Sensex Ends Volatile Session Higher, Nifty Just Shy Of 8,400

Indian shares swung between gains and losses before closing higher for the day as energy producers and metal companies advanced while select banking and pharmaceutical counters dragged.

The S&P BSE Sensex rose 0.3 percent to 27,117 while the NSE Nifty gained 0.5 percent to just shy of the 8,400-mark. The market breadth was also encouraging with 1,007 stocks advancing, 631 declining and 279 remaining unchanged on the NSE.

On the flipside, the rupee pared most of its gains after strengthening as much as 0.2 percent against the dollar.

Shakti Pumps Rallies On High Volumes

• Shakti Pumps India is trading with gains of around 8 percent.
• The stock has risen in 15 out of the last 20 tradings sessions, and has gained 20% since December 27.
• Volumes currently stand at 11 times its 20-day average

Shares of Sajjan Jindal-led firm dropped as much as 4 percent to Rs 58.8 after it disappointed street with its third quarter earnings.

The company posted a net profit of Rs 21.39 crore for the three-month period ending December, compared to Rs 115 crore estimated by analysts in a Bloomberg poll. It clocked sales of around Rs 1,900 crore for the third quarter, compared to Rs 1,960 crore estimated.

• Total cost Rs 1,490 crore versus Rs 1,690 crore year ago
• Plant load factor 56 percent in Q3 versus 71% YoY; net generation 4.6 units versus 6.05 year ago
• Sees margins under pressure in the short-term
• Says CFO Pramod Menon resigned; names Jyoti Kumar Agarwal as replacement
• Approves raising up to Rs 1,000 crore via debentures for working capital, capex and debt refinancing

Shares of the company jumped as much as 17 percent to Rs 26.30 after it registered a profit compared to a loss in the previous year. Net profit stood at Rs 3.75 crore as compared to a loss of Rs 2 crore in the corresponding quarter last year.

Sales grew 11.7 percent to Rs 89.5 crore as against Rs 80.1 crore last year. Margins surged to 18.2 percent against 12.3 percent last year.

Shares of the infrastructure company’s technology arm fell as much as 3.14 percent after the company’s standalone net profit for the October-December quarter came in at Rs 109 crore compared to Rs 112 crore in the previous quarter.

Consolidated sales for the company were down 1.6 percent this quarter at Rs 810 crore compared to Rs 823 crore in the previous quarter. Margins on Earnings before interest, tax, depreciation and amortization declined to 20.3 percent from 21.9 percent in the July-September quarter.

Lupin Ltd. surged after the pharmaceutical firm got the U.S. Food and Drug Administration’s (FDA) final approval to market the generic version of Apotex Technologies Inc.’s antidepressant Paxil tablets.

Read full story HERE!

Drug firm Suven Life Sciences has been granted a patent by Australia for a drug used in the treatment of neuro-degenerative diseases.

Suven Life in a filing to BSE stock exchange announced “the grant of one product patent from Australia corresponding to the New Chemical Entities (NCEs) for the treatment of disorders associated with neuro degenerative diseases.” The patent is valid till 2033, the filing said.

Shares pared early gains but traded higher by 0.8 percent at Rs 172.15.

• Amara Raja (-2.3%): Q3 net profit Rs 112 crore versus Rs 137 crore YoY
• Indiabulls Housing (+1.1%): Q3 profit Rs 750 crore versus Rs 602 crore YoY; To pay Rs 9 a share as third mid-year dividend
• Mahindra & Mahindra (+0.4%): Unit Ssangyong Motor posts 50 billion won operating profit for 2016 (Daily)
• Persistent Systems (-3.2%): Group Q3 profit Rs 81.89 crore versus Rs 69.57 crore; announces interim dividend of Rs 6 a share
• UltraTech Cement (+1.7%): Profit rises 6.7 percent; board approves new plant
• Unichem Labs (+2%): Q3 net Rs 26.10 crore versus Rs 20.66 crore YoY
• United Spirits (+4.4%): Q3 profit jumps fourfold, sales climb 6.2 percent
• Rallis India(+2%): Q3 profit Rs 25.43 crore s versus Rs 21.11 crore YoY
• RBL Bank (+4.6%): Q3 profit Rs 129 crore versus Rs 81.05 crore YoY

