Market Live: Sensex, Nifty trade flat; PSU Bank rises 1%, HDFC Life most active

3:15 pm Management interview: The Euro-VI grade petrol and diesel will be supplied to the national capital by three oil PSUs from their refineries at Mathura, Bina and Bhatinda from April to help it fight the alarming levels of air pollution.

“We will be able to meet requirement of Delhi from April 1,” IOC Chairman Sanjiv Singh said here today.

“We will have to tweak the fuel production slate to produce BS-VI (equivalent to fuel meeting Euro-VI emission norm), he added.

The nation’s biggest oil firm, IOC will source the fuel from its Mathura refinery, while Hindustan Petroleum Corp Ltd (HPCL) will do so from its joint venture refinery at Bhatinda.

Bharat Petroleum Corp Ltd (BPCL) supply the fuel from its Bina refinery.

“Meeting Delhi’s requirement of BS-VI grade petrol and diesel will not be a problem,” Singh said.

3:05 pm Buzzing: Gujarat Pipavav Port share price rallied 11.4 percent intraday after Emkay Research has upgraded the stock to buy from hold with a target price of Rs 174 on service additions by Maersk.

“Given a healthy dividend payout policy (around 82 percent payout in first half of FY18), debt-free balance sheet, strong free cash flows (Rs 260 crore in FY17), benign valuation (11x FY19 EV/EBITDA) and return of growth in container volume, we upgrade recommendation on Gujarat Pipavav Port to buy,” it said.

In light of the recent service additions, Emkay scaled FY19 volume assumptions to a monthly average of around 65,000 TEUs, assuming zero growth in base monthly volume of around 55,000 TEUs expected to be handled in FY18.

As a result, the research house has raised FY19 EPS estimate by 2.4 percent. It also raised FY20 volume growth assumption to 10 percent YoY (earlier 6 percent YoY).

2:55 pm Moody’s outlook on India Inc: Rating agency Moody’s sees an improvement in the credit profiles of India Inc next year, driven by better sales as it expects GST-related disruptions to wane, leading to an all over recovery in economic activities.

It can be recalled that for the first time in almost 14 years, over the past weekend, Moody’s had upgraded the country’s sovereign ratings to Baa2 with a stable outlook.

The last rating revision was in 2004.

“We expect GDP growth of around 7.6 percent will result in higher sales volumes, which, along with new production capacities and benign commodity prices, will support pre-tax growth of 5-6 percent over the next 12-18 months,” Kaustubh Chaubal, a vice-president and senior analyst at Moody’s said today in a report on the 2018 outlook for non-financial Indian corporates.

2:40 pm MF Inflows: Equity mutual funds registered a an inflow of over Rs 16,000 crore in October, buoyed by strong participation from retail investors, latest data with industry body Amfi showed.

This has taken the total inflow into such funds to over Rs 96,000 crore in the first seven months of the ongoing financial year.

“The mutual fund industry has been among the biggest beneficiaries of demonetisation, which resulted in low interest rates on bank deposits. The move also helped investors shift from physical assets to financial savings. Years of perseverance by industry players and the regulator seems to have paid off, finally,” Bajaj Capital CEO Rahul Parikh said.

2:30 pm Market Check: Benchmark indices continued to trade flat with a positive bias in afternoon trade. Globally investors await the minutes of recent Federal Reserve policy meeting later today.

The 30-share BSE Sensex was up 84.41 points at 33,562.76 and the 50-share NSE Nifty rose 10.50 points to 10,337.40.

Investors also focussed on crude oil prices that started moving northwards. Brent crude futures gained 1 percent to trade at USD 63.19 a barrel while US crude futures rose 1.81 percent to USD 57.86 a barrel on expected OPEC cut extension.
2:20 pm Adani close to secure Chinese loans: Indian mining giant Adani is

close to securing loans from China to build a 388-km railway in Queensland for its controversy-hit 16.5 billion dollars Carmichael coal mine project, a media report said today.

According to the report, days ago, a director of Adani Mining, an Australian subsidiary of the Adani Group’s flagship company Adani Enterprises, told industry figures that the company had secured Chinese funding for the mine and the rail project between Abbot Point and Galilee basin in Queensland.

“Adani Group is close to securing finance with an announcement expected in coming weeks that Chinese state-owned enterprises, banks, and export credit agencies are backing the venture,” the Australian Broadcasting Corporation (ABC) reported.

