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 Settles Above 8000; Midcap Index Outperforms with 1% gain

Dalal Street CapitalHeightSupported by positive Asian and European markets, the Indian stock market closed Wednesday trading session in the positive zone for the second consecutive session.

Investors still expected sentiment to remain weak given continued worries about the economic impact from Narendra Modi’s action, with volatility expected ahead of the monthly expiry of derivative contracts on Thursday.

Economic Affairs Secretary Shaktikanta Das said that banks, NABARD and RBI have been advised to make cash available to district cooperative banks to ensure that farmers have access to funds. A total of Rs 21,000 crore has been sanctioned by NABARD to district central cooperative bank.

With the new currencies yet to reach many of the rural areas, the government said Rs 500 and Rs 2000 notes have been made available in 1.55 lakh post offices across the country. In addition, to promote greater usage of payments through e-wallets, RBI has decided to increase the monthly transaction limit for individuals from Rs 10,000 to Rs 20,000. Similar enhancements have also been announced by RBI for merchants.

Asian markets, Hong Kong’s Hang Seng and Shanghai Composite Index were marginally down, while Japan’s Nikkei was marginally up.

The S&P BSE Sensex closed at 26,052, up 91 points, while NSE Nifty ended the day at 8,033, up 31 points. A total of 6 stocks registered a fresh 52-week high in trade today, while 35 stocks touched a new 52-week low on the NSE. Out of 1,883 stocks traded on the NSE, 371 declined, 1243 advanced and 269 remained unchanged today.

The BSE Mid-cap Index is trading up 1.22% at 12043, whereas BSE Small-cap Index is trading up 1.51% at 11802.

Healthcare, Metal, Consumer Durables, Capital Goods sectors saw promising traction towards end of the trading hours, while Banking, Finance, Telecom, Power sectors indicated lack of trading activity on BSE.

Lupin, Hindalco, Asian Paints, Tata Steel, Bosch and L&T were the top gainers, whereas M&M, HDFC, Bank of Baroda, Maruti, Gail, BPCL and Bharti Airtel were the losers on NSE in the closing hours.

The India VIX was down 1.50% at 18.1875. The Rupee was trading lower at Rs. 68.50/$. Gold was trading at Rs 29,173 per 10 gms and silver was trading at Rs 40,795 per kg. Crude Oil is trading Rs 3306 per lot.

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Larsen & Toubro Rallies 3.4% After Q2 FY17 PAT Soars 84%

L&TLarsen & Toubro Ltd is currently trading at Rs 1374.3, up by Rs 45.1 or 3.39% from its previous closing of Rs 1329.2 on the BSE.

The company posted its net profit rose 84% to Rs 1,435 crore in the quarter ended September 2016 as against Rs 778 crore during the previous quarter ended September 2015.

Its sales rose 8.5% to Rs 24,924 crore in the quarter ended September 2016 as against Rs 22,975 crore during the previous quarter ended September 2015.

The scrip opened at Rs 1359.9 and has touched a high and low of Rs 1384.55 and Rs 1353 respectively. So far 2264505 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 123925.86 crore.

The Company continued the momentum of order intake during the second quarter ended September 2016. The consolidated order inflow at Rs 31,119 crore during the quarter registered a YoY increase of 11%.

The BSE group ‘A’ stock of face value Rs 2 has touched a 52 week high of Rs 1615 on 27-Jul-2016 and a 52 week low of Rs 1016.6 on 12-Feb-2016. Last one week high and low of the scrip stood at Rs 1389 and Rs 1306.6 respectively.

The promoters holding in the company stood at 0 % while Institutions and Non-Institutions held 55.73 % and 42.17 % respectively.

The stock is currently trading below its 100 DMA.

Larsen & Toubro Ltd
BSE 1,374.80 45.60 (3.43%)
NSE 1,374.90 45.35 (3.41%)

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Nifty hits 8050, Sensex opens firm; L&T up, Wockhardt falls 3%

nifty_up_Boosted by strong global cues, the market opened firm Wednesday. The Sensex is up 152.47 points or 0.6 percent at 26113.25, and the Nifty up 48.90 points or 0.6 percent at 8051.20. About 423 shares have advanced, 79 shares declined, and 20 shares are unchanged.

