ITC, Maruti Suzuki, ICICI Bank top Nifty50 gainers

The broader market is out-performing the BSE headline index; the Midcap has gained over 2.52 percent to 9,817 and the Smallcap index has advanced 2.71 percent to 9,807.

The Indian stock market rallied on the back of firm global markets. Today, top gainers from NSE are ITC, Maruti Suzuki, ICICI Bank, Hero MotoCorp, Vedanta, Tata Motors, L&T, UltraTech Cement, TCS and Adani Ports.

The market continues to trade on a gung-ho note, on the back of strong gains in – FMCG, IT, Auto, Banking, Capital Goods, Consumer Durables and Industrial shares.

The broader market is out-performing the BSE headline index. The Midcap has gained over 2.52 percent at 9,817 and the Smallcap index has advanced 2.71 percent at 9,807.

The Sensex is now trading 710 points higher, or up 3%, to 23,712.04 while the Nifty rises 213.55 points, or 3.06%, to 7,201. 

ITC on fire along with tobacco stocks despite excise duty smoke in budget

On Monday, tobacco shares had recovered significantly after the early jolt.

Led by ITC Ltd, stocks of tobacco product manufacturers and cigarette makers are trading higher with impressive gains despite the Finance Minister Arun Jaitley on Budget day proposing 10-15% hike in excise duty on tobacco products .
On Monday also, the tobacco shares had recovered significantly after the early jolts.

ITC Ltd is currently trading at Rs. 324.6, up by Rs. 28.8 or 9.74% from its previous closing of Rs. 295.8 on the BSE. The scrip opened at Rs. 305 and has touched a high and low of Rs. 326.5 and Rs. 302 respectively. So far 35994179(NSE+BSE) shares were traded on the counter.

Godfrey Phillips India Ltd is currently trading at Rs. 1158.5, up by Rs. 82.6 or 7.68% from its previous closing of Rs. 1075.9 on the BSE. The scrip opened at Rs. 1082.5 and has touched a high and low of Rs. 1168 and Rs. 1079 respectively. So far 327748(NSE+BSE) shares were traded on the counter.

VST Industries Ltd is currently trading at Rs. 1,610.75, up by Rs. 75.75 or 4.93% from its previous closing of Rs. 1535 on the BSE. The scrip opened at Rs. 1523.5 and has touched a high and low of Rs. 1575 and Rs. 1517.5 respectively. So far 18711(NSE+BSE) shares were traded on the counter.

Golden Tobacco Ltd is currently trading at Rs. 36.4, up by Rs. 0.9 or 2.54% from its previous closing of Rs. 35.5 on the BSE. The scrip opened at Rs. 37 and has touched a high and low of Rs. 37.2 and Rs. 34.95 respectively. So far 7959(NSE+BSE) shares were traded on the counter.

Kothari Products Ltd is currently trading at Rs. 162.6, up by Rs. 3.7 or 2.33% from its previous closing of Rs. 158.9 on the BSE. The scrip opened at Rs. 161.9 and has touched a high and low of Rs. 168 and Rs. 160 respectively. So far 10971(NSE+BSE) shares were traded on the counter.

What Pharmaceuticals Sector’s view on Union Budget 2016-17

An amount of Rs. 850cr allocated over next few years for several animal wellness programs

Weighted tax deduction on R&D will be reduced from current 200% to 150% from FY18 and to 100% from FY21. The reduction of benefits on account of R&D was anticipated to kick in from current year (FY17). Although a delay in phasing out is better than anticipated, this is still a long-term negative for the sector. 

3,000 medical stores will be opened under Pradhan Mantri Jan Aushadhi Yojana to make generic medicines available. Pharma companies market branded medicines in India and improving access to generic medicines by the government will directly compete against branded players. This is a slight negative for the sector.  Higher impact for companies which have large share of primary care and which don’t charge a price premium.

Benefit of section 10AA to new SEZ units will be available to those units which commence activity before FY20. Dr. Reddy’s, Aurobindo, and Divis are setting up new manufacturing facilities in SEZ areas.


