Moneycontrol
Apr 19, 2017 03:38 PM IST | Source: Moneycontrol.com

Closing Bell: Sensex ends in green, Nifty closes above 9100; Adani Ports, BHEL gain

The Sensex was up 17.47 points at 29336.57, while the Nifty was down 1.65 points at 9103.50.

Closing Bell: Sensex ends in green, Nifty closes above 9100; Adani Ports, BHEL gain
Moneycontrol News

3:30 Market at Close: Equity benchmarks ended the day on a positive note, after having a subdued session through the day. The midcap index was within a percent of lifetime high.

The Sensex was up 17.47 points at 29336.57, while the Nifty was down 1.65 points at 9103.50. The market breadth was positive, but narrow, as 1,615 shares advanced against a decline of 1,223 shares, while 181 shares are unchanged.

Adani Ports, BHEL, Power Grid and Bharti Infratel were the top gainers on both indices, while State Bank of India (SBI), Hero MotoCorp and Aurobindo Pharma lost the most.

3:03 pm Banks fall: Share prices of country's largest lenders SBI and ICICI Bank fell 1-2 percent after IndusInd Bank missed estimates on profit front and ahead of Yes Bank earnings later today.

2:50 pm Coal supply to power sector: The supply of coal by state-owned Coal India to power sector increased by 1.3 per cent to 420.2 million tonnes (MT) in 2016-17.

The increase in supply comes at a time when demand of coal by the power sector has picked up on back of economy doing well.

Coal India Ltd (CIL) which accounts for over 80 per cent of the domestic coal production had dispatched 414.7 MT of fuel in FY 2015-16, according to latest government data.

However, in March, the dispatch of coal by CIL declined by around seven per cent to 34.6 MT from 37.1 MT in March 2016, the data said.

2:35 pm Commercial Crime Insurance: For companies which have been hit hard by fraud perpetrated by its employees in cahoots with outsiders, there is good news.

Commercial crime insurance is being discussed as an insurance cover that could be sold to large institutions which are at a higher risk of fraud by employees. Unlike a fidelity insurance cover where the company gets covered against any dishonest act or fraud committed by an employee, this covers crimes committed in connivance with external parties.

This policy hopes to redress companies which run up liabilities or losses arising out of any court cases to counter fraudsters. Typical, this policy will come into play in a case where a customer's personal details are illegal shared by an employee with an outsider, who uses them for financial gains or to hack into his account.

2:15 pm Market Check: Equity benchmarks were trading almost flat, with a hint of a negative bias as the market looked for cues from key earnings of IndusInd Bank and Yes Bank.

The Sensex was down 21.68 points at 29297.42, while the Nifty was down 14.85 points at 9090.30. The market breadth was very narrow with 1,386 shares advancing against a decline of 1,358 shares, while 172 shares were unchanged.

State Bank of India, TCS, and Aurobindo Pharma were top losers, while NTPC, Adani Ports, Power Grid and Bharti Infratel gained the most.

Private sector lender IndusInd Bank has reported profit at Rs 751.6 crore and net interest income at Rs 1,667.4 crore for the quarter ended March 2017.

Profit was estimated at Rs 783.5 crore and net interest income at Rs 1,655.7 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

1:45 pm Buzzing Stock: Bharti Infratel added over 2 percent intraday on Wednesday as investors palced positive bets on two major investors buying stake in the firm.

According to reports on CNBC-TV19, KKR and Canadian Pension Board were in talks to hike stake in Bharti Infratel in the next few months. Both the entities may buy an additional 11.3 percent stake in the firm.

1:31 pm FII View: Neelkanth Mishra of Credit Suisse says MSCI India's 13 percent P/E premium to MSCI World is below the recent peaks of 20 percent. However, worryingly, compared to emerging markets and World, MSCI India's performance is disproportionately driven by P/E changes and currency and less by rise in forward EPS, he adds.

Preferred sectors metals, IT, industrials, utilities and energy have lagged in P/E increase but have all seen increases in forward EPS, which should drive sustained outperformance going forward, he feels.

He continued to like mortgage providers and some select private sector banks.

1:10 pm Market Check: Benchmark indices continued to be directionless in afternoon trade as investors digested IT companies earnings and awaited banks earnings due later today.

The 30-share BSE Sensex was down 31.94 points at 29,287.16 and the 50-share NSE Nifty fell 13.35 points to 9,091.80 while the broader markets gained 0.3 percent on positive breadth.

NTPC, BHEL, Adani Ports, Coal India, GAIL, Power Grid, Bharti Infratel and Tata Power were top gainers in afternoon while TCS, Infosys, Bharti Airtel, Bajaj Auto, Tata Steel, Aurobindo Pharma, Kotak Mahindra Bank and Tech Mahindra were losers.

