Key indices register modest gains
Trading for the week began on positive note with key benchmark indices registering modest gains after the latest data showed a sharp surge in industrial production in October 2015. The barometer index, the S&P BSE Sensex, rose 105.92 points or 0.42% to settle at 25,150.35. The gains for the 50-unit Nifty 50 index were higher in percentage terms compared with those for the Sensex. The Nifty rose 39.60 points or 0.52% to settle at 7,650.05. The Sensex and the Nifty witnessed intraday volatility. Both these key benchmark indices bounced back after hitting their lowest level in almost 14 weeks in early trade. The Sensex settled above the psychological 25,000 mark. The barometer index alternately moved above and below that mark in intraday trade after opening with a downward gap below the psychologically important level.
Cement stocks rose after the Competition Appellate Tribunal (COMPAT) on Friday, 11 December 2015, quashed the penalty of Rs 6316 crore imposed on 11 cement firms by the Competition Commission of India (CCI) on charges of cartelisation and other unfair trade practices. Steel stocks edged higher after the government reportedly imposed anti-dumping duty on some stainless steel products. Auto stocks witnessed a mixed trend after the National Green Tribunal said in an order issued on Friday, 11 December 2015, that new diesel vehicles will not be registered in NCT, Delhi and that there will be no renewal of registration of diesel vehicles that are more than 10 year old in the capital city.
Index heavyweight and IT major Infosys edged higher after the company said that it has made an investment of $3 million in WHOOP Inc., an early stage company in the US offering a performance optimization system for elite professional sports teams.
The Sensex rose 105.92 points or 0.42% to settle at 25,150.35, its highest closing level since 10 December 2015. The index rose 149.72 points or 0.59% at the day's high of 25,194.15. The index fell 176.70 points or 0.7% at the day's low of 24,867.73.
The Nifty rose 39.60 points or 0.52% to settle at 7,650.05, its highest closing level since 10 December 2015. The index rose 53.50 points or 0.7% at the day's high of 7,663.95. The index fell 59.40 points or 0.78% at the day's low of 7,551.05.
The BSE Mid-Cap index rose 0.66%, outperforming the Sensex. The BSE Small-Cap index rose 0.4%, underperforming the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,490 shares rose and 1,148 shares fell. A total of 217 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Basic Materials index (up 1.59%), BSE Consumer Discretionary Goods & Services (up 0.74%), BSE Healthcare index (up 0.71%), BSE IT index (up 0.83%), BSE Telecom index (up 0.51%), BSE Metal index (up 2.4%) and BSE Teck index (up 0.79%) outperformed the Sensex. The S&P BSE FMCG index (up 0.35%), BSE Auto index (up 0.4%), BSE Bankex index (down 0.01%), BSE Capital Goods index (down 0.15%), BSE Oil & Gas index (down 0.14%), BSE Power index (up 0.35%) and BSE Realty index (down 0.19%) underperformed the Sensex.
Stocks of public sector banks edged higher. Bank of Baroda (up 0.97%), Punjab National Bank (up 1.38%), United Bank of India (up 0.7%), IDBI Bank (up 0.42%), Bank of India (up 0.26%), Corporation Bank (up 0.37%), Indian Overseas Bank (up 0.49%), Central Bank of India (up 0.22%) and Canara Bank (up 0.48%) edged higher. Indian Bank (down 2.44%), Union Bank of India (down 1.09%), State Bank of India (down 0.26%) and Syndicate Bank (down 0.47%) edged lower.
Private sector banks witnessed a mixed trend. Kotak Mahindra Bank (up 0.94%), HDFC Bank (up 0.9%) and Yes Bank (up 0.21%) edged higher. Axis Bank (down 2.02%), IndusInd Bank (down 0.56%) and ICICI Bank (down 0.16%) edged lower.
Steel stocks edged higher after the government reportedly imposed anti-dumping duty on some stainless steel products. Jindal Stainless (up 11.69%), JSW Steel (up 5.52%), Jindal Steel & Power (up 4.78%), Tata Steel (up 1.72%) and Steel Authority of India (Sail) (up 1.44%), edged higher. As per reports, the government on Friday, 11 December 2015, imposed anti-dumping duty of up to 57.39% on import of certain stainless steel products from China, Korea, the US and European Union (EU) for five years to save the domestic industry from cheap shipments.
Shares of aluminium major Hindalco Industries rose 3.01% at Rs 78.60. The stock hit a high of Rs 78.90 and a low of Rs 75.80 in intraday trade.
