Market opens at new 52-wk high; Sensex up 150 pts, Nifty eyes 9K


9:37 am Buzzing: Wockhardt tanked nearly 7 percent intraday as investors turned bearish after the company’s US arm received a warning letter from the US drug regulator.

The US Food and Drug Administration issued a warning letter to Morton Grove Pharmaceuticals, a stepdown subsidiary of the company in Illinois, US. “This would mean that current portfolio of the company will continue to be made available in the market. However, new approvals will be withheld till resolution,” it told the exchanges in a notification on Wednesday.

The warning letter comes as a blow to the company, which was struggling with issues of regulatory non-compliance. Three plants of Wockhardt in India are already under an import ban in the US. Its formulations units at Chikalthana and Waluj in Maharashtra have been under the USFDA’s import alert since 2013, while its bulk drug plant at Ankleshwar in Gujarat was issued an import alert in August.

9:27 am FII view: The employment data in the US does not show any spectacular progress, but remains steady, Willem Buiter, Chief Economist at Citi told CNBC-TV18. This may result in the US Federal Reserve hiking key rates when it meets in March, he added.

However, he said emerging markets are unlikely to falter as the momentum in the emerging markets steadily pick up pace in 2017. He said, for instance, the worst performers of last year, Russia and Brazil, are showing various positive signs.

The dollar’s movement will largely depend on the fiscal package that is proposed to the US Congress, according to the economist, who sees a slight uptick in the dollar in 2017.

9:15 am Market Check:

Equity benchmarks started off session at fresh 52-week high on Thursday, with the Nifty March futures hitting 9000 level, backed by banks, auto, technology and metals stocks.

The 30-share BSE Sensex was up 148.09 points at 29132.58 and the 50-share NSE Nifty gained 41.90 points at 8987.70. About 673 shares advanced against 106 declining shares on the BSE.

Tata Motors, ICICI Bank, Wipro, Bajaj Auto, GAIL, Hindalco and Tata Motors (DVR) were early gainers while Dr Reddy’s Labs and Coal India were under pressure.

The Indian rupee gained by 8 paise at 66.75 per dollar versus 66.83 Wednesday.

Tirthankar Patnaik of Mizuho Bank says he expects the USD-INR to range between 66.50-67.50/dollar in the near term with the State election results on March 11 crucial for its continued strength.

The dollar hit a seven-week high after hawkish comments from two Federal Reserve officials increased expectations that the US Central Bank is closer to raising interest rates. Futures traders are now pricing in a 69 percent chance of a Fed hike in March, up from 35 percent on Tuesday.

Asia markets traded mostly higher, tracking gains in the US where the Dow Jones industrial average closed above 21,000 on the back of President Donald Trump’s speech to lawmakers.

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Live Stock Market Updates – Nifty holds 8,100 mark; Bharti Airtel up 4.6%

nse-buildingThe domestic market are trading flat due to lack of directional cues from global markets.The Indian stock market has opened in red as the Sensex is down 118.97 points, while the Nifty50 is down 39.25 points. Banking stocks slip in opening trade after RBI hikes CRR on incremental deposits. The central bank hopes to curtail surging banking system liquidity that risks stocking inflation.

At 1:24 PM, the S&P BSE Sensex is trading at 26,333, up 17 points, while NSE Nifty is trading at 8,136 up 22 points. Out of 1,889 stocks traded on the NSE, 400 declined, 1,150 advanced and 339 remained unchanged today.

A total of 17 stocks registered a fresh 52-week high in trade today, while 13 stocks touched a new 52-week low on the NSE.

The BSE Mid-cap Index is trading up 0.69% at 12,267, whereas BSE Small-cap Index is trading up 0.82% at 12,127.

Power Grid, BPCL, Idea Cellular, Bharti Airtel and Hero MotoCorp are among the gainers, whereas Bank of Baroda, ICICI Bank, SBI, Wipro and TCS are losing sheen on BSE.

Some buying activity is seen in media, metal, auto, pharma and IT sectors, while PSU Bank, Bank Nifty and Private Bank are showing weakness on NSE.

The INDIA VIX is down 2.01% at 17.2575.

