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Friday, 28 November 2014

Sensex, Nifty end at record closing high on oil prices fall

03:30pm Market Closing

The market ended at new record closing high on Friday following further fall in crude oil prices after the OPEC decided not to cut output. Hopes of rate cut or indication of rate cut in monetary policy on December 2 also pushed market higher.

The Sensex rose 255.08 points or 0.90 percent to close at 28693.99 and the Nifty climbed 94.05 points or 1.11 percent to 8588.25.

About 1499 shares have advanced, 1521 shares declined, and 99 shares are unchanged on the Bombay Stock Exchange.

Punjab National Bank, Bank of Baroda, Asian Paints, State Bank of India, IndusInd Bank, Axis Bank, Tata Motors, Tata Steel and M&M were top gainers, up 2.5-7.4 percent.

However, Cairn India fell 4.44 percent followed by Sesa Sterlite with 3 percent loss. Jindal Steel, Bharti Airtel, ONGC, GAIL and Dr Reddy's Labs declined 0.4-0.9 percent.

03:15pm DLF in News

In a temporary relief for realty major DLF, the Supreme Court (SC) today has granted status quo to the Punjab and Haryana High court order directing re-auction of 350 acre land parcel, which was alloted to the company in the year 2009.

The Punjab and Haryana High court had ordered the Haryana Government to scrap this land deal after concerns were raised by the farmers. Also, it had directed re-auction of this land.

The apex court has also issued notice to the Haryana government with respect to the DLF appeal.

DLF was allotted this land at Wazirabad in Gurgaon for Rs 1750 crore. The company emerged as sole bidder in competitive bids after Unitech, Malaysian Consortium dropped out of it on technical grounds. The real estate player had submitted bids for 12,000 per sq mt as against a reserve price for 11,978 per sq mt.

03:00pm NBFCs in Focus

Shares in non-banking finance companies (NBFCs) gained ground today after the Raghuram Rajan-led Reserve Bank of India (RBI) last evening issued final guidelines for allowing the set up of “payment banks” and “small finance banks” in the country.

Shares of Shriram Transport Finance, Sundaram Finance, SREI Infra Finance, Manappuram Finance and Muthoot Finance surged 3.9 percent to 4.3 percent amid hopes the companies would have a shot at turning themselves into small banks.

The central bank defines a payment bank as one that will be allowed to take deposits and offer remittances up to a small limit (Rs 1 lakh currently) to its customers but cannot lend money. A small finance bank will operate in a similar fashion to a normal bank (by taking deposits, offering withdrawals as well as offering loans) but with a focus on small, underserved areas of the country.

A typical candidate for a payments bank is a telecom company or a retail chain that can tap into its existing captive customers and provide them technology-based financial services such as payments and withdrawals.

While the issue of guidelines pertaining to small banks is expected to pave the way for several non-banking finance companies (NBFCs) to convert into one, a move that would also bring them closer to becoming a universal bank in future. More information please visit this site

Sensex, Nifty up 1%; Cairn India, Sesa Sterlite top losers

01:40pm Bajaj Corp in News

Bajaj Corp said the board of directors of the company today has passed necessary resolution for increase in the limit of total holding of all Registered Foreign Portfolio Investors (RFPI) with existing class of investors namely Foreign Institutional Investors (FIIs) and Qualified Foreign Investors (QFIs) from existing 24 percent to 49 percent. It is subject to approval by shareholders by way of special resolution.

The board has also approved convening an extraordinary general meeting of the shareholders of the company on December 30, 2014 to seek shareholders approval for the aforesaid increase in limit from existing 24 percent to 49 percent. The stock gained more than 5 percent.

01:25pm Interview

The government on Wednesday hiked the floor area ratio (FAR) to 200 in New Delhi for all plots sized 750 square metre and above. This means that a builder can now construct an additional minimum 4,000 square feet.

Anup Mittal, Chairman of National Buildings Construction Corporation (NBCC) feels the recent hike in FAR will not impact any existing projects, in fact, he sees it as a beneficial step for the industry.

Currently, NBCC has 50-60 acres of land around Delhi. Although incremental benefits from hike will be limited for the company, it hopes to develop and build more in upcoming projects, he says in an interview to CNBC-TV18.

Going ahead, he expects real estate business revenue to surpass Rs 300 crore in H2FY15 amid higher levels of inventory selling.

01:15pm Nikkei at 2-week high

Japanese stocks rose to a two-week high today as a weaker yen helped exporters, while falling oil prices benefited airline and railway stocks such as ANA Holdings Inc and East Japan Railway Co.

The Nikkei benchmark ended 1.2 percent higher to 17,459.85, the highest closing price since November 14. The benchmark gained 0.6 percent for the week and jumped 6.4 percent for the month, the biggest monthly gain since last November.

Since October 31, the Nikkei gained because of the Bank of Japan's surprise easing and the Government Pension Investment Fund's decision to increase its allocation to Japanese stocks.

Also helping sentiment on Friday was better-than-expected Japanese industrial output, which unexpectedly rose 0.2 percent in October.