Shares of state-run coal mining giant Coal India rose 2.62% at Rs 315.70. The stock hit a high of Rs 317.35 and a low of Rs 305.50 in intraday trade.
Cement stocks rose after the Competition Appellate Tribunal (COMPAT) on Friday, 11 December 2015, quashed the penalty of Rs 6316 crore imposed on 11 cement firms by the Competition Commission of India (CCI) on charges of cartelisation and other unfair trade practices. ACC (up 1.92%), Ambuja Cements (up 2.33%) and UltraTech Cement (up 2.24%) edged higher.
Grasim Industries rose 1.21%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
COMPAT also directed the CCI to refund the 10% of the penalty amount the companies had to deposit with the fair trade regulator. The judgement follows appeals filed by the cement firms and the industry body Cement Manufacturers Association. The companies include ACC, Ambuja Cements, Binani Cements, Century Textiles, India Cements, JK Cements, Lafarge India, Madras Cements, UltraTech Cement and Jaiprakash Associates. The commission had passed the order after an investigation into complaints from the Builders Association of India against alleged price cartelisation among cement firms. ACC will be refunded Rs 114.75 crore, Ambuja Cements Rs 116.39 crore and UltraTech Cement will be refunded Rs 117.54 crore.
Meanwhile, the tribunal has directed CCI to hear the case again and pass a fresh order within three months.
Auto stocks were mixed. Tata Motors (down 1.65%), Eicher Motors (down 1.26%) and Ashok Leyland (down 0.41%) edged lower. Mahindra & Mahindra (up 1.96%) and Maruti Suzuki (India) (up 1.97%) edged higher.
The National Green Tribunal said in an order issued on Friday, 11 December 2015, that new diesel vehicles will not be registered in NCT, Delhi and that there will be no renewal of registration of diesel vehicles that are more than 10 year old in the capital city. The tribunal's order is an interim measure to curb alarming pollution levels in Delhi. It also directed all the public authorities in NCT, Delhi to prepare an action plan for phasing out of diesel vehicles, particularly the trucks, being used by them.
Among two-wheeler makers, TVS Motor Company (up 0.49%) and Hero MotoCorp (up 0.66%) edged higher. Bajaj Auto (down 0.16%) edged lower.
Index heavyweight Reliance Industries rose 0.34% at Rs 955.45. The stock hit a high of Rs 962.70 and a low of Rs 946.50 in intraday trade.
Adani Ports and Special Economic Zone rose 5.6% at Rs 254.60. The stock hit a high of Rs 255.60 and a low of Rs 239.65 in intraday trade.
TCS dropped 0.41% at Rs 2,377.45 after the company said in its update regarding its operations in Chennai that recent severe flooding in the city led to major disruptions in its ability to function. The normal business functioning of company's facilities had to be halted in the city all week since 1 December 2015 due to flooding. This is expected to have a material impact on the company's revenue in the seasonally weak Q3 December 2015, it added. The company made the announcement after market hours on Friday, 11 December 2015. Chennai is one of the company's largest delivery function with over 65,000 employees. The majority of facilities in Chennai opened for normal business functioning on 7 December 2015, but attendance rates were lower than normal as employees were still recovering from the flood's aftermath.
Infosys rose 1.63% at Rs 1,069.50 after the company said that it has made an investment of $3 million in WHOOP Inc., an early stage company in the US offering a performance optimization system for elite professional sports teams. The stock hit a high of Rs 1,073.30 and a low of Rs 1,049 so far during the day. Infosys said that the investment in WHOOP Inc. will be completed by 16 December 2015. Infosys will have a minority holding in WHOOP, not exceeding 20% of its outstanding share capital. WHOOP's system includes a device worn by athletes on their wrist that continuously measures key strain and recovery variables, and actionable analytics powered by proprietary algorithms that generate intensity and recovery scores. This enables athletes and coaches to gain visibility into the drivers of high performance, guide training and make optimal game day decisions.
NTPC rose 0.04% after the company announced that it has raised Rs 500 crore through private placement of secured non-convertible debentures on 10 December 2015.. The stock was volatile. The stock hit a high of Rs 133.40 and a low of Rs 131.70 in intraday trade. The debentures carry a coupon rate of 8.19% with a 10 year door to door maturity. NTPC said that the proceeds will be mainly utilized to finance capital expenditure of the company. The announcement was made after market hours on Friday, 11 December 2015.
