Market gains on positive global cues
The market rose last week mirroring gains in the global markets. Investors' risk appetite improved after the US Federal Reserve left interest rates unchanged and projected a less aggressive path for hikes next year and in 2018. Concluding a two-day meeting, the Federal Open Market Committee (FOMC) announced that the federal funds rate will remain at 0.25% to 0.5%. The Fed also said risks to the economy have diminished since its last meeting in July. The Fed last raised rates in December 2015, the first hike in almost a decade.
In the week ended Friday, 23 September 2016, the Sensex rose 69.19 points or 0.24% to settle at 28,668.22. The gains for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty rose 51.70 points or 0.59% to settle at 8,831.55. The BSE Mid-Cap index rose 281.46 points or 2.16% to settle at 13,331.97. The BSE Small-Cap index rose 194.03 points or 1.52% to settle at 12,958.90. Both these indices outperformed the Sensex.
Trading for the week began on a dull note as key benchmark indices settled with small gains in a lacklustre trading session on Monday, 19 September 2016. The barometer index, the S&P BSE Sensex, rose 35.47 points or 0.12% to settle at 28,634.50. The gains for the Nifty 50 index were higher than those for the Sensex in percentage terms. The Nifty rose 28.55 points or 0.33% to settle at 8,808.40.
Auto, telecom sector stocks and index heavyweight Infosys led modest losses for key benchmark indices on Tuesday, 20 September 2016. The barometer index, the S&P BSE Sensex, fell 111.30 points or 0.39% to settle at 28,523.20. The Nifty 50 index fell 32.50 points or 0.37% to settle at 8,775.90. Weakness in global stocks weighed on sentiment on the domestic bourses.
Key benchmark indices ended near the flat line after holding positive zone for most part of the session on Wednesday, 21 September 2016. The barometer index, the S&P BSE Sensex, fell 15.78 points or 0.06% to settle at 28,507.42. The Nifty 50 index rose 1.25 points or 0.01% to settle at 8,777.15. With minuscule losses, the Sensex hit its lowest closing level in almost a week.
Banking, auto sector stocks and index heavyweights Reliance Industries and HDFC led decent gains for key benchmark indices on Thursday, 22 September 2016. The barometer index, the S&P BSE Sensex, rose 265.71 points or 0.93% to settle at 28,773.13. The gains for the Nifty 50 index were higher than those for the Sensex in percentage terms. The Nifty rose 90.30 points or 1.03% to settle at 8,867.45.
Banking, telecom sector stocks and index heavyweight Infosys led modest losses for key benchmark indices in a lacklustre trading session on Friday, 23 September 2016. The barometer index, the S&P BSE Sensex, lost 104.91 points or 0.36% to settle at 28,668.22. The Nifty 50 index lost 35.90 points or 0.4% to settle at 8,831.55.
Among the 30 Sensex shares, 19 rose, 10 shares fell and one stock was unchanged.
State-run ONGC was the biggest sensex gainer last week. The stock rose 3.66% to Rs 260.50.
Index heavyweight Reliance Industries rose 2.54% at Rs 1,102.95.
Tata Steel rose 3.58% to Rs 371.90.
Index heavyweight and cigarette major ITC fell 2.52% to Rs 253.85.
Index heavyweight and IT major Infosys fell 1.64% to Rs 1,043.
Asian Paints rose 2.89% to Rs 1,189.35 after Asian Paints (International) transferred its entire stake in Asian Paints (Lanka) to Berger International. Asian Paints said that as a part of the company's plan to consolidate its investments in the overseas subsidiaries, Asian Paints (International) (APIL), Mauritius, a wholly owned subsidiary of the company, has transferred its entire holding of 99.18% held in the subsidiary company, Asian Paints (Lanka), Sri Lanka, to Berger International, Singapore, a wholly owned subsidiary of APIL. The transfer process has been completed on 19 September 2016.
ICICI Bank fell 1.36% to Rs 271.80. The initial public offer (IPO) of private sector life insurance company ICICI Prudential Life Insurance Company saw strong demand from investors. The IPO of ICICI Prudential Life Insurance Company (ICICI Prudential) ended with strong demand from investors. The issue received bids for 138.77 crore shares and it was subscribed 10.48 times. The bidding for the IPO concluded on 21 September 2016. The IPO had opened for bidding on 19 September 2016. The price band for the IPO was Rs 300 to Rs 334 per share. The IPO comprised sale of up to 18.13 crore equity shares of ICICI Prudential, representing about 12.63% of its equity share capital for cash, through an offer for sale (OFS) by ICICI Bank. The entire proceeds from the OFS will be paid to ICICI Bank.
