Market Live: Sensex, Nifty off day#39;s high; Infosys, Biocon, HDFC most active
3:10 pm Buzzing: Mirc Electronics share price fell more than 5 percent intraday after the issue of Rs 144 crore worth of shares to non-promoters, at lower than current market price.
The maker of Onida brand of consumer durable products informed exchanges that the board has approved issue of 1.92 crore equity shares and 1.92 crore warrants convertible into equity shares, on preferential basis at Rs 37.53 per share to non-promoters to augment its long term working capital and corporate requirements.
“This would result in infusion of Rs 144.12 crore worth of equity in to the company,” the company said.
Every warrant is entitled to receive 1 equity share at the time of conversion within a period of 18 months from the date of issue of warrants.
2:58 pm Oil Output Cut: OPEC is expected to stick to its current policy of output cuts in the second half of 2018, but oil producers have plenty of supply with which to respond to any sudden disruptions, Saudi Arabian energy minister Khalid al-Falih told reporters.
He was speaking after meeting with US Energy Secretary Rick Perry, who said OPEC would make its own decisions and that he was comfortable the United States could work within those parameters.
2:40 pm Management Interview: Setco Automotive is in focus after posting a good set of Q2 numbers.
In an interview to CNBC-TV18, Udit Sheth, Joint MD of Setco said the company is looking at Rs 1,000 crore revenue target over next three years.
He further said that the company expects 17 percent margins by next year.
Setco has done well post disruptions like note ban and changes in emission norms, he said.
2:25 pm FTP Review: Key policymakers led by Commerce Minister Suresh Prabhu will unveil the mid-term review of the foreign trade policy tomorrow, which is likely to address exporters’ concerns to arrest the declining trend of shipments.
The mid-review of the much-awaited policy will be released at an event graced by Prabhu, along with top officials including the Directorate General of Foreign Trade Atul Chaturvedi, Commerce Secretary Rita Teaotia and Revenue Secretary Hasmukh Adhia.
Exporters have been voicing concerns about challenges on account of implementation of GST, even suggesting that they be kept out of the ambit of the new indirect tax regime and the drawback refund be expedited as it was blocking their working capital.
The mid-term review was earlier supposed to be released before July 1, in line with the introduction of GST. However, it was put off as the government wanted to factor in the feedback from exporters based on their experience with GST.
2:15 pm Gold Update: Gold prices tumbled by Rs 300 to Rs 30,200 per 10 grams at the bullion market today, taking cues from a weak trend overseas and slack demand from local jewellers.
Silver also fell by Rs 150 to Rs 39,000 per kg on reduced offtake by industrial units and coin makers.
Traders said that besides a weak trend in the overseas market as strength in dollar reduced appeal for the precious metal as a safe-haven, fall in demand from local jewellers and retailers at domestic spot market, weighed on the gold prices.
Globally, gold fell by 0.46 per cent to USD 1,273.70 an ounce and silver by 0.40 per cent to USD 16.36 an ounce in Singapore.
2:03 pm Market Update: Benchmark indices came off day’s high in afternoon, with the Sensex rising 27.02 points to 32,859.96 and the Nifty trading 7.10 points higher at 10,128.90.
The market breadth was negative as about 1,455 shares declined against 1,075 advancing shares on the BSE.
Here are the top headlines at 2 pm from Moneycontrol News’ Anchal Pathak
1:50 pm Stake Buy: Telecom major Bharti Airtel today said it has acquired a “strategic” stake in Juggernaut Books, a digital platform for amateur riters.
The investment is in line with its endeavour to build an open content ecosystem and bring world-class digital content to its customers, the company said in a statement.
Juggernaut Books allows people to discover and read high quality, affordable books and to submit amateur writing, it said.
“The investment from Airtel will enable Juggernaut to ramp up content acquisition, digital marketing and prepare for a subscription offering launch in the next few months,” the statement said.
1:45 pm Europe opens: European markets were higher on Monday morning, as investors digested news that the U.S. Senate narrowly passed a major tax bill over the weekend.
The pan-European Stoxx 600 opened up 0.65 percent shortly after the opening bell, with all sectors and major bourses in positive territory.
1:21 pm IT notices: The Income Tax (I-T) department has served notices to more than 50 persons whose names were in the list of people having Swiss accounts with HSBC Geneva.
The people have been communicated their hearing dates, The Economic Times reports. The department would then be able to initiate prosecution once appeal of the people are dismissed in the initial stage of appeal.
