Daily Market Strategy - Muted start... narrow movement likely
The market is likely to be driven more by global cues than local factors for now. Investors could get a bit unnerved as FIIs and DIIs turned net sellers on Tuesday. Global cues will play a major factor in the coming days for want of other reasons.
The outlook is a positive start. Indices could cool soon. The total market valuation of the BSE-listed companies could cross the Rs. 100 lakh crore-mark if the sentiment remains upbeat today. The BSE has decided to shift stocks of 55 companies to the restricted trading segment from next week.
The Dow 0.23% while S&P 500 added 0.51%. The Nasdaq added 0.67%. Asian markets are lackluster. Nikkei was marginally higher while Hang Seng has shed half a percent. Kospi and Shanghai are also trading lower.
The Prime Minister of India and the Prime Minister of Australia reaffirmed that the Strategic Partnership between India and Australia is based on converging political, economic and strategic interests; a shared desire to promote regional and global peace, security and prosperity; and a commitment to democracy, freedom, human rights, and the rule of law.
Moody's Investors Service says its outlook on Asia's non-financial corporates (excluding Japan) remains stable, reflecting a modest improvement in external demand, led by the US, still-accommodative global monetary conditions, and an orderly economic rebalancing in China.
Shares of jewellery companies are trading lower on reports that the Reserve Bank of India (RBI) may increase the restrictions on gold imports.Shares of Titan Company was down 1% at Rs373, while Tribhovandas Bhimji Zaveri is down 2% at Rs157.Tara jewels shares were lower by 2% at Rs93, has dipped 1%.
RBI deputy governor S.S. Mundra reportedly said policymakers are concerned that higher gold imports will worsen the trade deficit.
Shares of Punj Lloyd Group has hit 5% upper circuit at Rs40 after the company bagged Rs 666 Crores Asian Highway contract from the Ministry of Road Transport & Highways
Shares of Rasoya Proteins Ltd hit 20% lower circuit at Rs4.Last week, the company has posted its Q2 results.
Shares of Adani Enterprises was flat at Rs496 after the company received support from Indian and Australian government to help to build a $ 7 billion coal mine, rail and port.
Tata Power has issued two series of Non-Convertible Debentures (NCDs) worth Rs. 1500 crore on a private placement basis. The 9.32% unsecured, non-cumulative, redeemable, listed, and rated Series 1 NCDs aggregating Rs. 1,000 crore will repaid in 2017.
The 9.48% unsecured, non-cumulative, redeemable, listed, and rated Series 2 NCDs aggregating Rs. 500 crore will be repaid in 2019.The NCDs will be listed on the Wholesale Debt Market segment of National Stock Exchange of India Limited.
Ranbaxy Laboratories Ltd has sued US Food and Drug Administration (FDA) for revoking approvals granted to the firm to launch copies of two drugs including AstraZeneca Plc's heartburn pill Nexium, according to reports.Last month, FDA told Ranbaxy that it believed its decisions to grant the company tentative approvals for copies of Nexium and Roche AG's antiviral Valcyte were "in error".
Cable distribution firm Ortel Communications Ltd has received SEBI's approval to raise funds through an initial public offer (IPO), according to reports.Report stated that the company had filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in September.
Trends in FII flows: The FIIs were net sellers of Rs 1.01bn in the cash segment on Tuesday, while the domestic institutional investors (DIIs) were the net sellers of Rs 2.32 bn, as per the provisional figures released by the NSE.
