Thursday, September 29, 2016
THE END SESSION ( 29 - 09 - 2016 )
Sensex settles at almost 5-week low below 28,000 mark
Key benchmark indices suffered steep losses on geopolitical concerns after Indian Army in a press conference today, 29 September 2016 revealed that India conducted surgical strikes against terror launchpads inside Pakistan occupied Kashmir late last night. The barometer index, the S&P BSE Sensex slumped 465.28 points or 1.64% to settle at 27,827.53. The Nifty 50 index lost 153.90 points or 1.76% to settle at 8,591.25. The Sensex settled below the psychological 28,000 mark after falling below that mark in afternoon trade. The Sensex and the Nifty, both, settled at their lowest level in almost five weeks. All the nineteen sectoral indices on BSE were in the red.
The Indian Army conducted surgical strikes on terror launch pads yesterday, 28 September 2016 night across the Line of Control (LoC) in Pakistan, killing several terrorists and causing significant casualties to their hideouts. The press conference was jointly conducted by the Ministry of External Affairs and the Ministry of Defence. Based on very specific and credible information which Army received yesterday that some terrorist teams had positioned itself along the line of control, the Army carried out surgical strikes last night at these launch pads. The operations were focused to ensure that these terrorists do not succeed in endangering lives of citizens in India. The Pakistani military reportedly said no such strike had taken place but that there had been an exchange of firing at the frontier.
The Sensex slumped 465.28 points or 1.64% to settle at 27,827.53, its lowest closing level since 26 August 2016. The Sensex slumped 572.89 points or 2.02% at the day's low of 27,719.92. The barometer index gained 182.76 points or 0.64% at the day's high of 28,475.57.
The Nifty 50 index lost 153.90 points or 1.76% to settle at 8,591.25, its lowest closing level since 26 August 2016. The Nifty dropped 186.90 points or 2.13% at the day's low of 8,558.25. The index gained 55.50 points or 0.63% at the day's high of 8,800.65.
The broad market depicted weakness. There were more than five losers against every gainer on BSE. 2,297 shares fell and 442 shares rose. A total of 192 shares were unchanged. The BSE Mid-Cap index fell 3.6%. The BSE Small-Cap index lost 4.02%. The fall in both these indices was higher than Sensex's decline in percentage terms.
In overseas stock markets, global stocks rose after the Organization of the Petroleum Exporting Countries (OPEC) took an important step toward a cap on crude-oil output, which helped in lifting oil prices. OPEC said yesterday, 28 September 2016 that it would reduce output to a range of 32.5-33.0 million barrels per day (bpd), a reduction of 0.7-2.2% from OPEC estimates of its current output at 33.24 million bpd. In economic data, US orders for durable or long-lasting goods flattened out in August after a sizable gain in the prior month, pointing to ongoing difficulties for American manufacturers.
The total turnover on BSE amounted to Rs 5413.86 crore, higher than turnover of Rs 2932.59 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Realty index (down 6.31%), the S&P BSE Power index (down 4.11%), the S&P BSE Utilities index (down 3.49%), the S&P BSE Basic Materials index (down 3.48%), the S&P BSE Industrials index (down 3.29%), the S&P BSE Healthcare index (down 3.26%), the S&P BSE Metal index (down 3.17%), the S&P BSE Consumer Durables index (down 2.84%), the S&P BSE Finance index (down 2.66%), the S&P BSE Capital Goods index (down 2.5%), the S&P BSE Consumer Discretionary Goods & Services index (down 2.46%), the S&P BSE Bankex (down 2.43%), the S&P BSE Telecom index (down 2.17%), the S&P BSE Auto index (down 2.16%), the S&P BSE Oil & Gas index (down 1.9%) and the S&P BSE Energy index (down 1.7%), underperformed the Sensex. The S&P BSE FMCG index (down 1.54%), the S&P BSE Teck index (down 1.04%) and the S&P BSE IT index (down 0.96%), outperformed the Sensex.
IT major TCS was the lone gainer in the 30-share Sensex pack. TCS rose 0.46% to Rs 2,434.60.
Index heavyweight and housing finance major HDFC lost 1.61% to Rs 1,400.10. The stock hit high of Rs 1,432.45 and low of Rs 1,392.55 in intraday trade.
Index heavyweight Reliance Industries lost 1.57% to Rs 1,072.55. The stock hit high of Rs 1,110 and low of Rs 1,067.50 in intraday trade.
Pharma shares declined. Aurobindo Pharma (down 4.98%), Cadila Healthcare (down 3.18%), Cipla (down 0.73%), Dr Reddy's Laboratories (down 2.12%), Glenmark Pharmaceuticals (down 4.19%), Sun Pharmaceutical Industries (down 3.84%), Alkem Laboratories (down 2.05%), GlaxoSmithKline Pharmaceuticals (down 0.9%) declined.
Wockhardt lost 4.68%. The company announced that inspection of the company's manufacturing unit at L-1, Chikalthana, Aurangabad, Maharashtra by UK Medicines and Healthcare products Regulatory Agency (MHRA) has since been completed without any critical observations and the approval status of the said unit continues. The announcement was made during trading hours today, 29 September 2016.
Bank stocks declined. Among private sector banks, Axis Bank (down 1.89%), HDFC Bank (down 1.39%), ICICI Bank (down 3.76%), Yes Bank (down 2.99%), RBL Bank (down 4.2%), Federal Bank (down 6.82%), Kotak Mahindra Bank (down 1.32%), and IndusInd Bank (down 1.72%) edged lower.
Among public sector banks, Bank of India (down 8.08%), Bank of Baroda (down 4.01%), Syndicate Bank (down 5.03%), Punjab National Bank (down 6.59%), Corporation Bank (down 7.49%), Allahabad Bank (down 6.81%), State Bank of India (SBI) (down 2.5%), UCO Bank (down 5.83%), Union Bank of India (down 6.83%), and United Bank of India (down 5.81%) edged lower.
Metal and mining stocks fell. Steel Authority of India (Sail) (down 7.08%), National Aluminium Company (down 3.99%), Vedanta (down 3.32%), JSW Steel (down 5.26%), Tata Steel (down 3.63%), Hindustan Zinc (down 1.67%), Jindal Steel & Power (down 8.4%), Hindalco Industries (down 3.91%) and NMDC (down 6.24%) edged lower.
Hindustan Copper fell 5.28% to Rs 61.90 as the offer for sale by the Government of India through the stock exchanges mechanism began today, 29 September 2016. The government is offering a 7% stake in the company through a two-day offer for sale (OFS) which ends tomorrow, 30 September 2016. The government has set a floor price of Rs 62 per share, a 5.12% discount to the stock's Wednesday's closing share price of Rs 65.35 on BSE. While the trading window is open for non-institutional investors today, 29 September 2016, retail investors can subscribe tomorrow, 30 September 2016. Retail investors will be allocated shares at a 5% discount to the cut-off price, the company said. The OFS, comprising 6.47 crore shares, will help the government raise Rs 401.54 crore. The government's stake will decline to 82.95% following the sale. The Government of India holds 89.95% stake in Hindustan Copper (as per shareholding pattern as on 30 June 2016). The announcement was made after market hours yesterday, 28 September 2016.
L&T fell 1.29%. The company said its construction arm won orders worth Rs 2046 crore across various business segments. The announcement was made during trading hours today, 29 September 2016.
Realty stocks slumped. DLF (down 8.97%), Indiabulls Real Estate (down 8.27%), Unitech (down 4.9%), Godrej Properties (down 0.65%), Housing Development & Infrastructure (HDIL) (down 8.35%), Sobha (down 4.53%), and Omaxe (down 1.39%) edged lower.
Marathon Nextgen Realty lost 10.35% to Rs 236.35. The company's were listed and admitted to dealings on the National Stock Exchange of India with effect from today, 29 September 2016. Shares of Marathon Nextgen Realty had gained 10.06% to settle at Rs 263.65 yesterday, 28 September 2016 after the company said that shares of the company will be listed and admitted to dealings on the National Stock Exchange of India with effect from 29 September 2016. The announcement was made during market hours on 28 September 2016.
Lupin declined 3.2%. The company announced that it has received final approval for its Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg from the United States Food and Drug Administration (USFDA) to market a generic version of Allergan's Namenda XR Capsules, 7 mg, 14 mg, 21 mg, and 28 mg.
Lupin's Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg are the AB rated generic equivalent of Allergan's Namenda XR Capsules, 7 mg, 14 mg, 21 mg, and 28 mg. Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg are indicated for treatment of moderate to severe dementia of the Alzheimer's type. Namenda XR Capsules had annual sales of $1.22 billion in US as per IMS MAT June 2016.The announcement was made during market hours today, 29 September 2016.
Shares of ICICI Prudential Life Insurance Company settled at Rs 297.65 on BSE, a discount of 10.88% over the initial public offer price of Rs 334. The stock debuted at Rs 329, a discount of 1.5% to the initial public offer (IPO) price. So far the stock hit a high of Rs 333.90 and low of Rs 295.50. On BSE, 1.27 crore shares were traded on the counter. ICICI Prudential Life Insurance Company had priced the IPO at the top end of the Rs 300 to Rs 334 price band. The bidding for the IPO concluded on 21 September 2016. The issue received bids for 138.77 crore shares and it was subscribed 10.48 times. ICICI Prudential is the largest private sector life insurer in India by total premium and assets under management at 31 March 2016. ICICI Prudential is a joint venture between ICICI Bank and Prudential Corporation Holdings, a part of the Prudential Group, an international financial services group. The company is one of the first private sector life insurance companies in India. It commenced operations in October 2000 and offers a range of life insurance, health insurance and pension products and services.
Eros International Media fell 2.55%. The company said it tied up with UAE's Phars Film for co-production and distribution of Malayalam movies. The company announced its association with UAE's largest film distribution and exhibition network (Hollywood & Bollywood), Phars Film. The partnership will entail the two companies jointly co-producing Malayalam films along with exploration of theatrical rights between the two entities. The deal licenses Eros to exploit the distribution of all Malayalam movies produced jointly in India, while Phars Films would present the same overseas where it enjoys a dominant market share. The announcement was made after market hours yesterday, 28 September 2016.
CEAT fell 2.28%. Amansa Holding Pte bought 4.75 lakh shares or 1.17% stake in CEAT through secondary market purchase. After the latest stake buy, Amansa Holding Pte's stake in CEAT rose to 5.19%. The company made the announcement after trading hours yesterday, 28 September 2016.
