Market volatile; Bankex, FMCG slips

The market extended losses in late noon deals on the back of a fresh round of selling across all sectors. 

At 2:57 PM, the S&P BSE Sensex is trading at 29,307 down 13 points, while NSE Nifty is trading at 8,849 down 20 points.

Similarly, the NSE Nifty has dropped 109 points from the day's high to touch a low at 8,794. Now, the 50-scrip index is at 8,827 - down 41 points.

The broader market is also trading in line with the benchmark indices. The CNX Smallcap index has slipped nearly a per cent at 5,611. The CNX Midcap index has moved down 0.7 per cent at 13,079. The Nifty Junior has cracked over a per cent at 19,439.

The volatility index - India VIX has added 0.3 per cent at 20.9650.

Sectorwise, the CNX Metal index is the star performer - up 1.8 per cent, led by Jindal Steel &  Power. The stock has zoomed over 20 per cent at 187 on media reports the company won the Gare Palma IV/2 &3 coal blocks for Rs. 108 per tonne in the e-auctions for coal blocks.

The CNX IT index has added over 0.5 per cent.

On the other hand, the CNX PSU Bank index has tumbled 2.6 per cent. The Bank Nifty has  dropped over 501 points from the day's high.

The CNX FMCG index has cracked 1.8 per cent. The CNX Energy index has slipped over a per cent.

The CNX Realty, the CNX Pharma and the CNX Auto indices have moved down over 0.5 per cent each.

Other metal stocks like Hindustan Copper has soared 8 per cent at Rs. 76.80 on heavy volume.  The NSE counter has seen almost 14-times jump in volumes of 3 million shares, as against two- week daily average volume of 212,000 shares.

Jindal Saw has rallied 6.5 per cent at Rs. 82.30. The Orissa Minerals Development company has surged 6 per cent at Rs. 3,230.

JSW Steel, Bhushan Steel, Tata Steel, Sesa Sterlite and Hindalco are some of the prominent gainers.

The market breadth is negative in the noon deals. Out of 1,696 stocks have traded on the NSE -  894 stocks have declined, while 566 stocks have advanced 

Cipla clarifies reports on acquisition plans

As a pharmaceutical company, we are constantly in discussions with multiple parties on potential collaboration opportunities - in line with our aspiration to drive access and ensure availability of high quality, affordable medicines, says Cipla. 

The Exchange had sought clarification from Cipla Ltd with respect to news appearing in ET NOW on February 19, 2015 titled "Cipla plans to acquire Pharma based companies in the US.

"Cipla Ltd clarified "We wish to clarify that Company does not comment on any product or partner discussions. As a pharmaceutical company, we are constantly in discussions with multiple parties on potential collaboration opportunities - in line with our aspiration to drive access and ensure availability of high quality, affordable medicines.

As in the past, the Company would continue to inform stock exchanges about any price sensitive information before the same is made public."

Govt clears $8 bn warships project

Report said that Prime Minister Narendra Modi has signalled resolve to build a strong military. 

The government has cleared $8 bn plan to build India's most advanced warships, according to reports.

Modi held a cabinet committee meeting on security to approve construction of seven frigates equipped with stealth features, says a report.

There are media reports that government had also approved six nuclear-powered submarines for a further $8 bn.

We have raised the permitted level of FDI to 49%. This can go higher, if the project brings state-of the art technology," the PM said on Wednesday at Aero India, in Bengaluru.  

“To many of you, India is a major business opportunity.  We have the reputation as the largest importer of defence equipment in the world.  That may be music to the ears of some of you here. But, this is one area where we would not like to be Number One!  Our security challenges are well known. Our international responsibilities are evident. We do need to increase our defence preparedness. We do have to modernize our defence forces,” the prime minister said.

Single statement for all demat holdings from March: NSDL

The single statement would provide information of demat accounts for equity, debt, bond and mutual fund investments of one individual investor 

The National Securities Depository Ltd (NSDL) on Wednesday said that investors will have single statement for all dematerialised accounts across the capital market products from March 1, according to a media report.

Investors would get a unique ID number through which a comprehensive picture of all their market investments in one statement from the next month, the report added.

The single statement would provide information of demat accounts for equity, debt, bond and mutual fund investments of one individual investor or entity.

A multiple accounts holder across the product segments can now be able to generate a comprehensive statement for all the accounts. 

SIPs count up 3-times to 50,000 a month: Reliance MF

Reliance MF said that on an average the fund house is getting investments of Rs. 600 crore per month by adding 50,000 new SIPs to its portfolio.

Reliance Mutual Fund said that it has seen the number of its new ‘Systematic Investment Plans’ grow three-times to 50,000 per month, according to a report published by a newswire.

Reliance MF, run by Reliance Capital Asset Management Company, said that on an average the fund house is getting investments of Rs. 600 crore per month by adding 50,000 new SIPs to its portfolio, the report said.

