HCC surges on bagging order worth Rs 393.08 crore

Hindustan Construction Company (HCC) is currently trading at Rs. 28.40, up by 1.65 points or 6.17% from its previous closing of Rs. 26.75 on the BSE. The scrip opened at Rs. 27.75 and has touched a high and low of Rs. 29.25 and Rs. 27.55 respectively. So far 852564 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 49.00 on 01-Jul-2014 and a 52 week low of Rs. 11.11 on 18-Oct-2013. Last one week high and low of the scrip stood at Rs. 31.50 and Rs. 26.60 respectively. The current market cap of the company is Rs. 1837.38 crore. The promoters holding in the company stood at 43.51% while Institutions and Non-Institutions held 16.03% and 40.45% respectively. Hindustan Construction Company (HCC) has been awarded Rs 393.08 crore road project by the Ministry of Road Transport & Highway. This Engineering Procurement and Construction (EPC) contract is for reconstruction of 65.87 km section of NH-233 on indo Nepal Border. The scope of work includes rehabilitation, up-gradation and augmentation of the existing carriageway to two-lane with paved shoulders, construction of pavements, construction and/or rehabilitation of major and minor bridges, culverts, road intersections, interchanges, drains. HCC is a leader in engineering and construction space. The company has established a vast presence and gained recognition in the sectors of Hydro Power, Water Solutions, Transportation and Nuclear Power.

BSE Sensex up over 300 pts, Nifty strong; ONGC gains 7%

Boosted by fuel stocks, the market has opened on a strong note. The Sensex is up 341.55 points or 1.3 percent at 26450.08 and the Nifty is up 112.70 points or 1.4 percent at 7892.40. About 532 shares have advanced, 74 shares declined, and 9 shares are unchanged. The government has begun with the mother of all reforms. It has raised the gas prices to USD 5.6 per unit effective from November with a review every six months. Also, in a huge boost to public sector oil companies, diesel price deregulation finally sees the light of the day. Government has deregulated the price of diesel, linking it to global market prices. Diesel has now become cheaper by Rs 3.37. ONGC is up 7 percent while Axis Bank, ICICI Bank and Tata Motors are top gainers in the Sensex. The Indian rupee advanced in the early trade. It has opened higher by 24 paise at 61.20 per dollar against 61.44 Friday. Dollar gained after upbeat data restored some calm to the financial markets, prompting equities to rally back from deep losses and triggering a rise in treasury yields. Agam Gupta of Standard Chartered said, "The diesel price decontrol and the state election results will support risk appetite. Expect exporters to sell on upticks to 61.35-61.40/dollar and local government banks to be buyers of USD on dips towards 61.05-61.10/dollar. Expect the rupee to trade in the range of 61.05-61.40/dollar," he added. It was a massive victory for the BJP in Maharashtra. It came out as the single largest party in the state with 123 seats in Haryana.It created a record getting majority on its own in Haryana assembly winning 47 seats.  US stocks rallied, softening a fourth week of losses, as investors bet on further stimulus from central banks and corporations including General Electric and Morgan Stanley reported profits that topped expectations. Meanwhile Fed Chair, Janet Yellen believes that the widening inequality paused during recession, has resumed in recovery. In economic data, new-home construction climbed 6.3 percent in August, signaling improvement in the US residential real-estate market. Also the preliminary read for consumer sentiment in October came in at 86.4 versus 84.0 estimate. Asian markets gained in a broad rally on Monday. The Nikkei rebounded from four-month low while Kospi recovered from eight-month low. Nymex crude futures bounce back after a three-week fall that pulled prices to their lowest since 2012 amid abundant supply and slack demand. Brent crude too rises to 86 dollars per barrel.

