Tuesday, 18 August 2015

Sensex, Nifty volatile after China market cracks

The broader market however, continues to trade on a firm note. The CNX Smallcap index has spurted over a percent at 5,723. The CNX Midcap index has gained 0.7 percent at 14,071.On the other hand, the CNX Metal index has dropped 0.5 percent. The CNX FMCG and the CNX Energy indices have declined 0.2-0.3 percent.


Stock Market Down
The market has pared most of its earlier gains and is now trading on a flat note in late morning deals.

At 12:06 PM, the Sensex is down 49 points at 27,829. The Nifty is down mere four points at 8,473.

The broader market however, continues to trade on a firm note. The CNX Smallcap index has spurted over a percent at 5,723. The CNX Midcap index has gained 0.7 percent at 14,071.

Among sectoral indices the CNX IT index is the top gainer - up 1.7 percent. The CNX PSU Bank index has jumped 1.2 percent. The CNX Auto index has added 0.6 percent.

On the other hand, the CNX Metal index has dropped 0.5 percent. The CNX FMCG and the CNX Energy indices have declined 0.2-0.3 percent.

Among Nifty losers - Gail has tumbled 3.4 percent at Rs. 334. NMDC has dropped nearly 3 percent at Rs. 96.20.

Cipla has shed almost 2 percent at Rs. 690. Idea Cellular and Coal India have slipped over 1.5 percent each at Rs. 160 and Rs. 374, respectively.

Lupin, Cairn India, Tata Power, ITC and HDFC Bank are among the notable losers.

Sensex Edges Lower; HDFC, ICICI Bank Drag

11:55 a.m.: Nifty 8,600 call option was the most active options contract on the National Stock Exchange. The premium on the contract fell 4.45 per cent to Rs 37.55. More than 1.4 lakh shares were added to the open interest of 5.19 million shares.

11:50 a.m.: Ashok Leyland, State Bank of India, Suzlon Energy, J P Associates, Unitech, Bank of Baroda and Canara Bank were among the most actively traded stocks on the National Stock Exchange.

11:41 a.m.: BSE small-cap index was outperforming the benchmark index, up 0.7 per cent; Signet Industries, Nitin Fire Protection Industries, Tata Coffee, Speciality Restaurants, Zee Media Corporation and Banco Products were among the top gainers from the small-cap space.

11:35 a.m.: Banking, metal, power, realty and healthcare stocks were facing the heat of selling pressure. The respective indices were down 0.1-0.6 per cent each.

11:21 a.m.: Overall breadth was positive as 1,517 stocks were advancing while 824 were declining.

11:10 a.m.: Gujarat Pipavav Port shares surge 7.7 per cent to hit intraday high of Rs 207.50 after Kotak Mahindra International a group company of Kotak Mahindra Group purchased 6.5 million shares of Gujarat Pipavav Port at Rs 197 per share via bulk deal on the NSE.

11:03 a.m.: The markets came off the intraday high levels on the back of selling in blue-chip stocks such as ICICI Bank, ITC, HDFC and Reliance Industries.

The Sensex was up 93 points at 27,972 and the Nifty was up 26 points at 8,503.

10:45 a.m.: The Sensex jumped 143 point to 28,021 and Nifty advanced 43 points to 8,520 on the back of buying in IT stocks.

IT stocks were in high demand today. The BSE IT index rose 2.25 per cent; Infosys was the top gainer from the IT space, up nearly 3 per cent to Rs 1,175. TCS, Wipro, Tech Mahindra and HCL Technologies were also up 1-2.8 per cent each.

10:07 a.m.: Shares of coffee producers surged on Tuesday surged after a report said that the government is weighing allowing foreign direct investment in coffee plantation sector.

Tata Coffee surged 8.5 per cent to Rs 103.75 while CCL Products rose nearly 6 per cent to Rs 244.95. Tata Global Beverages rose 2.7 per cent.

10:04 a.m.: Deutsche Bank has maintained its 'hold' rating on DLF for target price of Rs 150 per share. Deutsche Bank says that it sees balanced risk-reward going ahead and its value unlocking through REITs is a big trigger for the company. However, Deutsche Bank adds that muted new bookings will continue to strain cash flows.

9:37 a.m.: Moody's Investors Service cut its forecast for India's economic growth to around 7 per cent this fiscal year (2015-16) from 7.5 per cent because of lower-than-expected rainfall in the ongoing monsoon season, the ratings agency said on Tuesday.

