Blame it on China! Sensex plunges over 450 points

The India VIX (Volatility) index rose nearly 16% to 16.35. Out of 1,782 stocks traded on the NSE, 928 declined and 570 advanced today.

Circuit breakers were triggered on Shanghai & Shenzhen exchanges as CSI 300 fell 5% initially and then fell 7% to close for the day.  Stocks fell as manufacturing contracted for a fifth straight month and investors anticipated the end of a ban on share sales by major stakeholders.Under a new mechanism which is effective today, a move of 5% in the CSI 300 triggers a 15-minute halt for stocks, options and index futures, while a move of 7 percent close the market for the rest of the day. 

Indian manufacturers saw business conditions deteriorate at the end of 2015. Dipping from 50.3 in November to 49.1 in December, the seasonally adjusted Nikkei India Manufacturing Purchasing Managers’ Index (PMI) – a composite single-figure indicator of manufacturing performance – pointed to a deterioration in operating conditions across the sector, with the PMI posting below the no-change level of 50.0 for the first time since October 2013.
At 11:58 AM, the S&P BSE Sensex is trading at 25,703 down 458 points, while NSE Nifty is trading at 7,821 down 142 points.

The BSE Mid-cap Index is trading down 0.95% at 11,134, whereas BSE Small-cap Index is trading down 0.76% at 11,850.

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

GAIL, NTPC and Wipro are among the gainers, whereas Bharti Airtel, Adani Ports, Tata Motors, ICICI Bank, Hero MotoCorp, Axis Bank and Lupin are losing sheen on BSE.

The India VIX (Volatility) index rose nearly 16% to 16.35. Out of 1,782 stocks traded on the NSE, 928 declined and 570 advanced today.

A total of 85 stocks registered a fresh 52-week high in trades today, while eight stocks touched a new 52-week low on the NSE.

Indian rupee opened at 66.25/$ lower by 11 paise in early trade on Monday as against the previous close of 66.14/$. On macroeconomic side, output of core‐sector industries during November declined 1.3% on yoy basis. The weakness in number is attributed to dip in the output of steel, cement and crude oil.

On global front, China’s Caixin Manufacturing PMI for December declined to 48.2 from 48.6 in November. This represents the tenth consecutive monthly contraction. A reading below 50 denotes contraction. Meanwhile, China’s official manufacturing PMI reading for December was reported at 49.7. The difference between official and Caixin PMI is that government PMI covers only the large or state owned companies, while Caixin PMI encompasses smaller and medium‐sized enterprises.

IRB Infrastructure Developers Ltd rallied 8.2% to Rs.265 on BSE. The company have received the Letter of Award from Ministry of Road Transport & Highways, Govt. Of India for Construction, Operation and Maintenance of Zozila Tunnel including approaches on NH-1 in the State of Jammu & Kashmir on Design, Build, Finance, Operate & Transfer basis.

Ashok Leyland jumped 3% to Rs.91.65 on BSE. The company reported December total sales rise 31% yoy to 12,209 units while M&HCV sales were up 35% yoy at 9,758 units. This included growth of 35% in sales of M&HCVs and 18% growth in LCVs to 9,758 units and 2,451 units respectively. For the period April to December 2015, total sales grew 36% to 96,518 units over the corresponding period of previous year.

Eicher Motors climbed 2.6% to Rs. 17,801 after the company has reported total sales for December 2015 rose 41% to 40453 units compared to 28634 units in December 2014. This included 37475 units of models with engine capacity upto 350 cc and 2978 units of models with engine capacity exceeding 350 cc. Exports for December 2015 stood at 416 units.

Jai Corp galloped 14% to Rs.88.60 on BSE. Currently, the stock is trading 52-week high on BSE. The company experienced a spurt in volume by more than 1.05 times.

IDBI Bank slipped 2.3% to Rs.88 on BSE. The Government is unlikely to go for a strategic stake sale of IDBI Bank during the current fiscal year due to some procedural issues, as per media reports. Govt. of India has conveyed its approval to IDBI Bank to raise capital to the tune of Rs.3,771 crore, through QIP route. 

Big Trouble in Little China! Chinese woes drag Asian markets in red

A consecutive fall in manufacturing output since last five months is considered as the trigger for the Chinese collapse today.

Once again Chinese stock markets have hogged the headlines after authorities suspended trading initially for 15 minutes and then for the day after the Shanghai Composite Index (CSI 300) plunged more than 5% at around 11:00 am (IST) and 7% thereafter. The sharp fall in Chinese stocks and halt in trading, trigger widespread selling in other Asian markets, which eventually led to a free fall in all major Asian stock indices.

