Market spurts on strong global cues
Indian equity markets registered strong gains in a truncated trading week on strong global cues like stronger-than-expected China trade data for March and easing of Japanese yen against the dollar after a recent surge. Also, a batch of positive domestic factors such as forecast of good rains during the June-September 2016 southwest season, further easing of consumer price inflation raising hopes of further rate cut from the Reserve Bank of India and rebound in industrial production aided rally on the domestic bourses. The barometer index, the S&P BSE Sensex, reclaimed the psychologically important 25,000 level.
The Sensex surged 952.91 points or 3.86% to settle at 25,626.75. The Nifty 50 index jumped 295.25 points or 3.9% to settle at 7,850.45. The BSE Mid-Cap index rose 3.03%. The BSE Small-Cap index rose 2.61%. Both these indices underperformed the Sensex.
A rally on the first trading session of the week took the barometer index, the S&P BSE Sensex, past the psychologically important 25,000 mark on Monday, 11 April 2016. The Sensex surged 348.32 points or 1.41% to settle at 25,022.16, its highest closing level since 4 April 2016.
Auto and FMCG stocks led gains for key benchmark indices on Tuesday, 12 April 2016, after private weather forecaster Skymet forecast above normal southwest monsoon rainfall during June-September 2016. The Sensex rose 123.43 points or 0.49% to settle at 25,145.59, its highest closing level since 4 April 2016.
Key benchmark indices surged on Wednesday, 13 April 2016, on the back of a confluence of positive factors viz. forecast of good rains during the June-September 2016 southwest season, further easing of consumer price inflation raising hopes of further rate cut from the Reserve Bank of India, rebound in industrial production and gains in global stocks aided the latest rally on the domestic bourses. The Sensex surged 481.16 points or 1.91% to settle at 25,626.75, its highest closing level since 1 January 2016.
Barring Coal India, all other 29 stocks edged higher from the 30-share Sensex pack. Adani Ports and Special Economic Zone (up 6.43%), Asian Paints (up 2.44%), Bajaj Auto (up 7.95%), GAIL (India) (up 5.6%), HDFC (up 3.16%), Hero MotoCorp (up 7.92%), Hindustan Unilever (up 5.35%), ITC (up 2.98%), Mahindra & Mahindra (up 8.06%), Maruti Suzuki India (up 8.91%), NTPC (up 4.25%), ONGC (up 3.37%), Reliance Industries (up 2.65%) edged higher from the Sensex pack.
Bank stocks gained, with the S&P BSE Bankex index surging 4.78%. State Bank of India (up 4.72%), HDFC Bank (up 2.12%) and ICICI Bank (up 8.85%) rose.
Axis Bank rose 4.56% at Rs 440.75. The private sector bank before market hours on Wednesday, 13 April 2016, announced reduction in lending rates. The bank has reduced its Marginal Cost of Funds based Lending Rate (MCLR) by 15 basis points (bps) across tenors. The reduced MCLRs will be effective from 18 April 2016. Axis Bank also reduced base rate by 5 bps to 9.45% effective from 18 April 2016.
IT stocks edged higher on renewed buying. The S&P BSE IT index rose 1.98% during the week. TCS (up 3.88%) edged higher.
Infosys rose 0.4% at Rs 1,172.05. The company will announce its Q4 March 2016 result on Friday, 15 April 2016, when the stock market is closed for a holiday.
Wipro gained 6.89% at Rs 584.60. The company after market hours on Tuesday, 12 April 2016, announced that its board of directors will consider a proposal for buyback of equity shares of the company at its meeting on 20 April 2016. Wipro is scheduled to announce its Q4 March 2016 results after trading hours on 20 April 2016.
Pharma stocks gained. Cipla (up 1.22%) edged higher.
Sun Pharmaceutical Industries (Sun Pharma) was up 2.45% at Rs 831.75. The company announced on Saturday, 9 April 2016, that one of its wholly owned subsidiaries has received approval from the United States Food and Drug Administration (USFDA) for its new drug application (NDA) related to BromSite (bromfenac ophthalmic solution) 0.075% for the treatment of postoperative inflammation and prevention of ocular pain in patients undergoing cataract surgery.
Lupin rose 0.2% at Rs 1,543.85. Lupin and Novartis Healthcare (NHPL) have entered into a co-marketing agreement to promote Novartis' Indacaterol/Glycopyrronium 110mcg/50mcg inhaler, used for a treatment of chronic obstructive pulmonary disease (COPD) under the brand name of Loftair in India. The announcement was made during market hours on Monday, 11 April 2016.