The Indian Army conducted surgical strikes on terror launch pads yesterday, 28 September 2016 night across the Line of Control (LoC) in Pakistan, killing several terrorists and causing significant casualties to their hideouts. The press conference was jointly conducted by the Ministry of External Affairs and the Ministry of Defence. Based on very specific and credible information which Army received yesterday that some terrorist teams had positioned itself along the line of control, the Army carried out surgical strikes last night at these launch pads. The operations were focused to ensure that these terrorists do not succeed in endangering lives of citizens in India. The Pakistani military reportedly said no such strike had taken place but that there had been an exchange of firing at the frontier.
The Sensex slumped 465.28 points or 1.64% to settle at 27,827.53, its lowest closing level since 26 August 2016. The Sensex slumped 572.89 points or 2.02% at the day's low of 27,719.92. The barometer index gained 182.76 points or 0.64% at the day's high of 28,475.57.
The Nifty 50 index lost 153.90 points or 1.76% to settle at 8,591.25, its lowest closing level since 26 August 2016. The Nifty dropped 186.90 points or 2.13% at the day's low of 8,558.25. The index gained 55.50 points or 0.63% at the day's high of 8,800.65.
The broad market depicted weakness. There were more than five losers against every gainer on BSE. 2,297 shares fell and 442 shares rose. A total of 192 shares were unchanged. The BSE Mid-Cap index fell 3.6%. The BSE Small-Cap index lost 4.02%. The fall in both these indices was higher than Sensex's decline in percentage terms.
In overseas stock markets, global stocks rose after the Organization of the Petroleum Exporting Countries (OPEC) took an important step toward a cap on crude-oil output, which helped in lifting oil prices. OPEC said yesterday, 28 September 2016 that it would reduce output to a range of 32.5-33.0 million barrels per day (bpd), a reduction of 0.7-2.2% from OPEC estimates of its current output at 33.24 million bpd. In economic data, US orders for durable or long-lasting goods flattened out in August after a sizable gain in the prior month, pointing to ongoing difficulties for American manufacturers.
The total turnover on BSE amounted to Rs 5413.86 crore, higher than turnover of Rs 2932.59 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Realty index (down 6.31%), the S&P BSE Power index (down 4.11%), the S&P BSE Utilities index (down 3.49%), the S&P BSE Basic Materials index (down 3.48%), the S&P BSE Industrials index (down 3.29%), the S&P BSE Healthcare index (down 3.26%), the S&P BSE Metal index (down 3.17%), the S&P BSE Consumer Durables index (down 2.84%), the S&P BSE Finance index (down 2.66%), the S&P BSE Capital Goods index (down 2.5%), the S&P BSE Consumer Discretionary Goods & Services index (down 2.46%), the S&P BSE Bankex (down 2.43%), the S&P BSE Telecom index (down 2.17%), the S&P BSE Auto index (down 2.16%), the S&P BSE Oil & Gas index (down 1.9%) and the S&P BSE Energy index (down 1.7%), underperformed the Sensex. The S&P BSE FMCG index (down 1.54%), the S&P BSE Teck index (down 1.04%) and the S&P BSE IT index (down 0.96%), outperformed the Sensex.
IT major TCS was the lone gainer in the 30-share Sensex pack. TCS rose 0.46% to Rs 2,434.60.
Index heavyweight and housing finance major HDFC lost 1.61% to Rs 1,400.10. The stock hit high of Rs 1,432.45 and low of Rs 1,392.55 in intraday trade.
Index heavyweight Reliance Industries lost 1.57% to Rs 1,072.55. The stock hit high of Rs 1,110 and low of Rs 1,067.50 in intraday trade.
Pharma shares declined. Aurobindo Pharma (down 4.98%), Cadila Healthcare (down 3.18%), Cipla (down 0.73%), Dr Reddy's Laboratories (down 2.12%), Glenmark Pharmaceuticals (down 4.19%), Sun Pharmaceutical Industries (down 3.84%), Alkem Laboratories (down 2.05%), GlaxoSmithKline Pharmaceuticals (down 0.9%) declined.
Wockhardt lost 4.68%. The company announced that inspection of the company's manufacturing unit at L-1, Chikalthana, Aurangabad, Maharashtra by UK Medicines and Healthcare products Regulatory Agency (MHRA) has since been completed without any critical observations and the approval status of the said unit continues. The announcement was made during trading hours today, 29 September 2016.
Bank stocks declined. Among private sector banks, Axis Bank (down 1.89%), HDFC Bank (down 1.39%), ICICI Bank (down 3.76%), Yes Bank (down 2.99%), RBL Bank (down 4.2%), Federal Bank (down 6.82%), Kotak Mahindra Bank (down 1.32%), and IndusInd Bank (down 1.72%) edged lower.
Among public sector banks, Bank of India (down 8.08%), Bank of Baroda (down 4.01%), Syndicate Bank (down 5.03%), Punjab National Bank (down 6.59%), Corporation Bank (down 7.49%), Allahabad Bank (down 6.81%), State Bank of India (SBI) (down 2.5%), UCO Bank (down 5.83%), Union Bank of India (down 6.83%), and United Bank of India (down 5.81%) edged lower.
Metal and mining stocks fell. Steel Authority of India (Sail) (down 7.08%), National Aluminium Company (down 3.99%), Vedanta (down 3.32%), JSW Steel (down 5.26%), Tata Steel (down 3.63%), Hindustan Zinc (down 1.67%), Jindal Steel & Power (down 8.4%), Hindalco Industries (down 3.91%) and NMDC (down 6.24%) edged lower.
Hindustan Copper fell 5.28% to Rs 61.90 as the offer for sale by the Government of India through the stock exchanges mechanism began today, 29 September 2016. The government is offering a 7% stake in the company through a two-day offer for sale (OFS) which ends tomorrow, 30 September 2016. The government has set a floor price of Rs 62 per share, a 5.12% discount to the stock's Wednesday's closing share price of Rs 65.35 on BSE. While the trading window is open for non-institutional investors today, 29 September 2016, retail investors can subscribe tomorrow, 30 September 2016. Retail investors will be allocated shares at a 5% discount to the cut-off price, the company said. The OFS, comprising 6.47 crore shares, will help the government raise Rs 401.54 crore. The government's stake will decline to 82.95% following the sale. The Government of India holds 89.95% stake in Hindustan Copper (as per shareholding pattern as on 30 June 2016). The announcement was made after market hours yesterday, 28 September 2016.
L&T fell 1.29%. The company said its construction arm won orders worth Rs 2046 crore across various business segments. The announcement was made during trading hours today, 29 September 2016.
Realty stocks slumped. DLF (down 8.97%), Indiabulls Real Estate (down 8.27%), Unitech (down 4.9%), Godrej Properties (down 0.65%), Housing Development & Infrastructure (HDIL) (down 8.35%), Sobha (down 4.53%), and Omaxe (down 1.39%) edged lower.
Marathon Nextgen Realty lost 10.35% to Rs 236.35. The company's were listed and admitted to dealings on the National Stock Exchange of India with effect from today, 29 September 2016. Shares of Marathon Nextgen Realty had gained 10.06% to settle at Rs 263.65 yesterday, 28 September 2016 after the company said that shares of the company will be listed and admitted to dealings on the National Stock Exchange of India with effect from 29 September 2016. The announcement was made during market hours on 28 September 2016.
Lupin declined 3.2%. The company announced that it has received final approval for its Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg from the United States Food and Drug Administration (USFDA) to market a generic version of Allergan's Namenda XR Capsules, 7 mg, 14 mg, 21 mg, and 28 mg.
Lupin's Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg are the AB rated generic equivalent of Allergan's Namenda XR Capsules, 7 mg, 14 mg, 21 mg, and 28 mg. Memantine Hydrochloride Extended-Release Capsules, 7 mg, 14 mg, 21 mg, and 28 mg are indicated for treatment of moderate to severe dementia of the Alzheimer's type. Namenda XR Capsules had annual sales of $1.22 billion in US as per IMS MAT June 2016.The announcement was made during market hours today, 29 September 2016.
Shares of ICICI Prudential Life Insurance Company settled at Rs 297.65 on BSE, a discount of 10.88% over the initial public offer price of Rs 334. The stock debuted at Rs 329, a discount of 1.5% to the initial public offer (IPO) price. So far the stock hit a high of Rs 333.90 and low of Rs 295.50. On BSE, 1.27 crore shares were traded on the counter. ICICI Prudential Life Insurance Company had priced the IPO at the top end of the Rs 300 to Rs 334 price band. The bidding for the IPO concluded on 21 September 2016. The issue received bids for 138.77 crore shares and it was subscribed 10.48 times. ICICI Prudential is the largest private sector life insurer in India by total premium and assets under management at 31 March 2016. ICICI Prudential is a joint venture between ICICI Bank and Prudential Corporation Holdings, a part of the Prudential Group, an international financial services group. The company is one of the first private sector life insurance companies in India. It commenced operations in October 2000 and offers a range of life insurance, health insurance and pension products and services.
Eros International Media fell 2.55%. The company said it tied up with UAE's Phars Film for co-production and distribution of Malayalam movies. The company announced its association with UAE's largest film distribution and exhibition network (Hollywood & Bollywood), Phars Film. The partnership will entail the two companies jointly co-producing Malayalam films along with exploration of theatrical rights between the two entities. The deal licenses Eros to exploit the distribution of all Malayalam movies produced jointly in India, while Phars Films would present the same overseas where it enjoys a dominant market share. The announcement was made after market hours yesterday, 28 September 2016.
CEAT fell 2.28%. Amansa Holding Pte bought 4.75 lakh shares or 1.17% stake in CEAT through secondary market purchase. After the latest stake buy, Amansa Holding Pte's stake in CEAT rose to 5.19%. The company made the announcement after trading hours yesterday, 28 September 2016.
Monday, September 26, 2016
THE END SESSION ( 26 - 09 - 2016 )
Market drops on weak global cues
Key benchmark indices dropped on first trading day of the week on weak global stocks. The barometer index, the S&P BSE Sensex dropped 373.94 points or 1.3% to settle at 28,294.28. The Nifty 50 index shed 108.50 points or 1.23% to settle at 8,723.05.
Index heavyweight and cigarette maker ITC dropped. FMCG stocks were mixed. Realty stocks fell. Bank stocks declined. Auto stocks edged lower. Telecom stocks slipped.
The Sensex dropped 373.94 points or 1.3% to settle at 28,294.28, its lowest closing level since 29 August 2016. The Sensex dropped 396.19 points or 1.38% at the day's low of 28,272.03. The barometer index fell 37.30 points or 0.13% at the day's high of 28,630.92.
