Latest news and updates

20th Feb, 2019

Nifty settles above 10,700 mark; Indiabulls HF, Tata Steel stocks lead

Published on: 3:32 pm

  • Equity benchmark indices snapped eight day losing streak on Wednesday. The benchmark S&P BSE Sensex gained 404 points to 35,756 while, the Nifty climbed 131 points to 10,742. This was their best performance since January 31.
  • Reliance Industries, HDFC twins and Infosys lifted indexes, while auto shares limited gains.
  • Indiabulls HF, Tata Steel, Vedanta, and Adani Ports were the top gainers, while Dr.Reddy’s, Hero MotoCorp, and HUL were the top losers on the NSE.

European stocks gain amid positive global cues

Published on: 3:10 pm

  • Shares in European markets were trading in the green led by miners and carmakers on Wednesday.
  • Investors awaited the release of minutes from the latest meetings of two of the world’s key central banks. Contracts on the Dow Jones, S&P 500 and Nasdaq indexes were little changed, and Treasuries ticked lower.
  • With the US and China continuing tough negotiations toward a trade deal, the focus has shifted to a key campaign promise made by President Donald Trump, namely addressing Beijing’s periodic devaluation of the yuan. Read more

Sensex, Nifty continue to trade higher; Metal stocks lead

Published on: 2:57 pm

  • Equity benchmark indices continue to trade higher on the Wednesday’s session led gains by RIL, Infosys, and HDFC Bank.
  • The Sensex rose 215 points to 35,568 and the Nifty50 index rose 72 points to 10,676. The market breadth was positive as 1,012 shares advanced, 703 shares declined, and 349 shares remained unchanged.
  • Metal stocks were gaining for a second straight session. Jindal Steel contributed the most to the index gains, while NALCO, and MOIL were trading lower.
  • The banking index rallied after a media report said that the government may infuse over Rs47,000cr in 12 PSBs in the next recapitalization tranche of FY19. Also, Allahabad Bank and Corporation Bank are likely to exit from the prompt corrective action (PCA) framework.

Maharashtra Seamless acquires United Seamless Tubular for Rs477cr

Published on: 2:39 pm

  • Maharashtra Seamless has made a payment of Rs477cr for the acquisition of United Seamless Tubular Private Limited (USTPL) under the corporate insolvency resolution process (CIRP) under the insolvency and bankruptcy code 2016 (IBC) as approved by Honourable Hyderabad Bench of National Company Law Tribunal (NCLT).
  • The company made the announcement in a regulatory filing on Tuesday evening post market hours. Reacting to the news, shares of the company jumped ~2% on Wednesday afternoon. Read more

HG Infra gains 7% as company emerges as L-1 bidder for road project

Published on: 2:31 pm

  • Shares of HG Infra Engineering gained 7% as the company emerged as the lowest bidder (L-1) I for a new engineering, procurement, and construction (EPC) project under National Highways Authority of India (NHAI).
  • The project work includes the construction of a 6-lane access controlled greenfield highway from 225+000km to 252+500km of Sangariya (near Chautala)-Rasisar (near Bikaner) section of NH-754K as a part of Amritsar-Jamnagar Economic Corridor in the Rajasthan, the company said in a press note to the exchanges on Wednesday. Read more

Banking, financial stocks rally in today’s trade

Published on: 2:05 pm

  • Shares of banking and financial companies rose in Wednesday’s trade. The gain in the Nifty PSU Bank index was led by Central BankIndian BankIDBI Bank, and Canara Bank.
  • The banking index rallied after a media report said that the government may infuse over Rs47,000cr in 12 PSBs in the next tranche of recapitalization in FY19. Allahabad Bank and Corporation Bank are likely to be the next candidates for exit from Prompt Correction Action (PCA), according to the report. Read more

Live share market update: Markets continue to trade with positive bias; Nifty rises 71 points

Published on: 1:27 pm

  • Indian equity markets continued to trade with a positive bias after opening gap up on Wednesday. The Nifty was up 71 points at 10,676, while Bank Nifty was up 173 points at 26,856 in early afternoon trade.
  • Small-cap and mid-cap stocks continued to witness buying and rose 0.66% and 0.56%, respectively.
  • Among the sectoral indices, Nifty Metal and Nifty PSU Bank were the top performers, up 2.18% and 1.06%, respectively. Read more

Sensex rallies 200 points; Tata Steel, Adani Ports stocks lead

Published on: 1:21 pm

  • Equity benchmark indices were trading higher in the afternoon session. The Sensex was up 225 points at 35,577, while the Nifty was up 69 points at 10,673. The market breadth was positive with 1,047 shares advancing, 627 shares declining, and 388 remaining unchanged.
  • Vedanta, Tata Steel, and Adani Ports were the top gainers, HUL, Bajaj Auto, and ITC were the top losers on the NSE.

