Sensex ends flat, Nifty holds 10,600 ahead of Q3 earnings season

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3:39 PM

Nifty IT rose over 2% ahead of Q3 earnings season

Source: NSE

3:38 PM

Sectoral Trend

Source: NSE

3:36 PM

Top Sensex gainers and losers

Source: BSE

3:34 PM

Broader Markets

Broader markets underperformed the benchmark indices with BSE Midcap index down 0.6% while BSE Smllcap ended 0.1% lower

3:32 PM

Markets at Close

Benchmark indices settled flat on Wednesday as investors remained cautious ahead of key corporate earnings later this week and the federal budget next month.

The S&P BSE Sensex ended at 34,433 down 10 points while the broader Nifty50 index settled at 10,432, down 4 points

3:26 PM

Tata Group shares rally; Tinplate, Tata Sponge, Tata Metaliks up over 10%

 

Shares of Tata Group companies were trading higher by up to 18% on back of heavy volumes in otherwise range-bound market on Wednesday.

 

Tinplate Company of India, Tata Sponge Iron, Tata Metaliks and Tayo Rolls were up in the range of 10% to 18%, while Nelco, Tata Investment Corporation, Oriental Hotels, Tata Elxsi, Tata Consultancy Services (TCS), TRF and Trent up between 2% and 6%.

 

Five stocks – Oriental Hotels, Tata Investment Corporation, Tata Metaliks, Tata Sponge Iron and Tinplate Company of India– have hit their respective all-time highs on BSE in intra-day trade today. READ MORE

3:15 PM

EPF to ELSS: Five key investments you can make under Section 80C

 

With the end of the financial year fast approaching, the employed need to furnish their Section 80C investments, which has a combined limit of Rs 150,000, to employers.

 

If you haven’t still made any investments, here are five key ones

 

3:05 PM

TCS nears three-year high ahead of December quarter results

 

Tata Consultancy Services (TCS) was up 3% at Rs 2,785 on BSE in noon deals, trading nears to its three-years high, ahead of October-December quarter (Q3FY18) earnings on Thursday, January 11, 2018. The company’s board will also consider a third interim dividend.

 

The stock trading at its highest level since March 4, 2015. It is less than 2% away from its all-time high of Rs 2,834 touched on October 7, 2014 on BSE in intra-day trade.

 

Analysts at Kotak Securities expect constant currency (c/c) revenue growth of 1.4% and negligible cross currency impact in Q3FY18. Growth would be impacted by usual seasonal furloughs and soft BFS in North America. READ MORE

2:51 PM

Retail shares gain on Cabinet nod for 100% FDI in single brand retail

 

Shares of retail companies have rallied by up to 8% after the Cabinet cleared 100% foreign direct investment (FDI) through automatic route in single brand retail trading.
 

Monte Carlo Fashions, Future Consumer, Indian Terrain Fashions, Zodiac Clothing Company, V-Mart Retail and Future Market Networks were up in the range of 4% to 9% on BSE. READ MORE

2:35 PM

FDI norms relaxed, foreign airlines can invest up to 49% in Air India

 

The government on Wednesday relaxed FDI norms in various sectors such as single brand retail and allowed foreign airlines to invest up to 49 per cent in Air India. The decision was taken during the Cabinet meeting chaired by Prime Minister Narendra Modi here.

 

The Cabinet allowed overseas investors to invest 100 per cent FDI (foreign direct investment) in single brand retail trading and construction development without any government approval, an official statement said. "Foreign airlines allowed to invest up to 49 per cent under approval route in Air India," the statement said.

2:17 PM

Europe Trade

European equities opened lower as investors watch out for corporate earnings and fresh data. The pan-European Stoxx 600 was down by 0.13% with most sectors trading in negative territory.

 

2:02 PM

Asia Check

 

Asian shares flinched from testing their 2007 record peak on Wednesday, as investors booked profits in high-tech shares while oil prices hit three-year highs due to production cuts and a fall in inventories.

 

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.5% after six straight days of gains until Tuesday, that had taken it within a stone’s throw from the record high touched in November 2007

 

Japan’s Nikkei also shed 0.3%, slipping from 26-year highs hit the day before.

