ICICI Bank and Reliance Industries continued to support the market.

The Nifty Midcap was also off day's high, but continued trade with more than half a percent gains.

Even all sectoral indices were also off their opening highs.

The 30-share BSE Sensex was up 80.84 points at 33,147.25 and the 50-share NSE Nifty rose 29.90 points to 10,160.60.

10:30 am Fundraising: Shriram Transport Finance said the company was considering raising of funds through various options of borrowings including by way of issue of securities in onshore/offshore market on public / private placement basis.

Based on the market conditions the meeting(s) of Banking and Finance Committee/Debt Issuance Committee will be held during the month ending April, 2018 to consider and approve the terms and conditions of such borrowings.

10:20 am Technical Outlook: Aditya Agarwala of Yes Securities said a sustained trade above 10,175 on Nifty can trigger more short covering taking it to levels of 10,300. A breakout and close beyond 10,300 can extend the up move to levels of 10,450.

Moreover, failure to cross 10,175 can resume the corrections dragging it lower to levels of 9,920-9,690. Technical oscillator RSI has formed a positive divergence suggesting extended short covering rallies in the coming trading sessions before Index resumes its downward trajectory.

10:10 am Market Update: Benchmark indices continued to trade higher, but were off early highs due to correction in HDFC twins, Infosys and ITC.

The 30-share BSE Sensex was up 111.84 points at 33,178.25 and the 50-share NSE Nifty rose 34.30 points to 10,165.

About four shares advanced for every share falling on the BSE.

The Nifty Midcap index was also off day's high, rising 0.8 percent.

10:05 am NSE Approval for Merger: Share price of IDFC Bank and Capital First gained 3 percent on NSE approval for scheme of amalgamation.

IDFC Bank has received prior approval of National Stock Exchange of India (NSE) to the proposed amalgamation of Capital First, Capital First Home Finance and Capital First Securities with IDFC Bank, as per release.

NSE has given its prior approval for the amalgamation with respect to the amalgamated company's trading membership in the currency derivative segment of NSE.

The merger is still subject to approvals from the Reserve Bank of India, Stock Exchanges, Securities and Exchange Board of India (SEBI), the National Company Law Tribunal (NCLT) and respective shareholders and creditors of all the companies involved.

10:01 am Listing: Bandhan Bank share price jumped 30 percent on debut, following positive market conditions and good investors response to the issue.

The stock price has opened at Rs 487.33 on the National Stock Exchange, against issue price of Rs 375 per share.

9:50 am Listing Pre-opening: Bandhan Bank shares surged 33 percent in pre-opening trade to Rs 499 on the National Stock Exchange, against issue price of Rs 375 per share.

9:40 am Market Update: The market extended gains on positive global cues, with the Sensex rising more than 200 points and the Nifty is inching towards 10,200.

All sectoral indices are trading in the green, with the Nifty Metal and PSU Bank rising 1.5 percent.

The Nifty Midcap also participated in the rally, rising a percent on strong market breadth.

The 30-share BSE Sensex was up 204.95 points or 0.62 percent at 33,271.36, and the 50-share NSE Nifty gained 61.20 points or 0.60 percent at 10,191.90.

9:31 am Karnataka Elections: The Election Commission is likely to announce the polling schedule for 224-member Karnataka assembly today, official sources said.

The last state elections were held in the first week of May in 2008.

The polls are being seen politically crucial for the ruling Congress as well as the BJP as it is the only big state where the former is in power after losing a string of assembly elections to the saffron party in the last few years.

The BJP is making a concerted bid to unseat the Congress.

Beside, the Congress and the BJP, the JD(S) led by former prime minister H D Deve Gowda is the third player in the fray.

9:25 am Buzzing: Shares of Punj Lloyd surged more than 15 percent on winning contract worth Rs 505 crore.

The company has been awarded a contract worth Rs 505,22,31,836 for six/four lanning of NH 5 (New NH 16) from Puintola to Tangi in the state of Odisha.

The project is on EPC basis awarded by National Highway Authority of India (NHAI).

The construction period is 730 days from the appointed date, to be notified by NHAI after fulfillment of certain conditions precedent.

9:22 am Ex-Bonus: GAIL India share price fell more than 2 percent after the stock adjusted for bonus share issue.

The board has recommended the issuance of one bonus share of Rs 10 for existing three equity shares of Rs 10 each fully paid up on February 12, 2018.

For the purpose of allotment of bonus shares, it has fixed record date as March 29.

9:20 am ICICI Securities IPO: ICICI Securities, the subsidiary of ICICI Bank, finally closed the issue and raised approximately Rs 3,500 crore against total IPO size of Rs 4,017 crore earlier due to tepid response from non-institutional and retail investors on final day yesterday.