Tata Power Company (Tata Power) fell 0.4% at Rs 61.65. The stock hit a high of Rs 62.50 and a low of Rs 61.40 in intraday trade. Tata Power announced during trading hours today, 14 December 2015, that the company has identified four geographies viz. Africa, South East Asia, the Middle East and SAARC (India Region) to further expand its presence and strengthen its portfolio globally. Commenting on its international presence, Anil Sardana, CEO & Managing Director, Tata Power said that the company's resources allocation strategy is to invest in these four regions and in specific projects where all the clearances are in place and it is able to mitigate risks to achieve the threshold returns. In addition, Tata Power continues to evaluate various opportunities for providing management and technical advisory services in distribution business including possible partnerships in the shortlisted geographies of interest, he added.
The Sensex has declined 995.32 points or 3.8% in this month so far (till 14 December 2015). The Sensex has fallen 2,349.07 points or 8.54% in this calendar year so far (till 14 December 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 316.81 points or 1.27%. The Sensex is off 4,874.39 points or 16.23% from a record high of 30,024.74 hit on 4 March 2015.
On the macro front, the latest data showed that India's Index of Industrial Production (IIP) growth surged to 60-months high of 9.8% in October 2015 over a year ago compared with the revised growth of 3.8% in September 2015. An extremely farvourable base effect with IIP declining 2.7% in October 2014 has mainly fuel the IIP growth for October 2015. Also, the festive season shifting to November this year compared with October in last year, aided IIP growth in October 2015 driven by pre-festive season surge in production. The data was announced by the government after market hours on Friday, 11 December 2015.
Data released by the government during trading hours today, 14 December 2015, showed that inflation based on the wholesale price index (WPI) remained in negative zone in November 2015. WPI stood at negative 1.99% in November 2015 compared to a reading of negative 3.81% for October 2015.
In overseas stock markets, European stock markets edged higher in cautious trade as investors look ahead to this week's pivotal US monetary policy meeting. The US Federal Reserve is widely expected to raise the federal funds rate by 25 basis points after the conclusion of a two-day monetary policy meeting on 15-16 December 2015. With markets having already priced in a 25 basis points rate hike in mid-December, the focus has shifted to the likely pace and quantum of rate hikes once this first move is done. Earlier during the global day, Asian equities edged lower amid sharpening worries about the stability of the junk-bond market and tumbling oil prices. Lower commodity prices have stirred up concerns that oil and gas companies won't be able to pay back all their debt.
US stocks tumbled during the previous trading session on Friday, 11 December 2015, as falling prices in crude oil and worries about junk-bond markets rattled Wall Street. News during the previous day on 10 December 2015 that high-yield mutual fund Third Avenue Focused Credit Fund is blocking investors from withdrawing their money, added to market jitters.
Cement stocks rose after the Competition Appellate Tribunal (COMPAT) on Friday, 11 December 2015, quashed the penalty of Rs 6316 crore imposed on 11 cement firms by the Competition Commission of India (CCI) on charges of cartelisation and other unfair trade practices. Steel stocks edged higher after the government reportedly imposed anti-dumping duty on some stainless steel products. Auto stocks witnessed a mixed trend after the National Green Tribunal said in an order issued on Friday, 11 December 2015, that new diesel vehicles will not be registered in NCT, Delhi and that there will be no renewal of registration of diesel vehicles that are more than 10 year old in the capital city.
Index heavyweight and IT major Infosys edged higher after the company said that it has made an investment of $3 million in WHOOP Inc., an early stage company in the US offering a performance optimization system for elite professional sports teams.
The Sensex rose 105.92 points or 0.42% to settle at 25,150.35, its highest closing level since 10 December 2015. The index rose 149.72 points or 0.59% at the day's high of 25,194.15. The index fell 176.70 points or 0.7% at the day's low of 24,867.73.
The Nifty rose 39.60 points or 0.52% to settle at 7,650.05, its highest closing level since 10 December 2015. The index rose 53.50 points or 0.7% at the day's high of 7,663.95. The index fell 59.40 points or 0.78% at the day's low of 7,551.05.
The BSE Mid-Cap index rose 0.66%, outperforming the Sensex. The BSE Small-Cap index rose 0.4%, underperforming the Sensex.
The market breadth indicating the overall health of the market was positive. On BSE, 1,490 shares rose and 1,148 shares fell. A total of 217 shares were unchanged.
Among the sectoral indices on BSE, the S&P BSE Basic Materials index (up 1.59%), BSE Consumer Discretionary Goods & Services (up 0.74%), BSE Healthcare index (up 0.71%), BSE IT index (up 0.83%), BSE Telecom index (up 0.51%), BSE Metal index (up 2.4%) and BSE Teck index (up 0.79%) outperformed the Sensex. The S&P BSE FMCG index (up 0.35%), BSE Auto index (up 0.4%), BSE Bankex index (down 0.01%), BSE Capital Goods index (down 0.15%), BSE Oil & Gas index (down 0.14%), BSE Power index (up 0.35%) and BSE Realty index (down 0.19%) underperformed the Sensex.
