Friday, 19 January 2018

Sensex ends at fresh closing high, up 251 pts, Nifty settles near 10,900

Benchmark indices ended at fresh closing highs for a third straight session on Friday, led by financial stocks amid improved investor sentiment after the government decided to cut tax rates on certain products and services.Benchmark indices ended at fresh closing highs for a third straight session on Friday, led by financial stocks amid improved investor sentiment after the government decided to cut tax rates on certain products and services.
The rates have been lowered after revenues dipped following the rollout of a landmark nationwide sales tax from July. Taxes on goods including used motor vehicles and precious stones, and services relating to mining and oil exploration, are among those that will be reduced from January 25.
Both indexes posted their seventh consecutive weekly gain.
Meanwhile, Asia stocks shook off losses on Wall Street and edged up to record highs on Friday following China’s announcement of faster-than-expected fourth quarter growth, while worries over a possible US government shutdown weighed on the dollar.CATCH ALL THE LIVE UPDATES03:41 PMNifty Bank ends at record high up 1.40%
03:39 PMSectoral Trend
03:35 PMSensex Top gainers and losers
03:33 PMMarkets at close Benchmark indices ended at fresh closing highs for a third straight session on Friday, led by financial stocks amid improved investor sentiment after the government decided to cut tax rates on certain products and services. The S&P BSE Sensex ended at 35,511, up 251 points while the broader Nifty50 index settled at 10,894, up 77 points.03:20 PMCrude oil prices at $60 conducive to revenue growth: Air India CMD Crude oil prices at around $60 per barrel is the "ideal" level for Air India to sustain its new-found revenue growth, the airline's Chairman and Managing Director (CMD) Pradeep Singh Kharola said. When asked about the surge in crude oil prices and its impact on Air India's revenue growth, Kharola told IANS: "I believe the airline is comfortable with oil prices being in the range of $60-65 per barrel." "Anything beyond this range will obviously erode our bottom line," he said at the company's HQ.
03:09 PMSatyam scam: SAT refuses to lift Sebi's two-year ban on Price Waterhouse The Securities Appellate Tribunal (SAT) on Friday said that Price Waterhouse could continue to service existing clients whose financial year started on January 1, 2018, but it refused to grant a stay on a two-year audit ban ordered by the market regulator. The markets regulator, Securities and Exchange Board of India (Sebi), had last week barred Price Waterhouse from auditing listed companies in the country for two years, after a probe into the nearly decade-old accounting fraud case at software services company, B Ramalinga Raju-led Satyam Computer, that became India's biggest corporate scandal. It had however allowed Price Waterhouse to continue auditing books for the current fiscal year ending in March. READ MORE02:55 PMSebi allows investment up to 25% in REITs/InvITs to attract investors To make REITs and InvITs more attractive, markets regulator Sebi has allowed strategic investors like registered NBFCs and international multilateral financial institutions to invest up to 25% of the total offer size of such trusts. "The strategic investor(s) shall, either jointly or severally, invest not less than 5% and not more than 25% of the total offer size," Securities and Exchange Board of India said in a circular. Read more
02:46 PMJubilant FoodWorks hits new high on solid Q3 performance Jubilant FoodWorks hit a new high of Rs 2,053, up 6% on BSE in intra-day deal, after the company reported a strong Same Store Growth (SSG) of 17.8% for Domino’s as against analyst’s expectation of around 8% in December quarter (Q3FY18). The company had recorded a negative growth of 3.3% in a year ago quarter. The company reported more than doubled net profit at Rs 660 million in Q3FY18 from Rs 200 million in the corresponding quarter of previous fiscal. Operating revenues grew 20.7% year on year (YoY) to Rs 7.95 billion over the previous year quarter. READ MORE02:30 PMHackers have walked off with 14% of big digital currencies Digital currencies and the software developed to track them have become attractive targets for cybercriminals while also creating a lucrative new market for computer-security firms. In less than a decade, hackers have stolen $1.2 billion worth of Bitcoin and rival currency Ether, according to Lex Sokolin, global director of fintech strategy at Autonomous Research LLP. Given the currencies’ explosive surge at the end of 2017, the cost in today’s money is much higher. “It looks like crypto hacking is a $200 million annual revenue industry,” Sokolin said. Hackers have compromised more than 14 percent of the Bitcoin and Ether supply, he said. READ MORE02:16 PMCigarette maker ITC's third-quarter profit rises 17%; beats estimates ITC Ltd, India's biggest cigarette maker, posted a 16.8% rise in its third-quarter profit on Friday, helped by a one-time gain. The company, which also makes consumer goods ranging from biscuits to skincare products, said its profit rose to Rs 30.90 billion ($484.53 million) in the quarter ended December 31, from Rs 26.47 billion a year ago. Read more Earnings impact