Nifty Metal gains 2% on positive global cues

Published on: 12:37 pm

  • Tracking global cues, the Nifty Metal index gained 2% on Wednesday amid US President Donald Trump's indication to push back a closely watched tariff hike deadline. Shares of Jindal Steel & PowerWelspun CorpVedantaSAIL, and Jindal Stainless (Hisar) were leading the gains on the index.
  • As per media reports, US President Donald Trump echoed his willingness to extend next month's tariff hike deadline on China after applauding the progress in trade talks. Read more

AAVAS Financiers stock hits all-time high

Published on: 12:35 pm

  • Shares of AAVAS Financiers hit an all-time high in today’s session. The stock was trading at its highest level since its listing on October 8, 2018, on the NSE.   
  • AAVAS Financiers Ltd is currently trading at Rs933.60 up by Rs27.5 or 3.03% from its previous closing of Rs906.10 on the BSE. The scrip opened at Rs890.20 and touched a high and low of Rs940 and Rs890.20 respectively. Read more

M&M falls ~2% after brokerage downgrade

Updated on: 12:31 pm

Published on: 12:35 pm

  • Shares of Mahindra and Mahindra dropped ~2% in early morning trade before recovering to trade flat on the BSE. Shares fell to a low of Rs628.50 on the BSE, a drop of Rs10.5 as against its opening of Rs632.20.
  • Brokerage and research firm JPMorgan downgraded the stock to ‘Neutral’ from ‘Overweight’. The research house also cut its target price from Rs900 to Rs700, implying a potential upside of 10.7% from the last regular trade. Read more

Sensex, Nifty off day’s high; RCom stock slips ~7%

Published on: 12:25 pm

  • Equity benchmark indices were trading in a positive note, as all sectoral indices trading in the green except FMCG.
  • Nifty IT stocks bounced back after two days of losses. Shares of Infosys rose 1% followed by Tech Mahindra, Wipro, and Mindtree.
  • Shares of Anil Ambani’s Reliance group companies fell after India’s SC found Ambani guilty on contempt in Ericsson case. RCom stock fell ~7%.
  • The Sensex was up 175 points at 35,527, while the Nifty was up 57 points at 10,661. The market breadth was positive with 1,034 shares advancing, 626 shares declining, and 401 remaining unchanged.

Alembic Pharma gets USFDA nod for Acetazolamide ER capsules; stock up 1%

Published on: 12:11 pm

  • Alembic Pharmaceuticals has received approval from the US Food & Drug Administration (USFDA) for its ANDA Acetazolamide Extended-Release (ER) capsules, 500mg. The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD) Diamox Sequels, 500 mg, of Teva Branded Pharmaceutical Products R&D Inc, as per BSE filing.
  • Acetazolamide Extended-Release Capsules, 500mg has an estimated market size of $13.1mn for twelve months ending December 2018 according to IQVIA. Read more

Strides gets USFDA approval for Ethosuximide Softgel capsules

Published on: 11:56 am

  • Strides Pharma Science on Wednesday announced that its step‐down wholly-owned subsidiary Strides Pharma Global Pte Ltd, Singapore, has received approval for Ethosuximide Softgel Capsules USP, 250 mg, from the United States Food & Drug Administration (USFDA).
  • The product is a  generic version of Pfizer's Zarontin Capsules, 250 mg.
  • The product was approved in the first review cycle in less than 10 months of its filing under the GDUFA II regime. Strides specializes in the softgel domain and is a global leader in the Rx space. Read more

Aarti Industries signs supply contract worth Rs900cr

Published on: 11:55 am

  • Aarti Industries in its filing to the exchanges on Wednesday informed that the company has inked a $125mn (Rs900cr at current exchange rate) supply contract with a global chemical conglomerate.
  • "The contract entails supply of a high-value specialty chemical intermediate for a period of 10 years," the company added. The plant is expected to commission in the fourth quarter of FY21, with an average annual revenue of $12.5mn. Read more

