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Tuesday, 31 March 2015

Sensex consolidates, Smallcap rises over 1%; Maruti slips



11:30am FII View: The combination of a pick-up in economic and earnings growth as well as a fall in interest rate would help markets to stay strong going forward, believes Adrian Mowat of JPMorgan.

In an interview with, Mowat said that he expectedearnings growth to pick up in the latter part of the new financial year and advised investors to play the expected pick-up in infrastructure indirectly through building-materials companies.

“The government is making progress in tackling issues. The passage of the insurance bill, as well as the progress in GST andon other technical issues [related to the power sector] will bode well,” he said.

A careful stock-picking approach with focus on high-quality cyclical companies and banks should fetch investors about 20 percent returns ahead, Mowat added.

11:00am Market Check

The market remained lacklustre in morning trade with the Nifty hovering around 8480 level while the broader markets extended gains. The BSE Midcap and Smallcap indices climbed 0.8 percent and 1.2 percent, respectively.

The 30-share BSE Sensex rose 6.77 points to 27964.26 while the Nifty fell 2.35 points to 8488.65. About 1520 shares have advanced, 668 shares declined, and 149 shares are unchanged.

HCL Technologies plunged 4.4 percent as the company warned of a negative 280 basis points impact on dollar revenue and negative 80 basis points impact on EBIT margins due to adverse cross currency. They also guided for margins to be maintained between 21-22 percent. Nomura said the drop in margins to guided range seems to be happening in a quarter, which will likely lead to some cuts in street margin and earnings expectations and also some near-term moderation in the stock price.

Fertilsers stocks like Chambal Fertilisers, ZuariAgro gained ground as cabinet approved gas pooling for fertiliser sector for 30 urea manufacturing units. Zuari Agro an interview that their current gas cost will go down to USD 11-12/mmbtu from USD 20/mmbtu and will also reduce the working capital cycle.

Maruti Suzuki declined 1.7 percent on account of auto sales. The company reported a 1.6 percent year-on-year decline in total sales with domestic sales up 1.4 percent but exports down 29.3 percent. More information please visit this site www.bigprofitbuzz.com

Sensex, Nifty close lower; banks, IT, capital goods drag

03:30pm Market Closing: The market reversed its gains due to profit booking in last couple of hours of trade. The Sensex fell 18.37 points to 27957.49 and the Nifty declined 1.30 points to 8491.

However, the broader markets outperformed benchmarks. The BSE Midcap and Smallcap indices gained 0.3 percent and 0.9 percent, respectively. About 1581 shares have advanced, 1141 shares declined, and 176 shares are unchanged on the BSE.

ONGC, Hindalco Industries, Tata Steel, HDFC Bank, M&M, PNB and UltraTech Cement lost 1-3 percent while BPCL rallied 5 percent. Tata Power, GAIL, Tata Motors, Reliance Industries and Dr Reddy's Labs gained 1.5-3.5 percent.

03:05pm HCC in News: HCC, the leading infrastructure construction company, has been awarded contract worth Rs 392.13 crore from the Ministry of Road Transport and Highway (MoRTH) for 4-laning of 26km long road on NH52 between Jamugurihat to Biswanath Chariali by-pass in Assam. The project will be completed in 36 months.

The project is part of the Special Accelerated Road Development Programme for North Eastern Region (SARDP-NE) and includes rehabilitation, upgradation and augmentation of the existing carriageway, major and minor bridges, culverts, road intersections, interchanges, drains, etc.

The order-book position as of December 2014 stood at Rs 14,307 crore.

02:50pm Wheat import largest in 5 years:

Purchases by the Fworld's No.2 wheat consumer and producer could buoy benchmark Chicago prices , which rallied more than 6 percent in the past two sessions and are currently near a one-week top amid concerns over dry weather and rising temperatures hurting the US winter crop.

Indian flour millers have bought between 70,000 and 80,000 tonnes of Australian prime wheat for April-May shipment at USD 260-USD 265 a tonne, including cost and freight.