Dr Reddy's Laboratories gained 2.13% at Rs 3,100.60. The company before market hours on Tuesday, 12 April 2016 said that its buyback offer will commence on 18 April 2016. The buyback is proposed to be completed within a maximum period of six months from the date of opening of the buyback. The company has set aside a maximum amount of Rs 1569.41 crore for the buyback offer, which is 14.9% of the total paid up share capital and free reserves of the company as on 31 March 2015.
The maximum buyback price is fixed at Rs 3,500 per equity share.
The S&P BSE Healthcare index rose 1.81% during the week.
Tata Motors surged 9.76% at Rs 408.55. The company during market hours on Monday, 11 April 2016, said that its global wholesales including Jaguar Land Rover (JLR) rose 11% to 1.18 lakh units in March 2016 over March 2015.
L&T rose 3.77% at Rs 1,235.55. L&T announced during market hours on Monday, 11 April 2016, that its wholly owned subsidiary L&T Hydrocarbon Engineering (LTHE) has won two orders valued at approximately $370 million from Petroleum Development Oman LLC.
The company announced after market hours on Tuesday, 12 April 2016, that its subsidiary Larsen & Toubro Infotech (L&T Infotech) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) on 12 April 2016 in order to undertake an initial public offer (IPO) of its equity shares of face value of Re 1 each. The offer comprises of an offer for sale (OFS) of up to 1.75 crore equity shares by L&T.
Shares of state-run power equipment major Bharat Heavy Electricals (Bhel) jumped 8.9% at Rs 133.35. With respect to news report of NTPC's joint venture utility in Bangladesh awarding engineering, procurement and construction contract to Bhel for an estimated value of $2.4 billion, Bhel clarified during market hours on Tuesday, 12 April 2016, that the contract for the 1,320 megawatts Maitree Power Project in Bangladesh is yet to be signed. The financial closure is under process.
Tata Steel rose 3.21% at Rs 332.60. The company after market hours on Monday, 11 April 2016, announced that its British subsidiary Tata Steel UK has signed an agreement to sell its long products Europe business for a nominal consideration. The sale for a nominal consideration to the family investment office Greybull Capital would be in exchange for Greybull Capital taking on the whole of the business, including assets and relevant liabilities, and securing an appropriate funding package, Tata Steel UK said. Separately, Tata Steel Europe announced that the company has commenced the formal process for divestment of its entire holding in its British subsidiary Tata Steel UK.
Tata Steel after market hours on Friday, 8 April 2016, said its total steel sales increased 12.87% to 27.18 lakh tonnes in Q4 March 2016 over Q4 March 2015.
Bharti Airtel surged 5.23% at Rs 351.80. The company said after market hours on Friday, 8 April 2016, that it would pay Rs 3500 crore to acquire rights to use 4G spectrum of Aircel in eight telecom circles.
The company announced after market hours on Monday, 11 April 2016 that its subsidiary Airtel M Commerce Services (AMSL) has been granted payments bank license from Reserve Bank of India on 11 April 2016.
Shares of state-run coal mining major Coal India (CIL) fell 1.26% at Rs 276.95. The company announced during market hours on Tuesday, 12 April 2016 that its board of directors has accorded its approval for giving up performance incentive for supply of higher grades of coal in the model fuel supply agreement for power and non-power sector with immediate effect with a view to improve lifting of coal.
The India Meteorological Department (IMD) said in its initial monsoon forecast that the southwest monsoon is likely to be 106% of the Long Period Average (LPA) during the four-month period from June to September 2016, with an error margin of plus/minus 5%. According to the weather office, there is 34% probability of above normal rains, 30% probability each of excess and normal rains, 5% probability of below normal rains and 1% probability of deficient rains. The IMD's announcement hit the market after trading hours on Tuesday, 12 April 2016.
On the macro front, data released by the government after market hours on Tuesday, 12 April 2016, showed that inflation based on consumer price index (CPI) dipped to six-month low of 4.83% in March 2016, with the index easing for second straight month. The CPI inflation for February 2016 was revised slightly upward to 5.26% from the provisional figure of 5.18% reported earlier. The core CPI inflation fell to 4.54% in March 2016 from 4.79% in February 2016.
Another data released by the government after market hours on Tuesday, 12 April 2016 showed that industrial production rose 2% in February 2016 over February 2015, snapping consistent decline for last three straight months.
On the global front, data released on Wednesday, 13 April 2016 showed stronger-than-expected growth in China's exports. China's exports rose 11.5% in March year-over-year in dollar terms. Imports declined 7.6%, compared with February's 13.8% drop.