A consecutive fall in manufacturing output since last five months is considered as the trigger for the Chinese collapse today. The Chinese stock market authorities have introduced a new mechanism with effect from today itself. Under the new mechanism, the stock markets will halt trading for 15 minutes if more than 5% crash occurs. In case the index falls 7%, trading is halted for the day.

India’s BSE Sensex is trading 1.48% lower at 25,772.43 points. On the other hand, Nifty 50 crashed 1.52% to 7,842.25.

Among other Asian stock markets, Japan’s Nikkei 225 index is currently trading 3.15% lower at 18,453 points, Singapore’s Straits Times at 2,836 points (-1.65%), Hong Kong’s Heng Seng at 21,299.70 points (-2.89%), Taiwan’s Taiex at 8,114.26 points (-2.76%), South Korea’s Kospi index at 1,952.15 points (-2.04%), Singapore Nifty (SGX Nifty) is trading 1.35% lower at 7,842.50 points.

China slowdown! Tata Motors down 3%

Tata Motors has fallen on discouraging news from China which accounts for 25% of JLR’s revenue and 33% of operating profit.

Tata Motors Ltd stock was down by 3% at Rs.391. Most Sensex stocks have come crashing down due to a fall in global markets especially China which has hit the 7% lower circuit and is shut for the day. 

Tata Motors has fallen on discouraging news from China which accounts for 25% of JLR’s revenue and 33% of operating profit. 

Tata Motors continued to witness year-on-year growth in the M&HCV segment in December 2015, with a growth of 2%. 

Total sale of Tata Motors passenger and commercial vehicles (including exports) were at 39,973 vehicles, lower by 4%, over 41,734 vehicles, sold in December 2014. The domestic sale of Tata commercial and passenger vehicles for December 2015 were at 35,416 nos. lower by 6% over 37,776 vehicles sold in December 2014. 

Cumulative sales (including exports) for the fiscal at 364,946 nos., higher by 1% over 362,986 vehicles, sold last year.

The scrip opened at Rs. 400 and has touched a high and low of Rs. 400 and Rs. 390.4 respectively. So far 1789542(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 131063.75 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 605.57 on 03-Feb-2015 and a 52 week low of Rs. 279.15 on 29-Sep-2015. Last one week high and low of the scrip stood at Rs. 402.9 and Rs. 383 respectively.

The promoters holding in the company stood at 33.01 % while Institutions and Non-Institutions held 39.16 % and 8.38 % respectively.

The stock is currently trading above its 200 DMA.

China markets closed for day, after CSI 300 falls 7%

Chinese stock trading was halted for 15 minutes after the CSI 300 Index fell more than 5 percent.

Circuit breakers were triggered on Shanghai & Shenzhen exchanges as CSI 300 fell 5% initially and then fell 7% to close for the day.

Stocks fell as manufacturing contracted for a fifth straight month and investors anticipated the end of a ban on share sales by major stakeholders.

Under a new mechanism which is effective today, a move of 5% in the CSI 300 triggers a 15-minute halt for stocks, options and index futures, while a move of 7 percent close the market for the rest of the day.

The trigger seems to be China Caixin Manufacturing PMI for December which was lower than expectations at 48.2 as operating conditions faced by Chinese goods producers continued to deteriorate in December.

Production declined for the seventh time in the past eight months and data suggested that client demand was weak both at home and abroad, with new export business falling for the first time in three months in December.

Manufacturers continued to trim their staff numbers and reduce their purchasing activity in line with lower production requirements. Meanwhile, deflationary pressures persisted, as highlighted by further marked declines in both input costs and selling prices.

Ashok Leyland jumps 3% after Dec sales rises 31%

The company reported December total sales rise 31% yoy to 12,209 units while M&HCV sales were up 35% yoy at 9,758 units. This included growth of 35% in sales of M&HCVs and 18% growth in LCVs to 9,758 units and 2,451 units respectively.

Ashok Leyland jumped 3% to Rs.91.65 on BSE. The company's December total sales rose 31% yoy to 12,209 units while M&HCV sales were up 35% yoy at 9,758 units. This included growth of 35% in sales of M&HCVs and 18% growth in LCVs to 9,758 units and 2,451 units respectively. For the period April to December 2015, total sales grew 36% to 96,518 units over the corresponding period of previous year.

The scrip opened at Rs. 90.2 and has touched a high and low of Rs. 91.95 and Rs. 90.2 respectively. So far 3105129(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 25257.16 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 99.65 on 30-Nov-2015 and a 52 week low of Rs. 51.1 on 01-Jan-2015. Last one week high and low of the scrip stood at Rs. 90.5 and Rs. 87.65 respectively.