"They have bought three cargoes as some mills are taking coverage because of reports of rain damage," said one Singapore-based trading manager with an international trading company.

"We don't expect India to buy large volumes as they have substantially large stocks but there could be some demand for higher grade wheat."

02:25pm Market Update: The market erased gains with the Sensex falling 8.12 points to 27967.74 and the Nifty declining 4.80 points to 8487.50.

About 1552 shares have advanced, 1036 shares declined, and 179 shares are unchanged on the BSE.

02:15pm Videocon d2h IPO: Videocon d2h, the satellite television arm of Videocon Group, will have to file a new draft prospectus for an initial public offering in domestic markets after fund raising via American depositary shares (ADS), Saurabh Dhoot, director of the company, told Reuters.

Videocon d2h agreed to sell ADS worth up to USD 375 million to US-based Silver Eagle Acquisition Corp in January, which would get listed on Nasdaq stock exchange on Tuesday.

That means the company has to file a new application after filing one in October 2014 to raise up to Rs 700 crore (USD 113.3 million).

"We would have a market cap of close to USD 1.2 billion and an enterprise value of USD 1.5 billion after Nasdaq listing," Dhoot added.

02:00pm Market Check

The market extended rally in afternoon trade with the Nifty inching towards 8550 led by banks and oil stocks. The broader markets gained further too; the BSE Midcap climbed 0.8 percent and Smallcap surged 1.4 percent.

The Sensex jumped 193.10 points to 28168.96 and the Nifty shot up 57.10 points to 8549.40. About 1681 shares have advanced, 886 shares declined, and 152 shares are unchanged on the BSE.

Anish Damania of IDFC Securities expects Nifty to remain range bound between 8000-9000 over the next six months.

Country's largest lenders State Bank of India, ICICI Bank and Axis Bank gained 1-1.5 percent whereas HDFC Bank fell 0.5 percent. Tata Motors extended upside, up 3.3 percent.

Tata Power rallied 3.7 percent and Adani Power gained over a percent. Supreme Court ruled that companies can use argument of change in international law to charge higher tariff.

Reliance Industries rose over 2 percent as brokerage Morgan Stanley upgraded the stock to overweight from underweight and raised target price to Rs 1,062. More information please visit this site www.bigprofitbuzz.com

Sensex, Nifty maintain uptrend; Tata Motors, Tata Power up

01:20pm Interview: While the growth in the mid-term looks healthier than in the near-term, Vineet Nayyar, executive vice chairman, Tech Mahindra says he is cautiously optimistic on FY16 growth.

Speaking, Nayyar says the global demand scenario has seen a turmoil but US market will continue to drive growth.

On any further acquisitions, Nayyar says the company's focus right now will be on making all prior acquired companies grow at healthy rates.

01:00pm Market Check

The market remained firm in afternoon trade aided by consistent upmove in oil, pharma, select banks and auto stocks. The Sensex rallied 127.58 points to 28103.44 and the Nifty jumped 36.85 points to 8529.15.

The broader markets extended gains with the BSE Midcap and Smallcap indices rising 0.7 percent and 1.3 percent, respectively. About 1596 shares have advanced, 879 shares declined, and 161 shares are unchanged on the Bombay Stock Exchange.

According to Deven Choksey, KR Choksey Shares & Securities, the Nifty will consolidate in 8200-8700 range and if it breaches those levels then 9000-9200 on the upside is likely.

Reliance Industries gained further, up 2.5 percent as brokerage Morgan Stanley upgraded the stock to overweight from underweight and raised target price to Rs 1,062. Tata Motors too rallied 2.5 percent followed by Sun Pharma, HUL, Axis Bank, Maruti, Dr Reddy's Labs, GAIL, Coal India and Sesa Sterlite with 1-2 percent upside.

Tata Power and Adani Power gained 1.5-3.5 percent as Supreme Court ruled that companies can use argument of change in international law to charge higher tariff.