Sensex, Nifty flat; TCS, HCL Tech tank 6-7% on earnings

Equity benchmarks started of Friday's trade on a positive note post yesterday's sharp cut but it could not sustain those gains. It got back to consolidation mode with the Sensex rising 2.70 points to 26002.04, and the Nifty falling 4.60 points to 7743.60. About 781 shares have advanced, 373 shares declined, and 33 shares are unchanged. Hero Motocorp gained 1.68 percent post a 58 percent jump in second quarter net profit. Bharti Airtel, M&M, ITC, HUL, Zee Entertainment (ahead of earnings) and Asian Paints rallied 1.2-1.7 percent. TCS tanked 7.41 percent on profit booking and lower than expected revenue numbers in the quarter ended September 2014. HCL Technologies crashed over 6 percent after its revenue missed expectations. Tech Mahindra was down 4.53 percent. Sesa Sterlite, Wipro, Tata Motors, Hindalco, and DLF were other losers. The Indian rupee has opened higher by 15 paise at 61.68 a dollar on Friday compared to previous day's closing value of 61.83 a dollar. Pramit Brahmbhatt, Veracity feesl local equity market is likely to trade sideways and will take cues from global markets for further directions. He expects the rupee to trade firm after yesterday's fall although the strength in the dollar will keep the currency under pressure. According to him, the rupee is expected to trade in the range of Rs 61.40-62.40/USD. The dollar recovered given the relative strength of the US economy and the Federal Reserve's commitment to tighten monetary policy. On the global front, Asian markets were trading mixed with the Nikkei falling marginally. US stocks ended little changed, with the Dow industrials recouping much of a 206-point deficit, as investors balanced worries about global growth against mostly better-than-expected US earnings and economic reports. In Europe, shares closed lower after trimming losses in late afternoon trade, tracking US markets which partially recovered after visiting correction territory, even as fears surrounding Greece's stability resurfaced. In commodities, Brent crude rises to USD 86 per barrel buoyed by robust economic data and as US gasoline inventories last week fell to their lowest in nearly two years. 

Gold futures extend gains on strong demand

Gold futures extended their gains on MCX on the back of strong festive season demand from jewellers and retailers. The sentiments improved further after soft US data knocked the dollar lower against a basket of currencies and weighed on stock markets, boosted the metal's appeal as an alternative asset. The contract for December delivery was trading at Rs 27418.00, up by 0.61% or Rs 166.00 from its previous closing of Rs 27252.00. The open interest of the contract stood at 7971.00 lots. The contract for February delivery was trading at Rs 27582.00, up by 0.61% or Rs 166.00 from its previous closing of Rs 27416.00. The open interest of the contract stood at 747.00 lots on MCX.

Sensex, Nifty flat; TCS & Hero Moto gain; Bajaj Auto falls

Equity benchmarks opened flat despite weak global cues. The Sensex fell 1.37 points to 26347.96 and the Nifty declined 0.65 points to 7863.35. About 432 shares have advanced, 530 shares declined, and 47 shares are unchanged. DLF shot up 6.62 percent, showing a smart recovery after losing nearly 30 percent in previous session due to Sebi order. Hero Motocorp and TCS gained nearly 2 percent ahead of second quarter earnings today later in the day. Tata Motors, BHEL and Tata Steel climbed over 1.5 percent. However, Hindalco, Bajaj Auto (post 29 percent fall in Q2 profit), Reliance Industries, Sesa Sterlite, Tata Power and Cairn India lost 1-2.5 percent.  The Indian rupee opened marginally lower on Thursday at 61.48 per dollar compared to 61.41 a dollar in previous session. Dollar hits a three-week low against the euro and a more than one-month low against the yen post weak US economic data that heightened concerns that the federal reserve would delay its first rate hike. Mohan Shenoi of Kotak Mahindra Bank said, "Dollar weakness against global majors may not impact rupee significantly due to reduced custodial flows. The rupee is expected to trade today in a range of Rs 61.10-61.50/dollar." On the global front, Asian markets (barring Shanghai) were trading lower with the Nikkei falling over 2 percent. US stocks closed down but recovered significantly from historic intraday losses amid concerns about Europe, Ebola and the economy. Stocks lost nearly 3 percent during the day but recovered in the close. In Europe, stocks closed more than 2 percent lower as investors shunned risky assets on fears of crumbling global growth, weak economic data, and concerns about the political situation in Greece. In commodities, Brent crude continues its slump, slips below USD 84 per barrel.

