MARKET: Sensex zooms 637 pts on possible roll-back of higher tax on FPIs

All that happened in markets today

The bulls on Dalal Street made a strong comeback in the last hour of the session on Thursday after reports said the government was looking to roll-back the recently imposed higher tax on the foreign portfolio investors (FPIs). 

The S&P BSE Sensex jumped 637 points or 1.74 per cent to settle at 37,327 levels with HCL Tech being the top gainer and Tata Steel the biggest laggard. Out of 30 constituents, 27 ended in the green and just 3 in the red. The broader Nifty50 index of the National Stock Exchange (NSE) reclaimed the crucial level of 11,000 to end at 11,032.45, up 177 points or 1.63 per cent.

The Centre is likely to exempt foreign portfolio investors from an increase in taxes that was part of the Union Budget approved by Parliament but heavily criticised, a government official said on Thursday, Reuters reported. READ MORE

Sectorally, all indices on the NSE settled in the positive territory. Auto stocks rallied the most, followed by IT and PSU bank counters. The Nifty Auto index ended 6,998.45, up 3 per cent. 

In the broader market, the S&P BSE Midcap index gained 57 points or 0.42 per cent to settle at 13,566 while the S&P BSE SmallCap index ended at 12,574.25, up 92 points or 0.74 per cent.

BUZZING STOCKS

Shares of HCL Technologies gained 7 per cent to Rs 1,094 apiece on the BSE after the company posted double-digit revenue growth in the first quarter of the financial year 2019-20 (Q1FY20). In constant currency (CC) terms, the company’s revenue grew 17 per cent year-on-year (YoY) and 7.7 per cent on sequential basis.

Shares of Affle India made a strong debut on the bourses and were listed at Rs 930 on the BSE, a premium of 25 per cent against the issue price of Rs 745. On the National Stock Exchange (NSE), the stock opened at Rs 926, a 24 per cent increase against the issue price. The stock, however, pared its early gains to settle at Rs 875 apiece on the BSE. 

GLOBAL CUES

Stock markets enjoyed a tentative recovery after better-than-expected Chinese export data and a steadying of the yuan restored some calm to global markets. The MSCI world equity index rose 0.25 per cent. China’s yuan also gained. In the offshore market it rose 0.2 per cent to 7.07 yuan per dollar after touching as high as 7.14 yuan on Tuesday.

Oil prices regained some ground amid talk that Saudi Arabia was weighing options to halt its decline, offsetting an increase in stockpiles and fears of slowing demand. 

(With inputs from Reuters)

4:01 PM

EXPERT COMMENT | Devang Mehta, Head – Equity Advisory, Centrum Wealth

Markets today started to sense some relief coming in for the Capital markets & clarification or rollback of surcharge on FPIs. The recent round of market correction was led by FII sell off post the budget and the selling intensified in the last few days, where evidence of our economic slowdown, poor earnings in certain sectors and global volatility as well as rhetoric of trade wars came to haunt. Some confidence boosting measures and steroids for the economy is expected as finance ministry seems to be engaging in extensive discussions with industry participants. However, it is too early to speculate on policy decisions, but a bounceback after such a huge fall was not entirely unexpected.

 

4:00 PM

MARKET COMMENT | Vinod Nair, HoR, Geojit Financial Services

Market gets a breather towards the close and reclaimed 11,000 level due to the expectation that the government is likely to be lenient on higher surcharge on FPIs which influenced bears to cover their short positions. Additionally, prospects of lower interest rate going forward and strength in rupee will ease liquidity crunch situation.

 

3:54 PM

Sectoral gainers and losers on the NSE

3:54 PM

Top gainers and losers on the S&P BSE Sensex

3:34 PM

CLOSING BELL

The S&P BSE Sensex jumped 637 points or 1.74 per cent to settle at 37,327.36 while the NSE's Nifty50 index ended at 11,032.45, up 177 points or 1.63 per cent.

3:16 PM

Govt looks to exempt foreign portfolio investors from higher taxes: Report

The Centre is likely to exempt foreign portfolio investors from an increase in taxes that was part of the Union Budget approved by Parliament but heavily criticised, a government official said on Thursday. The Budget provided for increased personal income taxes on those with annual income of more than Rs 2 crore ($283,045). READ MORE

3:01 PM

Centrum Broking on The Ramco Cements

We believe TRCL’s performance largely correlates with its home markets Tamil Nadu and Kerala which are reviving and will help improvement its performance. Further, TRCL is adding structural strength by focusing on regional diversification (in the East) and cost tightening measures. Assign an ADD rating. At our TP ( Rs773) the stock trades at an EV/EBITDA of 13.0x March 2021E earnings.

2:45 PM

Jindal Steel & Power hits over 2-year low; tanks 17% in two days

Shares of Jindal Steel & Power hit an over two-year low at Rs 95, down 7 per cent on Thursday. The stock has plunged 17 per cent in the last two sessions on the BSE, on rumors of payment default, which company categorically rejected. The stock was trading at its lowest level since February 2, 2017, when it touched a low of Rs 93 in the intra-day trade. READ MORE

 

2:30 PM

NEWS ALERT | PM Modi to address the nation at 8 pm: CNBC -TV18

2:29 PM

NEWS ALERT | Govt likely to roll-back recently imposed higher tax on FPIs, reports CNBC -TV18

2:17 PM

ICICI Securities on KEC International

Rating: Hold

 

CMP: Rs 290 

 

Target: Rs 330 (14%) 

 

Target Period: 12-15 months

 

We expect revenue and PAT CAGR of 15% and 19.1%, respectively, in FY19-21E. We expect strong order inflows in FY20 across sectors. We value KEC at 12x P/E on FY21E EPS to arrive at a fair value of | 330/ share. We maintain our HOLD rating. Key risks: Any slowdown in execution of T&D backlog and rise in interest costs, may impact profitability.

2:00 PM

Ultratech Cement falls over 1.50% post Q1 results announcement

1:53 PM

Earnings Alert | Ultratech Cement

- Consolidated net sales rises 15% YoY to Rs 10,027 crore;

 

- Consolidated Net profit up 91.4% YoY to Rs 1,208 cr

1:46 PM

MARKET CHECK | Top losers on the BSE at this hour

DHFL	46.40	-3.00	-6.07
CUMMINSIND	601.30	-51.35	-7.87
RELINFRA	45.30	-5.25	-10.39
ARVIND	53.35	-2.95	-5.24
BALRAMCHIN	122.70	-6.85	-5.29

1:45 PM

Renewable power firms stare at bleak cash flows, defaults in Andhra Pradesh

Renewable power project developers are staring at weak cash flows from their projects in Andhra Pradesh. Not paid by the state for a year already, these companies fear that payment will remain stalled till legal clarity emerges on the state's decision to renegotiate tariff of all renewable projects. Sector executives said that the unpaid dues total up to Rs 7,000 crore for the past year. READ MORE