Market gains on positive global cues
Indian equity markets bounced back in the week ended Friday, 19 February 2016, on positive global cues. The barometer index, the S&P BSE Sensex, regained the psychologically important 23,000 level and the 50-unit Nifty 50 index settled above the psychologically important 7,000 level. The Sensex and the Nifty rose in four out of five trading sessions in the week ended Friday, 19 February 2016.
The Sensex rose 723.03 points or 3.15% to settle at 23,709.15. The Nifty rose 229.80 points or 3.29% to settle at 7,210.75. The broad market depicted strength. The BSE Mid-Cap index rose 1.95%. The BSE Small-Cap index rose 2%. Both these indices underperformed the Sensex.
Trading for the week began on a bullish note. Metal, banking and auto sector stocks led rally on the domestic bourses triggered by firmness in global stocks on Monday, 15 February 2016. The barometer index, the S&P BSE Sensex, jumped 568 points or 2.47% to settle at 23,554.12. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty rose 182 points or 2.61% to settle at 7,162.95.
Stocks of public sector banks and index heavyweights Reliance Industries (RIL) and ITC led losses for key benchmark indices on Tuesday, 16 February 2016. The barometer index, the S&P BSE Sensex, fell 362.15 points or 1.54% to settle at 23,191.97. The losses for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty fell 114.70 points or 1.60% to settle at 7,048.25. The two key benchmark indices extended losses in late trade as European stocks reversed intraday gains.
Stocks of public sector banks, pharmaceutical companies and index heavyweights Reliance Industries, Infosys and ITC led upmove for key benchmark indices in what was a volatile trading session on Wednesday, 17 February 2016. The barometer index, the S&P BSE Sensex, rose 189.90 points or 0.82% to settle at 23,381.87. The 50-unit Nifty 50 index rose 60.20 points or 0.85% to settle at 7,108.45. Gains in European stocks aided the upmove for the two key benchmark indices.
Stocks from IT, pharmaceutical sectors and oil exploration and production firms led the upmove for the two key benchmark indices on Thursday, 18 February 2016, amid signs of stability in global financial markets. The barometer index, the S&P BSE Sensex, rose 267.35 points or 1.14% to settle at 23,649.22. The 50-unit Nifty 50 index rose 83.30 points or 1.17% to settle at 7,191.75.
A divergent trend among various index constituents resulted in small gains for key benchmark indices on Friday, 19 February 2016. The barometer index, the S&P BSE Sensex, rose 59.93 points or 0.25% to settle at 23,709.15. The 50-unit Nifty 50 index rose 19 points or 0.26% to settle at 7,210.75. The Sensex and the Nifty, both, hit their highest closing level in more than a week.
Among the 30 Sensex shares, 26 rose and the remaining shares fell.
Index heavyweight Reliance Industries (RIL) rose 4.22% to Rs 944.55.
Adani Ports and Special Economic Zone (APSEZ) rose 16.79% to Rs 208.70. It was the top Sensex gainer last week. The rise was triggered by media reports that a foreign brokerage upgraded the stock to outperform from neutral citing attractive valuations. The foreign brokerage reportedly said that APSEZ amply prices in risks on volume growth after a 50% correction in last six months.
Tata Steel surged 16.25% to Rs 253.25.
L&T jumped 9.26% to Rs 1,151.25. With respect to the news article that L&T is eyeing Rs 1.5 lakh crore worth of orders from Indian Navy in 4 years, L&T clarified that it has not yet received any orders. These are possible opportunities for the industry based on government approved programs, L&T added.
ONGC jumped 9.09% to Rs 211.15. Shares of oil exploration and production (E&P) companies rose on surge in crude oil prices. In the global commodities markets, Brent crude oil futures edged higher after Iran welcomed plans by Russia and Saudi Arabia to cap production. Higher crude oil prices would result in higher realization from crude sales for oil exploration firms.
Auto stocks were in demand. Tata Motors rose 6.31% to Rs 317.50.
Mahindra & Mahindra (M&M) gained 4.96% to Rs 1,226.30. The company announced during market hours on Monday, 15 February 2016, that it plans to make an investment of Rs 8000 crore at the automotive plants in Maharashtra as part of its expansion plan. The project will be qualified as ultra mega project and the investment will be made over a period of 7 years and will be utilized towards infrastructure development, product development and capacity expansion for vehicles to be rolled out from the company's plants in Maharashtra. The company said that it has signed a memorandum of understanding with this regards in the recently concluded 'Make in India' week in Mumbai.
