Sensex consolidates, Smallcap rises over 1%; Maruti slips

11:30am FII View: The combination of a pick-up in economic and earnings growth as well as a fall in interest rate would help markets to stay strong going forward, believes Adrian Mowat of JPMorgan.

In an interview with, Mowat said that he expectedearnings growth to pick up in the latter part of the new financial year andadvised investors to play the expected pick-up in infrastructure indirectly through building-materials companies.

“The government is making progress in tackling issues. The passage of the insurance bill, as well as the progress in GST and on other technical issues [related to the power sector] will bode well,” he said.

A careful stock-picking approach with focus on high-quality cyclical companies and banks should fetch investors about 20 percent returns ahead, Mowat added.

11:00am Market Check

The market remained lacklustre in morning trade with the Nifty hovering around 8480 level while the broader markets extended gains. The BSE Midcap and Smallcap indices climbed 0.8 percent and 1.2 percent, respectively.

The 30-share BSE Sensex rose 6.77 points to 27964.26 while the Nifty fell 2.35 points to 8488.65. About 1520 shares have advanced, 668 shares declined, and 149 shares are unchanged.

HCL Technologies plunged 4.4 percent as the company warned of a negative 280 basis points impact on dollar revenue and negative 80 basis points impact on EBIT margins due to adverse cross currency. They also guided for margins to be maintained between 21-22 percent. Nomura said the drop in margins to guidedrange seems to be happening in a quarter, which will likely lead to some cuts in street margin and earnings expectations and also some near-term moderation in the stock price.

Fertilsers stocks like Chambal Fertilisers, ZuariAgro gained ground as cabinet approved gas pooling for fertiliser sector for 30 urea manufacturing units. Zuari Agro an interview that their current gas cost will go down to USD 11-12/mmbtu from USD 20/mmbtu and will also reduce the working capital cycle.

Maruti Suzuki declined 1.7 percent on account of auto sales. The company reported a 1.6 percent year-on-year decline in total sales with domestic sales up 1.4 percent but exports down 29.3 percent. More information please visit this site www.sharemarket259.blogspot.in

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Sensex, Nifty close lower; banks, IT, capital goods drag

03:30pm Market Closing: The market reversed its gains due to profit booking in last couple of hours of trade. The Sensex fell 18.37 points to 27957.49 and the Nifty declined 1.30 points to 8491.

However, the broader markets outperformed benchmarks. The BSE Midcap and Smallcap indices gained 0.3 percent and 0.9 percent, respectively. About 1581 shares have advanced, 1141 shares declined, and 176 shares are unchanged on the BSE.

ONGC, Hindalco Industries, Tata Steel, HDFC Bank, M&M, PNB and UltraTech Cement lost 1-3 percent while BPCL rallied 5 percent. Tata Power, GAIL, Tata Motors, Reliance Industries and Dr Reddy's Labs gained 1.5-3.5 percent.

03:05pm HCC in News: HCC, the leading infrastructure construction company, has been awarded contract worth Rs 392.13 crore from the Ministry of Road Transport and Highway (MoRTH) for 4-laning of 26km long road on NH52 between Jamugurihat to Biswanath Chariali by-pass in Assam. The project will be completed in 36 months.

The project is part of the Special Accelerated Road Development Programme for North Eastern Region (SARDP-NE) and includes rehabilitation, upgradation and augmentation of the existing carriageway, major and minor bridges, culverts, road intersections, interchanges, drains, etc.

The order-book position as of December 2014 stood at Rs 14,307 crore.

02:50pm Wheat import largest in 5 years:

Purchases by the Fworld's No.2 wheat consumer and producer could buoy benchmark Chicago prices , which rallied more than 6 percent in the past two sessions and are currently near a one-week top amid concerns over dry weather and rising temperatures hurting the US winter crop.

Indian flour millers have bought between 70,000 and 80,000 tonnes of Australian prime wheat for April-May shipment at USD 260-USD 265 a tonne, including cost and freight.

"They have bought three cargoes as some mills are taking coverage because of reports of rain damage," said one Singapore-based trading manager with an international trading company.

"We don't expect India to buy large volumes as they have substantially large stocks but there could be some demand for higher grade wheat."

02:25pm Market Update: The market erased gains with the Sensex falling 8.12 points to 27967.74 and the Nifty declining 4.80 points to 8487.50.

About 1552 shares have advanced, 1036 shares declined, and 179 shares are unchanged on the BSE.

02:15pm Videocon d2h IPO: Videocon d2h, the satellite television arm of Videocon Group, will have to file a new draft prospectus for an initial public offering in domestic markets after fund raising via American depositary shares (ADS), Saurabh Dhoot, director of the company, told Reuters.

Videocon d2h agreed to sell ADS worth up to USD 375 million to US-based Silver Eagle Acquisition Corp in January, which would get listed on Nasdaq stock exchange on Tuesday.

That means the company has to file a new application after filing one in October 2014 to raise up to Rs 700 crore (USD 113.3 million).

