Market Live: Sensex opens above 32K, gains 100 pts; Tata Steel, Sun Pharma rally
Tue Sep 12 2017
Rajesh Sharma (2003 articles)

Market Live: Sensex opens above 32K, gains 100 pts; Tata Steel, Sun Pharma rally

10:15 am Market Outlook: Suresh Soni, Chief Executive Officer, DHFL Pramerica Asset Managers Private Ltd said stock prices are the slave of corporate earnings, and the ability of the company to compete in the market place. However, in the short term markets are subject to fluctuations due to a variety of reasons, many of which are transient and short term in nature.

You should indeed be looking at selling your shares if you see a sustained impact on your company’s earnings due to a potential US/ N Korea conflict.

Time and again the markets’ reaction to events has given opportunities to acquire stocks at attractive valuations. As equity investors, we will keep reading headlines like Brexit, Greek crisis, Fed moves, potential war etc.

None of these can be forecasted beforehand nor are they likely to have any direct impact on corporate earnings. Investors will do well to ignore these events and stay focused on their long term investment journey.

10:04 am Market Check: Equity benchmarks maintained early gains amid volatility, backed by metals, FMCG, infrastructure and banks stocks.

The 30-share BSE Sensex was up 77.99 points at 31,960.15 and the 50-share NSE Nifty gained 24.35 points at 10,030.40.

The broader markets continued to trade with half a percent gains as about three shares advanced for every two shares falling on the BSE.

Asian markets also continued their ascent, following a firm lead from Wall Street as concerns faded over the potential damage of Hurricane Irma and as Korean Peninsula tensions took a backseat.

Japan’s Nikkei 225 rose 1 percent as the dollar held onto overnight gains against the yen.

9:56 am Tata Steel rallies 4%: Tata Steel has concluded a new agreement under which its UK business stands separated from the 15-billion pound British Steel Pension Scheme (BSPS).

“Tata Steel UK has received confirmation from the pensions regulator that it has approved a regulated apportionment arrangement (RAA) in respect of BSPS,” Tata Steel said in a statement.

As part of the arrangement, a payment of 550 million pounds has been made to BSPS by Tata Steel UK and shares in Tata Steel UK, equivalent to 33 percent stake, have been issued to the BSPS trustee, the steel giant said.

The BSPS has now been separated from Tata Steel UK and a number of affiliated companies, it added.

Last month, Tata Steel had announced clinching of the deal facilitating detachment of the BSPS from its UK business.

9:45 am SEBI approval: Godrej Industries arm Godrej Agrovet has received capital markets regulator Sebi’s go-ahead to raise an estimated Rs 1,000-1,200 crore through an initial public offering.

The company had filed draft red herring prospectus (DRHP) with Sebi in July and received its ‘observations’ on September 8, which is very necessary for any company to launch public offer, as per the latest update with the markets regulator.

Godrej Agrovet’s public issue comprises fresh issue of shares worth Rs 300 crore besides an offer for sale of scrips of up to Rs 300 crore by Godrej Industries and up to 1.23 crore shares by V-Sciences, as per the DRHP.

Besides, the company is considering a pre-IPO placement of up to 5.6 lakh equity shares worth up Rs 252 crore.

9:35 am IPO: The initial public offer (IPO) of Matrimony.com, which runs online match-making portals, was subscribed 67 percent on the first day of bidding on Monday.

The IPO, with an aim to raise over Rs 500 crore, received bids for 18,78,510 shares against the total issue size of 28,11,280 shares, data available with the NSE showed.

The portion set aside for qualified institutional buyers (QIBs) was subscribed 83 per cent and retail investors 1.19 times.

The company had on Friday raised nearly Rs 226 crore from anchor investors.

The price band is Rs 983-985 per share for the IPO which will close on September 13.

9:25 am FII View: Neelkanth Mishra of Credit Suisse said the research house estimated if inflows into life insurance and provident/pension funds do not grow, households’ gross financial savings this year could be Rs 21 trillion versus Rs 18 trillion in FY17.

The challenge increasingly is deployment, he added. The balance of payments surplus is playing a role as well, he feels.

The RBI is thus forced to continue absorbing liquidity, he said.

He feels cost of capital should hence remain low, manifested in low interest rates and high P/E for equities.

Mishra said non-banking finance companies (NBFC) growth should continue, net interest margin though may compress. LIC Housing Finance and Indiabulls Housing Finance should benefit, he added.

9:15 am Market Check: Equity benchmarks opened higher on Tuesday, continuing uptrend for the second consecutive session.

The 30-share BSE Sensex reclaimed 32,000 level in early trade, up 118.77 points at 32000.93. The 50-share NSE Nifty rallied 27.35 points to 10,033.40.

The BSE Midcap and Smallcap indices gained half a percent each on positive breadth. About three shares advanced for every share falling on the BSE.

Tata Steel, Tata Motors, Tata Power, Sun Pharma, HUL, Reliance Industries, Larsen & Toubro, TCS, Lupin, Wipro and Vedanta gained up to 2 percent in early trade.

Bharti Infratel, Coal India and ONGC were under pressure on profit booking.

Tata Coffee and Liberty Shoes rallied 12-16 percent post bulk deals.
Cochin Shipyard, Jet Airways, InterGlobe Aviation, Bata India, Mirza International, Redington India, HCL Infosystems, Emkay, RPG Life, IIFL Holdings, Religare Enterprises and Adani Transmission were early gainers in broader space.

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.

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