Stocks of public sector banks edged higher. Bank of Baroda (up 0.97%), Punjab National Bank (up 1.38%), United Bank of India (up 0.7%), IDBI Bank (up 0.42%), Bank of India (up 0.26%), Corporation Bank (up 0.37%), Indian Overseas Bank (up 0.49%), Central Bank of India (up 0.22%) and Canara Bank (up 0.48%) edged higher. Indian Bank (down 2.44%), Union Bank of India (down 1.09%), State Bank of India (down 0.26%) and Syndicate Bank (down 0.47%) edged lower.
Private sector banks witnessed a mixed trend. Kotak Mahindra Bank (up 0.94%), HDFC Bank (up 0.9%) and Yes Bank (up 0.21%) edged higher. Axis Bank (down 2.02%), IndusInd Bank (down 0.56%) and ICICI Bank (down 0.16%) edged lower.
Steel stocks edged higher after the government reportedly imposed anti-dumping duty on some stainless steel products. Jindal Stainless (up 11.69%), JSW Steel (up 5.52%), Jindal Steel & Power (up 4.78%), Tata Steel (up 1.72%) and Steel Authority of India (Sail) (up 1.44%), edged higher. As per reports, the government on Friday, 11 December 2015, imposed anti-dumping duty of up to 57.39% on import of certain stainless steel products from China, Korea, the US and European Union (EU) for five years to save the domestic industry from cheap shipments.
Shares of aluminium major Hindalco Industries rose 3.01% at Rs 78.60. The stock hit a high of Rs 78.90 and a low of Rs 75.80 in intraday trade.
Shares of state-run coal mining giant Coal India rose 2.62% at Rs 315.70. The stock hit a high of Rs 317.35 and a low of Rs 305.50 in intraday trade.
Cement stocks rose after the Competition Appellate Tribunal (COMPAT) on Friday, 11 December 2015, quashed the penalty of Rs 6316 crore imposed on 11 cement firms by the Competition Commission of India (CCI) on charges of cartelisation and other unfair trade practices. ACC (up 1.92%), Ambuja Cements (up 2.33%) and UltraTech Cement (up 2.24%) edged higher.
Grasim Industries rose 1.21%. Grasim has exposure to cement sector through its holding in UltraTech Cement.
COMPAT also directed the CCI to refund the 10% of the penalty amount the companies had to deposit with the fair trade regulator. The judgement follows appeals filed by the cement firms and the industry body Cement Manufacturers Association. The companies include ACC, Ambuja Cements, Binani Cements, Century Textiles, India Cements, JK Cements, Lafarge India, Madras Cements, UltraTech Cement and Jaiprakash Associates. The commission had passed the order after an investigation into complaints from the Builders Association of India against alleged price cartelisation among cement firms. ACC will be refunded Rs 114.75 crore, Ambuja Cements Rs 116.39 crore and UltraTech Cement will be refunded Rs 117.54 crore.
Meanwhile, the tribunal has directed CCI to hear the case again and pass a fresh order within three months.
Auto stocks were mixed. Tata Motors (down 1.65%), Eicher Motors (down 1.26%) and Ashok Leyland (down 0.41%) edged lower. Mahindra & Mahindra (up 1.96%) and Maruti Suzuki (India) (up 1.97%) edged higher.
The National Green Tribunal said in an order issued on Friday, 11 December 2015, that new diesel vehicles will not be registered in NCT, Delhi and that there will be no renewal of registration of diesel vehicles that are more than 10 year old in the capital city. The tribunal's order is an interim measure to curb alarming pollution levels in Delhi. It also directed all the public authorities in NCT, Delhi to prepare an action plan for phasing out of diesel vehicles, particularly the trucks, being used by them.
Among two-wheeler makers, TVS Motor Company (up 0.49%) and Hero MotoCorp (up 0.66%) edged higher. Bajaj Auto (down 0.16%) edged lower.
Index heavyweight Reliance Industries rose 0.34% at Rs 955.45. The stock hit a high of Rs 962.70 and a low of Rs 946.50 in intraday trade.
Adani Ports and Special Economic Zone rose 5.6% at Rs 254.60. The stock hit a high of Rs 255.60 and a low of Rs 239.65 in intraday trade.
