Live Market Updates: Sensex, Nifty see profit taking; Hindalco, Tata Steel lose shine
Tue Mar 07 2017
Ramesh Sridharan (877 articles)

Live Market Updates: Sensex, Nifty see profit taking; Hindalco, Tata Steel lose shine

12:19 pm Lupin launches drug:Lupin has launched a generic Paxil CR tablets in the US. These tablets are indicated for the treatment of major depressiver disorder, panic disorder, social anxiety disprder and premenstrual dysphoric disorder. The stock was down over a percent intraday.

12:02 pm Market check:
The market fell furthermore in late morning trade as investors looked to book profits ahead of the key exit poll data for assembly elections on Thursday. The Nifty was trading well below 8950-mark.

The Sensex was down 64.01 points at 28984.18, while the Nifty was down 24.15 points at 8939.30. The market breadth was negative as 1,032 shares had advanced, while 1,450 shares declined. Meanwhile, 137 shares remained unchanged.

Bharat Financial Inclusion tanked nearly 7 percent intraday after the microfinance institution indicated a risk of 4.5 percent of its loan book turning bad in the December quarter.

Tata Steel, Hindalco and Axis Bank were major laggards on the indices, while Adani Ports, TCS and BPCL were the top gainers.

11:55 am Completion of stake sale: Crompton Greaves (CG) today said it has completed sale of its B2B automation business to Saudi Arabia’s Alfanar for an enterprise value of euro 120 million (about Rs 845 crore).
“The company along with its subsidiary, C G International BV, has completed the sale with effect from March 6, upon execution of share purchase agreements and other related transactional documents with Alfanar Electric LLC,” Crompton Greaves said in a BSE filing.

In November 2016, the company had announced its decision to sell automation business to Alfanar.

11:42 am Oil Update: US oil prices eased in Asian trade after the International Energy Agency (IEA) forecast US shale output to grow at about 1.4 million barrels per day by 2022.

US West Texas Intermediate crude slipped 0.15 percent to USD 53.12 a barrel.

Also read – Buy, sell, hold: 10 stocks that you can focus today

11:31 am Investment likely in US energy sector: India is open to the idea of investing in America’s energy sector and acquiring assets if it gets a good deal, Union Oil and Natural Gas Minister Dharmendra Pradhan said today.

“Our basket is really global,” the Minister said.

India, which in the coming years would emerge as the largest energy consumer of the world accounting for nearly one-third, is open to investment in the US, subject to a good deal, Pradhan said.

Noting that India’s source of procuring crude oil is multidimensional, Pradhan said if India gets “good terms and reasonable price,” it is open to buy energy from anywhere, including the US.

India, of late, has invested in the energy market across the globe Russia, Canada, New Zealand, Australia, Vietnam, Africa, Latin America.

11:21 am Buzzing: TeamLease Services shares rallied 8 percent intraday on value buying after Kotak has upgraded the stock to buy from add with a target price of Rs 1,200.

The brokerage house says structural drivers like GST implementation and labour law simplification will drive sustainable stable growth of the company.

It feels GST (goods & services tax) implementation can reduce the pricing gap between organised and unorganised staffing companies.

11:15 am Drug case settlement: Cadila Healthcare and its subsidiary Zydus Pharmaceuticals USA announced that they have finalised an agreement with Supernus Pharmaceuticals Inc, to settle all outstanding patent litigation related to Trokendi XR (topiramate) extended-release capsules.

Under the terms of agreement, Supernus grants Zydus a license to market Zydus’ generic version of Trokendi XR (topiramate) extended-release capsules beginning on January 1, 2023 or earlier under certain circumstances.

11:10 am Fitch on GDP: Global rating agency Fitch today said Indian economy will grow by 7.1 percent in the current fiscal before stepping up to 7.7 percent in the next two financial years.

The US-based agency, however, termed the 7 percent GDP growth for the October-December quarter as “surprising”, a tad lower than 7.4 percent in the previous quarter.

“This number looks somewhat surprising, as real activity data released since demonetisation pointed to weak consumption and services activity because these transactions are cash-intensive. By contrast, official data suggest that private consumption was strong in the fourth quarter of 2016 (though services output growth moderated quite substantially),” Fitch said.

Fitch expects Indian GDP to grow by 7.1 percent for 2016-17, before picking up to 7.7 percent in both 2017-18 and 2018-19.

11:05 am Stake sale: Sources have informed CNBC-TV18 that Reliance Capital has reportedly sold its stake in Paytm for a whopping Rs 275 crore. It has sold this stake to China’s Alibaba Group.

Reliance Capital had invested Rs 10 crore to buy the stake in the e-wallets firm.

11:00 am Market Check: Benchmark indices remained moderately under pressure in morning as investors maintained cautious stance ahead of exit polls for assembly elections that will end on March 8.

The 30-share BSE Sensex was down 55.26 points at 28992.93 and the 50-share NSE Nifty fell 20.80 points to 8942.65.

The market breadth also turned negative as about 1308 shares declined against 982 advancing shares on the BSE.

Metals stocks were under pressure on profit booking. Hindalco fell 3 percent and Tata Steel slipped nearly 2 percent.

10:52 am Den hikes stake in arm: Cable television services firm Den Networks purchased additional 37.57 percent shares in its subsidiary DEN Digital Cable Network, increasing its stake from 51 percent to 88.57 percent.

“Den Networks Ltd has entered into an agreement with DEN Digital Cable Network (DDCN) for increasing equity stake of the company in DDCN from 51 percent to 88.57 percent,” Den Networks said in a BSE filing.”

The stock was up trading higher by 4 percent on the back of this development.