Also readSin and bear it: Why preventing the ITC stake sale is a bad idea

12:45 pm MF's shareholding in D-Mart: Avenues Supermarts, the parent of retailer D-Mart, which saw huge interest from retail investors became one of the top stocks which was added by almost 15 Asset Management Companies in their portfolio in the month of March with a market value of Rs 1000 crore.

HDFC Asset Management Company picked up 88 lakh shares amounting to over Rs500 crore, followed by ICICI Prudential Asset Management Company which bought 33 lakh shares amounting to Rs 212 crore, according to data compiled by IDBI Capital.

Avenue Supermart Ltd (ASL) which is known for running D-Mart supermarket chains is known as the most profitable store in India. ASL has a successful business model of Greenfield stores where the land is purchased by the company where they construct their own stores.

12:25 pm MOSt on Coal India: Motilal Oswal has upgraded Coal India, the country's largest coal mining company, to buy with increased target price at Rs 335 (implying 20 percent upside).

The potential upside in stock price is in addition to around 6 percent dividend yield and is very attractive compared to its cost of equity.

Despite reducing volume estimates by 24 million tonne, the brokerage house expects 6.7 percent CAGR in volumes, 21 percent CAGR in adjusted EBITDA and 15 percent CAGR in EPS over two years on operating leverage and upgraded in e-auction prices while keeping fuel supply agreement (FSA) prices unchanged.

Coal India deserves a premium over other metal and mining stocks due to its dominant position in the Indian markets and its current coal pricing being very competitive, which has virtually no downside risk, the research firm feels.

12.05 pm Market Check: Benchmark indices remained listless in noon ahead of IndusInd Bank and Yes Bank's March quarter earnings due later today. However, the broader markets outperformed, with the Nifty Midcap and Smallcap indices rising half a percent each.

The 30-share BSE Sensex was down 19.50 points at 29,299.60 and the 50-share NSE Nifty slipped 8.20 points to 9,096.95.

The market breadth turned positive as about 1359 shares advanced against 1158 declining shares on the BSE.

Technology, banks and FMCG stocks were under pressure while select infra and auto stocks gained.

11:50 am Nod to drug: Glenmark Pharmaceuticals has received tentative nod from the US health regulator for anti-coagulant medication Dabigatran Etexilate capsules.

"Glenmark Pharmaceuticals Inc, USA has been granted tentative approval by the United States Food & Drug Administration (USFDA) for Dabigatran Etexilate Capsules, 75 mg, 110 mg and 150 mg," Glenmark Pharmaceuticals said in a BSE filing.

The product is the generic version of Pradaxa capsules, 75 mg, 110 mg and 150 mg of Boehringer Ingelheim Pharmaceuticals, Inc, it added.

11:30 am Management Speak: In an interview to CNBC-TV18, P Balasubramanian, Director-Finance at Bharat Petroleum Corporation Ltd (BPCL) spoke about the latest happenings in his company and sector.

We will review closure of petrol pumps on Sundays after a few days, he said. Also, he does not see any hit on profits even if petrol pumps are closed on Sunday.

"Profitability will not be the issue. Issue is the supply chain and distribution part of it", he said.

11:07 am Market Check: Benchmark indices were trading flat, amid volatile moves since morning, as the Nifty hovered around 9100-mark.

The Sensex was up 15.36 points at 29334.46, while the Nifty was up 3.60 points at 9108.75. The market breadth was positive, but narrow, as just 1,312 shares against a decline of 1,002 shares, while 117 shares were unchanged.

NTPC, Adani Ports, Tata Power and Power Grid were the top gainers, while Axis Bank, TCS, Indiabulls Housing Finance lost the most.

RPP Infra Projects was up 2.5 percent intraday Wednesday as it received an order worth Rs 97 crore.

The consortium of Siemens and RPP Infra Projects has won order from Power Grid Company of Bangladesh.

“We have received the order from Power Grid Company of Bangladesh (PGCB). The joint bid submitted by Siemens and RPP Infra Projects to Power Grid Company of Bangladesh (PGCB) in respect of design, supply, erection, testing and commissioning of 230 KV and 132 KV substations on turnkey basis,” company said in press release.

Also Read: Wealth creators! 160 companies in which FIIs raise stake rose up to 70% in Q4FY17

10:58 am FIIs shareholding: The S&P BSE Sensex rose over 11 percent in the January-March quarter but stocks in which foreign institutional investors (FIIs) raised their stake rose up to 70 percent in the same period, data available with Capitaline showed.  
Out of 300 companies which have declared their shareholding pattern for the March quarter, more than 160 companies saw a surge in FIIs holding in the same period while more than 150 stocks saw a decline in the holding of FIIs.
 
FIIs increased their stake across sectors such as banking, finance, textiles, cement, auto, FMCG, NBFC as well as pharma space. 

10:49 am Buzzing: RPP Infra Projects shares gained 2.5 percent intraday as it has received order worth Rs 97 crore.