Suzlon Energy has secured a fourth consecutive order for 50.40MW wind power project from a business house. The project consists of 24 units of S95 90m tubular tower with rated capacity of 2.1 MW. Located in the district of Anantapur, Andhra Pradesh, the project is scheduled for completion in March 2017. The stock is currently trading at Rs 14.87, up by Rs 0.29 or 1.99% from its previous closing of Rs 14.58 on the BSE.

ICICI Bank Ltd is currently trading at Rs 255.1, down by Rs 4.75 or 1.83% from its previous closing of Rs 259.85 on the BSE. Around 21.3 lakh shares were traded in a single block.

Thirumalai Chemicals reported a net profit of Rs 37 crore for the first half of financial year 2017 as against a profit of Rs 4 crore a year ago. The stock is currently trading at Rs 719.05, up by Rs 34.2 or 4.99% from its previous closing of Rs 684.85 on the BSE.

Amtek Auto Ltd has informed BSE that a meeting of the Board of Directors of the Company meeting will be held on November 30, to consider the proposal of infusion of fresh equity by the new investors and restructuring of the Company as proposed by investors.

Cipla rose 1.6%. Cipla Ltd is in discussions to sell Cipla Vet, its animal health division, as per media report. According to the report, the company hired global investment bank Rothschild to find potential buyers.

Shares of airline stocks rose on Monday as uncertainty over the deal to cut output by the Organization of the Petroleum Exporting Countries at a meeting on Wednesday pushed oil prices down. SpiceJet reported a rise of 103% in its net profit for the second quarter of 2016-17. The company’s Q2 net profit stood at Rs 58.9 crore from Rs 29 crore reported in the corresponding quarter of 2015-16.

Ashok Leyland inched up 1.2%. Ashok Leyland has completed the acquisition of Nissan Motor Co. Ltd.’s stake in each of the three joint ventures formed between the two companies.

Aurobindo Pharma is trading lower at Rs 736. Arrow Generiques SAS, the French subsidiary of Aurobindo Pharma, has signed an agreement to acquire select commercial products in France from Teva.

BEML zoomed 2.5%. The company reported standalone net loss narrowed to Rs 16.6 crore for the second quarter ended September 30, 2016, against that of Rs 24.6 crore in the corresponding quarter of previous fiscal.

Strides Shasun gained 1%. Strides Shasun’s wholly owned subsidiary Strides Arcolab International, UK has entered into an agreement with Moberg Pharma, Sweden to acquire the ‘PediaCare’ brand for a total consideration of $5 million plus inventory value at closing.

Hathway Cable & Datacom slipped 2.6%. The company has reported a net loss of Rs 40 crore for the quarter under review as compared to a net loss of Rs 32 crore for the same quarter in the previous year.

The BSE Oil and Gas index is trading up 1.6% or 190 points at 11,943 as against the previous close of 11,753.

The BSE Oil and Gas index opened at and hit a high of 11,953.45 and a low of 11,705. The oil stocks are trading higher as international oil prices decline after a planned meeting today between OPEC and non-OPEC producers was canceled.

Oil rebounds from 2% losses as OPEC embarks on a last-ditch diplomatic push to reach a production cut and will meet in Vienna on Wednesday; a meeting with non-OPEC producers today was canceled after Saudi Arabia decided not to attend and suggested the oil-club doesn’t necessarily need to curb output.

Hindustan Petroleum Corporation Ltd is currently trading at Rs 479.4, up by Rs 17.2 or 3.72% from its previous closing of Rs 462.2 on the BSE. The scrip opened at Rs 464 and has touched a high and low of Rs 481.25 and Rs 462.35 respectively. So far 2129614 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 46954.05 crore.

Bharat Petroleum Corporation Ltd is currently trading at Rs 659.9, up by Rs 20.25 or 3.17% from its previous closing of Rs 639.65 on the BSE. The scrip opened at Rs 639.65 and has touched a high and low of Rs 663.85 and Rs 639.65 respectively. So far 1597983 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 92504.17 crore.

Indian Oil Corporation Ltd is currently trading at Rs 304, up by Rs 7.5 or 2.53% from its previous closing of Rs 296.5 on the BSE. The scrip opened at Rs 297 and has touched a high and low of Rs 306.3 and Rs 295.5 respectively. So far 1239474 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 143977.58 crore.