The Nifty 50 index shed 108.50 points or 1.23% to settle at 8,723.05, its lowest closing level since 12 September 2016. The Nifty dropped 116.45 points or 1.31% at the day's low of 8,715.10. The index shed 22 points or 0.24% at the day's high of 8,809.55.
In overseas stock markets, European stocks dropped as investors trod cautiously ahead of an Organization of the Petroleum Exporting Countries (OPEC) producers meeting in Algeria later this week. Asian stocks dropped after losses on Wall Street on Friday, 23 September 2016, as investors' attention turned from central banks to American politics ahead of the first US presidential debate. Investors are pessimistic over any breakthroughs in oil-production cuts when the OPEC gathers for an informal meeting on Wednesday, 28 September 2016.
Trading in US stock index futures indicated a sharp decline for US stocks at the opening bell today, 26 September 2016. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 85 points at the opening bell. US stocks logged weekly gains but ended with solid losses on Friday, 23 September 2016. Investors awaited US presidential debate between Donald Trump and Hillary Clinton due later in the global day today, 26 September 2016. US presidential elections will be held on 8 November this year.
Closer home, the market breadth indicating the overall health of the market was weak. On BSE, 1,693 shares fell and 999 shares rose. A total of 217 shares were unchanged. The BSE Mid-Cap index fell 0.53%. The BSE Small-Cap index dropped 0.55%. The decline in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3422.97 crore, lower than turnover of Rs 3871.71 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Capital Goods index (down 1.35%), the S&P BSE FMCG index (down 1.37%), the S&P BSE Bankex (down 1.56%), the S&P BSE Industrials index (down 1.58%), the S&P BSE Auto index (down 1.72%), the S&P BSE Telecom index (down 1.76%) and the S&P BSE Realty index (down 2%), underperformed the Sensex. The S&P BSE Energy index (up 0.35%), the S&P BSE Metal index (up 0.08%), the S&P BSE Oil & Gas index (up 0.08%), the S&P BSE Healthcare index (down 0.49%), the S&P BSE IT index (down 0.58%), the S&P BSE Consumer Durables index (down 0.64%), the S&P BSE Basic Materials index (down 0.66%), the S&P BSE Teck index (down 0.7%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.96%), the S&P BSE Finance index (down 1.15%), the S&P BSE Power index (down 1.27%) and the S&P BSE Utilities index (down 1.28%), outperformed the Sensex.
Index heavyweight and cigarette maker ITC declined 2.23% to Rs 248.20. The stock hit high of Rs 252.75 and low of Rs 247.55 in intraday trade.
FMCG stocks were mixed. Tata Global Beverages (down 1.37%), Marico (down 1.93%), Hindustan Unilever (HUL) (down 1.94%), Dabur India (down 0.5%), Procter & Gamble Hygiene and Health Care (down 0.56%), Colgate Palmolive India (down 0.5%), GlaxoSmithkline Consumer Healthcare (down 1.56%), Bajaj Corp (down 0.4%) declined. Nestle India (up 0.8%), Jyothy Laboratories (up 0.85%) and Godrej Consumer Products (up 1.14%) rose. Britannia Industries was unchanged at Rs 3,416.70.
Realty stocks dropped. Godrej Properties (down 1.05%), Housing Development & Infrastructure (HDIL) (down 2%), Unitech (down 1.64%), Oberoi Realty (down 2.44%), NBCC (down 1.1%), DLF (down 2.02%), and Omaxe (down 0.75%) edged lower. Sobha (up 0.82%) and Indiabulls Real Estate (up 0.51%) gained.
Bank stocks declined. Among public sector banks, Corporation Bank (down 2.4%), Allahabad Bank (down 0.86%), State Bank of India (SBI) (down 1.08%), Union Bank of India (down 2.72%), UCO Bank (down 0.79%), Syndicate Bank (down 1.38%), Bank of India (down 0.42%) and United Bank of India (down 1.16%) edged lower. Punjab National Bank rose 0.5%.
Canara Bank rose 0.6% after the bank's board of directors at meeting held on Friday, 23 September 2016, permitted the bank to raise additional equity share capital of an amount not exceeding Rs 1128 crore, including premium by way of rights issue with the Government of India (GoI) contribution of Rs 748 crore and Rs 380 crore from public shareholders. The board decided to constitute a rights issue committee of the board of directors to decide and permit on terms, timing, pricing, and other modalities of the rights issue. Further, the board decided to issue senior unsecured bonds in foreign currency in the range of $500 million in the international market under the $2 billion medium term note (MTN) programme of the bank for the purpose of providing funds to the overseas branches of the bank (the bank has so far raised $1100 million under this programme) and form a committee to decide the quantum, timing, tenor, pricing, costs etc. The announcement was made after market hours on Friday, 23 September 2016.
Bank of Baroda fell 2.13% to Rs 165.50 on BSE, after a bulk deal of 22.02 lakh shares was executed on the scrip at Rs 167.70 per share at 09:34 IST on BSE.
Among private sector banks, Axis Bank (down 1.76%), HDFC Bank (down 1.24%), ICICI Bank (down 3.16%), Kotak Mahindra Bank (down 0.91%), and IndusInd Bank (down 1.64%) edged lower. Yes Bank rose 0.29%.
Auto stocks declined. Ashok Leyland (down 1.27%), Eicher Motors (down 1.22%), Hero MotoCorp (down 1.97%), Bajaj Auto (down 1.22%), Maruti Suzuki India (down 0.75%) and TVS Motor Company (down 0.98%) declined.
Mahindra & Mahindra (M&M) fell 2.24%. The company said that loans & investment committee at its meeting held today, 26 September 2016, approved issuance and offer of 4,750 rated, listed, unsecured, redeemable, 7.57% non-convertible debentures of face value Rs 10 lakh each at par, aggregating to Rs 475 crores on private placement basis. The NCDs have tenure of 10 years. The announcement was made during market hours today, 26 September 2016.
Telecom stocks declined. Bharti Airtel (down 2.23%), Reliance Communications (down 0.94%) and Idea Cellular (down 2.37%) declined. MTNL (up 1.97%) and Tata Teleservices (Maharashtra) (down 0.35%) fell.
Shares of Bharti Infratel fell 1.38%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Shares of GNA Axles settled at Rs 245.15 on BSE, a premium of 18.43% over the initial public offer price of Rs 207. The stock debuted at Rs 248.50, a premium of 20.05% to the initial public offer (IPO) price. The stock hit a high of Rs 260 and low of Rs 242.20. On BSE, 5.93 lakh shares were traded on the counter. GNA Axles is into manufacturing of rear axle shafts used in on-highway and off-highway vehicular segments in India.
Marksans Pharma surged 10.76% after the company said that US Food and Drug Administration (USFDA) has granted approval to the company for an abbreviated new drug application (ANDA) for Loratadine liquid filled capsules 10 mg. Loratadine liquid filled capsules 10 mg is therapeutically equivalent to the reference listed drug Claritin Liqui-Gels Capsules 10 mg of Bayer Healthcare LLC. Loratadine is an antihistamine that reduces the effects of natural chemical histamine in the body. Loratadine is used to treat sneezing, runny nose, watery eyes, hives, skin rash, itching and other allergy symptoms. The announcement was made during market hours today, 26 September 2016.
Rain Industries rose 4.66% after the company said that on 22 September 2016, Rain Cements, company's wholly owned subsidiary has commenced operations of waste heat recovery based power plant to generate up to 7 megawatts (MW) of gross electrical energy from the waste heat and the flue gases evolved during the cement manufacturing process at Boincheruvupalli Village, Peapully Mandal, Kurnool District, Andhra Pradesh. The project was completed at a cost of Rs 70 crore and the same was funded from internal accruals, Rain Industries said. The process of waste heat generation is environmental friendly that will bring down the flue gas temperatures. The heat recovery from the flue gases not only saves large quantities of fossil fuels but also substantially reduces the cost of power generation, the company said. The announcement was made after market hours on Friday, 23 September 2016.
KNR Constructions rose 5.34% after the company said that its board of directors will meet on 30 September 2016, after the conclusion of the 21st annual general meeting of the company, to consider sub-division of the face value of the equity shares of Rs 10 per share to Rs 2 per share. The announcement was made after market hours on Friday, 23 September 2016.
Vardhman Textiles rose 3.15% after the company said its board approved the proposed buyback of equity shares. The announcement was made on Saturday, 24 September 2016. The board of Vardhman Textiles approved the proposal to buyback the fully paid-up equity shares of face value of Rs 10 each of the company. The buyback shall be upto an aggregate amount not exceeding Rs 720 crore at a maximum price of Rs 1,175. At maximum buyback price, the buyback translates into approximately 61.27 lakh equity shares of the company.
The board noted the intention of the promoter and promoter group of the company to participate in the proposed buyback with the intent that subsequent to the buyback, the combined shareholding of the promoters remains atleast 60% of the post buyback total paid up capital of the company.
Index heavyweight and cigarette maker ITC dropped. FMCG stocks were mixed. Realty stocks fell. Bank stocks declined. Auto stocks edged lower. Telecom stocks slipped.
The Sensex dropped 373.94 points or 1.3% to settle at 28,294.28, its lowest closing level since 29 August 2016. The Sensex dropped 396.19 points or 1.38% at the day's low of 28,272.03. The barometer index fell 37.30 points or 0.13% at the day's high of 28,630.92.
The Nifty 50 index shed 108.50 points or 1.23% to settle at 8,723.05, its lowest closing level since 12 September 2016. The Nifty dropped 116.45 points or 1.31% at the day's low of 8,715.10. The index shed 22 points or 0.24% at the day's high of 8,809.55.
In overseas stock markets, European stocks dropped as investors trod cautiously ahead of an Organization of the Petroleum Exporting Countries (OPEC) producers meeting in Algeria later this week. Asian stocks dropped after losses on Wall Street on Friday, 23 September 2016, as investors' attention turned from central banks to American politics ahead of the first US presidential debate. Investors are pessimistic over any breakthroughs in oil-production cuts when the OPEC gathers for an informal meeting on Wednesday, 28 September 2016.
Trading in US stock index futures indicated a sharp decline for US stocks at the opening bell today, 26 September 2016. Trading in US index futures indicated that the Dow Jones Industrial Average could slide 85 points at the opening bell. US stocks logged weekly gains but ended with solid losses on Friday, 23 September 2016. Investors awaited US presidential debate between Donald Trump and Hillary Clinton due later in the global day today, 26 September 2016. US presidential elections will be held on 8 November this year.