The promoters holding in the company stood at 38.82 % while Institutions and Non-Institutions held 31.69 % and 17.11 % respectively.

The stock is currently trading below its 50 DMA.

Change in circuit filter of 37 cos on BSE

Minda Industries and GM Breweries’ circuit filter haven been revised from 5% to 20%.

The Bombay Stock Exchange (BSE) has changed the circuit limit for as many as 37 companies.

Companies whose circuit filter have been revised from 10% to 20 % are: Spicejet, Everest Kanto, Genus Paper, Gammon India, Hov Services, Lanco Infratech, Majesco Ltd, Mukta Arts, Munjal Auto, Nelco Ltd, Next media, Omax Auto, Pressman Advertising, Sharon Bio, Skil infra, Subex, TVS Electronic and Butterfly Gandhimati.

Companies whose circuit filter have been revised from 5% to 10 % are: BLKashyap & Sons, Ginni Filaments, Manugraph India, Orient paper, Ortin Lab, Nirvikra Paper, Renuka Sugar, RPG Life Sciences, Stel Holdings, Trigyn Tech, Tara jewels, Bal pharma, Yuken India, Global Vectra, Mindtek and Raunaq EPC.

Besides, Minda Industries and GM Breweries’ circuit filter haven been revised from 5% to 20%. 

Eicher Motors climbs 2.6% after Dec motorcycle sales rises 41%

The company has reported total sales for December 2015 rose 41% to 40453 units compared to 28634 units in December 2014. This included 37475 units of models with engine capacity upto 350 cc and 2978 units of models with engine capacity exceeding 350 cc.

Eicher Motors climbed 2.6% to Rs. 17,801 after the company has reported total sales for December 2015 rose 41% to 40453 units compared to 28634 units in December 2014. This included 37475 units of models with engine capacity upto 350 cc and 2978 units of models with engine capacity exceeding 350 cc. Exports for December 2015 stood at 416 units.

The scrip opened at Rs. 17698 and has touched a high and low of Rs. 17974.45 and Rs. 17550.45 respectively. So far 32488(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 47153.74 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 21618.3 on 21-Jul-2015 and a 52 week low of Rs. 13930 on 27-Apr-2015. Last one week high and low of the scrip stood at Rs. 17690.25 and Rs. 16172 respectively.

The promoters holding in the company stood at 54.91 % while Institutions and Non-Institutions held 31.32 % and 13.77 % respectively.

The stock is currently trading below its 200 DMA.

Sterlite Grid commissions TBCB-based RAPP Transmission Project

The RAPP Transmission Project consists of laying a 200 Km, 400 KV Double Circuit Transmission Line passing through the states of Rajasthan and Madhya Pradesh.

Sterlite Grid, India’s largest private developer of independent power transmission systems,  has set a new benchmark by commissioning the Transmission Project to Rajasthan Atomic Power Project (RAPP) ahead of schedule. Since the implementation of the Tariff Based Competitive Bidding (TBCB) regime, this is the first time a power transmission line has been commissioned ahead of schedule.

Earlier this year, in order to promote early completion of transmission projects, the Ministry of Power issued an order allowing such projects to earn tariff from the date of actual commissioning. The RAPP Transmission Project will be the first in India to be eligible for early tariff.

The RAPP Transmission Project consists of laying a 200 Km, 400 KV Double Circuit Transmission Line passing through the states of Rajasthan and Madhya Pradesh. It will act as an inter-regional link to strengthen transmission systems associated with RAPP to exchange power between the Northern and Western Grids. The project was completed in less than 12 months from the start of construction and will directly benefit the states of Madhya Pradesh, Punjab and Haryana.

“We are proud to commission the RAPP Transmission Project ahead of schedule -- a first for the transmission projects awarded under Tariff Based Competitive Bidding. Sterlite Grid intends to set new benchmarks in the Indian power transmission sector by deploying cutting-edge technologies in construction and O&M to ensure world-class power delivery in the country,” said Pravin Agarwal, Chairman, Sterlite Grid.

The company is also the first Indian developer to deploy aerial technologies such as LiDAR survey and helicopter-aided construction in India, reducing the commissioning time. 

In September 2015, Sterlite Grid joined hands with Burns & McDonnell, a US-based global leader in T&D engineering, to introduce world-class engineering and construction methodologies in power transmission projects.

