Closing Bell: Lackluster day of trade on D-Street as Sensex, Nifty end mildly higher
3:30 pm Market at Close: Benchmark indices ended the session on a mildly higher note, with the Nifty ending just a tad above 9750-mark.
The Sensex closed up 33.00 points at 31291.85, while the Nifty ended higher by 11.20 points at 9765.55. The market breadth was negative as 924 shares advanced against a decline of 1,645 shares, while 128 shares were unchanged.
Dr Reddy’s Laboratories, Sun Pharmaceuticals and BPCL gained the most on both indices, while NTPC and Hero MotoCorp were the top losers.
3:18 pm Infosys in focus: Sources told CNBC-TV18 that Infosys co-chairman Ravi Venkatesan met Finance Minister Arun Jaitley and senior finance ministry officials.
Venkatesan appraised the government about latest developments at Infosys and gave an assurance of high corp governance standards at the company.
Engaging with shareholders, things should normalise soon, he told FM.
Vishal Sikka resigned as MD & CEO of Infosys on August 18 with immediate effect.
15:08 pm Market Check: Equity benchmarks continued to be rangebound in afternoon trade as investors looked for triggers. Geopolitical tensions and Infosys crisis already priced in.
The 30-share BSE Sensex was up 42.60 points at 31,301.45 and the 50-share NSE Nifty rose 11.65 points to 9,766.
The broader markets underperformed, with the BSE Midcap and Smallcap indices down 0.5 percent. About two shares declined for every share rising on the BSE.
2:50 pm Market Outlook: Aditya Narain, Edelweiss Securities said mood in the market remains robust and he sees fair amount of confidence in the market.
Earnings were a bit disappointing in Q1FY18 but other factors are changing materially, according to him.
He said the market is looking beyond earnings disappointment and valuations will remain high for the next 3 years.
He further said current FII sell-off was on account of global weakness.
FIIs sold more than Rs 10,000 crore worth of shares in August but domestic institutional investors continued to support the market, investing more than Rs 11,000 crore worth of shares in current month.
2:35 pm Interview: “We have received about Rs 2,500 crore worth of order in Q1 and two major orders likely to happen in this financial year,” said MV Gowtama, CMD of Bharat Electronics.
One order is seven squadrons of Akash and second order is LR-SAM for the next series of ships, he added.
Expect order inflow of Rs 16,000 crore for FY18, he said.
On CAG report front, he said the Comptroller and Auditor General (CAG) have audited BEL and Akash missile system programme also was evaluated by CAG from the perspective of BEL.
Proud to say that we have not got any observation written against BEL by CAG in the past eight years, he added.
On business front, he is confident of maintaining growth of 15-17 percent and will certainly cross Rs 10,000 crore mark this year.
2:15 pm Buzzing: Dish TV shares rose as much as 3.5 percent after HDFC Securities has initiated coverage with buy rating and a target price of Rs 105 on the stock.
“Our positive view on Dish TV derives from its inexpensive valuations, synergies from the merger, DAS IV digitisation and GST,” the research house said.
Further benefits can accrue from a license fee reduction and TRAI’s tariff order, it added.
Dish TV, a pioneer in India’s DTH (direct-to-home) space is coming off a phase of under-performance (down 22 percent in three months). Its weak FY17 performance (EBITDA fell 5 percent) was in stark contrast with Videocon D2H and Airtel DTH (which posted EBITDA growth in the 20s).
Persistently inferior subscriber stability and ARPU have undermined Dish TV’s performance.
The upcoming merger with Videocon D2H holds significant cost rationalisation potential (Rs 470 crore by FY20, around 23.7 percent of FY17 EBITDA), HDFC Securities said.
2:00 pm Market Check: Benchmark indices trimmed some of their gains from the morning, with Nifty around 9800.
The Sensex was up 56.13 points at 31314.98, while the Nifty was up 22.20 points at 9776.55. The market breadth was negative as 894 shares advanced against a decline of 1464 shares, while 117 shares were unchanged.
1:55 pm Buzzing Stock: Ramco Systems shares surged 6.6 percent intraday Tuesday on signing contract with aircraft manufacturer for its China operations.
“After entering the Greater Chinese Aviation market with Far Eastern Air Transport in 2016 followed by Bedek-Lingyun (Belinco), and China Southern Airlines General Aviation, Ramco has secured an order from one of the global top 5 aircraft original equipment manufacturers for its joint venture in China,” the global aviation software provider said in its filing.
