Market rundown by Vinod Nair, Head of Research, Geojit Financial Services
"Market smartly recouped from the yesterdays losses which was triggered by RBIs hawkish policy and weakness in global market. However, RBI reiterating an economic growth of 6.7% for FY18 uplifted the sentiment. Upcoming state election in Gujarat and rupee movement against dollar ahead of US tax reform will be keenly watched for further momentum in the market."
3:49 PM Nifty Auto gained nearly 2%
3:43 PM Stock in News
Airtel up 6% after the company joined hands with Intex to launch a range of affordable 4G smartphones starting at Rs 1,649
3:42 PM Realty index rebounds after falling 4 sessions
3:40 PM Sectoral Trend: All indicesended the day in green
3:38 PM Top Sensex gainers and losers
3:36 PM Broader Markets
Broader markets outperformed the benchmark indices a bit with BSE Midcap and BSE Smallcap up 1.4% and 1.3% respectively
3:34 PM Markets at close
Benchmark indices ended higher with Sensex ending over 350 points higher while Nifty ending firmly above 10,150-mark, bouncing back after two days of losses on Thursday, led by banking, telecom, metal and auto stocks.
The S&P BSE Sensex ended at 32,949, up 352 points while the broader Nifty50 settled at 10,166, up 122 points
DLF, Gail, Maruti Suzuki hit 52-week high
DLF, Den Networks, Cyient and ISGEC Heavy Engineering are among 10 stocks from the S&P BSE 500 index hit their respective 52-week highs on the BSE in intra-day trade after nearly one percentage point gain in the benchmark Sensex.
Of these 10 stocks,Gail (India), Maruti Suzuki India, TVS Motor Company, Aegis Logistics, Biocon and KEC International have touched their respective record highs on Thursday. READ MORE
Promoters offload shares to pare debt
Promoters of five companies - Bharti Infratel, Escorts, McLeod Russell India, Relaxo Footwear and Action Construction Company - have sold equity shares worth nearly Rs 4,000 crore through open market transactions in the past three weeks to cut debt in their respective company's books.
According to disclosures made by the companies to the stock exchanges, institutional investors led by foreign portfolio investors (FPIs) have bought these shares. Experts attribute this to buoyant markets that have provided an opportunity to promoters to raise funds via stake sale. Read More
Land Rover, Range Rover drive JLR sales up 10% to 52,332 units in Nov
Tata Motors-owned Jaguar Land Rover (JLR) today reported 10 per cent increase in retail sales at 52,332 units in November as compared with the same month last year.
The company said sales during the month were primarily driven by the introduction of the new Land Rover Discovery and the Range Rover Velar. Read More
Sebi proposes to allow MFs and portfolio managers in commodity derivatives
Market regulator Securities and Exchange Board of India (Sebi) has proposed to permit Mutual Funds (MFs) and portfolio managers (PMs) to participate in the exchange-traded commodity derivatives market. Sebi on Thursday issued a consultation paper seeking public views on this proposal, besides how they should be allowed and what regulatory framerwork should be put in place for this.
This is the second move by Sebi to allow institutional participants in commodity derivatives. Earlier, the regulator had allowed category-3 alternative investment funds or hedge funds.
The latest proposal of allowing MFs and PMs will be the second in the direction of broad-basing the commodity derivatives segment to improve liquidity and include institutional players. READ MORE
Avenue Supermarts, Tech Mahindra gain after block deals
Shares of Avenue Supermarts, which owns and operates D-Mart retail chain, and IT consulting & software company Tech Mahindra have moved higher by upto 6% on the bourses after the huge block deals executed on these counters.
Tech Mahindra was up 5% at Rs 497, bouncing back 6% from early morning low on the National Stock Exchange (NSE). Till 01:51 PM; around 6.35 million equity shares representing 0.65% stake in the company changed hands on the NSE, the exchange data shows. Read More
2:12 PM Sectoral Trend
HEDGING STRATEGIES AHEAD OF THE GUJARAT ELECTION OUTCOME
Depending on the election result outcome Nifty may swing wildly on either side. More over Nifty has moved up by 23% in the current year 2017 till now, so it’s always advisable to hedge your portfolio ahead of the big event like Gujarat election outcome. However one should keep in mind, hedging always comes with cost. If you hedge your portfolio, and market rises, you will lose only to the extent of premium paid while value of your portfolio will rise along with the markets.
Strategy 1) Buy Nifty December 10000 Put @115
Strategy 2) Buy Nifty December 10000 Put @115 and Simultaneously sell 9700 Put at Rs 40.