An SIP allows an investor to make investment of a fixed and small sum on a monthly basis or other regular intervals in a mutual fund scheme

Fertiliser shares in focus on hopes Budgetary sops

RCF, Chambal Fertiliser, FACT are some of the prominent gainers. 

Shares of fertiliser companies are in focus today owing to media reports of making fuel prices more affordable to these companies in the upcoming Union Budget.

According to reports, the oil ministry has proposed to pool or average out prices of domestic natural gas and imported LNG used by fertiliser plants to make the cost of fuel uniform and affordable. The ministry has also asked for service tax on imported LNG for pool to be waived.

Following which, the fertilisers shares are trading on a higher note today. Southern Petrochemical has zoomed 5 per cent to Rs. 21.05.

Rashtriya Chemicals & Fertilisers (RCF) and National Fertilizers have surged over 4 per cent each to Rs. 73 and Rs. 41.50, respectively.

Chambal Fertilisers & Chemicals and Fertilizers and Chemicals Travancore (FACT) have rallied nearly 3 per cent each to Rs. 71.80 and Rs. 34.60, respectively.

Gujarat State Fertilizers & Chemicals (GSFC) and Gujarat Narmada Valley Fertilizers are also up over a per cent each.

Meanwhile, the Sensex has recouped some of the losses and is now down 57 points at 29,263 

Government to decide on Nalco, Bhel, NMDC stake sale today

NEW DELHI: The government is expected to decide on selling stake in three blue chip public sector companies — Nalco, Bheland NMDC — on Thursday after its move to sell shares inIndianOil and ONGC have run into rough weather in the wake of low oil prices.

The finance ministry has proposed a sale of 10% each in state-run mining firm NMDC and aluminum maker Nalco, while recommending a fresh 5% disinvest in heavy engineering major Bhel. Based on Wendesday's close on the Bombay Stock Exchange, sale of shares in the three companies is expected to fetch close to Rs 10,000 crore.

While the cabinet is scheduled to discuss the proposals on Thursday, it is not clear whether the share sale will be undertaken during the current financial year or is part of the list of PSUs where the government intends to disinvest its equity next year.

Sensex, Nifty slips into red

CNX PSU Bank, FMCG and Energy indices are the major losers. 

The market has shaved-off all its gains on the back of fresh selling in select sectors.

The NSE Nifty has dropped 51 points from the day's high to touch a low at 8,852. The Nifty is now down 20 points at 8,849.

The BSE Sensex has tumbled 176 points from the day's high. The BSE index is now down 99 points at 29,221.

The CNX PSU Bank is the top loser - down 1.2 per cent. The Bank Nifty has slipped nearly a per cent.

The CNX FMCG and the CNX Energy indices have dropped 0.7 per cent each. The CNX Auto and the CNX Infra indices are trading on a soft note.

Whereas, the CNX Metal index is the top gainer - up nearly a per cent.

Among Nifty-50 stocks, Ambuja Cement is the top loser - 1.8 per cent at Rs. 265. The company posted mere four per cent growth in Q3 net profit for the quarter ended December 2014.

UltraTech Cement has tumbled 1.7 per cent at Rs. 3,058. Cairn India and ACC have dropped 1.5  per cent each at Rs. 255 and Rs. 1,629, respectively. Bank of Baroda has slipped 1.3 per cent at Rs. 181.

On the other hand, Tata Steel is the top gainer - up 2.2 per cent at Rs. 376. Asian Paints has surged 1.7 per cent at Rs. 835.

Infosys and Cipla have advanced 1.4 per cent at Rs. 2,328 and Rs. 687, respectively. Sesa Sterlite and BPCL have added 1.3 per cent at Rs. 208 and Rs. 739, respectively.

Maruti Suzuki, Larsen & Toubro, Hindalco, Jindal Steel and HeroMoto Corp are some of the other prominent gainers. 

Top corporate news of the day - February 19, 2015

NTPC Limited said it would supply an additional 1,657 megawatts (Mw) to Uttar Pradesh in another two years.

ONGC said it has signed a Memorandum of Understanding with Super Wave Technology for development of an alternative to hydraulic fracturing or fracking technology that is used to produce shale oil and gas.

NTPC Limited said it would supply an additional 1,657 megawatts (Mw) to Uttar Pradesh in another two years.

Boeing announced it has signed a multi-year contract with Bharat Forge to supply titanium forgings for wing components for the Next-Generation 737 and 737 MAX at Aero India show in Bengaluru.

Carrying forward its trend of bidding aggressively, Power Grid Corporation of India has put in aggressive bids for grabbing latest power transmission projects.

Sundaram Finance has acquired an additional 26% stake in Royal Sundaram, its non-life insurance joint venture with RSA Group, UK. With this acquisition, the company owns 75.9% stake in Royal Sundaram.