HDFC Bank rose 1.16% to Rs 1,313.15 after the bank said that it has allotted 67,000 senior, unsecured, redeemable, long-term non-convertible bonds in the nature of debentures having face value of Rs 10 lakh each amounting to Rs 6700 crore on a private placement basis. The announcement was made on Thursday, 22 September 2016.
Axis Bank was the top Sensex loser last week. The stock fell 7.28% to Rs 557.40. The bank signed a Share Purchase Agreement with IFCI for acquisition of 73.28 lakh equity shares (13.67% of total outstanding shares) of face value of Rs 10 per share in Assets Care and Reconstruction Enterprise (ACRE) from IFCI at Rs 31 per share, resulting in a total cash consideration of Rs 22.72 crore. The transaction is subject to requisite regulatory approvals, including from Reserve Bank of India (RBI), Axis Bank said. The indicative time period for completion of transaction is January 2017, the bank said. ACRE had total assets of Rs 336 crore and total income of Rs 35.90 crore in the year ended 31 March 2016 (FY 2016). ACRE was registered with RBI as a securitisation company. The announcement was made after market hours on Friday, 16 September 2016.
Housing finance major HDFC rose 1.49% to Rs 1,421.15 after the company announced that it intends to raise Rs 1340 crore through issue of non-convertible debentures on private placement basis. The debentures of face value of Rs 1 crore will carry a coupon rate of 7.67% per annum and will have a tenor of 1 year 2 months. The object of the issue is to augment the long term resources of the company. The proceeds of the issue would be utilised for financing/refinancing the housing finance business requirements of the company. The issue opened on Friday, 23 September 2016 and closed on the same day.
Engineering and construction major L&T rose 1.44% to Rs 1,496.80. The company signed the principle contract with Vietnam Border Guard valued at $99.7 million for design and construction of high speed patrol vessels in India. The announcement was made on Thursday, 22 September 2016.
Shares of L&T Technology Services settled at Rs 865.10 on BSE, at a premium of 0.59% over the initial public offer (IPO) price of Rs 860 per share on its debut on the bourses on Friday, 23 September 2016. The stock made its debut at Rs 900, a premium of 4.65% over the IPO price. The company had priced the IPO at Rs 860 per share, the top end of the Rs 850-860 per share price band for the IPO. The IPO which closed on 15 September 2016 received strong response from investors. The IPO comprised of an offer for sale of 1.04 crore shares by engineering and construction major L&T. L&T Technology Services did not receive any funds from the IPO. L&T's stake in L&T Technology Services has fallen to 89.77% from 100% earlier after the IPO.
Dr Reddy's Laboratories rose 0.95% to Rs 3,181.10 after the company launched Paricalcitol injection, USP, a therapeutic equivalent generic version of Zemplar (Paricalcitol) injection in the United States market approved by the US Food & Drug Administration (USFDA). The Zemplar brand and generic had US sales of approximately $22.5 million MAT for the most recent twelve months ending in July 2016 according to IMS Health. Dr. Reddy's Paricalcitol Injection is available in 2 mcg, 5 mcg, and 10 mcg, and is the first ANDA product launched in the US market. The announcement was made on Monday, 19 September 2016.
Drug major Lupin fell 3.21% to Rs 1,488.75.
Car major Maruti Suzuki India (Maruti) rose 0.65% at Rs 5,602.20. The company said it has attained cumulative exports of 15 lakh vehicles. In 2015-16, the top five exported models for the company were Alto, Swift, Celerio, Baleno and Ciaz. Among destinations, Sri Lanka, Chile, Philippines, Peru and Bolivia emerged as the top markets for Maruti Suzuki export models. The newly launched light commercial vehicle, Super Carry, is also exported to South Africa and Tanzania and will be exported to SAARC countries in the future, Maruti said. The announcement was made on Friday, 23 September 2016.
State-run Power Grid Corporation of India rose 0.14% to Rs 175.80. The company said that its board of directors at a meeting held on 16 September 2016 accorded investment approval for "System Strengthening in Southern Region - XXI" at an estimated cost of Rs 562.25 crore, with commissioning schedule of 30 months progressively from the date of investment approval. The announcement was made after market hours on Friday, 16 September 2016.