Global Data: MNI Business Sentiment Indicator (Oct) CNY, BoJ Interest Rate Decision JPY, BoJ Monetary Policy Statement JPY, All Industry Activity Index (MoM) (Sep) JPY, Leading Economic Index (Sep) JPY, Coincident Index (Sep) JPY, BoJ Press Conference JPY, Current Account n.s.a (Sep) EUR, Current Account s.a (Sep) EUR, Bank of England Minutes GBP, BOE MPC Vote Cut GBP, BOE MPC Vote Hike GBP, BOE MPC Vote Unchanged GBP, Construction Output w.d.a (YoY) (Sep) EUR, Construction Output s.a (MoM) (Sep) EUR, ZEW Survey - Expectations (Nov) CHF, MBA Mortgage Applications (Nov 14) USD, Building Permits (MoM) (Oct) USD, Housing Starts (MoM) (Oct) USD, EIA Crude Oil Stocks change (Nov 14) USD, FOMC Minutes USD, Producer Price Index - Output (QoQ) (Q3) NZD, Producer Price Index - Input (QoQ) (Q3) NZD, Foreign bond investment (Nov 14) JPY, Foreign investment in Japan stocks (Nov 14) JPY, Merchandise Trade Balance Total (Oct) JPY, Adjusted Merchandise Trade Balance (Oct) JPY, Exports (YoY) (Oct) JPY.
In other news in the media
Cadila Pharmaceuticals Ltd is now focussing on ayurvedic over-the-counter products segment to fuel growth in the Indian market, which has recently seen several allopathic drugs come under price control. (BS)
Ranbaxy Laboratories Ltd has sued the US Food and Drug Administration for revoking approvals granted to the firm to launch copies of two drugs including AstraZeneca Plc's heartburn pill Nexium, court documents showed. (BS)
MTNL has raised Rs15bn by selling bondsto institutional investors and the funds would be used to repay debt. (BS)
Punj Lloyd announced securing a Rs6.66bn contract for the 90.58 km Asian Highway project from the Ministry of Road Transport. (BS)
Fair trade regulator CCI has approved Jaiprakash Associates proposed sale of its Haryana's cement grinding unit to Shree Cements, saying the deal will not raise anti-competition concerns in the country. (BS)
IOC is reportedly planning to set up an ethylene derivative plant at its Paradip refinery complex in Orissa with an investment of Rs40bn. (BS)
Praj Industries has bagged a Rs2.35bn order for oil & gas process skids for Petrobras, Brazilian energy major. (BS)
After test marketing its products for almost two years in southern parts of the country, Mother Dairy will formally launch its dairy products in Chennai in a month and the company which is currently growing at a CAGR of 20 %, is also eyeing Rs100bn business by 2017. (ET)
Tata Global Beverages is looking to cash in on the growing awareness on health and wellness to reinforce its dominance in the green tea segment in the country by launching new products and tapping small towns. (ET)
Godrej group, which is eyeing a ten-fold increase in business volumes within a decade, is banking heavily on e-commerce to achieve its 'Vision 2020' target. (ET)
Kolte-Patil Developers said it has entered into a development management agreement with NOW Realty to develop a residential project in Pune. (ET)
National Mineral Development Corporation and Odisha Mining Corporation are vying for 51% stake in a mega steel project planned in Keonjhar district. (BS)
Tata Power said it has raised Rs15bn through issue of securities. The proceeds would be used for general corporate purposes of the company, including repayment of maturing foreign currency convertible bonds, capital expenditure and working capital. (BS)
For a country that boasts of an expansive coastline of 7,500 kilometres, coastal shipping plays a surprisingly small role, transporting a little over 160 mn tones (mt) of cargo in 2012-13, in the domestic movement of goods. To rectify this imbalance, the government is mulling over a scheme to promote coastal shipping.(BS)
India's economic growth is expected to pick up to 5.6 % in the current fiscal on account of structural reforms being rolled-out by the government, Fitch Ratings said today. (ET)
The government is likely to announce measures to curb gold imports, a senior finance ministry source said, as a surge in inbound shipments threatens to worsen the trade deficit.(BS)
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India Infoline Research Team / 08:44, Jun 26, 2015
IIFL is hosting 10 companies at a Management Roadshow in Mumbai today. The opening is a subdued start. US market saw minor losses with Dow, S&P 500 and Nasdaq closing marginally lower.