Sunday, January 10, 2016

END SESSION ( 08 / 01 )

Benchmark indices snap 4-day losing streak


Stocks from power, oil and IT sector and private sector banks led gains as key benchmark indices snapped a 4-day losing streak. The barometer index, the S&P BSE Sensex, rose 82.50 points or 0.33% to settle at 24,934.33. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for Sensex. The Nifty rose 33.05 points or 0.44% to settle at 7,601.35. The Sensex and the Nifty traded in positive zone throughout the trading session. But, the Sensex failed to retain the psychological 25,000 level after moving past that mark in intraday trade.

The modest gains for the two key benchmark indices materialized as Asian and European stocks stabilized in the wake of China's decision to scrap a controversial new circuit breaker system, blamed for triggering a rout in Chinese stocks this week.
L&T edged lower and Reliance Industries (RIL) edged higher after a foreign brokerage reportedly replaced L&T with RIL in its Asia ex-Japan long-only portfolio. Tata Motors recovered after a recent steep slide triggered by concerns about Chinese demand. Tata Steel edged higher after Managing Director T V Narendran was quoted as saying that commercial production at the company's Kalinganagar steel plant in Odisha is likely to begin from 1 April 2016. Sun Pharmaceutical Industries rose on reports that a foreign brokerage has maintained buy rating on the stock.

In overseas stock markets, Chinese stocks led gains in Asian markets after China Securities Regulator removed its four-day-old circuit-breaker system that was blamed for triggering a rout in Chinese stocks this week. In mainland China, the Shanghai Composite index settled with gains of 1.97%. China's central bank meanwhile guided the yuan stronger against the dollar, further helping to calm the markets somewhat. Chinese markets were suspended from trading on Monday, 4 January 2016, and Thursday, 7 January 2016, after they fell by the 7% limit allowed in the new circuit-breaker system ushered in this year.

European stocks edged higher as Chinese stocks stabilized after authorities removed a controversial new circuit breaker system which failed to reduce market volatility. Trading in US stock index futures pointed to a recovery in US stocks later in the global day. Trading in US index futures indicated that the Dow Jones Industrial Average could gain 135.50 points at the opening bell today, 8 January 2016. US stocks tumbled yesterday, 7 January 2016, as persistent worries about the health of the Chinese economy and a continued slide in commodity prices sent investors for cover.

The Sensex rose 82.50 points or 0.33% to settle at 24,934.33, its highest closing level since 6 January 2016. The index rose 231.72 points or 0.93% at the day's high of 25,083.55. The index rose 35.39 points or 0.14% at the day's low of 24,887.22.

The Nifty rose 33.05 points or 0.44% to settle at 7,601.35, its highest closing level since 6 January 2016. The index rose 65.80 points or 0.86% at the day's high of 7,634.10. The index rose 12.75 points or 0.16% at the day's low of 7.581.05.
The BSE Mid-Cap index rose 1.32%. The BSE Small-Cap index rose 1.24%. Both these indices outperformed the Sensex.

The broad market depicted strength. There were more than two gainers for every loser on BSE. 1,959 shares rose and 808 shares declined. A total of 189 shares were unchanged.

Among the sectoral indices on BSE, the S&P BSE Basic Materials index (up 1.05%), the BSE Energy index (up 0.95%), the BSE IT index (up 1.12%), the BSE Utilities index (up 2.3%), the BSE Oil & Gas index (up 1.39%), the BSE Power index (up 2.06%) and the BSE Realty index (up 2.31%) outperformed the Sensex. The S&P BSE Auto index (up 0.24%) and the BSE Capital Goods index (down 0.67%) underperformed the Sensex.

Bank stocks edged higher. Among private sector banks, Axis Bank (up 1.1%), Kotak Mahindra Bank (up 0.39%), Yes Bank (up 2.3%), HDFC Bank (up 1.05%) and IndusInd Bank (up 2.26%) edged higher. ICICI Bank declined 0.83%.

Among public sector banks, Punjab National Bank (up 0.1%), Bank of Baroda (up 0.72%), Union Bank of India (up 0.85%), and Bank of India (up 1.15%) edged higher. State Bank of India (SBI) declined 0.29%.

Canara Bank gained 0.55% at Rs 220.15 after the state-run bank after market hours yesterday, 7 January 2016, said that it has successfully raised Rs 900 crore under Basel III compliant Tier-II bonds with a coupon of 8.40% per annum. With this, the bank has raised Rs 2400 crore under Basel III compliant Tier-II bonds during the current financial year ending 31 March 2016.

Index heavyweight and housing finance major HDFC fell 0.39% at Rs 1,175.20. The stock hit a high of Rs 1,210 and a low of Rs 1,169.90 in intraday trade. The company announced after market hours yesterday, 7 January 2016, that its wholly owned subsidiary HDFC Capital Advisors has been appointed as an investment manager for the HDFC Capital Affordable Real Estate Fund-1 (HCARE-1). HCARE-1 is a Sebi registered Alternative Investment Fund (AIF) and has been sponsored by HDFC. HDFC said that the fund has received an aggregate commitment for an amount of Rs 2700 crore from various investors. One of the key objectives of HCARE-1 is to make medium to long term investments towards development of mass housing where the residential units would be priced in a manner so as to cater to the residential demand of the urban middle-income households. HDFC said that the targeted fund size is approximately Rs 5000 crore and the first close will be Rs 2700 crore. The tenure of the fund will be 12 years and it will invest in the long-term equity of mid income housing, HDFC said.