02:01 PMMarket CheckS&P BSE Sensex 35,378.16 Up 0.33% Nifty 50 10,830.30 Up 0.12% S&P BSE 200 4,775.74 Up 0.21% Nifty 500 9,645.80 Up -0.01% S&P BSE Mid-Cap 17,596.99 Up -0.18% S&P BSE Small-Cap 19,272.54 Up -0.07%01:47 PMManappuram Finance to discuss on investment proposals; stock rebounds 7% Manappuram Finance has moved higher to Rs 121, up 4%, bouncing back 7% from its intra-day low on the National Stock Exchange after the company said it called a board meeting in next week to discuss on investment proposals. The stock hit a low of Rs 113 in early morning trade before the announcement. “The board meeting of directors of the company will be meeting on Tuesday, January 23, 2018 at 11.00 am at Mumbai interalia to discuss on investment proposals,” Manappuram Finance said in a regulatory filing. READ MORE01:33 PMAdani Ports gain on brokerages upgrade Adani Ports and Special Economic Zone (APSEZ) was up 4% to Rs 430 on Friday, erasing most of its yesterday’s loss on BSE, after the brokerages upgrade the stock post December quarter (Q3FY18) results. On Thursday, the stock ended 4.4% lower at Rs 414 on BSE. APSEZ has posted an 18% year-on-year increase in consolidated net profit for the third quarter of 2017-18 financial year to Rs 9.94 billion while its consolidated income from operations grew 22% for the same period. Consolidated operating EBITDA (earnings before interest, tax, depreciation and amortization) increased by 46% to Rs 19.67 billion in Q3FY18 from Rs 13.44 billion in Q3FY17. The cargo volumes were up 16% during the quarter. Click here for full story01:15 PMRecapitalisation bonds for reviving state-owned banks won't have same tenure The Union government is mulling different tenures for its Rs 1.35-trillion recapitalisation bonds for reviving public sector banks. In doing so, the government may follow a different practice than the one adopted in its previous recapitalisation bond exercise in 1993-94 when it had a fixed tenure for all the bonds before they were converted into perpetual bonds. "The recapitalisation bonds may likely have different tenures so that when the redemption of bonds takes place, the government doesn't have to pay the entire amount at one go to the banks," said a senior finance ministry official. READ MORE01:00 PMUS SEC raises doubts about Bitcoin ETFs amid biggest cryptocurrency slump The US Securities and Exchange Commission (SEC) has questioned the prospects of bitcoin exchange-traded funds saying there are a significant number of investor protection issues about cryptocurrencies and related products that need to be examined. The issues need to be addressed before sponsors begin offering these funds to retail investors, the SEC said in a letter on Thursday to two trade groups. "We have asked sponsors that have registration statements filed for such products to withdraw them," the SEC said. READ MORE12:45 PMHDFC Bank Q3 net profit rises record 20% to Rs 46.43 billion HDFC Bank Ltd, India's second-biggest lender by assets, on Friday reported a record-high quarterly profit, helped by an increase in interest and fee incomes. Net profit rose 20 per cent to Rs 46.43 billion ($728.40 million) for the third quarter ended Dec 31, from Rs 38.65 billion a year ago. Read more
Earnings Impact

12:33 PMSectoral Trend
12:15 PMFranklin Low Duration Fund: Focus on high-yielding securities pays off Launched in July 2010, Franklin India Low Duration Fund features in the credit opportunities fund category of CRISIL Mutual Fund Ranking. The fund has been constantly ranked in the top 30 percentile (CRISIL Fund Rank 1 or 2) in the four quarters ended September 2017. Its month-end assets under management (AUM) increased from Rs 30.08 billion to Rs 55.86 billion in three years. Read more12:02 PMBiocon hits record high on collaboration with Sandoz Biocon hits a record high of Rs 564, up 4% on the National Stock Exchange (NSE), after the company entered into a global partnership with Sandoz to develop, manufacture and commercialise multiple biosimilars in immunology and oncology. Sandoz is a Novartis division and a global leader in biosimilars. “Under the terms of the agreement, both companies