The consortium of Siemens and RPP Infra Projects has won order from Power Grid Company of Bangladesh.

“We have received the order from Power Grid Company of Bangladesh (PGCB). The joint bid submitted by Siemens and RPP Infra Projects to Power Grid Company of Bangladesh (PGCB) in respect of design, supply, erection, testing and commissioning of 230 KV and 132 KV substations on turnkey basis,” company said in press release.

The scope of the order for RPP Infra Projects will be in the civil work with the share worth approximately Rs 97 crore.

10:40 am Babri Masjid case: Supreme Court has allowed trial for LK Advani, Uma Bharti and Murli Manohar Joshi in Babri Masjid case. However, there is no trial for Kalyan Singh as he enjoys immunity.

LK Advani and Murli Manohar Joshi will face conspiracy charges, according to media reports.

10:25 am Earnings Estimates: Private sector lender Yes Bank is expected to report healthy set of earnings in the quarter ended March 2017. Profit is seen rising 27.7 percent year-on-year to Rs 896.3 crore during the quarter.

Net interest income, the difference between interest earned and interest expended, may grow 28.6 percent to Rs 1,596.4 crore compared with Rs 1,241.4 crore in same quarter last fiscal, according to average of estimates of analysts polled by CNBC-TV18.

10.04 am Market Check: Equity benchmarks as well as broader markets continued to be volatile in morning as investors maintained cautious stance after muted start to earnings season and amid geopolitical tensions between US and North Korea.

The 30-share BSE Sensex was down 18.32 points at 29,300.78 and the 50-share NSE Nifty slipped 8.85 points to 9,096.30.

Yes Bank and IndusInd Bank remained flat ahead of quarterly earnings later today. According to a CNBC-TV18 poll, both banks are expected to report more than 25 percent growth in net profit and net interest income.

TCS share price recovered from day's low after the management sees less impact of H1-B visa on FY18 earnings.

9:55 am OFS issue opens: National Aluminium Company share price fell 7 percent intraday as the 19.3 crore shares offer for sale issue of the company opened today.

"The promoter of the company, President of India (represented by the Ministry of Mines, Government of India), proposed to sell up to 9,66,46,444 (5 percent) equity shares with an additional option to sell up to 9,66,46,444 (5 percent) equity shares through a separate window of the BSE and the National Stock Exchange of India," the company said in its filing on Tuesday.

The issue will be opened for two days (April 19 and 20) for non-retail investors while retail investors can participate in the issue on April 20 only.

9:45 am Trump on H1-B visa: US President Donald Trump has signed an executive order that calls for a review of the H-1B visa programme, saying they should never be used to replace American workers and be must given to the most skilled and highest paid applicants.

Trump signed the order targeting the programme popular with Indian technology professionals at the Kenosha, Wisconsin headquarters of tool maker Snap-on Inc yesterday.

"Right now, widespread abuse in our immigration system is allowing American workers of all backgrounds to be replaced by workers brought in from other countries to fill the same job for, sometimes, less pay. This will stop," Trump told an enthusiastic audience in Wisconsin before signing the executive order.

9:30 am FII View: Commodity prices saw a rebound especially after improvement seen in the global economy, but as long as oil holds in the range of USD 45-55 per barrel any dip in the emerging market equities will be a good opportunity to buy, Geoff Lewis, Global Strategist-Capital Markets Group, Manulife Asset Management said in an interview with CNBC-TV18.
“We saw in rebound in iron ore prices which was far sharper than fundamentals. I think as long as oil holds between USD 45-55 per barrel and economic data continue to be good in global economies emerging markets (EMs) will be a good buying opportunity on dips,” said Lewis.

9:15 am Market Check: Equity benchmarks started off trade on a negative note amid consolidation, tracking weakness in global peers as investors remained cautious about earnings season after IT companies' results.

The 30-share BSE Sensex was down 29.51 points at 29,289.59 and the 50-share NSE Nifty fell 7.35 points to 9,097.80.

TCS fell 1.5 percent following lower-than-expected earnings due to weakness in BFSI & retail segments and North America & Latin America businesses.

HDFC, Tata Motors, ONGC, Tata Steel and Axis Bank were other losers while Reliance Industries, ITC, Adani Ports and Sun Pharma were gainers.

The Indian rupee opened marginally higher at 64.60 per dollar today against previous day's closing value of 64.63.

Pramit Brahmbhatt of Veracity says rupee has been weakening and may depreciate to 64.80/dollar.

Trading range for the day will be 64.50-64.80/dollar, he adds.

The dollar index fell near a three-week low on disappointing US housing starts data and nervousness over trade talks between the United States and Japan. While Britain's pound soared after Prime Minister Theresa may called for a snap general election.

Asia markets declined today, tracking Wall Street's negative close overnight, with resources and financial shares losing ground. Investors also remained vigilant amid US-North Korea tensions and the nearing of the French presidential election.
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