Shares erased early gains to end lower on Thursday, due to volatility around the expiry of monthly derivative contracts at the end of the session. The broader NSE index closed 0.4 per cent or 40.50 points lower at 10,114.75, while the benchmark BSE index was down 129.91 points or 0.39 per cent at 33,006.27.
Financial stocks took a beating with ICICI Bank Ltd and State Bank of India ending 2.1 per cent and 2.6 per cent lower.
The Lead futures contract on the Multi Commodity Exchange (MCX) has reversed sharply higher after making a low of ₹151.7 a kg on Tuesday. The contract has surged over 3 per cent from this low and is currently trading at ₹156.5 per kg. Inability to break below ₹150 since the beginning of this month reflects lack of fresh sellers to drag the contract further lower. A strong bounce this week indicates that the downtrend that has been in place since February is weakening.
Cox & Kings stake sale in subsidiary
Travel firm Cox & Kings today said it has sold 11.58 per cent stake in Prometheon Holdings UK to SSG Capital for ₹450 crore, after transaction expense and tax. The company’s wholly-owned subsidiary, Prometheon Enterprises has sold 11.58 per cent stake in Prometheon Holdings (UK) to an investee company of SSG Capital Management, Cox & Kings said in a statement.
The government on Thursday pushed back by a month the last date of bidding for a record number of oil and gas blocks to May 2.
Rupee gets a breather as Fed intends to go for only two more hikes this year
The Indian rupee, which was threatening to decline steeply once it breached the 65 level in the initial part of the week, got a breather on Thursday. The US Federal Reserve on Wednesday increased the interest rates by 25 basis points to 1.5 to 1.75 per cent. This relieved the markets that expected the Fed to increase rates four times this year on the back of an improving economic outlook.
The BSE Sensex pared initial gains to slip into negative territory in the afternoon trade, amid global volatility after the US Federal Reserve’s interest rate hike. The 30-share index was trading at 33,064.60 at about 1.50 pm, with a loss of 71.58 points or 0.22 per cent.
The broader Nifty index was trading below the key 10,200-level, at 10,132.70, down 22.55 points or 0.22 per cent.
Weakness was seen in capital goods, auto, telecom, banks and realty stocks.
Major losers include M&M, Adani Ports, ICICI Bank, SBI and Maruti, falling up to 2.17 per cent.
While, gainers were ONGC, Tata Motors, IndusInd Bank, Reliance Industries, and HDFC Bank.
Asian markets witnessed volatility after the US Federal Reserve raised rates by 25 basis points to 1.75 per cent yesterday, signalling two more hikes for 2018. Nikkei 225 index edged up 0.99 per cent, or 211.02 points, to close at 21,591.99, while the broader Topix swung between losses and gains, to trade 0.65 per cent, or 11.10 points, higher at 1,727.39. US stocks ended a choppy session slightly lower yesterday.
SC refuses to lift Bombay High Court stay on R-Com asset sale
The Supreme Court today ordered that the status quo be maintained on Reliance Communication’s sale of assets to RJio on pleas by a consortium of banks. The apex court bench, comprising Justices A K Goel, R F Nariman and U U Lalit, refused to lift the stay ordered by the Bombay High Court on RCom asset sale.
Parliament today passed a key bill that will empower the government to fix the amount of tax free gratuity and the period of maternity leave with an executive order. The Rajya Sabha, which has failed to transact any significant business over the last fortnight due to protests by various parties, today passed the Payment of Gratuity (Amendment) Bill without discussion.
The bill moved by Labour Minister Santosh Kumar Gangwar was passed by a voice vote.
Shares of drugmaker Sun Pharmaceutical Industries Ltd rose as much as 3.27 per cent to ₹521. The company has received US drug regulator FDA’s nod for Ilumya, used for treatment of plaque psoriasis, a non-contagious skin disorder.
At about 12.15 pm, the stock was off its morning highs and was quoting at ₹508.30, up ₹3.60 or 0.77 per cent.
Nifty call: Go short with stop-loss at 10,205
Nifty 50 March Futures (10,183) The Nifty 50 futures contract has failed to sustain higher after breaking above the psychological 10,200 mark earlier today. The contract made a high of 10,237 and has come-off sharply from there. The near-term bias is bearish. Resistance is between 10,185 and 10,200.
Shares were trading flat in late morning trade on Thursday ahead of the expiry of derivatives contracts and after the US Federal Reserve raised interest rates.
The Fed raised interest rates and forecast at least two more hikes for 2018, signalling growing confidence that US tax cuts and government spending will boost the economy and inflation and lead to more aggressive tightening in future. Given that some investors had expected it to project three more rate hikes, the guidance was perceived by some as less hawkish than anticipated, a positive factor for risk assets in general, though analysts noted the Fed was upbeat on the economy overall.
Domestically, traders are also awaiting cues from the roll-over of monthly derivatives contracts later in the day.
At about 11.50 am, The broader NSE index was down 0.04 per cent or 4.40 points at 10,150.85. The benchmark BSE Sensex was up 5.52 points or 0.02 per cent at 33,141.70.
“It looks like a relief rally after the FOMC (Federal Open Market Committee) meeting. There is also some short-covering today due to (F&O) expiry,” said Vinod Nair, head of research at Geojit Financial Services.
“Going forward, if this relief rally continues in the US, then domestically April will be better than what we have seen in March.”
Energy stocks Oil and Natural Gas Corp Ltd gained 2.4 per cent while Reliance Industries rose 1.25 per cent on firmer oil prices. Among financials, HDFC Bank Ltd rose 0.7 per cent while Housing Development Finance Corp was up 0.6 per cent.
Meanwhile, Hindustan Construction Co Ltd slumped to its lowest since August 31, 2016 on reports that its unit Lavasa Corp is planning to declare bankruptcy due to challenges in raising money for project completion.