Oil India Ltd is currently trading at Rs 442.05, up by Rs 5.15 or 1.18% from its previous closing of Rs 436.9 on the BSE. The company will announce its Q2 numbers today.

Rajshree Sugars & Chemicals climbed 5.3%. The company has entered into a share purchase agreement with the prospective buyer, for the sale of the wholly-owned subsidiary Company Trident Sugars, having the sugar factory at Telangana. As per the said agreement, the prospective buyer is expected to close the sale transaction by March 31, 2017.

GPT Infraprojects advanced 1%. The company announced bourses that it has bagged an order value at Rs 73 crore from Rail Vikas Nigam Ltd.

Uflex zoomed 5.6%. The company reported 17% rise in consolidated net profit to Rs 90 crore for the quarter ended on September 30, 2016. It had posted a net profit of Rs 77 crore for July-September quarter in the year-ago period.

State Bank of India slipped 2% on the BSE. The bank said it will raise Rs 56.81 billion by issuance of preferential shares to the central government, its majority shareholder.

The Indian rupee opened higher by four paise at 68.42/$ against the previous close of 68.46/$.

The demonetization drive of the government is likely to see some protests on the street in various parts of the country as few political parties have joined hands for ‘Akrosh Divas.’

Parliament may see less activity today as attention will be on the protests and dealing with the Opposition tirade. The old tradition of Black Friday is losing its charm abroad; online sales on Thanksgiving and Black Friday rose about 18 pc to $5.27 bn.

Saudi Arabia seems to suggest that oil producers need not reduce output. With the Dow Jones having crossed the key milestone of 19000 & the S&P 2200 markets could see consolidation globally as investors take stock of the last fortnight. Also the rise in bond yields in tandem with the US $ may not last & pause here would be prudent as markets digest the gains.

Falling crude prices cooled Asian shares while the dollar has stepped back against Asian peers. India’s foreign exchange reserves fell for the second consecutive by $1.542 bn to $365.5 bn in the week ended Nov 18.

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Infosys, TCS make a killing on weak rupee but should you worry?

infosys-tcsBeaten down technology stocks, which were reeling under Brexit woes and Donald Trump win in the US, saw a new lease of life this week as rupee plunged to a new low on November 24. BSE IT index climbed around 7 percent in this week starting November 18 while both the benchmark indices were marginally up 0.6 percent. Demonetization leading to shortarge of cash in the country is slowing down business and trade volume on Dalal Street is also severely affected.

Meanwhile, rupee fell to a record low of 68.85 per dollar as foreign institutional investors withdrew from emerging markets. And that’s what brought much needed relief to the technology companies as depreciating rupee drives more revenue for export oriented firms.

Gaining momentum from rupee’s weakness, Infosys   , TCS   and Wipro   rose 6.2 percent, 8.4 percent and 6.4 percent respectively in the week.

These companies, however, have been dealing with a lot of trouble and cut guidance for FY17 on growth slowdown especially due to softness in Banking, Financial services and Insurance (BFSI) sector. After Q2 results, Infosys reduced FY17 revenue guidance for the second consecutive quarter and had already warned of risks to guidance from RBS contract cancelation and tepid business in banking, manufacturing & retail segments. The country’s second largest IT company slashed its revenue guidance for FY17 to 8-9 percent from 10.5-12 percent earlier in constant currency terms after considering performance of H2FY17 and near-term uncertain business outlook.

That had lead to a lot of selling in IT stocks this year. In November itself, BSE IT index is down 6 percent while Sensex and Nifty lost around 7 percent in this period. In year-to-date, both BSE IT index and Nifty IT fell 15 percent whereas Sensex was down 1 percent and Nifty was up 0.2 percent.

Though analysts are cautious about the sector but feel that valuations are rather tempting after price corrections. Credit Suisse says that larger IT firms’ price to equity have contracted by 10-30 percent in the last one year due to concerns on structural factors and cyclical reasons and stocks are also trading well below their 3-year average PE and close to their 3-year lows.

It says that Trump’s anti-immigration rhetoric and recent comments could pose uncertainty and worst-case outcome could create 200 basis points margin pressure.