The offer was largely supported by qualified institutional investors whose reserved portion fully subscribed on the last day.

“The company has successfully closed its proposed Offer for Sale (OFS) by ICICI Bank and raised approximately around Rs 3,500 crore," ICICI Securities said.

Earlier the OFS attracted a strong response from anchor investors raising around Rs 1,717 crore on March 21, 2018. The QIB portion was fully subscribed as of 8:30 hours IST on March 26, 2018, it added.

9:15 am Market Check: Benchmark indices started off day on a positive note, with the Sensex rising 171.13 points to 33,237.54 and the Nifty gaining 54.70 points at 10,185.40.

Tata Steel, IOC, Axis Bank, Wipro, SBI, Bajaj Finance, Tech Mahindra, Hindalco and Vedanta rallied more than 1 percent while Bharti Airtel and Hero Motocorp were under pressure.

Nifty Midcap index was up 154 points as about 8 shares advanced for every share falling on the BSE.

Fortis Healthcare, Punj Lloyd, KNR Constructions, Dilip Buildcon, Dolphin Offshore, MEP Infrastructure, Canara Bank, Can Fin Homes, Corporation Bank, IDBI Bank, Bank of Baroda, Syngene International, Hindustan Zinc and Jet Airways gained up to 8 percent.

9:12 am Listing: Bandhan Bank shares will get listed on exchanges after its IPO was oversubscribed by 14.6 times. The bank raised Rs 4,500 crore from the IPO.

9:08 am Stocks in news: Wockhardt arm Wockhardt Bio AG gets USFDA nod for Oxacillin sodium injectable

Aurobindo Pharma gets tentative USFDA nod for Emtricitabine (20 mg) Capsules

ICICI Bank: The bank has allotted 1,07,215 shares of face value Rs 2 on March 26 under the ESOP scheme.

Capital First: Merger with IDFC Bank has received the nod of National Stock Exchange (NSE).

MCX India: MCX brass futures contract debuts with volume of Rs 14.71 crore.

Tata Metaliks: Operations at Kharagpur plant to be hit due to planned shutdown at its blast furnaces, sinter plant and captive power plants between March 26 and April 6, 2018.

Power stocks: Power minister RK Sinha has said that he has proposed NTPC, PFC, REC to make SPV to operate stressed assets.

Punj Lloyd has received a contract worth Rs 505 crore in Odisha on EPC Basis by NHAI.

9:05 am Technical Recommendations: Here’s what HDFC Securities has to recommend:

Bajaj Electricals: BUY| Target Rs618 | Stop-loss Rs530 | Return 10%

Manappuram Finance: BUY| Target Rs116 | Stop-loss Rs105| Return 7%

TV18 Broadcast: BUY| Target Rs72 | Stop-loss Rs65 | Return 7%

(Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.)

9:02 am Bond Yield Update: Indian government bonds rallied with the benchmark 10-year yield falling to its lowest in two months on Tuesday following a surprise cut in the borrowing programme for the fiscal year starting April.

The 10-year bond yield dropped to as much as 7.3565 percent from 7.62 percent, its lowest since January 29, while the rupee was at 64.77 per dollar from 64.87 on Monday.

India plans to borrow Rs 2.88 lakh crore during April-September, the government said after market hours on Monday, adding it will borrow Rs 50,000 crore less for the full year 2018/19.

9:00 am Market Check: The market rallied more than half a percent in pre-opening trade, tracking positive global cues on easing trade war tensions.

The 30-share BSE Sensex gained 170 points and the 50-share NSE Nifty rose 54 points.

Trends on SGX Nifty also indicated a positive opening for the broader index in India, a rise of 19.5 points. Nifty futures were trading around 10,170-level on the Singapore Exchange.

Wall Street scored its best day in 2-1/2 years and the Dow Jones Industrial Average saw its third-biggest point gain ever on Monday, as trade war fears eased on reports the United States and China are willing to renegotiate tariffs and trade imbalances, Reuters reported.

The Dow Jones Industrial Average rose 669.4 points, or 2.84 percent, to 24,202.6. The two larger point gains for the Dow were in October 2008. The S&P 500 gained 70.29 points, or 2.72 percent, to 2,658.55 and the Nasdaq Composite added 227.88 points, or 3.26 percent, to 7,220.54. 7,220.54

Asian stocks rose on Tuesday after Wall Street rebounded on the first day of the trading week amid a slight easing in trade tensions. The Nikkei 225 rose 1.67 percent while the Topix gained 1.76 percent. Seoul's Kospi also gained in the early going. The benchmark added 0.66 percent.