The company, however, rejected the claim in a statement saying, “There have been incorrect reports in the media this morning stating that Adani is no longer seeking a loan from the NAIF”.

2:05 pm Stake Sale: Venture capital firm Sequoia Capital has sold almost 1 percent stake in local search engine Just Dial through an open market transaction.

According to a BSE filing, Sequoia Capital India Investments III, SCI Growth Investments II and Sequoia Capital India Growth Investment Holdings I, which held 4.10 percent stake, sold 6.36 lakh shares representing 0.94 percent of stake in Just Dial.

The shares were offloaded on November 20. Based on the weighted average price of Rs 558.8 of the stock on the sale day, the transaction is estimated at Rs 35.55 crore.

Post share sale, Sequoia Capital’s stake in Just Dial remains 3.16 percent.
Here are the top headlines at 2 pm from Moneycontrol News’ Anchal Pathak

1:57 pm Leather stocks off day’s high: Leather stocks like Bata, Liberty Shoes and Mirza International turned flat after sources told CNBC-Awaaz that the Cabinet Committee has deferred incentive package for the industry.

1:42 pm Europe Check: European stocks hovered around the flatline on Wednesday morning as positive global sentiment eased.

The pan-European Stoxx 660 was 0.05 percent lower with most sectors suffering losses in early deals.

The main focus for market players on Wednesday will be on earnings, data from the euro zone and a budget update in the U.K.

1:20 pm Market Check: Sensex continued to trade around 100 points higher, while the Nifty was trading firmly above 10,300.

The Sensex was up 113.21 points at 33591.56, while the Nifty was up 20.70 points at 10347.60. The market breadth was negative as 1205 shares advanced against a delcine of 1249 shares, while 139 shares were unchanged.

Adani Ports, Zee Entertainment and SBI gained the most, while Dr Reddy’s Labs, Kotak Mahindra Bank, and Tech Mahindra lost the most.

1:10 pm IT outlook: The information technology sector has witnessed a mixed bag kind of a year. Though they started off on a low note, Sensex and Nifty IT indices returned 5-7 percent in this calendar year so far.

Broking firm CLSA picked HCL Tech and Infosys as it top picks.

CLSA said that firms in the sector continue seeing challenges in retail & telecom while demand in insurance is returning. Some signs of BFS demand is coming back, but this can only be confirmed in CY19.

12:50 pm Buzzing: Motilal Oswal has maintained its buy call on CESC and expects the stock to rally 34 percent to hit its target price of Rs 1,360 per share, citing the expected demerger into four separate businesses.

The research house said CESC’s demerger plans remain on track.

It has received exchange and SEBI approval. Shareholder meeting is scheduled on December 15, 2017.

“The demerger into four separate businesses would drive value through unlocking the potential of the distribution and retail businesses. Distribution business will get re-rated on reduced volatility in earnings and lower cost of equity. Spencer’s too will command better valuations after expected turnaround in FY18,” Motilal Oswal said.

12:40 pm USFDA Approval: Strides Shasun today said its wholly-owned subsidiary has received approval from the US health regulator for Acteazolamide tablets, used to prevent and reduce symptoms of altitude sickness.

In a BSE filing, it said Strides Pharma Global Pte. has received approval from the United States Food and Drug Administration (USFDA) for Acteazolamide tablets USP, 125mg and 250 mg.

The approved product is a generic version of Diamox tablets.

Strides said the product, to be launched immediately, will be marketed by Strides Pharma Inc in the US.

12:29 pm Market Outlook: Aneesh Srivastava, CIO, IDBI Federal Life Insurance said it is difficult to predict market behaviour in the near term. Global market is expecting the US Federal Reserve to again hike Fed Fund rates by 25 bps. Slowly, best of global liquidity and rate conditions are reversing across economies.

If this reversal continues along with a bounce back in the economic growth, it may not be all that bad for stock markets. However, if the reversal happens and the growth disappoints, it would be bad for markets.

The year 2016 has seen global growth of 3.2 percent. We do not expect sharp improvements in growth rates from here and IMF has indicated 3.6 percent growth in 2017 and 3.7 percent in 2018.

Global and domestic liquidity has driven a rally in Indian stock markets without much improvement in corporate earnings.

It is difficult to predict the outcome of elections; however, the performance of BJP government has been satisfactory and markets are building in the reappointment of BJP government in state elections.