The tax department is keen to start the process before the year-end.
While the Supreme Court had said the beneficiaries are not liable to pay tax if they haven’t received any amount from the trust, an appellate tribunal last month ruled in tax department’s favour.
1:10 pm Europe to open higher: European markets are expected to start off the first trading day of the week sharply higher, as investors digest news that the U.S. Senate narrowly passed a major tax bill over the weekend.
On the bourses front, the U.K.’s FTSE 100 is expected to open 59 points higher at 7,359, while the German DAX is set to skyrocket at the market open, up 176 points at 13,037 and the French CAC up 57 points at 5,372, according to IG.
12:52 pm China Growth: China’s economic growth target for 2018 will reflect new changes in the economy as the government put more emphasis on higher quality development, the State Council Information Office said today.
The government will set its key targets for 2018 “after earnestly studying new performance, new situations and new problems”, the office, the government’s public relations arm, said in a statement in response to Reuters’ requests for comment on a source-based story.
“China’s economic and social development still faces many contradictions and challenges that need to be seriously resolved and dealt with,” it said.
Policy sources have told Reuters that China’s leaders are likely to maintain this year’s growth target of “around 6.5 percent” in 2018, even as they ratchet up efforts to control systemic risks from a rapid build-up of debt in the world’s second-largest economy.
The International Monetary Fund (IMF) and some economists have suggested that Beijing do away with growth targets to reduce the country’s long reliance on debt-fuelled stimulus and encourage more productive investment.
12:37 pm Market Outlook: Ratnesh Kumar, MD & CEO, BOBCAPS does not see a big correction.
“There is an element of topping out seen. Valuations are on the higher side and the numbers are not coming through in terms of earnings,” he told CNBC-TV18, adding, with the year end approaching, last two-three weeks of December could see slowdown in foreign flows due to holiday season. So, there could be stagnation, but not a deep correction.
Speaking on the impact of major events, Kumar said the Street is expecting the Reserve Bank of India (RBI) to hold rates in the upcoming policy meet. Meanwhile, for Gujarat elections, the market is looking at incumbents retaining the mandate. “Any disappointment there could impact the market,” he told the channel.
12:27 pm Market Check: Equity benchmarks continued to trade higher in afternoon, aided by Infosys (up 3.6 percent), HDFC (1.24 percent), Tata Motors (2 percent) and L&T (0.9 percent). However, Reliance Industries and select private banks capped gains.
The 30-share BSE Sensex was up 104.93 points at 32,937.87 and the 50-share NSE Nifty rose 30.40 points to 10,152.20.
12:20 pm Order Win: TATA Projects in a joint venture with Daewoo E&C of
South Korea has announced that they have secured an USD 850 million contract (Rs. 5,612 crore) to design and build a part of India’s longest sea-bridge – Mumbai Trans Harbour Link.
While the TATA JV emerged as the lowest bidder for both the Sea Packages 1 & 2, it was awarded only one of the packages (package 2) as provided in the tender conditions. The package awarded to Daewoo – TATA Projects JV involves construction of a 7.8 km long bridge section across the Mumbai Bay including Shivaji Nagar Interchange at Navi Mumbai at contract value of Rs 5,612 crore, which is a complex stretch.
12:05 pm IDFC India Strategy: Research house IDFC Securities expects Nifty earnings to register 15.1 percent CAGR over FY16-19 and set FY19 Nifty EPS target at Rs 579, implying 20.9 percent YoY growth.
Recent quarterly earnings (July-September) were stable to better-than-expected, which supported the market and gave investors a confidence to stay positive on India growth.
After earnings season, experts also lifted their earnings estimates and believe that there could be strong earnings revival from second half of FY18.
The Nifty50 rallied nearly 24 percent year-to-date, driven majorly by liquidity on hopes of earnings growth and Modi government reforms.
IDFC feels the asset-heavy and export oriented industries are expected do well as global economy is recovering. Consumption sector will find growth impetus from retail credit, it said.
Here are the top headlines at 12 pm from Moneycontrol News’ Anchal Pathak
11:48 am Buzzing: Shares of Wipro declined 3.2 percent as National Grid US filed lawsuit against company in the US court.
The suit filed by National Grid against the company in the US court for the Eastern District of New York seeking damage amounting to USD 140 million plus additional cost related to the project.
National Grid has been a valued customer of Wipro in the US and UK for several years.