In US, the New York Federal Reserve President William Dudley on Friday, 8 April 2016, said that the US central bank must maintain a cautious and gradual approach to raising interest rates.
The Sensex surged 952.91 points or 3.86% to settle at 25,626.75. The Nifty 50 index jumped 295.25 points or 3.9% to settle at 7,850.45. The BSE Mid-Cap index rose 3.03%. The BSE Small-Cap index rose 2.61%. Both these indices underperformed the Sensex.
A rally on the first trading session of the week took the barometer index, the S&P BSE Sensex, past the psychologically important 25,000 mark on Monday, 11 April 2016. The Sensex surged 348.32 points or 1.41% to settle at 25,022.16, its highest closing level since 4 April 2016.
Auto and FMCG stocks led gains for key benchmark indices on Tuesday, 12 April 2016, after private weather forecaster Skymet forecast above normal southwest monsoon rainfall during June-September 2016. The Sensex rose 123.43 points or 0.49% to settle at 25,145.59, its highest closing level since 4 April 2016.
Key benchmark indices surged on Wednesday, 13 April 2016, on the back of a confluence of positive factors viz. forecast of good rains during the June-September 2016 southwest season, further easing of consumer price inflation raising hopes of further rate cut from the Reserve Bank of India, rebound in industrial production and gains in global stocks aided the latest rally on the domestic bourses. The Sensex surged 481.16 points or 1.91% to settle at 25,626.75, its highest closing level since 1 January 2016.
Barring Coal India, all other 29 stocks edged higher from the 30-share Sensex pack. Adani Ports and Special Economic Zone (up 6.43%), Asian Paints (up 2.44%), Bajaj Auto (up 7.95%), GAIL (India) (up 5.6%), HDFC (up 3.16%), Hero MotoCorp (up 7.92%), Hindustan Unilever (up 5.35%), ITC (up 2.98%), Mahindra & Mahindra (up 8.06%), Maruti Suzuki India (up 8.91%), NTPC (up 4.25%), ONGC (up 3.37%), Reliance Industries (up 2.65%) edged higher from the Sensex pack.
Bank stocks gained, with the S&P BSE Bankex index surging 4.78%. State Bank of India (up 4.72%), HDFC Bank (up 2.12%) and ICICI Bank (up 8.85%) rose.
Axis Bank rose 4.56% at Rs 440.75. The private sector bank before market hours on Wednesday, 13 April 2016, announced reduction in lending rates. The bank has reduced its Marginal Cost of Funds based Lending Rate (MCLR) by 15 basis points (bps) across tenors. The reduced MCLRs will be effective from 18 April 2016. Axis Bank also reduced base rate by 5 bps to 9.45% effective from 18 April 2016.
IT stocks edged higher on renewed buying. The S&P BSE IT index rose 1.98% during the week. TCS (up 3.88%) edged higher.
Infosys rose 0.4% at Rs 1,172.05. The company will announce its Q4 March 2016 result on Friday, 15 April 2016, when the stock market is closed for a holiday.
Wipro gained 6.89% at Rs 584.60. The company after market hours on Tuesday, 12 April 2016, announced that its board of directors will consider a proposal for buyback of equity shares of the company at its meeting on 20 April 2016. Wipro is scheduled to announce its Q4 March 2016 results after trading hours on 20 April 2016.
Pharma stocks gained. Cipla (up 1.22%) edged higher.
Sun Pharmaceutical Industries (Sun Pharma) was up 2.45% at Rs 831.75. The company announced on Saturday, 9 April 2016, that one of its wholly owned subsidiaries has received approval from the United States Food and Drug Administration (USFDA) for its new drug application (NDA) related to BromSite (bromfenac ophthalmic solution) 0.075% for the treatment of postoperative inflammation and prevention of ocular pain in patients undergoing cataract surgery.
Lupin rose 0.2% at Rs 1,543.85. Lupin and Novartis Healthcare (NHPL) have entered into a co-marketing agreement to promote Novartis' Indacaterol/Glycopyrronium 110mcg/50mcg inhaler, used for a treatment of chronic obstructive pulmonary disease (COPD) under the brand name of Loftair in India. The announcement was made during market hours on Monday, 11 April 2016.
Dr Reddy's Laboratories gained 2.13% at Rs 3,100.60. The company before market hours on Tuesday, 12 April 2016 said that its buyback offer will commence on 18 April 2016. The buyback is proposed to be completed within a maximum period of six months from the date of opening of the buyback. The company has set aside a maximum amount of Rs 1569.41 crore for the buyback offer, which is 14.9% of the total paid up share capital and free reserves of the company as on 31 March 2015.