Pharmaceuticals – Neutral

Key announcement	Impact
Reduce weighted R&D deduction to 150% from April 2017 and 100% from April 2020	Negative for all pharma companies
10% tax rate for global income accrued from patent developed and filed in India	To benefit players like Dr Reddys' which can commercialize patents on global basis
Customs duty on import of Molybdenum-99 has been removed	Positive for radio pharma players like Jubilant and Poly Medicure
An amount of Rs. 850cr allocated over next few years for several animal wellness programs	Positive for animal health players like SeQuent Scientific and Omkar Speciality
Health cover of Rs.1lakh for BPL families with additional Rs.30,000 cover for senior citizens	Positive for healthcare providers like Apollo as it expands coverage market

Persistent partners Salesforce for Health Cloud launch

Persistent Systems joined Salesforce as a Health Cloud launch partner at the Healthcare Information and Management Systems Society Conference at Venetian Convention Center in Las Vegas.

Persistent Systems joined Salesforce as a Health Cloud launch partner at the Healthcare Information and Management Systems Society Conference at Venetian Convention Center in Las Vegas. The tech firm announced its support for the new Salesforce Health Cloud, which is generally available for purchase today. Health Cloud gives healthcare providers a platform to make smarter care decisions, engage with patients across their caregiver networks and manage patient data. 

In partnership with Salesforce, Persistent Systems is launching new solutions for healthcare providers to transform the experience of their customers and members, which improve health care providers’ outreach effectiveness and improve care team productivity, communication and collaboration.

The announcement also coincides with the appointment of healthcare industry leader Jim Rogers, RN, BSN as director of Healthcare Solutions at Persistent Systems. Formerly director at CenturaConnect at Centura Health, Colorado’s largest healthcare provider. In his role, he will be instrumental in helping other healthcare organizations embrace Persistent Systems and Salesforce Health Cloud as a solution for their healthcare and patient engagement needs.

Commenting on the partnership, Jim Rogers, RN, BSN, Director of Healthcare Solutions at Persistent Systems said, “We are proud to extend our support for the new Salesforce Health Cloud. Our ability to deliver more unified information, in one system, with much greater levels of interaction is where healthcare is finally moving. Between Salesforce and Persistent Systems we can create a patient-first solution which delivers more productive and efficient communication for all involved in the patient’s care.”

Joshua Newman, MD, Chief Medical Officer and GM of Salesforce Healthcare and Life Sciences said, “We live in the age of the customer, and patients now expect personalized and engaging experiences with their healthcare providers.  Health Cloud is all about building stronger patient relationships, and Persistent is a valuable part of our journey towards creating a modern healthcare platform for patients, doctors, and everyone else involved in care.”

Nifty trades above 7150 mark

The BSE Mid-cap Index is trading up 1.74% at 9,741, whereas BSE Small-cap Index is trading up 1.92% at 9,732. ITC, ICICI Bank, Axis Bank, Infosys, Wipro, Tata Motors and Adani Ports are among the gainers, whereas Bharti Airtel, ONGC, HUL, Dr.Reddy's, HDFC and Cipla are losing sheen on BSE

At 11:42 AM, the S&P BSE Sensex is trading at 233,422 up 420 points, while NSE Nifty is trading at 7,144 up 157 points.

The BSE Mid-cap Index is trading up 1.74% at 9,741, whereas BSE Small-cap Index is trading up 1.92% at 9,732.

ITC, ICICI Bank, Axis Bank, Infosys, Wipro, Tata Motors and Adani Ports are among the gainers, whereas Bharti Airtel, ONGC, HUL, Dr.Reddy's, HDFC and Cipla are losing sheen on BSE.

Some buying activity is seen in FMCG, IT, banking, auto, realty, power and utilities sectors on BSE.

The INDIA VIX is down 6.42% at 18.8625. Out of 1,785 stocks traded on the NSE, 228 declined, 1,253 advanced and 304 remained unchanged today.

A total of eight stocks registered a fresh 52-week high in trades today, while 46 stocks touched a new 52-week low on the NSE.

The Indian rupee opened higher by 17 paisa at 68.26/$ on Tuesday as against previous close of 68.43/$. On Monday, rupee rebounded strongly against the greenback, influenced by the optimism emanating from the Union Budget for FY2016‐17. In international markets, US dollar strengthened against Euro after Eurozone inflation numbers revealed no inflationary pressure. February CPI fell 0.2% on yoy basis, while core CPI was up by only 0.7%, well below estimates.