12:20 pm Market Check: Equity benchmarks traded mildly higher amid volatility in afternoon trade as globally investors await the minutes of recent Federal Reserve policy meeting due later today.

The 30-share BSE Sensex rose 85.68 points to 33,564.03 and the 50-share NSE Nifty gained 15.40 points at 10,342.30.

HDFC Standard Life was the most active stock on exchanges, up 2 percent and continued uptrend for fourth consecutive session today. It rallied 45 percent since listing on last Friday.

12:14 pm Buzzing: Shares of Ramco System rose more than 3 percent intraday as it has received repeat order from LBC Express.

LBC Express Inc., Philippines has signed a multi-million dollar repeat order with the company to unify and automate its logistics and supply chain operations across its 1300 global branches and 121 warehouses, as per company release.

P R Venketrama Raja, Chairman, Ramco Group said, “Philippines is a highly promising market and is adopting next-generation enterprise technology at a rapid rate.”

12:01 pm Asia Update: Asian shares joined a global rally to reach their highest in a decade today as strong world growth and rising corporate profits lured hordes of investors into equities, while oil prices jumped closer to a recent 2-1/2 year top.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4 percent to Wednesday’s 1.3 percent rise – the biggest gain in eight months, supported by energy and technology sectors.

The index has been on an uptrend most of this year, posting a monthly loss only once in 2017. For the year so far, it is up about 33 percent, on track for its best annual performance since a 68 percent jump in 2009. Hong Kong’s Hang Seng index is up 35.5 percent year-to-date.

Here are the top headlines at 12 pm from Moneycontrol News’ Anchal Pathak

11:50 am Jaypee case update: Supreme Court has freezed assets of all 13 directors.

The court has accepted payment of Rs 275 crore from Jaiprakash Associates.

The court directed the company to deposit Rs 150 crore by December 11 and Rs 155 crore by December 31.

11:40 am Gold Price Update: Gold prices remained in a narrow range today as investors remained cautious ahead of the release of minutes from the US Federal Reserve’s last meeting, which could offer hints on the outlook for the central bank’s monetary policy.

US gold futures for December delivery were down 0.04 percent at USD 1,281.20.

The Fed kept interest rates unchanged at its last meeting, minutes of which will be released today.

11:26 am FII View: “Investors feedback is turning incrementally positive. They believe the worst for corporate earnings is past,” CLSA said in its India Strategy note.

The research house further said investors like government’s pro-growth stance in public sector banks’ recapitalisation plan and are positive on mild fiscal relaxation through tax cuts.

After the implementation of goods and services tax (GST) from July 1, companies highlighted the shift from unorganised to organised.

CLSA said GST benefits are moderately visible through early signs but improvements in capex activity are not expected just as yet.

The research house further said preferred stories are ICICI Bank, SBI, M&M, ITC, Lupin, Reliance Industries, Bharti Airtel and Jubilant Foodworks.

11:15 am Petcoke ban plea: Supreme Court has refused plea filed by Hindalco, NTPC to lift petcoke & furnace oil ban.

Hence, both companies have withdrawn their plea.

11:02 am Buzzing: Gujarat Pipavav Port rallied more than 10 percent on value buying.

10:55 am Crude Price Update: Oil prices rose as ongoing cuts of piped Canadian crude to the United States added to falling US crude inventories, while expectations of a prolonged OPEC-led production cut also offered support.

US West Texas Intermediate (WTI) crude futures were at USD 57.71 a barrel, up 1.55 percent from their last settlement.

Brent crude futures, the international benchmark for oil prices, were at USD 62.99 per barrel, up 0.67 percent.

10:40 am SCI vessel sinks: An offshore supply vessel of the state-run Shipping Corporation of India (SCI) sunk off the Mumbai coast yesterday evening.

“All the 16 crew members on board SCI Ratna have been rescued,” Director General of Shipping Malini Shankar said. The incident occurred around 7.30 pm, she said. SCI chairman Capt Anoop Sharma said all the crew members were immediately rescued by another vessel operating in close vicinity.

10:29 am Pharma plant approval: Cipla’s Pune Unit-I and II has received approval from the UK regulator to export veterinary products and human medicinal products. The stock gained 1 percent.

10:21 am Market Check: Equity benchmarks were off their opening highs in morning, weighed by metals, pharma and banks stocks. Profit booking could be actual reason as the market rallied since last Thursday.