Strong demand for room ACs to propel Blue Star growth 20%
The air-conditioning major Blue Star is betting big on 15-20 per cent growth in 2018, thanks to the rise in the room AC market, which grew by 10 per cent last year.
“There are strong indications of a severe summer this year and the market is expected to further grow driven by the rise in demand. We have consistently outperformed the market growth rate and year-after-year since 2011, the company has gained significant market share,” said B Thiagarajan, Joint Managing Director.
The tussle for Binani Cement is set to snowball into a major legal battle with all the parties blaming each other for alleged violation of the process. While Binani Cement questioned the timing of the disclosures made by the resolution professional about alleged ‘fraudulent transactions’ to the tune of ₹2,400 crore, UltraTech has highlighted the lack of transparency on the part of the resolution professional.
The race to acquire Essar Steel will start all over again with new players, including JSW Steel, evincing interest in bidding for the company. This follows a decision by the Committee of Creditors of Essar Steel to reject the bids placed by Numetal (backed by Russia’s largest bank VTB) and ArcelorMittal, the world’s largest steel company, on grounds that their proposals did not comply with the Insolvency and Bankruptcy Code.
IRB Infra wins project
Marking its fourth successive project win under the the Hybrid Annuity Model, toll road builder IRB Infrastructure Developers has bagged the Rs 3,400-crore Hapur Bypass Build Operate Transfer project. Following this win, the company’s construction order book rose to Rs 15,300 crore with a three-four year visibility.
The benchmark BSE Sensex was trading higher by over 100 points in morning trade today, extending gains for the third session, after US Federal Reserve announced the widely-expected hike in key lending rate. The 30-share index was trading 126.11 points, or 0.38 per cent, higher at 33,262.29. The gauge had gained 213.06 points in the previous two sessions.
Sectoral indices, led by healthcare, metal, capital goods, oil & gas infrastructure, auto and FMCG, gained up to 0.57 per cent.
The NSE Nifty also advanced by 32.05 points, or 0.32 per cent, to 10,187.30.
Major gainers that supported the uptrend were ONGC, Sun Pharma, Tata Motors, Reliance Industries, HDFC an and HDFC Bank, rising up to 2.5 per cent.
Brokers said sustained foreign fund inflows, increased buying by domestic institutional investors (DIIs) and a mixed trend in other Asian bourses, after the Fed rate hike, influenced the market.
An appreciating rupee against the dollar also supported investor sentiment, they said.
Meanwhile, on a net basis, foreign institutional investors (FIIs) bought shares worth Rs 98.44 crore, while DIIs purchases equities to the tune of Rs 197.78 crore yesterday, provisional data showed.
Among other Asian markets, Japan’s Nikkei was trading higher by 0.38 per cent, while Hong Kong’s Hang Seng fell 0.61 per cent in their early deals. The Shanghai Composite index was down by 0.93 per cent.
The US Dow Jones Industrial Average ended 0.18 per cent lower in yesterday’s trade.
Mishra Dhatu Nigam (Midhani), a public sector enterprise, is approaching the primary market with an offer-for-sale of 4.87 crore equity shares in the price band of ₹87-90. The Government of India is divesting 26 per cent share in the company through this offer. Retail investors and employees get to buy the shares at a discount of ₹3 a piece.
The U.S. dollar slipped on Thursday after the Federal Reserve did not signal a faster pace of rate hikes this year while worries about a coming announcement on tariffs from U.S. President Donald Trump dented Asian shares.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.1 percent, erasing earlier gains of up to 0.7 pct, which were led by South Korea and Taiwan hitting six-week highs. Japan’s Nikkei gained 0.4 percent.
Brokerage stocks under pressure ahead of I-Sec IPO
ICICI Securities unlikely to provide listing gains: analysts
Brokerage stocks came under pressure today ahead of ICICI Securities’ (I-Sec) initial public offering, which opens on Thursday. Stocks of companies such as Emkay Global Financial Services, Geojit Financial Services, Edelweiss Financial Services, Motilal Oswal Financial Services and IIFL Holdings closed down 1-3 per cent. The stock of JM Financial however, ended up 1.8 per cent. (Stock quotes for Thursday)
The rupee rose 9 paise against the US dollar to 65.12 in early trade at the interbank forex market today amid weakness in the greenback after the US Fed raised benchmark lending rate by 25 bps.
At about 9.30 am, the Sensex was up 74.55 points or 0.22 per cent at 33,210.73. Similarly, the NSE Nifty was trading 27.70 points or 0.27 per cent higher at 10,182.95.
On the Nifty 50, 34 stocks advanced against 16 that declined.
ONGC, Sun Pharma, Tata Motors, L&T, ITC and Reliance were among the top gainers on the Sensex. On the Nifty, Sun Pharma, Tata Motors, HCL Tech, Vedanta and ONGC were the top gainers.
Bharti Airtel, SBI, Wipro, Axis Bank and BPCL were the top losers on the Nifty.
The Sensex opens 70.81 points higher at 33,206.99 on Thursday. The NSE Nifty opens at 10,167.50, up 12.25 points.
On Wednesday, the BSE Sensex spurted 139 points to close at 33,136.18, while the broader NSE Nifty rose 30 points to 10,155.25.
Today’s PicK: Ashoka Buildcon (₹246.3)
The stock of Ashoka Buildcon gained 7.3 per cent with good volumes on Wednesday, breaching a key resistance at ₹230.The short-term forecast is bullish for the stock.
Day Trading Guide for March 22 gives supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:
₹1857 • HDFC Bank
|1845||1835||1868||1880||Initiate fresh long positions with a fixed stop-loss if the stock reverses higher from ₹1845 levels|
₹1168 • Infosys