Power generation and distribution stocks edged higher. Reliance Infrastructure (up 2.98%), JSW Energy (up 4.08%), Adani Power (up 4.21%), Torrent Power (up 2.28%), Reliance Power (up 5.51%), Power Grid Corporation of India (up 2.57%), NTPC (up 1.27%), CESC (up 1.32%), Tata Power Company (up 3.7%), GMR Infrastructure (up 3.03%), Jaiprakash Power Ventures (up 1.68%) and NHPC (up 1.93%) edged higher.
State-run coal-mining giant Coal India declined 1.68% at Rs 321.05. The stock hit a high of Rs 329.55 and a low of Rs 317 in intraday trade.

Realty stocks gained on renewed buying. Housing Development and Infrastructure (up 5.76%), Godrej Properties (up 0.6%), Prestige Estates Projects (up 0.24%), DLF (up 4.77%), Unitech (up 2.13%), Oberoi Realty (up 4.4%), Indiabulls Real Estate (up 1.1%) and D B Realty (up 0.74%) edged higher. Sobha (down 0.53%) edged lower.
Battered oil sector stocks recovered. Among oil exploration & production (E&P) companies, Cairn India (up 0.43%), Oil India (up 1.7%) and ONGC (up 1.12%) edged higher.

Among public sector oil marketing companies, HPCL (up 4.21%), BPCL (up 2.25%) and Indian Oil Corporation (up 4.21%) edged higher.

In the global commodities markets, Brent for February settlement was currently up 14 cents at $33.89 a barrel. The contract had lost 48 cents or 1.4% to settle at $33.75 a barrel during the previous trading session.

L&T edged lower and Reliance Industries (RIL) edged higher after a foreign brokerage reportedly replaced L&T with RIL in its Asia ex-Japan long-only portfolio. RIL rose 1.24% at Rs 1,024.05. The stock hit a high of Rs 1,032.15 and a low of Rs 1,000.05 in intraday trade. A large bulk deal of 60.58 lakh shares was executed in the counter at Rs 1,015.50 per share at 11:15 IST on BSE.

L&T dropped 2.19% at Rs 1,179.85. The stock was volatile. The stock hit high of Rs 1,217 in intraday trade. The stock hit low of Rs 1,175.15 in intraday trade, which is also a 52-week low for the stock. The company announced after market hours yesterday, 7 January 2016, that L&T Hydrocarbon Engineering (LTHE), a fully owned subsidiary of L&T, in consortium with McDermott has bagged an offshore contract from ONGC valued at Rs 2450 crore for the development of ONGC's Vashista and S1 deepwater fields situated off the East Coast of India. LTHE's share in the consortium is Rs 640 crore.

IT stocks edged higher on renewed buying. Tech Mahindra (up 2.12%), TCS (up 1.15%), Wipro (up 1.13%), Infosys (up 1.3%), Oracle Financial Services Software (up 1.43%) and HCL Technologies (up 0.5%) edged higher.

Index heavyweight and cigarette major ITC rose 1.21% at Rs 313.35. The stock hit a high of Rs 316.90 and a low of Rs 309.30 in intraday trade.

Tata Steel rose 1.44% at Rs 253.70 after Managing Director T V Narendran was quoted as saying that commercial production at the company's Kalinganagar steel plant in Odisha is likely to begin from 1 April 2016.

Tata Motors recovered after a recent steep slide triggered by concerns about Chinese demand. The stock rose 2.99% at Rs 353.45. China is a key market for Tata Motors' British luxury car unit Jaguar Land Rover (JLR).

Sun Pharmaceutical Industries (Sun Pharma) rose 1.15% at Rs 793 on reports that a foreign brokerage has maintained buy rating on the stock. The stock hit a high of Rs 805 and a low of Rs 790.45 so far during the day. The foreign brokerage reportedly expects 72% year-on-year growth in the company's earnings per share (EPS) for the year ending 31 March 2017 (FY 2017). The brokerage said that the company's EPS in FY 2017 will be driven by Gleevec generic launch in the United States and synergy benefits from the merger of Ranbaxy. Other catalysts for Sun Pharma's growth include early resolution of Halol warning letter, potential clearance of Ranbaxy's Mohali plant and positive phase III data read of novel psoriasis drug Tildrakizumab, the brokerage reportedly said.

Lupin fell 0.33% at Rs 1,712.70. The stock hit a high of Rs 1,745.10 and a low of Rs 1,705.50 in intraday trade. The company during market hours today, 8 January 2016, announced that it has received final approval for its Kaitlib Fe Tablets from the United States Food and Drug Administration (FDA). Lupin's US subsidiary, Lupin Pharmaceuticals Inc. would commence promoting the product in the US shortly, Lupin said in a statement. Lupin's Kaitlib Fe Tablets are the AB rated generic equivalent of Warner Chilcott's Generess Fe Chewable Tablets. The drug is indicated for use by women to prevent pregnancy. Generess Fe Chewable Tablets had annual sales of $89.8 million in the United States as per IMS MAT September 2015 data.
Key indices snapped a 4-day losing streak. The Sensex had declined 1,309.07 points or 5% in the preceding four trading sessions to settle at 24,851.83 yesterday, 7 January 2016, from its close of 26,160.90 on 1 January 2016. The Sensex has fallen 1,183.21 points or 4.53% in this month so far (till 8 January 2016). The Sensex has gained 108.63 points or 0.43% from 52-week low of 24,825.70 hit yesterday, 7 January 2016. The Sensex is off 5,090.41 points or 16.95% from a record high of 30,024.74 hit on 4 March 2015.

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