Morning cues: Nifty likely to open on a jittery note

The Indian market on Thursday is likely to open on a jittery note mirroring the growth concerns in the US and the crash in Europe due to political uncertainty in Greece. However, the weakness is expected to be cushioned by a hint of BJP winning the assembly elections, as predicted by the opinion polls. The SGX Nifty was trading in red at 7878, down 74 points around 8:00 hrs. The 30-share BSE Sensex fell 34.74 points to close at 26349.33 and the 50-share NSE Nifty declined 20.25 points to 7864. Growth concerns plague the markets. US stocks closed down but recovered significantly from historic intraday losses amid concerns about Europe, Ebola and the economy. Stocks lost nearly 3 percent during the day but recovered in the close. The CBOE volatility index cut half its gains after rising as much as 35 percent to trade above 30, its highest level since November 2011. Retail sales fell 0.3 percent in September, slightly more than the expected 0.2 percent decline. The producer price index for September fell 0.1 percent as opposed to expectations of a 0.1 percent gain. In Europe, stocks closed more than 2 percent lower as investors shunned risky assets on fears of crumbling global growth, weak economic data, and concerns about the political situation in Greece. Asia too is trading negative on weak US lead. In the currency space, dollar hits a three-week low against the euro and a more than one-month low against the yen post weak US economic data that heightened concerns that the federal reserve would delay its first rate hike. In commodities, Brent crude continues its slump, slips below USD 84 per barrel. From precious metals space - gold prices rise to USD 1240 an ounce following weak dollar against a basket of currencies Back home, telecom regulator, TRAI releases recommendations on spectrum valuation and reserve price for licences expiring in 2015-16. It also recommends auction of only spectrum held by service providers in 900 mega hertz band. In key earnings today, Q2 is expected to be a strong quarter for TCS. Dollar revenue may see a 7.3 percent growth to USD 3965 million, marginal improvement in margins seen. From autos, Hero Moto too may report good earnings with profits rising 43 percent. Bajaj Auto reported a mixed set of numbers for the second quarter. Revenues were at Rs 5,963 crore beating estimates, but net profit missed the street's view as the auto major reported an exceptional loss of Rs 340 crore due to a one-time penalty imposed by the government of Uttarakhand. Reliance infra and GVK Power suffered setback after Supreme Court said the dispute between the two companies over the hydropower projects in Uttarakhand has dragged on for far too long. The apex court asked the state government to consider scrapping the tender process

Sept WPI eases at 2.38%, food inflation cools to 33-mth low

Inflation data based on Wholesale Price Index (WPI) for September eased to 5-year low at 2.38 percent against 3.74 percent on a month-on-month basis on lower food and fuel prices. Food inflation, which came in at 33-month low, stood at 3.52 percent against 5.15 percent, while the fuel and power group inflation came in at 1.33 percent against 4.54 percent on a month-on-month basis. Manufactured products inflation came in at 2.84 percent against 3.45 percent. The July WPI inflation has been revised to 5.41 percent from 5.19 percent. A CNBC-TV18 poll had estimated WPI to come in at 3.1 percent on a lower primary and fuel inflation. Even the consumer price inflation data for the month of September, which was released yesterday, cooled off to its all-time low of 6.46 percent, the lowest since India started computing consumer price index (CPI) in January 2012, led by lower food prices and fuel costs. Elated by the double cheer brought in by CPI and WPI, Aditi Nayar, Senior Economist at ICRA, said falling crude, coupled with softening in food prices, have helped in bringing down the inflation numbers. Nayar had expected WPI number at around 3-3.1 percent, and says 2.38 percent is definitely positive news. “The good news at this point in time is that we haven’t seen the impact of diesel cuts yet. That would bring some more softening going ahead and something to look forward to. However, we should still remain little bit cautious as far as other food prices are concerned other than the vegetable reversals,” she said. According to Samiran Chakraborty, Head of Research at Standard Chartered Bank, the numbers reflect the decline in global commodity prices as it is WPI that picks up the metal, chemical and fuel price declines faster than CPI. He expects the core inflation to come in lower than 3 percent (better than 3.5 percent seen last month). “So in conjunction with the food price decline which is reflected in both CPI and WPI, the WPI move looks spectacular. Therefore, very good news that on both WPI and CPI we are now getting confirmation that the inflation numbers are low,” he said. Within the monthly WPI data, growth in its respective components (MoM) stood at: Vegetable Index down 13 percent Primary Articles Index down 1.3 percent All Commodities Index down 0.4 percent Manufactured Products Index unchanged Non-food Articles Index down 2 percent Primary Articles Inflation at 2.18 percent against 3.89 percent Fuel & Power Group Index down 0.3 percent Food Articles Index down 1.4 percent