Oil marketing companies stocks like IOC, HPCL and BPCL surged nearly 5 percent as IOC chairman, B Ashok that they will report healthy profit in Q4. Inventory losses have been made up and currently they enjoy healthy margins on petrol cracks.

However, Infosys, ITC, TCS, HDFC Bank, NTPC, Bajaj Auto and BHEL declined 0.5-1 percent. More information Please visit this site www.bigprofitbuzz.com


Sensex holds 28000; IOC, HPCL, BPCL, ONGC rally 1-5%

11:45am Stocks in Focus: SBI remained in focus as the bank has approved divestment in SBI Life by upto 10 percent. VG Kannan, MD, SBI saysthere are no plans to sell more than 10 percent stake at this stage and stake is valued at around Rs 2500 crore.

Reliance Industries climbed 2 percent as Morgan Stanley has upgraded the stock to overweight from underweight. It expects earnings to grow 50 percent over FY15-18e driven by downstream expansion.

CLSA reiterated its high conviction buy call on Infosys and raised target price to Rs 2800 from Rs 2500. It expects stronger revenue growth in FY16/17 as new management is in place and it should gain leadership in digital and traditional services while improving client mining. The stock fell 0.5 percent on profit booking.

Dr Reddy's Labs also gained 2 percent as CLSA has a buy rating on the stock, saying remediation efforts at Srikakulam API plant is on.

JK Tyre jumped 10 percent. Antique met the management and a few takeaways include the surge in Chinese import share not sustaining in the longer run especially with a cyclical revival in domestic commercial vehicles expected to start in H2FY16.

11:25am Road projects: After having awarded a total of 3000 km road projects in FY15, National Highways Authority of India now aims to award 9000 km road projects in FY16, says member- Finance Satish Chandra.

In an interview Chandra says the road authority also deferred premium payments for 13 projects to the tune of Rs 7000 crore in FY15.

Furthermore, Chandra adds the FY16 expenditure is  likely to be about Rs 75000 crore.

11:00am Market Check

The market continued to gain into today's trading session with the Sensex holding 28000 level. The broader markets outperformed with a firmadvance:decline ratio.

The Sensex advanced 66.20 points to 28042.06 and the Nifty gained 21.60 points at 8513.90. The BSE Midcap Index rose 0.6 percent and Smallcap rallied 1.3 percent.

About 1499 shares have advanced, 652 shares declined, and 137 shares are unchanged on the Bombay Stock Exchange.

Herald Van Der Linde, HSBC is still overweight on India and do not think investors are selling India to buy China although it has become more attractive on back of some key policy changes by The People's Bank of China (PBOC).

He believes there are no specific risks in India, the only risk being other markets could become more attractive. However, he does not see money being rotated out of India into other emerging markets either.

Oil marketing company stocks surged as the IOC chairman, B Ashok that they will report healthy profit in Q4. "Inventory losses have been made up and currently we enjoy healthy margins on petrol cracks. Under-recoveries will fall from Rs 15,500 crore in Q1 to Rs 3,000 crore in Q4," he says. IOC, HPCL and BPCL rallied 3-5 percent while ONGC also gained 1 percent.

Globally, Asia remained mostly firm, tracking the positive close on Wall Street. Shanghai markets gained 0.3 percent as Beijing unleashed a new policy to rejuvenate the property market. For more information please visit this site www.bigprofitbuzz.com  


Monday, 30 March 2015

Sensex up 517 pts, Nifty ends tad below 8500; banks lead

03:30pm Market Closing: The market staged spectacular performance on Monday with the Nifty reclaiming 8500 level and Sensex hitting 28000-mark led by banking & financials, FMCG, capital goods and IT stocks.

The Sensex surged 517.22 points or 1.88 percent to 27975.86 and the Nifty rallied 150.90 points or 1.81 percent to 8492.30. Nearly three shares advanced for every share declining on the Bombay Stock Exchange.

