Sensex, Nifty Extend Gains To Fifth Week; Reliance, Idea Top Gainers

Top Weekly Gainers

• Idea Cellular (+10.9%)
• Reliance Industries (+10.8%)
• BPCL (+7.2%)
• Axis Bank (+7.1%)
• HDFC Bank (+5%)

Top Weekly Losers

• Bharti Infratel (-6.7%)
• Hindalco Industries (-3%)
• NTPC (-2.8%)
• Eicher Motors (-1.8%)

Indian shares closed little changed, after rising to their one-year high as equity benchmarks gained for a fifth week.

The S&P BSE Sensex gained 0.1 percent to 28,892 while the NSE Nifty advanced 0.1 percent as well to 8,939. The 50-share index rose as much as 0.6 percent to 8,982 intraday led by Idea Cellular and technology shares.

The market breadth, however, continued to highlight the underlying weakness in trade. About 941 stocks declines, 699 advanced while 273 remained unchanged on the NSE.

Reliance Industries slipped as much as 2.2 percent, a day after hitting its steepest gains in eight years.

Stock was down 1.6 percent, top loser on the benchmark 30-share Sensex index.

Reliance Industries gained on Wednesday as investors cheered Chairman Mukesh Ambani’s decision to end free data plans at his phone venture from April 1.

Shares of housing finance companies gained after markets regulator Securities and Exchange Board of India raised mutual funds' investment limits in the housing finance firms.

GRUH Finance, Dewan Housing Finance Limited (DHFL), GIC Housing Finance and LIC Housing were up in the range of 1.5 percent and 3 percent.

Bajaj Finserv was up 3 percent after hitting a record high of Rs 3,900 intra-day.

Nifty IT Index gained nearly 2 percent, after closing down 1.6 percent on Wednesday on fears President Donald Trump’s work-visa overhaul would hurt local technology firms.

Shares of Jyothy Structures rose as much as 5.7 percent to Rs 10.15, highest since February 9, after the company said lenders have decided to restructure its debt. The company, which provides engineering and construction services, said lenders are evaluating investor interest.

Shares of the country’s third largest telecom operator gained 6.4 percent to Rs 120 as the pace of consolidation in the sector continues to gather pace.

The stock is up nearly 14 percent this week and around 62.5 percent year-to-date after it entered into a possible merger discussion with Vodafone Plc.

Consumer goods maker Jyothy Laboratories Ltd. is in talks to sell a stake to Germany-based Henkel AG & Co., joint managing director Ullas Kamath told BloombergQuint.

The two parties have to reach an agreement before the end of this fiscal as part of the 2011 deal when Jyothy Laboratories had acquired a majority stake in Henkel India’s consumer business.

To read the full article, click HERE

The rupee strengthened by 5 paise to 66.91 against the dollar in early trade.

Foreign exchange dealers said that besides the dollar's weakness against some currencies overseas, increased selling of the American currency by exporters as well as banks and a higher opening in the domestic equity market supported the rupee.

Yesterday, the rupee ended 4 paise down at 66.96 against the US dollar on fresh demand for the American currency from banks and importers.

PTI

The country’s largest telecom operator jumped as much as 11 percent to Rs 401, its highest level since August 31, 2015 after it entered into an agreement to acquire Telenor (India) Communications running operations in seven circles.

The proposed acquisition will also include the transfer of all of Telenor India’s assets and customers. Telenor will merge with Airtel and the Sunil Mittal-led firm will take over all outstanding spectrum payments and other operational contracts, including tower lease, after regulatory approvals according to the Norwegian company’s press release.

The Telenor deal will improve Airtel's 4G network position, Nitin Soni, a director at Fitch Ratings who tracks the telecom sector told BloombergQuint on the phone.

For more details on Bharti Airtel’s latest deal, click HERE

Indian shares extended their winning streak for a sixth straight trading session led this time by the country’s largest telecom company.

The S&P BSE Sensex gained nearly 0.4 percent to 28,972 while the NSE Nifty advanced 0.3 percent to 8,957. The 50-share index is hovering just 15 odd points away from its one-year high of 8,968.

