Market Wrap
Closing Bell
Indian shares continued to exhibit sluggish trade through the inaugural week of 2017 with benchmark indices closing yet another tepid day of trade.
The NSE Nifty 50 index has remained in a 70 point range since Monday and closed flat for the second day running. The index also failed to close above the 8,200 mark. The S&P BSE Sensex too fell 10 points to end flat.
Telecom and I.T. stocks led the gains on the indices. The market breadth was firmly in favour of the buyers with 936 stocks advancing compared to 655 stocks that declined. 304 stocks remained unchanged on the National Stock Exchange.
BGR Energy On Foray Into Water Treatment Business
Shares of the Mumbai-based company surged as much as 8.5 percent to Rs 127.80 after the company won a contract to manufacture, supply, erection and commissioning of water treatment plant in worth Rs 209.50 crore in Andhra Pradesh.
The company also won a contract worth Rs 440 crore from the Chennai Metropolitan Authority to design, build, operate and maintain a 45MLD Capacity Tertiary Treatment Reverse Osmosis (TTRO) plant at Kodungaiyu.
Kerala FM: April 1 Deadline For GST Unlikely To Be Met
At the end of the two day GST council meet, Kerala Finance Minister Thomas Issac said that meeting the April 1 deadline for rolling out the tax reform seems unlikely.
He also ruled out implementing the law in June or July saying that due to the many complexities involved, the ideal time to roll out the GST would be September.
Will The Commodity Rally Last Through 2017?
BQSpotted
Rushil Decor Gains 11 Percent
- The laminate sheet producer is up with gains of around 11 percent
- The stock is up for the third straight session, having gained more than a percent in the first two days of 2017
- Today's volume is 10.80 times its 20-day average volume on the National Stock Exchange.
Wockhardt Clarifies On U.S. FDA Warning
Saying that the warning issued by the U.S. FDA on its Ankleshwar unit is part of the ‘import alert’ issued by the drug regulator on the same unit in July 2016, pharmaceutical company Wockhardt Ltd. clarified that there is nothing further that needs to be updated to the exchanges.
Since the ‘import alert’ by the U.S. FDA has already been effected on the said (Ankleshwar) unit of the company in August 2016 and the ‘warning letter’ is a part of the same process of the U.S. FDA, in view of the company, there are no further updates in this context were required to be updated to the exchanges.Statement Issued By Wockhardt
European Shares Edge Higher
Election Commission Announces Polling Dates
The Election Commission today has announced the dates for the five poll-bound states of Uttar Pradesh, Punjab, Goa, Manipur and Uttarakhand.
Polls in India’s largest state of Uttar Pradesh will be held in seven phases. The date of polling for the seven phases are as follows:
Counting for all the states will be held on March 11, 2017.
BQSpotted
Future Retail's 7-Day Surge
- Up as much as 8 percent today, taking its gains over the period to 19%.
- Volumes at 6.2 times its 20-day average
- Department stores operator; market cap: Rs 6,780 crore
Just Dial Bucks The Trend....Again!
While the Nifty I.T. index is seeing steady gains of almost one percent in trade, one stock that is playing party pooper is Just Dial.
The stock which snapped a eight-day losing streak on December 29, embarked on a four-day gaining streak which it managed to snap today.
The stock fell as much as 2.02 percent to Rs 342.10.
Unlocking India’s Digital Potential
BQSpotted
Mahanagar Gas: 6-Day Winning Streak
- Up for the 6th straight day
- Gains 9% in 6 sessions
- Makes fresh life time high
- Has doubled from issue price of Rs 421, since listing on July 1, 2016.
Jubilant Life Jumps On Diagnostic Product Supply Deal
Shares of the drug maker jumped as 11.4 percent to Rs 711 after its subsidiary signed long-term contracts in the U.S. for supply of some of its diagnostic and therapeutic products.
The contracts are to be supplied by JDI over 39 months effective January 2017, the company said its filing. The pharma firm’s Chairman Shyam S Bhartia said the contracts provide visibility on its future revenues and would strengthen the company for its growth going forward.
The stock has risen 123.7 percent in the last six months, compared to a decline of 5.5 percent in the S&P BSE Healthcare Index.
India's Service Sector Activity Remains Weak In December
The Nikkei India Services Purchasing Managers' Index, or PMI, was 46.8 in December, little changed from November's 46.7. The latest reading showed contraction for the second month in a row.
A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.
The Indian service economy ended 2016 on a grim note, with the average PMI activity index reading for the October-December quarter the lowest since early-2014.Pollyanna De Lima, economist at IHS Markit
Panel members widely blamed the deterioration in economic conditions on the rupee demonetisation.
Of concern, business confidence among service providers plunged to one of the lowest in the series’ 11-year history, suggesting that an imminent rebound from the rupee-demonetization downturn is unlikely.Pollyanna De Lima, economist at IHS Markit
Stocks At 52-Week High
- Oil India (+0.9% to Rs 462)
- Indian Oil Corp (+0.8% to Rs 348)
- MRPL (+8.5% to Rs 111)
- Chennai Petroleum (+0.7.2% to Rs 325)
- Navneet Education (+4% to Rs 116)
- Jain Irrigation System (+7.5% to Rs 63)
- DPSC (+3% to Rs 39.7)
Mahanagar Gas Hits Fresh Lifetime High
- Gains for 6th straight day
- Up 9 percent in 6 sessions
- Has doubled from issue price of Rs 421
Other Gas Stocks
- Indraprastha Gas (+0.4 percent to Rs 950)
- Gujarat Gas (+1 percent to Rs 540)
Rupee Rebounds On Weak Dollar
The rupee firmed up by 12 paise to 68.21 against the U.S. dollar today at the Interbank Foreign Exchange after selling of the American currency by exporters and banks intensified.