 Lupin has launched a new version of its asthma drug delivery device in the US market under a licensing agreement with the New Jersey-based respiratory research and development company InspiRX Inc.

 Mahindra & Mahindra is recalling an unspecified number of its premium sports utility vehicle XUV500 vehicles manufactured on or before July 2014 to upgrade the side curtain airbag software.

 Honda Motorcycle and Scooter India is looking to make operational its new facility at Gujarat around January – February of 2016. The new plant will add 1.2 million units and cater to scooter manufacturing only.

Holcim-Lafarge has embarked on a mega restructuring plan in India and is looking at a plan to merge ACC, Ambuja and Lafarge India.

SpiceJet continues to run its operations on the cash generated by the advanced bookings with no "indication" of the proposed investment of Rs15bn from the new promoter having come in.

  Tata Consultancy Services announced that it has partnered with Startupbootcamp FinTech, a leading accelerator focused on financial innovation, to host the Pitch Days in India.

 Hindustan Copper Ltd has bought the assets, both moveable and immovable, of Jhagadia Copper Ltd, which was in liquidation, through auction from Asset Reconstruction Co (India) Ltd for an undisclosed amount.

  Berger Paints India Ltd inked a MoU with the Government of Stavropol Region, Russian Federation for setting up an industrial coatings plant in the region at an initial investment of US$5mn.

 Godrej Group is set to buy a small-sized e-commerce company through its retail arm Nature’s Basket, a subsidiary of Godrej Industries.

Lower oil prices have changed economic environment for region's exporters: Fitch

Abu Dhabi and Saudi Arabia are the only Fitch-rated oil exporters to have released 2015 budgets so far. Abu Dhabi cut budgeted spending by one-third. Saudi Arabia issued an expansionary budget, but overspending (which has averaged 25% over the past decade) is likely to be curtailed.

Fitch Ratings says in a new report that the divergence between the ratings of energy exporters and importers in the Middle East and North Africa (MENA) is narrowing due to lower oil prices.
 
Lower oil prices have changed the economic environment for the region's exporters. They will reduce fiscal and external outturns and hit corporate and consumer confidence. Fitch expects Brent crude to average USD70/b in 2015 and USD80/b in 2016. The extent of the impact on the fiscal position depends on the policy response, although in a region where growth is dependent on government spending, fiscal consolidation is likely to have negative impacts on growth. Abu Dhabi and Saudi Arabia are the only Fitch-rated oil exporters to have released 2015 budgets so far. Abu Dhabi cut budgeted spending by one-third. Saudi Arabia issued an expansionary budget, but overspending (which has averaged 25% over the past decade) is likely to be curtailed.
 
Capacity to absorb lower oil prices varies in line with ratings. Bahrain (BBB/Negative) seems the most strained, with a 2014 fiscal breakeven oil price of USD130/b and debt/GDP already above the peer median, and was placed on a Negative Outlook in December. Oman also requires more than USD100/b to balance its budget, but has sovereign wealth fund assets and a low debt burden. 'AA' rated Abu Dhabi and Kuwait are still expected to post fiscal and external surpluses in 2015 and net sovereign foreign assets in excess of 150% of GDP provide vast buffers in the event of prolonged low oil prices.
 
In Saudi Arabia (AA), the impact on the fiscal position has been aggravated by a spending package worth 3.9% of 2014 GDP announced by the new King. However, the Kingdom has exceptionally large buffers and virtually no debt, although it is examining debt financing options. The smooth succession and appointment of a member of the third generation of the royal family in the line of succession removes a potential source of political risk.
 
Oil importers are benefiting from lower prices through reduced import bills and lower fuel subsidy costs. Jordan stands to gain the most, with net fuel imports of 16% of GDP and fuel subsidies (transfers to the state electricity generating company) of around 8% of GDP. Net fuel imports for Lebanon and Morocco both exceed 10% of GDP. Egypt is a small net importer, but spent around 6% of GDP on fuel subsidies in FY14 (to end June). Subsidy reform combined with lower oil prices were a contributory factor to the recent upgrade of Egypt to 'B'.
 
Fitch views geopolitical risk as elevated compared with other regions. ISIS activity poses risks to several MENA sovereigns. The potential for worsening spill over from events in Syria is reflected in the Negative Outlook on Lebanon (B). Domestic political transitions also remain a source of uncertainty and undermine the environment for economic reform and performance. Progress has been made in Egypt (B) and Tunisia (BB-), although the risks for the latter remain captured in its Negative Outlook.
 
The ratings of MENA energy importers range from 'BBB-' (Morocco) to 'B' (Egypt and Lebanon). Energy exporters' ratings range from 'BBB' in Bahrain to 'AA' in Abu Dhabi, Kuwait and Saudi Arabia.