On the macro front, the Union Cabinet on Wednesday, 21 September 2016, approved the proposals of Ministry of Finance on certain landmark budgetary reforms including the merger of Railway budget with the Union Budget, the advancement of the date of Budget presentation from the last day of February to the 1st of February every year and the merger of the Plan and the Non-Plan classification in the Budget and Accounts. The presentation of a unified budget will bring the affairs of the Railways to centre stage and present a holistic picture of the financial position of the Government, according to a government statement. Consequent to the merger, the appropriations for Railways will form part of the main Appropriation Bill.
The advancement of budget presentation by a month and completion of Budget related legislative business before 31 March would pave the way for early completion of Budget cycle and enable Ministries and Departments to ensure better planning and execution of schemes from the beginning of the financial year and utilization of the full working seasons including the first quarter. The exact date of presentation of Budget for 2017-18 would be decided keeping in view the date of assembly elections to be held in States. Meanwhile, the merger of plan and non-plan expenditure in the budget is expected to provide appropriate budgetary framework having focus on the revenue, and capital expenditure.
Separately, the Union Cabinet on Wednesday, 21 September 2016, gave its approval for raising a total of Rs 31300 crore in the current financial year (FY 2017) and to service the principal and interest against the Extra Budgetary Resources (EBR) of Rs 16300 crore by Government of India (GoI) to augment infrastructure spending. The move is intended to supplement the efforts of the government to improve infrastructure spending and to improve the revenue-capital mix of the expenditure for a more sustainable growth.
Meanwhile, the government on Thursday, 22 September 2016, named three outside experts as members of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI). The Appointments Committee of the Cabinet approved the names of Chetan Ghate, a professor at Indian Statistical Institute; Pami Dua, director at Delhi School of Economics (DSE); and Ravindra Dholakia, professor at Indian Institute of Management, Ahmedabad, as MPC members. The six-member MPC—the other three members are from RBI—will conduct its first monetary policy review on 4 October 2016. The members of the committee from RBI are Governor Urjit Patel, deputy governor R. Gandhi, who is also in charge of the monetary policy, and executive director Michael Patra. The RBI governor will have a casting vote in case of a tie.
Data released by the Reserve Bank of India (RBI) after trading hours on Wednesday, 21 September 2016, showed that India's current account deficit (CAD) narrowed to $0.3 billion or 0.1% of GDP in Q1 June 2016, which was significantly lower than CAD of $6.1 billion or 1.2% of GDP in Q1 June 2015. The contraction in the CAD was primarily on account of a lower trade deficit.
In the week ended Friday, 23 September 2016, the Sensex rose 69.19 points or 0.24% to settle at 28,668.22. The gains for the Nifty 50 index were higher in percentage terms than those for the Sensex. The Nifty rose 51.70 points or 0.59% to settle at 8,831.55. The BSE Mid-Cap index rose 281.46 points or 2.16% to settle at 13,331.97. The BSE Small-Cap index rose 194.03 points or 1.52% to settle at 12,958.90. Both these indices outperformed the Sensex.
Trading for the week began on a dull note as key benchmark indices settled with small gains in a lacklustre trading session on Monday, 19 September 2016. The barometer index, the S&P BSE Sensex, rose 35.47 points or 0.12% to settle at 28,634.50. The gains for the Nifty 50 index were higher than those for the Sensex in percentage terms. The Nifty rose 28.55 points or 0.33% to settle at 8,808.40.
Auto, telecom sector stocks and index heavyweight Infosys led modest losses for key benchmark indices on Tuesday, 20 September 2016. The barometer index, the S&P BSE Sensex, fell 111.30 points or 0.39% to settle at 28,523.20. The Nifty 50 index fell 32.50 points or 0.37% to settle at 8,775.90. Weakness in global stocks weighed on sentiment on the domestic bourses.
Key benchmark indices ended near the flat line after holding positive zone for most part of the session on Wednesday, 21 September 2016. The barometer index, the S&P BSE Sensex, fell 15.78 points or 0.06% to settle at 28,507.42. The Nifty 50 index rose 1.25 points or 0.01% to settle at 8,777.15. With minuscule losses, the Sensex hit its lowest closing level in almost a week.
Banking, auto sector stocks and index heavyweights Reliance Industries and HDFC led decent gains for key benchmark indices on Thursday, 22 September 2016. The barometer index, the S&P BSE Sensex, rose 265.71 points or 0.93% to settle at 28,773.13. The gains for the Nifty 50 index were higher than those for the Sensex in percentage terms. The Nifty rose 90.30 points or 1.03% to settle at 8,867.45.
