Market Live: Sensex, Nifty Midcap gain 100 pts; Astron Paper debuts with 141% premium
Fri Dec 29 2017
Rajesh Sharma (1997 articles)

Market Live: Sensex, Nifty Midcap gain 100 pts; Astron Paper debuts with 141% premium

11:16 am Textile Industry in 2018: 2018 may turn out to be a challenging year for India’s textile and garment industry, with exporters still reeling under the impact of GST and outward shipments likely to miss the USD 45 billion target for 2017-18, PTI said.

Garment exporters have been demanding that the duty reimbursement to them be retained at the pre-GST (Goods and Services Tax) drawback rate of 7.5 per cent, amid declining outbound shipments.

India’s apparel exports declined 39 per cent in value terms in October.

However, India’s cotton production could touch 37.7 million bales in the year that began on October.

11:05 am Order Win: Aarti Industries today announced that they have signed a Rs 10,000 crore multi-year exclusive supply contract with a leading global chemical conglomerate.

This contract entails supply of a high value speciality chemical intermediate over a period of 20 years.

The supplies are expected to commence from 2,020 with an estimated revenue generation of Rs 10,000 crore over the contract period.

10:45 am Refinancing deal: IL&FS Transportation informed exchanges that Jorabat Shillong Expressway Limited, a joint venture mandated for development of section NH-20 (61.92 Kms) in Assam and Meghalaya has refinanced senior and subordinated debt by issue of non-convertible debentures to the extent of Rs 883 crore at a weighted average interest cost of 8.34 percent per annum as against 11.30 percent per annum resulting in savings of 2.96 percent in interest cost.

The project was completed in January 2016 and is entitled to receive from NHAI a semi-annual annuity of Rs 72.51 crore for a period of 15 years effective July 28, 2016.

10:28 am Buzzing: Motilal Oswal has initiated coverage with a Buy rating on Motherson Sumi Systems and set a target price at Rs 458 per share, citing strong organic growth opportunities for the company in international & domestic market. The stock gained 2 percent.

The research house expects revenue to grow 22 percent between FY17-20.

The company is set to leverage on disruptive global auto industry trends and has evolved as a partner of choice for almost all original equipment manufacturers in the world,” Motilal Oswal said.

10:20 am Rupee Trade: The rupee gained 9 paise against the US dollar to trade at 63.99 in early session on selling of the US currency by exporters and banks.

The dollar was weak against major currencies in global markets which supported the local currency, a currency dealer said.

Domestic stock markets opening higher too bolstered the rupee sentiment.

The rupee opened higher by 3 paise at 64.05 a dollar against previous close of 64.08 a dollar.

10:01 am Bumper Listing: Astron Paper and Board Mills started off trade with a hefty premium of 141 percent at Rs 120.75 on the National Stock Exchange, against issue price of Rs 50 per share.

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

 

9:56 am Affordable Houses Approval: The Ministry of Housing and Urban Affairs has approved the construction of over 5.4 lakh more affordable houses for urban poor under the Pradhan Mantri Awas Yojana (Urban), according to an official release.

The construction of houses entails an investment of Rs 31,003 crore. The central assistance will be to the tune of Rs 8,107 crore, the release said.

In the latest approval, Andhra Pradesh has been sanctioned 1,42,447 houses, while Uttar Pradesh got 1,20,645 houses and Karnataka 1,18,646.

Madhya Pradesh has been sanctioned 1,00,341 houses; Jharkhand 30,486; Chhattisgarh 29,703 and Arunachal Pradesh 2,822 houses.

This takes the total number of houses funded under PMAY (Urban) to 37,42,667.

9:52 am Pre-Opening: Astron Paper & Board Mills share price settled at Rs 115 in pre-opening trade on the National Stock Exchange, up 130 percent premium over its issue price of Rs 50.

9:44 am USFDA Approval: Shares of Lupin gained 2 percent in morning trade as it has received final approval from USFDA for Calcipotriene Topical Solution.

The company has received final approval for its Calcipotriene Topical Solution, 0.005% (Scalp Solution) from the United States Food and Drug Administration (USFDA) to market a generic version of Dovonex Scalp Solution, 0.005% of Leo Pharmaceutical Products.

Company’s Calcipotriene Topical Solution, 0.005% (Scalp Solution) is the AT rated generic equivalent of Leo Pharmaceutical Products’ Dovonex Scalp Solution, 0.005%.

It is indicated for the topical treatment of chronic, moderately severe psoriasis of the scalp.

9:32 am Sebi on rating agencies: Markets regulator Sebi said cross-holding in credit rating agencies (CRAs) will be capped at 10 percent and also decided to raise the minimum networth requirement to Rs 25 crore from the current Rs 5 crore.

Also, the board of Sebi has approved a slew of measures for tightening the financial and operational eligibility of the promoters of CRAs, besides greater disclosure requirements for them.

The moves are likely to have an impact on global rating agencies like S&P, Moody’s and Fitch which have significant holdings in domestic agencies besides their direct presence.

9:21 am Buzzing: Shares of Tata Global Beverage has touched 52-week high of Rs 309, gaining 1 percent in the early trade on Friday as it has sold stake in its associate company.

The company through a share sale and purchase agreement has divested 31.85 percent stake (1,20,78,406 shares) in the joint venture company Estate Management Services (EMSPL) for a consideration of Rs 120 crore.

Consequently, EMSPL has ceased to become an associate of the company effective December 28, 2017.

This is a part of company’s overall strategy to focus on branded business in key geographies.

 

 

9:15 am Market Check: Equity benchmarks started off the January series on a strong note as the Nifty reclaimed 10,500 level, backed by positive Asian cues.

The 30-share BSE Sensex was up 94.26 points at 33,942.29 and the 50-share NSE Nifty rose 26.30 points to 10,504.20.

Tata Steel, Vedanta, Bosch, UPL, Eicher Motors, Hero MotoCorp and SBI were early gainers while HDFC Bank, ICICI Bank and Kotak Mahindra Bank were under pressure.

Nifty Midcap was up 0.6 percent.

Reliance Communications surged 28 percent on sealing wireless assets deal with Reliance Jio.

Monnet Ispat, Jaiprakash Power and JP Associates rallied 5-13 percent.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd

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.