1:41 PM

Analysts warn of overheated market after oil prices hit highest since 2014

 

Oil prices hit their highest levels since 2014 on Wednesday due to ongoing production cuts led by Opec as well as healthy demand, although analysts cautioned that markets may be overheating.

 

A broad global market rally, including stocks, has also been fuelling investment into crude oil futures. READ MORE

1:20 PM

AirAsia India is planning an IPO

 

Tony Fernandes, the group chairman of AirAsia group on Tuesday said that the company was looking for a public listing and will seek shareholders' approval for appointing bankers for the process.
 

“AirAsia in the process of appointing a banker to find a partner for our profitable and successful shared services centre... AIRASIA will be seeking approval at the next AIRASIA India board to pick a banker to start prelim process. Very valuable asset with huge growth potential. Analysts giving zero value to AirAsia India. Not far from 20 planes and a potential IPO,” Fernandes said in a series of tweets. READ MORE

1:02 PM

Earnings preview: Most brokerages see muted December quarter for IT sector

 

For Indian information technology (IT) companies, the October-December quarter of 2017-18 (Q3) is expected to be a muted one, weighing on their overall revenue performance. Though demand and revenue acceleration during the quarter could provide some optimism, implications of the US tax reforms and potential changes to the visa rules in that country remain an overhang.

 

Investors are now likely to focus on demand outlook for calendar year 2018 and, more importantly, industrialisation of digital services and Indian IT’s participation in that. For 2018 earnings, they would also look to margin outlook and the IT budget trend going forward. 

 

Here's what brokerages expect

12:46 PM

Sebi mulling lower limit of Rs 100 mn m-cap for firms to stay listed

 

The Securities and Exchanges Board of India may be planning to impose a minimum market capitalisation (m-cap) requirement of Rs 100 million for companies to stay listed, Livemint reported, citing sources. The move is said to be aimed at removing penny stocks from the markets.

 

Penny stocks are generally valued under Rs 10. These stocks are said to be highly risky because of their low liquidity. Their market capitalisation is usually very less. READ MORE              

12:30 PM

Market Check

 

S&P BSE Sensex	34,357.49		-0.25%
Nifty 50	10,607.10		-0.28%
S&P BSE 200	4,731.76		-0.29%
Nifty 500	9,608.85		-0.33%
S&P BSE Mid-Cap	18,094.12		-0.44%
S&P BSE Small-Cap	19,826.28		-0.43%

12:04 PM

Sectoral Trend

Source: NSE

11:47 AM

Oil exploration shares gain; Aban Offshore up 9%

 

Shares of oil exploration, equipment and services companies were trading higher on the bourses by up to 9% in otherwise subdued market on higher crude oil prices.
 

Aban Offshore surged 9% to Rs 238, while Jindal Drilling & Industries soared 6% to Rs 227 and Hindustan Oil Exploration by 5% to Rs 146 on BSE in intra-day trade. Oil India hit 52-week high of Rs 388, up 3% and Oil and Natural Gas Corporation (ONGC) up 1.5% on BSE. READ MORE

11:33 AM

Realty stocks' rally is riding on hope; brokerages to be bullish on sector

 

The BSE’s real estate index has been consistently outperforming the S&P BSE Sensex. In the past month, the Sensex grew 3.6%, the realty index was up 11.9%. And this is not a one-month phenomenon.

 

The BSE realty index rose 99.3% in the past year while the Sensex delivered returns of 28.9%. Many brokerages continue to be bullish on the sector. In a recent report, ICICI Securities says that lower interest rates on home loans, correction in property prices over the last two years. READ MORE

11:17 AM

Balasore Alloys to acquire 70% stake Zimbabwe Alloys; stock surges 13%

 

Balasore Alloys moved higher by 13% to Rs 89.90 on BSE after the company announced the acquisition of 70% stake in Zimbabwe Alloys for cash payment of $16.47 million.
 

“A further payment of $74.26 million to creditors, towards injection of working capital and for a capital expenditure.

