Wednesday, March 11, 2015
Strength and weakness! Another thud at start!
Dwell not upon thy weariness, thy strength shall be according to the measure of thy desire. - Arab Proverb
The market has been in struggle zone after it surged to new highs intra-day last week after a surprise rate hike. The Nifty and Bank Nifty are finding it difficult to even close in the green. The strengthening of the dollar has been taking its toll on most emerging markets too. Commodities are going for a toss and a surging US dollar has pulled oil prices on Tuesday to their lowest settlement for the month of March.
The outlook is a weak start. Sentiment could improve as Asian markets are staging a recovery. Nifty support is at 8640 levels. Global cues are subdued again. Dow crashed 1.85% while S&P slumped 1.7%. Nasdaq was down 1.67%. Asian market are mixed again with Nikkei higher and Hong Kong's Hang Seng lower. China's Shanghai index is also higher.
The Lok Sabha passed the land acquisition Bill on Tuesday but things could get difficult in the Rajya Sabha. The Opposition has stalled passage of the mines & minerals Bill. Housing companies and infra firms will be in focus. Reforms could take a back seat as Opposition is set to stall the governments plan to call for a joint sitting.
The countrys current account deficit (CAD) narrowed to USD 8.2bn or 1.6 percent of GDP in Q3 of 2014-15 from USD 10.1 billion or 2 percent of GDP in Q2. The reduction in the CAD in Q3 2014-15 was primarily on account of net exports of services which picked up in q-o-q terms on the back of an improvement in net earnings.
Maruti Suzuki could shed weight as it is recalling over 33,000 units of the Alto to fix a problem with the right-hand door.
In a first, bid levels for the spectrum auction fell by around Rs 2,000
crore to close Tuesday at Rs 92,000 crore, as steep prices in the key 900 Mhz band forced
operators to reduce the amount of airwaves they were vying for, thus leaving some spectrum
unsold and reducing revenue assured for the government, says a report.
According to SIAM data, the domestic passenger car sales was up by 6.85% to 1,71,727 units in February this year. The motorcycle sales in last month were down by 8.22% to 7,74,122 units from 8,43,436 units in the same month previous year, SIAM data says.
L&Ts Metallurgical and Material Handling (L&T-MMH) business has secured orders worth Rs 1242 crores across various business segments during Q4 of FY 14-15.
Bharti Airtel stock hits 10% upper circuit at Rs. 369. Bharti Airtel is planning to double its 4G network by next fiscal, according to a media report.
Shares of Persistent Systems was trading lower by 9% at Rs. 848 after company turned ex-bonus.The company announced a 1:1 bonus recently.
Adani Enterprises surged to a high of Rs. 680 on hopes of striking more deals for supply of coal to overseas mines.
ITC stock ended flat at Rs. 338 on reports that company is scouting for more acquisitions to scale up its non-cigarette fast-moving consumer goods (FMCG) business.
TCS has extended its south-bound journey for the fourth straight trading session today. The stock was down 0.01% at Rs. 2642.
Jubilant Industries has jumped 20% its maximum daily upper limit at Rs. 81 on the back of heavy volume at the NSE counter.
KNR Constructions Ltd stock was up 2% at Rs. 450 after company has received its First International Orders worth of Rs. 515.33 Crores.
Shares of HSIL was flat at Rs 412 after the company announced the QIP issue price at Rs. 412.53 per equity share.
Ashoka Buildcon is reportedly panning to buy out a controlling stake in Jaora Nayagaon Toll Project in Madhya Pradesh, according to a television report. The stock ended 3% lower at Rs174.
Monnet Ispat and Energy stock rallied 9% at Rs. 71.Report said that the company is planning to sell some stake in its power generation subsidiary to fuel expansion plans and future growth, company's Chairman and Managing Director Sandeep Jajodia said.
Events: ECB President Draghi's Speech
Trends in FII flows: The FIIs were net sellers of Rs7.48bn in the cash segment on Tuesday. The domestic institutional investors (DIIs) were net buyers of Rs2.9nn, as per the provisional figures released by the NSE.