Ramco will help the China based manufacturing centre to embrace latest technology offerings to automate its maintenance & engineering (M&E), supply chain, finance, HCM and payroll functions on a unified platform.
1:45 pm Market Check: Benchmark indices were trading in the positive region, with the Nifty inching towards 9800-mark.
The Sensex was up 119.78 points at 31378.63, while the Nifty was up 42.20 points at 9796.55. The market breadth was negative as 933 shares advanced against a decline of 1,408 shares, while 120 shares were unchanged.
1:35 pm Buzzing Stocks: Ramco Systems shares surged 6.6 percent intraday Tuesday on signing contract with aircraft manufacturer for its China operations.
“After entering the Greater Chinese Aviation market with Far Eastern Air Transport in 2016 followed by Bedek-Lingyun (Belinco), and China Southern Airlines General Aviation, Ramco has secured an order from one of the global top 5 aircraft original equipment manufacturers for its joint venture in China,” the global aviation software provider said in its filing.
Ramco will help the China based manufacturing centre to embrace latest technology offerings to automate its maintenance & engineering (M&E), supply chain, finance, HCM and payroll functions on a unified platform.
1:15 pm OMCs gain: Shares of oil marketing companies (OMCs), ONGC and HPCL gained between 1.5 and 4.5 percent intraday, respectively, on Tuesday as investors cheered the M&A developments around the firm.
The Board of ONGC on Tuesday gave an approval to buy government’s stake in the company, according to reports on CNBC-TV18.
For the same, HPCL’s asset valuation will be done by a separate entity and an advisor has been appointed to evaluate the stake sale, he told the channel.
1:00 pm DRL outlicences some segments: Drug major Dr Reddy’s Laboratories today said it has out-licensed the future development, manufacturing and commercialisation rights of its topical high potency steroid DFD-06 to Encore Dermatology.
The drug is intended to be used for the treatment of moderate to severe plaque psoriasis.
“Under the terms of the agreement, Encore will be responsible for the commercialisation of DFD-05 in the United States,” Reddy’s Laboratories said in a regulatory filing.
12:45 pm Europe update: European markets opened higher on Tuesday morning, after modest gains on Wall Street while investors awaited the annual central banking conference in Jackson Hole later this week.
The pan-European Stoxx 600 was 0.4 percent higher shortly after the opening bell with all sectors and major bourses in positive territory.
12:22 pm Market Check: Benchmark indices continued to trade higher amid volatility, supported by index heavyweights Reliance Industries, ITC and HDFC Group stocks.
The 30-share BSE Sensex was up 103.67 points at 31,362.52 and the 50-share NSE Nifty rose 37.50 points to 9,791.85 despite weak market breadth.
About three shares declined for every share rising on the BSE.
11:40 am USFDA approval: Zydus Cadila has received the final approval from the US Food and Drug Administration to market Pindolol tablets, USP 5 mg and 10 mg.
Pindolol belongs to a class of medication called beta-blockers and is used to treat hypertension.
The drug will be manufactured at the group’s formulations manufacturing facility at Pharma SEZ, Ahmedabad.
11:25 am Buzzing: Shares of Westlife Development gained around 15 percent intraday as investors could have cheered positive outlook on the stock post developments around McDonald’s business in the North.
McDonald’s India on Monday terminated the franchise agreement for 169 fast-food outlets in North and East India run by Connaught Plaza Restaurant Ltd (CPRL) and said the outlets cannot use its brand for any operations.
CPRL is led by Vikram Bakshi, the estranged partner of the US-based food chain giant.
The decision comes weeks after 43 outlets run by CPRL in the national capital were shut due to non-renewal of eating house licences by local authorities. CPRL was a 50:50 joint venture between Bakshi and McDonald’s India.
Brokerages too had a positive stance on the stock. CLSA believed the development was good for the company and the stock.
11:10 am Market Outlook: At a time when the market seems to be in a consolidation or corrective phase, several experts point to the times when they had flagged concerns of overvaluation in the market.
HSBC Global Asset Management Company (AMC) is sticking to its plan to stay invested in the market, but will keep evaluating segments where valuations are higher.