ITC jumped 8% to Rs.319 on BSE. FM Arun Jailtey announcement to hike excise duty on most tobacco products by 10-15%. According to media reports, the brokerage upgraded the stock to 'buy' as the hike in excise duty was less than expected.

Axis Bank climbed 3.2% to Rs.387.10 on BSE. The bank has informed BSE that on February 29, 2016, the Bank has purchased 9,57,48,762 shares of face value of Rs. 10/- each, or 4.99% equity stake, in Max Life Insurance Company Limited ("MLIC") from Max Financial Services Limited ("MFSL"), formerly known as Max India Limited, and Mitsui Sumitomo Insurance Company Limited ("MSI") for a total cash consideration at par (Rs. 10/- per share) of Rs. 95.75 crores.

BEML soared 2.3% to Rs.971 on BSE. The company has bagged the prestigious order valued at Rs. 900 crore for the supply of Metro Coaches to Kolkata East-West Metro Line.

IDBI Bank zoomed 2.6% to Rs.59.95 on BSE. The stock has rallied for the second consecutive session after the Union Finance Minister said in his Budget 2016 speech that the government has kept the option open for reducing its stake in the bank to below 50%.
Dhunseri Petrochem rallied 3% to Rs.74.80 after it signed a 50:50 joint venture partnership with  Thailand based Indorama Ventures Public Company Limited to manufacture and sell PET resins for Indian domestic markets and for exports. 


Vedanta zoomed 2.7% to Rs.72.80. The company has informed BSE that the Baghmara Gold block in the State of Chhattisgarh (6.08 sq.km) was put on auction as composite licence (Prospecting License cum Mining Lease). The Company (Vedanta Limited) participated in the forward auction on February 26, 2016 after being technically qualified in an e-auction has been declared as the successful bidder for Gold Mines at royalty @12.55% of value of mineral despatched. The winning bidder has to submit a performance bank guarantee of Rs 1.60 crores and invest in exploration. The block requires extensive exploration and the process will commence in due course. 

Axis Bank climbs 3.2% on stake buy in Max Life Insurance

The bank has bought 4.99% stake in Max Life Insurance for Rs 95.75 crore. The bank now owns 5.99% stake in Max life Insurance.

Axis Bank climbed 3.2% to Rs.387.10 on BSE. The bank has informed BSE that on February 29, 2016, the Bank has purchased 9,57,48,762 shares of face value of Rs. 10/- each, or 4.99% equity stake, in Max Life Insurance Company Limited ("MLIC") from Max Financial Services Limited ( "MFSL"), formerly known as Max India Limited, and Mitsui Sumitomo Insurance Company Limited ("MSI") for a total cash consideration at par (Rs. 10/- per share) of Rs. 95.75 crores.

The scrip opened at Rs. 379.5 and has touched a high and low of Rs. 389.9 and Rs. 379.5 respectively. So far 6000016(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 89336.56 crore.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 655.35 on 04-Mar-2015 and a 52 week low of Rs. 366.65 on 18-Jan-2016. Last one week high and low of the scrip stood at Rs. 399 and Rs. 373.7 respectively.

The promoters holding in the company stood at 29.91 % while Institutions and Non-Institutions held 56.5 % and 10.04 % respectively.

The stock is currently trading above its 200 DMA.

Power-puff! ITC jumps 8%

FM Arun Jailtey announced to hike excise duty on most tobacco products by 10-15%.

ITC jumped 8% to Rs.319 on BSE. FM Arun Jailtey announcement to hike excise duty on most tobacco products by 10-15%. According to media reports, the brokerage upgraded the stock to 'buy' as the hike in excise duty was less than expected. 

The scrip opened at Rs. 305 and has touched a high and low of Rs. 322.6 and Rs. 302 respectively. So far 24700551(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 237844.18 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 409.7 on 28-Feb-2015 and a 52 week low of Rs. 268 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs. 301.5 and Rs. 268 respectively.

The promoters holding in the company stood at 0 % while Institutions and Non-Institutions held 55.93 % and 43.82 % respectively.

The stock is currently trading below its 200 DMA.