“We have cut target multiples for our universe, which reduces target prices by 4-10 percent. We believe that HCL Tech   and Tech Mahindra   are better positioned with low downside risk— business momentum is good, valuations attractive and any immigration impact would be relatively low. And they will benefit from any pick-up in discretionary spending as well,” the brokerage firm says in a note.

Also, the sector is at a risk of further pressure post Q3 results as generally this quarter is weak due to less number of working days due to US holidays.

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Impact on Output Won’t Last Beyond This Quarter, Says Sitharaman

demonetizationThe impact of government’s demonetization move is too early to be determined as has been done by various institutions, believes the Commerce Minister Nirmala Sitharaman.

Speaking to CNBC-TV18, Sitharaman said that stress in the economy has reduced with currencies now reaching people. “Entire output [industry production] speculation, even if impact is there, it won’t be beyond this quarter,” she added.

Unaccounted money is getting extinguished and in turn, the government’s liability too, is getting extinguished.

Replying to opposition, she said that “government would not want to do something like this so blatantly.”

Sitharaman emphasized that the money collected will be used for India’s higher growth. Development of infrastructure and housing for all will continue to be on the government’s agenda.

Speaking over the weakening rupee, she said that currencies all over have taken a beating in last 1-1.5 years. “Volatility is now becoming a new normal,” she said, adding that factors other than currencies are also impacting trade globally.

Below is the verbatim transcript of Nirmala Sitharaman’s interview to Shereen Bhan on CNBC-TV18.

Q: I will come to demonetization in just a bit but let me ask you about the matter which has been creating headline it is not really a call for concern at this point of in time but that has to do with the volatility that we have seen in the rupee. Now if I were to take a look at the emerging market currency basket and the rupee actually hasn’t depreciated very much, the lira, the peso have depreciated significantly more. I know that the commerce ministries view’s has been weaker rupee in fact would be perhaps beneficial not just for export but for the Indian economy, so what is your view currently on the depreciation on the rupee?

A: It was just a rupee that we are talking about, about depreciated value, yes, going by the principle of economics you would say that will help our exports. However, in the last one and a half year, we have seen globally most currencies fluctuate and the rupee’s fluctuation in a way the point that you have by implication meant, has not really been all that much. That has also been something on which many economists are writing and speaking about the fluctuation of currencies.

The rate at which fluctuation have affected one or the other currency in comparison with the rupee, so eventually the sum and substance of this currency story is the volatility is now becoming a new normal. Not just talking about rupee, of any currency globally, depressed demand, contracting economies, traditional markets being attracted, newer markets slow to rise, so that is the picture in which our exports are trying to find their feet.

Q: Given the fact that you are seeing this currency volatility and you believe that this is not going to be the new normal what is the way that you look at the rupee because if I were to look at estimates and I am just quoting to you one estimate that Deutsche Bank for instance has put out saying that the rupee is likely to breach 70 next year and head to 72.50 by December end to 2017 and I said this is just one estimate what would be the comfort zone for the government what would be beyond the comfort zone of the government. What is the picture as far as you are concerned?

A: Currency is one of the factors on which we will be looking at, but in general when you are trying to rave the export performance, rave it, up you are looking not just at the currency but you are looking whole lot of things.

So, it is going to be combination of factors which will have to work on simultaneously to have any plans for keeping the pace of the revival of exports as it were. So, it is not going to be just rupee which is going to pre-occupy me I will also have to talk about many other ways of supporting our exports so that they become competitive and in a market of this kind of a nature.

Q: The Finance Ministry has said that the RBI will intervene as and when it is appropriate. Would 70 for instance make the government feel uncomfortable? Anything beyond 69 makes the government feel uncomfortable? Do you believe that the RBI would need to step in at that point in time?

A: That is the point. Whether it is 69, whether it is 70, all this is happening with good lot of uncertainty other than on behalf of the currency. So, demand itself is not reviving. So, even if rupee depreciates, will it really give it enough of a headway when you are talking about exports?

So that is the reason why I repeat, it is not just the currency, not just the Indian rupee, but it is also the current phase where the floating is significantly palpable, measurable, gaugeable and therefore, of all countries and also at the rate at which economies and their revivals are happening.