The maximum buyback price is fixed at Rs 3,500 per equity share.
The S&P BSE Healthcare index rose 1.81% during the week.
Tata Motors surged 9.76% at Rs 408.55. The company during market hours on Monday, 11 April 2016, said that its global wholesales including Jaguar Land Rover (JLR) rose 11% to 1.18 lakh units in March 2016 over March 2015.
L&T rose 3.77% at Rs 1,235.55. L&T announced during market hours on Monday, 11 April 2016, that its wholly owned subsidiary L&T Hydrocarbon Engineering (LTHE) has won two orders valued at approximately $370 million from Petroleum Development Oman LLC.
The company announced after market hours on Tuesday, 12 April 2016, that its subsidiary Larsen & Toubro Infotech (L&T Infotech) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) on 12 April 2016 in order to undertake an initial public offer (IPO) of its equity shares of face value of Re 1 each. The offer comprises of an offer for sale (OFS) of up to 1.75 crore equity shares by L&T.
Shares of state-run power equipment major Bharat Heavy Electricals (Bhel) jumped 8.9% at Rs 133.35. With respect to news report of NTPC's joint venture utility in Bangladesh awarding engineering, procurement and construction contract to Bhel for an estimated value of $2.4 billion, Bhel clarified during market hours on Tuesday, 12 April 2016, that the contract for the 1,320 megawatts Maitree Power Project in Bangladesh is yet to be signed. The financial closure is under process.
Tata Steel rose 3.21% at Rs 332.60. The company after market hours on Monday, 11 April 2016, announced that its British subsidiary Tata Steel UK has signed an agreement to sell its long products Europe business for a nominal consideration. The sale for a nominal consideration to the family investment office Greybull Capital would be in exchange for Greybull Capital taking on the whole of the business, including assets and relevant liabilities, and securing an appropriate funding package, Tata Steel UK said. Separately, Tata Steel Europe announced that the company has commenced the formal process for divestment of its entire holding in its British subsidiary Tata Steel UK.
Tata Steel after market hours on Friday, 8 April 2016, said its total steel sales increased 12.87% to 27.18 lakh tonnes in Q4 March 2016 over Q4 March 2015.
Bharti Airtel surged 5.23% at Rs 351.80. The company said after market hours on Friday, 8 April 2016, that it would pay Rs 3500 crore to acquire rights to use 4G spectrum of Aircel in eight telecom circles.
The company announced after market hours on Monday, 11 April 2016 that its subsidiary Airtel M Commerce Services (AMSL) has been granted payments bank license from Reserve Bank of India on 11 April 2016.
Shares of state-run coal mining major Coal India (CIL) fell 1.26% at Rs 276.95. The company announced during market hours on Tuesday, 12 April 2016 that its board of directors has accorded its approval for giving up performance incentive for supply of higher grades of coal in the model fuel supply agreement for power and non-power sector with immediate effect with a view to improve lifting of coal.
The India Meteorological Department (IMD) said in its initial monsoon forecast that the southwest monsoon is likely to be 106% of the Long Period Average (LPA) during the four-month period from June to September 2016, with an error margin of plus/minus 5%. According to the weather office, there is 34% probability of above normal rains, 30% probability each of excess and normal rains, 5% probability of below normal rains and 1% probability of deficient rains. The IMD's announcement hit the market after trading hours on Tuesday, 12 April 2016.
On the macro front, data released by the government after market hours on Tuesday, 12 April 2016, showed that inflation based on consumer price index (CPI) dipped to six-month low of 4.83% in March 2016, with the index easing for second straight month. The CPI inflation for February 2016 was revised slightly upward to 5.26% from the provisional figure of 5.18% reported earlier. The core CPI inflation fell to 4.54% in March 2016 from 4.79% in February 2016.
Another data released by the government after market hours on Tuesday, 12 April 2016 showed that industrial production rose 2% in February 2016 over February 2015, snapping consistent decline for last three straight months.
On the global front, data released on Wednesday, 13 April 2016 showed stronger-than-expected growth in China's exports. China's exports rose 11.5% in March year-over-year in dollar terms. Imports declined 7.6%, compared with February's 13.8% drop.
In US, the New York Federal Reserve President William Dudley on Friday, 8 April 2016, said that the US central bank must maintain a cautious and gradual approach to raising interest rates.
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