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Friday, 28 November 2014

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

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