Idea Cellular was the biggest gainer on Nifty, up 6.21 percent. UltraTech Cement, Asian Paints, HDFC, Bharti Airtel, ONGC, Axis Bank and L&T rallied 3-5 percent. Hindalco, Tech Mahindra and Cairn India lost 1.5-3 percent.

03:25pm FII View: Vivek Misra, Strategist- Asian Equities, Global Research & Strategy, Societe Generale, said he is overweight on both India and China, with the latter being his top pick.

According to Misra, the investor flows have been relatively strong into India. He expects relatively strong earnings from Indian corporates over the next 2 years, with signs of improvement being visible in 2-3 quarters.

Societe Generale expects potential upside of 32 percent in India by 2016 and has a Sensex target of 32,500 by the end of 2015, Misra said.

03:15pm Nifty eyes 8500: The Sensex rallied 520.10 points or 1.89 percent to 27978.74 and the Nifty climbed 154.40 points or 1.85 percent to 8495.80.

About 2042 shares have advanced, 746 shares declined, and 147 shares are unchanged on the BSE.

03:00pm Market Update: The market gained more strength in last hour of trade. The Sensex rallied 480.04 points or 1.75 percent to 27938.68 and the Nifty rose 140.35 points or 1.68 percent to 8481.75. About 1987 shares have advanced, 725 shares declined, and 139 shares are unchanged on the BSE.

Bank Nifty gained 250 points as State Bank of India, ICICI Bank, HDFC Bank and Axis Bank rallied 1-2.6 percent. Housing finance company HDFC, cigarette major ITC and state-run oil company ONGC climbed over 3 percent.

02:50pm Global Markets: Shares rose today with Asian stocks buoyed by hopes for stimulus to boost China's economy, but the euro slipped on more concern about Greece's finances.

In Europe, a rally in technology shares, tracking Friday's surge in the US tech sector, helped equities bounce back from losses last week, although Athens' stock market was down on concern about whether the country will be able to reach agreement with its creditors.

Germany's DAX index rose 1.5 percent, Paris gained 1.2 percent and the overall FTSE Eurofirst index of 300 leading European companies was up by 1.1 percent.

Chinese stocks surged to seven-year highs, helped by Beijing's unveiling of an ambitious plan to build a modern Silk Road to Europe and Africa and signs from People's Bank of China Governor Zhou Xiaochuan that added to expectations of more monetary policy easing.

Shanghai shares were up another 2.5 percent today, the market's best day since the middle of January.
02:40pm Interview: Irfan Razack, CMD of Prestige Estates said the company is confident of beating FY15 sales guidance of Rs 5000 crore backed by a healthy demand scenario.

The company did pre-launch of six projects in Bangalore and it is also seeing a good response for their new projects in Hyderabad.

Going forward they are confident of attaining 15-20 percent growth and expect revenues from Kochi and Chennai to improve significantly in FY16.

02:20pm Gold Update: Gold dropped for a second straight session today, slipping further from a three-week high, as the dollar climbed after Federal Reserve Chair Janet Yellen signaled the US central bank may be on course to raise interest rates later this year.

Bullion may be set to give up recent gains fueled by the Fed's March policy statement that it was prepared to move more slowly in hiking US rates than the market expected. The metal rose for seven consecutive sessions after the Fed's meeting this month in its longest rally since 2012.

On Friday, Yellen said an increase in the Fed's benchmark rate "may well be warranted later this year" given sustained improvement in US economic conditions.

Bullion is headed for a second consecutive monthly drop in March as a looming US rate hike dims the appeal of a non-interest bearing asset.

02:00pm Market Check:

Bulls kept complete control over Dalal Street today. The Sensex extended rally, up 401.19 points or 1.46 percent at 27859.83 and the Nifty surged 111.50 points or 1.34 percent to 8452.90.

The broader markets also gained further with the BSE Midcap and Smallcap indices rising 1.6 percent and 2.8 percent, respectively. About 1911 shares have advanced, 723 shares declined, and 133 shares are unchanged on the BSE.

