2:20 pm Deal for Solar: British private equity firm Actis is close to signing a deal to buy the solar power portfolio of Indian conglomerate Shapoorji Pallonji, three people aware of the development said.
The acquisition of Shapoorji’s 400 megawatt (MW) solar power portfolio will be done via a renewable platform owned by Actis named “Sprng Energy” at an equity valuation of around Rs 1,100 crore (USD 168 million), one of the people said, asking not to be named as final negotiations are ongoing.
“The due diligence is almost over and the equity value has been reached,” the person said, adding an announcement could come soon, reports Reuters.
2:15 pm Stake Sale: Government has invited expression of interest (EoI) for selling its entire stake in Bharat Pumps, a loss-making firm under the Heavy Industry Ministry.
It has asked interested parties to submit the EoI physically by May 28.
The Allahabad-based company is the third central public sector enterprise (CPSE) under the ministry for which EoI has been floated for strategic sale in the past one month. Scooters India and Hindustan Newsprint are the other two.
The government is eyeing Rs 80,000 crore through disinvestment in 2018-19, lower than the Rs 1 lakh crore raised last fiscal ended March 31.
Besides, the government plans to sell 76 percent stake in Air India, according to the preliminary information memorandum released late last month on strategic disinvestment of the national carrier.
2:05 pm Earnings: Rating agency CRISIL has reported a profit growth of 13.9 percent year-on-year at Rs 82.2 crore for the quarter ended March 2018.
Profit in the year-ago quarter was at Rs 72.1 crore.
Consolidated revenue from operations grew by 4.6 percent to Rs 420 crore from Rs 401.1 crore YoY.
EBITDA (earnings before interest, tax, depreciation and amortisation) increased 10.2 percent year-on-year to Rs 122 crore and margin expanded by 150 basis points to 29 percent in Q4.
1:58 pm Car Price Hike: Toyota Kirloskar Motor (TKM) is planning to increase vehicle prices from next month in order to partially offset rise in input costs.
The company, which is a joint venture between Japanese auto major Toyota and Kirloskar group, currently sells a range of vehicles from hatchback Etios Liva with price starting at Rs 5.49 lakh to luxury SUV Land Cruiser tagged at Rs 1.41 crore (ex-showroom Delhi) in the country.
“Challenges in terms of rising input costs have been there. We are holding on to it (price increase) for some time now. Shortly, we will be doing it. It could be even as early as next month,” TKM Deputy Managing Director N Raja told PTI.
The company is currently working on the quantum of price hike, he added.
1:50 pm Fundraising: Super Crop Safe said the board of directors approved to issue 3.1 lakh equity shares of the company on preferential basis to strategic investors (non-promoter), to issue 5.9 lakh warrant convertible into 5.9 lakh equity shares on preferential basis to promoter and 1 lakh warrants convertible into 1 lakh equity shares of the Company on preferential basis to strategic investors (Non-Promoter) subject to approval of members at EGM.
1:40 pm Market Update: Benchmark indices continued to trade in a tight range of 40 points on the Nifty as investors await more corporate earnings scheduled to be announced over the next one and half months.
Among big ones, Infosys kicked off earnings season last week. In the current week, ACC, IndusInd Bank, TCS, HDFC Life and HDFC Bank will announce their earnings for the quarter ended March 2018.
The 30-share BSE Sensex was up 38.00 points at 34,343.43 and the 50-share NSE Nifty gained 4.10 points at 10,532.50.
The Nifty Midcap index also traded in a range after morning rally. The market breadth is balanced as about 1,237 shares advanced against 1,218 declining shares on the BSE.
1:30 pm Rupee Update: The rupee pared initial gains to drop 15 paise, hitting a fresh six-month low at 65.65 in afternoon against the American currency on sudden bouts of dollar demand from importers.
The rupee opened higher at 65.44 from yesterday’s closing level at 65.49 per dollar at the interbank foreign exchange here.
Rising crude prices on the back of widening trade deficit concerns continue to linger on the rupee, a dealer said.
Crude oil rose amid worries of a high risk of disruptions to supply, specially in the Middle East.
1:25 pm Crude Update: Oil prices rose amid worries there could be a high risk of disruptions to supply, especially in the Middle East.
Brent crude oil futures were at USD 71.63 per barrel, up 0.29 percent, from their last close.
US West Texas Intermediate (WTI) crude futures were up 0.41 percent, at USD 66.49 a barrel.
