Closing bell: Sensex gains 209 pts, Nifty ends above 10,500 on last day of 2017
3:30 pm Market Closing: Equity benchmarks ended the last day of the year on a strong note as the Sensex was up 208.80 points at 34,056.83 and the Nifty rallied 52.80 points to 10,530.70.
About 1,566 shares advanced against 1,204 declining shares on the BSE.
3:22 pm Bond Yields: The 10-year government bond (6.79% 2027) yield fell sharply by 1.58 percent or 11 basis points to 7.279 percent, from previous close.
The fall was after the Reserve Bank of India has cancelled sale of 2 bonds scheduled today.
3:15 pm Sugar Trade: Sugar prices tumbled Rs 45 per quintal in the wholesale market today.
Marketmen said huge stocks position on steady flow of arrivals from mills along with limited offtake by stockists and bulk consumers due to approaching month-end led to the fall in prices.
Sugar ready M-30 and S-30 prices dropped by Rs 20 each to Rs 3,430-3,630 and Rs 3,420-3,620 per quintal.
3:01 pm Europe Trade: European shares were flat as investors wave goodbye to 2017 and look ahead to what the New Year will bring for markets.
On the bourses front, the UK’s FTSE 100, the French CAC and German DAX were mixed.
2:56 pm Market Update: Equity benchmarks continued to trade higher, with the Sensex rising 181.11 points to 34,029.14 and the Nifty gaining 43.10 points at 10,521.
About 1,484 shares advanced against 1,138 declining shares on the BSE.
IOC, Vedanta, GAIL, ICICI Bank, BPCL, HDFC Bank and Hindalco Industries were losers.
2:40 pm Risks for Markets in 2018: SMC Research said going in 2018, the first risk coming from the global arena would be the major central bankers would be on course to trim their balance sheet and also they would hike interest rates given the firmness in growth they are experiencing.
While major central banks are calibrating their moves in such a manner that there should not be any disruption in financial markets but all of this can mean trouble for emerging markets in the sense that there would be liquidity constraint and also may see withdrawal from bond markets.
The other risks would be sustenance of high oil prices and additional spending by government ahead of 2019 elections thereby leading to challenge for fiscal deficit and continuation of neutral stance by the Reserve bank of India in response to commitment to keep inflation close to 4 percent.
2:20 pm Gold Trade: Gold prices softened by Rs 25 to Rs 30,225 per ten grams today, halting its five-day long winning run, owing to slackened demand from local jewellers at prevailing levels even as the metal strengthened overseas.
However, silver rose further by Rs 200 to Rs 39,700 per kg due to increased offtake by industrial units and coin makers.
Traders said easing demand from local jewellers and retailers at the spot market mainly led to a decline in gold prices but a firm trend overseas squeezed the slide.
Here are the top headlines at 2 pm from Moneycontrol News’ Anchal Pathak
2:00 pm Market Outlook: SMC Research said 2018 is expected to be another good year — with the results of all policy initiatives taken in the last 2 years beginning to take shape.
The government is expected to outline a roadmap on NPA resolution and frame a better outlook going forward with PSU banks. The clean-up and recapitalization of public sector banks (PSU) and its positive impact on overall earnings growth is expected to be the major drivers of the stogck market in 2018.
On the economy front, after 7.1 percent growth in 2016 and a projected 6.7 percent uptick in 2017, the Indian economy is expected to grow 7.4 percent next year with government policies shifting towards the stress-ridden rural landscape.
Modi government has enacted Goods and Services Tax (GST), a demonetisation plan, a new bankruptcy law, an inflation-targeting framework for its central bank, a Real Estate Regulation Act and many more in the last two years, and there is an expectation that government would try to give shape to these initiatives.
The upcoming Budget is expected to be focused on farmers, creating jobs and infrastructure while making all attempts to follow a fiscal prudence path. A long Term investors should remain invested.
1:45 pm Spending on road sector: The government tabled the specific relief amendment bill in parliament. The amendments in the bill, if approved will make it easier to enforce infrastructure contracts. That’s not all, the amendments also provide for specific relief to select categories of infrastructure projects.
In an interview to CNBC-TV18, Deepak Kumar, Chairman of National Highways Authority of India (NHAI) said the intent of special relief bill is to accelerate highway programme.
“Till December the expenditure is Rs 55,000 crore which is much ahead of last year, what we have achieved till now. Last year it was around Rs 35,000 crore, so Rs 20,000 crore jump and the funding from the lender institutions have also increased,” he said.
He further said that till December more than 50 projects under hybrid annuity model (HAM) achieved financial closer.
Kumar said that 7,000 km road projects have been tendered till December. The target is to spend Rs 90,000 crore on road sector in FY18.