Closer home, the market breadth indicating the overall health of the market was weak. On BSE, 1,693 shares fell and 999 shares rose. A total of 217 shares were unchanged. The BSE Mid-Cap index fell 0.53%. The BSE Small-Cap index dropped 0.55%. The decline in both these indices was lower than the Sensex's decline in percentage terms.
The total turnover on BSE amounted to Rs 3422.97 crore, lower than turnover of Rs 3871.71 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Capital Goods index (down 1.35%), the S&P BSE FMCG index (down 1.37%), the S&P BSE Bankex (down 1.56%), the S&P BSE Industrials index (down 1.58%), the S&P BSE Auto index (down 1.72%), the S&P BSE Telecom index (down 1.76%) and the S&P BSE Realty index (down 2%), underperformed the Sensex. The S&P BSE Energy index (up 0.35%), the S&P BSE Metal index (up 0.08%), the S&P BSE Oil & Gas index (up 0.08%), the S&P BSE Healthcare index (down 0.49%), the S&P BSE IT index (down 0.58%), the S&P BSE Consumer Durables index (down 0.64%), the S&P BSE Basic Materials index (down 0.66%), the S&P BSE Teck index (down 0.7%), the S&P BSE Consumer Discretionary Goods & Services index (down 0.96%), the S&P BSE Finance index (down 1.15%), the S&P BSE Power index (down 1.27%) and the S&P BSE Utilities index (down 1.28%), outperformed the Sensex.
Index heavyweight and cigarette maker ITC declined 2.23% to Rs 248.20. The stock hit high of Rs 252.75 and low of Rs 247.55 in intraday trade.
FMCG stocks were mixed. Tata Global Beverages (down 1.37%), Marico (down 1.93%), Hindustan Unilever (HUL) (down 1.94%), Dabur India (down 0.5%), Procter & Gamble Hygiene and Health Care (down 0.56%), Colgate Palmolive India (down 0.5%), GlaxoSmithkline Consumer Healthcare (down 1.56%), Bajaj Corp (down 0.4%) declined. Nestle India (up 0.8%), Jyothy Laboratories (up 0.85%) and Godrej Consumer Products (up 1.14%) rose. Britannia Industries was unchanged at Rs 3,416.70.
Realty stocks dropped. Godrej Properties (down 1.05%), Housing Development & Infrastructure (HDIL) (down 2%), Unitech (down 1.64%), Oberoi Realty (down 2.44%), NBCC (down 1.1%), DLF (down 2.02%), and Omaxe (down 0.75%) edged lower. Sobha (up 0.82%) and Indiabulls Real Estate (up 0.51%) gained.
Bank stocks declined. Among public sector banks, Corporation Bank (down 2.4%), Allahabad Bank (down 0.86%), State Bank of India (SBI) (down 1.08%), Union Bank of India (down 2.72%), UCO Bank (down 0.79%), Syndicate Bank (down 1.38%), Bank of India (down 0.42%) and United Bank of India (down 1.16%) edged lower. Punjab National Bank rose 0.5%.
Canara Bank rose 0.6% after the bank's board of directors at meeting held on Friday, 23 September 2016, permitted the bank to raise additional equity share capital of an amount not exceeding Rs 1128 crore, including premium by way of rights issue with the Government of India (GoI) contribution of Rs 748 crore and Rs 380 crore from public shareholders. The board decided to constitute a rights issue committee of the board of directors to decide and permit on terms, timing, pricing, and other modalities of the rights issue. Further, the board decided to issue senior unsecured bonds in foreign currency in the range of $500 million in the international market under the $2 billion medium term note (MTN) programme of the bank for the purpose of providing funds to the overseas branches of the bank (the bank has so far raised $1100 million under this programme) and form a committee to decide the quantum, timing, tenor, pricing, costs etc. The announcement was made after market hours on Friday, 23 September 2016.
Bank of Baroda fell 2.13% to Rs 165.50 on BSE, after a bulk deal of 22.02 lakh shares was executed on the scrip at Rs 167.70 per share at 09:34 IST on BSE.
Among private sector banks, Axis Bank (down 1.76%), HDFC Bank (down 1.24%), ICICI Bank (down 3.16%), Kotak Mahindra Bank (down 0.91%), and IndusInd Bank (down 1.64%) edged lower. Yes Bank rose 0.29%.
Auto stocks declined. Ashok Leyland (down 1.27%), Eicher Motors (down 1.22%), Hero MotoCorp (down 1.97%), Bajaj Auto (down 1.22%), Maruti Suzuki India (down 0.75%) and TVS Motor Company (down 0.98%) declined.
Mahindra & Mahindra (M&M) fell 2.24%. The company said that loans & investment committee at its meeting held today, 26 September 2016, approved issuance and offer of 4,750 rated, listed, unsecured, redeemable, 7.57% non-convertible debentures of face value Rs 10 lakh each at par, aggregating to Rs 475 crores on private placement basis. The NCDs have tenure of 10 years. The announcement was made during market hours today, 26 September 2016.
Telecom stocks declined. Bharti Airtel (down 2.23%), Reliance Communications (down 0.94%) and Idea Cellular (down 2.37%) declined. MTNL (up 1.97%) and Tata Teleservices (Maharashtra) (down 0.35%) fell.
Shares of Bharti Infratel fell 1.38%. Bharti Infratel is a provider of tower and related infrastructure and is a unit of Bharti Airtel.
Shares of GNA Axles settled at Rs 245.15 on BSE, a premium of 18.43% over the initial public offer price of Rs 207. The stock debuted at Rs 248.50, a premium of 20.05% to the initial public offer (IPO) price. The stock hit a high of Rs 260 and low of Rs 242.20. On BSE, 5.93 lakh shares were traded on the counter. GNA Axles is into manufacturing of rear axle shafts used in on-highway and off-highway vehicular segments in India.
Marksans Pharma surged 10.76% after the company said that US Food and Drug Administration (USFDA) has granted approval to the company for an abbreviated new drug application (ANDA) for Loratadine liquid filled capsules 10 mg. Loratadine liquid filled capsules 10 mg is therapeutically equivalent to the reference listed drug Claritin Liqui-Gels Capsules 10 mg of Bayer Healthcare LLC. Loratadine is an antihistamine that reduces the effects of natural chemical histamine in the body. Loratadine is used to treat sneezing, runny nose, watery eyes, hives, skin rash, itching and other allergy symptoms. The announcement was made during market hours today, 26 September 2016.
Rain Industries rose 4.66% after the company said that on 22 September 2016, Rain Cements, company's wholly owned subsidiary has commenced operations of waste heat recovery based power plant to generate up to 7 megawatts (MW) of gross electrical energy from the waste heat and the flue gases evolved during the cement manufacturing process at Boincheruvupalli Village, Peapully Mandal, Kurnool District, Andhra Pradesh. The project was completed at a cost of Rs 70 crore and the same was funded from internal accruals, Rain Industries said. The process of waste heat generation is environmental friendly that will bring down the flue gas temperatures. The heat recovery from the flue gases not only saves large quantities of fossil fuels but also substantially reduces the cost of power generation, the company said. The announcement was made after market hours on Friday, 23 September 2016.
KNR Constructions rose 5.34% after the company said that its board of directors will meet on 30 September 2016, after the conclusion of the 21st annual general meeting of the company, to consider sub-division of the face value of the equity shares of Rs 10 per share to Rs 2 per share. The announcement was made after market hours on Friday, 23 September 2016.
Vardhman Textiles rose 3.15% after the company said its board approved the proposed buyback of equity shares. The announcement was made on Saturday, 24 September 2016. The board of Vardhman Textiles approved the proposal to buyback the fully paid-up equity shares of face value of Rs 10 each of the company. The buyback shall be upto an aggregate amount not exceeding Rs 720 crore at a maximum price of Rs 1,175. At maximum buyback price, the buyback translates into approximately 61.27 lakh equity shares of the company.
The board noted the intention of the promoter and promoter group of the company to participate in the proposed buyback with the intent that subsequent to the buyback, the combined shareholding of the promoters remains atleast 60% of the post buyback total paid up capital of the company.
Sunday, September 25, 2016
TRADING IN STOCK MARKET- KNOW ITS TAX TREATMENT TOO
Income tax has recently started issuing notices to the non-filers as well as mis-filers of income tax return who trade on recognized stock exchanges. Assesses are also not clear on accounting as well as tax treatment of transactions done on the exchanges.
This article may help you to do proper tax treatment whenever we have transactions related to stock, currency or commodity exchanges..
But before going into the taxation part, first it is important to understand what type of share trading activity one is indulged in:
Investing, Trading – It can be further classified into:
Intraday trading: – Trading in spot market (Cash Market) & Squaring off the position in that day only
Delivery based trading: – Trading in spot market (Cash Market) & squaring them at a later date.
Trading in Derivatives: – Trading in Futures & Options (Calls & Puts).
Income tax department clarifies that these transactions are to be separately assessed under different heads:
Treatment of INTRADAY TRADING: –
Intraday Trading is regarded as a speculative transaction whether it is done on a recognized stock exchange or not. Income Derived from intraday trading is regarded as speculative business transaction. Loss from intraday trading can only be settled from other speculative income only.
Treatment of DELIVERY BASED TRADING: –
Delivery trades have to be assessed on the quantum & purpose of trades. If the purpose of the trades was to invest in the securities then it will be assessed under the head capital gains. If trades are done frequently in cash segment then it has to be assessed as business profit/loss.
The treatment & taxability aspect on various cases has been described as follows:-
IF THE PURPOSE IS TO INVEST IN SHARES:
If one do not frequently buy and sell shares than all the gains from share trading is to be assessed as capital gains and the dividend received shall be assessed as Income from other sources [currently exempt under section 10(34)].
WHERE SALE TRANSACTIONS ARE DONE ON RECOGNISED STOCK EXCHANGE & STT THEREON IS PAID
Tax on Short Term Capital Gain: –
The equity shares which are sold in less than one year of purchase, the profit/loss on that particular security is treated as short term capital gain/loss. Income Tax on these gains has to be assessed flat @ 15%. Remember that the sale of security would have been done on recognized stock exchange & STT thereon should be paid.
Tax on long term capital gains: –
The equity shares which are sold after 1 year from the date of purchase, the profit/loss on that particular security is treated as long term capital gains. Income tax on sale of long term equity shares is exempt. It means no tax would be payable on sale of equity shares where sale transactions are done on recognized stock exchange & STT thereon should be paid.