"We would have a market cap of close to USD 1.2 billion and an enterprise value of USD 1.5 billion after Nasdaq listing," Dhoot added.

02:00pm Market Check

The market extended rally in afternoon trade with the Nifty inching towards 8550 led by banks and oil stocks. The broader markets gained further too; the BSE Midcap climbed 0.8 percent and Smallcap surged 1.4 percent.

The Sensex jumped 193.10 points to 28168.96 and the Nifty shot up 57.10 points to 8549.40. About 1681 shares have advanced, 886 shares declined, and 152 shares are unchanged on the BSE.

Anish Damania of IDFC Securities expects Nifty to remain range bound between 8000-9000 over the next six months.

Country's largest lenders State Bank of India, ICICI Bank and Axis Bank gained 1-1.5 percent whereas HDFC Bank fell 0.5 percent. Tata Motors extended upside, up 3.3 percent.

Tata Power rallied 3.7 percent and Adani Power gained over a percent. Supreme Court ruled that companies can use argument of change in international law to charge higher tariff.

Reliance Industries rose over 2 percent as brokerage Morgan Stanley upgraded the stock to overweight from underweight and raised target price to Rs 1,062. More information please visit this site www.sharemarket259.blogspot.in

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Sensex holds 28000; IOC, HPCL, BPCL, ONGC rally 1-5%

11:45am Stocks in Focus: SBI remained in focus as the bank has approved divestment in SBI Life by upto 10 percent. VG Kannan, MD, SBI saysthere are no plans to sell more than 10 percent stake at this stage and stake is valued at around Rs 2500 crore.

Reliance Industries climbed 2 percent as Morgan Stanley has upgraded the stock to overweight from underweight. It expects earnings to grow 50 percent over FY15-18e driven by downstream expansion.

CLSA reiterated its high conviction buy call on Infosys and raised target price to Rs 2800 from Rs 2500. It expects stronger revenue growth in FY16/17 asnew management is in place and it should gain leadership in digital and traditional services while improving client mining. The stock fell 0.5 percent on profit booking.

Dr Reddy's Labs also gained 2 percent as CLSA has a buy rating on the stock, saying remediation efforts at Srikakulam API plant is on.

JK Tyre jumped 10 percent. Antique met the management and a few takeaways include the surge in Chinese import share not sustaining in the longer run especially with a cyclical revival in domestic commercial vehicles expected to start in H2FY16.

11:25am Road projects: After having awarded a total of 3000 km road projects in FY15, National Highways Authority of India now aims to award 9000 km road projects in FY16, says member- Finance Satish Chandra.

In an interview Chandra says the road authority also deferred premium payments for 13 projects to the tune of Rs 7000 crore in FY15.

Furthermore, Chandra adds the FY16 expenditure is  likely to be about Rs 75000 crore.

11:00am Market Check

The market continued to gain into today's trading session with the Sensex holding 28000 level. The broader markets outperformed with a firm advance:decline ratio.

The Sensex advanced 66.20 points to 28042.06 and the Nifty gained 21.60 points at 8513.90. The BSE Midcap Index rose 0.6 percent and Smallcap rallied 1.3 percent.

About 1499 shares have advanced, 652 shares declined, and 137 shares are unchanged on the Bombay Stock Exchange.

Herald Van Der Linde, HSBC is still overweight on India and do not think investors are selling India to buy China although it has become more attractive on back of some key policy changes by The People's Bank of China (PBOC).

He believes there are no specific risks in India, the only risk being other markets could become more attractive. However, he does not see money being rotated out of India into other emerging markets either.

Oil marketing company stocks surged as the IOC chairman, B Ashok that they will report healthy profit in Q4. "Inventory losses have been made up and currently we enjoy healthy margins on petrol cracks. Under-recoveries will fall from Rs 15,500 crore in Q1 to Rs 3,000 crore in Q4," he says. IOC, HPCL and BPCL rallied 3-5 percent while ONGC also gained 1 percent.

Globally, Asia remained mostly firm, tracking the positive close on Wall Street. Shanghai markets gained 0.3 percent as Beijing unleashed a new policy to rejuvenate the property market. For more information please visit this site www.sharemarket259.blogspot.in

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Sensex, Nifty close flat; banks lead, telecom & FMCG fall

03:30pm Market Closing: The market saw consolidation on Friday after a steep fall in previous session. The Sensex rose 1.06 points to 27458.64 while the Nifty fell 0.75 points to 8341.40.

About 1092 shares have advanced, 1777 shares declined, and 170 shares are unchanged on the BSE.

Hindalco Industries, Infosys, SBI, Larsen & Toubro, ICICI Bank and IDFC rallied 2-4 percent whereas Bharti Airtel, Wipro, Reliance Industries, ITC, M&M, Idea Cellular, Cairn India and HCL Tech lost 2-6 percent.

02:55pm SpiceJet falls: Low-cost carrier SpiceJet will have to cancel more than a fifth of its planned daily flights if it cannot reach an agreement with its lessors to bring in more aircraft by the end of this month, a company spokesman said.