Q: Let me ask you about demonetization. Once again, we have seen parliament being adjourned on account of the oppositions demands as the Prime Minister addressed the Rajya Sabha. But keeping the politics aside, if I were to ask you about the economic impact and once again, whether it is Citi, it is Morgan Stanley, bunch of people have put out various kinds of estimates, the former Prime Minister said that it could impact the GDP to the tune of 2 percent. Let me quote what the Centre For Monitoring Indian Economy (CMIE) had said. They say that the cost of demonetization during the 50-day window till December 30 will be about Rs 1.28 lakh crore. Businesses are expected to pay the biggest price for the demonetization exercise and the immediate impact could be around Rs 61,500 crore. This is just one estimate that has been put out by the CMIE. Does the government have any broad estimates that you can share with us because it has been over a fortnight. The problem that people are faced with is that there is a lack of data from the government in terms of what this exercise could actually cost the economy.

A: At this stage, I would think that it would be too early for me to speak about any figures or numbers with which I can say this is what it is going to be on trade. This is what it is going to be in terms of GDP. But what I would certainly, with a responsibility, be able to say is these 10 days between November 10 and November 20 have seen two different developments.

One is where sectors where there is labour intensive production and difficult to admit, but post Jan Dhan mission of the government, we still hear some exporters tell us that a lot of labourers, migrant workers do not have accounts. As a result of which, payments are still being made in cash and they would want more withdrawal facility over and above what government has put as a ceiling for a week. So that production is not going to be affected.

For me, it is a situation where I have to immediately respond just so that payments are not affected, just so that production is not affected, just so that eventually output does not suffer, export does not suffer.

Q: Has there been and you have had a meeting with the Export Promotion Council. The sense that we get when we talk to textile workers from Surat to Tirupur etc is that there is pain at this point in time. Do you have a sense of whether there has been retrenchment and layoffs across these labour intensive sectors in this past fortnight?

A: That is where I am coming to say that even during that interaction the employers went only that far to say one, please ensure that cash is given to us, greater withdrawal right is given to us and in some sectors particularly textile, weaving and carpet weaving and so on they said because we fear we may not have adequate cash in hand to disperse temporarily we might want not to have the production activity because we may not at the end of the day be able to give the payment.

But, then after meeting with them and soon after a few days we also know the inputs that we are getting from various quarters is that the stress has eased out. Currency is reaching them and therefore equally the worry that was there in the mind should not be any longer going to the extent of having to shut down businesses but even if there is a level of stress they would still be able to pay and keep the workers onboard.

So, I don’t think beyond the 10 days about which we are talking there should be any impact on production itself. So, the pain and the stress recognised, taken onboard and with the easing of currency gradually things will have found a way out by the end of this quarter.

Q: So, you are saying it will last at least a quarter the pain that we are talking about?

A: I am not talking about the pain. The entire output speculation that we are engaging in if output is going to be affected at all even if there is any impact on the output I don’t think it will be beyond this quarter and as regards people who have voiced to me about concerns about having more limits more cash is also going in now and therefore whether we increase the limit or not I know by now there is more currency reaching people.

Q: But have you got some sense from the finance ministry on whether we could expect a relaxation as far as the withdrawal limit is concerned?

A: I have kept giving a lot of inputs and many of them have been responded to. We will see what happens on this.

Q: You said that you can’t give us a number at this point in time but is this two percent an exaggeration, is two percent of an impact on gross domestic product (GDP) an overestimation. This is the former Prime Minister who spoke in parliament and consensus at this point in time if I look at all the reports that are coming from various economists, from brokerages etc is between 1 percent and on the extreme of 3 percent. So, where would you think the impact could be?

Q: You said that you can’t give us a number at this point in time but is this two percent an exaggeration, is two percent of an impact on gross domestic product (GDP) an overestimation. This is the former Prime Minister who spoke in parliament and consensus at this point in time if I look at all the reports that are coming from various economists, from brokerages etc is between 1 percent and on the extreme of 3 percent. So, where would you think the impact could be?