Kaveri Seed falls for fifth day; stock slips 8%

Published on: 11:33 am

  • Shares of Kaveri Seed fell for the fifth consecutive session on the BSE. The stock fell ~35% in the past five days and declined 31% in the past 30 days.
  • The company’s net profit declined 32.8% to Rs3.65cr in the quarter ended December 2018 as against Rs5.4cr during the previous quarter ended December 2017. Its sales declined by 4.9% to Rs67.2cr in the quarter ended December 2018 as against Rs70.6cr during the previous quarter ended December 2017. Read more

ADAG stocks decline after Anil Ambani held guilty of contempt

Published on: 11:28 am

  • Stocks in the Anil Dhirubhai Ambani Group (ADAG) declined in the morning trade on Wednesday after media reports said that the SC held Reliance Group chairman and its two directors guilty of contempt for willfully not paying Rs550cr to Ericsson.
  • “We respect the Hon'ble Supreme Court judgement. The RCOM Group shall comply with same,” the company said in the BSE filing.
  • Reacting to this news, Reliance Communications, RInfra, Reliance Capital, and Reliance Naval fell in the range of 7-4% respectively. Read more

Nifty Realty gains ahead of GST Council meet

Published on: 11:20 am

  • The Nifty Realty index gained ~1% on Wednesday as investors are waiting for the outcome of GST Council Meeting due today. Shares of UnitechBrigadeGodrej Properties, and Prestige Estate were leading the index’s gain.
  • As per media reports, the GST Council will meet on Wednesday to discuss various suggestions related to realty sector. Read more.

IOC gains 2% on report of signing contract to buy US oil

Published on: 10:40 am

  • Shares of Indian Oil Corporation (IOC) gained 2% after an Economic Times report stated that the company has signed a $1,500bn deal to buy oil from the US.
  • As per the report, Indian Oil has finalised a term contract for import of up to 3mn tonnes of crude oil of the US origin grades as a part of its strategy to diversify term crude sources. Read more.

Rupee gains by 14 paisa against Dollar

Published on: 10:35 am

  • The Indian rupee opened higher against the US dollar on account of some selling in American currency by banks and exporters. The rupee was trading at 71.20/$, up 14 paise.
  • The currency and debt markets were shut on Tuesday for a public holiday. Read more.

Asian markets gain on hopes of US-China trade deal

Published on: 10:10 am

  • Asian markets were higher on Wednesday after US President Donald Trump said the US-China trade talks are "going very well" and once again hinted that an early March deadline to reach a deal could be postponed.
  • The markets opened in the green led by the Japanese Nikkei as overnight US stocks continued to see an uptick despite the need for a correction.
  • Nikkei 225 Index is up 0.87% at 21,488.94, after rising to a high of 21,494.85 earlier. Shanghai, Hong Kong, and South Korea are advancing more than 1% each, while New Zealand, Indonesia, Malaysia, Singapore, and Taiwan are also higher. Read more.

Sensex rallies over 250 points on strong global cues

Published on: 9:47 am

  • Equity benchmark indices opened in the positive zone amid strong global cues. The rupee opened 5 paise higher at 71.29 against the US dollar amid drop in crude oil prices.
  • Yes Bank stock gained 2% after clarification on releasing nil divergence report and stated that information was in due compliance.
  • Aarti Industries stock advanced 1% on the BSE. The company collaborated with Global Chemical Conglomerate to develop and supply High Value Specialty Chemical Intermediate worth USD 125 million for a 10-year supply period. Read more

ABB India gains 2% on order wins worth Rs270cr

Published on: 9:39 am

  • ABB India gained 2% on Wednesday as the company won an order worth Rs270cr to supply electric locomotives from Diesel Locomotive Works (DLW), in Varanasi from Indian Railways.
  • "The converters are custom designed for Indian Railways and will be manufactured at one of ABB’s largest factories for locomotive applications in Nelamangala, near Bengaluru, in Southern India," the company said in a press note to the exchanges on Tuesday. Read more.

