Live Markets Commentary
Sify Editors @ 3:50 PM
Indian benchmarks end in red after promising start
What started on a highly promising note sadly did not hold momentum. We would have wanted to say- went down like nine pins, but thankfully the losses seem to be marginal.
The Sensex ended the day 50.95 points or 0.16% below on 31904. There was great expectation after the benchmark S&P index opened at 31954. During the day the index touched a high of 32057.12.
NSE Nifty50 too ended the day in the red at 9873.30. The stock opened at 9863.45, reached a high of 9922.55. The day's tally sadly was 0.27% in the red. For all those hopeful of 10,000 mark- we will have to wait till Friday for the markets to resume trading.
Sify Editors @ 3:20 PM
Whether the Nifty will breach the 10,000 mark has been a matter of intense speculation since the start of third week of July 2017.
HDFC Securities, the brokerage firm in its daily note titled- 'Ready to welcome Nifty in 5 digits', comments that major global stock indices trailed highs on Wednesday evening.
The European Central Bank will provide clues on winding down policy stimulus toward normalcy of the long held Quantitative Easing program. Bank of Japan is also likely to lower its inflation outlook while raising growth forecasts, suggesting that it will also ease off on the QE pedal.
The firm also suggested that many players in markets are twiddling their thumbs and waiting for the uncertainty surrounding looming policy decisions in Europe and Japan to get over.
These are momentous turns in global liquidity, and will take time to playout. "Now we see clear skies ahead. Get ready to welcome Nifty in 5 digits!" concedes the report.
Prakash Gaba during the day-opening had suggested that a slide to 9720 was possible and resistance at 9900 has been called for. "Nifty opened with a bull gap trapping the shorts to close right on our resistance of 9900 like a dot. Technically the trend is still intact up and the logical technical target of 9969 still is valid as long as 9792 holds. The crucial support for the Nifty is at 9792-9720 and the resistance is at 9916-9969," read his report.
The other factors HDFC analysts concurred were Index giant Reliance industries announcing its quarterly results during the day. Reliance is anticipated to report a 7.5% growth in sales and about 10% in profits. The ONGC-HPCL merger coupled with a probable announcement will be expected in the next half hour. Will this lead Nifty to 10,000?
The Nifty is trailing at 9881.35 at 3:00 AM, 38.85 points down from opening at 9920.20. The expectation is still 127 points norther, but we are hopeful and keeping our fingers crossed.
Sify Editors @ 3:15 PM
Hindustan Zinc quarterly profit rises 81 percent
Hindustan Zinc Ltd , India's biggest zinc miner, posted an 81 percent jump in quarterly profit on Thursday, boosted by higher income from zinc operations and an increase in the metal prices.
Net Profit rose to 18.76 billion rupees ($291.16 million) in its fiscal first quarter ended June 30 from 10.37 billion rupees a year earlier, the company, which is a unit of Vedanta Ltd , said.
Total income rose 61.2 percent to 55.43 billion rupees, while income from zinc operations rose 97 percent.
LME zinc prices climbed about 31 percent in the year to June-end 2017.
Sify Editors @ 2:45 PM
Reliance General Insurance posts Rs 44 crore net profit
Reliance General Insurance on Thursday said it closed the first quarter with its gross written premium going up by 41 per cent year-on-year and 22 per cent growth in its profit after tax.
The company board also approved listing of the shares in the stock exchanges to unlock value for the shareholders.
In a statement issued here, the company said it has booked a gross written premium of Rs 1,278 crore and an after tax profit of Rs 44 crore for the quarter ended June 30.
Reliance General Insurance is a wholly owned subsidiary of Reliance Capital Ltd.
According to the insurer, its combined ratio for the period under stood at 104 per cent down from 114 per cent during the corresponding period of the previous year.
Sify Editors @ 1:45 PM
Equities trade in red; metal, auto stocks lag
The Sensex has so far touched a high of 32,057.12 points and a low of 31,878.30 points during intra-day trade.