 

The payments towards the creditors and members to the company will be paid in a staggered manner”, the company said. READ MORE

11:03 AM

Market check

S&P BSE Sensex	34,439.00		-0.01%
Nifty 50	10,638.40		0.01%
S&P BSE 200	4,746.98		0.03%
Nifty 500	9,649.45		0.09%
S&P BSE Mid-Cap	18,192.57		0.10%
S&P BSE Small-Cap	19,969.10		0.29%

10:46 AM

Mid-cap information technology firms outshine larger peers with 25%

 

Mid-cap information technology (IT) stocks outperformed the Nifty IT and Nifty in the December quarter. While the mid-cap IT pack has generated returns of over 25 per cent during this period, led by stocks such as L&T Infotech and KPIT Technologies, which have gained over 40 per cent each, the Nifty and Nifty IT have generated returns of 7-10 per cent.

 

The larger tier-1 information technology (IT) companies are struggling to grow their revenues. The second tier set of companies have been consistently been ahead of them. READ MORE

10:34 AM

Mutual fund equity folios addition hits 10-year record high of 49.3 million

 

The growth rate of equity accounts has hit a 10-year high in the current financial year, with nearly 31,000 equity folios being opened a day till December.
 

This is the fourth consecutive year when growth has been reported in folio numbers after a continuous five-year decline since the post-2008 global financial crisis till FY14.
 

Currently, the pace of equity folio addition has risen nearly five-fold compared to 2014-15.
 

Currently, at a record high of 49.3 million equity folios, the Rs 22-trillion mutual fund industry is growing its equity investors’ base at a pace last seen during 2007-08. READ MORE

10:13 AM

Infinite Computer rallies 38% in two days on voluntary delisting plan

 

Infinite Computer Solutions (India) hit a new high of Rs 385, up 15% on BSE, extending its Tuesday’s rally on BSE said that the company said its board will meet on Friday, January 12, 2018 to consider the proposal of voluntary delisting.
 

The stock of IT consulting & software firm zoomed 35% in past two trading sessions from Rs 279 on Monday.
 

Infinite Computer Solutions (India) said it has received a letter dated January 08, 2018 from Sanjay Govil, promoter representing the promoter & promoter group of our company, expressing their intent to give an offer to the public shareholders of the company to acquire entire 8.34 million equity shares of the company held by public shareholders, representing 25.02% of the paid up equity capital of the Company. READ MORE

9:54 AM

Pharma companies focus on limited competition drugs for the US market

 

On Wednesday Alok Sonig, vice-president (Global), Dr Reddy’s Laboratories, will be presenting his company’s strategy for limited-competition products at the ongoing JP Morgan Healthcare Conference in San Francisco.
 

Sonig is not alone. His peers from Aurobindo Pharma, Cipla, Glenmark and Wockhardt will also be sharing their strategy for limited-competition drugs at the conference that is known as the biggest annual event for the health care industry globally. As Indian generic makers face pricing pressure in the US, they are looking for limited-completion drugs, which are either complex generic or innovative specialty drugs that require higher spend on R&D and command better pricing power. READ MORE

9:45 AM

Double-digit earnings growth for Nifty companies in Q3; base effect in play

 

Led by a strong show by private sector lenders, oil marketing companies, automakers and metal producers, Nifty 50 companies are expected to report double-digit growth in earnings for the second consecutive quarter (October-December 2017). Base effect is also in play in this quarter as revenues and profits were adversely affected by demonetisation during the corresponding quarter last fiscal year. READ MORE

9:32 AM

Markets welcome 2018 with a smart rally; BSE SmallCap up 3.5% so far

 

The first seven trading sessions of 2018 saw 296 stocks from the broad-based BSE 500 index gain more than the Sensex, which was up 1.1 per cent. Even as the benchmark indices make new highs, the party on Dalal Street is going strong in the mid- and small-cap stocks.

 

Of the BSE 500 shares, 139 have posted gains of over five per cent. Several themes have caught the market’s fancy. READ MORE

9:23 AM

Sectoral Trend

Source: NSE

9:22 AM

Top Sensex gainers and losers

Source: BSE