(BEAR PUT SPREAD STRATEGY)
(HDFC Securities Report)
1:40 PM Top Sensex gainers and losers
1:22 PM Market Watch
Claris Lifesciences extends fall after board approves delisting proposal
Claris Lifesciences was down 3% to Rs 352, falling 6% from its early morning high of Rs 374 on the BSE on Thursday, after the board of directors of the company approved the delisting proposal received from the promoter Athanas Enterprise Pvt Ltd. The stock ended 1% lower at Rs 362 on Wednesday.
"The promoter/promoter group of the company has made a voluntarily delisting offer representing 49.87% of the paid-up share capital of the company held by public shareholders," Claris Lifesciences said in a BSE filing. Read More
Ready to extend deadline for Aadhaar linking till March 31: Govt to SC
The Centre today informed the Supreme Court that it was willing to extend till March 31 next year the deadline fixed for mandatory linking of Aadhaar for availing various services and welfare schemes.
The Supreme Court now will be setting up a five-judge Constitution Bench next week to hear several pleas seeking an interim stay on the Centre's decision of mandatory linking of Aadhaar. Read More
Shalby IPO subscribed fully; issue closes today
The initial public offer of Shalby Ltd, the Ahmedabad-based multi-specialty hospital chain, was oversubscribed 1.08 times in morning session on the last day of the bidding today.
The IPO, which aims to raise Rs 504 crore, received bids for 1,57,11,900 shares against the total issue size of 1,45,21,686 shares - a subscription of 1.08 per cent - data available with NSE till 11.30 am showed. Read More
Oil edges up after drop in U.S. crude inventories, but soaring output weighs
Oil prices inched up on Thursday on a decrease in U.S. crude inventories, but rising gasoline stocks and crude production weighed on the market.
U.S. West Texas Intermediate (WTI) crude futures were at $56.09 a barrel at 0101 GMT, up 13 cents, or 0.23 percent from their last settlement.
Brent crude futures , the international benchmark for oil prices, were at $61.32 a barrel, up 10 cents, or 0.16 percent. Read More
Rice shares in focus; LT Foods, Kohinoor Foods, Chaman Lal Setia up over 6%
Shares of rice producers rallied by upto 20% on the BSE on back of heavy volumes. LT Foods, Kohinoor Foods and Chaman Lal Setia Exports have rallied more than 6% on the on the Bombay Stock Exchange (BSE), as compared to 0.64% rise in the S&P BSE Sensex at 10:45 AM.
Chaman Lal Setia Exports was locked in upper circuit of 20% at Rs 143, also its 52-week high on the BSE. The trading volumes on the counter more than tripled with 357,000 shares changed hands so far against an average 103,000 shares were traded in past two weeks on the BSE. In past two trading sessions, the stock rallied 30% from Rs 110 on Tuesday, November 5, 2017. Read More
Top 10 equity schemes give 27.5% returns this calendar yr, HDFC Equity tops
India’s top 10 largest equity schemes, which collectively manage an asset size of nearly Rs 1.7 lakh crore, have made an average return of 27.5% so far this calendar year. During the same time, key stock index Nifty50 returned about 23.6%. HDFC Equity continues to be the largest pure-equity scheme.
All these schemes have gained a considerable size over the years and the pace of growth has been remarkable in the past few years. Over Rs 2 lakh crore of fresh inflows have gone into equity schemes over the last three years. A substantial chunk of inflows is coming in the form of systematic investment plans. READ MORE
IRB Infrastructure hits 11-month low; stock dips 7%
IRB Infrastructure Developers hit an 11-month low of Rs 195, down 7% on the BSE on the back of heavy volumes after the company said the Central Bureau of Investigation (CBI) on Wednesday filed a charge sheet against peoples including senior officials of IRB Infrastructure in the Sessions Court, Pune in the matter of an alleged illegal purchase of government land by its subsidiary, Aryan Infrastructure Investments Private Limited (AIIPL).
Based on documents received under the Right to Information (RTI) Act, Satish Shetty had filed a cheating and forgery case with Lonavala police in October 2009 against IRB chairman and managing director Virendra Mhaiskar and others, alleging illegal purchase of government land in Ozarde and Pimploli villages in Maval tehsil of Pune district, the PTI report suggested. READ MORE
Bitcoin surges past $15,000 to trade at all-time high
Popular cryptocurrency Bitcoin on Thursday soared to a record high, surpassing $15,000, continuing its surge from below $1,000 at the beginning of this year. The surge was seen ahead of the launch of Bitcoin futures on Chicago-based CBOE coming Sunday.
The move opens the door to added regulation but also more mainstream adoption, as Bitcoin futures and other derivatives would make it easier to trade in the new asset class.
The cryptocurrency had hit a high of $15,340 per unit and a low of $12,662.86, as of 11 am IST, according to coingecko.com. READ MORE
India Inc seeks income tax cap of 20% in pre-budget meet with Jaitley
Bringing down the maximum Income Tax slab to 20 per cent, convergence to three-four GST slabs and bringing all items under it were among the demands made to Union Finance Minister Arun Jaitley on Wednesday by industry and trade representatives.
