Sensex Above 26000, Up Over 250pts; ICICI, L&T, SBI Underperform

sensex-26000-update-by-capitalheight12:59 pm Market Update: Equity benchmarks extended rally with the Sensex rising 287.04 points or 1.11 percent to 26147.21 and the Nifty climbing 102.45 points or 1.29 percent to 8067.95.

About 1845 shares advanced against 528 declining shares on the BSE.

12:50 pm Interview: Suven Life reported a flat set of numbers for the second quarter ended September 30. Profits were up 5.3 percent to Rs 26.5 crore versus Rs 25.2 crore reported same quarter last fiscal but revenues were down 1.2 percent at Rs 11.5 crore versus Rs 117 crore year on year (YoY).

Defending the revenue numbers, Venkat Jasti, Chairman and CEO, Suven Life Sciences told CNBC-TV18 that their numbers should not be compared quarter on quarter because the CRAMS is a lumpy business. Actually, the revenues were up, he said.

The profits for the quarter were up because of the product mix, said Jasti.

Jasti is confident of maintaining EBITDA margins at 32 percent or more. EBITDA margins for the quarter stood at 31.9 percent versus 26.7 percent YoY. margins,   product mix

He is also confident of 10-15 percent topline growth in FY17 and FY18.

12:35 pm Buzzing: RS Software shares surged more than 8 percent intraday after a media report indicated that the company has cancelled a restrictive deal with its key client Visa Inc.

“RS Software (India), an early bird in the payment solutions business, is parting ways with its key client, US financial services giant Visa Inc, from which it derived more than 90 percent of its revenue for years,” a media report said.

Chairman Raj Jain, in an interview to a media company said after 10 years of growth, RS Software is scaling back its engagement with Visa to tap into “multi-billion dollar opportunities” emerging in the digital payments solutions business.

12:20 pm PM on demonetization: Attacking political rivals and those opposed to the demonetization scheme, Prime Minister Narendra Modi today lashed out at them saying they would have lavished praise on him if he had given them time before announcing the move.

“Some people are criticising saying the government did not make ample preparation. I think that is not the issue that the government did not make ample preparation. I think the pain of such people is that the government did not give a chance to make any preparation,” he said at a book launch function .

“If these people had got 72 hours to make their preparation then they would have lavished praise that there is no one like Modi,” he stressed.

The Prime Minister’s remarks come amid a standoff in Parliament on the issue with the opposition stepping up their attack on the government. Former Prime Minister Manmohan Singh had yesterday said the step was “a case of organised loot and legalised plunder” and reflected a “monumental management failure”.

12:00 pm Market Check
The NSE Nifty started off December series on a strong note, rising more than 1 percent on short covering as well as value buying after losing more than 7 percent in November so far.

The 30-share BSE Sensex gained 276.55 points or 1.07 percent at 26136.72 and the 50-share NSE Nifty rose 102.25 points or 1.28 percent to 8067.75. The broader markets also traded in line with benchmarks as the BSE Midcap and Smallcap indices surged 1-1.5 percent.

Even the market breadth was strong as about 1777 shares advanced against 501 declining shares on the BSE.

Technology stocks were the biggest gainers, may be on account of recent rupee fall. Nifty IT index jumped over 4 percent as Infosys, Tech Mahindra, HCL Technologies and TCS gained more than 4 percent.

However, ICICI Bank, SBI, L&T, Reliance Industries and Bajaj Auto under performed, down 0.3-0.9 percent.

Asia markets were mostly positive today, amid a lack of cues from US markets, which were shut Thursday for the Thanksgiving holiday.

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Sensex Up Over 150pts, Nifty Above 8000; Tata Motors, Infy Gain

sensex-nse9:55 am Market check: The Sensex is up 179.27 points or 0.7 percent at 26039.44 and the Nifty is up 67.10 points or 0.8 percent at 8032.60. About 1396 shares have advanced, 348 shares declined, and 83 shares are unchanged.

Tata Steel and Infosys are up 3 percent while GAIL, TCS and Asian Paints are gainers while Tata Motors, NTPC, Cipla, Reliance and L&T are losers in the Sensex.

9:45 am New IPO: Jagran Prakashan, the publisher of leading Hindi daily Dainik Jagran, today said its subsidiary Music Broadcast Ltd will raise up to Rs 400 crore through initial public offer.

The board of MBL, which operates the popular Radio City FM stations, in a meeting held today approved the IPO of the company.

“We wish to inform you that the board of directors of Music Broadcast Ltd (MBL) at their meeting dated November 24, 2016 has approved an initial public offer,” the company informed BSE.

“The IPO would comprise of fresh issue aggregating upto Rs 4,000 million (400 crore) and offer for sale by existing shareholders,” it added.

9:30 am FII view: Laurence Balanco of CLSA says tactically, he is looking for a minor pullback to relieve the momentum extremes seen in leading markets (US and Japanese equities, US dollar, US 10-year yield, copper).

While these extremes warn of a short-term reversal, the fact that momentum has confirmed the highs suggests that such a pullback should be short-lived and followed by further gains into Q1 2017, he adds.

He says the Achilles heel to this equity market advance would be a US 10-year yield breaking above 3.05 percent, which is the resistance zone provided by the upper boundary of the 35-year downtrend channel.

It is also close to the level where the rolling 12-month correlation between the S&P 500 and the US 10-year yields switches from positive to negative, Balanco feels.

The market has opened firm as the Sensex is up 70.47 points or 0.3 percent at 25930.64. The Nifty is up 29.95 points or 0.4 percent at 7995.45. About 571 shares have advanced, 147 shares declined, and 32 shares are unchanged.