Oil prices plunged on Thursday after OPEC chose not to cut production despite huge oversupply and prices sliding by one-third since June, reports Reuters.

01:00pm Market Check

Equity benchmarks continued to see runaway rally on Dalal Street on first day of the December series, reacting to the further softening in Brent crude prices that touched USD 71.25 (in previous session) - the lowest since July 2010 after OPEC decided to keep production targets unchanged.

The 50-share NSE Nifty soared 110.70 points or 1.30 percent to 8604.90 and the 30-share BSE Sensex climbed 339.96 points or 1.20 percent to 28778.87 aided by banking & financials, oil and auto stocks.

Advance:decline gap narrowed in afternoon trade but the broader markets maintained strong uptrend. The BSE Midcap and Smallcap indices gained 1.2 percent and 0.8 percent, respectively. About 1581 shares have advanced while 1168 shares declined on the Bombay Stock Exchange.

Shares of ICICI Bank, State Bank of India, Reliance Industries, L&T, Tata Motors, Axis Bank, M&M, Maruti and Tata Steel rallied 2-4.5 percent whereas Sesa Sterlite fell 1.5 percent.

Lower crude prices impacted a basket of stocks today. Oil marketing companies gained between 4-8 percent while Cairn India lost more than 3 percent. Paint and tyre stocks such as Asian Paints and Apollo Tyres also surged 4 percent as they operationally benefit from lower crude prices.

Aviation stocks got a fillip from Brent falling to new lows. Jet Airways gained 20 percent and SpiceJet shot up 13 percent. An ICRA upgrade provided further upside for Jet Airways.

In macro data to watch out today, second quarter GDP may point to a slowdown in growth rate. CNBC-TV18 poll shows Q2 GDP coming in at 5.2 percent led by slower manufacturing.

The other clutch of stocks in focus are smaller NBFCs, microfinance companies such as SKS Microfinance, Manappuram Finance and SE Investments reacting to the final guidelines on small and payment banks that were released last evening. Sundaram Finance told CNBC-TV18 that norms are more attractive for microfinance companies as compared to NBFCs. More information please visit this site

Thursday, 27 November 2014

Sensex, Nifty at new high as Brent crude at fresh 4-yr low

10:30am Interview

8K Miles Software Services, the global secure cloud solutions company, through its US subsidiary announced the acquisition of SERJ Solutions. SERJ provides innovative Epic EHR consulting, custom application development, and support solutions for the healthcare market.

Suresh Venkatachari, chairman & CEO, 8K Miles in an interview to CNBC-TV18 said the company has paid Rs 15.8 crore for the acquisition and the funding was through internal accruals and warrant issue. Serj currently generate revenues to the tune of Rs 35-40 crore, he added.

The company is also looking at one or two more acquisition opportunities in the near-term and is likely to complete an acquisition in FY15. They are looking at opportunities in healthcare and life sciences space. "Our intention is to leverage our cloud based offering to this domain mathematical. So, what we are looking at is a strong domain technology company where we can able to integrate with our cloud, secure cloud offering and we can offer as software service or planning services," said Venkatachari. 

Serj has no debt on the books and neither does 8K Miles except line of credit, he said.

10:20am Just Dial in focus

Just Dial gained nearly 3 percent as RBI says FIIs/RFPIs can now invest up to 75 percent under PIS in the company.

"The Reserve Bank of India has advised that foreign institutional investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 75 percent (revised from earlier limit of 49 percent) of the paid up capital of Just Dial Limited under the Portfolio Investment Scheme," said the RBI.

The Reserve Bank has stated that the company has passed resolutions at its Board of Directors’ level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs.

10:10am Market Expert

Vibhav Kapoor of IL&FS is bullish on the Indian market and sees the Nifty rising to 8,750 this month. In an interview to CNBC-TV18 he said that medium term base for the Nifty has moved up to 8,000 levels.

Sharing views on the much-waited December 2 monetary policy, he said that the current trend of falling crude oil price open up possibility of an earlier than anticipated rate cut. He is hoping RBI governor Rajan to slash rates in the upcoming policy. “If rate cut is not announced on December 2nd, then the market could see a mild negative reaction,” he added.

10:00am Market Check

Bulls kept complete control over bears on Dalal Street. The market continued to trade near record high following the OPEC's decision of not cutting oil output. Paint, tyre, airline etc companies rallied on hopes of fall in raw material prices after Brent crude oil prices hit fresh four-year low of USD 71.25 a barrel in previous trade.

The Sensex shot up 319.05 points or 1.12 percent to 28757.96 and the Nifty climbed 98.15 points or 1.16 percent to 8592.35. Advancing shares outnumbered declining ones by a ratio of 1440 to 552 on the Bombay Stock Exchange.

Shares of ICICI Bank, State Bank of India, Axis Bank, HDFC Bank, and housing finance company HDFC rallied 1-4 percent on hopes of indication of rate cut from the Reserve Bank of India in its monetary police on December 2 (next week) after falling oil prices in international market. More information please visit this site

Sensex, Nifty rangebound; Brent crude slips to 4-year low

03:30pm Market Closing

The market closed with marginal gains on Thursday, the expiry day for November series derivative contracts. The 50-share NSE Nifty ended tad below the 8500-mark, up 18.45 points at 8494.20 while the Sensex rose 52.72 points to 28438.91.