During his pre-Budget consultations, Jaitley urged business leaders to invest in the infrastructure sector to build a stronger India.
He said private investment, along with public and foreign investment, is the key to boost growth and create more job opportunities in India. READ MORE
Finance Minister Arun Jaitley. Illustration: Ajay Mohanty
10:49 AM Market Watch
Capital-hungry banks seek MF backing for $3-bn QIPs
Public sector banks (PSBs) are seeking the backing of mutual funds (MFs) to ensure smooth sailing of their qualified institutional placements (QIPs). Over half a dozen sate-owned banks will soon tap the market for equity fundraising worth Rs 18,300 crore (nearly $3 billion). Approaching institutional investors ahead of a fundraising programme, ‘roadshow’ in market parlance, is a common practice. Read More
10:20 AM Nifty Auto index gains nearly 1% post RBI policy
L&T gains on order win of Rs 1,600 crore from HPCL
Larsen & Toubro (L&T) was up 1.4% at Rs 1,207 on the BSE in early morning trade after the construction & engineering giant said that its arm L&T Hydrocarbon Engineering (LTHE) has won order worth of over Rs1,600 crore from Hindustan Petroleum Corporation Limited (HPCL).
The project is part of HPCL Visakh Refinery Modernisation Project (VRMP) and involves engineering, procurement, construction and commissioning of 3.053 MMTP full conversion hydrocracker project.
How the US tax cut can benefit Indian IT firms
The approval by the US Senate for tax cut Bill is expected to spur investments in the US and rub off positively on Indian IT companies. The sector, which is struggling with sluggish demand from clients in the US, could benefit once the Bill, which envisages a reduction of corporate tax to 20 per cent from 35 per cent, becomes a law. This is expected to happen in the March quarter of 2018. Despite weak broader markets, most IT firms, barring Wipro, ended in the green on Wednesday.
Analysts at Credit Suisse say business investments are likely to be immediately boosted by tax cuts and new depreciation rules. CEO confidence surveys, according to them, are signalling optimism, partly based on expected increases in future post-tax earnings. In fact, if the Bill delays tax cuts until 2019 but enacts generous depreciation rules in 2018, the incentive to invest immediately will be even stronger, they added. READ MORE
9:28 AM Sectoral trend
9:21 AM Top Sensex gainers and losers
9:19 AM Broader Markets
In broader markets the BSE Midcap and BSE Smallcap indices were up 0.4% each
9:18 AM Markets open
Benchmark indices open higher after Reserve Bank of India (RBI) kept its policy rate steady on Wednesday, as widely expected, after inflation accelerated to a seven-month high and stronger economic growth reduced the need for monetary stimulus.
At 9:17 am, the S&P BSE Sensex was trading at 32,703, up 106 points while the broader Nifty50 index was trading at 10,070, up 26 points
Shalby IPO subscribed 32% on Day Two
The initial public offer (IPO) of Shalby received bids for 66.41 lakh shares on the second day of the bidding for the IPO today, 6 December 2017, data on NSE showed as at 17:00 IST. The IPO was subscribed 0.32 times. The price band of the IPO has been fixed at Rs 245 to Rs 248 per share. The IPO opened for subscription on 5 December 2017. The issue closes on 7 December 2017.
Ahead of the opening of the IPO, the IPO committee of the board of directors of the company at its meeting held on 4 December 2017, finalized allocation of 60.70 lakh equity shares to 13 anchor investors at Rs 248 per share. READ MORE
Future Supply Chain Solutions IPO subscribed 32% on Day One
The initial public offer (IPO) of Future Supply Chain Solutions received bids for 2.1 million shares on the first day of the bidding for the IPO today, 6 December 2017, data on NSE showed as at 17:00 IST. The IPO was subscribed 0.32 times. The price band of the IPO has been fixed at Rs 660 to Rs 664 per share. The IPO opened for subscription on 6 December 2017. The issue closes on 8 December 2017.
Ahead of the opening of the IPO, the IPO committee of the board of directors of the company at its meeting held on 5 December 2017 finalized allocation of 2.9 million equity shares to 16 anchor investors at Rs 664 per share. READ MORE
Stock brokers seek status quo on long-term capital gains tax
Association of National Stock Exchange Members (Anmi), the body of brokers on the bourse, has opposed a recently aired recommendation to remove the exemption on long-term capital gains (LTCG) tax.
Anmi representatives met the chairman of the Central Board of Direct Taxes to urge no change in the tax structure for the capital markets.
"Doing away of the LTCG benefit will have a major impact on institutional investors and impact trading volumes significantly," said K Suresh, president of Anmi.