SpiceJet, which came close to collapsing in December after running out of cash to pay its creditors, is scheduled to make 280 daily flights from next week.

But with its current fleet at 17 Boeing 737 jets and 15 Bombardier Q400s SpiceJet can only fly 218 journeys a day, the spokesman said on Friday.

SpiceJet lost 11 of its Boeing planes after the Delhi High Court this month ordered the aviation regulator to deregister the jets, following disputes with three lessors.

The troubles of India's second-largest budget carrier by market share have underlined the difficulties of operating in the country, where air travel is growing rapidly but high costs and tough competition have left most carriers unprofitable.

The company spokesman said SpiceJet is in talks to resolve disputes with two of its lessors and get back enough planes to allow it to meet its summer schedule. On Monday it said one of its lessors had agreed to withdraw the deregistion process, reports Reuters.

02:30pm Interview: Talking on the business prospects going forward Vimal Kejriwal, MD & CEO, KEC International said January to March quarter has always been the best. Historically, about 40-45 percent of the company's revenues come from the fourth quarter.

The company has already announced orders worth Rs 2000 crore in Q3 and Q4 and the total order book by March-end would be between Rs 8000-10000 crores. So, the revenues and margins in Q4 and the next fiscal would improve considerably, he adds.

He expects 150-200 basis points improvement in margins for the next fiscal. In the current year the margins were low due to significant losses in the new business of water and railway but now these loss making orders are getting closed, adds Kejriwal.

According to Kejriwal, the order inflow in first three quarters was not significant even though tenders were floated but now clients like Power Grid and utilities are keen to award those tenders.

02:00pm Market Check

The market recouped its losses to trade flat amid consolidation in afternoon. The Sensex declined 5.63 points to 27451.95 and the Nifty slipped 12.60 points to 8329.55.

The broader markets too cut its half of the losses, down around 0.4 percent. The market breadth remained negative with advance:decline ratio of 902:1830 on the Bombay Stock Exchange.

Valuations for Indian market have gotten out of hand and the next 12 months could be “very painful” for some parts of it, believes Dimensions Consulting’s Ajay Srivastava.

Srivastava said that economy looked “fundamentally positive” in the wake of reforms undertaken by the government, but the steps will take time to percolate down to earnings.

India's biggest lenders State Bank of India and ICICI Bank climbed over 2 percent followed by HDFC Bank with 0.6 percent whereas housing finance company HDFC remained under pressure, down 1 percent.

Infosys rose 2.6 percent after unlisted rival Accenture raised its revenue growth guidance for the current calendar year 2015 to 8-10 percent Y-o-Y in local currency (against its previous 5-8 percent Y-o-Y guidance).

Shares of Larsen and Toubro (L&T) gained 1.65 percent following order worth Rs 1,711 crore win by subsidiary and plans to list businesses over next three years. More information please visit this site www.bigprofitbuzz.com

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Sensex & Nifty under pressure; Midcap, Smallcap slip 1%

01:20pm Indigo IPO: India's biggest carrier, IndiGo, is preparing to file documents for a stock listing to raise USD 300 to USD 400 million, two sources with knowledge of the plans said, as it looks to cash in on a booming air travel market.

IndiGo, owned by hospitality and travel company InterGlobe Enterprises, has remained profitable in the last two years, avoiding much of the turbulence to hit rival Indian carriers.

IndiGo has picked Citigroup, Kotak InvestmentBank, Morgan Stanley and JP Morgan as lead managers for the listing, with UBS and Barclays also involved, the two sources said.

Indigo will file its draft prospectus by the end of May, two sources said. The timing of the market debut itself, however, is not set, a separate source said, and will depend on market conditions, reports Reuters.

01:00pm Market Check

The market extended losses in afternoon trade with the Nifty breaching 8300-mark for the first time since January 14 and the Sensex falling more than 200 points intraday amid consolidation. The broader markets underperformed equity benchmarks; the BSE Midcap and Smallcap indices fell over 1 percent each.

The Sensex slipped 102.13 points to 27355.45 and the Nifty declined 38.35 points to 8303.80.

Telecom stocks extended sell-off with the BhartiAirtel, Idea Cellular and Reliance Communications falling 5 percent each, even though the regulatory overhang got lifted with the conclusion of auctions. Investors remained concerned about the spectrum payout impact on the companies' balance sheets.

Oil ministry sources indicated that upstream subsidy burden is likely to be zero in the fourth quarter. The ministry sought Rs 5,000 crore as compensation from Centre in Q4, but the finance ministry is yet to formally communicate its decision on the subsidy sharing mechanism, say sources.

Globally, Asian markets remained mixed on geopolitical concerns. Japan's Nikkei hit a two-week low due to weak inflation data. In commodities, Brent crude slipped more than a percent to USD 58 a barrel as supply threat eased. More information please visit this site www.sharemarket259.blogspot.in

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