Market snaps 3-day fall

Key benchmark indices eked out small gains ahead of a two-day holiday. The barometer index, the S&P BSE Sensex, rose 21.20 points or 0.08% to settle at 28,082.34. The Nifty 50 index rose 11.20 points, or 0.13% to settle at 8,708.80. Key indices snapped a three-day losing streak. The stock market remains closed tomorrow, 11 October 2016, on account of Dussehra. The market also remains closed on Wednesday, 12 October 2016, on account of Muharram.

PSU bank stocks declined. Private bank stocks saw mixed trend. Metal shares were in demand as copper prices rose in global commodity markets. Most FMCG shares edged lower. Realty stocks declined.

 

The Sensex rose 21.20 points or 0.08% to settle at 28,082.34, its highest closing level since 6 October 2016. The Sensex rose 155.50 points, or 0.55% at the day's high of 28,216.64. The index rose 7.18 points, or 0.03% at the day's low of 28,068.32.

The Nifty 50 index rose 11.20 points, or 0.13% to settle at 8,708.80, its highest closing level since 6 October 2016. The Nifty rose 48.20 points, or 0.55% at the day's high of 8,745.80. The index rose 6.35 points, or 0.07% at the day's low of 8,703.95.

The market breadth indicating the overall health of the market was positive. On BSE, 1,700 shares rose and 1,182 shares fell. A total of 134 shares were unchanged. The BSE Mid-Cap index fell 0.2%, underperforming the Sensex. The BSE Small-Cap index rose 0.25%, outperforming the Sensex.

The total turnover on BSE amounted to Rs 2487 crore, lower than turnover of Rs 3337.19 crore registered during the previous trading session.

Among the sectoral indices on BSE, the S&P BSE Consumer Durables index (up 1.69%), the S&P BSE Metal index (up 1.48%), the S&P BSE Basic Materials index (up 1.06%), the S&P BSE IT index (up 1.05%), the S&P BSE Teck index (up 0.84%), the S&P BSE Healthcare index (up 0.52%), the S&P BSE Consumer Discretionary Goods & Services index (up 0.38%), the S&P BSE Telecom index (up 0.17%), the S&P BSE Utilities index (up 0.11%) outperformed the Sensex. The S&P BSE FMCG index (up 0.03%), the S&P BSE Auto index (down 0.07%), the S&P BSE Bankex (down 0.13%), the S&P BSE Capital Goods index (down 0.2%), the S&P BSE Power index (down 0.22%), the S&P BSE Industrials index (down 0.31%), the S&P BSE Finance index (down 0.36%), the S&P BSE Oil & Gas index (down 0.59%), the S&P BSE Energy index (down 0.75%) and the S&P BSE Realty index (down 1.21%) underperformed the Sensex.

PSU bank stocks declined. Dena Bank (down 1.99%), Indian Bank (down 1.84%), State Bank of India (SBI) (down 0.87%), Corporation Bank (down 1.63%), Bank of Baroda (down 1.16%), Canara Bank (down 1.04%), IDBI Bank (down 1.25%), Bank of India (down 0.73%) and Union Bank of India (down 2.11%) fell. Punjab National Bank (up 0.8%) and Vijaya Bank (up 2.45%) rose.

Private bank stocks saw mixed trend. HDFC Bank (up 0.26%), Kotak Mahindra Bank (up 0.03%), and Yes Bank (up 0.34%) rose. ICICI Bank (down 0.2%), Axis Bank (down 0.37%), IndusInd Bank (up 0.36%) declined.

RBL Bank rose 1.12%. RBL Bank, NeoGrowth Credit and Overseas PrivateInvestment Corporation (OPIC), the US Government's development finance Institution have jointly committed to provide financing for small and medium enterprises (SMEs) in the Indian retail space. The announcement was made after market hours on Friday, 7 October 2016. RBL Bank will lend to NeoGrowth to enable it to provide loans to SMEs excluded from mainstream funding. This financing will be backed by a $5 million loan guarantee from OPIC. NeoGrowth, a non-banking finance institution, uses innovative technology to serve the funding requirements of SMEs, which do not get loans easily from commercial banks owing to their small size, inadequate credit history and lack of collateral. RBL Bank's loan will allow NeoGrowth to provide loans ranging from Rs 2 lakh to Rs 75 lakh to the retail SMEs.

Metal shares were in demand as copper prices rose in global commodity markets. National Aluminium Company (up 6.73%), Vedanta (up 2.36%), Hindalco Industries (up 1.65%), Steel Authority of India (up 1.1%), NMDC (up 1.02%) and Hindustan Copper (up 0.17%), edged higher. Jindal Steel & Power (down 0.8%) and Hindustan Zinc (down 0.06%) fell.