9:35 a.m.: Kunal Bothra of LKP Securities says that one can buy JSW Steel around Rs 970-972 for target of Rs 1,020 with stop loss at Rs 935 for a period of two weeks.

9:27 a.m.: Kunal Bothra of LKP Securities says that the Nifty has been moving in a range of 300 points since quite some time now and it faces resistance at 8,650 and has support at 8,350.

9:25 a.m.: From the Nifty-50 basket of stocks, 40 were advancing while 10 were declining.

Tata Steel, Vedanta, Infosys, Tech Mahindra and Hindalco were among the gainers on the Nifty.

On the other hand, Punjab National Bank, Bank of Baroda, NMDC, State Bank of India, ICICI Bank, GAIL India and Tata Motors were among the losers.

9:20 a.m.: The markets opened higher in trades today. The Sensex jumped 118 points to 27,996 and the Nifty advanced 31 points to 8,508.

Buying was visible in most of the sectors. IT, metal, capital goods, auto and realty indices advanced 0.7-0.9 per cent each.

The broader markets were also witnessing buying interest. The BSE mid-cap and small-cap indices advanced 0.6 per cent each.

9:09 a.m.: Sensex jumps 71 points to 27,949 and Nifty advances 29 points to 8,506 in the pre-market session.

8:25 a.m.: Below are the stocks which will be in focus today: 

Coal India: Coal India held an analysts meet at its headquarter in Kolkata. Coal India management appeared highly focused on achieving its 550 million tonnes volume target for FY16. Coal India has increased supply to non-core sectors under FSA from 60 per cent to 100 per cent from Q2FY16. Price for non-core is 35 per cent higher than power sector.

Mahindra & Mahindra: Auto major Mahindra & Mahindra has received shareholders' approval to raise up to Rs 5,000 crore through issuance of securities on private placement basis in domestic and/or international markets.

In a filing to the BSE, Mahindra & Mahindra (M&M) said its shareholders have approved resolutions, including raising up to Rs 5,000 crore, at its annual general meeting (AGM) held on August 7.

Gujarat Pipavav: Far East India Subcontinent 3 has planned to moved out of Pipavav Port to Mundra Port. Macquire says that worst-case earnings impact would be 9 per cent volume loss and its impact should be known over next 1-2 quarters.

Rubber, Coffee Stocks: Shares of coffee makers such as Tata Coffee, CCL Products etc and rubber companies like Apar Industries, Apcotex Industries etc. will be in focus today as reports suggest that the government is considering allowing foreign direct investment (FDI) in rubber and coffee plantation sectors with an aim to attract more FDI into the country.

Currently, 100 per cent foreign investment is permitted through the government approval route in the tea plantation sector. However, FDI is not allowed in any other plantation sector or activity.

8:15 a.m.: Foreign institutional investors bought shares worth Rs 142.3 crore on and the domestic institutional investors purchased shares worth Rs 183 crore on Monday.

In the F&O segment, the FIIs sold index futures worth Rs 600 crore and also sold stock futures worth Rs 40 crore.

8:05 a.m.: The Sensex and Nifty are likely to open higher as indicated by the Nifty futures traded on the Singapore Stock Exchange. Nifty futures traded on the Singapore Stock Exchange also known as the SGX Nifty was up 0.24 per cent or 20 points at 8,504.

Meanwhile, Asian markets were trading on a mixed note. Hong Kong's Hang Seng advanced 0.3 per cent and Taiwan Weighted added 0.03 per cent. While, Japan's Nikkei fell 0.2 per cent and China's Shanghai Composite index was down 0.8 per cent.

Overnight, US stocks rose on Monday after strong economic data boosted the housing sector and as investors bought recently battered shares in biotech and media.

Housing stocks rose after data showed U.S. homebuilder sentiment rose in August to its highest since a matching reading almost a decade ago.

The Dow Jones industrial average rose 67.78 points, or 0.39 per cent, to 17,545.18, the S&P 500 gained 10.9 points, or 0.52 per cent, to 2,102.44 and the Nasdaq Composite added 43.46 points, or 0.86 per cent, to 5,091.70. 

Top mutual fund news of the day- August 18, 2015

Mutual Fund managers seem to be bullish on bank shares as they raised their allocation in the sector to an all time-high of over Rs 85,000 crore in July.