NOTE: – While calculating Capital Gains on shares we have to exclude STT from the cost of acquisition & while claiming expenses in sale or purchase of shares.
WHERE SALE TRANSACTIONS ARE DONE OTHER THAN ON RECOGNISED STOCK EXCHANGE & STT THEREON IS NOT PAID
Tax on Short Term Capital Gain: –
The equity shares which sold on over the counter basis and are sold before one year from date of purchase then slab rates are applicable to assesses.
Tax on long term capital gains:-
The equity shares which are sold on over the counter basis and are sold after one year from date of purchase then flat 20% is applicable to assesses after considering the price index.
IF THE PURPOSE IS TO TRADE IN SHARES:
If the purpose is to trade in shares then profit/ loss arising from such transactions will be treated as Income from Business & Profession. Guidelines for business income are as follows:
While calculating gains/loss from trading in shares all expenses such as telephone expenses, internet expenses or any other expenses incurred in running trading business can be claimed as expenses and are deductible from gross Profit/loss from trading business.
If the total turnover of trading of shares exceeds Rs. 1 Crore then audit is compulsory under section 44AB of income tax Act otherwise a penalty of Rs 150000.00 Or 0.5% of the turnover will be levied by CBDT.
If the total turnover of trading does not exceeds Rs.1 Crore then Provisions of Section 44AD is levied in which 8% of the turnover is treated as profit whether there is loss in trading so it is now clear that even If the turnover is less than Rs.1 Crore audit is compulsory.
NOTE:Turnover in case of cash market transactions is the total monetary value of shares sold during the financial year.
!! Is set off available in case there is a loss from sale of shares!!
As the nature of loss is Business income hence it is available for setoff first from any other business income (intra head setoff).If after that unabsorbed loss is there it can be set off through other heads except income from salaries. If After that too any loss remains unabsorbed then the loss can be carried forward for next 8 years if the return is filed before due date.
TREATMENT OF DERIVATIVES:
Trading in derivatives has to be treated as Income from Business & Profession hence ITR 4 will be applicable.
WHERE TRANSACTIONS ARE DONE ON RECOGNISED STOCK EXCHANGE & STT THEREON IS PAID:
The income arising from Futures and Options are treated as normal business income as section 43(5) of the income tax specifically explains that trading in futures & options is not a speculative transaction if it is done through recognized stock exchange..So it is now clear that if trading is done through recognized stock exchange then it is treated as normal business income. In that case too ITR 4 will be filed.
Applicability of tax audit will be as follows in case of F&O trading.
In case of profit from F&O trading:
In the case of profit from derivative transactions, tax audit will be applicable if the turnover from such trading exceeds Rs. 1 crore. Tax audit u/s 44AB r/w section 44AD will also be applicable, if the net profit from such transactions is less than 8% of the turnover from such transactions
In case of loss from F&O trading
In case of Loss from derivative trading, since profit (Loss in this case) is less than 8% of the turnover, therefore Tax Audit will be applicable u/s 44AB read with section 44AD.
!! Is set off available in case there is a loss from derivative trading!!
The answer to the setoff is NO as section 43(5) which exempts derivative trading from speculative business but is not covered by section 73 which allows setoff. So not even intra head setoff as allowed. Only loss can be carried forward which can be settled only against derivative income in subsequent 8 years.
CALCULATION OF TURNOVER IN CASE OF DERIVATIVE TRADING:
As turnover in derivative can easily cross Rs.1 Crore as volumes in the business is high because transactions in derivatives are cash settled. So Mechanism of calculating turnover is different as in calculation of normal business.
Turnover in case of Futures Trading is aggregate sum of mark to mark profit/Loss. So whether there is profit or loss it has to be treated as turnover.
Suppose there is a loss of ITC futures is Rs.20000.00 and profit on NTPC futures is Rs.50000.00 then profit will be 30000.00 but turnover in that case will be 70000.00 (50000.00+20000.00).
Turnover in case of Options is aggregate sum of premium received from sale of options.
:Suppose ITC 300 Call Option was purchased at Rs. 3*1000 shares lot and has been sold at Rs. 6*1000 shares lot. Turnover will be Rs.6000.00 and profit will be Rs3000.00 per lot.
SO IN A NUTSHELL TO SUMMARISE THE ARTICLE:-
Intraday trading is a speculative business and has to treated as same in income tax whether it is done through recognized stock exchange or not.
Delivery of shares can be treated both ways either in capital gains or business income as the case maybe and relevant provisions and tax will be applicable depending upon its nature.
Derivative trading is to be treated as business income if it is done through recognized stock exchange & tax audit is mandatory in case of high turnover or in case there is a loss from derivative trading. In case of turnover less than Rs.1 Crore, 8% of the turnover will be taken profit for calculating profit if tax audit is not conducted.
So Dear investors and traders, Be careful while assessing your profits/loss from stock market as income tax department is now vigilant about the tax treatment of transactions done on stock exchanges. So make necessary arrangements to file your income tax return before time & get tax audit done because failure to comply may lead to unnecessary harassment from income tax department.
This article may help you to do proper tax treatment whenever we have transactions related to stock, currency or commodity exchanges..
But before going into the taxation part, first it is important to understand what type of share trading activity one is indulged in:
Investing, Trading – It can be further classified into:
Intraday trading: – Trading in spot market (Cash Market) & Squaring off the position in that day only
Delivery based trading: – Trading in spot market (Cash Market) & squaring them at a later date.
Trading in Derivatives: – Trading in Futures & Options (Calls & Puts).
Income tax department clarifies that these transactions are to be separately assessed under different heads:
Treatment of INTRADAY TRADING: –
Intraday Trading is regarded as a speculative transaction whether it is done on a recognized stock exchange or not. Income Derived from intraday trading is regarded as speculative business transaction. Loss from intraday trading can only be settled from other speculative income only.
Treatment of DELIVERY BASED TRADING: –
Delivery trades have to be assessed on the quantum & purpose of trades. If the purpose of the trades was to invest in the securities then it will be assessed under the head capital gains. If trades are done frequently in cash segment then it has to be assessed as business profit/loss.
The treatment & taxability aspect on various cases has been described as follows:-
IF THE PURPOSE IS TO INVEST IN SHARES:
If one do not frequently buy and sell shares than all the gains from share trading is to be assessed as capital gains and the dividend received shall be assessed as Income from other sources [currently exempt under section 10(34)].
WHERE SALE TRANSACTIONS ARE DONE ON RECOGNISED STOCK EXCHANGE & STT THEREON IS PAID
Tax on Short Term Capital Gain: –
The equity shares which are sold in less than one year of purchase, the profit/loss on that particular security is treated as short term capital gain/loss. Income Tax on these gains has to be assessed flat @ 15%. Remember that the sale of security would have been done on recognized stock exchange & STT thereon should be paid.
Tax on long term capital gains: –
The equity shares which are sold after 1 year from the date of purchase, the profit/loss on that particular security is treated as long term capital gains. Income tax on sale of long term equity shares is exempt. It means no tax would be payable on sale of equity shares where sale transactions are done on recognized stock exchange & STT thereon should be paid.
NOTE: – While calculating Capital Gains on shares we have to exclude STT from the cost of acquisition & while claiming expenses in sale or purchase of shares.
WHERE SALE TRANSACTIONS ARE DONE OTHER THAN ON RECOGNISED STOCK EXCHANGE & STT THEREON IS NOT PAID
Tax on Short Term Capital Gain: –
The equity shares which sold on over the counter basis and are sold before one year from date of purchase then slab rates are applicable to assesses.
Tax on long term capital gains:-
The equity shares which are sold on over the counter basis and are sold after one year from date of purchase then flat 20% is applicable to assesses after considering the price index.
IF THE PURPOSE IS TO TRADE IN SHARES:
If the purpose is to trade in shares then profit/ loss arising from such transactions will be treated as Income from Business & Profession. Guidelines for business income are as follows:
While calculating gains/loss from trading in shares all expenses such as telephone expenses, internet expenses or any other expenses incurred in running trading business can be claimed as expenses and are deductible from gross Profit/loss from trading business.
If the total turnover of trading of shares exceeds Rs. 1 Crore then audit is compulsory under section 44AB of income tax Act otherwise a penalty of Rs 150000.00 Or 0.5% of the turnover will be levied by CBDT.
If the total turnover of trading does not exceeds Rs.1 Crore then Provisions of Section 44AD is levied in which 8% of the turnover is treated as profit whether there is loss in trading so it is now clear that even If the turnover is less than Rs.1 Crore audit is compulsory.
NOTE:Turnover in case of cash market transactions is the total monetary value of shares sold during the financial year.
!! Is set off available in case there is a loss from sale of shares!!
As the nature of loss is Business income hence it is available for setoff first from any other business income (intra head setoff).If after that unabsorbed loss is there it can be set off through other heads except income from salaries. If After that too any loss remains unabsorbed then the loss can be carried forward for next 8 years if the return is filed before due date.
TREATMENT OF DERIVATIVES:
Trading in derivatives has to be treated as Income from Business & Profession hence ITR 4 will be applicable.
WHERE TRANSACTIONS ARE DONE ON RECOGNISED STOCK EXCHANGE & STT THEREON IS PAID:
The income arising from Futures and Options are treated as normal business income as section 43(5) of the income tax specifically explains that trading in futures & options is not a speculative transaction if it is done through recognized stock exchange..So it is now clear that if trading is done through recognized stock exchange then it is treated as normal business income. In that case too ITR 4 will be filed.
Applicability of tax audit will be as follows in case of F&O trading.
In case of profit from F&O trading:
In the case of profit from derivative transactions, tax audit will be applicable if the turnover from such trading exceeds Rs. 1 crore. Tax audit u/s 44AB r/w section 44AD will also be applicable, if the net profit from such transactions is less than 8% of the turnover from such transactions
In case of loss from F&O trading
In case of Loss from derivative trading, since profit (Loss in this case) is less than 8% of the turnover, therefore Tax Audit will be applicable u/s 44AB read with section 44AD.
!! Is set off available in case there is a loss from derivative trading!!
The answer to the setoff is NO as section 43(5) which exempts derivative trading from speculative business but is not covered by section 73 which allows setoff. So not even intra head setoff as allowed. Only loss can be carried forward which can be settled only against derivative income in subsequent 8 years.
CALCULATION OF TURNOVER IN CASE OF DERIVATIVE TRADING:
As turnover in derivative can easily cross Rs.1 Crore as volumes in the business is high because transactions in derivatives are cash settled. So Mechanism of calculating turnover is different as in calculation of normal business.
