Market Live: Sensex extends gains, Nifty eyes 9900; all sectoral indices in green

Wed Jul 19 2017
Rajesh Sharma (2046 articles)
Market Live: Sensex extends gains, Nifty eyes 9900; all sectoral indices in green

 12:10 pm Buzzing: JM Financial climbed nearly 3 percent intraday after its subsidiary acquired 8.5 percent stake in the microfinance company.

“JM Financial Products, a subsidiary of the company, has completed the first leg of acquisition of 24,35,286 equity shares of Spandana Sphoorty Financial, representing 8.56 percent of the current outstanding total equity shares of Spandana,” the company said in its filing on Tuesday.

On a fully diluted basis, the acquisition would result in the holding of 4.71 percent in Spandana, it added.

The remaining 8.78 shares of the company are proposed to be purchased by the company within a period of 12-13 months from March 29.

11:58 am Earnings Estimates: Midcap IT company Mindtree’s first quarter profit is seen rising 10.1 percent sequentially to Rs 107 crore and revenue may increase 0.9 percent to Rs 1,330 crore.

According to average of estimates of analysts polled by CNBC-TV18, dollar revenue growth is expected to be 4 percent at USD 203.3 million QoQ.

However, EBIT (earnings before interest and tax) may fall to Rs 130 crore (from Rs 140.1 crore) and margin may contract to 9.8 percent (from 10.6 percent) on sequential basis.

Negative currency moves and visa related costs will be the key margins headwinds during the quarter.

11:37 am Drug launch: Cadila Healthcare shares rallied 3 percent intraday after the launch of drug that used for the treatment of mild to moderate ulcerative colitis, in the US and the FDA approval for cholesterol drug.

Subsidiary Zydus Cadila has commercially launched its Mesalamine delayed release tablets (USP 1.2g) in the US market.

Zydus was the first to file an abbreviated new drug application (ANDA) for a generic version of Lialda and is currently the only generic available to patients in the US, the company said in its filing.

The group has received 26 final ANDA approval from the US Food & Drug Administration and 2 tentative ANDA approvals since January 2017.

Meanwhile, Zydus Pharma, the US division of Cadila Healthcare, has received approval from USFDA for Pitavastatin that helps in lowering bad cholesterol & raising good cholesterol.

11.16 am Market Check: Benchmark indices extended gains in morning, with the Sensex up 147.47 points at 31,858.46 as all sectoral indices traded in green.

The Nifty inched towards 9,900 leve, up 45.05 points at 9,872.20.

The BSE Midcap index was up 0.7 percent and Smallcap gained 0.9 percent as about two shares advanced for every share falling on the exchange.

The Nifty Metal, Pharma, Realty and FMCG indices gained the most, up 1-2 percent.

11:00 am Stock Split: Shares of Heritage Foods added 5.5 percent intraday as the company will consider stock split.
The company board meeting is scheduled to be held on August 10, to consider & approve the un-audited financial results (standalone & consolidated) for the quarter and three months ended June 30, 2017.

The board will also consider the proposal for sub-division of equity shares of the company.

The share price has moved up 121 percent in the last one year.

10:40 am Demerger: Grasim Industries shares fell more than 22 percent in morning trade on account of demerged of Aditya Birla Capital (formerly known as Aditya Birla Financial Services).

The company informed stock exchanges that it has fixed July 20 as record date-2 pursuant to Part III of the composite scheme of arrangement between Aditya Birla Nuvo and Grasim Industries and Aditya Birla Financial Services (now known as Aditya Birla Capital Limited) and their respective shareholders and creditors.

It means the people who have Grasim shares as of July 20 will be eligible to get shares of Aditya Birla Capital that will be listed soon.

Grasim shareholders will receive 7 shares of Aditya Birla Capital for every 5 shares held in the company.

The merger committee had fixed July 4 as effective date-2 for the effectiveness of demerger of financial services business of Grasim and transfer of the same to ABFSL.

After the demerger, Grasim Industries holds 55.94 percent stake in Aditya Birla Capital, followed by promoter group’s 16.75 percent shareholding, public investors 25.11 percent and PI Opportunities Fund – 1’s 2.2 percent stake.