With the commissioning of the RAPP Transmission Project, Sterlite Grid has now commissioned four out of a portfolio of seven projects and operates ~2,900 Circuit Km of projects in eight Indian states. 

In addition, the Company’s ongoing projects in Purulia and Kharagpur (PKTCL), NRSS 29 and Maheshwaram (MTL) are on track and are also likely to be completed ahead of schedule.

IRB Infra rallies 8% after Jammu & Kashmir tunnel order

The company have received the Letter of Award from Ministry of Road Transport & Highways, Govt. Of India for Construction, Operation and Maintenance of Zozila Tunnel including approaches on NH-1 in the State of Jammu & Kashmir on Design, Build, Finance, Operate & Transfer basis.

IRB Infrastructure Developers Ltd rallied 8.2% to Rs.265 on BSE. The company have received the Letter of Award from Ministry of Road Transport & Highways, Govt. Of India for Construction, Operation and Maintenance of Zozila Tunnel including approaches on NH-1 in the State of Jammu & Kashmir on Design, Build, Finance, Operate & Transfer basis. 

The scrip opened at Rs. 269 and has touched a high and low of Rs. 269.3 and Rs. 262.15 respectively. So far 1689880(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 8605.25 crore.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 275.5 on 03-Feb-2015 and a 52 week low of Rs. 197.2 on 25-Aug-2015. Last one week high and low of the scrip stood at Rs. 249.1 and Rs. 239.5 respectively.

The promoters holding in the company stood at 57.79 % while Institutions and Non-Institutions held 35.93 % and 6.28 % respectively.

The stock is currently trading below its 50 DMA.

Hero Motorcorp December sales dips 5%

Hero MotoCorp Ltd. (HMCL), the world’s largest two-wheeler manufacturer, clocked 499,665 units of two-wheeler despatches in December 2015.

Hero MotoCorp Ltd. (HMCL), the world’s largest two-wheeler manufacturer, clocked 499,665 units of two-wheeler despatches in December 2015.

The company had sold 526,097 units in December 2014.

The calendar year 2015 marked several milestones in Hero MotoCorp’s journey towards being a global two-wheeler powerhouse.

Tata Motors, TCS, Hero MotoCorp, SpiceJet among 16 Stocks in focus today

Check out the companies which will be in focus during trade today based on recent and latest news developments.

Tata Motors: Tata Motors continued to witness year-on-year growth in the M&HCV segment in December 2015, with a growth of 2%. Total sale of Tata Motors passenger and commercial vehicles (including exports) were at 39,973 vehicles, lower by 4%, over 41,734 vehicles, sold in December 2014. 

TCS: Tata Consultancy Services has again began talks with Dell for its Perot IT business after a disagreement over price, according to reports. 

IDBI Bank: The Government is unlikely to go for a strategic stake sale of IDBI Bank during the current fiscal year due to some procedural issues, as per media reports.

Hero MotoCorp Ltd: Hero MotoCorp the world’s largest two-wheeler manufacturer, clocked 499,665 units of two-wheeler despatches in December 2015.  The company had sold 526,097 units in December 2014.

IRB Infrastructure Developers Ltd: The company have received the Letter of Award from Ministry of Road Transport & Highways (MORT&H), Govt. Of India for Construction, Operation and Maintenance of Zozila Tunnel including approaches on NH-1 (Srinagar - Sonmarg - Gumri Road) in the State of Jammu & Kashmir on Design, Build, Finance, Operate & Transfer (Annuity) basis (“the Project”).

Thomas Cook: Thomas Cook Ltd has announced that its Arm Quess Corp has completed acquisition of remaining 51% stake In MFXchange Holdings.

SML Isuzu: The company has reported 18.27% fall in December sales. The company has sold 877 vehicles during December, 2015 against 1073 vehicles sold in December, 2014, as per media reports.

Eicher Motors: Eicher Motors has reported 50% growth in its total sales at 4.5 lakh units for the calendar year 2015. 

SpiceJet Ltd: SpiceJet has announced that it is considering Embraer jets to expand its fleet, according to reports.

Sterlite Grid: Sterlite Grid has set a new benchmark by commissioning the Transmission Project to Rajasthan Atomic Power Project (RAPP) ahead of schedule. 

Coal India: Coal India reported said its production in December stood at 52.07 million tonnes (MT) as against the target of 51.08 MT for the month.

Somany Ceramics Ltd: Somany Ceramics Ltd has approved Issuance of Commercial Paper by the Company upto Rs. 25 Crores.

