Sensex, Nifty Slide For Second Day On Rupee Weakness
Indian shares dropped after fluctuating between gains and losses amid weakness in rupee
Market Wrap
Closing Bell
Indian shares dropped slightly lower after fluctuating between gains and losses amid weakness in local currency due to demand for the American unit from importers and banks.
The S&P BSE Sensex fell 0.1 percent to 26,726 while the NSE Nifty was little changed at 8,236. This was the second session where the 50-share index failed to hold the 8,250-mark.
However, the market remained encouraging with the balance slightly tilted in favour of the buyers. About 850 stocks advanced, 758 declined and 312 remained unchanged on the NSE.
The market is consolidating in a narrow range ahead of the third quarter earnings season this week. The participants are lined up with checklist to determine how the effect of cash crunch and the rise in commodity prices have impacted the margins and the profitability. Any underestimated impact is likely to create a cascading effect to the euphoria of a pre-budget rally.”Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services wrote in
Chart Of The Day
HCC Wins Rs 369 Crore Order
Shares the construction firm swung between gains and losses after it bagged an order from IRCON International Ltd. for building cable stayed bridge, including its approaches, across river Anji Khad in Jammu and Kashimir.
This is the fifth order HCC has received from IRCON. The total length of the bridge is 473.25 meters, including the 290-meter-long main span, making it the longest of its kind for Indian railways.
The project is to be completed in 36 months, HCC said in its filing.
European Shares Decline
BQSpotted
Graphite India Hits Upper Circuit
- Shares of the graphite electrodes maker jumped as much as 20.18 percent to Rs 94.4
- Has been on a winning streak for five sessions.
- Stock gained 23 percent in last 30 days.
- Volume 127.9 times 30-day average volume
- RSI is 89, indicating that the stock may be overbought
- Market capitalisation: Rs 1,844 crore
India April-Dec. Indirect Tax Collection Rises 25% YoY
Finance Minister Arun Jaitley said indirect tax collection in the month of December rose 14.2 percent YoY.
- April-December direct tax collection up 12.01 percent
- April-December excise collection up 43 percent; service tax up 23.9 percent
- December customs duty down 6.3 percent on decline in gold imports
- November value-added tax collection by states show growth
Burnpur Cement Gains 4%
Shares of the cement maker gained as much as 4.1 percent. The stock has gained five times in six sessions.
The company said its account with lenders has become irregular dues to non-payment of scheduled payment on account of cash flow mismatch. It attributed demonetisation and depressed market conditions.
The matter is under discussion with lenders and lead bank is positive on suitable restructuring. Other banks are also in the process to follow the decision of consortium meeting.”Company’s exchange filing.
8K Miles Pares Swings After Q3 Earnings
Shares of the midcap I.T. firm swung between gains and losses after reporting third quarter earnings. The company made a profit after minority interest of Rs 26.86 crore for the three-month period ending December, compared to Rs 23.62 crore in same period previous quarter.
It clocked sales of around Rs 142 crore, an increase of 91 percent year-on-year. The EBITDA grew to Rs 49 crore, an increase of 92 percent YoY.
The stock has gained seven out of the last nine trading session.
BQSpotted
Allied Digital Snaps 6-Day Winning Streak
- The stock was locked in a 5 percent lower circuit earlier, but now its trading 1 percent lower.
- Seeing significant volatility for the second day running.
- On Friday, the stock fell 4.6 percent, before ending the session 1.5 percent higher.
Rupee Again Breaches 68-mark
The rupee again broke below the 68-mark by depreciating 24 paise to trade at 68.20 against the dollar in early trade at the Interbank Foreign Exchange, due to increased demand for the American unit from importers and banks.
Moreover, sustained capital outflows and dollar's strength against some other currencies overseas also weighed on the local unit but a higher opening in the domestic equity market limited the rupee's fall, forex dealers said.
The rupee had closed steady at 67.96 against the US dollar on Friday amid renewed selling in the domestic equity against the backdrop of sustained capital outflows.
Bharat Earth Movers: Divestment Boost
Bharat Earth Movers jumped as much as 19.6 percent to Rs 1,188, the most since May 19 2014, after the government carried out a strategic divestment in the company. The Cabinet Committee of Economic Affairs approved divestment of 26 percent equity shares in BMEL out of the government's total 54.03 percent, the company said in a statement to the exchanges.