Global Data: Home Loans (Jan) AUD, Investment Lending for Homes (Jan) AUD, M2 Money Supply (YoY) (Feb) CNY, New Loans (Feb) CNY, Industrial Production (YoY) (Feb) CNY, Retail Sales (YoY) (Feb) CNY, Urban investment (YTD) (YoY) (Feb) CNY, Nonfarm Payrolls (QoQ) (Q4) EUR, Current Account (Jan) EUR, ECB President Draghi's Speech EUR, Industrial Production (YoY) (Jan) GBP, Industrial Production (MoM) (Jan) GBP, Manufacturing Production (MoM) (Jan) GBP, Manufacturing Production (YoY) (Jan) GBP, Consumer Price Index (YoY) (Feb) EUR, Consumer Price Index (MoM) (Feb) EUR, MBA Mortgage Applications (Mar 6) USD, EIA Crude Oil Stocks change (Mar 6) USD, MPC Member Weale Speech GBP, NIESR GDP Estimate (3M) (Feb) GBP, 10-Year Note Auction USD, Monthly Budget Statement (Feb) USD, RBNZ Interest Rate Decision NZD, Monetary Policy Statement NZD, Food Price Index (MoM) (Feb) NZD, BSI Large Manufacturing (QoQ) (Q1) JPY, Foreign bond investment (Mar 6) JPY, Foreign investment in Japan stocks (Mar 6) JPY, Tertiary Industry Index (MoM) (Jan) JPY.
Other news in the media:
JSW Steel plans to focus on acquisitions as well as expansion through the brownfield and greenfield routes in order to raise its steel-making capacity to 40mn tonnes per annum by 2025. (BL)
Asian Paints is set to sign up with the Andhra Pradesh Government for setting up a greenfield plant near Vizag. The company is likely to invest Rs.17.50-18bn on the project in a phased manner. (BL)
Dr Reddy's Custom Pharmaceutical Services division has expanded its existing custom service facilities with a new formulation development laboratory in Hyderabad. (BS)
ITC is scouting for more acquisitions to scale up its non-cigarette fast-moving consumer goods business as it expects cumulative brand turnover from this segment to increase to Rs.150bn in the next two-three years. (ET)
L&T unit wins orders worth Rs.12.4bn. (BL)
Cairn Energy said it is engaged with the Indian Government to resolve a tax dispute that has stalled sale of its 10% stake in Cairn India Ltd and led to 40% job cuts. (BL)
Telenor group and Tata group are likely to merge their wireless telephony operations in India with Telenor running the day-to-day operations of the merged entity. As per the valuation of both companies, the Tata group will end up with a minority stake in the merged entity. (BS)
Tata Power commissioned 63 MW sized first unit of its 126 MW Dagachhu Hydro Power Corporation in Bhutan. (BS)
Cholamandalam Investment and Finance Company has roped in Cognizant Technology Solutions to digitize its vehicle finance business operations for cost efficiency and speeding up loan delivery. (BL)
The Lok Sabha cleared the contentious land acquisition Bill, along with nine amendments proposed by the government. (BS)
Government is likely to allocate 17 food parks to different companies by the end of this month, which will attract an estimated investment of about Rs.21bn. (ET)
India's natural rubber production in February fell 13.5% from a year earlier to 50,000 tonnes, while consumption rose nearly 4% to 82,500 tonnes. (BL)
Government has launched long- term measures including those to target integration of economically important genes for crop yield improvement. (ET)
India's current account deficit rose to $8.2bn for third quarter ended December 2014 from $4.2bn for October-December 2013. (BS)
Weakness continues; Nifty shuts below 8750
The Indian equity markets extended their losing streak further as heavy selling dragged the Nifty to breach below the 8700 mark intra-day. In
dices have lost almost 4.5% from record highs in four days.
Amar Ambani Head of Research at IIFL said, "The currency factor was at play again today with the rupee, like most Asian currencies weakening against the dollar. Subdued global cues continued to weigh on sentiment. Bank, oil & gas and power stocks were the biggest draggers. Action may be restricted to side counters as lack of positive triggers will keep main indices subdued for a while."
Following Monday's carnage, the market showed some signs of sustainability in the first half of the trading session. However, the bear attack resumed post noon and the key benchmark indices tested lower levels as the day progressed.
The Sensex opened 79 points higher at 28,924, following yesterday's 600-point slump, at 28,924, and soon tested a high of 28,949. The BSE index thereafter swung between zones throughout the morning session.
Rupee weakness, anxiety ahead of the key economic data and US Federal Reserve meet, triggered a fresh round of selling in the market at noon deals. The Sensex slumped to a low of 28,584 - down 365 points from the day's high.
Financials, energy and select metal & FMCG shares were major draggers today, while telecom stocks logged strong gains.
Sensex finally ended with a loss of 135 points at 28,710, and has slumped 4.4 per cent (1,315 points) from its recent all-time high of 30,025 in a mere four days.
The NSE Nifty touched a low of 8,677, and eventually settled 45 points lower at 8,712. The NSE index is down 4.5 per cent (407 points) from its life-time high of 9,119 touched on 4 March, 2015, after the surprise RBI rate cut.
The India VIX (Volatility) index was down 1.8 per cent at 15.5325.
The broader market too ended on a mixed note. The CNX Smallcap index slipped 0.5 per cent to 5,729, while the Midcap index ended unchanged at 13,178.
