Market Wrap
Closing Bell
Indian shares closed lower for a second straight session as traders held on to their big bets ahead of the GDP data and Donald Trump’s speech and as they await GDP data due later in the day.
The S&P BSE Sensex declined 0.2 percent to 28,743 while the NSE Nifty 0.2 percent as well to 8,879. The market breadth was skewed in favour of the bulls. About 905 stocks advanced, 727 declined and 278 remained unchanged.
OECD Speaks To BloombergQuint
BQSpotted
BHEL Sees Sudden Spike; Jumps 7.2%
- Snaps its 3-day losing streak
- Rallies in the last 15 minutes.
- Volumes are at 0.9 times its 20-day average
- Stock has entered the over bought zone with Relative Strength Index of over 70
Block Deal Alerts
- ICICI Bank has 20 lakh shares change hands in a block
- BPCL has 21 lakh shares change hands in a block
Source: Bloomberg
Gold Recoups After Positive Global Leads, Buying Spurt
Gold received support from a positive global trend and fresh buying by local jewellers as the price recovered by Rs 25 to Rs 30,150 per 10 grams at the bullion market.
However, silver gave up Rs 30 at Rs 43,850 per kg on lower offtake from industrial units and coin makers.
Traders attributed the rise in gold prices to a firm trend overseas and pick-up in buying by local jewellers driven by the ongoing wedding demand.
Globally, gold rose 0.08 percent to $1,253.10 an ounce in Singapore.
PTI
Hindalco Gains 2% After Gets Green Nod For Copper Plant Expansion
Hindalco Industries, the flagship company of Aditya Birla Group, has received the environment clearance for setting up of a new cast copper rod plant in Gujarat's Bharuch district at a cost of Rs 240 crore.
Hindalco Industries's Birla copper unit has a mega copper smelting and refining complex at villages Lakhigam and Dahej in Bharuch district. It now wants to expand its continuous cast copper rod plant in the existing premises of this unit.
The company's proposal is to expand production capacity of continuous cast copper rod (CCR) from 2,44,000 tonnes per annum (TPA) to 4,84,000 TPA by setting up a new unit.
Tata Steel's Odisha Ferro-Chrome Plant Starts Production
Tata Steel's Rs 542-crore ferro-chrome plant in Odisha has started production.
"This marks the completion of the commissioning of the ferro-chrome plant. It also goes a long way in consolidating our footprint in Odisha and the long-standing partnership with the state towards industrial progress of the region," said DB Sundara Ramam, Tata Steel Executive-in-Charge, Ferro Alloys and Minerals Division.
The plant has a 100 percent water harvesting facility that caters to most of the water requirements of the plant. It has an indigenously built semi-closed hybrid furnace. Also, it is the first plant in India to use briquetting method of chrome ore fines agglomeration.
L&T Unit Gets 5-Year Job Order From Shell
L&T's unit signed a 5-year framework agreement with Shell for engineering, procurement and construction management services.
L&T Hydrocarbon Engineering, a fully-owned subsidiary of Larsen & Toubro, has signed an enterprise framework agreement with Shell Global Solutions International for providing engineering, procurement and construction management servicesLarsen and Toubro said in a BSE filing.
The company said the order, for five years, is for Shell projects in the Middle-East, South-East Asia and India.
The stock gained 0.4 percent to Rs 1,472 apiece on the NSE.
European Maintains Steady Gains
BQSpotted
Manali Petrochemicals Surges
Manali Petrochemicals is up for the third consecutive session and has gained as much much as 13.9 percent today.
- The volumes stand at two times its 20-day average volumes on NSE.
- The stock in the previous two sessions had gained close to 2 percent.
- The company, which manufactures a variety of petrochemicals, has a market cap of around Rs 685 crore.
Logistics Stocks Rally On GST Boost
Shares of logistics companies gained anywhere between 0.5 percent and 9 percent after Economic Affairs Secretary Shaktikanta Das said that all states have agreed to a July 1 roll out of the much awaited Goods and Service Tax.
Top Gainers
- Snowman Logistics (+6.8%)
- Gati Ltd. (+6.2%)
- Transport Corp (+3%)
- Patel Integrated (+9%)
- Sical Logistics (+3%)
- Allcargo Logistics (+5%)
- Blue Dart Express (+0.6%)
Energy Producers Drag
Dilip Buildcon Completes Rs 190.80 Crore Road Project In MP
Shares of the infrastructure firm gained 2.9 percent after it completed Rs 190.80 crore road project in Madhya Pradesh.
"The company has completed the said project 185 days prior to the scheduled completion period and due to the earlier completion of the project, it is entitled to receive maximum allowable three percent bonus of Rs 5.72 crore," the company said in its filing.
Tata Sons, Docomo Agree To Settle India JV Dispute
Tata Sons Ltd. and its estranged partner NTT Docomo Inc. on Tuesday filed a joint petition in the Delhi High Court that they have agreed to settle the dispute regarding Tata Group paying an arbitration award of $1.17 billion (Rs 7,250 crore) to the Japanese telecom company.
- Tata Teleservices jumps 15%
For more details on the news story, click HERE
Lupin Gets FDA Nod To Market Cancer Drug
Shares of the drug maker gained nearly 0.6 percent after it received final approval from the U.S. FDA to market sodium sulfate, potassium sulfate, magnesium sulfate oral solution used in treatment of a form of cancer.
Lupin said it will commence promoting the product shortly. The approved product is indicated for cleansing of the colon in preparation of colonoscopy in adults. Suprep Bowel Prep Kit had U.S. sales of $207.2 million.
Rupee Drifts Lower
The rupee drifted lower by 9 paise to 66.80 against the U.S. dollar in early trade.