L&T, GAIL, Wipro, Adani Ports and Cipla are gainers while Dr Reddy’s Labs and Bajaj Auto are losers in the Sensex. Wockhardt is down around 3 percent post US FDA warning letter.

The Indian rupee has touched 8-month low in early trade. It has opened at 68.36 against the US dollar, down 11 paise compared with previous settlement at 68.25 a dollar.

Pramit Brahmbhatt of Veracity says a stronger Dollar index will continue to put pressure on the rupee for the day, as it is trading above the 101 mark.

According to him, the trading range for the USD-INR is seen between 68-68.50 against the US dollar.

The dollar resumed its uptrend helped by a surge in US existing home sales last month that further cemented expectations not only of a Federal Reserve interest rate hike in December, but also of further tightening next year.

Among global markets, Asian stocks crept to one-week highs as investors tried to share in the exuberance of Wall Street, where the three main indices seized record peaks for a second straight session.

MSCI’s broadest index of Asia-Pacific shares outside Japan also added 0.3 percent, edging further away from four-month lows hit on Monday.

The Dow closed up 0.35 percent and above 19,000 for the first time. The S&P 500 gained 0.22 percent and the Nasdaq 0.33 percent. Still, the market is starting to look expensive with the S&P 500 trading near 17.3 times forward 12-month earnings, compared to the 10-year median of 14.7, according to StarMine data.

Crude oil prices gave up gains on worries Iran and Iraq were not ready to agree on an OPEC output freeze. Prices earlier rose to the highest level this month on reports cartel members had overcome their internal disputes.

Gold edged lower on after US equities hit all-time highs on market expectations for higher growth and more spending from a Donald Trump presidency. Investors cut holdings for an eighth consecutive session, amid speculation that the Federal Reserve will raise US interest rates next month.

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L&T Q2 profit up 84%, holds FY17 revenue & order inflow guidance

L&T

Engineering and construction major Larsen & Toubro (L&T) said profit in July-September quarter grew by 84.3 percent year-on-year to Rs 1,434.6 crore. Divestment gain, other income and lower finance cost boosted bottom line.

Revenue during the quarter increased 8.2 percent to Rs 25,011 crore compared with Rs 23,123 crore in same period last year, driven by infrastructure, power, hydrocarbon and financial services businesses

“The consolidated order inflow at Rs 31,119 crore during the quarter registered a 11 percent increase year-on-year, including international orders of Rs 7,386 crore,” L&T said in its filing.

On a cumulative basis, order inflow for the half-year ended September 2016 stood at Rs 60,821 crore. Major orders were secured by its infrastructure and hydrocarbon segments.

With this, consolidated order book of the group stood at Rs 2.51 lakh crore, higher by 4 percent on year-on-year basis. International order book constituted 29 percent of the total order boook, the company said.

L&T has maintained its order inflow guidance of 15 percent and revenue growth forecast of 12-15 percent for the current financial year 2016-17.

EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 7.9 percent to Rs 2,298 crore and margin was unchanged 9.2 percent on yearly basis.

L&T reported an exceptional gain of Rs 402.43 crore in the quarter ended September 2016 against Rs 45.7 crore in corresponding quarter of last fiscal, driven by divestment in general insurance business.

Other income during the quarter jumped 49.6 percent to Rs 481.3 crore while finance cost declined 19.8 percent to Rs 351.7 crore compared with year-ago period.

The company said infrastructure segment, which contributed 45 percent to total business, achieved revenue growth of 6 percent year-on-year at Rs 11,332 crore with 6 percent increase in order book at Rs 1.86 lakh crore at the end of September 2016. However, EBITDA margin from the segment dropped sharply by 220 basis points to 7.1 percent during the quarter.

Power business registered a whopping 30 percent growth at Rs 1,745 crore but margin contracted 200 basis points at 3 percent in Q2. Segment’s orderbook stood at Rs 17,168 crore at the end of September 2016.