The move is in line with the government's total divestment target of Rs 56,500 crore for the financial year 2016-2017. The government had completed nearly 60 percent of its target for divestment through minority stake sales, by the end of November itself.
Opening Bell
Indian shares climbed marginally tracking positive trade in Asian equities even as technology stocks continue to falter.
The S&P BSE Sensex gained 0.3 percent to 26,860 while the NSE Nifty advanced 0.2 percent to 8,263. However, both the indices pared their initial opening gains to trade little changed.
The market, however, was encouraging with more buyers than sellers. About 863 stocks advanced, 543 declined and 469 remained unchanged on the NSE.
Movers & Shakers: Aurobindo Pharma, Sobha, Indian Overseas Bank And More
Stocks To Watch
- BEML: Says government to divest 26 percent of its 54.03 percent holding in company to strategic buyers
- Granules India: Days Gagillapur facility completed inspection by INFARMED, Portugal
- Rashtriya Chemicals (RCF): Issued commercial paper for Rs 75 crore
- Sobha: Q3 new sales value falls 22 percent YoY to Rs 373 crore
- Aurobindo agrees to buy Portugal’s generis for 135 million euros
- Tata Motors considers global innovation centers (PTI)
For a complete list of stocks to watch, click HERE
Data To Watch
- 01/09-01/12: India car sales data for Dec. (prior 173,606)
Money Market Heads-Up
The government said it expects India to grow at the slowest pace in three years in the current fiscal year ending March. GDP is likely to expand at 7.1 percent, the official estimates showed but it is better that you consider this number with some caution.
First, it doesn’t capture data from November onwards when Prime Minister Narendra Modi shocked the nation by banning high-value currency notes. So sovereign bonds that had a good run of gains in the last week with yields dropping 13 basis points, are likely to show a muted reaction to the print but yields are still biased lower.
In the world of currencies, a solid performance showed by the US labour market is again adding to the dollar power. Asian currencies are lower and rupee too may find itself under pressure in the session.
Talking Points
- Modi’s cash ban may help India cut taxes: Power Minister
- India sees economy slowing even without Modi shock ban on cash
- FY17 GDP seen growing 7.1 percent; doesn’t include cash ban effects
- India sees GDP growth at 7.1 percent for year ending March; estimate 6.8 percent
- Portuguese PM Antonio Costa on India visit till January 12
- India’s December gold imports said to fall 46 percent to 56.9 tonne YoY
- India winter-sown crops planted in 60.2 million hectares versus 56.6 million hectares
- SEBI talking to MFs, insurance companies on rules to invest in REITs
- SEBI said to consider mandatory company bond reissuance
- Forex reserves rise $625.5 million to $360.3 billion in week to December 30: RBI
- Rajan says central banks violating inflation goal on lower side
- Vodafone seeks partner to merge its India unit with: Telegraph
- Global funds sell Rs 255 crore of local stocks; domestic funds buy Rs 165 crore on January 6: Provisional data
- Max Ventures to consider raising funds via preferential, rights issue
- Rajesh Laddha said to resign as Piramal Enterprises CFO: CNBC
5 Things To Watch
Good Morning!
The Nifty futures on the Singapore Stock Exchange, an early indicator of Nifty’s performance in India, remained unchanged at 8,269.
Asian stocks climbed higher this morning tracking positive cues from U.S. equity markets while crude oil halted a three-day advance. Markets in Japan were closed for a holiday.
Fresh sign of strength in the U.S. labour market reignited the dollar rally and sent U.S. stocks to all-time highs, with the Dow Industrial Average climbing within one of 20,000. Treasuries tumbled with gold as data boosted the case for higher interest rates.
The offshore yuan extended its decline following Friday’s biggest loss in a year, along with most other Asian currencies. Data over the weekend showed China’s foreign-exchange reserves fell for sixth straight month, reflecting efforts by the nation’s policy makers to cushion the depreciation of the yuan.
In Britain, Prime Minister Theresa May said on Sunday that negotiations on Brexit will be about “getting the right relationship, not about keeping bits of membership.”