Maruti Suzuki India rose 0.89% at Rs 3,581.05. Media reports suggested that the company may fail to meet its volume growth target for the year ending 31 March 2017 (FY 2017) because of capacity constraints. The stock had lost 2.53% to settle at Rs 3,654.90 on Thursday, 18 February 2016. Maruti Chairman R.C. Bhargava was quoted as saying that the company's volume growth will moderate to 8-9% in FY 2017, slower than the double-digit growth expected earlier.
Two-wheeler makers edged higher. Hero MotoCorp (up 8.78%) and Bajaj Auto (up 6.69%), rose.
Drug maker Dr Reddy's Laboratories gained 7.58% at Rs 3,062.10, The company announced a proposal for buyback of equity shares of the company for an aggregate amount not exceeding Rs 1569.40 crore at a price not exceeding Rs 3,500 per share under the open market route. The company's promoters will not be eligible to participate in the share buyback programme.
Cipla fell 1.05% at Rs 523.05. The company announced that its UK arm Cipla (EU) Limited has completed the transaction to acquire two US-based companies, InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc. The acquisition was made by Cipla (EU) Limited through a wholly owned special purpose vehicle (SPV) which would merge into InvaGen Pharmaceuticals Inc. after the acquisition. The combined revenue for the two companies for the year-ended 2015 was over $230 million. The announcement was made before market hours on Thursday, 18 February 2016.
State Bank of India (SBI) rose 6.26% at Rs 164.65. The bank said it has issued 30,000, Basel III compliant, Tier-II bonds in the nature of debentures aggregating to Rs 3000 crore on private placement basis. The tenure of debentures is 10 years, with a coupon rate of 8.45% per annum and with call option after 5 years. The announcement was made before market hours on Friday, 19 February 2016.
Axis Bank rose 0.44% to Rs 392.50.
ICICI Bank rose 2.24% to Rs 198.55. The government on Tuesday, 16 February 2016, deferred a proposal of ICICI Bank to sell its 6% stake in ICICI Prudential Life Insurance Company to Compassvale Investments Pte. Ltd (Compassvale), a foreign entity and Premji Invest & its affiliates. ICICI Bank had announced in November 2015 that it has decided to sell 2% stake in ICICI Prudential Life Insurance Company to Compassvale and 4% stake in ICICI Prudential Life Insurance Company to Premji Invest & its affiliates. The government has also deferred a proposal of ICICI Bank to sell its 9% stake in ICICI Lombard General Insurance Company to its joint venture partner viz. Fairfax Financial Holdings for an aggregate consideration of Rs 1550.20 crore.
Separately, ICICI Bank announced that a proposal to raise funds through issuance of long term bonds in the nature of debentures for lending to long term projects in infrastructure and affordable housing on a private placement basis will be considered by the Committee of Executive Directors (COED) at any time within a period of 10 days commencing from 18 February 2016. The announcement was made after market hours on Monday, 15 February 2016. It may be recalled that ICICI Bank had received the approval of shareholders on 29 June 2015 to borrow by way of securities including but not limited to bonds and non-convertible debentures upto Rs 50000 crore on private placement basis.
HDFC Bank rose 1.51% at Rs 988.05. The bank before market hours on Friday, 19 February 2016, announced that it has outstanding bonds totaling about $1.20 billion issued from Bahrain branch. These bonds have a dual rating from Standard & Poor's (S&P) of BBB- and Moody's of Baa3. The issuer rating of HDFC Bank by S&P and Moody's is BBB- and Baa3 respectively, HDFC Bank said. On 17 February 2016, S&P lowered its long and short term foreign and local currency sovereign credit ratings on the Kingdom of Bahrain to BB/B (stable) from BBB-/A3 (negative), HDFC Bank said.
The rating criteria published by S&P restrict the rating of any bond issued in a jurisdiction to the host country rating, the bank said. Consequent to the recent rating action on Bahrain, the bonds issued by HDFC Bank may also be subject to rating action by S&P, the bank added. HDFC Bank said it is in the process of carrying out modifications to the structure of all the issuances done from Bahrain in order to ensure that the bonds issued by the bank are insulated from any rating actions on the host country.
IT stocks edged higher on renewed buying. Wipro (up 5.83%), TCS (up 4.21%) and Infosys (up 3.74%), gained.
State-run Bharat Heavy Electricals (Bhel) fell 2.53% at Rs 101.90. It was the top Sensex loser. Media reports suggested that a foreign brokerage has maintained its 'sell' rating on the stock and cut its price target as it expects the state-run company to report losses until the year ending 31 March 2018 (FY 2018). The foreign brokerage expects Bhel's revenue to remain muted in FY 2017.