“Infrastructure segment margin was impacted due to extended stay and delayed approvals while power segment margin was lower due to job mix and stages of execution during the quarter,” L&T said.

Revenue from its heavy engineering segment grew by 24 percent year-on-year to Rs 755 crore with solid improvement in margin at 14.6 percent on the back of execution progress against operating loss of 12.6 percent in corresponding quarter of the previous year.

Hydrocarbon business showed a 33 percent year-on-year jump at Rs 2,494 crore, which included 52 percent revenue from international business. Order book of the segment registered a 39 percent growth at Rs 20,146 crore in Q2.

EBITDA margin of hydrocarbon segment during the quarter improved significantly to 7.1 percent compared with 1.4 percent in year-ago period.

Electrical & automation revenue fell 4 percent year-on-year to Rs 1,142 crore with orderbook declining 4 percent at Rs 3,032 crore but margin improved 90 basis points in Q2.

IT & technology services segment registered a 9 percent year-on-year growth in revenue at Rs 2,440 crore with margin expansion of 110 basis points and financial services business showed a 13 percent growth at Rs 2,140 crore with 60 basis points improvement in margin.

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Sensex, Nifty sluggish; SBI down 2%, auto stocks rise

bear-marketThe market is sluggish with the Nifty hovering around 7950. The 50-share index is up 28.25 points or 0.4 percent at 7957.35 and the Sensex is up 56.65 points or 0.2 percent at 25821.79. About 1048 shares have advanced, 1346 shares declined, and 169 shares are unchanged.

Auto stocks are rising with Bajaj Auto, Hero MotoCorp and Maruti leading the pack. HUL and Adani Ports are other gainers in the Sensex. Among losers are BHEL, SBI, L&T, GAIL and NTPC.

The rupee slipped from its initial recovery, dropping 7 paise to Rs 68.23 in late morning deals following bouts of dollar demand from importers despite higher domestic equities.

Overseas, the US dollar took a breather against basket currencies in early Asian trade, as investors consolidated the gains built on expectations of increased fiscal spending and higher inflation under a Trump administration.

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ICICI Bank Rallies Post Q2 FY17 Numbers

ICICI Bank Ltd is currently trading at Rs 283.5, up by Rs 4.75 or 1.7% from its previous closing of Rs 278.75 on the BSE. The bank reported on a standalone basis its profit after tax was Rs 3,102 crore (US$ 466 million) for Q2 FY17 compared to Rs 2,232 crore (US$ 335 million) for Q1 FY17 and Rs 3,030 crore (US$ 455 million) for Q2 FY16.

The scrip opened at Rs 281.6 and has touched a high and low of Rs 287.4 and Rs 281.6 respectively. So far 13032821 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 162208.34 crore.

The bank posted Net interest income of Rs 5,253 crore (US$ 789 million) in the quarter ended September 30, 2016 (Q2 FY17) compared to Rs 5,251 crore (US$ 788 million) in the quarter ended September 30, 2015 (Q2 FY16).

The BSE group ‘A’ stock of face value Rs 2 has touched a 52 week high of Rs 291.5 on 25-Oct-2016 and a 52 week low of Rs 180.8 on 26-Feb-2016. Last one week high and low of the scrip stood at Rs 280.95 and Rs 265.6 respectively.

The promoters holding in the company stood at 0 % while Institutions and Non-Institutions held 65.5 % and 9.13 % respectively.

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The stock is currently trading above its 50 DMA.

Top 15 stocks in focus today: ICICI Bank, Future Retail, Britannia Industries

ICICI Bank: ICICI Bank reported net profit of Rs 3,102 crore for the quarter ended September 30, 2016 against Rs 3,030 crore in the corresponding quarter a year ago.

Britannia Industries: Britannia Industries posted a 5.8% rise in its consolidated net profit to Rs 234 crore in the quarter ended September 30, 2016 as compared to Rs 221 crore in the year-ago period.

IT stocks: IT stocks will be in focus today. Cognizant reported 11.8% in net profit to $444.4 million in the July-September quarter, but cut its annual revenue forecast for the third straight time this year.