The company strongly believes that the allegations misstate facts and the claims are baseless. The company will vigorously contest the allegations in court.
The lawsuit is related to an enterprise resource planning (ERP) implementation project, which began in 2009, and was undertaken by National Grid US.
11:40 am Crude Oil Update: Crude oil futures eased by Rs 26 to Rs 3,736 per barrel today as speculators reduced their positions amid a weakening trend overseas.
Profit-booking at existing levels too weighed on crude prices, analysts said.
At the Multi Commodity Exchange, crude oil for delivery in December was trading lower by Rs 26, or 0.69 percent, to Rs 3,736 per barrel in 1,902 lots.
The oil for delivery in far-month January 2018 also fell by Rs 25, or 0.66 percent, to Rs 3,749 per barrel in 43 lots.
The West Texas Intermediate (WTI) crude lost 0.3 percent at USD 58.15 a barrel, while Brent crude, the international benchmark, fell 0.4 percent to USD 63.51 a barrel at the New York Mercantile Exchange.
11:20 am Buzzing: Tata Motors share price rallied 3 percent intraday following strong commercial vehicle sales data reported by the company in November
“The commercial and passenger vehicles sales performance in domestic market in November 2017 was at 52,464 units, a growth of 58 percent, over last year due to growing demand across segments, introduction of new products and strong customer initiatives,” the company said in its filing.
Commercial vehicle sales increased 71.9 percent year-on-year to 35,307 units in month gone by.
“The commercial sector has bounced back strongly after the initial disruption in the market, surrounding demonetization and the BS4 transition that largely affected the transport industry last year,” the company said.
Tata Motors said passenger vehicle sales growth of 35 percent at 17,157 units was driven by strong growth momentum of new generation Tata cars.
11:06 am Market Check: Equity benchmarks gained strength again, backed by Infosys that extended rally to nearly 4 percent after appointment of Salil S Parekh as MD & CEO of the company.
The 30-share BSE Sensex was up 112.18 points at 32,945.12 and the 50-share NSE Nifty gained 30.70 points at 10,152.50.
About 1,223 shares advanced against 1,077 declining shares on the BSE.
10:57 am Sales Data: Steel Strips Wheels achieved total wheel rim sales of 12.92 lakh against 11.99 lakh in November 2017, representing a growth of 8 percent YoY.
The volumes of truck segment helped post highest healthy revenue growth for the company.
In terms of value, the company has achieved gross turnover of Rs 172.75 crore in November 2017 against 128.62 crore in November 2016, there by recording a growth of 34 percent and achieved net turnover of Rs 138.85 crore in November 2017 against Rs 115.25 crore in November 2016, recording a growth of 20 percent.
“The record turnover is driven by record growth in truck segment and we expect this trend to continue going ahead,” Steel Strips Wheels said.
10:40 am Joint Venture: Fiem Industries informed exchanges that it has signed a memorandum of understanding with Japanese firms Aisan Industry and Toyota Tsusho Corporation for establishing a joint venture company in India.
The joint venture company will manufacture fuel pump module and IC connector assembly for two-wheelers and three-wheelers.
Fuel pump module will become mandatory for two-wheelers and three-wheelers w.e.f. April, 2020 under Bharat Stage VI (BS VI) regime.
This is an advanced Emission Control System Product, which will have huge market in India under BS VI norms, Fiem Industries.
10:20 am Order Win: Shares of Transformers and Rectifiers India gained 5 percent in morning as it has received order worth Rs 127 crore.
“….. has been awarded order for 15 number of transformer amounting to Rs 127 crore from Power Grid Corporation of India.”
The said order fall under the normal course of business. The company neither has any interest in the entity that awarded the order nor fall within related party transactions.
With this order, the company’s order book as on stands around Rs 937 crore.
The company continuously thrives to deliver quality products and services, and over a period of time has become a leading manufacturer of transformers in the country.
10:12 am EIR from USFDA: Shares of Dr Reddy’s Laboratories was up more than 2 percent intraday as it has received EIR for its Miyapur facility.
The company has received establishment inspection report (EIR) for Miyapur facility, Hyderabad, Telangana.
The audit of the said facility has been completed by USFDA in September with zero observations.
10:01 am Rupee Trade: The rupee was trading down by 3 paise at 64.49 against the US currency in early trade today at the interbank foreign exchange as the dollar strengthened in global markets after progress on the US tax-cut proposal.
Dealers also attributed the rupee’s fall to increased demand for the US currency from importers but a higher opening in the domestic equity market capped the losses to some extent.