• Aarvee Denims (+0.6%): Says Oriental Insurance settled claim and paid Rs 6.29 crore in final settlement
• Dilip Buildcon (+.2%): Gets letter of award for Rs 1,670 crore of project from Northern Coalfields
• Fortis Healthcare (-0.5%): To consider issue of NCDs up to Rs 500 crore on private placement
• Kalpataru Power (2.8%): Bagged new orders above Rs 825 crore
• PNB Housing (-0.2%): To consider selling Rs 6,000 crore of debentures on January 24
• State Bank of India (-0.4%): Raises Rs 5,680 crore via 210.7 million shares allotment to government. Eyes up to $1.5 billion capital raising next FY: Reuters
• Tata Communications (-0.1%): Unit acquires 35 percent stake in Teleena Holding
• Union Bank of India (+0.3%): To consider issue of Rs 5,410b crore and further Rs 180 crore of shares to government on preferential basis
• Winsome Diamonds (-2.7%): Assets to be auctioned to recover 42.6b rupees
• JSW Energy (-0.6%): To consider raising of long term funds via NCDs
• Reliance Industries (+0.3%): Said in talks to raise up to $2.25 billion (Economic Times)

Rupee recovered by 17 paise to 68.01 against the U.S. dollar in early trade today on increased selling of the American currency by exporters.

Besides, the dollar's weakness against some currencies overseas supported the rupee but a lower opening of the domestic equity market capped its gains, forex dealers said.

On Friday's session, the local unit had ended lower by 5 paise to close at an over one-week low of 68.18 as the dollar gathered strength ahead of the US Presidential inauguration.

PTI

Opening Bell

Indian shares declined as gains in metal makers and energy producers get countered by losses in index heavyweights banks and technology companies.

The S&P BSE Sensex dropped as much as 0.2 percent to 26,963 while the NSE Nifty too lost 0.2 percent to 8,327. However, the market breadth was encouraging with more buyers than sellers. About 862 stocks advanced, 563 declined and 456 remained unchanged on the NSE.

• Ashoka Buildcon Q3
• Asian Paints Q3
• Bharti Infratel
• Chennai Petroleum Corp.
• Den Networks
• EIH
• GIC Housing Finance
• Gujarat Narmada Valley
• Gujarat State Fertilizers
• Hindustan Unilever
• JM Financial
• Johnson Controls-Hitachi Air
• JSW Energy
• Karnataka Bank
• Larsen & Toubro Infotech
• Tata Communications
• Trent

• India seeks bids for advising on strategic stake sale in BEML
• India issues amendment to Pradhan Mantri Garib Kalyan plan
• Cooperative banks barred from India income disclosure plan
• Modi budget may put consumers before taxes to spur India demand (Full report HERE)
• SEBI issues rules for commodities eligible for derivatives
• Forex reserves rise $687.9 million to $359.8 billion in week to January 13: RBI
• Indian farmers plant winter crops in 62.83 million hectares versus 59.24 million
• Indian sugar production to fall 18 percent in 2016-17: Green Pool
• India reservoirs hold 26 percent more water than a year earlier
• Global funds sell Rs 26.34 crore of local stocks; domestic funds sell Rs 175 crore on January 20: Provisional data
• India pressed ahead with note ban despite RBI concerns (Reuters)
• Fairfax said to mull selling 25 percent of India’s ICICI Lombard (Reuters)

• SEBI says Tata-Mistry dispute may not need its intervention (Business Standard)
• At least 23 die as train derails in India’s Andhra Pradesh (NDTV)
• Hong Kong withdraws visa-free facility for Indians (PTI)
• Switzerland, India to discuss free trade agreement: T-A
• India approves ordinance on Tamil Nadu bull-taming event (CNBC-TV18)
• India forms panel to probe Jet Air Goa runway skid mishap (PTI)

Good Morning!

The Nifty futures on the Singapore Stock Exchange, an early indicator of Nifty’s performance in India, declined 0.3 percent to 8,346.

Asian markets outside of Japan rose this morning, as the U.S. dollar slumped after Donald Trump in his first days in office offered little news on his plans to boost growth while stirring concerns over protectionism.

The U.S. currency fell against its major peers and gold added to a four-week advance. Japan’s Topix index lost 1.1 percent on strengthening yen while copper paced gains among industrial metals.

Oil held a two-day rise after members of the OPEC (Organization of Petroleum Exporting Countries) along with other producers agreed on a way to monitor the compliance to the supply cut agreed upon.

U.S. equity markets ended Friday’s trade on a positive note with the Dow Jones Industrial Average index snapping its five-day losing streak. The S&P 500 index and the NASDAQ composite index gained 0.3 percent each.