Sensex weak, Nifty struggles at 7900; BHEL, Bajaj Auto up

Investors are currently awaiting the Maharashtra and Haryana states elections results on the assumption that once this event is out of the way, the Prime Minister will finally settle down and look at administration changes and reforms, says Saurabh Mukherjea, chief executive officer, Institutional Equities at Ambit Capital. Speaking to CNBC-TV18, Mukherjea says the economy continues to be soft and no infra project has taken off significantly. “We need reforms to come in soon now. Also the next Budget will be very critical for the market as the July Budget was a damp squib. The government should be able to convey its focus on fiscal discipline come what may,” he says. The areas, Mukherjea says, that need attention to are: labour reforms, land reforms and goods and services tax (GST). On the market-front, Mukherjea says the market will pick up pace only if reform momentum kicks off and adds that he isn’t too worried about global slowdown. He has a year-end target of 30000 on the Sensex with a 10 percent downside risk if the policy reforms don’t come in.

MCX Gold February contract gains

At 10:35 hrs MCX GOLD December contract was trading at Rs 27095 up Rs 123, or 0.46 percent. The GOLD rate touched an intraday high of Rs 27111 and an intraday low of Rs 27055. So far 875 contracts have been traded. GOLD prices have moved down Rs 726, or 2.61 percent in the December series so far. MCX GOLD February contract was trading at Rs 27240 up Rs 129, or 0.48 percent. The GOLD rate touched an intraday high of Rs 27240 and an intraday low of Rs 27193. So far 13 contracts have been traded. GOLD prices have moved down Rs 999, or 3.54 percent in the February series so far.

Nifty reclaims 7900; DLF crashes 21%, Reliance Ind gains

Equity benchmarks gained half a percent led by easing CPI inflation in September and better-than-expected numbers from Reliance Industries in Q2. The Sensex rose 164.58 points to 26548.65 and the Nifty climbed 39 points to 7923.25. About 403 shares have advanced, 73 shares declined, and 21 shares are unchanged.   Shares of Bajaj Auto gained 1.5 percent ahead of Q2 earnings. Axis Bank, Coal India, Bharti Airtel, Reliance Industries and IndusInd Bank rose 1.3-1.6 percent. However, DLF tanked 18 percent after market regulator SEBI barred company and its six executives from accessing capital markets for 3 years. Hero Motocorp, Cipla, ITC, Dr Reddy's Labs, BPCL and HCL Technologies were under pressure. And what brought some much-needed macro cheer for the economy, the consumer price index (CPI) for September fell to all-time low of 6.46 percent versus expectations of 7.2 percent. Meanwhile, in key data today, the wholesale price index (WPI) for September is expected to soften further to 3.1 percent. The Indian rupee gained in the opening trade. It rose 15 paise to 60.93 per dollar versus previous day's closing value of 61.08 a dollar. Ashutosh Raina of HDFC Bank said the global growth concerns are back to haunt the markets, resulting in re-emergence of risk-off sentiment. "The WPI inflation number, declared after market hours yesterday, should cheer the markets," he added. He expects the currency to trade in a 60.50-61.50/dollar range, with an appreciating bias." The dollar fell against a basket of major currencies on persisting concerns about global economic growth and worries that the Federal Reserve may delay its first interest rate hike. On the global front, markets were in the red with the US markets slumping and the S&P 500 falling below its average from the past 200 days. Meanwhile, the CBOE VIX jumped 16 percent, the highest level since June 2012. Nikkei that opened after a day’s holiday tanked 2 percent on a strong yen.