Mutual fund managers seem to be bullish on bank shares as they raised their allocation in the sector to an all time-high of over Rs 85,000 crore in July anticipating a rate cut by the Reserve Bank. 

Kotak MF has launched a new fund named Kotak FMP Series 178, a close-ended debt scheme with the duration of 1,099 days from the date of allotment of units. 

Axis MF has announced that the closing date of the new fund offer of Axis Hybrid Fund, Series 25 (1,278 days), a close ended debt scheme, has been extended from August 17 to 19. 

DSP BlackRock MF has set August 21 as record date for declaration of dividend under regular plan dividend option of DSP BlackRock Tax Saver Fund, an open-ended equity-linked savings scheme. 

With equity funds witnessing 15th straight month of inflows, fund houses are lining up products to cash in on this interest. Documents for around a dozen equity new fund offer documents have been filled with the regulator in a fortnight or so. 

Coffee stocks in focus

Tata Coffee, Tata Global and CCL Products have rallied 2-9 percent on the BSE.


Shares of coffee makers are in limelight today on hopes of 100 percent FDI in the sector.

According to a media reports, the government may allow foreign direct investment (FDI) in rubber and coffee plantation sectors with an aim to attract more FDI into the country.

Tata Coffee has zoomed to a high at Rs. 107 and is now up 8.8 percent to Rs. 104. CCL Products has rallied almost 6 percent at Rs. 245.

Tata Global Beverage and Bombay Burmah Trading Corporation have spurted over 2.5 percent each at Rs. 135 and Rs. 605.

Meanwhile, the Sensex has surged 117 points at 27,995.

RBI cancels registration of 7 NBFCs

The decision has been taken in accordance with the powers conferred on it, the central bank said in a notification.


RBI
The Reserve Bank of India (RBI) has cancelled the certificate of registration of seven non-banking financial companies (NBFCs).

The decision has been taken in accordance with the powers conferred on it, the central bank said in a notification.

Following the cancellation of registration certificate, these NBFCs cannot transact the business of a non-banking financial institution, the RBI said.

Of the seven cancellations, four NBFCs have their offices in Kolkata, while the balance three NBFCs are registered in New Delhi, including Religare Finance Limited.

Other two Delhi-based firms are Artisans Micro Finance Private Limited and RCS Parivar Finance Limited.

The Kolkata-based NBFCs are Nott Investments (P) Ltd, Eden Trade & Commerce Pvt Ltd, Swetasree Finance (P) Ltd and Dewra Stocks & Securities (P) Ltd.

Coffee Stocks Surge on Buzz of FDI in Plantation Sector

Coffee Stocks Surge on Buzz of FDI in Plantation Sector

Shares of coffee producers surged on Tuesday after a report said that the government is weighing foreign direct investment in plantation sector.

Tata Coffee surged 8.5 per cent to Rs 103.75 while CCL Products rose nearly 6 per cent to Rs 244.95. Tata Global Beverages advanced 2.7 per cent while Bombay Burmah gained 2.8 per cent. In comparison, Sensex was up nearly 0.4 per cent.

Press Trust of India on Monday, quoting sources, reported that the government is considering allowing foreign direct investment (FDI) in rubber and coffee plantation sectors.

A proposal to this effect is under consultation of the commerce and industry ministry, the report said. Currently, 100 per cent foreign investment is permitted through the government approval route in the tea plantation sector. However, FDI is not allowed in any other plantation sector or activity.

Meanwhile, tyre stocks also saw buying interest. Goodyear India, Apollo Tyres and CEAT were up between 1.5 per cent and 2 per cent.

The report added that foreign players could be allowed to engage in rubber and coffee plantation, engage labourers in plucking of coffee beans or collecting latex from rubber trees and processing of the raw material. Permitting foreign investment will also help India reduce import bill of rubber and boost India's coffee exports.

As per estimates, the country's coffee output is pegged at 3,31,000 tonne for 2014-15 crop year (October-September), against 3,04,500 tonne last year. India exported coffee worth $803 million in 2014-15 against $799 million in 2013-14. 

Nifty Faces Resistance Around 8,600-8,700

US stock markets strengthened overnight ahead of the release of FOMC minutes on Wednesday. Economic data were mixed, with US, homebuilder sentiment having improved in August. European equities also closed slightly higher (excluding the DAX). Commodities are generally flat with WTI crude oil prices falling back below $42/bbl. On Monday, the US dollar continued to appreciate against Asian currencies including the rupee.