The broader markets outperformed benchmarks throughout the session. The BSE Midcap and Smallcap indices gained 0.5 percent each. About 1585 shares advanced while 1364 shares declined on the Bombay Stock Exchange.

BHEL topped the buying list, up 5.73 percent followed by HUL, Tata Power, Cipla, Hindalco Industries, Punjab National Bank and HCL Technologies with 1.8-3 percent gain.

However, Bharti Airtel, Tata Steel, Sesa Sterlite, Larsen & Toubro, ONGC, DLF, Ambuja Cements and Grasim Industries fell 0.7-2.6 percent.

03:00pm SMS Pharma up 5%, Natco Pharma gains 7%

SMS Pharmaceuticals said the legal disputes between the company and Natco Pharma have been amicably settled.

"Out of the settlement, the company has received a sum of Rs 15.07 crore from Natco Pharma apart from the balance principal amount receivable from the respective courts.

02:45pm Cipla, Strides in News

Medicines for Malaria Venture (MMV) signed collaboration agreements with two Indian pharmaceutical companies, Cipla and Strides Arcolab for the development of rectal artesunate for pre-referral treatment of children with severe malaria.

The collaborations, established under the MMV-led "Improving Severe Malaria Outcomes" project funded by UNITAID1, aim to develop a rectal artesunate product for submission to WHO prequalification.

Cipla and Strides will each develop a product building on the clinical studies led by TDR, the Special Programme for Research and Training in Tropical Diseases led by the World Health Organization.

The goal is to achieve WHO-prequalification of a rectal artesunate product by 2016.

02:30pm Auto industry in focus

India may extend excise duty concessions for carmakers beyond December 31, a finance ministry source said today, as the industry continues to struggle with sluggish demand due to high interest rates.

"Car sales are down. The government could extend tax relief to the auto sector beyond December 31," the source said on condition of anonymity.

The excise duty concessions, which were granted in February this year, will lapse on Dec. 31, if not extended, reports Reuters.

02:00pm Market Check

The market continued to be rangebound with the Nifty moving in a 30 points trading range. Technology, healthcare and power stocks gained.

The 30-share BSE Sensex declined 17.24 points to 28368.95 and the 50-share NSE Nifty slipped 2.80 points to 8472.95. About 1456 shares have advanced, 1327 shares declined, and 126 shares are unchanged.
However, it has been a strong November series with the Nifty rising 3.8 percent and Bank Nifty up 7.3 percent for the series.

Krishna Kumar Karwa of Emkay Global told CNBC-TV18 that investors should regularly invest now and not time the market. "We could see some consolidation towards the year-end. However, there is atleast 2-3 years of structural improvement in the economy," he said.
It’s a mixed day for most Asian markets, Japan's Nikkei and Hong Kong's Hang Seng closed with losses of More information please visit this site

Nifty hovers around 8470; ITC & HDFC drag, Hindalco up 4%

01:20pm Gold declines

Gold dipped for a second session today, holding below USD 1,200 an ounce, as outflows resumed from the top bullion exchange-traded fund and traders remained cautious before an upcoming Swiss referendum on central bank bullion assets.

A weaker dollar after lacklustre US data, however, checked losses in gold which is seen as a safe-haven asset.

Spot gold slipped 0.1 percent to USD 1,195.90 an ounce by 0253 GMT, but trading is expected to be thin with the US markets closed for Thanksgiving.

The metal dipped 0.3 percent on Wednesday as bearish market sentiment offset a drop in the US dollar, reports Reuters.

01:00pm Market Check

The 50-share NSE Nifty continued to hover around 8470 level, down 7.45 points to 8468.30 on the day of expiry of November derivative contracts. The 30-share BSE Sensex fell 34.99 points to 28351.20.

The BSE Midcap and Smallcap indices gained 0.4 percent and 0.5 percent, respectively. About 1416 shares advanced while 1276 shares declined on the Bombay Stock Exchange.

It is time for retail investors to increase exposure to equities as the economy is likely to see a structural improvement over the next 2-3 years, feels Krishna Kumar Karwa, Managing Director, Emkay Global.

He says investors should invest regularly and not try to time the market.

Aluminium major Hindalco Industries topped the buying list, up 4 percent followed by Infosys, Hindustan Unilever, Sun Pharma, Mahindra & Mahindra and BHEL with 1-2 percent gain.

However, Shares of ITC, HDFC, Tata Motors, Bharti Airtel and Sesa Sterlite saw selling pressure, down 1-2 percent. L&T, HDFC Bank, Axis Bank, Reliance Industries and State Bank of India fell marginally.

Among midcaps, Motilal Oswal, Kalpataru Power, Jet Airways, Gujarat State Petronet and Strides Arcolab rallied 4-12 percent while Crompton Greaves, Anant Raj, Sundaram-Clayton, HCC and Gujarat Pipavav slipped 2.5-5 percent. More information please visit this site