Banking, telecom sector stocks and index heavyweight Infosys led modest losses for key benchmark indices in a lacklustre trading session on Friday, 23 September 2016. The barometer index, the S&P BSE Sensex, lost 104.91 points or 0.36% to settle at 28,668.22. The Nifty 50 index lost 35.90 points or 0.4% to settle at 8,831.55.
Among the 30 Sensex shares, 19 rose, 10 shares fell and one stock was unchanged.
State-run ONGC was the biggest sensex gainer last week. The stock rose 3.66% to Rs 260.50.
Index heavyweight Reliance Industries rose 2.54% at Rs 1,102.95.
Tata Steel rose 3.58% to Rs 371.90.
Index heavyweight and cigarette major ITC fell 2.52% to Rs 253.85.
Index heavyweight and IT major Infosys fell 1.64% to Rs 1,043.
Asian Paints rose 2.89% to Rs 1,189.35 after Asian Paints (International) transferred its entire stake in Asian Paints (Lanka) to Berger International. Asian Paints said that as a part of the company's plan to consolidate its investments in the overseas subsidiaries, Asian Paints (International) (APIL), Mauritius, a wholly owned subsidiary of the company, has transferred its entire holding of 99.18% held in the subsidiary company, Asian Paints (Lanka), Sri Lanka, to Berger International, Singapore, a wholly owned subsidiary of APIL. The transfer process has been completed on 19 September 2016.
ICICI Bank fell 1.36% to Rs 271.80. The initial public offer (IPO) of private sector life insurance company ICICI Prudential Life Insurance Company saw strong demand from investors. The IPO of ICICI Prudential Life Insurance Company (ICICI Prudential) ended with strong demand from investors. The issue received bids for 138.77 crore shares and it was subscribed 10.48 times. The bidding for the IPO concluded on 21 September 2016. The IPO had opened for bidding on 19 September 2016. The price band for the IPO was Rs 300 to Rs 334 per share. The IPO comprised sale of up to 18.13 crore equity shares of ICICI Prudential, representing about 12.63% of its equity share capital for cash, through an offer for sale (OFS) by ICICI Bank. The entire proceeds from the OFS will be paid to ICICI Bank.
HDFC Bank rose 1.16% to Rs 1,313.15 after the bank said that it has allotted 67,000 senior, unsecured, redeemable, long-term non-convertible bonds in the nature of debentures having face value of Rs 10 lakh each amounting to Rs 6700 crore on a private placement basis. The announcement was made on Thursday, 22 September 2016.
Axis Bank was the top Sensex loser last week. The stock fell 7.28% to Rs 557.40. The bank signed a Share Purchase Agreement with IFCI for acquisition of 73.28 lakh equity shares (13.67% of total outstanding shares) of face value of Rs 10 per share in Assets Care and Reconstruction Enterprise (ACRE) from IFCI at Rs 31 per share, resulting in a total cash consideration of Rs 22.72 crore. The transaction is subject to requisite regulatory approvals, including from Reserve Bank of India (RBI), Axis Bank said. The indicative time period for completion of transaction is January 2017, the bank said. ACRE had total assets of Rs 336 crore and total income of Rs 35.90 crore in the year ended 31 March 2016 (FY 2016). ACRE was registered with RBI as a securitisation company. The announcement was made after market hours on Friday, 16 September 2016.
Housing finance major HDFC rose 1.49% to Rs 1,421.15 after the company announced that it intends to raise Rs 1340 crore through issue of non-convertible debentures on private placement basis. The debentures of face value of Rs 1 crore will carry a coupon rate of 7.67% per annum and will have a tenor of 1 year 2 months. The object of the issue is to augment the long term resources of the company. The proceeds of the issue would be utilised for financing/refinancing the housing finance business requirements of the company. The issue opened on Friday, 23 September 2016 and closed on the same day.
Engineering and construction major L&T rose 1.44% to Rs 1,496.80. The company signed the principle contract with Vietnam Border Guard valued at $99.7 million for design and construction of high speed patrol vessels in India. The announcement was made on Thursday, 22 September 2016.
Shares of L&T Technology Services settled at Rs 865.10 on BSE, at a premium of 0.59% over the initial public offer (IPO) price of Rs 860 per share on its debut on the bourses on Friday, 23 September 2016. The stock made its debut at Rs 900, a premium of 4.65% over the IPO price. The company had priced the IPO at Rs 860 per share, the top end of the Rs 850-860 per share price band for the IPO. The IPO which closed on 15 September 2016 received strong response from investors. The IPO comprised of an offer for sale of 1.04 crore shares by engineering and construction major L&T. L&T Technology Services did not receive any funds from the IPO. L&T's stake in L&T Technology Services has fallen to 89.77% from 100% earlier after the IPO.
