Flat start for Sensex, Nifty

India Infoline News Service | Mumbai | January 04, 2017 08:29 IST

Asian indices opened in the green with the Japanese 'Nikkei' jumping over 350 points on opening bell after reopening in the New Year. Overnight crude prices reacted sharply after hitting US$ 55 which also saw the US$ give up some gains.

Dalal Street
The outlook is a flat start. Asian indices opened in the green with the Japanese 'Nikkei' jumping over 350 points on opening bell after reopening in the New Year. Overnight crude prices reacted sharply after hitting US$ 55 which also saw the US$ give up some gains. The real outperformance came from the Brazilian "Bovespa" which surged over 3.5% as value buying emerged in emerging market indices & stocks.

The rupee, which dipped further on Tuesday, will be in focus. The services activity data expected in the morning can move market sentiment. The Budget session of Parliament will be convened on Jan 31 and the Economic Survey will be presented on the same day. The Union Budget will be presented on Feb 1 and the first phase of Budget Session will end on Feb 9.

The Street saw the first green-ticks on a closing basis on Tuesday as positive global cues helped overcome the weak core sector data and drop in manufacturing PMI. Though the ‘January effect’ theory does not have many takers now, globally some still expect buyers to return with a bang and make a fresh start after they have lightened their positions for various reasons in December.

Oil heated up to an 18-month high as the New Year marked the official start of output reduction by OPEC and non-OPEC members.

The GST council meet seems to be nearing consensus on a host of issues but implementation is expected to be delayed.

Among other stocks in focus:

Wockhardt: The US Food and Drug Administration has issued a warning letter to Wockhardt's Ankleshwar plant, as per reports. The company told ETNow that the warning letter for Ankleshwar facility is not a new development. It is a follow up on import alert on Ankleshwar.

HDFC: India’s second largest mortgage lender Housing Development Finance Corp. (HDFC) Ltd reduced interest rates on home loans.

Bharti Airtel Ltd: Bharti Airtel offered free calls and data to anyone switching to its network, in an attempt to counter free services from Reliance Jio, available until 31 March.

Coal India: Coal India from this month will begin the second phase of auction of coal linkages for the non-regulated sector and is likely to put on offer 14.5 million tonnes of fuel.

Bombay Dyeing: Bombay Dyeing and Manufacturing Company has drawn up a major strategy to revive its textile retail business and is looking for a turnaround in 2017-18.

Punjab and Sind Bank: Another public sector lender Punjab and Sind Bank also cut the one-year MCLR to 8.75 per cent, down by 0.8%.

Nandan Denim: The Reserve Bank of India on Tuesday notified that foreign portfolio investors can now invest up to 49 per cent in Nandan Denim against 24% earlier.

Corporation Bank: The bank lowered 1-year MCLR rate by 0.70 per cent to 8.75%.

Indiabulls Housing Finance: Indiabulls Housing Finance on Tuesday reduced its home loan rates by 45 basis points, bringing it down to lowest in six years.

Glenmark Pharmaceuticals: The pharma major has received final approval from the US health regulator USFDA for sale of Tretinoin Capsules, used in treatment of leukemia.

MOIL: The company on Sunday increased prices for electrolytic manganese dioxide and chemical grades ore by 5 per cent and 10 per cent, respectively.

Bank of India: The bank cut benchmark lending rates by up to 0.90% point on Tuesday. For one year, the MCLR, or marginal cost of funds based lending rate, is now at 8.50%.

Engineers India: The company on Tuesday informed bourses that the Committee of the Board of Directors in its meeting held on Jan 3, has approved the issue and allotment of 33.69 crore bonus equity shares in the ratio of 1:1 to the existing shareholders holding shares at the close of business hours on the record date ie Jan 2.

Max Ventures and Industries: The company to hold board meeting on January 9 to consider fund raising options.

Jindal Saw: The shareholders approve raising of funds worth Rs 1,000 crore via non-convertible debentures, QIP issue worth Rs 1,000 crore and GDR/ADR/FCCB issue worth $150 million.

 

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