TVS Motor Company: TVS Motor Company has recorded 4% growth in sales during the month of December 2015, with total sales increasing from 194,481 units recorded in the month of December 2014 to 202,086 units in the month of December 2015.

Ashok Leyland: Hinduja group's flagship, Ashok Leyland saw December total sales rise 31% yoy to 12,209 units while M&HCV sales were up 35% yoy at 9,758 units. 

Canara Bank: Canara Bank has announced that as per the powers delegated by the Board of the Bank, the Bond Committee has decided to raise Basel III Compliant Tier-II Bonds amounting to Rs. 1500 Crore by way of Private Placement.

Kotak Mahindra Bank: Kotak Mahindra Bank Ltd has informed BSE that the Bank on January 01, 2016 has acquired 10,00,000 equity shares at Rs. 10/- each aggregating to Rs. 1 crore being 9.99% of the paid-up capital of Institutional investor Advisory Services India Limited.

Power Grid: The company has announced that Power Grid Vizag Transmission Limited, a wholly owned subsidiary of Power Grid Corporation of India Limited, secured though Tariff Based Competitive Bidding (TBCB) process has successfully charged the 1st element of the Project: Khammam - Nagarjunasagar 400kV D/C Transmission line on December 31, 2015, within the completion schedule specified.

State Bank of Mysore: The Bank has raised Rs. 300 crore of non-convertible, redeemable, unsecured, Basel III Compliant Tier 2 Bonds, for inclusion in tier 2 capital of the Bank, in the nature of debentures of face value of Rs. 10 lakhs each (“bonds”) at par aggregating Rs. 300 crore.

Sensex, Nifty to open on a weak note

Global cues are weak for now. Focus will be on how corporate earnings pan out in the coming weeks. Investors may do well to remain cautious at these levels after a strong recovery in last three weeks and adopt a stock-specific approach.

The main indices may have gained around 4% in the last couple of weeks even as it closed lower for the year but the start to this week appears to be lackluster. China Caixin Manufacturing PMI for Dec was lower than expectations at 48.2 as operating conditions faced by Chinese goods producers continued to deteriorate in December. Production declined for the seventh time in the past eight months and data suggested that client demand was weak both at home and abroad, with new export business falling for the first time in three months in December.

The outlook is a weak start. Global cues are weak for now. Focus will be on how corporate earnings pan out in the coming weeks. Investors may do well to remain cautious at these levels after a strong recovery in last three weeks and adopt a stock-specific approach.  The combined market valuation of eight of the top-10 most valued Indian companies surged up by Rs. 38,355.66 crore with Coal India and ONGC emerging as the biggest gainers.

Chief Economic Advisor Arvind Subramanian reportedly said that  India has emerged as the world's fastest growing economy notwithstanding global demand slowdown and four droughts. Arvind Subramanian said that there has been improvement in quality of spending toward capital, fiscal consolidation at central and state levels.

The Bombay Stock Exchange (BSE) will today auction investment limits for foreign investors to buy government debt securities worth Rs.7,396 crore.

Cement stocks will be in focus.  Average cement prices declined by 7.3% in December 2015 compared to the same month in the previous year mainly due to weak demand, says a research report by a leading Mumbai-based broking firm. Cement prices in the northern and western regions have witnessed maximum correction of 10-12 per cent on a year-on-year (YoY) basis.

Iran’s proposed increase in oil production after sanctions are removed will enter the market “gradually” and won’t pressure international crude oil prices, Iranian oil ministry said on Saturday. Iran has the potential to boost its oil production by 500,000 barrels a day within a week of sanctions being lifted, and by 1 million barrels shortly after, according to Shana news agency.

Orbit Corporation's dues worth INR 528 crore are in the process of being restructured, including Rs. 87 crore due to LIC Housing Finance since 2013, reports a financial newspaper. Orbit Corp’s overdue interest bill at the end of March 2015 was Rs. 262 crore. Its total debt at the end of March 2015 was Rs.950 crore.

The recent increase in excise duty on petrol and diesel - three in a row - will help the Government mop up an additional INR 10,000 crore in FY16.  The Government has raised excise duty on petrol and diesel three times in last two months and by seven times since November 2014.

A study by international real estate consultant JLL has named Delhi and Mumbai in the list of world's top-30 most powerful, productive and connected cities. Mumbai has been ranked 22nd while Delhi is placed at No. 24.

India's foreign exchange reserves rose by $ 943.4 mn to $ 352.050 bn during the week ended December 25, according to RBI data.

Capital markets regulator Sebi directed Astha Green Energy Ventures India and its directors to refund Rs. 43.77 crore to investors along with an interest of 15%, says report.