Dr Reddy's Laboratories rose 0.95% to Rs 3,181.10 after the company launched Paricalcitol injection, USP, a therapeutic equivalent generic version of Zemplar (Paricalcitol) injection in the United States market approved by the US Food & Drug Administration (USFDA). The Zemplar brand and generic had US sales of approximately $22.5 million MAT for the most recent twelve months ending in July 2016 according to IMS Health. Dr. Reddy's Paricalcitol Injection is available in 2 mcg, 5 mcg, and 10 mcg, and is the first ANDA product launched in the US market. The announcement was made on Monday, 19 September 2016.
Drug major Lupin fell 3.21% to Rs 1,488.75.
Car major Maruti Suzuki India (Maruti) rose 0.65% at Rs 5,602.20. The company said it has attained cumulative exports of 15 lakh vehicles. In 2015-16, the top five exported models for the company were Alto, Swift, Celerio, Baleno and Ciaz. Among destinations, Sri Lanka, Chile, Philippines, Peru and Bolivia emerged as the top markets for Maruti Suzuki export models. The newly launched light commercial vehicle, Super Carry, is also exported to South Africa and Tanzania and will be exported to SAARC countries in the future, Maruti said. The announcement was made on Friday, 23 September 2016.
State-run Power Grid Corporation of India rose 0.14% to Rs 175.80. The company said that its board of directors at a meeting held on 16 September 2016 accorded investment approval for "System Strengthening in Southern Region - XXI" at an estimated cost of Rs 562.25 crore, with commissioning schedule of 30 months progressively from the date of investment approval. The announcement was made after market hours on Friday, 16 September 2016.
On the macro front, the Union Cabinet on Wednesday, 21 September 2016, approved the proposals of Ministry of Finance on certain landmark budgetary reforms including the merger of Railway budget with the Union Budget, the advancement of the date of Budget presentation from the last day of February to the 1st of February every year and the merger of the Plan and the Non-Plan classification in the Budget and Accounts. The presentation of a unified budget will bring the affairs of the Railways to centre stage and present a holistic picture of the financial position of the Government, according to a government statement. Consequent to the merger, the appropriations for Railways will form part of the main Appropriation Bill.
The advancement of budget presentation by a month and completion of Budget related legislative business before 31 March would pave the way for early completion of Budget cycle and enable Ministries and Departments to ensure better planning and execution of schemes from the beginning of the financial year and utilization of the full working seasons including the first quarter. The exact date of presentation of Budget for 2017-18 would be decided keeping in view the date of assembly elections to be held in States. Meanwhile, the merger of plan and non-plan expenditure in the budget is expected to provide appropriate budgetary framework having focus on the revenue, and capital expenditure.
Separately, the Union Cabinet on Wednesday, 21 September 2016, gave its approval for raising a total of Rs 31300 crore in the current financial year (FY 2017) and to service the principal and interest against the Extra Budgetary Resources (EBR) of Rs 16300 crore by Government of India (GoI) to augment infrastructure spending. The move is intended to supplement the efforts of the government to improve infrastructure spending and to improve the revenue-capital mix of the expenditure for a more sustainable growth.
Meanwhile, the government on Thursday, 22 September 2016, named three outside experts as members of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI). The Appointments Committee of the Cabinet approved the names of Chetan Ghate, a professor at Indian Statistical Institute; Pami Dua, director at Delhi School of Economics (DSE); and Ravindra Dholakia, professor at Indian Institute of Management, Ahmedabad, as MPC members. The six-member MPC—the other three members are from RBI—will conduct its first monetary policy review on 4 October 2016. The members of the committee from RBI are Governor Urjit Patel, deputy governor R. Gandhi, who is also in charge of the monetary policy, and executive director Michael Patra. The RBI governor will have a casting vote in case of a tie.
Data released by the Reserve Bank of India (RBI) after trading hours on Wednesday, 21 September 2016, showed that India's current account deficit (CAD) narrowed to $0.3 billion or 0.1% of GDP in Q1 June 2016, which was significantly lower than CAD of $6.1 billion or 1.2% of GDP in Q1 June 2015. The contraction in the CAD was primarily on account of a lower trade deficit.
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