Jaypee Infra’s promoter makes second attempt to settle dues: Media report

Published on: 9:28 am

  • Jaypee Infra submitted a proposal for settling dues worth Rs10,000cr, amid bids for taking over the realty firm under the insolvency process, a PTI report stated. Reacting to this, shares of the company climbed 4% on Wednesday.
  • This is the second time in a year that promoter of the company has sought to retain control of the cash-strapped subsidiary. The latest offer also comes close on the heels of state-owned NBCC and realty firm Suraksha group putting in bids for Jaypee Infratech. Read more.

Indices open higher on positive global cues; Sensex rallies over 200 points

Published on: 9:19 am

  • Equity benchmark indices opened in the positive zone amid strong global cues. All the sectoral indices are trading in green led by realty, energy, metal, infra, pharma and FMCG.
  • The Sensex Index jumped over 200 points at 36,566 and the NSE Nifty jumped 74 points at 10,666.

Vedanta to proceed with filing writ petition before HC to reopen TN unit

Published on: 9:09 am

  • Vedanta, in its filing to the exchanges, informed that the company will be proceeding with the next steps of filing the Writ Petition before High Court to reopen its Copper plant in Thoothukkudi district of Tamil Nadu.
  • The update came after the exchanges sought a news clarification on "Supreme Court revokes NGT order to open Vedanta smelter".
  • The SC had set aside the National Green Tribunal (NGT) order allowing the reopening of Vedanta Ltd’s Sterlite Industries (India) Ltd plant, saying the Tribunal lacked the necessary jurisdiction, the company said in a press note after market hours to the exchanges on Tuesday. Read more.

US Supreme Court refuses to block Dr. Reddy’s gSuboxone

Published on: 9:05 am

  • As per news sources, US Supreme Court has cleared Dr. Reddy’s gSuboxone film, copycat of lucrative opioid addiction drug Suboxone.
  • The Chief Justice John Roberts denied Suboxone’s innovator, Indivior’s request to put on hold, ruling by the lower court to clear Dr. Reddy’s Suboxone copy.
  • Indivior had filed petition with the Supreme Court of the United States in the preliminary injunction matter. On February 05, 2019, US Court of Appeals for the Federal Circuit (CAFC) had cleared Dr. Reddy’s Laboratories for selling gSuboxone film in the US market. Read more.

Cabinet approves Phase-II of grid connected rooftop solar programme

Published on: 8:51 am

  • The Cabinet Committee on Economic Affairs (CCEA) has given its approval for the Phase-II of Grid Connected Rooftop Solar Programme for achieving cumulative capacity of 40,000 MW from Rooftop Solar (RTS) Projects by the year 2022.  The programme will be implemented with total central financial support of Rs11,814cr, as per government data.
  • In the Phase-II Programme Central Financial Assistance (CFA) for the residential sector has been restructured with availability of 40% CFA for RTS systems up to 3 kW capacity and 20% for RTS system capacity beyond 3 kW and up to 10 kW. Read more

Yes Bank clarifies on releasing nil divergence report

Published on: 8:33 am

  • Yes Bank, in its filing to the exchanges, clarified on releasing nil divergence report and stated that information was in due compliance.
  • The exchange had sought a clarification from the bank regarding Risk Assessment Report (RRR) for the year ended March 31, 2018. In reply to that, the bank said, "it was deemed expedient to share this information through the stock exchanges to all market participants and not to withhold the same till finalisation of the Annual Results." Read more

Cabinet approves methodology for coal mine allocation

Published on: 8:33 am

  • The Cabinet Committee on Economic Affairs (CCEA) has approved the methodology for allowing the allocatee of coal mines for specified end use or own consumption to sell 25% of actual production on ROM (run-of-mine) basis in open market with payment of additional premium on such sale under the Coal Mines (Special Provisions) Act, 2015 and the Mines and Minerals (Development and Regulation) Act, 1957.
  • This new methodology provides that, in case of coal mines earmarked for specified end use or own consumption, the allocatees are mandated to utilize a minimum of 75% of its actual production (ROM basis) in specified end use plants and are allowed to sell upto 25% in open market, as per government data. Read more

Cabinet approves national electronic policy, aims $400bn revenue by 2025

Published on: 8:28 am

  • The Union Cabinet gave its approval to the National Policy on Electronics 2019 (NPE 2019), proposed by the Ministry of Electronics and Information Technology (MeitY). To promote domestic manufacturing and export in the entire value-chain of ESDM for economic development to achieve a turnover of $400bn (~Rs26 lakh cr) by 2025.
  • Redington IndiaMIRC Electronics, Dixon TechnologiesShivalik Bimetal Controls will be in focus after the government's announcement. Read more