The BSE market breadth was bearish with 1,337 declines and 1,180 advances.
"Equity benchmarks erased early gains in the morning trade. Ahead of June quarter earnings, Kotak Mahindra Bank, Reliance Industries and Wipro gained up to 1.7 per cent while Bajaj Auto fell 0.4 per cent," said Dhruv Desai, Director and Chief Operating Officer of Tradebulls.
"Reliance Industries is slated to announce its earnings for the April-June quarter (Q1) on Thursday and hold its AGM (annual general meeting) the day after. Analysts expect the focus, both in terms of the June quarter numbers and the AGM, would be on the company's telecom business."
Sify Editors @ 1:15 PM
Bajaj Auto first-quarter profit falls about 6 percent
Bajaj Auto Ltd posted a 5.6 percent fall in quarterly profit on Thursday as sales were hit by the changeover to BS-IV compliant vehicles and the transition to the new Goods and Services Tax (GST).
Profit was 9.24 billion rupees ($143.48 million) in the first quarter ended June 30, compared with 9.78 billion rupees a year earlier, the country's fourth largest automaker by market capitalisation said.
The company said it incurred a one-time charge of 320 million rupees as payment to dealers to compensate for losses incurred on GST introduction due to pre-GST inventory held as on June 30.
Sify Editors @ 12:55 PM
Splitting bills will not reduce taxes says RAI
A message on social media has been suggesting that separate bills could help save GST rates. The message has been doing the rounds for almost two weeks, and it explains that for shopping bills worth Rs. 1000 the GST rate would be 0%, for Rs. 1000-1500 would be 2.5%, 6% on Rs. 1500-2500 and 18% for bills in the range of Rs. 2500 - 4500.
The hoax-full message has only inspired a bunch of shoppers, at the expense of retailers who have been forced to split bills for customers. Ironically, the message has led to serpentine queues and additional time for processing bills at the check-out counters.
"Believing the message as true, consumers across the country are demanding that retailers split the bill amount in multiple bills for evading tax, resulting in long queues, wastage of paper and unnecessary hassles at billing counters," says Kumar Rajagopalan, the CEO at RAI.
The Retailers Association of India (RAI), is a body of 6,000 retailers that advocates retailer' demands across the country. Rajagopalan had exclusively spoken with Sify on June 14 and explained how GST would impact consumer behavior.
Sify Editors @ 11:15 AM
Sensex buoyed by ONGC and positive global cues opens positively
The Sensex opened to a positive note and traded to 31992.20 at 10:00 AM from an opening of 32033.82. It touched a high of 32057.12.
NSE Nifty too opened to a high of 9920.20, however couldnt maintain momentum, dropping to 9907.75 at 10:00 AM.
Automobile and FMCG stocks lead the gainers while metal and Information technology were in the red.
Petrol stocks were leading the pack owing to the ONGC merger nod. ONGC opened to a high of 162.25, reaching a high of 167.45 by 9:35 AM. The stock seems poised to reach its 52 week high of 212 points that it notched on January 31 2017.
Among the global indices the Nikkei 225 was up by 0.36% while Hang Seng was 0.26% in the green. US stocks too closed to record highs on Wednesday. Rupee traded 64.32 against the Dollar.
Sify Editors @ 11:05 AM
Upeat results lift Sterlite Technologies for second straight session
Extending previous session's gains, Sterlite Technologies moved up north on strong volumes on Thursday morning, and with the bulls staying quite aggressive at the counter, still remains high up in positive territory.
Sterlite Technologies, which is among the leading telecom products manufacturers in the country, ranks among the global leaders in Optical Communication Products such as optical fibers, fiber optic cables and data cables, operating through its networks in India, China and Brazil. With sales networks spanning across six continents, the company's products have enabled top telecom operators with smarter networks in more than 100 countries.
