Market Live: Sensex above 33,000, up over 200 pts; Airtel up 3%, breadth strong
The US Congress passed legislation funding the government through December 22, averting a shutdown of agencies that would have been triggered at midnight Friday.
Congress and President Trump will now have to come up with a deal to keep the government operating beyond December 22. The dollar index, which gauges the greenback against a basket of six major rivals, was steady on the day and up 1 percent for the week.
11:02 am Maruti at new high: It has been a great year for Maruti Suzuki India as value buying due to better monthly sales growth and corporate earnings despite demonetisation & GST effects helped the stock register 71 percent growth in 2017.
The share price has crossed the milestone of Rs 9,000 for the first time on Friday, hitting a record high of Rs 9,119.95. It was also partly boosted by positive sentiment in equity markets.
The stock today gained 2.7 percent intraday, in addition to 3.3 percent rally in previous session.
10:52 am Gold Update: Gold prices drifted lower by 0.27 percent to Rs 28,589 per 10 grams in futures trade today as participants cut their bets amid a weak global trend.
Profit-booking by speculators also weighed on gold prices.
At the Multi Commodity Exchange, gold prices for delivery in February month declined by Rs 78, or 0.27 percent, to Rs 28,589 per 10 grams in business turnover of 264 lots.
Likewise, the metal for delivery in far-month April contracts was trading lower by Rs 77, or 0.26 percent, to Rs 28,652 per 10 grams in modest one lot.
10:42 am SEBI on Corporate Governance: Observing that a lot of improvement is needed in corporate governance framework, Sebi whole time member G Mahalingam has called for more research work on this issue particularly in the area of board evaluation.
“Lot more research and work can be done in the area of corporate governance. Recently Uday Kotak came out with its set of regulations. What are the areas in corporate governance that need improvement is a fertile area for research,” Mahalingam said here late last evening.
“Board evaluation guidelines has been issued by Sebi but how is it functioning now is great area of interest. It is because contours of board evaluation are not clearly laid down. So if we can work a little more on that it would pave way for better corporate governance mechanism,” he added.
10:31 am Market Check: Benchmark indices remained strong in morning as the Sensex was up 234.09 points at 33,183.30 and the Nifty gained 78 points at 10,244.70.
About three shares advanced for every share falling on the BSE.
All sectoral indices were strong for second consecutive session today. Nifty Metal, Pharma and Auto indices gained more than a percent.
10:15 am Rating Upgrade: CARE has upgraded Man Infracontruction’s rating for bank facilities. The stock gained over a percent.
The rating agency has upgraded fund-based long-term bank facilities worth Rs 32.50 crore to A- with stable outlook, from BBB+.
The rating on non-fund-based long/short term bank facilities worth Rs 188.18 crore also upgraded by CARE to A- (stable) / A2+, from BBB+ (stable) / A2.
10:05 am Market Check: Equity benchmarks maintained uptrend, with the Sensex rising 177.44 points to 33,126.65 and the Nifty rallying 60.60 points to 10,227.30.
About 1,474 shares advanced against 547 declining shares on the BSE.
Here are the top headlines at 2 pm from Moneycontrol News’ Anchal Pathak
9:55 am Earnings Reaction: Shriram EPC share price was locked at 20 percent upper circuit at Rs 24.30 after the company turned profitable in the quarter ended September 2017.
The Shriram Group’s engineering and infrastructure company has reported a profit of Rs 2.44 crore in July-September quarter against loss of Rs 21.8 crore in year-ago. Other income and revenue boosted profitability.
Revenue during the quarter grew by 44 percent to Rs 115.30 crore, compared with Rs 80.08 crore in corresponding period last fiscal.
Other income shot up to Rs 30.63 crore in September quarter 2017, from Rs 19.43 crore in year-ago.
9:45 am Buzzing: HDFC Bank gained a percent after Credit Suisse raised the target price to Rs 2,075 from Rs 1,955. This implies an upside of 6 percent.
The global research firm expects the bank to undertake its next capital raise in FY19 and highlighted how the stock has historically performed well around capital raise.
Further, it said that the bank has CET1 at 12.2 percent, similar to the levels seen in FY15.
Credit Suisse said that if USD 3 billion is raised, then expect 4 percent dilution and increase in capital base by 20 percent. It also said that the amount was enough to support growth for next 3-4 years, if the loan growth is at 23-25 percent.
9:38 am Rupee Trade: The Indian Rupee traded higher at 64.55 against the US dollar, rising 2 paise compared with previous close.
Increased selling of the American currency by exporters and banks supported the rupee. Positive equity markets also aided sentiment.
On Thursday, the rupee had lost further ground to end at a near two-week low of 64.57 against the US currency, falling by 5 paise.
Meanwhile, the BSE Sensex was up 171.86 points at 33,121.07 and the Nifty gained 51.30 points at 10,218.
9:33 am Drug Test: Glenmark Pharmaceuticals today announced that the first patient has been dosed in a Phase 1 trial of GBR 1342, an investigational bispecific antibody.
This first-in-human, open-label study’s primary objective is to assess the safety and tolerability of increasing doses of GBR 1342 in multiple myeloma patients until a maximum tolerated dose is reached. Additional study objectives include assessment of biomarkers, immunogenicity and additional measures of anti-tumor activity.
GBR 1342 simultaneously targets CD38, as well as the CD3 T cell co-receptor. CD38 is an antigen target implicated in multiple myeloma and other malignancies of hematopoietic origin, as well as a variety of solid tumors.
9:26 am Results Reaction: Jet Airways’ second quarter earnings disappointed the Street as profit fell sharply to Rs 49.6 crore, from Rs 549 crore in year-ago.
Revenue, however, increased to Rs 5,626.6 crore from Rs 5,453.2 crore YoY.
9:20 am Acquisition: Homegrown FMCG major Emami announced to acquire 30 percent stake in Lifestyle, which owns male grooming brand ‘The Man Company’.
The stake will be acquired by December 31, 2018, through the infusion of required funds in Helios, the Kolkata-based company said in a statement.
The size of the deal was however not disclosed.
“The acquisition of stake by Emami is significant as it marks the company’s entry in the fast-growing online male grooming segment,” it said.
Emami is present in the male grooming segment through its brands Fair and Handsome and HE.
9:15 am Market Check: Equity benchmarks extended rally in opening on Friday, with the Sensex rising more than 150 points and the Nifty reclaiming 10,200 level on value buying and positive global cues.
Tata Motors, GAIL, Axis Bank, Kotak Mahindra Bank, ICICI Bank, Bajaj Auto, Bosch, Bajaj Finance and IndusInd Bank were early gainers.
The 30-share BSE Sensex was up 166.12 points at 33,115.33 and the 50-share NSE Nifty rose 50.30 points to 10,217. About 958 shares advanced against 263 falling shares on the BSE.
Bharti Infratel, NTPC, Lupin, Eicher Motors and HPCL were early losers.
Nifty Midcap and Nifty Bank indices gained more than 100 points.
Future Consumer, Shriram EPC, Escorts and Emami rallied 2-19 percent while Indian Hume Pipe and Jet Airways were under pressure post earnings, falling 3-6 percent.
Britannia Industries hit 52-week high and TVS Motor made a new high today.
Asian markets were trading higher, tracking positive lead from Wall Street, as investors stateside awaited developments regarding tax reform. Markets also awaited the release of trade data out of China for clues about the health of its economy.
