Market Live: Nifty hovers around 10,700; rupee recovers sharply on govt borrowing

10:20 am Market Update: Benchmark indices extended gains in morning, with the Sensex rising 102.33 points to 34,873.38 and the Nifty trading 22.70 points higher at 10,723.20.

The broader markets recovered from day’s lows but still trading lower. The Nifty Midcap was down half a percent as about three shares declined for every share rising.

10:13 am Rupee trade: The rupee recovered sharply in morning after the government reduced its requirement of additional borrowing.

It strengthened by 10 paise to 63.92 against the US dollar in morning.

Yesterday, the rupee had lost 55 paise or nearly 1 percent — its biggest single-day crash in eight months — to end at a fresh two-week low of 64.04 against the US dollar, hit by a double whammy of rising global crude prices and worsening trade deficit.

10:00 am Buzzing: Gravita India shares rallied more than 3 percent in morning after bagging order from the European Schneider Group company.

The recycling company has received orders worth Rs 250 crore from Luminous Power Technologies Private Limited.

“This order will help company to strengthen its topline and bottomline in coming FY19 and the said order will be executed during 2018,” the company said.

Luminous Power Technologies Private Limited is a part of European Schneider Group.

9:52 am Market Update: Benchmark indices recovered from day’s low to trade in a tight range on the higher side. The rupee also rebounded sharply following reduction in government borrowing.

The 30-share BSE Sensex was up 53.93 points at 34,824.98 and the 50-share NSE Nifty rose 5.30 points to 10,705.80.

9:45 am Govt Borrowing: Government has reassessed additional borrowing requirements taking note of revenue receipts and expenditure pattern. Requirement of additional borrowing being reduced from Rs 50,000 crore as notified earlier to Rs 20,000 crore.

“The move is a big positive surprise. We were mindful of the indirect tax collection falling short of expectations. In that context, this is a big surprise. It also means that a shortfall in indirect taxes is being made up (for). All in all, this is a positive surprise, which is getting reflected in the market,” Manishi Raychaudhuri, Asian Equity Strategist, Equity Cash Asia Pacific, BNP Paribas told CNBC-TV18 in an interview.

9:40 am Buzzing: Shares of Multi Commodity Exchange of India (MCX India) slipped further today, hitting 52-week low of Rs 845.70 on the back of poor December quarter numbers.

The company’s Q3 (Oct-Dec) net profit was down 45 percent to Rs 18.7 crore against net profit of Rs 34.04 crore in the same quarter last year. The consolidated revenue declined 11.1 percent to Rs 60.9 crore from Rs 68.6 crore in Q3FY17.

Operating profit (EBITDA) was down 35.30 percent to Rs 29.07 crore and EBITDA margin was at 37.99 percent.

9:36 am Acquisition: Ipca Laboratories shares rallied nearly 4 percent in morning on acquisition of US-based pharmaceutical company.

“….announce the acquisition of 100 percent share capital of Pisgah Labs Inc, a North Carolina Corporation, USA by subsidiaries Ipca Pharmaceutical Inc, USA and Onyx Scientific, UK,” the company said in its filing.

Ipca has acquired Pisgah for USD 9.65 million free of debt.

9:28 am IPO opens: Amber Enterprises, which raised Rs 179 crore from anchor investors yesterday, has opened its initial public offering for subscription.

Among the anchor investors are Abu Dhabi Investment Authority – Behave, Blackrock India Equities Mauritius, Goldman Sachs India and Kuwait Investment Authority Fund 225.

The Gurugram-based Amber Enterprises manufactures air- conditioners. Besides, it makes refrigerator components, water purifiers and washing machines.

The public issue will close on January 19. The price band has been fixed at Rs 855-859 per share.

The IPO is aiming to raise Rs 600 crore. This includes fresh issue of shares worth up to Rs 475 crore and sale of scrips to the tune of Rs 125 crore by promoters Jasbir Singh and Daljit Singh.

9:21 am Order Win: India’s largest IT services firm Tata Consultancy Services (TCS) said it has signed an over GBP 500 million (USD 690 million) deal with M&G Prudential, the UK and European savings and investments business of Prudential plc.

Under the contract, TCS will digitally transform M&G Prudential’s business and deliver enhanced service for its UK savings and retirement customers, TCS said in a statement.

“The value of this agreement exceeds GBP 500 million (USD 690 million) over 10 years and covers the support of over 4 million customer policies,” it added.

TCS has over the last few weeks announced a slew of large client wins including American insurer Transamerica (over USD 2 billion), television rating measurement firm Nielsen and British retailer Marks & Spencer.

9:15 am Market Check: Benchmark indices opened mildly higher on Wednesday, with the Nifty reclaiming 10,700 level, driven by technology stocks.

The 30-share BSE Sensex was up 83.21 points at 34,854.26 and the 50-share NSE Nifty gained 19.80 points at 10,720.30.

GAIL, Sun Pharma, TCS, ICICI Bank, Adani Ports, Infosys, HUL and BPCL were early gainers while IndusInd Bank, Ambuja Cements, Bharti Infratel and Bharti Airtel were early losers.

Uttam Galva, HCC and Agro Tech Foods fell more than 2 percent.

Gati, Symphony, Delta Corp, Dish TV and HDIL gained 1-2 percent.