Traders said oil markets were receiving general support due to a sense that there were high risks of supply disruptions, including a potentially spreading conflict in the Middle East, renewed U. sanctions against Iran and falling output as a result of political and economic crisis in Venezuela, reports Reuters.
1:18 pm Follow-on-Offer: The Finance Ministry may come out with a Rs 10,000-crore follow-on fund offer of the Bharat-22 exchange traded fund (ETF) as it looks to dilute stake in Coal India to meet the minimum public holding norm.
Besides, the ministry is keen to take the ETF route to sell off government shares held through SUUTI in private companies — ITC, Axis Bank and L&T, an official told PTI.
The government had in November last year launched Bharat-22 ETF comprising shares of 22 companies, including public sector undertakings (PSUs), public sector banks, ITC, Axis Bank and L&T.
The fund had garnered bids to the tune of Rs 32,000 crore, although the government retained only Rs 14,500 crore.
An official said the ETF route is a safer mode of disinvestment as it shields investors against stock market volatility.
1:05 pm Upcoming IPO: Capricorn Food Products India, an integrated food processing company, has received markets regulator Sebi’s go ahead to float an initial public offering.
The company had filed IPO papers with Securities and Exchange Board of India (Sebi) in February and obtained its “observations” on April 12, latest update with the regulator showed.
Sebi’s observation is necessary for any company planning to launch public issue like initial public offer (IPO), follow-on public offer (FPO) and rights issue.
With this, the total number of companies receiving approval from the capital markets regulator has reached 13 so far this year.
Going by the draft papers, Capricorn Food’s IPO comprises fresh issuance of equity shares worth Rs 171 crore and an offer for sale of up to 76.43 lakh scrips by the existing shareholders.
Here are the top headlines at 1 pm from Moneycontrol News’ Sakshi Batra
12:55 pm Demand Notice: Indian Metals & Ferro Alloys said it has received demand notices for alleged excess mining in respect of its Sukinda and Chingudipal Chromite Mines amounting to Rs 98.77 crore and is taking appropriate legal advise to determine the future course of action.
12:42 pm Market Update: The market is trading mildly lower amid consolidation, after rising in previous 8 consecutive sessions, as investors look for more corporate earnings due over next one and half months.
The Nifty Midcap also slipped in to the red. All sectoral indices are in the red barring FMCG.
Technology, select banks and auto stocks are under pressure.
12:22 pm Housing Sales: Showing signs of revival, housing sales increased by 33 percent in nine major cities during the March quarter this year to 80,000 units, according to News Corp-backed realty portal PropTiger.
Sales were at 59,936 units in the first quarter of last year.
In its latest report ‘Realty Decoded’, PropTiger said that barring Hyderabad, housing sales have risen in all nine cities during January-March 2018.
Sales rose maximum in Noida by 69 percent during January-March 2018 to 7,933 units compared with the year-ago period, followed by Gurgaon where sales were up by 62 percent at 1,964 units.
12:10 pm Partnership: Air conditioning and commercial refrigeration major, Blue Star’s wholly owned subsidiary in Dubai, Blue Star International FZCO, has announced its partnership with Sands International as the official distributor in the Kingdom of Saudi Arabia (KSA) for its Unitary Products range.
The present room air conditioner market in Saudi Arabia is estimated at 3.3 million units, with an annual growth of 12 percent per annum. Saudi Arabia, with its largest market share in the GCC region, is a promising market for the company’s HVAC&R segment, the company said.
Here are the top headlines at 12 pm from Moneycontrol News’ Anchal Pathak
11:55 am Market Outlook: S Ranganathan, Head of Research at LKP Securities said he expects the Nifty to deliver high single-digit return this fiscal amid higher volatility, uncertain global cues, geopolitical issues and rising yields.
Last fiscal, India had the advantage of better macros but higher commodity prices this fiscal would impact macros though the micros would support an earnings recovery, something which has been elusive for many years.
Domestic retail flows for the first three months of CY18 have been fairly robust with March SIP crossing Rs 7,000 crore, which is a Rs 700 crore month-on-month rise from February.
Corporate earnings season which kicked in last week and monsoons would decide the medium-term outlook for markets in a year which has several state elections coming up starting next month.
11:40 am Arbitration Claim: The foreign acquisition unit of Oil and Natural Gas Corp’s (ONGC) has filed an arbitration claim against the government of Sudan in a London court, a company official said, seeking to recover dues pending for years from a project hit by the breakaway of South Sudan in 2011.