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10.18 am Market Check: Equity benchmarks continued to trade higher in morning, with the Sensex rising over 100 points, backed by ITC, Reliance Industries and HDFC Bank.

The 30-share BSE Sensex was up 130.13 points at 31,841.12 and the 50-share NSE Nifty gained 39.25 points at 9,866.40 on strong market breadth.

About 1,444 shares advanced against 584 declining shares on the BSE.

The broader markets continued to outperform benchmarks, with the BSE Midcap and Smallcap indices rising 0.6 percent and 0.8 percent, respectively.

Grasim Industries shares fell more than 22 percent in morning trade Wednesday on account of demerged of Aditya Birla Capital (formerly known as Aditya Birla Financial Services).

9:55 am Tie-up: Shares of Ashok Leyland gained 2 percent intraday as the company has entered into strategic alliance for electric mobility solutions with Sun Mobility.

Sun Mobility is promoted by Chetan Maini, Founder of Reva and Uday Khemka, Vice Chairman of SUN Group.

This global partnership between Ashok Leyland and Sun Mobility will leverage India’s innovation and engineering potential to develop world class electric mobility solutions.

Ashok Leyland has been pioneer in electric buses, hybrid buses, in both CNG as well as diesel, including those that do not require a plug-in.

Sun Mobility aims to be the leading provider of universal energy infrastructure and services to accelerate mass electric vehicle usage.

Sun Mobility plans to revolutionlise the transportation sector by deploying a unique open-architecture ecosystem built around their proprietary smart batteries and a network of quick interchange battery stations. These stations, predominantly powered by renewable energy, will refuel electric vehicles at cost lower than and speed faster than conventional diesel/petrol pumps.

 

9:38 am FII View: Surendra Goyal of Citi said midcaps have been at the forefront of Indian markets’ performance for the past couple of years, and the trend has so far sustained in CY17, although there has been some reversal in relative performance over the past three months.

The BSE Midcap Index rallied more than 25 percent this year against 20 percent for Sensex.

Goyal sees downside risks to aggregate bottom-up FY18 earnings estimates for coverage universe.

“We have Sensex target of 32,200 and remains selective on midcaps,” he said.

9:27 am Buzzing: Shares of Aurobindo Pharma gained over 7.5 percent in morning trade as investors cheered a product approval by the US drug regulator.

The US Food and Drug Administration (FDA), late on Tuesday, gave an approval to Sevelamer Tablets. These are used to treat patients with chronic kidney diseases.

“The approved product has an estimated market size of US$ 1.9 billion for the twelve months ending May 2017 according to IMS,” the company said in a filing to the exchanges.

The company further informed that the product will be launched immediately from its Hyderabad facility. “This is the 124th ANDA (including 21 tentative approvals) to be approved out of Unit VII formulation facility in Hyderabad,” the company further added.

Also read – From Narayanan to Mukherjee, Sensex jumped upto 40% in last four presidential poll years

9:15 am Market Check: Equity benchmarks rebounded on Wednesday after yesterday’s steep fall, backed by short covering in beaten down stocks.

The 30-share BSE Sensex was up 104.05 points at 31,815.04 and the 50-share NSE Nifty rose 33.90 points to 9,861.05.

Healthcare stocks were in demand as Aurobindo Pharma rallied 7.5 percent followed by Lupin, Sun Pharma after USFDA approvals.

HUL gained nearly a percent post better-than-expected earnings. ITC rebounded 1 percent after yesterday’s 13 percent correction.

Eicher Motors, ACC and Zee Entertainment gained 1 percent whereas Bajaj Auto and UltraTech Cement were under pressure.

Nifty Midcap was up 0.4 percent as about five shares advanced for every share falling on the BSE.

Lakshmi Electrical Control Systems surged 10 percent.

JM Financial, Sintex Industries, Federal Bank, Amtek Auto, Ashok Leyland, Sundaram Finance, Jubilant Life and Jet Airways gained up to 2 percent while Sasken Communications, KPIT Tech and Havells India were down.
Asia markets were mixed as dimmed prospects for US healthcare reform led to the dollar wallowing near 10-month lows.

Rajesh Sharma

Rajesh Sharma

Rajesh Sharma is Correspondent for Stock Market of South East Asia based in Mumbai. He has been covering Asian markets for more than 5 years.