Tuesday, 3 January 2017

Sensex ends 48 points higher; FMCG, Banking stocks lead

The benchmark equity indices closed higher as banks recovered from the previous session's losses on hopes of a pickup in credit growth following cuts in lending rates. While the indices fluctuated between gains and losses through the session, the market breadth remained firmly in favour of the buyers.

Finally, the BSE Sensex ended with a gain of 48 points at 26,643. It opened at 26,616, touched an intra-day high of 26,724 and low of 26,488.

The NSE  NIFTY closed with a gain of 13 points at 8,192. It opened at 8,196, hit a intra day high of 8,219 and low of 8,149.

Sentiments got some support after Union Finance Minister Arun Jaitley expressed hope that Goods and Services Tax (GST) will be implemented in 2017 and a digitised economy will be the future of India. However, gains were limited after a government report showed that Core sector output in the month of November slowed down to 4.9% from 6.6% in October and 5.01% in September, mainly due to decline in production of crude oil and natural gas.

Meanwhile, investors keeping an eye on the GST Council meeting, to arrive at a consensus on contentious issues, including dual administrative control and inter-state supply.

On the economy front, the next Parliament session is likely to start early from January 31 so that the Budget can be presented on February 1, after a meeting of Cabinet Committee on Political Affairs (CCPA).

Asian stocks began 2017 on a mixed note after most regional markets reopened post the New Year holiday. China's Caixin Manufacturing Purchasing Managers' index (PMI) rose 51.9, compared to 50.9 in November on the back of increased demand. China's Shanghai Composite and Hong Kong's Hang Seng index also added 1% and 0.6%, respectively, while Japan was closed for an extended New Year holiday.

European stocks rose on Tuesday. The FTSE 100 and DAX have gained 0.5% each, while the CAC 40 is up 0.54%.

Some buying is observed in media, banking, metal, FMCG and financial services sectors while IT and auto stocks are showing weakness on NSE. The mid-cap and smallcap stocks representative indices on the BSE surged by 0.6% and 1% respectively.

Among the 50 stocks of the Nifty, Power Grid, Coal India, BHEL, Yes Bank, Axis Bank, Zee, Gail and ICICI Bank were among the gainers, whereas Bharti Airtel, Idea Cellular, Hero MotoCorp, Tata Motors, UltraTech Cement and Bosch were among the losers today.

The India VIX (Volatility) index was up 0.8% to 15.96. Out of 1,893 stocks traded on the NSE, 483 declined and 1,135 advanced today.

The rupee was trading down by 8 paise at 68.30 per US dollar.

Hero MotoCorp slipped 1.4% on the BSE. The company sold a record 67,62,980 units of two-wheelers in the period January-December 2016, translating into a growth of 4.3% over the previous calendar year (2015) when the company had sold 64,86,103 two-wheeler units.

Bajaj Hindusthan Sugar gained 2.2%. The company said that its board, at its meeting held January 2, considered seeking necessary approval of shareholders by way of postal ballot for sale of co-generation business comprising of power generation facility aggregating to 449 MW, in a BSE Filing.

Aban Offshore rose 4.6%. The company announced the completion of sale of 59% equity shares held by Aban Offshore in Aban Green Power and Radhapuram Wintech - subsidiaries of Aban Offshore. The company also completed the transaction for acquisition of 49% equity shares in Aban Drilling Services.

Titan Company zoomed 4.5% on the BSE. The company said that Q3 December 2016 started off on a high of the festive season and long awaited resurgence of the consumer sentiment.

Infosys fell 1% Rs 995 on the BSE. The recent correction in Infosys was led by Chief, Vishal Sikka’s first address of calendar year 2017, wherein he cued towards the difficulties the company would face in automation going forward and cautioned the employees against lacklustre attitude displayed by them. He expects employees to work beyond their scope to deliver the tasks.

A total of 32 stocks registered a fresh 52-week high in trade today, whereas seven stocks touched a new 52-week low on the NSE.

Sensex, Nifty rally; Railway stocks gain

The Indian stock market declined for a second time in as many sessions as investors sold shares of automakers, lenders and technology companies. The NIFTY came under pressure as it approached its crucial resistance level of 8,200, weighed down by losses in IT, banks, and auto stocks. 

At 12:18 PM, the S&P BSE SENSEX is trading at 26,620 up 25 points, while NSE Nifty is trading at 8,208 up 29 points.

The BSE Mid-cap Index is trading up 0.51% at 12,193, whereas BSE Small-cap Index is trading up 0.79% at 12,287.