Therefore, for us to conclude on the basis of this 13 because progressively the situation is improving. So, factoring in all that and only after that I would think genuinely can anyone give us an impression of what it will be rather than for us at this time risk a number and that is where I had very clearly said former Prime Minister Dr Manmohan Singh who was a Governor once in RBI, Finance Minister, Prime Minister and he speak on the floor of the house. So, I feel it is too early for anyone to conclude on what will be the number.

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Sensex Up 456 Pts, Nifty Posts Biggest 1-Day Gain in Last 6 Months

stock-market-boom-capitalheightSpectacular rally on Friday helped equity benchmarks turned positive for the week as well as for the calendar year. On the first day of December series, the NSE Nifty closed above 8100 level and posted the biggest one-day gain in last six months, driven by in technology, HDFC Group and FMCG stocks.

Value buying after more than 7 percent loss in November due to demonetization & US elections and sharp recovery in rupee could be the reason for positive sentiment.

The 30-share BSE Sensex surged 456.17 points or 1.76 percent to 26316.34 and the 50-share NSE Nifty jumped 148.80 points or 1.87 percent to 8114.30. The broader markets also participated in the rally as the BSE Midcap and Smallcap indices gained 1.3 percent and 2 percent, respectively.

Dipen Shah of Kotak Securities says going ahead, the central bank meetings in India / US and the Italian referendum will be important triggers to watch out for.

Apart from this, markets will also try to gauge the medium term impact of the demonetization scheme of the government, he feels.

The recent fall in markets has made led to sizeable losses in prices of several stock. Hence, Shah says one must identify fundamentally sound stocks and accumulate them with a long term perspective.

Vinod Nair of Geojit BNP Paribas Financial Services says now the market will focus over the possibility of a 50 basis points cut in repo rate by RBI in the next monetary policy.

than three shares advanced for every share falling on the Bombay Stock Exchange.

For the week, the Sensex gained 0.6 percent and the Nifty rose 0.5 percent.

Meanwhile, the rupee recovered sharply against the American currency in sustained bouts of dollar selling from banks and exporters amid rally in equities. It was trading at 68.45, up 27 paise from previous settlement, at the time of writing this article.

All sectoral indices closed in the green today. IT & Pharma gained the most, up 4.75 percent and 3 percent, respectively.

Infosys, which had seen delivery buying worth Rs 700 crore on Thursday, was up 4.8 percent. TCS and Tech Mahindra surged 5-6 percent. Wipro was up 3 percent.

Sun Pharma climbed 4 percent. Bank of America Merrill Lynch has a buy call on the stock with a target price of Rs 790 as it says seven observations for Mohali unit don’t seem incriminating and these are minor in nature but Halol plant inspection outcome will be more critical.

HDFC, HDFC Bank, ITC, Lupin, NTPC, Dr Reddy’s Labs and GAIL surged 2-3.5 percent whereas Bajaj Auto, SBI and Bharti Airtel were the only losers among Sensex 30 stocks, down 0.2-0.7 percent.

In the broader space, Bata India gained 2 percent and Shilpa Medicare surged 9 percent after quarterly earnings. J Kumar Infra was up 9.6 percent on metro orders worth Rs 1,794 crore.

Fortune Financial spiked 4.7 percent on acquisition of additional 16.4 crore shares for Rs 164 crore in ITI Reinsurance. Talwalkars gained 5 percent on demerger of gym business into Talkwalkars Lifestyle.

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Weak Rupee Drags Market, Traders Cautious Ahead of F&O Expiry

bear_nse_bse_sensex_down_chart_board_graph_red-traders_markets_sensex2:44 pm Interview: Biotech entrepreneur Kiran Mazumdar-Shaw has said the demonetization of high-value currency notes is an opportunity to leapfrog into a digital cashless economy, even as she called for a effective monitoring to prevent accumulation of fresh black money.

The CMD of Biocon Ltd, which was rated among the world’s top ten employers in the biotechnology industry by an international magazine recently, said she is confident that the demonetized currency would be replaced by the new notes reasonably soon

“The objectives of flushing out counterfeit currency, illicit funding of businesses and illicit activities including extremism and terrorism and ‘havala’ transactions will certainly be achieved,” Mazumdar-Shaw told PTI.