Dealers said fresh selling of the American unit and the dollar's weakness against other currencies overseas, barring yen, gave the rupee more muscle. Further, a higher opening in the domestic equity market supported the rupee uptrend, they added.
Yesterday, the rupee had lost 11 paise to close at a fresh one-month low of 68.33 against the American currency on heavy dollar demand from corporates and importers.
PTI
Opening Bell
Indian shares edged higher tracking positive trade in global equities as data from U.S., China and Europe boosted optimism for global growth.
The S&P BSE Sensex gained 0.2 percent to 26,701 while the NSE Nifty too climbed 0.2 percent to 8,211. The market breadth remained in favour of the buyers with 1034 stocks advancing, 363 declining and 455 remaining unchanged on the NSE.
The S&P BSE Consumer Durable Index has gained 10.5 percent in the last seven sessions after declining 14 percent from November 8, the day Prime Minister Narendra Modi banned high- currency notes.
Movers & Shakers: Wockhardt, MOIL, Bharti Airtel And More
Money Market Heads-Up
The U.S. Dollar index on Tuesday rose 0.5 percent helping the greenback to stay strong in the new year. In Asia, the South Korean won has slid 0.4 percent against the dollar and this pretty much, will be the fate of the rupee today.
The local currency has dropped 0.5 percent against the dollar in the last two sessions and is now trading at 68.33, slowly inching toward its record low touched in November.
In bonds, the government decision to reduce its borrowing plan triggered a rally in the early hours of Tuesday. This provided the primary dealers an opportunity to book profit even as foreign banks mopped up the debt. Yield on the benchmark note, therefore, rose 4 basis points to 6.44 percent.
With no major cues till Friday, market is expected to stay in a range.
5 Things To Watch
Stocks To Watch
- Glenmark Pharma: Gets FDA clearance of IND for GBR 1302-BEAT phase I trial
- Hikal: Concluded sale of approximately 1.52 acres research and development property in Bengaluru
- Housing Development: Cuts interest rate on home loans to as low as 8.65 percent; sold loans of Rs 3,360 crore in third quarter
- Nandan Denim: Foreign funds can now invest up to 49 percent in company, says RBI
- Wockhardt: Plant in Ankleshwar gets U.S. FDA warning letter
- NBCC India: To consider free share issue to shareholders
- Pratibha Industries: To consider issue of shares to lenders
- Dr Lal Pathlabs: Rated new buy at LKP Shares & Securities
Data To Watch
- 10:30am: Nikkei India services PMI for Dec. (prior 46.7)
- 10:30am: Nikkei India composite PMI for Dec. (prior 49.1)
IPO Watch
- India’s Housing and Urban Development Corp files DRHP for IPO
- BSE gets markets regulator’s approval for IPO
Talking Points
- More Indian states need GST compensation after notes ban
- Present form of GST poses serious challenges for the IT sector: NASSCOM
- Trade ministry seeks exempting leather industry from GST
- India mid-term review of foreign trade policy has commenced
- Rajan: Fed raising rates eases pressure on other central banks
- Sitharaman says seeking cut in gold import duty
- India approved Rs 4 lakh crore of defense purchase plans since July 2014; government sees $2 billion of defense export by March 2019 (Bloomberg)
- India to decide on new single-engine combat jet production line
- India October-December sugar sales significantly lower YoY: ISMA
- India won’t agree to Apple’s demand for special concessions (Read HERE why)
- Global funds sell Rs 500 crore of local stocks; domestic funds buy Rs 562 crore yesterday: Provisional data
- AirAsia Philippine unit readies flights to New Delhi (Business Standard)
- J.S.Khehar to take over as India’s chief justice today
- Modi to take up India poll reforms in all-party meeting before budget (PTI)
- Paytm gets RBI nod to formally start payments bank: Reuters
Good Morning!
The Nifty futures on the Singapore Stock Exchange, an early indicator of Nifty’s performance in India, advanced 0.1 percent to 8,201.
Asian stocks climbed, led by Japanese equities as traders in Tokyo returned from holiday and as data fuelled confidence in the U.S. economy. A global equity rally has extended into the new year as data from the U.S., China and Europe boosted optimism for global growth.
U.S. manufacturing expanded at the fastest pace in two years led by the biggest pickup in new orders since 2009.
The positive economic data helped the U.S. markets snap a three-day losing streak. The S&P 500 Index posted its biggest gains in four weeks while the Dow Jones Industrial Average gained over a 100 points to head closer towards the 20,000-mark.
Oil resumed its advance after posting its biggest single-day fall since December 14. U.S. inventories are expected to have dropped by 2.25 million barrels last week, according to a Bloomberg survey. The official report from the Energy Information Administration is due Thursday.
The OPEC (Organization of Petroleum Exporting Countries) and non-member producers have begun output cuts in-line with the November 30 deal in order to stabilise the oversupplied market. Kuwait has initiated an output cut of 130,000 barrels per day from January 1, while Oman has started cutting production by 45,000 barrels per day.
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