Live Markets Commentary
Sify Editors @ 4:15 PM
Sensex ends slightly down; Reliance ends at month-low
Indian shares edged lower on Tuesday with Reliance Industries Ltd leading the losses as concerns about spending at its telecom unit overshadowed better-than-expected third-quarter earnings.
The broader NSE index closed 0.18 percent lower at 8,398 while the benchmark BSE index ended 0.19 percent down at 27,235.66.
Shares of Reliance fell 3.25 percent, after having touched its lowest since Dec. 14, 2016, earlier in the session.
Sify Editors @ 3:35 PM
Sensex, Nifty headed for weak close
Key Indian stock indices Sensex and the Nifty50 look headed for a slightly weak close today, with investors not showing any keen interest in lapping up stocks.
A lack of cues from global markets, lingering concerns about near term economic outlook and caution ahead of key earnings reports continue to weigh on the market.
The Sensex is down 43.85 points or 0.16% at 27,244.30. The Nifty50 is down 12.65 points or 0.15% at 8400.15.
Sify Editors @ 3:15 PM
Logistics stocks steady amid hopes of GST roll out from July
Shares of logistics company are mostly steady with notable gains following the Goods and Services Tax Council breaking a deadlock over issues of administrative control over assessees and broadly agreeing to roll out the GST from 1 July 2017.
Snowman Logistics is rising 3.2%, Gateway Distriparks and Transport Corporation of India are up 2.2% and 2.1%, respectively.
Aegis Logistics, Sical Logistics, Allcargo Logistics, VRL Logistics and GATI are gaining 1.3% - 2%, while Navkar Corporation (0.7%), Patel Integrated Logistics (0.85%), Blue Dart Express (0.4%) and Container Corporation of India (0.3%) are modestly higher.
According to reports, the GST council has agreed that the Centre would assess 50% of the assessees under Rs 1.5 crore annual turnover and the states the other 50%. As much as 90% of the assessees with less than Rs 1.5 crore annual turnover will come under the states and the balance 10% under the Centre, reports said.
On the issue of levying tax on the high seas or within 12 nautical miles of the coast, the GST Council has reportedly decided to go along with the states, which wanted to retain the power to tax economic activity although it maintained that constitutionally, the Centre had jurisdiction over territorial waters. For entities with annual turnover above the Rs 1.5 crore threshold, the Centre and states will share control equally but each taxpayer would have to deal with only one agency and be assessed once.
The next meeting of the GST Council will take place on 18 February 2017. Hopefully, by then, changes to various bills will have been worked out and be ready to be passed by Parliament and state Assemblies.
GST is expected to simplify and harmonise the indirect tax regime in the country as it seeks to create a seamless national market in the country by replacing plethora of state taxes and central taxes by one tax. Consumers, produces, and the Government, all stand to benefit if GST is implemented. As for logistics firms, implementation of GST means the removal of inefficiencies in interstate taxation and check posts.
Sify Editors @ 2:50 PM
Profit booking, negative global cues subdue equities
Profit booking, coupled with broadly negative global indices, pulled the Indian equities markets lower during the mid-afternoon trade session on Tuesday.
The key indices, which opened on a positive note, traded marginally in the red, as heavy selling pressure was witnessed in metal, oil and gas, and energy stocks.
The wider 51-scrip Nifty of the National Stock Exchange (NSE) fell by 17.20 points or 0.20 per cent, to 8,395.60 points.
The barometer 30-scrip sensitive index (Sensex) of the BSE, which opened at 27,331.82 points, traded at 27,227.12 points -- down 61.05 points or 0.22 per cent from the previous close at 27,238.06 points.
The Sensex has touched a high of 27,381.43 points and a low of 27,179.19 points during the intra-day trade so far.
The BSE market breadth was marginally tilted in favour of the bears -- with 1,293 declines and 1,287 advances.
Sify Editors @ 2:30 PM
Buy NTPC for long term. Keep a stop loss around Rs 160 if looking at near term.
Sify Editors @ 2:10 PM
Buy L&T Finance Holdings and Bajaj Finance if looking for medium term gains. Add more of these at declines
Sify Editors @ 1:45 PM
Buy Indiabulls Housing Finance (Rs 771) at sharp declines.
Sify Editors @ 1:20 PM
Hold Suzlon Energy with a stop loss at Rs 14.
Sify Editors @ 12:55 PM
Sensex down 70 points; Metal, oil stocks trade weak
The market, which opened on a firm note and stayed in positive territory for about an hour, slipped into the negative zone subsequently and is currently trading weak amid stock specific moves by investors.
With global cues rather muted and amid concerns about near term growth after the IMF lowered its growth estimate for the Indian economy for the current year and the next fiscal, investors appear somewhat wary of building up positions.
The Sensex, which rose to 27,381.43 in early trades, gaining nearly 100 points, is now down 70 points or 0.26% at 27,218.17. The Nifty50 of the National Stock Exchange is down 19.80 points or 0.26% at 8393.00, nearly 50 points off the day's high of 8440.90.