He also mentioned that NHAI aims to complete 3,500 km this year; have done 1,600-1,700 km till now.
1:30 pm Market Update: Benchmark indices continued to trade higher on the first day of January series, with the Nifty holding 10,500 level.
The 30-share BSE Sensex was up 176.33 points at 34,024.36 and the 50-share NSE Nifty gained 37.10 points at 10,515.
About three shares advanced against two shares declining on the BSE.
TCS, Tata Motors, Bharti Infratel, Axis Bank, Maruti Suzuki, HCL Technologies, Asian Paints and Adani Ports were biggest gainers among Nifty 50 stocks, up 1-2 percent.
1:10 pm Govt’s additional borrowing: The additional borrowing of Rs 50,000 crore by the Centre is a “negative surprise” that will sustain higher yields and delay lending rate cuts, key for economic growth recovery, says a report.
“We thought that the government’s decision to borrow another Rs 500 billion/0.3 per cent of GDP was an avoidable negative surprise in an already nervous G-sec market,” Bank of America Merrill Lynch said in a research note.
It further said notwithstanding bank recapitalisation, the sell off in G-secs is delaying lending rate cuts and pushing back recovery.
The government on December 27 said it has decided to make additional borrowing of Rs 50,000 crore this fiscal through dated securities. Dated securities have maturity of over five years.
12:56 pm Drug Approval: Biosimilar Trastuzumab, co-developed by Biocon and Mylan, has been approved by ANVISA, the Brazilian regulatory agency, through their partner Libbs Farmaceutica, a leading Brazilian pharmaceutical company, Biocon said in its filing.
The drug is indicated for the treatment of overexpressing HER2-positive metastatic breast cancer, early stage breast cancer and advanced gastric cancer.
The drug will be commercialised under the brand name Zedora in Brazil.
12:36 pm Tax Collection: Finance minister Arun Jaitley in Lok Sabha said the direct tax collection stood at Rs 6.48 lakh crore upto December 18, which is below the Budget estimates of Rs 9.8 lakh crore.
Indirect tax collection (excluding GST collection) was at Rs 3.66 crore and the same including GST collection at Rs 7.3 lakh crore, which is below the Budget estimates of Rs 9.27 lakh crore.
12:26 pm Labour Reforms: General elections being just over one year away notwithstanding, the government is not looking at slowing down on labour reforms in 2018 and is likely to get at least two codes on wages as well as industrial relations passed by Parliament.
The Ministry of Labour and Employment has envisaged to concise over 44 labour laws into four broad codes in wages, industrial relations, social security, and occupational safety, health and working conditions.
Labour Secretary M Sathiyavathy expressed the ministry’s intent to push all four codes for passage in Parliament next year.
“Government is not going slow on labour reforms. All four codes would be pushed in 2018,” she said.
12:15 pm Debt Repayment: Firstsource Solutions informed exchanges that Firstsource Group USA, Inc, a wholly owned subsidiary of the company has successfully made its eleventh quarterly repayment of USD 11.25 million on its outstanding debt on 29th December 2017.
12:05 pm Drug Approval: Zydus Pharmaceuticals (USA) Inc, a wholly owned subsidiary of Cadila Healthcare, has received the final approval from the US Food and Drug Administration (USFDA) to market Clomipramine Hydrochloride capsules USP.
These capsules will be available in strengths of 25 mg, 50 mg and 75 mg.
The drug is used to treat obsessive compulsive disorder which is characterised by uncontrollable, re-occurring thoughts (obsessions) and behaviours (compulsions).
It will be manufactured at group’s formulations manufacturing facility at SEZ, Ahmedabad.
The Group now has more than 180 approvals and has so far filed over 310 ANDAs since the commencement of filing process in FY04.
Here are the top headlines at 12 pm from Moneycontrol News’ Anchal Pathak
11:47 am Aluminium Trade: Aluminium prices eased 0.79 percent to Rs 144.25 per kg in futures trading today as speculators reduced exposure amid muted demand in the spot market.
At the Multi Commodity Exchange, aluminium for delivery in December fell Rs 1.15, or 0.79 percent, to Rs 144.25 per kg in 994 lots.
Likewise, the metal for delivery in January contracts declined Rs 1.10, or 0.76 percent, to Rs 144.50 per kg in 915 lots.
Analysts said offloading of positions by participants owing to weak demand from consuming industries in the physical market led to fall in prices in futures trade.
11:40 am Market Update: Benchmark indices extended gains in late morning deals, with the Sensex rising 174.60 points to 34,022.63, backed by auto, PSU banks and technology stocks.
The 50-share NSE Nifty gained 46.40 points at 10,524.30.
The broader markets also traded in line with frontline indices. About two shares advanced for every share falling on the BSE.
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.