The market breadth was encouraging with more number of buyers than sellers. About 850 stocks advanced, 610 declined and 437 remained unchanged on the NSE.

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For a complete list of stocks to watch, click HERE

• Signs agreement to take ownership of Telenor’s India operations
• To acquire Telenor India’s running operations in seven circles namely Andhra Pradesh, Bihar, Maharashtra, Gujarat, Uttar Pradesh (East), Uttar Pradesh (West) and Assam
• Proposed acquisition to include transfer of all of Telenor India’s assets and customers. Will also add 43.4 MHz of spectrum in the 1,800 MHz brand.
• Telenor’s operations will continue as normal till the completion of the deal.

• Acquires strategic stake in financial technology startup Seynse Technologies for the purpose of strategic investment
• Acquisition to be funded by cash
• Financial details remain undisclosed
• Seynse, creator of a digital lending platform 'Loan Singh' posted a revenue of Rs 6.53 lakhs in FY16

The Indian rupee may follow its Asian counterparts and gain against the dollar in today's session as minutes of Fed's latest meeting reduced the odds of a rate increase next month.

Fed policy makers expressed confidence that they can take their time in raising rates as there’s little threat inflation will suddenly accelerate. Majority of the officials wanted more clarity on Trump's fiscal plans.

Back home, sovereign bond yields which rose to a near six-month high may continue to rise further after minutes from the latest monetary policy committee meeting which were released after the trading session on Wednesday reiterated RBI's hawkish stance. The minutes showed that the policy makers are concerned about India's uncertain inflation outlook.

Though the government's borrowing program for this financial year has ended, supply of special power bonds and state debt could also weigh on the bond market. DBS raised its 10-year yield forecast for end-2017 to 7.4 percent.

• RBI policy makers concerned over India’s uncertain inflation outlook
• IMF wants India ready to tighten after RBI signals end to easing
• India can’t base policies on what ratings agencies want: CEA Subramanian

Says oil prices at $55-$65 comfortable level for India
Says tackling bank bad loans India’s biggest challenge

• India sugar-cane areas remain in drought, world weather says
• Modi may be on a road to nowhere in India’s crucial state poll

• India to double capacity built in solar parks to 40 gigawatt
• India said poised to finalize REIT rules for insurance firms
• India said to form panel for abolishing foreign investment board
• Jan. consumer price inflation for farm workers at 2.47 percent
• Consumer price inflation for rural workers at 2.58 percent
• Alibaba-backed e-commerce startup Snapdeal plans job cuts
• India’s sugar demand seen by ISO as little changed this season
• Global funds sell Rs 259 crore of local stocks; domestic funds buy Rs 918 crore yesterday: Provisional Data

• India’s NSE seen redrafting algorithmic trading policy (Mint)
• Ford may buy, partner with Tata Motors passenger vehicle operations (CNBC-TV18)
• India said planning to auction some oil exploration blocks (Reuters)

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, edged 0.1 percent higher to 8,928.

Asian equities slumped in early trade, after minutes from the Federal Reserve’s latest meeting were deemed dovish enough to send yen climbing. Stocks in Australia and Japan led declines in Asia after the S&P 500 index slipped from all-time highs.

U.S. central bank officials expressed confidence they can raise interest rates gradually as there’s little threat that inflation will suddenly accelerate, minutes of Federal Open Market Committee’s January 31-February 1 meeting showed. Officials wrestled with uncertainty on issues ranging from the Trump administration’s fiscal stimulus plans to headwinds a rising dollar may pose.

Bets for a rate hike in March dropped to 34 percent, even as the odds for a hike in May are at 62 percent, according to Fed fund futures data tracked by Bloomberg.

Also Read: El-Erian Warns Bond Market It's Underestimating March Fed Odds

The S&P 500 Index fell 0.1 percent to 2,362.59 on Wednesday, while the Dow Jones Industrial Average closed at an all-time high of 20,775.6 for a ninth straight session.

Oil prices rose after an industry report showed U.S. crude stockpiles fell, raising optimism that the global supply glut is ending. Prices pared losses Wednesday after the American Petroleum Institute was said to report U.S. crude stockpiles fell by 884,000 barrels last week.