Tuesday 20 December 2016

Indices manage to stay in the positive range

The S&P BSE Sensex was trading at 26387.55 up 12.85 (0.05%) while the Nifty was trading at 8104.20.

Tata Group stocks are being closely watched after Cyrus Mistry announced his resignation from the boards of Tata Motors, Indian Hotels and four other companies. Tata Power is among the top gainers in the trade so far. Tata Motors, Tata Motors DVR, Tata Power, TCS stocks up. 

A total of 11 stocks are at a 52-week high in trade today, while 16 stocks, including Laurus Lab, Tree House and TV Today, have so far touched a new 52-week low.

Out of 1883  stocks traded on the NSE, 784  declined, 727  advanced and 372  remained unchanged today.

The BSE Mid-cap Index is trading at 12121.49 down by 52.55 points , whereas BSE Small-cap Index is trading at 12061.25 up 3.56%.

Asian indices showed mixed results as Nikkei 225 was trading at 19,504.22, and Straits Times at 2,917.85, while Hang Seng  traded in red at 21,736.

Bank of Japan, on expected lines, has kept policy rates unchanged; says economy will witness moderate growth and will persist with asset purchasing till Japan reaches 2 pc inflation.

Strength in US$, rise in bond yields and weakness in emerging markets were the theme of the last 2 months of 2016. Gold prices continued to struggle as coupled with slowdown in India the strength in the US$ is another negative going forward into 2017.

For the first time in nearly 150 years, India surpassed Britain as far as the size of the economy is concerned. India is now the fifth largest economy with US $ 2.30 trillion and the ones ahead are USA, China, Japan and Germany. The fall in the pound coupled with Brexit issues enabled India to overtake the UK GDP much earlier.

Benchmark indices of the US ended on a higher side on Monday although the volumes involved were low, also the market investors bought into underperfoming sectors. With the ongoing political tensions between the US and China, the markets were not heavily impacted as the indices ended the trading day close to their respective all-time highs. 

The INDIA VIX is down 3.79% to 14.2750.
 
Buzzing Stocks:
 
Govt may announce winner of Rs 60,000 cr defence order today. Titagarh Wagon very interesting contender along with Tata Power.
 
Cos to focus: L&T, M&M, Pipavav, TaMo + Bharat Forge, Tata Power + Titagarh wagon.
 
Lupin announced the launch of a generic version of its voriconazole tablets and oral suspension used for the treatment of fungal infections in children.
 
Cipla has received final approval from the US health regulator for lipid regulating Fenofibrate tablets.
 
Steel Authority of India Ltd (SAIL) is in talks with Japan's Nippon Steel and Sumitomo MetalCorp and Kobe Steel Ltd for potential technical agreements to help the firm expand its global footprint.
 
The board of directors of Pennar Industries Ltd is evaluating the merger of its subsidiary Pennar Enviro Ltd into Pennar Industries.
 
Stung by fluctuation in price of coking coal, Steel Authority of India Limited (SAIL) is desperately seeking an alternative solution to reduce its dependence on imports.
 
The government over the next few days will examine the status of 72 coal blocks allocated either through allotment or auction route to companies like NTPC, JSW Steel, Hindalco and SAIL.
 
Jindal Steel and Power Ltd (JSPL) has lined up Rs 80 bn additional investment for its Odisha operations. The money will be spent on the addition of a blast furnace to take its Angul steel plant capacity to 6mt, setting up of a cement plant, laying of the slurry pipeline to carry iron ore from mines to the steel plant and setting up of a pellet plant.
 
Divi's Laboratories Limited has chalked out alternate plans to keep the capacity expansion going after the Rs 5 bn greenfield project near Kakinada ran into rough weather, first by the local protests and later by an interim order issued by Hyderabad high court pertaining to the project land. 
 
Glenmark is developing specialty respiratory and dermatology products as a part of its long-term growth strategy.

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