Forex dealers said that month-end demand for the greenback from importers and gains against other currencies overseas, as investors keenly await Trump's speech at a joint session of Congress today, put pressure on the rupee.
They said, however, a higher opening of the domestic equity market capped the rupee's losses.
Yesterday, The rupee had strengthened to close at a fresh three-and-a-half month high of 66.71, appreciating by 11 paise on the back of sustained selling of the American dollar by exporters and banks.
Idea Cellular Falls After Block Deal
Shares the country’s third largest telecom company dropped as much as 4.7 percent, the most since February 13, making it the worst performing stock on the Nifty.
About 12 crore shares changed on the BSE in a single block deal, according to Bloomberg data. While the buyers and sellers were not immediately known, private equity firm Providence was expected to sell 3.33 percent stake in the telecom company for an estimated amount of more than Rs 1,200 crore, PTI reported.
Opening Bell
Indian shares climbed tracking positive Asian cues, but indices remained in a very tight range as investors held big bets ahead of Donald Trump’s speech and as they await GDP data due later in the day.
The S&P BSE Sensex gained 0.2 percent to 28,866 while the NSE Nifty advanced 0.2 percent as well to 8,913. The market breadth also was reassuring with more number of buyers than sellers. About 967 stocks advanced, 474 declined and 444 remained unchanged on the NSE.
5 Things To Watch
Stocks To Watch
- Bharat Financial: Says report on talks with RBL Bank are market speculation
- Bharti Airtel: Google forms partnership with Bharti Airtel and SK Telecom
- Coal India: Says unit South Eastern Coalfields approves up to 12b rupees buyback plan
- Dewan Housing: Postponed proposed NCD issue to March 1
- Idea Cellular: Providence may sell 3.33 percent stake in the telecom company at Rs 106.5 to Rs 114.55 each.
- Jain Irrigation: Seeks approval in EGM March 24, for raising $75 million to repay $50 million FCCB
- Merck India: Q4 profit Rs 18.2 crore versus Rs 14.57 crore YoY; to pay Rs 11 a share as dividend
- NHPC: Sign PPA with Odisha for Teesta-IV, -V projects
- Reliance Industries: Cisco, Reliance Jio build ALL-IP digital services platform
- Sanofi India: Q4 profit Rs 50.5 crore versus Rs 120 crore YoY; To pay Rs 50 a share as dividend
- Transformers and Rectifiers: Wins Rs 153 crore order from GETCO
Talking Points
- India begins informal talks with Britain on post-Brexit FTA
- India to decide transaction adviser for BEML divestment
- India’s sixteen states to sell Rs 25,140 crore of bonds
- HFT experts studying India trading data to frame rules: Sinha
- LIC of India total assets cross Rs 24 lakh crore; Gross yield at 8.2 percent
- Global funds sell Rs 146 crore of local stocks; domestic funds sell Rs 264 crore yesterday: Provisional data
- Stock market ‘little expensive’ after rally: LIC Chairman
- India rapeseed, mustard output seen rising 15 percent, USDA FAS says
- Derivatives signal Nifty may extend gains, Angel Broking says
- Stealthy slowdown in India as full impact of cash ban unresolved
- Tata Group, Docomo said to reach settlement: Economic Times
Data To Watch
- Finance Minister Arun Jaitley, to meet his U.K. counterpart and later meet CEOs at a meeting hosted by Confederation of British Industry in London
- 4:30pm: Fiscal deficit for April-Jan. period
- 5:30pm: India economic growth data for 3-month ended December 31; estimate 6.0 percent (Prior 7.3 percent)
- 5:30pm: India GDP annual FY17 estimates through March 31 YoY; est. 6.8 percent (Prior 7.9 percent)
- 5:30pm: Chief Statistician T.C.A. Anant to brief media on second advance estimate of national income and Q3 GDP data in New Delhi
- Eight infrastructure industries index for January (Prior +5.6 percent)
Money Market Heads-Up
India's GDP for the October-December quarter likely grew at 6 percent, sharply lower than the 7.3 percent recorded in the prior quarter. These numbers are crucial as they will help assess the impact of Prime Minister Narendra Modi's demonetisation move.
The yield on the benchmark note, which rose 51 basis points in the past four weeks eased a bit on Monday by dropping 3 basis points. However, the sentiment remains bearish. With an overnight selloff in US Treasuries, there may be a similar move in early trade. The key event to watch for is the big Rs 25,000 crore auction of state bonds late today. The cutoffs will help determine market mood and direction.
In the currency market, the dollar is trying to hold on to its gains ahead of U.S. President Donald Trump's address to the Congress. The chance of a rate hike at the Fed's mid-March meeting has jumped to 50 percent from 34 percent just five days ago. For emerging market currencies, it is time for caution as volatile times lie ahead.
Good Morning!
The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, rose 0.1 percent to 8,927.
Asian stocks climbed in early trade, while the dollar maintained gains ahead of Donald Trump’s address to the Congress. Japan’s Topix rebounded after the Dow Jones Industrial Average pushed its winning streak to 12 sessions, the longest in 30 years. Trump on Monday said he’d spend “big” on infrastructure, while adding that tax details won’t become clear until after the costs of repleasing the Affordable Care Act are known.
Investors will also be monitoring comments from Fed officials, including Chair Janet Yellen, who speaks at an event in Chicago at the end of the week. The chance of a rate hike at the Fed’s March 14-15 meeting jumped to 50 percent from 34 percent just five days ago, according to federal funds futures tracked by Bloomberg.
Oil prices hovered near $54 a barrel as prospects of record U.S. stockpiles offset production cut by Organisation of Petroleum Exporting Countries and other nations to end global supply glut.
Gold was trading little changed at $1,252 an ounce. The metal jumped 1.8 percent last week for its fourth straight weekly advance.
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