Sensex ends flat but at new closing highs; Nifty settles above 11050

All that happened in the markets today

3:39 PM

Sectoral Trend

3:37 PM

Sensex top gainers and losers

3:33 PM

Markets at Close

 

Benchmark indices were flat on Wednesday, paring gains after scaling new peaks for a sixth consecutive session, with IT stocks boosting the indexes while broader gains were capped by profit-booking.

 

The S&P BSE Sensex ended at 36,161, up 21 points while the broader Nifty50 index settled at 11,086, up 2 points. 

3:19 PM

Essar Oilfields bags Rs 32 crore well drilling contract from ONGC

 

Essar Oilfields Services India Ltd (EOSIL) on Wednesday said it has been awarded a contract worth Rs 32 crore by ONGC to drill 30 wells at the latters coal bed methane block in Bokaro in Jharkhand for one year.

 

Work is likely to commence in the next few weeks, EOSIL said in a statement. READ MORE

3:09 PM

Paushak locked 5% upper circuit as board approves share buyback proposal

 

Paushak was locked in upper circuit of 5% at Rs 1,480, also its record high on BSE, after the company’s board approved the share buyback proposal at price Rs 1,700 per share through tender offer.

 

The buyback price is 21% higher against Tuesday’s closing price of Rs 1,409 on BSE. READ MORE

3:00 PM

IT heavyweights surge past buyback price

 

Investors in information technology (IT) stocks who tendered their equity shares in recent buyback offers have missed out on the current rally, as most of the stocks are trading higher as compared to their respective buyback price.

 

 

Tata Consultancy Services (TCS), Infosys, Wipro, HCL Technologies, Wipro, Mindtree and Danlaw Technologies have rallied by up to 45% from their buyback price. These seven IT companies had bought back equity shares worth around Rs 439 billion from their shareholders, including promoters. READ MORE

2:45 PM

Nifty PSU Bank index up 10% in six trading days

 

Shares of public sector banks (PSBs) were trading higher for the second straight day on expectations of PSU recap bond allocation to happen before the Budget.

 

State Bank of India, Punjab National Bank (PNB), Syndicate Bank, Bank of India and Bank of Baroda were up in the range of 1% to 4% on the National Stock Exchange (NSE). READ MORE

2:30 PM

Market Check

S&P BSE Sensex	36,156.25		0.05%
Nifty 50	11,084.65		0.01%
S&P BSE 200	4,874.84		-0.12%
Nifty 500	9,855.70		-0.22%
S&P BSE Mid-Cap	17,974.51		-0.58%
S&P BSE Small-Cap	19,493.06		-0.80%

2:15 PM

Budget 2018: In first 8 months of FY18, states have gone slow on capex

 

Hemmed by rising expenditure on account of farm loan waivers and Pay Commission proceeds, state governments have slowed down the pace of capital expenditure in the current financial year.

 

An analysis of 17 state government accounts reveals that nine states have so far spent only 36 per cent of their budgeted capital expenditure in the current financial year (April to November), compared with 47 per cent over the same period the previous financial year. Capex by two other states is marginally lower than last year, while only six states have spent a greater proportion of their budget this year compared to last year. READ MORE

2:00 PM

Airtel and Idea stocks fall after Reliance Jio cuts tariffs

 

Shares of Indian telecom service providers fell on Wednesday after Reliance Jio Infocomm Ltd cut tariffs to counter bigger rival Bharti Airtel Ltd's revision in data plans. Jio, the telecom arm of Reliance Industries, said on Tuesday the revision was "a response to Airtel's tariff changes", which would help it maintain "its price leadership".

 

Shares of Airtel declined as much as 6.22% to Rs 461.5 on Wednesday, their lowest since October 18, 2017. Idea Cellular, India's third-biggest telecom network operator, dropped as much as 5.7% to its lowest since Dec. 18, 2017 ahead of its quarterly results later in the day. READ MORE

1:47 PM

After 19 splits in 2017, forking could divide Bitcoin 50 times in 2018

 

Bitcoin God arrived last month. Bitcoin Pizza was delivered in January. Bitcoin Private’s issuance date is... still a secret.