High Grade Copper for December 2016 delivery was currently up 0.76% at $2.18 per pound on the COMEX.

Tata Steel rose 2.93% on reports that a foreign brokerage has maintained its outperform rating on the stock. The brokerage reportedly said that imposition of anti-dumping duty in European Union is a big positive for the Tata Steel stock. The brokerage has reportedly increased FY 2018 earnings per share (EPS) estimates of Tata Steel by 6% on higher EBITDA/tonne in Europe. Tata Steel remains cheap on EV/EBITDA valuation, the brokerage added.

JSW Steel rose 1.99% after the company announced during trading hours today, 10 October 2016, its board will meet on 27 October 2016 to consider stock split. In a separate announcement today, the company said that its crude steel production rose 22% to 3.98 million tonnes in Q2 September 2016 over Q2 September 2015. Production of flat products rose 12% to 2.86 million tonnes in Q2 September 2016 over Q2 September 2015. Production of long products rose 24% to 0.79 million tonnes in Q2 September 2016 over Q2 September 2015.

Meanwhile, JSW Steel announced after market hours on Friday, 7 October 2016, that it has been declared a preferred bidder in 5 mines in the auctions for category C mines conducted by state government of Karnataka. The auction was conducted during the period 1 October 2016 to 6 October 2016. The estimated resources in these 5 mines as per the tender documents are around 111 million tonnes. The highest final offer price by the company to become a preferred bidder is in the range of 58.9% to 102.52% of average monthly prices of iron ore of different grades and quality published by Indian Bureau of Mines in Karnataka from time to time. The company will take all requisite steps as per the tender documents to obtain letter of intent, all statutory clearances, execute mine development & production agreement (MOPA) and start the mining operations.

India's largest cigarette maker by sales ITC rose 0.56% to Rs 240.50 after the corporate management committee of the company approved divestment of the company's entire shareholding (204 shares of common stock with no par value) in King Maker Marketing Inc, US, a wholly-owned subsidiary, along with assignment of certain trademarks owned by the company. The announcement was made on Sunday, 9 October 2016. The consideration to be received is estimated at around $24 million in terms of the share purchase agreement and subject to regulatory approvals and customary closing conditions, ITC said. The buyer in the transaction is Premier Manufacturing, Inc., USA, it added.

Most FMCG shares edged lower. Jyothy Laboratories (down 2.65%), Godrej Consumer Products (down 1.26%), Nestle India (down 1%), Britannia Industries (down 0.5%), Marico (down 0.45%), Hindustan Unilever (down 0.18%) and Colgate Palmolive (India) (down 0.08%), edged lower. Bajaj Corp (up 0.07%), Tata Global Beverages (up 0.20%), GlaxoSmithKline Consumer Healthcare (up 0.33%), Procter & Gamble Hygiene & Health Care (up 0.50%) and Dabur India (up 0.53%), edged higher.

ACC rose 2.73% after the company announced that it has successfully stabilized operations of new cement grinding unit in Jamul, Chattisgarh. ACC said that the operations of the new cement grinding unit in Jamul which went into commercial production from 14 September 2016 have been successfully stabilized. The cement dispatched from this new grinding unit has been well accepted in the market. The company has already completed and commenced commercial production of the new clinkering line at Jamul in July 2016. The cement grinding unit based at Sindri in Jharkhand also forming part of the company's new Jamul project is expected to go on stream in November 2016. The announcement was made during market hours today, 10 October 2016.

IT major Infosys rose 1.67% to Rs 1,029.55. The company declares its Q2 September 2016 results on Friday, 14 October 2016.

IT major TCS rose 0.5% to Rs 2,380.10. The company declares its Q2 September 2016 results on Thursday, 13 October 2016.

Dr Reddy's Laboratories rose 0.87% after the company announced its entry into Columbia with its portfolio of high quality and affordable medicines for cancer patients. Ramana, Executive Vice President and Head, Branded Markets, Global Generics, Dr Reddy's Laboratories' (DRL) said that the company's initial focus would be to provide access to affordable cancer medicines to patients through its proven portfolio of oncology products. The announcement was made after market hours on Friday, 7 October 2016.

Piramal Enterprises fell 1.01%. The company announced before market hours today, 10 October 2016, that its UK-based subsidiary acquired five anesthesia and pain management injectable products from Janssen Pharmaceutica NV, in an all cash deal for an upfront consideration of $155 million, and up to an additional $20 million. The products to be acquired are five injectable versions of well-established Janssen brands, Sublimaze (fentanyl citrate), Sufenta (sufentanil citrate), Rapifen (alfentanil hydrochloride), Dipidolor (piritramide), and Hypnomidate (etomidate). Janssen Pharmaceutica NV is a global pharma company.