The Sensex rose 723.03 points or 3.15% to settle at 23,709.15. The Nifty rose 229.80 points or 3.29% to settle at 7,210.75. The broad market depicted strength. The BSE Mid-Cap index rose 1.95%. The BSE Small-Cap index rose 2%. Both these indices underperformed the Sensex.
Trading for the week began on a bullish note. Metal, banking and auto sector stocks led rally on the domestic bourses triggered by firmness in global stocks on Monday, 15 February 2016. The barometer index, the S&P BSE Sensex, jumped 568 points or 2.47% to settle at 23,554.12. The gains for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty rose 182 points or 2.61% to settle at 7,162.95.
Stocks of public sector banks and index heavyweights Reliance Industries (RIL) and ITC led losses for key benchmark indices on Tuesday, 16 February 2016. The barometer index, the S&P BSE Sensex, fell 362.15 points or 1.54% to settle at 23,191.97. The losses for the 50-unit Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty fell 114.70 points or 1.60% to settle at 7,048.25. The two key benchmark indices extended losses in late trade as European stocks reversed intraday gains.
Stocks of public sector banks, pharmaceutical companies and index heavyweights Reliance Industries, Infosys and ITC led upmove for key benchmark indices in what was a volatile trading session on Wednesday, 17 February 2016. The barometer index, the S&P BSE Sensex, rose 189.90 points or 0.82% to settle at 23,381.87. The 50-unit Nifty 50 index rose 60.20 points or 0.85% to settle at 7,108.45. Gains in European stocks aided the upmove for the two key benchmark indices.
Stocks from IT, pharmaceutical sectors and oil exploration and production firms led the upmove for the two key benchmark indices on Thursday, 18 February 2016, amid signs of stability in global financial markets. The barometer index, the S&P BSE Sensex, rose 267.35 points or 1.14% to settle at 23,649.22. The 50-unit Nifty 50 index rose 83.30 points or 1.17% to settle at 7,191.75.
A divergent trend among various index constituents resulted in small gains for key benchmark indices on Friday, 19 February 2016. The barometer index, the S&P BSE Sensex, rose 59.93 points or 0.25% to settle at 23,709.15. The 50-unit Nifty 50 index rose 19 points or 0.26% to settle at 7,210.75. The Sensex and the Nifty, both, hit their highest closing level in more than a week.
Among the 30 Sensex shares, 26 rose and the remaining shares fell.
Index heavyweight Reliance Industries (RIL) rose 4.22% to Rs 944.55.
Adani Ports and Special Economic Zone (APSEZ) rose 16.79% to Rs 208.70. It was the top Sensex gainer last week. The rise was triggered by media reports that a foreign brokerage upgraded the stock to outperform from neutral citing attractive valuations. The foreign brokerage reportedly said that APSEZ amply prices in risks on volume growth after a 50% correction in last six months.
Tata Steel surged 16.25% to Rs 253.25.
L&T jumped 9.26% to Rs 1,151.25. With respect to the news article that L&T is eyeing Rs 1.5 lakh crore worth of orders from Indian Navy in 4 years, L&T clarified that it has not yet received any orders. These are possible opportunities for the industry based on government approved programs, L&T added.
ONGC jumped 9.09% to Rs 211.15. Shares of oil exploration and production (E&P) companies rose on surge in crude oil prices. In the global commodities markets, Brent crude oil futures edged higher after Iran welcomed plans by Russia and Saudi Arabia to cap production. Higher crude oil prices would result in higher realization from crude sales for oil exploration firms.
Auto stocks were in demand. Tata Motors rose 6.31% to Rs 317.50.
Mahindra & Mahindra (M&M) gained 4.96% to Rs 1,226.30. The company announced during market hours on Monday, 15 February 2016, that it plans to make an investment of Rs 8000 crore at the automotive plants in Maharashtra as part of its expansion plan. The project will be qualified as ultra mega project and the investment will be made over a period of 7 years and will be utilized towards infrastructure development, product development and capacity expansion for vehicles to be rolled out from the company's plants in Maharashtra. The company said that it has signed a memorandum of understanding with this regards in the recently concluded 'Make in India' week in Mumbai.