 

They’re just a few of the growing stable of so-called forks -- a type of spinoff in which developers clone Bitcoin’s software, release it with a new name, a new coin and possibly a few new features. Often, the idea is to capitalise on the public’s familiarity with Bitcoin to make some serious money, at least virtually. READ MORE

1:33 PM

10 years of stability shows gold is best hedge against risks in equities

 

Volatility in gold prices last year has been the lowest since 2005, indicating that it is now re-emerging as an asset class alternative to hedge against risks in other investment avenues such as equities. Volatility in gold prices touched 7.4 early this month and is now at 7.6, the lowest since May 2005.

 

Sudheesh Nambiath, Senior precious metal analyst, SE Asia, GFMS Thomson Reuters, says “Volatility is low across various assets, and the reversal in its trend is historically associated with uncertainty. Markets may not have yet factored in potential risks. And any risk event would result in increased volatility, which tends to support a case for higher gold prices.” READ MORE

1:16 PM

JLR's performance to blame? Why Tata Motors is off the radar for most FIIs

 

A moderating sales growth amid macroeconomic headwinds and foreign exchange fluctuations at Tata Motors’ UK subsidiary, Jaguar Land Rover Automotive, has been weighing on investor sentiments making the stock less attractive for foreign investors.

 

Shareholding of foreign institutions in Tata Motors that includes foreign institutional investors and American Depository Receipt (ADRs) holders has dropped to the lowest in eight quarters—to 37.7% in the December quarter of fiscal 2017-18 from 39.9% in fiscal 2015-16. FII holding in the stock has plunged to a 10-quarter low of 21.9% in the December quarter of fiscal 2017-18 from 21.9% in fiscal 2014-15. CLICK HERE FOR FULL STORY

1:04 PM

What is fueling IndiGo's profit? Things to look for in airline's Q3 results

 

Higher yields (revenue per passenger) and better fuel savings will result in robust third-quarter profit for IndiGo's on a year on year basis.'

 

Here are three things to look for in InterGlobe Aviation (IndiGo) results which will be announced later in afternoon.

12:45 PM

Airtel vs Reliance Jio: Why Street continues to have faith in Bharti Airtel

 

Despite a poor December quarter performance marked by a 15% fall in average revenue per user (Arpu) and a 93% drop in India mobile profit before interest and taxes (PBIT), brokerages believe Bharti Airtel is well placed to ride out the Reliance Jio (RJio) pricing aggression.

 

Given the recent price cuts by RJio and indications that an Arpu increase for the sector is still a couple of quarters away, there are a few moving parts that could help boost the company’s financials. The first is the completion of two of the company’s acquisitions. CLICK HERE FOR FULL STORY

 

12:31 PM

Sectoral Trend

12:14 PM

Liquor stocks trade lower; United Spirits down 9% post Q3 results

 

Shares of liquor companies were under pressure with United Spirits falling 9% on BSE in intra-day trade after reporting disappointing set of numbers for the quarter-ending December 2017 (Q3FY18).

 

Radico Khaitan, Empee Distilleries and Jagatjit Industries, also, dipped over 4%, while Globus Spirits, Som Distilleries & Breweries, Associated Alcohols & Breweries, Tilaknagar Industries and United Breweries were down in the range of 2% to 4% on BSE. CLICK HERE FOR FULL STORY

12:02 PM

Banks' non-performing assets: Where have all the risk managers gone?

 

The government decision between 2004 and 2009 to award captive coal mines for power projects unleashed the Indian corporate entities’ animal spirit. And, the demand for long-term project loans zoomed.

 

When bankers and analysts now talk about stressed loans of more than Rs 10 trillion, the 10 years from 2004 to 2014 become important. For, this is the period when these loans were sanctioned and disbursed. The period after the global credit crisis of 2008 is of particular importance. CLICK HERE FOR FULL STORY

11:44 AM

Budget 2018: Fear of outright populism overdone, say analysts

 

The current market rally a month before the Budget proposals are announced on February 1 is the best in over a decade, with the S&P BSE Sensex and the Nifty50 indices gaining over six per cent so far in calendar year 2018 and crossing the 36,000- and 11,000-levels, respectively, for the first time ever on Tuesday.