Turnover in case of Futures Trading is aggregate sum of mark to mark profit/Loss. So whether there is profit or loss it has to be treated as turnover.
Suppose there is a loss of ITC futures is Rs.20000.00 and profit on NTPC futures is Rs.50000.00 then profit will be 30000.00 but turnover in that case will be 70000.00 (50000.00+20000.00).
Turnover in case of Options is aggregate sum of premium received from sale of options.
:Suppose ITC 300 Call Option was purchased at Rs. 3*1000 shares lot and has been sold at Rs. 6*1000 shares lot. Turnover will be Rs.6000.00 and profit will be Rs3000.00 per lot.
SO IN A NUTSHELL TO SUMMARISE THE ARTICLE:-
Intraday trading is a speculative business and has to treated as same in income tax whether it is done through recognized stock exchange or not.
Delivery of shares can be treated both ways either in capital gains or business income as the case maybe and relevant provisions and tax will be applicable depending upon its nature.
Derivative trading is to be treated as business income if it is done through recognized stock exchange & tax audit is mandatory in case of high turnover or in case there is a loss from derivative trading. In case of turnover less than Rs.1 Crore, 8% of the turnover will be taken profit for calculating profit if tax audit is not conducted.
So Dear investors and traders, Be careful while assessing your profits/loss from stock market as income tax department is now vigilant about the tax treatment of transactions done on stock exchanges. So make necessary arrangements to file your income tax return before time & get tax audit done because failure to comply may lead to unnecessary harassment from income tax department.
Saturday, September 24, 2016
THE WEEK AHEAD
Market may remain volatile ahead of near month F&O expiry
Trend in global markets, investment by foreign portfolio investors (FPIs) and domestic institutional investors (DIIs), the movement of rupee against the dollar and crude oil price movement will dictate market trend in the near term.
The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month September 2016 series to October 2016 series. The near month September 2016 derivatives contracts expire on Thursday, 29 September 2016.
Investors will continue to track the progress of monsoon rains. The India Meteorological Department (IMD) in its weekly monsoon update issued on 22 September 2016 said that for the country as a whole, cumulative rainfall during this year's monsoon has so far upto 21 September 2016 been 5% below long period average (LPA).
Shares of interest rate sensitive sectors may see some action ahead of the monetary policy. The Reserve Bank of India (RBI) will unveil fourth bi-monthly monetary policy statement for the year ending March 2017 on 4 October 2016.
On the global front, US New Home Sales data for August 2016 will be unveiled on Monday, 26 September 2016. US CB Consumer Confidence data for September 2016 will be unveiled on Tuesday, 27 September 2016.
US Gross Domestic Product (GDP) data for the second quarter (Q2) (QoQ) will be unveiled on Thursday, 29 September 2016. US Pending Home Sales data for August 2016 will be unveiled on Thursday, 29 September 2016.
UK GDP data for the second quarter (Q2) will be unveiled on Friday, 30 September 2016.
The market may remain volatile as traders roll over positions in the futures & options (F&O) segment from the near month September 2016 series to October 2016 series. The near month September 2016 derivatives contracts expire on Thursday, 29 September 2016.
Investors will continue to track the progress of monsoon rains. The India Meteorological Department (IMD) in its weekly monsoon update issued on 22 September 2016 said that for the country as a whole, cumulative rainfall during this year's monsoon has so far upto 21 September 2016 been 5% below long period average (LPA).
Shares of interest rate sensitive sectors may see some action ahead of the monetary policy. The Reserve Bank of India (RBI) will unveil fourth bi-monthly monetary policy statement for the year ending March 2017 on 4 October 2016.
On the global front, US New Home Sales data for August 2016 will be unveiled on Monday, 26 September 2016. US CB Consumer Confidence data for September 2016 will be unveiled on Tuesday, 27 September 2016.
US Gross Domestic Product (GDP) data for the second quarter (Q2) (QoQ) will be unveiled on Thursday, 29 September 2016. US Pending Home Sales data for August 2016 will be unveiled on Thursday, 29 September 2016.
UK GDP data for the second quarter (Q2) will be unveiled on Friday, 30 September 2016.
THE WEEK THAT WAS
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.
THE END SESSION ( 23 - 09 - 2016 )
Sensex, Nifty settle with modest losses
Banking, telecom sector stocks and index heavyweight Infosys led modest losses for key benchmark indices in a lacklustre trading session. 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. Weakness in European and Asian stocks weighed on sentiment on the domestic bourses. Key indices extended intraday slide towards the latter part of the trading session after hovering in a narrow range around the flat line till afternoon trade.
Index heavyweight Reliance Industries edged higher. Shares of L&T Technology Services settled near the initial public offer (IPO) price on its debut. Bharat Heavy Electricals (Bhel) dropped in volatile trade.
In overseas stock markets, European stocks edged lower after the euro zone flash composite Purchasing Managers' Index (PMI) fell to 52.6 in September 2016, from August's reading of 52.9. Asian stocks edged lower amid a slew of economic data. In mainland China, the Shanghai Composite settled 0.28% lower. In Hong Kong, the Hang Seng closed 0.39% lower. The MNI China business sentiment index came it at 55.8 in September 2016, up from a marginally revised 54.1 in August, driven by a faster increase in new orders and a further strengthening in confidence among manufacturing companies. In Japan, the Nikkei 225 Average ended 0.32% lower. Japanese manufacturing activity expanded for the first time in seven months in September, a preliminary survey showed today, 23 September 2016. The IHS Markit/Nikkei Japan Flash Manufacturing Purchasing Managers Index (PMI) rose to 50.3 in September from a final 49.5 in August on a seasonally adjusted basis.
US stocks registered modest gains yesterday, 22 September 2016, extending previous trading session's gains as investors digested several economic data releases and the Federal Reserve's latest monetary policy decision. US home resales unexpectedly fell in August 2016. The National Association of Realtors said yesterday, 22 September 2016 that existing home sales declined 0.9% to an annual rate of 5.33 million units.
The Sensex lost 104.91 points or 0.36% to settle at 28,668.22, its lowest closing level since 21 September 2016. The index rose 51.96 points or 0.18% at the day's high of 28,825.09. The index lost 145.75 points or 0.5% at the day's low of 28,627.38.
The Nifty lost 35.90 points or 0.4% to settle at 8,831.55, its lowest closing level since 21 September 2016. The index rose 17.75 points or 0.2% at the day's high of 8,885.20. The index lost 47.15 points or 0.53% at the day's low of 8,820.30.
The BSE Mid-Cap index rose 0.28%. The BSE Small-Cap index rose 0.08%. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,496 shares declined and 1,168 shares rose. A total of 252 shares were unchanged.
The total turnover on BSE amounted to Rs 3653 crore, higher than turnover of Rs 3311.63 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Bankex index (down 1.23%), the BSE Utilities index (down 0.67%), the BSE Telecom index (down 0.43%) and the BSE Power index (down 0.61%) underperformed the Sensex. The BSE Auto index (down 0.24%), the BSE Capital Goods index (down 0.12%), the BSE Oil & Gas index (up 0.74%) and the BSE Realty index (up 1.01%) outperformed the Sensex.
Index heavyweight and software major Infosys was down 1.46% at Rs 1,043. The stock hit a high of Rs 1,059.85 and a low of Rs 1,040 in intraday trade.
Index heavyweight Reliance Industries was up 1.41% at Rs 1,102.95. The stock hit a high of Rs 1,109.20 and a low of Rs 1,088 in intraday trade.
Bank stocks edged lower. Among public sector banks, Canara Bank (down 1.75%), IDBI Bank (down 1.61%), Indian Bank (down 0.99%), State Bank of India (down 1.15%), Bank of India (down 1.05%), Punjab National Bank (down 1.21%), Union Bank of India (down 0.65%) and Bank of Baroda (down 0.21%) declined.
Among private sector banks, Axis Bank (down 5.84%), ICICI Bank (down 1.36%), Yes Bank (down 1.11%) and IndusInd Bank (down 0.77%) edged lower. Kotak Mahindra Bank (up 0.01%) and RBL Bank (up 0.56%) edged higher.
Index heavyweight HDFC Bank was up 0.42% at Rs 1,313.15. The stock hit a high of Rs 1,318.20 and a low of Rs 1,303 in intraday trade.
Telecom stocks declined. Reliance Communications (down 1.54%) and Idea Cellular (down 1.32%) edged lower. Bharti Airtel (up 0.08%) edged higher. Bharti Infratel was down 1.11%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
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 today, 23 September 2016. The stock made its debut at Rs 900, a premium of 4.65% over the IPO price. The stock hit a high of Rs 931 and low of Rs 860 in intraday trade. 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.
Shares of L&T shed 0.15% at Rs 1,496.80.
Bharat Heavy Electricals (Bhel) dropped in volatile trade. The stock lost 0.61% at Rs 146.20. The stock hit a high of Rs 150.70 and a low of Rs 145.75 in intraday trade. The company's chairman & managing director Atul Sobti said that the company recorded its highest-ever commissioning of projects and highest order booking in the last five years in the financial year ended 31 March 2016 (FY 2016), with significant traction in growth drivers. Addressing shareholders at the company's annual general meeting yesterday, 22 September 2016, Sobti said that enhanced focus on project execution has resulted in Bhel creating history by way of commissioning/synchronizing an all-time high 15,059 megawatts (MW) of power generating equipment during the year. Despite intense competitive pressure in the power and capital goods markets during the year, Bhel achieved the highest order booking in the last five years, at Rs 43727 crore, a 42% leap over FY 2015. The company ended FY 2016 with a total order book of Rs 110730 crore for execution in FY 2017 and beyond. The announcement was made after market hours yesterday, 22 September 2016.
Meanwhile, the government yesterday, 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.
Index heavyweight Reliance Industries edged higher. Shares of L&T Technology Services settled near the initial public offer (IPO) price on its debut. Bharat Heavy Electricals (Bhel) dropped in volatile trade.
In overseas stock markets, European stocks edged lower after the euro zone flash composite Purchasing Managers' Index (PMI) fell to 52.6 in September 2016, from August's reading of 52.9. Asian stocks edged lower amid a slew of economic data. In mainland China, the Shanghai Composite settled 0.28% lower. In Hong Kong, the Hang Seng closed 0.39% lower. The MNI China business sentiment index came it at 55.8 in September 2016, up from a marginally revised 54.1 in August, driven by a faster increase in new orders and a further strengthening in confidence among manufacturing companies. In Japan, the Nikkei 225 Average ended 0.32% lower. Japanese manufacturing activity expanded for the first time in seven months in September, a preliminary survey showed today, 23 September 2016. The IHS Markit/Nikkei Japan Flash Manufacturing Purchasing Managers Index (PMI) rose to 50.3 in September from a final 49.5 in August on a seasonally adjusted basis.