UltraTech Cement, Idea Cellular, ONGC, ITC, Bharti Airtel and Coal India topped the buying list on Sensex, up 3-4 percent.

HDFC gained 2.5 percent after Keki Mistry with regards to HDFC Life the timing or amount of IPO is not decided yet and Standard Life will want to increase stake in HDFC Life but the quantum is not decided. Separately, they see scope of further 25 to 50 bps rate cuts but don't expect any movement on April 7.

Shares of HDFC Bank, L&T, Axis Bank, ICICI Bank, TCS, SBI, HUL, Wipro, Hero Motocorp and Tata Steel climbed 1-2 percent whereas Reliance Industries, Hindalco Industries and Tata Power remained under pressure. More information please visit this site www.bigprofitbuzz.com



Sensex soars 400 pts; ONGC, Idea, UltraTech top gainers


Bulls kept complete control over Dalal Street today. The Sensex extended rally, up 401.19 points or 1.46 percent at 27859.83 and the Nifty surged 111.50 points or 1.34 percent to 8452.90.

The broader markets also gained further with the BSE Midcap and Smallcap indices rising 1.6 percent and 2.8 percent, respectively. About 1911 shares have advanced, 723 shares declined, and 133 shares are unchanged on the BSE.

UltraTech Cement, Idea Cellular, ONGC, ITC, Bharti Airtel and Coal Indiatopped the buying list on Sensex, up 3-4 percent.

HDFC gained 2.5 percent after Keki Mistry that with regards to HDFC Life the timing or amount of IPO is not decided yet and Standard Life will want to increase stake in HDFC Life but the quantum is not decided. Separately, they see scope of further 25 to 50 bps rate cuts but don't expect any movement on April 7.

Shares of HDFC Bank, L&T, Axis Bank, ICICI Bank, TCS, SBI, HUL, Wipro, Hero Motocorp and Tata Steel climbed 1-2 percent whereas Reliance Industries, Hindalco Industries and Tata Power remained under pressure. More information please visit this site www.bigprofitbuzz.com

Sunday, 29 March 2015

Sensex, Nifty maintain uptrend; telecom, banks, FMCG lead

11:30am Buzzing: HDFC gained over 2 percent after Keki Mistry told that with regards to HDFC Life the timing or amount of IPO is not decided yet and Standard Life will want to increase stake in HDFC Life but the quantum is not decided. Separately, they see scope of further 25 to 50 bps rate cuts but don't expect any movement on April 7.

Idea Cellular saw a bounceback today. BoAML has upgraded Idea to buy from neutral. According to them, Idea was the most vulnerable in the upcoming auction with around 70 percent of revenue at risk but with the regulatory overhang behind, BoAML expects the focus to return to operations. They prefer Idea to Bharti Airtel.

11:00am Market Check:

The market has maintained its strong momentum with the Nifty trading at 8400 supported by telecom, banking & financials, IT and FMCG stocks. The broader markets continued to outperform benchmarks with the BSE Midcap and Smallcap indices rising 1.3 percent and 2.3 percent, respectively.

The Sensex surged 281.01 points or 1.02 percent to 27739.65 and the Nifty rallied 75.40 points or 0.90 percent to 8416.80. About 1703 shares have advanced, 540 shares declined, and 120 shares are unchanged on the BSE.

Asian markets traded mostly higher. Shanghai markets hit a new high as a modestly positive lead from Wall Street offset the impact of sliding oil prices. Crude continued to decline with the Brent trading near USD 56 per barrel.

Oil and gas companies remained in focus on account of the likelihood of gas prices being cut to USD 5.02 per mmbtu effective April 2015. Analysts say the lower gas prices will impact the likes of ONGC where a 10 percent fall in gas prices is likely to impact earnings by 9 percent. Reliance Industries is expected to see a small impact as analysts say gas is now a small component of its business.