Broker Radar for February 20

Published on: 8:14 am

JPMorgan downgraded M&M to ‘Neutral’ from ‘Overweight’; cut TP to Rs700 from Rs900
  • Downgraded the stock due to moderating growth trends and lack of catalysts.
  • Valuations are cheap but unlikely to improve in a hurry.
  • Concerns: Tractor volume growth peaking, demand slowdown and margin pressure.
JPMorgan maintained ‘Overweight’ on Indian Hotels with a TP of Rs160
  • Company reiterated its focus on balance sheet optimisation, profitable growth.
  • Company was confident of achieving its stated margin target of 25% by March 2023. Read more

Current FII data

Published on: 8:01 am

FII/DII Data:  In yesterday’s trading session FIIs sold 813cr stock in the cash market whereas DIIs bought Rs1163cr worth of stock. In the derivative market, FIIs bought 774cr of Index futures and sold Rs155cr worth of Index options. In the Stock futures segment, FIIs bought Rs163cr worth of stock futures and sold 137cr stock options.

FII View: FIIs created bullish positions in the derivative segment which is deduced by the fact that they created 5,051 long contracts in the Index Futures while simultaneously reducing 6,737 short contracts. The long-short ratio in Index Futures currently stands at 1.3x.

FII OI
(in000's)
% Chg % Chg
Since Expiry
Long/
Short Ratio
Long/Short
 Since Expiry
Index Long 191 3 75 0.9 1.3
Index Short 206 (3) 31
Index Call Long 222 (0) 23 2.4 0.8
Index Call Short 94 1 63
Index Put Long 382 (2) 34 2.2 1.1
Index Put Short 175 (2) 21

Top stocks in focus: Dr. Reddy’s, Yes Bank, Coal India, Unitech, Prestige Estates

Published on: 7:59 am

  • The US Supreme Court Chief Justice John Roberts rejected Indivior’s bid to protect Suboxone film, the company’s treatment for opioid addiction. The court also refused to block Dr. Reddy’s Laboratories and others from selling generic versions of Suboxone film, as per media reports.
  • Unitech, Prestige Estates, Indiabulls Real Estate in focus as GST Council meeting today may decide GST on real estate projects.
  • Yes Bank offered clarification on its decision to release parts of a confidential risk assessment report days after the Reserve Bank of India censured it for doing so. Read more

SGX Nifty indicates gap up opening for the Indian market

Published on: 7:58 am

  • SGX Nifty is at 10,663.50, up 50 points. Nifty saw another volatile session with morning gains getting sold into another day running, marking the count of losses to nine days.This came in even as local mutual fund flows get stronger & markets heavily oversold. Foreign investors continue to sell keeping in mind the geopolitics & the risk of a retaliation by India against Pakistan. However, markets are ignoring the ongoing global rally & better than expected earnings from most Corporates.
  • Asian indices opened in the green led by the Japanese Nikkei as overnight US stocks continued to see an uptick despite the need for a correction. Read more

Derivative watch

Published on: 7:56 am

  • Options chain data indicates support for Nifty at 10,500 followed by 10,400, while the immediate resistance on the upside is seen at 10,800 (Feb 28, Expiry).
  • India Vix continued to surge, ending the session 2.6% higher at 18.46, indicating the volatility to persist in the markets in the near-term.
  • Long build -up was seen in PFC and REC, while heavy short build-up was seen in KSCL.

What not to miss today

Published on: 7:49 am

  • Markets to open higher; Nifty support @10583, resistance 10750.
  • FIIs sold 813cr (cash), bought 774cr in Index Futures.
  • US, Asian markets up on positive US-China trade talks.
  • Dr Reddy’s in focus as US court rejects bid to block Indivior opioid drug copycat. Read more.

Bulk deal

Published on: 7:28 am

  • Engineers India: ICICI Prudential MF acquired 33.08lakh shares or 0.52% equity at Rs107.63 each.
  • National Aluminium Company: ICICI Prudential MF acquired 94.45lakh shares or 0.51% equity at Rs50.09 each.

Editors Choice

 

Blogs & Personal Finance

More