Bharti, TCS, Infosys, Axis Bank and GAIL are top gainers while HDFC twins, L&T, Cipla and ONGC are losers in the Sensex.

The Indian rupee opened flat at 68.72 per dollar on Friday versus previous close 68.73. The government rushed to allay fears after the rupee drops to an all-time low of 68.86 to the dollar before recovering on perceived RBI intervention.

The commerce minister said, rupee fluctuation has been factored in by exporters.

Bhaskar Panda of HDFC Bank said, “High volatility and unidirectional move is the order of the day in the USD-INR market. A surging dollar index, spectre of US interest rate hike have seen net FII outflow to the tune of USD 4 billion leading to almost 4 percent depreciation of the rupee.”

Among global markets, Asia is trading higher amid a lack of direction from US markets that were shut for the Thanksgiving holiday.  Asian stocks steadied on Friday as the Thanksgiving break in the United States pegged the dollar’s relentless surge that had sucked capital out of most emerging markets.

MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.05 percent on Friday. It is poised to end the week 0.8 percent higher, but remains down almost 2 percent from its close on November 8 before Donald Trump’s surprise election to president, whose protectionist campaign promises are widely seen as negative for the region.

Meawhile, European finance ministers will continue Greece bailout talks. The Finance Ministers Of Germany, France, Italy, Spain and Netherlands plan to meet in Berlin today with officials from the international monetary fund to discuss Greece’s debt crisis, the euro zone is aiming for a new agreement on fiscal reform by December 5.

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Nifty below 8150; Dr Reddy’s Labs, Cipla, Lupin losers

Dalal Street CapitalHeightThe Sensex is up 101.76 points or 0.4 percent at 26406.39 and the Nifty is up 32.35 points or 0.4 percent at 8140.80. About 1190 shares have advanced, 1295 shares declined, and 147 shares are unchanged.

TCS, Asian Paints, Maruti, Bajaj Auto and Infosys are top gainers while Dr Reddy’s Labs, Cipla, Lupin, ITC and ICICI Bank are losers in the Sensex.

European stocks opened higher as the US dollar paused for breath after a rally that has been driven by a rise in bond yields following Donald Trump’s victory in the presidential election.

Traders continue to watch Trump’s economic policies closely for clues on the outlook for interest rates. The Republican has said that he planned to spend on infrastructure and cut taxes to stimulate the economy. Increased fiscal stimulus could have an impact on the Federal Reserve’s interest rate hiking path.

The rise in inflation expectations that followed Trump’s win sparked a sell-off in bonds and pushed the dollar higher.

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Nifty reclaims 8200, Sensex rises over 300 pts; Tata Motors up

Dalal Street CapitalHeight9:30 am Downgrades:  Credit Suisse has downgraded cement stocks like UltraTech Cement, Ambuja Cements and discretionary stocks like Asian Paints, Eicher Motors to underperform and Kajaria Ceramics to neutral. It has We reverted to an overweight on IT and pharma.

Neelkanth Mishra of Credit Suisse said, “While there would be significant but short-term growth disruption from demonetisation for most sectors, for some, impact could last longer. It may take years for currency in the black market to replenish, hurting real estate volumes and prices. NBFCs, construction, cement and discretionary demand to be hurt.”

The market has seen a super strong opening after losing 1200 points in last two consecutive sessions. The Nifty is up 95.45 points or 1.2 percent at 8203.90 and the Sensex is up 257.01 points or 0.9 percent at 26561.64. About 781 shares have advanced, 134 shares declined, and 25 shares are unchanged.

NS Venkatesh of Lakshmi Vilas Bank said, “The rupee fell to a 4-month low on expectations that Trump’s policies may boost inflation in the US and lead to higher interest rates. It is expected to take cues from the equity market and also take support from balance of trade published yesterday which was favourable.”

The dollar held near an 11-month high against a basket of currencies as some stability returned to the US bond market following a vicious sell-off, helped by unexpectedly strong data on US October retail sales.

Global markets are higher as the Trump rally continues and oil rebounds.

Asian shares won the reprieve from a rally in Wall Street shares as the sell-off in global bonds and sharp gains in the dollar paused for now.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2 percent in early trade on Wednesday, bouncing back from a four-month low touched the previous day. Japan’s Nikkei rose 1.0 percent to nine-month high thanks to the fall in the yen against the dollar.

On Wall Street, the Dow Jones industrial average rose 0.29 percent to a record high while the S&P 500 gained 0.75 percent.

Since Donald Trump’s unexpected victory in the US Presidential election last week, US shares have rallied while US bond prices tumbled, pushing up their yields sharply, as investors expect higher inflation under his presidency.

Voltas, SCI and Ramco Industries will announce September quarter results today. Oil market companies will be in focus as petrol price was  cut by Rs 1.46 a litre and diesel by Rs 1.53 per litre, reversing the rising trend of the past few weeks.

In the currency space, the dollar held near an 11-month high against a basket of currencies as some stability returned to the US bond market following a vicious sell-off, helped by unexpectedly strong data on US October retail sales.

Saudi energy minister is expected to travel to Doha, this week for meetings with oil-producing countries on the sidelines of an energy forum.

Gold edged higher, snapping a three-session losing streak, on uncertainty over the economic policies of US President-elect Donald Trump. Trump has vowed to boost domestic spending, which has the potential to stoke inflation and dent demand for non-yielding bullion, but the market is seeking more detail on his policies.

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