Aurobindo Pharma gets USFDA nod for non-aspirin pain reliever

The approved ANDA is bio-equivalent and therapeutically equivalent to the reference listed drug product (RLD) Acetadote® Injection, 6 g/30 mL, of Cumberland Pharmaceuticals, Inc

Aurobindo Pharma Ltd has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Acetylcysteine Injection, 6g/30 mL (200 mg/mL) single-dose vials. The product is expected to be launched in Q1 FY16-17.

The approved ANDA is bioequivalent and therapeutically equivalent to the reference listed drug product (RLD) Acetadote® Injection, 6 g/30 mL, of Cumberland Pharmaceuticals, Inc.

Acetylcysteine Injection is an antidote for acetaminophen (non-aspirin pain reliever or analgesic) overdose indicated to prevent or lessen hepatic injury after ingestion of a potentially hepatotoxic quantity of acetaminophen. The approved product has an estimated market size of US$ 28 million for the twelve months ending December 2015 according to IMS.

This is the 26th ANDA (including two tentative approvals) to be approved out of Unit IV formulation facility in Hyderabad, India used for manufacturing general injectable products. Aurobindo now has a total of 242 ANDA approvals (207 Final approvals including 10 from Aurolife Pharma LLC and 35 Tentative approvals) from USFDA.

Aurobindo Pharma Ltd is currently trading at Rs. 665.25, up by Rs. 10.1 or 1.54% from its previous closing of Rs. 655.15 on the BSE.

The scrip opened at Rs. 656 and has touched a high and low of Rs. 671.5 and Rs. 646.25 respectively. So far 1755459(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 38314.45 crore.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 891.5 on 30-Dec-2015 and a 52 week low of Rs. 508 on 28-Feb-2015. Last one week high and low of the scrip stood at Rs. 675 and Rs. 582 respectively.

The promoters holding in the company stood at 53.9 % while Institutions and Non-Institutions held 35.24 % and 10.86 % respectively.

The stock is currently trading above its 100 DMA.

Budget impact: Positive for Banks, NBFCs but unchanged allocation for re-capitalisation to hit PSU banks

Positive for the sector in general as this would keep government's market borrowings in check and encourage RBI to ease rates.

Unchanged allocation has been made for re-capitalisation of banks in FY17 and over the medium-term. The Government’s language on extending further support remains constructive but delayed action could increase re-capitalisation requirement significantly. Introduction of new bankruptcy code would be positive in quicker resolution of distressed loans, however, the benefits are expected to accrue over long-term. Bank Board Bureau likely to be implemented in FY17 but little detail provided so far on the roadmap for implementation.  State owned banks remain as key instrument for achieving government’s financial inclusion plans and delivering rural credit.
All state-owned banks could get hurt.

BFSI/Exchanges – Positive

Key Announcement	Impact
Retention of Fiscal Deficit target of 3.5% for FY17	Positive for the sector in general as this would keep government's market borrowings in check and encourage RBI to ease rates
No increase in FY17 re-capitalisation committment of Rs. 25,000cr for PSU Banks	Negative for PSU Banks; more so for smaller banks having very weak capital position
Bank Board Bureau to be operationalized during FY17 and a roadmap for consolidation of PSU Banks to be spelt out	Positive for PSU Banks; especially for the smaller PSBs as they could be merged with relatively stronger large PSB
Debt Recovery Tribunals will be strengthened for speedier resolution of stressed assets	Positive for the sector, especially for PSU Banks
Government to take forward the process of transformation of IDBI Bank and would also consider the option of reducing its stake to below 50%.	Positive signaling impact for beleaguered PSU Banks
NBFCs to be eligible for deduction to the extent of 5% of income in respect of provision for bad and doubtful debts	Positive for all NBFCs; would be earnings accretive
Multiple measures and incentives announced to spur development of affordable housing	Positive for Housing Finance Cos such as DHFL, LIC HF, Repco, Can Fin, etc
For first home buyers, additional interest deduction of Rs 50,000 per annum for loans up to Rs. 35 lakh sanctioned during the next financial year provided the value of the house does not exceed Rs 50 lakh.	Positive for Housing Finance Cos in general
Credit target under Pradhan Mantri Mudra Yojana (scheme launched to benefit small/micro entrepreneurs) increased significantly to Rs. 180,000cr for FY17	Positive for Banks, NBFCs and MFIs having exposure to Micro & Small Enterprise lending
Allocations materially raised to various schemes focused on farm, rural and social sectors	Positive for NBFCs having higher exposure to rural lending  such as Mahindra Finance, Magma, SCUF, etc
A number of measures will be undertaken to facilitate deepening of corporate bond market	Positive for NBFCs; could help in reducing cost of funds in the longer term
Enabling the sponsor of an ARC to hold up to 100% stake in it and permit non-institutional investors to invest in securitization receipts	Positive for the Banking sector as a whole as ARCs can play a larger role in tackling stressed assets in the system
100% FDI permitted in ARCs through automatic route. FPIs allowed to invest up to 100% of each tranche in securities receipts issued by ARCs subject to sectoral caps	Could increase the number of ARCs in the country which can help banks in offloading stress
Foreign investment up to 49% allowed in Insurance sector via the automatic route	Positive for Reliance Capital, Max India, Bajaj Finserve, ICICI Bank, Kotak Bank, HDFC Ltd., Cholamandalam Invt, etc