will share responsibility for end-to-end development, manufacturing and global regulatory approvals for a number of products and will have a cost and profit share arrangement globally,” Biocon said in a press release. Read more11:49 AMFDI in banks: More foreign money into banking system, so what? A market expert on a television channel jokingly said the CNX Nifty Bank index could someday become bigger than the BSE Sensex. On Thursday morning, with gains of about 500 points it seemed as though the joke could become true, thanks to reports that the government is considering increasing the foreign direct investment limit to 100% for private lenders and 49% for public sector banks. Read more11:31 AMCyient hits 52-week high post Q3 results Cyient hit a 52-week high of Rs 622, up 7% on BSE in early morning trade, after the company reported 1.3% quarter on quarter (Q-o-Q) dollar revenue growth at $152 million in December quarter. Services revenue grew 4.2% (4.4% in constant currency) on Q-o-Q was highest ever at $139.9 million. In rupee terms, revenue grew 1.9% to Rs 9.83 billion on sequential basis. Net profit for the quarter declined 2.4% Q-o-Q at Rs 1.09 billion without one offs. Click here for full story11:16 AMMarket CheckS&P BSE Sensex 35,411.66 Up 0.43% Nifty 50 10,851.30 Up 0.32% S&P BSE 200 4,785.33 Up 0.41% Nifty 500 9,681.45 Up 0.36% S&P BSE Mid-Cap 17,699.52 Up 0.40% S&P BSE Small-Cap 19,400.87 Up 0.60%11:02 AMOil prices fall over 1% on recovery in US output Oil prices dropped more than 1% on Friday as a bounce-back in US production outweighed ongoing declines in crude inventories. If Friday’s falls last, this week will see the biggest weekly price declines since October. Brent crude futures LCOc1 were at $68.46, down 85 cents, or 1.2%, from their last close. On Monday, they hit their highest since December, 2014 at $70.37 a barrel.10:45 AMAlembic gains on share buyback plan Alembic rallied 7% to Rs 63.20 on BSE in intra-day trade after the pharmaceutical company announced that its board will consider share buyback proposal on January 23, 2018. “The board of directors of the company also consider and approve, the proposal for buy-back of fully paid-up equity shares of the Company, which would include maximum amount, maximum number of equity shares, mode of buy-back and other matters incidental thereto,” Alembic said in a regulatory filing. Read more10:31 AMHigher crude oil prices will impact corporate earnings, say analysts The twin tailwinds of low bond yields and cheap crude oil that were driving equity markets in India, despite lacklustre corporate earnings, are now receding. Crude oil prices have more than doubled from the lows of 2016 pushing up India’s import bill and raising fears of a higher current account and fiscal deficit. A persistently higher deficit translates into a weaker rupee and higher consumer inflation. Bulls are also facing the heat from a steady rise in bond yields both in India as well as in the US. Click here for full story10:19 AMWonderla Holidays nears record high on GST rate cut Wonderla Holidays has surged 9% to Rs 424 on BSE in early morning trade after the Goods and Services Tax (GST) Council on Thursday cut rates on 83 employment-oriented goods and services. The stock is trading close to its record high of Rs 430 touched on December 23, 2015. Read more 10:02 AMWhatsApp earnings leak case: Axis Bank appoints agency to help with probe Private lender Axis Bank has appointed an external agency to probe the alleged leak of its June quarter earnings on social media platform WhatsApp. Sources said the private sector lender had appointed one of the Big Four accounting and audit firms to conduct a free and fair inquiry. Confirming the development, an Axis Bank spokesperson said, “The matter is under investigation and we are working with one of the leading experts in the field. Based on the outcome of the investigation, appropriate action, if necessary, shall be taken.” Click here for full story
09:48 AMNo proposal to hike FDI limit in Private Banks: Media Reports
09:31 AMIUC cut impact: Bharti Airtel Q3 net profit falls 39% to Rs 3.05 billion Pricing pressures and regulatory changes in the India wireless business continue to impact the operational performance of Bharti Airtel, which reported a 39% year-on-year (y-o-y) drop in its December quarter net profit at Rs 3.05 billion. Consolidated revenues, which include the company’s Africa business, fell 13% over the year-ago quarter to Rs 203.1 billion. While revenues were marginally lower than estimates, there was an over 10% gap between the Street’s bottom line estimates and the reported numbers. Read more Earnings impact
09:23 AMSectoral Trend

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