Power Grid, Tata Motors, Hindalco, Tata Motor DVR and Tata Power are among the gainers, whereas Bank of Baroda, Hero MotoCorp, Infosys, Wipro and SBI are losing sheen on NSE.

A total of 27 stocks registered a fresh 52-week high in trade today, while six stocks touched a new 52-week low on the NSE.

Out of 1,892 stocks traded on the NSE, 368 declined, 1,200 advanced and 324 remained unchanged today.

Some buying is observed in banking, metal, media and financial services sectors while IT and auto stocks are showing weakness on NSE.

The INDIA VIX is up 0.63% at 15.93.

Hero MotoCorp fell 1% after the company reported 34% decline in its December sales to 3.30 lakh units against 4.99 lakh units a year ago.

MEP Infrastructure Developers Limited has received Letter of Approval (LoA) from National Highways Authority of India (NHAI) for the collection of user fee for ‘BRIJGHAT FEE PLAZA’ at 88.5 for the section from 58 km to 93 km (Hapur-Garhmuketeshwar Section) of National Highway No. 24 in the state of Uttar Pradesh. The stock is trading 4% higher on the BSE.

Sugar stocks are trading higher for the third straight trading session. ICRA believes that domestic sugar consumption is likely to outpace domestic production for the second successive year in FY2017, given the lower sugar production in the major states of Maharashtra and Karnataka.

Dwarikesh Sugar Industries Ltd is currently trading at Rs 354.85, up by Rs 6.35 or 1.82% from its previous closing of Rs 348.5 on the BSE. The scrip opened at Rs 351.9 and has touched a high and low of Rs 364.5 and Rs 349.15 respectively. So far 1092942(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 656.23 crore.

Dalmia Bharat Sugar & Industries Ltd is currently trading at Rs 145, down by Rs 2.25 or 1.53% from its previous closing of Rs 147.25 on the BSE. The scrip opened at Rs 149.4 and has touched a high and low of Rs 151.8 and Rs 143.55 respectively. So far 312451 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 1191.99 crore.

Bajaj Hindusthan Sugar Ltd is currently trading at Rs 15.24, up by Rs 0.46 or 3.11% from its previous closing of Rs 14.78 on the BSE. The scrip opened at Rs 15 and has touched a high and low of Rs 15.39 and Rs 15 respectively. So far 2781618 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 1675.4 crore.

Banks stocks are expected to be under pressure in 2017 for several reasons beyond NPAs. The fact that they are over owned is one the reasons the Banking stocks may face some pressure.

However the Banking stocks across the board are gaining in Tuesday’s session.

Yes bank, Axis Bank, Canara Bank, PNB, Indusind Bank and ICICI Bank are all up in the first half of the trading session.

Banking stocks are the flag  bearers of  the recovery in the markets, which are struggling to inch up in the green and stay there.

The Bank Nifty is trading above crucial 18000 levels and is trading in green, up by about 0.51%.

HDFC Bank is the only bank in the Bank Nifty basket that is trading in red, down by almost 0.27%.

Yes Bank is the best gainer in the lot, trading up by more than 2 per cent on an intraday basis.

Gokaldas Exports Ltd is currently trading at Rs 68.45, up by Rs 3.7 or 5.71% from its previous closing of Rs 64.75 on the BSE. The stock rallied for sixth straight day and jumped over 15% in the last 5 tradings sessions.

Panacea Biotec, one of India’s leading research based Biotechnology company, has ensured increased availability of the life saving drug, Cilamin 250 (D-Penicillamine IP 250 mg) capsules for the treatment of Wilson’s disease in India. The stock rallied 7%.

Opening Bell - Sensex, Nifty flat in early trade

At 9:15 AM, the S&P BSE Sensex is trading at 26,617 up 22 points, while NSE Nifty is trading at 8,184 up mere five points.

India’s core infrastructure sectors during grew 4.9% (yoy) in November, which again was slower than the 6.6% in the previous month. The lower base effect, improvement in coal output and rise in electricity generation kept the numbers healthy for now. On the bourses, the banking index fell over a percent on concerns that a cut in lending rates would hurt their bottom lines. Auto stocks swung to their December sales beat with Bajaj Auto falling and Maruti and M&M rising on better numbers.

Crude has clocked in some gains. The rupee may remain under pressure. Bitcoin rose above $1,000 for the first time in three years.

Asian indices opened positive as the 1st day of New Year trade saw optimism across the board as strong data overnight from Europe saw indices hit new highs. With most Asian indices ex Japan under performing in the last 2 months the pull back could be sharper than expected. Bond yields softened while both oil & US$ rose indicating the risk on trade is back.