The rupee opened lower by 7 paise at 64.53 against last close of 64.46 on higher demand for the dollar. Later the rupee reverses its losses to touch a high of 64.45 in early trade.
On Thursday, the rupee had lost 15 paise to close at 64.46 a dollar on growing concerns with regard to fiscal deficit and possible extension of crude oil production curb by OPEC. Forex and money markets were closed on Friday on account of Id-E-Milad.
Here are the top headlines at 10 am from Moneycontrol News’ Anchal Pathak
9:53 am Buzzing: Shares of JSW Energy rose 2.2 percent in morning as it has secured (power purchase agreements) PPAs aggregating to 208 MW.
This PPA consists 176MW PPA with Haryana Power Purchase Centre to be supplied from the Karcham Wangtoo Hydro Electric Project of Himachal Baspa Power Company, a 100 percent subsidiary of the company.
And 32MW under group captive scheme to be supplied from the Ratnagiri plant of the company.
With this, the long term PPA proportion of the company on a consolidated basis has increased from 64.6 percent at end of Q2FY18 to 69.3 percent currently.
9:43 am Adani Enterprises under pressure: China’s two biggest banks said they do not plan to finance a controversial Australian coal mine, in the latest blow to Indian conglomerate Adani Enterprises’ long delayed project.
The stock fell more than 4 percent after this news, but immediately recovered to trade 0.4 percent lower.
Industrial and Commercial Bank of China (ICBC) and China Construction Bank said in separate statements they were not working on the project, after media recently reported that Chinese banks may get involved.
Adani is seeking 2 billion Australian dollar (USD 1.5 billion) in financing by March 2018 for the 4 billion Australian dollar first stage of its proposed Carmichael coal mine in the state of Queensland, a project that has been shrunk from a 16.5 billion Australian dollar plan to make it more viable.
Adani declined to comment on its financing plans on Monday or the statements from the Chinese banks.
9:31 am Market Check: Equity benchmarks wiped out opening gains to trade flat as gains led by Infosys, Tata Motors, HDFC and Axis Bank were offset by Reliance Industries, HDFC Bank and ITC.
The 30-share BSE Sensex was down 5.47 points at 32,827.47 and the 50-share NSE Nifty fell 15.30 points to 10,106.50.
9:25 am Buzzing: Share price of Alphageo advanced more than 4 percent in the early trade on receiving award of contract from ONGC.
The company has received a notification of award of contract from ONGC, WOB, Vadodara, Gujarat for acquisition of 3D seismic data in Mehsana carpet area of Cambay basin, India for an estimated contract value of Rs 154.77 crore.
A meeting of the board of directors of the company is scheduled to be held on December 4, 2017, to consider and approve the unaudited financial results of the company for the quarter and six months ended September 30, 2017.
9:20 am Infosys in focus: Infosys’ board of directors has appointed Salil S Parekh as Chief Executive Officer and Managing Director (CEO & MD) of the company effective January 2, 2018.
The appointment ends a nearly four-month long search for the top job at India’s second largest IT services firm.
Parekh joins Infosys from Capgemini where he was a member of the Group Executive Board.
He has Master of Engineering degrees in Computer Science and Mechanical Engineering from Cornell University, and a Bachelor of Technology degree in Aeronautical Engineering from the Indian Institute of Technology, Bombay.
UB Pravin Rao will step down as the interim CEO and Managing Director effective January 2, 2018 and will continue as Chief Operating Officer and a whole-time Director of the Company.
9:15 am Market Check: Equity benchmarks started off the week on a positive note, backed by Infosys that gained 2.5 percent after the appointment of new CEO and MD.
The 30-share BSE Sensex rose 89.51 points to 32,922.45 and the 50-share NSE Nifty gained 23.60 points at 10,145.40. About 980 shares advanced against 291 declining shares on the BSE.
Infosys, Indiabulls Housing, Tata Motors, Dr Reddy’s Labs, SBI, Aurobindo Pharma and ICICI Bank were early gainers while Tech Mahindra, Sun Pharma and Hero MotoCorp were early losers.
Biocon surged 10 percent as the US FDA approved Mylan and Biocon’s Ogivri, the first biosimilar for Trastuzumab, for the Treatment of HER2-Positive breast and gastric cancers.
Syngene International, MT Educare, Zee Learn, Videocon Industries and Ashok Leyland gained up to 8 percent.