Choosing an alternative is also dependent based on the investor you are. One could look at the rate of return, the risk and market volatility. Check for allocation of your portfolio and take bets off the areas where an investor feels the allocation is higher, Tushar Pradhan, CIO, HSBC Global Asset Management (India) told CNBC-TV18 in an interview.
10:55 am Interview: Lupin said Aurangabad unit is one of the smallest but oldest units for the company.
It received clearance from USFDA for Aurangabad facility.
Lupin is very confident about receiving Tamiflu approval soon.
Tamiflu is not filed from Aurangabad facility and it has not done any major filings from Aurangabad unit, the pharma company’s management said in an interview with CNBC-TV18.
It expects Goa & Pithampur units to be cleared in a few weeks.
Japan is a very important market for company and contributes 12-15 percent of total revenue, management said.
10:40 am Dr Reddy’s in focus: Dr Reddy’s Labs outlicensed commercialisation rights of DFD-06 to Encore Dermatology.
DFD-06 is a topical high-potency steroid.
10:25 am IPO: Apex Frozen Foods, which is in the business of aquaculture products, has opened its initial public offering for subscription today.
The company raised over Rs 43 crore from anchor investors on Monday.
In a statement, the company said it has allotted 24.90 lakh equity shares to three anchor investors at Rs 175 per piece, totalling Rs 43.57 crore.
The anchor investors are Reliance Capital Trustee Company Ltd, HSBC Midcap Equity Fund, HSBC India Opportunities Fund and ITPL –Invesco India Contra Fund.
The public issue will close on August 24.
The IPO of up to 87 lakh equity shares of face value of Rs 10 each will be offered through a book-building route at a price band of Rs 171-175 per share.
Proceeds from the issue would be utilised towards setting up a new shrimp processing unit with a capacity of 20,000 tonnes per annum in Andhra Pradesh and for general corporate purposes.
10:01 am Q1 earnings analysis: Suhas Harinarayanan of JM Financial said earnings in Q1FY18 have been worse than anticipated.
For the companies under coverage, profit had a YoY decline of 15 percent against expectation of 9 percent decline. This, despite a better than expected YoY revenue growth of 10.9 percent, he explained.
“Our model portfolio emerges from a bottom-up approach with a recommended overweight on private financials, pharma, and industrials like L&T,” Harinarayanan said.
9:51 am Market Check: Equity benchmarks erased some gains in morning, with the Nifty falling below 9,800 level due to profit booking HDFC Bank and SBI.
The 30-share BSE Sensex was up 51.82 points at 31,310.67 and the 50-share NSE Nifty rose 24.20 points to 9,778.55.
The broader markets turned flat as market breadth is balanced. About 897 shares declined against 815 advancing shares on the BSE.
9:37 am Distribution Agreement: HCL Infosystems shares rallied as much as 17 percent in morning trade on distribution agreement for Apple products in India.
The HCL Group company inform exchanges that the distributor agreement for distribution of iPhone and other Apple Products has been signed with Apple India Private Limited.
A confirmation of the same is received by the company from Apple today, it said.
9:25 am Buzzing: Share price of Lupin advanced 3 percent in the early trade on the back of EIR from USFDA.
The company has received an establishment inspection report (EIR) from the US Food and Drug Administration (USFDA) for its Aurangabad facility in Maharashtra.
EIR indicates closure of inspection.
The facility was inspected by the USFDA in April this year.
9:15 am Market Check: Equity benchmarks started off Tuesday’s trade on a strong note, with the Nifty reclaiming 9,800 level, supported by broadbased buying.
The 30-share BSE Sensex was up 173.60 points at 31,432.45 and the 50-share NSE Nifty rose 56.45 points to 9,810.80.
About two shares advanced for every share falling on the BSE.
Infosys rebounded 1 percent after 15 percent correction in previous two consecutive sessions.
Hindalco, Vedanta, Dr Reddy’s Labs, IOC, Tata Steel, Tata Motors, Coal India, ICICI Bank, Axis Bank, GAIL, Tech Mahindra, Aurobindo Pharma and Bank of Baroda gained up to 2 percent.
TCS and UltraTech Cement were under pressure.
Among midcaps, Reliance Capital, Capital First, PNB Housing Finance, LIC Housing Finance, Jaiprakash Associates, Repco Home, Indo Count, Chennai Petroleum, Manappuram, Reliance Defence, BEML, V-Guard, HCL Infosystems and Bhushan Steel rallied up to 16 percent.
