Meanwhile, 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.
Nifty saw profit booking emerge around 8200 even as the broader market rose over 1%.The pessimism on the slowdown may seem overdone as data from auto sales belied expectations & came stronger than expected. Cement, auto & metals lead the rally which may continue today as more participation could see volumes & price action surge.
Among other stocks in focus:
Hero MotoCorp: The company reported 34% dip in its total sales in December 2016 at 3,30,202 units as against 4,99,665 units in the same month previous year. The company said its three manufacturing facilities at Gurgaon, Neemrana and Haridwar were closed from December 26-31, 2016 on account of annual maintenance.
State Bank of India: SBI chairperson Arundhati Bhattacharya hinted that the mega merger of its five associate banks and Bharatiya Mahila Bank (BMB) could be pushed to the next financial year as it is still awaiting the government notification on the move.
Tata Motors: The auto company reported a 2% increase in total sales at 40,944 units in December as against 39,973 units sold in the year ago period.
Hathway Cable & Datacom Ltd: Cable TV and broadband Internet services provider Hathway Cable & Datacom Ltd said its subsidiary GTPL Hathway Pvt. Ltd has filed its initial public offering (IPO) prospectus with the capital market regulator, in an intimation to stock exchanges. Read more.
HPCL: HPCL plans to invest Rs 1,200 crore in city gas distribution (CGD) to expand network and build infrastructure, a company official said.
Exide Industries Ltd: The company will invest Rs 300 crore to expand its capacity for advanced motorcycle batteries over a period of 18 months starting April.
The Great Eastern Shipping Co: The company signs contracts to buy two Suezmax Crude Carriers of about 1,57,000 deadweight tonnage each.
Dhanuka Agritech: Dhanuka Agritech shareholders approve buyback of equity shares. Can offer maximum of Rs 850 per share in the buy back.
Andhra Bank: Andhra Bank reduces marginal cost of funds based lending rate by 80 basis points across maturities.
Aban Offshore: Aban Offshore completes sale of 59% of equity shares in two of its units - Aban Green Power and Rashapuram Pvt Ltd and also completes 49% acquisition in Aban Drilling Service Pvt Ltd.
OBC, Andhra Bank: Oriental Bank of Commerce slashed the one-year MCLR rate by 0.8% to 8.60% while Andhra Bank has brought it down by similar percentage point to 8.65%.
Power Grid: The company has transferred 3.06 crore shares in Power System to government.
Titan Company: Titan Company said its jewellery sales have reached "pre demonetisation" level in December but sales of watches through multi-brand outlets are yet to recover. The retail growth for Tanishq in Q3 FY 17 is around 15 per cent.
TVS Motor: TVS Motor Company reported 8.5% decline in total sales at 1,84,901 units in December. The Chennai-based company had sold 2,02,021 units in December 2015.
SML Isuzu: Commercial vehicles maker SML Isuzu reported 16.4% increase in sales at 1,021 units in December 2016. It had sold 877 units in the same month of 2015, SML Isuzu said in a BSE filing.
Welspun Enterprises: The company seeks shareholder nod for buying back up to 25% of its share capital for an aggregate consideration of up to Rs 270 crore.