TCS dropped 0.41% at Rs 2,377.45 after the company said in its update regarding its operations in Chennai that recent severe flooding in the city led to major disruptions in its ability to function. The normal business functioning of company's facilities had to be halted in the city all week since 1 December 2015 due to flooding. This is expected to have a material impact on the company's revenue in the seasonally weak Q3 December 2015, it added. The company made the announcement after market hours on Friday, 11 December 2015. Chennai is one of the company's largest delivery function with over 65,000 employees. The majority of facilities in Chennai opened for normal business functioning on 7 December 2015, but attendance rates were lower than normal as employees were still recovering from the flood's aftermath.
Infosys rose 1.63% at Rs 1,069.50 after the company said that it has made an investment of $3 million in WHOOP Inc., an early stage company in the US offering a performance optimization system for elite professional sports teams. The stock hit a high of Rs 1,073.30 and a low of Rs 1,049 so far during the day. Infosys said that the investment in WHOOP Inc. will be completed by 16 December 2015. Infosys will have a minority holding in WHOOP, not exceeding 20% of its outstanding share capital. WHOOP's system includes a device worn by athletes on their wrist that continuously measures key strain and recovery variables, and actionable analytics powered by proprietary algorithms that generate intensity and recovery scores. This enables athletes and coaches to gain visibility into the drivers of high performance, guide training and make optimal game day decisions.
NTPC rose 0.04% after the company announced that it has raised Rs 500 crore through private placement of secured non-convertible debentures on 10 December 2015.. The stock was volatile. The stock hit a high of Rs 133.40 and a low of Rs 131.70 in intraday trade. The debentures carry a coupon rate of 8.19% with a 10 year door to door maturity. NTPC said that the proceeds will be mainly utilized to finance capital expenditure of the company. The announcement was made after market hours on Friday, 11 December 2015.
Tata Power Company (Tata Power) fell 0.4% at Rs 61.65. The stock hit a high of Rs 62.50 and a low of Rs 61.40 in intraday trade. Tata Power announced during trading hours today, 14 December 2015, that the company has identified four geographies viz. Africa, South East Asia, the Middle East and SAARC (India Region) to further expand its presence and strengthen its portfolio globally. Commenting on its international presence, Anil Sardana, CEO & Managing Director, Tata Power said that the company's resources allocation strategy is to invest in these four regions and in specific projects where all the clearances are in place and it is able to mitigate risks to achieve the threshold returns. In addition, Tata Power continues to evaluate various opportunities for providing management and technical advisory services in distribution business including possible partnerships in the shortlisted geographies of interest, he added.
The Sensex has declined 995.32 points or 3.8% in this month so far (till 14 December 2015). The Sensex has fallen 2,349.07 points or 8.54% in this calendar year so far (till 14 December 2015). From a 52-week low of 24,833.54 hit on 8 September 2015, the Sensex has risen 316.81 points or 1.27%. The Sensex is off 4,874.39 points or 16.23% from a record high of 30,024.74 hit on 4 March 2015.
On the macro front, the latest data showed that India's Index of Industrial Production (IIP) growth surged to 60-months high of 9.8% in October 2015 over a year ago compared with the revised growth of 3.8% in September 2015. An extremely farvourable base effect with IIP declining 2.7% in October 2014 has mainly fuel the IIP growth for October 2015. Also, the festive season shifting to November this year compared with October in last year, aided IIP growth in October 2015 driven by pre-festive season surge in production. The data was announced by the government after market hours on Friday, 11 December 2015.
Data released by the government during trading hours today, 14 December 2015, showed that inflation based on the wholesale price index (WPI) remained in negative zone in November 2015. WPI stood at negative 1.99% in November 2015 compared to a reading of negative 3.81% for October 2015.
In overseas stock markets, European stock markets edged higher in cautious trade as investors look ahead to this week's pivotal US monetary policy meeting. The US Federal Reserve is widely expected to raise the federal funds rate by 25 basis points after the conclusion of a two-day monetary policy meeting on 15-16 December 2015. With markets having already priced in a 25 basis points rate hike in mid-December, the focus has shifted to the likely pace and quantum of rate hikes once this first move is done. Earlier during the global day, Asian equities edged lower amid sharpening worries about the stability of the junk-bond market and tumbling oil prices. Lower commodity prices have stirred up concerns that oil and gas companies won't be able to pay back all their debt.
US stocks tumbled during the previous trading session on Friday, 11 December 2015, as falling prices in crude oil and worries about junk-bond markets rattled Wall Street. News during the previous day on 10 December 2015 that high-yield mutual fund Third Avenue Focused Credit Fund is blocking investors from withdrawing their money, added to market jitters.
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