US stocks registered modest gains yesterday, 22 September 2016, extending previous trading session's gains as investors digested several economic data releases and the Federal Reserve's latest monetary policy decision. US home resales unexpectedly fell in August 2016. The National Association of Realtors said yesterday, 22 September 2016 that existing home sales declined 0.9% to an annual rate of 5.33 million units.
The Sensex lost 104.91 points or 0.36% to settle at 28,668.22, its lowest closing level since 21 September 2016. The index rose 51.96 points or 0.18% at the day's high of 28,825.09. The index lost 145.75 points or 0.5% at the day's low of 28,627.38.
The Nifty lost 35.90 points or 0.4% to settle at 8,831.55, its lowest closing level since 21 September 2016. The index rose 17.75 points or 0.2% at the day's high of 8,885.20. The index lost 47.15 points or 0.53% at the day's low of 8,820.30.
The BSE Mid-Cap index rose 0.28%. The BSE Small-Cap index rose 0.08%. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was negative. On BSE, 1,496 shares declined and 1,168 shares rose. A total of 252 shares were unchanged.
The total turnover on BSE amounted to Rs 3653 crore, higher than turnover of Rs 3311.63 crore registered during the previous trading session.
Among the sectoral indices on BSE, the S&P BSE Bankex index (down 1.23%), the BSE Utilities index (down 0.67%), the BSE Telecom index (down 0.43%) and the BSE Power index (down 0.61%) underperformed the Sensex. The BSE Auto index (down 0.24%), the BSE Capital Goods index (down 0.12%), the BSE Oil & Gas index (up 0.74%) and the BSE Realty index (up 1.01%) outperformed the Sensex.
Index heavyweight and software major Infosys was down 1.46% at Rs 1,043. The stock hit a high of Rs 1,059.85 and a low of Rs 1,040 in intraday trade.
Index heavyweight Reliance Industries was up 1.41% at Rs 1,102.95. The stock hit a high of Rs 1,109.20 and a low of Rs 1,088 in intraday trade.
Bank stocks edged lower. Among public sector banks, Canara Bank (down 1.75%), IDBI Bank (down 1.61%), Indian Bank (down 0.99%), State Bank of India (down 1.15%), Bank of India (down 1.05%), Punjab National Bank (down 1.21%), Union Bank of India (down 0.65%) and Bank of Baroda (down 0.21%) declined.
Among private sector banks, Axis Bank (down 5.84%), ICICI Bank (down 1.36%), Yes Bank (down 1.11%) and IndusInd Bank (down 0.77%) edged lower. Kotak Mahindra Bank (up 0.01%) and RBL Bank (up 0.56%) edged higher.
Index heavyweight HDFC Bank was up 0.42% at Rs 1,313.15. The stock hit a high of Rs 1,318.20 and a low of Rs 1,303 in intraday trade.
Telecom stocks declined. Reliance Communications (down 1.54%) and Idea Cellular (down 1.32%) edged lower. Bharti Airtel (up 0.08%) edged higher. Bharti Infratel was down 1.11%. Bharti Infratel is a telecom tower arm of Bharti Airtel.
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 today, 23 September 2016. The stock made its debut at Rs 900, a premium of 4.65% over the IPO price. The stock hit a high of Rs 931 and low of Rs 860 in intraday trade. 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.
Shares of L&T shed 0.15% at Rs 1,496.80.
Bharat Heavy Electricals (Bhel) dropped in volatile trade. The stock lost 0.61% at Rs 146.20. The stock hit a high of Rs 150.70 and a low of Rs 145.75 in intraday trade. The company's chairman & managing director Atul Sobti said that the company recorded its highest-ever commissioning of projects and highest order booking in the last five years in the financial year ended 31 March 2016 (FY 2016), with significant traction in growth drivers. Addressing shareholders at the company's annual general meeting yesterday, 22 September 2016, Sobti said that enhanced focus on project execution has resulted in Bhel creating history by way of commissioning/synchronizing an all-time high 15,059 megawatts (MW) of power generating equipment during the year. Despite intense competitive pressure in the power and capital goods markets during the year, Bhel achieved the highest order booking in the last five years, at Rs 43727 crore, a 42% leap over FY 2015. The company ended FY 2016 with a total order book of Rs 110730 crore for execution in FY 2017 and beyond. The announcement was made after market hours yesterday, 22 September 2016.
Meanwhile, the government yesterday, 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.
Thursday, September 22, 2016
THE END SESSION ( 22 - 09 - 2016 )
Nifty attains 2-week closing high
Banking, auto sector stocks and index heavyweights Reliance Industries and HDFC led decent gains for key benchmark indices. 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. Gains in global markets aided the upmove on the domestic bourses. The Sensex closed at its highest level in almost two-weeks. The Nifty attained two-week closing high.
In overseas stock markets, European and Asian stocks edged higher mirroring gains in the US market after the Federal Reserve left interest rates unchanged and projected a less aggressive path for hikes next year and in 2018. US stocks registered strong gains yesterday, 21 September 2016, after the Federal Reserve kept interest rates unchanged but hinted at the possibility of a rate hike later this year. 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.
Back home, the Sensex rose 265.71 points or 0.93% to settle at 28,773.13, its highest closing level since 9 September 2016. The index surged 364.50 points or 1.28% at the day's high of 28,871.92. The index rose 185.65 points or 0.65% at the day's low of 28,693.07.
The Nifty 50 index rose 90.30 points or 1.03% to settle at 8,867.45, its highest closing level since 8 September 2016 . The index jumped 116.20 points or 1.32% at the day's high of 8,893.35. The index rose 60.65 points or 0.69% at the day's low of 8,837.80.
The market breadth indicating the overall health of the market was strong. On BSE, 1,693 shares rose and 1,045 shares declined. A total of 235 shares were unchanged. The BSE Mid-Cap index rose 1.39%. The BSE Small-Cap index rose 1%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3298 crore, higher than turnover of Rs 3180.94 crore registered during the previous trading session.
Among sectoral indices on BSE, the S&P BSE Finance index (up 1.65%), the S&P BSE Oil & Gas index (up 1.51%), the S&P BSE Bankex (up 1.49%), the S&P BSE Auto index (up 1.44%), the S&P BSE Capital Goods index (up 1.37%), the S&P BSE Power index (up 1.36%), the S&P BSE Utilities index (up 1.35%), the S&P BSE Energy index (up 1.30%), the S&P BSE Industrials index (up 1.28%), the S&P BSE Basic Materials index (up 1.26%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.20%), the S&P BSE Realty index (up 1.16%), the S&P BSE Telecom index (up 1.06%), the S&P BSE Metal index (up 1.03%) and the S&P BSE Healthcare index (up 1.02%), underperformed the Sensex. The S&P BSE Consumer Durables index (up 0.89%), the S&P BSE FMCG index (up 0.42%), the S&P BSE Teck index (down 0.12%) and the S&P BSE IT index (down 0.36%), outperformed the Sensex.
Banks were in demand. Among state-run banks, Punjab National Bank (up 3.87%), Bank of India (up 3.10%), Vijaya Bank (up 3%), Central Bank of India (up 2.90%), Bank of Baroda (up 2.88%), Allahabad Bank (up 2.87%), Andhra Bank (up 2.69%), IDBI Bank (up 2.68%), State Bank of India (up 2.39%), Syndicate Bank (up 2.34%), Canara Bank (up 1.94%), Dena Bank (up 1.72%), Punjab & Sind Bank (up 1.45%), Indian Bank (up 1.15%), Corporation Bank (up 0.80%), UCO Bank (up 0.65%), Bank of Maharashtra (up 0.48%) and United Bank of India (up 0.23%), edged higher.
Union Bank of India rose 3.08% at Rs 145.75 after the bank said that it has completed the acquisition of 49% shareholding of Union KBC Asset Management Company and Union KBC Trustee Company from KBC Participations Renta S.A. and its affiliates (KBC Asset Management NV) on 20 September 2016. Accordingly, Union KBC Asset Management Company and Union KBC Trustee Company have become wholly owned subsidiaries of Union Bank of India. The announcement was made after market hours yesterday, 21 September 2016.
Last year, the board of Union Bank of India approved purchase of 49% stake in Union KBC Asset Management and Union KBC Trustee Company from KBC Participations Renta. KBC Participations Renta is a group company of Luxembourg-based KBC Asset Management NV. Union Bank of India and KBC Asset Management NV had formed two joint ventures - Union KBC Asset Management Company and Union KBC Trustee Company - in 2009 with 51% and 49% holding, respectively.
Among private sector banks, Federal Bank (up 3.10%), IndusInd Bank (up 2.98%), Yes Bank (up 2.34%), ICICI Bank (up 2.19%), Kotak Mahindra Bank (up 0.84%) and RBL Bank (up 0.67%), edged higher. City Union Bank (down 0.65%) and Axis Bank (down 1.01%), edged lower.
Index heavyweight HDFC Bank rose 1.25% at Rs 1,309 after the bank said it has allotted senior, unsecured, redeemable, long-term non-convertible bonds in the nature of debentures amounting to Rs 6700 crore on a private placement basis. The announcement was made during market hours today, 22 September 2016.
Index heavyweight and housing finance major HDFC rose 1.71% at Rs 1,416 after the company announced that it intends to raise Rs 1340 crore through issue of non-convertible debentures on private placement basis. The debentures will carry a coupon rate of 7.67% per annum and will have a tenor of 1 year 2 months. The issue will open and close on the same day tomorrow, 23 September 2016. The announcement was made after market hours yesterday, 21 September 2016.
Index heavyweight Reliance Industries rose 1.52% at Rs 1,087.65. The stock hit a high of Rs 1,095.50 and a low of Rs 1,079.10 in intraday trade.