 

Though most analysts do not expect the proposals to be hugely populist, brokerages would keep a close watch on how the government manages the fiscal situation a year before the country goes to polls scheduled in May 2019, and changes, if any, to the existing norms of long-term capital gains tax (LTCG) on equities. READ MORE

11:30 AM

Market Check

S&P BSE Sensex	36,169.99		0.08%
Nifty 50	11,090.15		0.06%
S&P BSE 200	4,878.85		-0.04%
Nifty 500	9,863.70		-0.14%
S&P BSE Mid-Cap	18,013.46		-0.36%
S&P BSE Small-Cap	19,545.36		-0.54%

11:16 AM

After rallying 3,985% since 2008, V-Guard bets on phone-operated fans

 

After a 3,985% rally since its 2008 listing, V-Guard Industries Ltd. -- which has evolved into one of India’s leading consumer-durable companies -- has found its next big growth plan: Internet of Things.

 

The company, which started 40 years ago with a mere Rs 100,000, now has products ranging from food mixers to fans and is betting that rising personal incomes in the world’s second-most populous nation and more than a billion mobile-phone connections will boost its sales further. READ MORE

11:01 AM

TCS market cap crosses Rs 6 trillion, surpasses Reliance Industries

 

Tata Consultancy Services saw its market capitalisation cross the Rs 6-trillion mark, after the stock hit a new high on Wednesday. The information technology (IT) giant has become the second firm after Reliance Industries to achieve this milestone. READ MORE

10:44 AM

MindTree Q3 result: Deal wins, strong traction in digital are main triggers

 

The MindTree stock has gained 21 per cent in two trading sessions, riding on strong December quarter (Q3) results, robust revenue visibility and improved margin outlook. These have led analysts to revise upwards their earnings estimates for FY19 and FY20.

 

The outperformance in Q3 comes after a muted show in the past, which was dragged down by two acquisitions and higher costs. The company had cut its revenue forecast earlier to a high single-digit from a low double-digit growth in FY18. READ MORE

10:32 AM

Alembic hits record high as board approves share buyback proposal

 

Alembic hits a new high of Rs 72, up 8% on BSE in early morning trade after its board approved the proposal of buyback of equity shares of the company at price of Rs 80 per share through tender offer.

 

“The board of directors approved the proposal for buy-back of 10.2 million equity shares of the Company having face value of 2 (representing up to 3.84% of the total paid-up equity share capital of the Company) at a price not exceeding Rs 80 per share for a total consideration not exceeding Rs 820 million,” Alembic said in a regulatory filing. READ MORE

10:17 AM

L&T Technology Services surges over 10% on good Q3 results

 

L&T Technology Services (LTTS) surged 10% to Rs 1,116 on the National Stock Exchange in early morning trade after the company reported sequential US dollar revenue growth of 8.3% at $ 151 million in October-December quarter (Q3FY18). On constant currency basis revenue growth during the quarter under review at 8.3% over the July-September (Q2FY18) quarter.

 

On rupee term, the company’s net profit grew 2.8% at Rs 1,263 million in Q3FY18 against Rs 1,152 million in Q2FY18. Revenue was up 7.6% at Rs 9,691 million over the previous quarter. READ MORE

10:00 AM

Why are IT stocks outperforming

 

The Infotech industry faces headwinds but it also has some factors running in its favour at the moment. One issue is that the dollar has lost a lot of ground over the past year. Indian information technology (IT) companies derive the bulk of their revenues from the US.

 

The weaker the dollar, the less that income translates to, in rupee terms. Also, given that the rupee has gained significantly versus dollar, the Indian IT firms could lose their competitiveness to some degree. READ MORE

9:47 AM

Bitcoins: Investors need to pay 20% advance tax on cryptocurrency earnings

 

In the midst of all the uncertainties around cryptocurrency, there is some clarity on at least one aspect.

 

Investors, who have made a fortune selling the virtual currency, will need to pay 20% advance tax on the earnings to avoid any action by the income tax (I-T) department. CLICK HERE FOR FULL STORY

9:30 AM

Exit or stay invested? Too-fast-too-soon gains put small investor in a spot

 

It isn't easy being a retail investor right now. The benchmark indices have moved up significantly in the past year and the euphoria sees no signs of abating.

 

The rally has largely been driven by the surfeit of domestic money and on expectations that earnings will pick up in the coming quarters. Retail investors are bulls by nature and their participation goes up when the market touch new highs. READ MORE

9:22 AM

Nifty Bank breaks 3-day winning streak

9:20 AM

Sectoral Trend