With Asian markets this morning providing no real cues, expect the market to ride on local sentiment, which has been swaying wildly over the last few days. After the 2 per cent move last Friday, Monday was a weak session. Money markets are closed today on account of the Parsi new year.

8,600-8,700 stays the next big resistance for Nifty with $1.3 billion open interest at those strikes from call writers. Results season has ended and there are no macro-economic releases which are expected to come this week.

Monday's session was mainly dominated by PSU Banks with SBI and BoB counting among the top traded stocks. It was the second strong day for PSU banks after long positions were added on Friday.

Oil marketing stocks have all reported strong results for Q1 but this has not translated into stock upsides so far. Watch that space. Tech stocks were weaker on Monday despite the weakening rupee. Midcaps generally held out with the CNX Midcap Index closing up 0.4 per cent.         

Sensex Jumps 100 Points, Nifty Above 8,500

9:20 a.m.: The markets opened higher in trades today. The Sensex jumped 118 points to 27,996 and the Nifty advanced 31 points to 8,508.

Buying was visible in most of the sectors. IT, metal, capital goods, auto and realty indices advanced 0.7-0.9 per cent each.

The broader markets were also witnessing buying interest. The BSE mid-cap and small-cap indices advanced 0.6 per cent each.

9:09 a.m.: Sensex jumps 71 points to 27,949 and Nifty advances 29 points to 8,506 in the pre-market session.

8:25 a.m.: Below are the stocks which will be in focus today: 

Coal India: Coal India held an analysts meet at its headquarter in Kolkata. Coal India management appeared highly focused on achieving its 550 million tonnes volume target for FY16. Coal India has increased supply to non-core sectors under FSA from 60 per cent to 100 per cent from Q2FY16. Price for non-core is 35 per cent higher than power sector.

Mahindra & Mahindra: Auto major Mahindra & Mahindra has received shareholders' approval to raise up to Rs 5,000 crore through issuance of securities on private placement basis in domestic and/or international markets.

In a filing to the BSE, Mahindra & Mahindra (M&M) said its shareholders have approved resolutions, including raising up to Rs 5,000 crore, at its annual general meeting (AGM) held on August 7.

Gujarat Pipavav: Far East India Subcontinent 3 has planned to moved out of Pipavav Port to Mundra Port. Macquire says that worst-case earnings impact would be 9 per cent volume loss and its impact should be known over next 1-2 quarters.

Rubber, Coffee Stocks: Shares of coffee makers such as Tata Coffee, CCL Products etc and rubber companies like Apar Industries, Apcotex Industries etc. will be in focus today as reports suggest that the government is considering allowing foreign direct investment (FDI) in rubber and coffee plantation sectors with an aim to attract more FDI into the country.

Currently, 100 per cent foreign investment is permitted through the government approval route in the tea plantation sector. However, FDI is not allowed in any other plantation sector or activity.

8:15 a.m.: Foreign institutional investors bought shares worth Rs 142.3 crore on and the domestic institutional investors purchased shares worth Rs 183 crore on Monday.

In the F&O segment, the FIIs sold index futures worth Rs 600 crore and also sold stock futures worth Rs 40 crore.

8:05 a.m.: The Sensex and Nifty are likely to open higher as indicated by the Nifty futures traded on the Singapore Stock Exchange. Nifty futures traded on the Singapore Stock Exchange also known as the SGX Nifty was up 0.24 per cent or 20 points at 8,504.

Meanwhile, Asian markets were trading on a mixed note. Hong Kong's Hang Seng advanced 0.3 per cent and Taiwan Weighted added 0.03 per cent. While, Japan's Nikkei fell 0.2 per cent and China's Shanghai Composite index was down 0.8 per cent.

Overnight, US stocks rose on Monday after strong economic data boosted the housing sector and as investors bought recently battered shares in biotech and media.

Housing stocks rose after data showed U.S. homebuilder sentiment rose in August to its highest since a matching reading almost a decade ago.

The Dow Jones industrial average rose 67.78 points, or 0.39 per cent, to 17,545.18, the S&P 500 gained 10.9 points, or 0.52 per cent, to 2,102.44 and the Nasdaq Composite added 43.46 points, or 0.86 per cent, to 5,091.70.