Sify Editors @ 12:30 PM
Sensex slightly down; Reliance Industries drives losses
Indian shares eased marginally on Tuesday as oil-to-telecoms conglomerate Reliance Industries Ltd dragged on the market over concerns about spending at its telecom unit that overshadowed better-than-expected third-quarter earnings.
The market is expected to move within a range ahead of corporate results and the government budget, analysts said, as more companies gear up to report earnings including Axis Bank and Yes Bank on Thursday.
The government will unveil its 2017/18 budget on Feb. 1 and investors hope for incentives to support an economy hit by cash shortages after a ban on higher-value banknotes.
"Markets are more or less flat today and will be range-bound ahead of quarterly results and the union budget wherein investors will watch out on how the allocation happens," said Siddharth Purohit, senior research analyst with Angel Broking.
The broader NSE Nifty was off 0.1 percent at 8,403.25 as of 0550 GMT, while the benchmark BSE Sensex was 0.2 percent lower at 27,239.03.
Sify Editors @ 12:00 PM
IMF Lowers India's Growth Forecast: Socks likely to stay sideways in the near term
'A temporary negative consumption shock' due to cash crunch following the government's demonetization move has prompted the International Monetary Fund to slash the country's growth estimate for financial year 2016-17, to 6.6% from an earlier estimate of 7.6%.
The IMF also trimmed India's growth forecast for 2017-18 to 7.2%, as against its previous forecast of 7.6%.
The IMF has stated in its report that India is likely to return to its earlier estimated growth rate of 7.7% in 2018-19. Meanwhile, it has forecast a 6.7% growth rate for the Chinese economy in the year ending March 2017 and predicted better prospects for the next two years for other emerging and developing economies. IMF's forecast for global economic growth for year ending March 2017 remains unchanged at 3.1%.
Recently, the World Bank had slashed its growth estimate for the Indian economy for the current financial year to 7%, from its earlier forecast for a 7.6% growth. The World Bank too cited demonetisation as the cause for the downgrade, saying the ban on Rs 500 and Rs 1000 banknotes would continue to affect businesses and household economic activities in the short term.
Low oil prics and poor agricultural output were the other reasons cited by the World Bank for its decision to lower India's growth estimate.
One positive that emerged from the World Bank's recent report was that it positioned India ahead of China as the fastest growing emerging market economy in the world, saying increased infrastructure spending would result in more investment in the near term.
The market is likely to stay sideways for better part of the next few weeks with IMF's estimate and third quarter results setting the trend. There will be some volatile spells here and there and the mood is likely to remain cautious as concerns over the impact of demonetization on the economy will take time to subside.
With elections to some key Assemblies round the corner, it would be interesting to see what is in store for the investing fraternity in particular and the people at large, in the forthcoming Union Budget.
The Union Budget that will be presented on 1 February is expected to be somewhat investor friendly as the government may well look at giving some sops to compensate to some extent the hardships faced by people due to the currency ban.
Marketmen will also keep a close watch on global developments, especially at the economic and trade policy stance of U.S. Government under Donald Trump, the Chinese economy and the currency's movements against the U.S. dollar with what with U.S. interest rate hikes looming large.
Sify Editors @ 11:30 AM
Hold JSW Steel (Rs 187) with a stop loss at Rs 175 if looking at near term.
Sify Editors @ 11:10 AM
Hold ITC (Rs 250). Keep adding small quantities at declines for long term.
Sify Editors @ 10:50 AM
Buy Asian Paints (Rs 944). Add at declines for medium term.
Sify Editors @ 10:30 AM
Reliance Industries falls 2 pct on Jio spending worries
Reliance Industries Ltd falls as much as 2.33 pct to its lowest since Dec 29, 2016.
Oil-to-telecoms conglomerate posts slightly better-than-expected earnings but analysts cite concerns about spending on telecoms unit Jio.
Jefferies says Reliance plans to infuse another $4.4 bln of equity into Jio in addition to $8.8 bln already invested.
Nomura says capex on Jio "remains a key worry" for Reliance Industries shares.
Sify Editors @ 10:10 AM
Buy Greaves Cotton (Rs 130). For short term, hold with a stop loss at Rs 123.
Sify Editors @ 9:50 AM
Sensex down 75 points amid cautious trades; RIL declines 2.2% after results
The Indian stock market is slightly higher Tuesday morning, with select counters witnessing some brisk buying in opening trades. Wall Street was closed overnight for Martin Luther King Jr Day, and markets across the Asian region are subdued today, rendering the mood on the Indian bourses a bit cautious.
Information technology, realty and power stocks are finding some support. A few stocks from capital goods, banking, healthcare and consumer durables sectors are edging higher. Oil, metal and automobile stocks are slightly sluggish.
The BSE benchmark Sensex is up 74.80 points or 0.27% at 27,362.97, after advancing to 27,381.43. The Nifty50 of the National Stock Exchange, which rose to 8440.90, is now at 8434.65, up 21.85 points or 0.26% from its previous close.