Future Retail: Future Retail said it has agreed to buy the retail business of Hyderabad-based Heritage Foods Ltd, promoted by the family members of Andhra Pradesh chief minister N. Chandrababu Naidu, in an all-stock deal.

Ceat: Ceat registered 1.6% rise in consolidated net profit at Rs 107 crore for the quarter ended September 30. It had posted a net profit of Rs 105 crore in the same quarter last fiscal.

GlaxoSmithKline Consumer Healthcare: The company reported 16.62 per cent decline in standalone net profit at Rs 183.72 crore for the second quarter ended September 30, 2016. It had posted a standalone net profit of Rs 220.34 crore in the same quarter last fiscal.

Varun Beverages: Shares of Varun Beverages is going to list on bourses today.

GIC Housing Finance: The company said S Gopakumar, general manager with Oriental Insurance Company, has been appointed as managing director of the company. Warendra Sinha resigned as MD and CEO of the company following his elevation as whole time director of National Insurance Company.

Wipro: The company on Monday announced the launch of its Open Banking API (Application Programming Interface) Platform. The Open API platform, will enable banks and financial institutions to launch Open Banking initiatives and create new forms of distribution channels and servicing capabilities, provide access to third-party application marketplaces, and comply with emerging regulatory norms through the standardisation of APIs.

Ashok Leyland: Ashok Leyland will announce its Q2 numbers today.

L&T: L&T-MHPS Boilers Pvt Ltd has signed a technology licence agreement for selective catalytic reduction systems with Mitsubishi Hitachi Power Systems Ltd.

Cyinet Ltd: The company has signed a definitive agreement with Blom ASA to acquire 100% stake in Blom Aerofilms.

Indigo: The airline company will announce its Q2 numbers today.

Bombay Dyeing: Bombay Dyeing will announce its Q2 numbers today.

icici-bank-capitalheight

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Live Stock Market Updates – Sensex, Nifty Decline in Early Trade

Bombay-Stock-Exchange

The BSE Mid-cap Index is trading up 0.25% at 11,432, whereas BSE Small-cap Index is trading up 0.45% at 11,530. Adani Ports, GAIL, M&M, ONGC, Coal India, Bajaj-Auto, SBI and Cipla are among the gainers, whereas Bharti Airtel, Axis Bank, L&T, Tata Motors, Asian Paints are losing sheen on BSE.

The BSE Sensex opened 5.56 points up at 26872.48, while Nifty opened 16.90 points up at 8,255.40.

At 9:32 AM, the S&P BSE Sensex is trading at 26,805 down 62 points, while NSE Nifty is trading at 8,217 down 21 points.

The BSE Mid-cap Index is trading up 0.25% at 11,432, whereas BSE Small-cap Index is trading up 0.45% at 11,530.

Adani Ports, GAIL, M&M, ONGC, Coal India, Bajaj-Auto, SBI and Cipla are among the gainers, whereas Bharti Airtel, Axis Bank, L&T, Tata Motors, Asian Paints are losing sheen on BSE.

Some buying activity is seen in metal, oil and gas, auto, utilities and pharma sectors, while telecom, consumer durable, IT, banking, and FMCG sectors are showing weakness on BSE.

The INDIA VIX is up 0.32% at 17.5750. Out of 1,823 stocks traded on the NSE,549 declined, 847 advanced and 405 remained unchanged today.

A total of 25 stocks registered a fresh 52-week high in trades today, while nine stocks touched a new 52-week low on the NSE.
Asian markets are trading higher. Nikkei 225 and Hang Seng are trading higher. Shanghai Composite gained 0.59%. Investors took a pause ahead of the UK referendum scheduled on Thursday. The overall mood remained positive as opinion polls showed that the favour tilted towards Britain remaining a part of the European Union.

Wall Street closed higher after indications that British voters this week will choose to remain in the European Union. The Dow Jones rose 129.71 points, or 0.73%, the S&P 500 gained 12.03 points, or 0.58 %.The Nasdaq Composite added 36.88 points, or 0.77%.

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