Aurobindo Pharma jumped 6.33% to Rs 857.15 after the company during trading hours today, 22 September 2016, said it received tentative approval of Dolutegravir 50mg from US Food & Drug Administration (USFDA) for the treatment of HIV. This important milestone marks the first FDA approval of a generic version of Dolutegravir (DTG), an integrase strand transfer inhibitor recommended for use in treatment-naïve patients by the US Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO). Through an innovative collaboration with ViiV and the Clinton Health Access Initiative, Inc. (CHAI), the product is expected to be launched in sub-Saharan Africa in late 2016. The approved Abbreviated New Drug Application (ANDA) is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Tivicay, of ViiV Healthcare. ViiV Healthcare and Aurobindo Pharma signed a licensing agreement in 2014 that allows Aurobindo Pharma to supply Dolutegravir 50mg in 92 licensed countries, following completion of required local regulatory approval processes.
Auto stocks rose. TVS Motor Company (up 4.83%), Escorts (up 3.48%), Eicher Motors (up 3.18%), Hero MotoCorp (up 2.27%), Maruti Suzuki (India) (up 1.69%), Tata Motors (up 1.52%), Ashok Leyland (up 1.14%) and Bajaj Auto (up 0.80%), edged higher.
Mahindra & Mahindra (M&M) rose 0.43% at Rs 1,413.60. The company announced the proactive inspection of a fluid hose on all New Generation Scorpio & NuvoSport vehicles, manufactured till June 2016. This is in keeping with the company's customer centric approach, the company said. The inspection and subsequent rectification will be carried out free of cost for all New Generation Scorpio & NuvoSport customers, who will be individually contacted by the company. As an endeavor to ensure a hassle free experience for its customers, the company is proactively carrying out this activity, it said. This action is also in compliance with SIAM's voluntary code on vehicle recall, M&M said. The announcement was made after market hours yesterday, 21 September 2016.
Engineering and construction major L&T rose 1.88% at Rs 1,499 after the company said it has signed the principle contract with Vietnam Border Guard valued at $99.7 million for design and construction of high speed patrol vessels in India as well as for transfer of design and technology along with supply of equipment and material kits for construction of follow-on vessels at a Vietnam shipyard. The announcement was made during market hours today, 22 September 2016.
The Sensex bounced back today, 22 September 2016, after two-day fall. The Sensex had lost 127.08 points or 0.44% in the preceding two trading sessions to settle at 28,507.42 yesterday, 21 September 2016, from its close of 28,634.50 on 19 September 2016. The Sensex has gained 320.96 points or 1.13% in this month so far (till 22 September 2016). The Sensex has risen 2,655.59 points or 10.17% in calendar year 2016 so far (till 22 September 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 6,278.52 points or 27.91%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 304.15 points or 1.05%. The Sensex is off 1,251.61 points or 4.17% from a record high of 30,024.74 hit on 4 March 2015.
On the macro front, data released by the Reserve Bank of India (RBI) after trading hours yesterday, 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 overseas stock markets, European and Asian stocks edged higher mirroring gains in the US market after the Federal Reserve left interest rates unchanged and projected a less aggressive path for hikes next year and in 2018. US stocks registered strong gains yesterday, 21 September 2016, after the Federal Reserve kept interest rates unchanged but hinted at the possibility of a rate hike later this year. 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.
Back home, the Sensex rose 265.71 points or 0.93% to settle at 28,773.13, its highest closing level since 9 September 2016. The index surged 364.50 points or 1.28% at the day's high of 28,871.92. The index rose 185.65 points or 0.65% at the day's low of 28,693.07.
The Nifty 50 index rose 90.30 points or 1.03% to settle at 8,867.45, its highest closing level since 8 September 2016 . The index jumped 116.20 points or 1.32% at the day's high of 8,893.35. The index rose 60.65 points or 0.69% at the day's low of 8,837.80.
The market breadth indicating the overall health of the market was strong. On BSE, 1,693 shares rose and 1,045 shares declined. A total of 235 shares were unchanged. The BSE Mid-Cap index rose 1.39%. The BSE Small-Cap index rose 1%. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 3298 crore, higher than turnover of Rs 3180.94 crore registered during the previous trading session.
Among sectoral indices on BSE, the S&P BSE Finance index (up 1.65%), the S&P BSE Oil & Gas index (up 1.51%), the S&P BSE Bankex (up 1.49%), the S&P BSE Auto index (up 1.44%), the S&P BSE Capital Goods index (up 1.37%), the S&P BSE Power index (up 1.36%), the S&P BSE Utilities index (up 1.35%), the S&P BSE Energy index (up 1.30%), the S&P BSE Industrials index (up 1.28%), the S&P BSE Basic Materials index (up 1.26%), the S&P BSE Consumer Discretionary Goods & Services index (up 1.20%), the S&P BSE Realty index (up 1.16%), the S&P BSE Telecom index (up 1.06%), the S&P BSE Metal index (up 1.03%) and the S&P BSE Healthcare index (up 1.02%), underperformed the Sensex. The S&P BSE Consumer Durables index (up 0.89%), the S&P BSE FMCG index (up 0.42%), the S&P BSE Teck index (down 0.12%) and the S&P BSE IT index (down 0.36%), outperformed the Sensex.
Banks were in demand. Among state-run banks, Punjab National Bank (up 3.87%), Bank of India (up 3.10%), Vijaya Bank (up 3%), Central Bank of India (up 2.90%), Bank of Baroda (up 2.88%), Allahabad Bank (up 2.87%), Andhra Bank (up 2.69%), IDBI Bank (up 2.68%), State Bank of India (up 2.39%), Syndicate Bank (up 2.34%), Canara Bank (up 1.94%), Dena Bank (up 1.72%), Punjab & Sind Bank (up 1.45%), Indian Bank (up 1.15%), Corporation Bank (up 0.80%), UCO Bank (up 0.65%), Bank of Maharashtra (up 0.48%) and United Bank of India (up 0.23%), edged higher.
Union Bank of India rose 3.08% at Rs 145.75 after the bank said that it has completed the acquisition of 49% shareholding of Union KBC Asset Management Company and Union KBC Trustee Company from KBC Participations Renta S.A. and its affiliates (KBC Asset Management NV) on 20 September 2016. Accordingly, Union KBC Asset Management Company and Union KBC Trustee Company have become wholly owned subsidiaries of Union Bank of India. The announcement was made after market hours yesterday, 21 September 2016.
Last year, the board of Union Bank of India approved purchase of 49% stake in Union KBC Asset Management and Union KBC Trustee Company from KBC Participations Renta. KBC Participations Renta is a group company of Luxembourg-based KBC Asset Management NV. Union Bank of India and KBC Asset Management NV had formed two joint ventures - Union KBC Asset Management Company and Union KBC Trustee Company - in 2009 with 51% and 49% holding, respectively.
Among private sector banks, Federal Bank (up 3.10%), IndusInd Bank (up 2.98%), Yes Bank (up 2.34%), ICICI Bank (up 2.19%), Kotak Mahindra Bank (up 0.84%) and RBL Bank (up 0.67%), edged higher. City Union Bank (down 0.65%) and Axis Bank (down 1.01%), edged lower.
Index heavyweight HDFC Bank rose 1.25% at Rs 1,309 after the bank said it has allotted senior, unsecured, redeemable, long-term non-convertible bonds in the nature of debentures amounting to Rs 6700 crore on a private placement basis. The announcement was made during market hours today, 22 September 2016.
Index heavyweight and housing finance major HDFC rose 1.71% at Rs 1,416 after the company announced that it intends to raise Rs 1340 crore through issue of non-convertible debentures on private placement basis. The debentures will carry a coupon rate of 7.67% per annum and will have a tenor of 1 year 2 months. The issue will open and close on the same day tomorrow, 23 September 2016. The announcement was made after market hours yesterday, 21 September 2016.
Index heavyweight Reliance Industries rose 1.52% at Rs 1,087.65. The stock hit a high of Rs 1,095.50 and a low of Rs 1,079.10 in intraday trade.
Aurobindo Pharma jumped 6.33% to Rs 857.15 after the company during trading hours today, 22 September 2016, said it received tentative approval of Dolutegravir 50mg from US Food & Drug Administration (USFDA) for the treatment of HIV. This important milestone marks the first FDA approval of a generic version of Dolutegravir (DTG), an integrase strand transfer inhibitor recommended for use in treatment-naïve patients by the US Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO). Through an innovative collaboration with ViiV and the Clinton Health Access Initiative, Inc. (CHAI), the product is expected to be launched in sub-Saharan Africa in late 2016. The approved Abbreviated New Drug Application (ANDA) is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Tivicay, of ViiV Healthcare. ViiV Healthcare and Aurobindo Pharma signed a licensing agreement in 2014 that allows Aurobindo Pharma to supply Dolutegravir 50mg in 92 licensed countries, following completion of required local regulatory approval processes.
Auto stocks rose. TVS Motor Company (up 4.83%), Escorts (up 3.48%), Eicher Motors (up 3.18%), Hero MotoCorp (up 2.27%), Maruti Suzuki (India) (up 1.69%), Tata Motors (up 1.52%), Ashok Leyland (up 1.14%) and Bajaj Auto (up 0.80%), edged higher.
Mahindra & Mahindra (M&M) rose 0.43% at Rs 1,413.60. The company announced the proactive inspection of a fluid hose on all New Generation Scorpio & NuvoSport vehicles, manufactured till June 2016. This is in keeping with the company's customer centric approach, the company said. The inspection and subsequent rectification will be carried out free of cost for all New Generation Scorpio & NuvoSport customers, who will be individually contacted by the company. As an endeavor to ensure a hassle free experience for its customers, the company is proactively carrying out this activity, it said. This action is also in compliance with SIAM's voluntary code on vehicle recall, M&M said. The announcement was made after market hours yesterday, 21 September 2016.
Engineering and construction major L&T rose 1.88% at Rs 1,499 after the company said it has signed the principle contract with Vietnam Border Guard valued at $99.7 million for design and construction of high speed patrol vessels in India as well as for transfer of design and technology along with supply of equipment and material kits for construction of follow-on vessels at a Vietnam shipyard. The announcement was made during market hours today, 22 September 2016.
The Sensex bounced back today, 22 September 2016, after two-day fall. The Sensex had lost 127.08 points or 0.44% in the preceding two trading sessions to settle at 28,507.42 yesterday, 21 September 2016, from its close of 28,634.50 on 19 September 2016. The Sensex has gained 320.96 points or 1.13% in this month so far (till 22 September 2016). The Sensex has risen 2,655.59 points or 10.17% in calendar year 2016 so far (till 22 September 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 6,278.52 points or 27.91%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 304.15 points or 1.05%. The Sensex is off 1,251.61 points or 4.17% from a record high of 30,024.74 hit on 4 March 2015.
On the macro front, data released by the Reserve Bank of India (RBI) after trading hours yesterday, 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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