The stock rallied sharply on Wednesday after the company reported consolidated revenue of Rs 716 crore for the quarter ended June 2017, up 27% over the corresponding quarter of the previous year. The company's EBITDA in the fourth quarter was Rs 157.05 crore, a 37.5% jump over the year-ago quarter and EBITDA margin stood at Rs 21.9%.
Net profit was up 66.2% at Rs 69 crore in the April - June 2017 quarter, compared to year ago quarter. The sharp jump was due largely to a 10.5% decline in finance cost.
A pretty strong order book and a notable jump in sales overseas helped lift the company's revenues in the first quarter. At Rs 320 crore, export sales were the highest ever recorded by the company. At the end of the June quarter, Sterlite Technologies' order book was worth Rs 3140 crore.
Sify Editors @ 10:45 AM
From HDFC Securities: Oil & Gas sector will be the talk of the town today. Index giant Reliance industries will announce its quarterly numbers today. It is expected to report 7.5% growth in sales and about 10% in profits. Cabinet has approved sale of government’s stake in HPCL to ONGC, in a bid to create oil giants to compete with global rivals.
Bajaj Auto, Wipro and Kotak Mahindra bank will also show their quarterly report card today and these numbers will drive sentiment on the street. Nifty managed to hold on to 9800 support and now that becomes the base for the short term.
Sify Editors @ 10:10 AM
Asia stocks hit near-decade high, yen slips as BOJ cuts inflation forecast
Asian shares scaled a near-decade peak on Thursday, bolstered by a surge in global stocks to new records on strong U.S. corporate earnings, while the yen eased slightly after the Bank of Japan reinforced expectations it will lag other central banks in dialling back stimulus.
MSCI's broadest index of Asia-Pacific shares outside Japan added 0.15 percent, hovering near its highest level since December 2007.
Australian stocks rose 0.6 percent and South Korea's KOSPI was up 0.1 percent.
Chinese blue chips advanced 0.15 percent, while the Shanghai Composite edged up 0.25 percent. Hong Kong's Hang Seng crept up 0.3 percent.
Sify Editors @ 9:45 AM
The Sensex in the Green
The Sensex was up by 244.36 points or 0.77 per cent at the Wednesday's closing.
In the day's trade, the barometer 30-scrip sensitive index had touched a high of 31,978.89 points and a low of 31,793.72 points.
The Nifty too, was up by 72.45 points or 0.74 per cent.
Japan's Nikkei 225 was trading in green, up by 0.68 per cent, Hang Seng was up by 0.29 per cent while South Korea's Kospi was also up by 0.15 per cent.
China's Shanghai Composite index was quoting in green, up by 0.26 per cent.
Nasdaq closed in green, up by 0.64 per cent while FTSE 100 was up by 0.55 per cent at the closing on Wednesday.
Sify Editors @ 9:15 AM
The Sensex in the Green
HUL's first quarter numbers have come in better than street expectations, and brokerage firm HDFC Securities to suggest a buy rating on the scrip.
At a CMP of Rs. 1158, the scrip has been forecast to reach a target-price of Rs. 1304 within 12 months.
The HUL revenue was up by 5% on a year on year basis at Rs. 83.5 billion. The domestic consumer business registered a healthy 6% growth, while EBITDA and APAT remained up at 14% and 15% respectively.
A document shared by Hindustan Unilever to the exchanges showed EBITDA rise by Rs. 1866 crore, while net profit go up 9% to Rs. 1283 crore.
Analysts suggested that GST implementation at HUL has been smooth and restocking benefits would be visible in second quarter FY18.
HUL on its part also suggested that there has been least disruption owing to GST. The company pushed its first GST invoice on 8:08 hours on July 1. The company supplies have been normal while payments to vendors has been made since the first day of the GST launch.
Pricing related concerns on its product-portfolio might have been a cause of worry. But, HUL has had an assortment of products and hence the GST impact seems to have averaged. The tax change has brought down effective price of Detergent bars, skin cleanser, toothpastes, and hair oils while it has increased the price for detergent powders, Hair Care products excluding hair oil, skin creams and color cosmetics, and Instant coffee.