GAIL (India) rose 1.06% to Rs 418.60. The stock hit a high of Rs 424 in intraday trade, which is 52-week high for the counter. The stock hit a low of Rs 413.35 in intraday trade. GAIL (India) today, 10 October 2016, announced that it has received intimation from the Ministry of Petroleum and Natural Gas that the Cabinet Committee on Economic Affairs (CCEA) approved 40% capital grant (limited to Rs 5176 crore) of the estimated capital cost of Rs 12940 crore to GAIL (India) for execution Jagdishpur-Haldia/Bokaro-Dhamra gas pipeline (JHBDPL) project by 2020. The announcement was made after market hours today, 10 October 2016

State-run Power Grid Corporation of India rose 0.56% after the company announced that POWERGRID Vizag Transmission, a wholly owned subsidiary of the company, has successfully completed the element Srikakulam - Vemagiri 765 kV D/c line on 30 September 2016. The other element of the project Khammam - Nagarjunasagar 400kV D/C was completed in last financial year. With the completion of both the elements, the project required to be established by POWERGRID Vizag Transmission Limited has been completed. The announcement was made after market hours on Friday, 7 October 2016.

Bharat Heavy Electricals fell 0.3%. The company has commissioned yet another 660 megawatts coal based supercritical thermal power plant in Uttar Pradesh. The commissioning of the unit will result in significant improvement of electricity availability in the state of Uttar Pradesh. The project is owned by Prayagraj Power Generation Company (PPGCL), a subsidiary company of Jaiprakash Power Ventures. The announcement was made during market hours today, 10 October 2016.

Realty stocks declined. Prestige Estates Projects (down 3.63%), Oberoi Realty (down 2.68%), DLF (down 1.25%), D B Realty (down 0.1%), Indiabulls Real Estate (down 1.44%), Housing Development and Infrastructure (down 0.8%), Hubtown (down 1.45%), Unitech (down 1.52%) and Godrej Properties (down 0.77%) fell. Sobha (up 0.2%), and Parsvnath Developers (up 1.89%) rose.

A2Z Infra Engineering rose 4.94% after the company announced that it has received a contract from Jharkhand Urja Sancharan Nigam (JUSNL) for design, engineering, supply, erection, testing and commissioning on turnkey basis of deposit work of Steel Authority of India (SAIL). Total contract price of the work is around Rs 96 crore. The announcement was made after market hours on Friday, 7 October 2016.

Adani Transmission (ATL) gained 2.53% after the company announced that it completed the acquisition of 74% shares of Maru Transmission Service Company (MTSCL) and 49% shares of Aravali Transmission Service Company (ATSCL). MTSCL and ATSCL are the operational transmission assets of GMR Energy. While payment has been made for 100% stake in both the companies, the remaining stake in both the companies will be transferred to ATL in a manner consistent with the transmission service agreement. This acquisition is in sync with ATL strategy to enhance the value for its stakeholders, through organic as well as inorganic growth. With these acquisitions, cumulative network of ATL will reach around 10,900 circuit kilometre (ckt kms), out of which around 9,000 ckt kms are under operation (including 3,500 ckt kms under process of acquisition) and approximate 1,900 ckt kms are under various stages of construction. With this scale of operations, ATL will enjoy substantial benefit of scale in terms of cost optimization and shared resources. The announcement was made after market hours on Friday, 7 October 2016.

Key indices snapped three-day fall today, 10 October 2016. The Sensex had declined 273.41 points or 0.96% in three trading sessions to settle at 28,061.14 on Friday, 7 October 2016 from its close of 28,334.55 on 4 October 2016. The Sensex has risen 216.38 points or 0.78% in this month so far (till 10 October 2016). The Sensex has risen 1,964.80 points or 7.52% in calendar year 2016 so far (till 10 October 2016). From a 52-week low of 22,494.61 hit on 29 February 2016, the barometer index has risen 5,587.73 points or 24.84%. From a 52-week high of 29,077.28 hit on 8 September 2016, the barometer index has fallen 994.94 points or 3.42%. The Sensex is off 1,942.40 points or 6.47% from a record high of 30,024.74 hit on 4 March 2015.

In overseas stock markets, European stocks bounced back after a negative opening. Most Asian stock markets dropped. Markets in Hong Kong, Japan and Taiwan were shut for public holidays. US stocks fell on Friday, 7 October 2016, to end the week lower following a report on US employment that came in below expectations but was viewed as strong enough for the US central bank to consider raising interest rates by the end of the year. The US economy added 156,000 jobs last month, while the unemployment rate ticked up to 5% as more workers entered the labor market.

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