Demonetization would also serve to be a deterrent to corruption in the short-term. “However, what remains to be seen is for how long can we stave off the re-emergence of black money,” she said.

2:30 pm Demonetization risks: Economic risks faced by banks in India have increased amid deteriorating credit profile of corporate, while demonetization could hurt lenders’ asset quality in the short-term, S&P Global Ratings said today.

It said while the demonetization of 500 and 1,000 rupee notes would be positive in long-term, it will have a transitory impact on growth in the short-term and could hurt banks’ asset quality.

“Bank deposits would benefit due to demonetization, though not all inflows will remain in the banking system on a permanent basis,” S&P said in a report titled ‘Banking Industry Country Risk Assessment: India’.

“The economic risks facing financial institutions in India have increased amid structural and cyclical challenges that Indian companies face,” it added.

Economic risks faced by banks in India have increased amid deteriorating credit profile of corporate, while demonetization could hurt lenders’ asset quality in the short-term, S&P Global Ratings said today.

It said while the demonetization of 500 and 1,000 rupee notes would be positive in long-term, it will have a transitory impact on growth in the short-term and could hurt banks’ asset quality.

Bank deposits would benefit due to demonetization, though not all inflows will remain in the banking system on a permanent basis,” S&P said in a report titled ‘Banking Industry Country Risk Assessment: India’.

“The economic risks facing financial institutions in India have increased amid structural and cyclical challenges that Indian companies face,” it added.

Weak Indian currency is dragging the market but the Nifty is defending crucial 7950. Traders are also cautious ahead of November Futures and Options (F&O) expiry. The Sensex is down 160.84 points or 0.6 percent at 25890.97, and the Nifty down 53.35 points or 0.7 percent at 7979.95. About 1141 shares have advanced, 1246 shares declined, and 171 shares are unchanged.

TCS , Infosys, Bajaj Auto, Wipro and SBI are gainers while Tata Motors, NTPC, ICICI Bank, Axis Bank and GAIL are losers.

As weak rupee spreads panic on street, Khoon Goh of ANZ Research said rupee may depreciate another 2-4 percent. However, he does not expect it to weaken much further because the RBI has plenty of forex reserves.

NS Venkatesh, ED, Lakshmi Vilas Bank said the fundamentals of rupee are still intact and as equity market stabilises, rupee too will follow suit.

Bhaskar Panda of HDFC Bank does not see the rupee going past 69.25 to the dollar anytime soon because according to him the slide is overdone. He also does not expect the dollar index to rise further than 104 because it could impact American exports and jeopardise their Make in America programme.

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Rupee Extends its Losses; Slips to Lowest Level Since Aug 2013

Rupee updates-CapitalHeightThe Indian rupee, extended its losses for the fifth consecutive day and traded 17 paise down at 68.73 against the US dollar, its lowest level since August 2013.

The rupee crashed to a nearly 39-month low of 68.84 amid sustained foreign fund outflows and the greenback’s surge in overseas markets.

The rupee breached the 68.80 mark as upbeat economic data strengthened the prospect for higher US interest rates, while the dollar’s bull run continued as US bond yields hovered near multi-year highs.

The rupee has fallen against the dollar since Donald Trump won the presidential election in the US on November 9, 2016. It has fallen from the 66.43 level and reached the 68.8325 mark today.

On the global front, Federal Reserve chair Janet Yellen has announced that Trump’s election has done nothing to change the federal reserve’s plans for a rate increase “relatively soon.” A rate hike in US will lead to flow of money from emerging markets leaving their currencies and assets vulnerable to the negative risks.

Chinese Yuan is also sinking, with values tumbling to a record low of 6.9378 against the US dollar at one point of time yesterday in the offshore markets. US dollar index will witness further gains, with values expected to hit 105 in the coming weeks. Euro seems to be the most vulnerable, influenced by the uncertainty over Italian constitutional referendum in the first week of December.

The Indian Rupee closed lower by 31 paise at 68.56/$. The local unit hit a high of 68.67/$ and a low of 68.83/$ today.

The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.47 while for the Euro it was 72.78. The RBI’s reference rate for the Yen stood at 61.71; reference rate for the Great Britain Pound (GBP) stood at 84.9665.