Staying with the story city distribution gas stands to benefit as the segment will get 100 percent allocation of cheap domestic gas which will enhance margins. According to Edelweiss, Indraprastha Gas will be the largest beneficiary while GSPL will benefit via stakes in city gas companies. More information please visit this site www.bigprofitbuzz.com

Friday, 27 March 2015

Sensex, Nifty close flat; banks lead, telecom & FMCG fall

03:30pm Market Closing: The market saw consolidation on Friday after a steep fall in previous session. The Sensex rose 1.06 points to 27458.64 while the Nifty fell 0.75 points to 8341.40.

About 1092 shares have advanced, 1777 shares declined, and 170 shares are unchanged on the BSE.
Hindalco Industries, Infosys, SBI, Larsen & Toubro, ICICI Bank and IDFC rallied 2-4 percent whereas Bharti Airtel, Wipro, Reliance Industries, ITC, M&M, Idea Cellular, Cairn India and HCL Tech lost 2-6 percent.

02:55pm SpiceJet falls: Low-cost carrier SpiceJet will have to cancel more than a fifth of its planned daily flights if it cannot reach an agreement with its lessors to bring in more aircraft by the end of this month, a company spokesman said.

SpiceJet, which came close to collapsing in December after running out of cash to pay its creditors, is scheduled to make 280 daily flights from next week.

But with its current fleet at 17 Boeing 737 jets and 15 Bombardier Q400s SpiceJet can only fly 218 journeys a day, the spokesman said on Friday.

SpiceJet lost 11 of its Boeing planes after the Delhi High Court this month ordered the aviation regulator to deregister the jets, following disputes with three lessors.

The troubles of India's second-largest budget carrier by market share have underlined the difficulties of operating in the country, where air travel is growing rapidly but high costs and tough competition have left most carriers unprofitable.

The company spokesman said SpiceJet is in talks to resolve disputes with two of its lessors and get back enough planes to allow it to meet its summer schedule. On Monday it said one of its lessors had agreed to withdraw the deregistion process, reports Reuters.

02:30pm Interview: Talking on the business prospects going forward Vimal Kejriwal, MD & CEO, KEC International said January to March quarter has always been the best. Historically, about 40-45 percent of the company's revenues come from the fourth quarter.

The company has already announced orders worth Rs 2000 crore in Q3 and Q4 and the total order book by March-end would be between Rs 8000-10000 crores. So, the revenues and margins in Q4 and the next fiscal would improve considerably, he adds.

He expects 150-200 basis points improvement in margins for the next fiscal. In the current year the margins were low due to significant losses in the new business of water and railway but now these loss making orders are gettingclosed, adds Kejriwal.

According to Kejriwal, the order inflow in first three quarters was not significant even though tenders were floated but now clients like Power Grid and utilities are keen to award those tenders.

02:00pm Market Check

The market recouped its losses to trade flat amid consolidation in afternoon. The Sensex declined 5.63 points to 27451.95 and the Nifty slipped 12.60 points to 8329.55.

The broader markets too cut its half of the losses, down around 0.4 percent. The market breadth remained negative with advance:decline ratio of 902:1830 on the Bombay Stock Exchange.

Valuations for Indian market have gotten out of hand and the next 12 months could be “very painful” for some parts of it, believes Dimensions Consulting’s Ajay Srivastava.

Srivastava said that economy looked “fundamentally positive” in the wake of reforms undertaken by the government, but the steps will take time to percolatedown to earnings.

India's biggest lenders State Bank of India and ICICI Bank climbed over 2 percent followed by HDFC Bank with 0.6 percent whereas housing finance company HDFC remained under pressure, down 1 percent.

Infosys rose 2.6 percent after unlisted rival Accenture raised its revenue growth guidance for the current calendar year 2015 to 8-10 percent Y-o-Y in local currency (against its previous 5-8 percent Y-o-Y guidance).

Shares of Larsen and Toubro (L&T) gained 1.65 percent following order worth Rs 1,711 crore win by subsidiary and plans to list businesses over next three years. More information please visit this site www.bigprofitbuzz.com