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Thursday 8 January 2015

Nifty ends at 8235, Sensex up 366 pts; Infosys gains 1%

03:30 pm Market close

The market ended with some spectacular gains. The Sensex ended up 365.89 points or 1.4 percent at 27274.71 and the Nifty was up 132.50 points or 1.6 percent at 8234.60. About 2033 shares have advanced, 852 shares declined, and 411 shares were unchanged.

03:10 pm Weak Q3

Realty firm Sobha Ltd's sales bookings declined by 15 per cent to Rs 427 crore during the third quarter of this fiscal due to slowdown in demand. Bangalore-based Sobha had achieved sales bookings of Rs 502.3 crore in the year-ago period. "Q3'15 was operationally a subdued quarter with the company achieving new sales of 6,61,451 sq ft valued at Rs 4.27 billion with an average realisation of Rs 6,456 per sq ft," Sobha said in its operational update.

In volume terms, Sobha sold 6.61 lakh sq ft of area during October-December against 7.4 lakh sq ft in the corresponding period of previous fiscal. Sales realisation also dropped to Rs 6,456 per sq ft from Rs 6,786 per sq ft during the period under review. "The real estate sector continues to be bogged down by inflexible interest rates, approval delays and slowing demand," Sobha said

02:55pm Market Update

The Sensex surged 407.59 points to 27316.41 and the Nifty gained 141 points at 8243.05. The BSE Midcap and Smallcap indices rallied 1.9 percent each.

02:45pm FII View

Herald Van Der Linde, Head-Equity Strategy, Asia-Pacific, HSBC understands the reason why Asian equities will see a decent growth this year. In an interview, he said the bull run will continue for a while more, although US rate hike fears will cause multiple scares through the course.

He says equity valuations and price earnings ratios are likely to remain static but corporate earnings growth can drive Asian equities higher by about 7 percent this year. "India can do even little bit higher than that, but I also think it will come with an increasing amount of volatility."

02:35pm Gravita India in demand

CARE Ratings has upgraded the bank loan rating of Gravita based on its improved scale of operations and continuous business performance. The rating agency CARE has upgraded Gravita's long term bank loan rating to A- and short term bank loan rating to A2+ from BBB+ and A2 respectively. This will help company to reduce its interest cost on the borrowings.

02:20pm PFC, REC divestment

The roadshow for the divestment in PFC and REC is likely to start on January 12 and continue till January 16.

The government plans to divest 5 percent in both these companies in FY15 and hopes to garner around Rs 3,000-3,400 crore via stake sale. The roadshows will be conducted in Hong Kong, Singapore, London, New York, Boston, Mumbai and Chennai.

However, sources indicate that NHPC stake sale and RINL, HAL listings are unlikely in FY15. There has been uncertainty too over the residual stake sale in HZL and BALCO during the current fiscal year as Finance Ministry is planning to send it back to Mines Ministry. But the government is hopeful of divesting its stake in Coal India before February.

The government has proposed to offload 10 percent stake in Coal India in FY15. According to sources, it may reserve 10 percent stock for Coal India employees in OFS. Sebi rules allow promoters to reserve up to 20 percent for retail investors.

The other mechanism that the Finance Minister may look at to offload more stake would be through CPSE ETF, launched last year.

02:00pm Market Check

The market extended gains in afternoon trade with the Sensex rising 375.64 points or 1.40 percent to 27284.46 and the Nifty climbing 129 points or 1.59 percent to 8231.10. The broader markets continued to outperform, the BSE Midcap and Smallcap indices jumped more than 1.8 percent.

About 1975 shares have advanced, 770 shares declined, and 403 shares are unchanged on the Bombay Stock Exchange.

Adrian Mowat of JPMorgan says oil price decline is a boon for Asian consumers. "This is an excellent buying opportunity in global equities, reasonable to expect 20 percent returns in India this year, new government has been working ever since it came to power," he adds.

Asian equity markets with the exception of Shanghai gained today. Europe gained more than a percent. However, Brent crude erased all its gains, falling 0.37 percent to USD 50.96 a barrel while US crude lost 0.08 percent to USD 48.61 a barrel.

The Indian rupee too extended recovery, rising 48 paise to 62.69 a dollar.

Coal India gained over 1 percent after trade unions called off their strike late last evening. Coal Minister, Piyush Goyal says workers' issues have been addressed. Morgan Stanley remains equalweight on the stock.

In a bid to deliver at least USD 400 million of cost savings in 2015, Standard Chartered announced closure of its loss-making institutional cash equities and equity research operations. The bank says this move is expected to impact nearly 200 roles immediately and expects a reduction of almost 2,000 people in 2015. More information please visit this site www.bigprofitbuzz.com

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