The breadth too turned negative in the latter half of the trading session - out of 1,702 stocks traded on the NSE, 892 declined and 618 advanced today.
Telecom stocks were the major gainers today. The stocks witnessed frenzied buying in mid-noon deals amid the on-going 2G, 3G spectrum auction. Reports indicated that the telecom companies had collectively bid around Rs. 94,000 crore in the first five days of the auction.
Bharti Airtel was the major gainer, the stock soared nearly 7 per cent to Rs. 367. Idea Cellular and Reliance Communications rallied around 3 per cent each to Rs. 154 and Rs. 64.50, respectively.
Coal India was the other major gainer in the Nifty-50 stocks. The stock surged 4 per cent to Rs. 372.
NMDC and Mahindra & Mahindra gained 2 per cent each at Rs. 130 and Rs. 1,230, respectively.
Zee Entertainment and Lupin advanced over 1.5 per cent each to Rs. 343 and Rs. 1,898, respectively. Lupin is currently trading at record high and has surged over 6 per cent in the last three trading sessions.
Punjab National Bank, IndusInd Bank and Bajaj Auto were the other prominent gainers.
On the other hand, DLF tumbled 4.5 per cent to Rs. 144.
HDFC extended losses for the second straight trading session, and was down 3.5 per cent at Rs. 1,318. The stock alone accounted for a loss of 98 points on the Sensex, and 23 points on the Nifty.
Jindal Steel reversed direction in intra-day trade, and ended 2.5 per cent lower at Rs. 190. Hindalco too shed 2 per cent at Rs. 138.
Hindustan Unilever slipped 2 per cent to Rs. 956 on account of profit-taking following the strong two-day rally. The stock had gained 6.5 per cent in the preceding two trading sessions.
Cement majors - UltraTech Cement and Ambuja Cement dropped around 1.8 per cent to Rs. 3,011 and Rs. 259, respectively.
Sun Pharma, Reliance Industries, Cairn India, Tata Power, Tata Steel, Power Grid and Kotak Bank were the other major losers, down over a per cent each.
TCS had tumbled to a low of Rs. 2,595 in intra-day deals, and had lost 6.5 per cent at the lowest point of the day in four trading sessions. However, bargain hunting towards the end of the day helped the stock recoup most of the day's losses. The stock finally ended mere 0.3 per cent lower at Rs. 2,639.
Among other stocks - Persistent Systems slumped almost 9 per cent to Rs. 851 after the stock was traded at the ex-bonus price today. The company had declared a bonus issue of 1:1 share.
Adani Enterprises surged to a high of Rs. 680 in early trade on the BSE on hopes of striking more deals for supply of coal to overseas mines. The stock, however, finally ended with a loss of 2 per cent at Rs. 653.
HSIL jumped to a high of Rs. 418 in opening trades on the BSE after the company announced the QIP issue price at Rs. 412.53 per equity share. The stock ended flat at Rs. 412.
Time Technoplast zoomed 7.5 per cent to Rs. 54.10, after the Reserve Bank of India hiked the foreign institutional investors (FIIs) and foreign portfolio investors (FPIs) investment limit to 49 per cent of the paid-up capital of the company.
Monnet Ispat & Energy soared 8.5 per cent to Rs. 71 on buzz of stake sale in the one of its power generation unit.
PC Jeweller extended its winning run for the third straight day following the exclusive tie-up with US-based Blue Nile. The stock was up 2.3 per cent at Rs. 304 today.
Jubilant Industries was locked at the 20 per cent upper circuit at Rs. 81 on the back of 17.5-times jump in volume on the BSE. The counter witnessed trades of around 23,000 shares with pending buy orders for nearly 24,000 shares.
Around 61 stocks registered a fresh 52-week high today. Prominent among these were Aarti Industries, AIA Engineering, APL Apollo Tubes, Ashok Leyland, Bajaj Corp, BF Utilities, Cipla, Colgate Palmolive, Container Corporation, Dabur India, eClerx Services, Emami, Hitachi Home, JSW Holdings, Linc Pen, Lupin, Maxwell Industries, Natco Pharma, Nestle India, PC Jeweller, Ranbaxy, Siti Cable, SPARC, Sun Pharma, Talwalkars, Thermax, Tube Investments of India, Titagarh Wagons and Wockhardt.
Amtek India, Aptech, Educomp Solutions, Everonn Education, Helios and Matheson, Indian Overseas Bank, Jindal Cotex, The Oudh Sugar, Provogue (India), Reliance Communications, Shree Ganesh Jewellery House, Simbhaoli Sugars, Tata Steel, Thiru Arooran Sugars and Vishnu Chemicals were in the list of 30-odd stocks to register a fresh 52-week low today.
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