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Live Stock Market Updates – Sensex in Red, Auto Shares Down

bear-marketAt 9:43 AM, the S&P BSE Sensex is trading at 25,933 down 122 points, while NSE Nifty is trading at 7,986 down 45 points. Out of 1,871 stocks traded on the NSE, 996 declined, 471 advanced and 404 remained unchanged today.

A total of 6 stocks registered a fresh 52-week high in trade today, while 20 stocks touched a new 52-week low on the NSE.

The BSE Mid-cap Index is trading down 0.55% at 11976, whereas BSE Small-cap Index is trading down 0.47% at 11750.

Hindalco, Infosys, Asian Paints, Dr Reddy, Hero Motors  are among the gainers, whereas Eicher Motors, Tata Motors, Kotak Bank, Bosch, Bank of Baroda, Lupin, are losing sheen on NSE in the morning trading hour.

Some buying activity is seen in Information Technology, Metal, Telecommunication sectors, while Auto, Banking, Healthcare, Capital Goods, Consumer Durables are showing weakness on BSE.

The INDIA VIX is up 2.17% at 18.4325.

Asian markets opened in the red except the Japanese ‘Nikkei” which continues to be in a new bull market orbit. With the US markets closed on Friday for an extended weekend expect profit booking as globally markets digest the gains of last fortnight. Gold prices weaken & bond yields fell as the US $ & indices hit new highs.

The US indices saw their third day of gain ahead of the Thanksgiving Day holiday. The dollar has been on a one way street strengthened by expectations of higher interest rates from the Fed sooner than later. The languishing rupee is down nearly 3pc in November giving heart-aches to importers and some comfort to export-oriented companies.

Foreign investors have offloaded nearly Rs 12,000 crore net in equities and almost similar amount in bonds during November. The usual volatility may set in towards the close of trading. Signals are mixed from Asia even as the Japanese stocks continue to appreciate. The rollovers have been the lowest in half a year, especially the Bank Nifty. Few notable sectors seeing better rolls include pharma, auto, metals and real estate.

On the economy front, Securities houses and rating agencies have cut their estimates of India’s GDP growth in anticipation of temporary headwinds from the 8 November demonetization of high-value currency notes.

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Rupee Opens at Fresh 9-Month Low; Down 18 paise

rupee-down-capitalheightThe Indian rupee opened at fresh 9-month low at 68.74 per dollar on Thursday. It has slipped 18 paise versus previous close 68.56.

The rupee is near to its record closing low of 68.85 per dollar, which it has tested on August 28, 2013.

Mohan Shenoi of Kotak Mahindra Bank said, “Dollar rally across the board is continuing. December US Fed rate hike is now certain. While rupee has weakened sharply against dollar, it has in fact strengthened against currencies like euro and yen.”

“We expect the USD-INR to trade in a range of 68.65-69/dollar for the day,” he said.

The dollar surged to a more than 13-year peak, bolstered by upbeat US economic data that showed the economy on track for steady growth and reinforced expectations of interest rate increases by the Federal Reserve next month and in 2017.

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Rupee Declines Further, Ends at 68.56 Against US Dollar

Rupee Vs DollarExtending losses for the fourth session, the India rupee closed lower by 31 paise at fresh 9—month low of 68.46 against the US dollar in early trade today at the Interbank Foreign Exchange on sustained capital outflows amid the American currency strengthening overseas.

Besides, heavy demand for the American currency from importers, persistent outflows by foreign funds and the dollar’s strength against other currencies overseas mainly weighed on the domestic unit. Investors are cautious ahead of the key gross domestic product (GDP) data which will be released on November 30.

For the currency markets, the only game in the town is potential increase in fiscal spending by US governmentand ensuing hawkish Fed policy. However, we sense that markets have jumped the gun, as uncertainty prevails on how Trump’s proposed massive tax cuts and US $1 trillion infrastructure spending will be funded.

The Indian Rupee closed lower by 31 paise at 68.56/$. The local unit hit a high of 68.25/$ and a low of 68.29/$ today.

The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 68.47 while for the Euro it was 72.78. The RBI’s reference rate for the Yen stood at 61.71; reference rate for the Great Britain Pound (GBP) stood at 84.9665.

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