10:36 am Buzzing stock: Shares of Crompton Greaves jumped 4.5 percent intraday on Tuesday after the company announced the completion of sale of its automation business.

The company completed the sale of ZIV Automation India on March 6, 2017. The proceeds from the sale will be used to retire the substantial portion of its international debts. The sale is aligned with the firm’s overall strategy to focus its synergies to core operations in India, the company said in a notification to the exchanges.

10:20 am Expert on US rate hike: Even one small interest rate increase by the Fed could have a sweeping impact on US and world economies, Komal Sri-Kumar told CNBC on Monday.

“I think they are going to hike” on March 15, Sri-Kumar said on “Squawk Box,” echoing a theory shared by many analysts.

“But that is going to prompt capital outflows from the euro zone, especially with the political risk. It is going to increase the capital outflow from China, and the US economy will feel the impact.”

10:10 am Market check: The market was in consolidation mode on Tuesday as investors sat on the fence ahead of key exit poll data for assembly elections in five states.

The 30-share Sensex was down 6.94 points at 29041.25, while the Nifty was down 5.95 points or 0.07% at 8957.50. The market breadth remained narrow with 1,065 shares having advanced, 874 shares having declined, while 100 shares were unchanged.

Reliance, TCS, BPCL and Tata Power were the top gainers on both the indices, while Infosys, Tata Steel and Hindalco were the top losers.

Tech Mahindra surged over 2 percent intraday as investors cheered its acquisition of US-based firm HCI Group. Analysts are also upbeat on the deal on the back of appropriate valuations and cross-selling synergies.

Power stocks gained on reports of a possible coal linkage policy that could be introduced next week. Sources told CNBC Awaaz that the government could look at allocating coal linkage through an auction. Furthermore, power firms that currently do not have a coal linkage could benefit from the new policy.

9:58 am Buzzings: Shares of PNC Infratech and Arfin India gained 7 percent and 8 percent respectively intraday on the back of order received by the companies.

PNC Infratech has been declared the L1 (lowest) bidder for NHAI project of six laning Chitradurga – Davanagere including Chitradurga bypass in the state of Karnataka under NHDP V, to be executed on hybrid annuity mode for a bid project cost of Rs 1434 crore.

This is the second hybrid annuity project won by the company with construction period of two and a half years and operation period of 15 years.

Arfin India has bagged an order worth Rs 107 crore from JSW Steel for supply to its three units located at Bellary, Dolvi & Salem for the financial year 2017-18.

9:49 am New exploration policy: India has announced a new hydrocarbon exploration licensing policy which offers single license to explore conventional and unconventional oil and gas resources, as the country seeks to propel investment in the energy sector.

Christened “Hydrocarbon Exploration Licensing Policy” or HELP, the new policy also gives the investors the much needed freedom in pricing and marketing for crude oil and natural gas.

The new policy is part of the strategy to make India a business and investor friendly destination and achieve the plan to double India’s existing oil production from current 80 million metric tons to about 150-155 million metric tons by 2022, said the Union Petroleum and Natural Gas Minister Dharmendra Pradhan.

9:35 am Market Update: Benchmark indices erased early gains on selling pressure in Infosys and Tata Motors.

The Sensex was down 10.95 points at 29037.24 and the Nifty fell 10.40 points to 8953.05.

However, the market breadth was positive as about 928 shares advanced against 645 declining shares on the BSE.

9:30 am BoAML on Tech Mahindra: Bank of America Merrill Lynch says acquisition of US-based CJS Group provides Tech Mahindra with an entry in the healthcare vertical. Business exposure of CJS is mainly to clients in US & UK.

Acquisition transaction is likely to be mildly earnings accretive and deal valuation at USD 110 million appears to be in-line with industry trend, the brokerage house feels.

Tech Mahindra is likely to use existing cash for CJS’ acquisition. BoAML sees a contingent mull of USD 130.5 million based on 2017-19 revenue and EBITDA targets.

The brokerage house has maintained underperform rating on sensitivity w.r.t H-1B visa program in the US. Every 10 percent increase in H-1B wages may hurt earnings by 11 percent, on gross basis, BoAML feels.

Also read – Bull’s Eye: Buy Reliance Infra, Nalco, Exide, Arvind, Tata Chem

9:15 am Market Check

The market started off trade mildly positive amid consolidation on Tuesday as investors awaited assembly elections results due later in week.

The 30-share BSE Sensex was up 20.20 points at 29068.39 and the 50-share NSE Nifty gained 5.85 points at 8969.30. About 533 shares advanced against 250 declining shares on the BSE.

NTPC, Reliance Industries, Coal India, Adani Ports, BHEL, Tech Mahindra, Tata Power and Eicher Motors were early gainers while Infosys, Hero Motocorp, Tata Motors, Hindalco, IndusInd Bank, M&M and Idea Cellular were under pressure.

The Indian rupee has opened higher by 5 paise at 66.67 per dollar on Tuesday versus 66.72 Monday.

Pramit Brahmbhatt of Veracity says the rupee will continue to trade positive considering optimism prevailing in domestic equity market and will head towards 66.50/dollar.

He expects the USD-INR to trade in a range of 66.50-67/dollar today.

The dollar held onto gains, lifted by the Federal Reserve’s near-certain March rate increase, while political uncertainties over the French presidential election weighed on the euro.

Asian shares wavered, after Wall Street traded lower overnight on increased expectations that the Federal Reserve could tighten monetary policy next week.

Ramesh Sridharan

Ramesh Sridharan

Ramesh Sridharan is our Stock Market Correspondent covering events and daily movements of stock markets in Asia. He is based in Mumbai

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