Sensex jumps over 500 points

The BSE Mid-cap Index is trading up 1.11% at 9,681, whereas BSE Small-cap Index is trading up 1.22% at 9,665. Some buying activity is seen in FMCG, IT, banking, auto, realty, power and utilities sectors, while consumer durables sector is showing weakness on BSE

 At 10:05 AM, the S&P BSE Sensex is trading at 233,528 up 526 points, while NSE Nifty is trading at 7,143 up 156 points.

The BSE Mid-cap Index is trading up 1.11% at 9,681, whereas BSE Small-cap Index is trading up 1.22% at 9,665.

ITC, ICICI Bank, Axis Bank, Infosys, Wipro, Tata Motors and Adani Ports are among the gainers, whereas Bharti Airtel, ONGC, HUL, Dr.Reddy's, HDFC and Cipla are losing sheen on BSE.

Some buying activity is seen in FMCG, IT, banking, auto, realty, power and utilities sectors, while consumer durables sector is showing weakness on BSE.

The INDIA VIX is down 1.90% at 19.7725. Out of 1,757 stocks traded on the NSE, 334 declined, 993 advanced and 430 remained unchanged today.

A total of four stocks registered a fresh 52-week high in trades today, while 26 stocks touched a new 52-week low on the NSE.

The Indian rupee opened higher by 17 paisa at 68.26/$ on Tuesday as against previous close of 68.43/$. On Monday, rupee rebounded strongly against the greenback, influenced by the optimism emanating from the Union Budget for FY2016‐17. In international markets, US dollar strengthened against Euro after Eurozone inflation numbers revealed no inflationary pressure. February CPI fell 0.2% on yoy basis, while core CPI was up by only 0.7%, well below estimates.

The big event is now behind us and what lies ahead is hope that GST will sooner than later get passed and that the RBI may get into action and lower rates. With none of the feared negatives making it into the Union Budget (no increase in time frame for long term capital gains or super-rich tax or hike in basic excise), it remained more of a neutral event. On the face of it, there’s nothing fundamentally wrong about the FM’s Budget that rests on not one, not two but nine pillars viz agriculture, rural populace, social welfare including healthcare, education, skill development & employment creation, infrastructure, financial reforms, fiscal prudence, tax reforms and ease of doing business. The silver lining, however, was that the fiscal deficit target of 3.9% was met and target of 3.5% has been maintained for FY17. This raises expectations of a rate cut from the RBI. The two other big positives are the Rs2 lac crore capital expenditure on roads and railways and continued flow of funds and autonomy from Centre to State.

Auto numbers and PMI manufacturing data will be eyed besides continued dissecting of the budget. Global cues are not helping really as Asian indices are mixed with Nikkei lower and Shanghai higher. After the close of trade in Shanghai, the People’s Bank of China cut its reserve-requirement ratio (RRR). US stock indices ended lower on Monday with selling getting accelerated in the final couple of hours of the session. Dow lost more than 100 points. S&P 500 dropped 16 points. Nasdaq lost 33 points. The Dow posted its first monthly gain since November. The S&P 500 and the Nasdaq posted three straight monthly declines for the first time since 2011. Nymex crude oil futures jumped amid continued media reports of an impending production freeze.