Maruti Suzuki India rose 0.89% at Rs 3,581.05. Media reports suggested that the company may fail to meet its volume growth target for the year ending 31 March 2017 (FY 2017) because of capacity constraints. The stock had lost 2.53% to settle at Rs 3,654.90 on Thursday, 18 February 2016. Maruti Chairman R.C. Bhargava was quoted as saying that the company's volume growth will moderate to 8-9% in FY 2017, slower than the double-digit growth expected earlier.
Two-wheeler makers edged higher. Hero MotoCorp (up 8.78%) and Bajaj Auto (up 6.69%), rose.
Drug maker Dr Reddy's Laboratories gained 7.58% at Rs 3,062.10, The company announced a proposal for buyback of equity shares of the company for an aggregate amount not exceeding Rs 1569.40 crore at a price not exceeding Rs 3,500 per share under the open market route. The company's promoters will not be eligible to participate in the share buyback programme.
Cipla fell 1.05% at Rs 523.05. The company announced that its UK arm Cipla (EU) Limited has completed the transaction to acquire two US-based companies, InvaGen Pharmaceuticals Inc., and Exelan Pharmaceuticals Inc. The acquisition was made by Cipla (EU) Limited through a wholly owned special purpose vehicle (SPV) which would merge into InvaGen Pharmaceuticals Inc. after the acquisition. The combined revenue for the two companies for the year-ended 2015 was over $230 million. The announcement was made before market hours on Thursday, 18 February 2016.
State Bank of India (SBI) rose 6.26% at Rs 164.65. The bank said it has issued 30,000, Basel III compliant, Tier-II bonds in the nature of debentures aggregating to Rs 3000 crore on private placement basis. The tenure of debentures is 10 years, with a coupon rate of 8.45% per annum and with call option after 5 years. The announcement was made before market hours on Friday, 19 February 2016.
Axis Bank rose 0.44% to Rs 392.50.
ICICI Bank rose 2.24% to Rs 198.55. The government on Tuesday, 16 February 2016, deferred a proposal of ICICI Bank to sell its 6% stake in ICICI Prudential Life Insurance Company to Compassvale Investments Pte. Ltd (Compassvale), a foreign entity and Premji Invest & its affiliates. ICICI Bank had announced in November 2015 that it has decided to sell 2% stake in ICICI Prudential Life Insurance Company to Compassvale and 4% stake in ICICI Prudential Life Insurance Company to Premji Invest & its affiliates. The government has also deferred a proposal of ICICI Bank to sell its 9% stake in ICICI Lombard General Insurance Company to its joint venture partner viz. Fairfax Financial Holdings for an aggregate consideration of Rs 1550.20 crore.
Separately, ICICI Bank announced that a proposal to raise funds through issuance of long term bonds in the nature of debentures for lending to long term projects in infrastructure and affordable housing on a private placement basis will be considered by the Committee of Executive Directors (COED) at any time within a period of 10 days commencing from 18 February 2016. The announcement was made after market hours on Monday, 15 February 2016. It may be recalled that ICICI Bank had received the approval of shareholders on 29 June 2015 to borrow by way of securities including but not limited to bonds and non-convertible debentures upto Rs 50000 crore on private placement basis.
HDFC Bank rose 1.51% at Rs 988.05. The bank before market hours on Friday, 19 February 2016, announced that it has outstanding bonds totaling about $1.20 billion issued from Bahrain branch. These bonds have a dual rating from Standard & Poor's (S&P) of BBB- and Moody's of Baa3. The issuer rating of HDFC Bank by S&P and Moody's is BBB- and Baa3 respectively, HDFC Bank said. On 17 February 2016, S&P lowered its long and short term foreign and local currency sovereign credit ratings on the Kingdom of Bahrain to BB/B (stable) from BBB-/A3 (negative), HDFC Bank said.
The rating criteria published by S&P restrict the rating of any bond issued in a jurisdiction to the host country rating, the bank said. Consequent to the recent rating action on Bahrain, the bonds issued by HDFC Bank may also be subject to rating action by S&P, the bank added. HDFC Bank said it is in the process of carrying out modifications to the structure of all the issuances done from Bahrain in order to ensure that the bonds issued by the bank are insulated from any rating actions on the host country.
IT stocks edged higher on renewed buying. Wipro (up 5.83%), TCS (up 4.21%) and Infosys (up 3.74%), gained.
State-run Bharat Heavy Electricals (Bhel) fell 2.53% at Rs 101.90. It was the top Sensex loser. Media reports suggested that a foreign brokerage has maintained its 'sell' rating on the stock and cut its price target as it expects the state-run company to report losses until the year ending 31 March 2018 (FY 2018). The foreign brokerage expects Bhel's revenue to remain muted in FY 2017.
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