The 30-share BSE Sensex was up 17 points at 33,495.35 and the 502-share NSE Nifty fell 9.70 points to 10,317.20.

Reliance Industries, Bajaj Finance, IOC, Vedanta, Bharti Infratel, Axis Bank, Yes Bank, Tech Mahindra and HPCL were under pressure.

10:05 am Rupee Trade: The rupee climbed 7 paise to 64.81 against the US currency today, spurred by positive equities. Banks and exporters chose to kept an arm’s length from the dollar.

Stock markets continued to show strength that bolstered rupee sentiment, currency traders said. However, the dollar’s clout overseas weighed heavy on the domestic unit.

Yesterday, the rupee had gained 22 paise to end at a two-week high of 64.89 against the dollar, cashing in on positive sentiment after Moody’s upgrade of India’s credit rating.

Here are the top headlines at 10 am from Moneycontrol News’ Anchal Pathak

9:46 am Fundraising: State-owned lender Bank of Baroda said it proposes to raise up to Rs 6,000 crore through rights issue or private placement.

The finance committee of the bank’s board has approved the proposal, the lender said in a regulatory filing.

“…the Finance Committee of the Board approved the proposal of raising additional equity capital aggregating up to Rs 6,000 crore by way of rights issue or qualified institutions placements (QIP)…,” the bank informed stock exchanges.

9:40 am UK approval for pharma plant: FDC gained 2 percent as its Goa Unit-III received approval from the UK regulator to export uncoated tablets, reports CNBC-TV18 quoting Cogencis.

News Live: PSBs plan to raise over Rs 13K cr after bank recap plan, Moody’s upgrade

9:37 am Buzzing: Shares of NCC touched 52-week high of Rs 114.80, gaining 6.5 percent in the early trade as it has won a contract for mine development and operation of Talaipalli coal block.

The consortium formed between NCC and BGR Infra has been awarded a project relating to mine development and operation of Talaipalli coal block by NTPC India.

A special purpose vehicle (SPV) to be formed between NCC and BGR Mining & Infra with a sharing ratio of 51:49 will execute the project.

The value of the project is estimated to be Rs 25,071 crore to be executed over 25 years.

The annual revenue at related capacity is expected at Rs 1,000 crore at current prices.

9:26 am Technical Outlook: “After a steady move seen in the past 4 days, there are a lot of outstanding short position in Nifty and the index calls and we can expect another round of short covering as we are moving towards the expiry week,” Shitij Gandhi, SMC Global Securities said.

As per the current derivatives data, Nifty can move towards 10,450-10,500 in coming sessions amid further short covering by call writers.

The derivative data indicates bullish scenario to continue with Nifty having multiple strong supports at lower levels around 10,250, 10,200 & 10,100 spot levels.

“We can see short covering on every dip as Put writers are once again seen active in Tuesday’s sessions. We have seen Put writing in 10,300, 10,200 puts and unwinding in calls,” he said.

The overall data has turned positive and the market can now witness more upside in coming sessions, he added.

9:20 am Buzzing: TeamLease Services share price rallied 7 percent after T Rowe Price International and its International Discovery Fund bought close to 5 percent stake (85,736 and 7,50,808 shares at Rs 1,885 per share) through block deals on Tuesday.

Gaja Capital India Fund I sold 1,53,374 shares at Rs 1,885 per share and GPE (India) sold 6,56,975 shares at Rs 1,885.04 per share.

9:15 am Market Check: Equity benchmarks started off trade on a positive note, with the Nifty reclaiming 10,350 level, tracking positive lead from Asian peers.

The 30-share BSE Sensex was up 95.75 points at 33,574.10 and the 50-share NSE Nifty gained 29.80 points at 10,356.70.

About 803 shares advanced against 291 declining shares on the BSE.

Yes Bank, NTPC, Ambuja Cements, Zee Entertainment, Reliance Industries, Tata Motors and Bosch were early gainers.

Bata, Liberty Shoes, Relaxo Footwears, Superhouse and Mirza International gained 1-5 percent as sources told CNBC-TV18 that cabinet may consider package for leather sector today.

Future Retail, TeamLease Services, NCC, BGR Energy Systems and DHFL rallied 2-7 percent.

Asia markets traded higher, taking overnight cues from Wall Street where stocks rose to record highs.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.