Both the major bourses, BSE and the National Stock Exchange (NSE), have recommended an end to the LTCG tax exemption, which took effect from 2005. BSE has said the exemption causes a loss of Rs 49,000 crore annually to the exchequer; both exchanges say the rebate is being misused to launder undisclosed wealth. READ MORE
Current price: Rs 232
Target price: Rs 227
Keep a stop at Rs 235 and go short. Add to the position between Rs 228 and Rs 229. Book profits at Rs 227
Current price: Rs 653
Target price: Rs 643
Keep a stop at Rs 660 and go short. Add to the position between Rs 644 and Rs 646. Book profits at Rs 643
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Perspective on Monetary policy from Dhiraj Relli, MD & CEO at HDFC Securities
As expected, the MPC of RBI kept the key interest rate (repo rate) unchanged at 6% maintaining a neutral stance. It raised the fiscal second half inflation estimate range marginally to 4.3-4.7% (from 4.2-4.6% earlier) while highlighting dangers to meeting the fiscal deficit target for FY18. It noted several factors that could help push growth in the coming quarters.
Currently we are witnessing rising spreads between 10 year bond yield and repo rate and between the top rated and bottom rated borrowers. Also liquidity is back to normal levels in peak season. At such a time, interest rates in the system have little room on the downside in the next few months. We anticipate no further rate moves in FY18.
Infosys files settlement plea with Sebi over Bansal pay
Infosys on Wednesday said it had approached market regulator, the Securities and Exchange Board of India (Sebi), to settle issues arising out of alleged disclosure lapses in the severance package paid to former chief financial officer (CFO) Rajiv Bansal.
The company, led by former chief executive officer (CEO) Vishal Sikka, had sanctioned the severance package of Rs 17.38 crore in October 2015. Bansal was sacked over differences with Sikka over the acquisition of Israeli technology firm Panaya for $200 million. Sikka had reportedly not taken approval of the nomination and remuneration committee (NRC) and the audit committee of the Infosys board before sanctioning the package, leading to questions on disclosure norms of the company. READ MORE
Recapitalisation to eradicate boom-and-bust lending cycles in PSBs: RBI Chief
Reserve Bank Governor Urjit Patel said the planned Rs 2.11-trillion fund infusion for state-run banks is not only a recapitalisation package but to ensure that the seeds of the boom-and-bust-lending cycle are not sown in future.
The Nifty50 futures on the Singapore Stock Exchange were trading 5 points higher at 10,077 indicating a flat opening for the domestic market.
Asia shares hover near two-month low
Asian shares held close to a two-month low on Thursday as softer oil and copper as well as U.S. policy uncertainty kept sentiment in check, while high-tech stocks struggled to recover after a searing sell-off.
MSCI’s broadest index of Asia-Pacific shares outside Japan was barely changed in early trade, still hovering near a two-month low touched the previous day. From its 10-year peak hit on Nov. 23, it has slipped 4.6%.
Japan's Nikkei gained 1.2% after having suffered its biggest fall since late March on Wednesday.
MSCI's gauge of stocks across the globe hit a two-week low on Wednesday while Wall Street's benchmark S&P 500 index edged down for its fourth straight session of losses.
US markets end lower
A gauge of global stocks fell on Wednesday and benchmark government bond yields declined as investors weighed signs of risk in the markets and with US policy.
The Dow Jones Industrial Average fell 39.73 points, or 0.16%, to 24,140.91, the S&P 500 lost 0.3 points, or 0.01%, to 2,629.27 and the Nasdaq Composite added 14.16 points, or 0.21%, to 6,776.38.
Nifty outlook and top trading ideas by Prabhudas Lilladher
BHEL - BUY
CMP: Rs 90.30
TARGET: Rs 99
STOP LOSS: Rs 87
The stock has been forming a series of higher bottom formation pattern in the daily chart and overall is in an upward trending mode showing potential and strength to rise further upward. The RSI has been showing a positive trigger and can scale upward to indicate a positive bias. With decent volume participation witnessed, we recommend a buy in this stock for an upside target of 99 keeping a stop loss of 87
Nomura on RBI policy
The rise in the inflation forecast is hawkish, but the dissenting vote suggests some dovish views persist at the RBI. External conditions remain a major market focus in the near term amid the recent equity sell-off. We remain constructive on INR, owing to a credible monetary policy, recovering growth, BOP and FX reserve positions. The Gujarat elections may provide support in the near term, while RBI USD-buying FX intervention may be constrained by the US Treasury’s focus. Rates: We expect the rates market’s focus to now shift towards developments on the fiscal front and commodity prices. We expect a range-bound market in the near term; however, we believe rates markets are beginning to offer value from a medium-term perspective.
8:47 AM Welcome to Business Standard's market live blog. Catch all the action here as it happens
First Published: Thu, December 07 2017. 15:30 IST