People familiar with the matter in India and Sudan said ONGC had filed a claim for USD 98.94 million, in what they said was a first for the South Asian nation’s top oil and gas explorer against any government.
They declined to be identified because they weren’t authorised to discuss the matter with media
At the centre of the dispute is ONGC’s 25 percent stake the company acquired in the Greater Nile Oil Project (GNOP) in Sudan in 2003. Other stakeholders include China’s China National Petroleum Corp with a 40 percent stake and Malaysia’s Petronas with a 30 percent share, reports Reuters.
11:28 am Asia Update: Asia stocks wavered after data showed both hot and cold patches in the Chinese economy, but losses were limited as investors turned their focus to corporate earnings from Syria.
Spreadbetters expected European stocks to open higher following overnight Wall Street gains, with Britain’s FTSE rising 0.15 percent, Germany’s DAX gaining 0.3 percent and France’s CAC climbing 0.3 percent.
The dollar was barely changed, with demand for safe-haven US Treasuries ebbing as risk appetite improved in parts of the broader market as investors took the view that Western-led strikes on Syria were a one-off intervention, reports Reuters.
11:12 am Market Cap Club: Mahindra & Mahindra entered the coveted Rs 1 trillion market capitalisation club, after its share price hit a fresh 52-week high on the BSE.
Stock of the company today opened on a bullish note at Rs 815, then gained further ground and touched its all time high level of Rs 819.10, up 2.23 percent over its previous closing price.
Following the uptick in the counter, the company’s market capitalisation (m-cap) jumped to Rs 1,01,829.91 crore, higher by Rs 2,225.32 crore, from Rs 99,604.59 crore yesterday.
Following the jump in its m-cap, M&M has joined the ranks of Ultra Tech Cement, Power Grid Corporation, and IndusInd Bank.
11:01 am Market Check: Benchmark indices traded with mild gains amid consolidation as investors after digesting normal monsoon forecast look for more corporate earnings.
TCS, IndusInd Bank, HDFC Life, ACC and HDFC Bank will announce their March quarter earnings later in the week.
The 30-share BSE Sensex was up 66.34 points at 34,371.77 and the 50-share NSE Nifty rose 15 points to 10,543.40.
The Nifty Midcap index continued to outperform frontliners, rising 0.4 percent on positive market breadth. About two shares advanced for every share falling on the BSE.
Here are the top headlines at 11 am from Moneycontrol News’ Sakshi Batra
10:55 am Order Win: Ashoka Buildcon said it has received letters of intention (LOIs) from Dakshinanchal Vidyut Vitaran Nigam (DVVNL) for the following projects:
Cluster 2 project worth Rs 319.63 crore includes the electrification work in Etah and Kashiram Nagar (Kasganj) district while Cluster 5 project worth Rs 437.16 crore includes the electrification work in Kannoj, Farrukhabad and Etawa district.
The accepted aggregate bid cost is Rs 756.79 crore, the company said.
10:45 am Fortis Healthcare Board Meet: While clarifying on the media report saying ‘Malaysia”s IHH says Fortis board declines to engage on takeover offer’, Fortis Healthcare said the board of directors of the company have not yet made a decision and are proposing to meet on April 19, 2018 to consider all options.
10:32 am Wilful Defaults: The dues by scam-hit PNB’s big wilful defaulters grew to Rs 14,904.65 crore in February, up 2.1 percent from the previous month, according to the bank data.
These wilful defaulters, who have taken loans of Rs 25 lakh and above, had total outstanding of Rs 14,593.16 crore in January.
PNB started listing the names of such wilful defaulters and the loans outstanding against them from last June.
Within the first nine months, these defaults have seen 25 percent jump, from Rs 11,879.74 crore in June 2017.
Among the major wilful defaulters are chemical manufacturer Kudos Chemie Ltd Rs 1,301.82 crore; Kingfisher Airlines Rs 597.44 crore; Jas infrastructure and Power Ltd – Rs 410.96 crore; VMC Systems Ltd – Rs 296.08 crore and Arvind Remedies – Rs 158.16 crore.
10:20 am Market Outlook: VK Sharma, Head Private Client Group & Capital Market Strategy at HDFC Securities said a strong support for the Nifty lies in the vicinity of 10,300 level for this week.
Quarterly results will be the main driving force behind the prices in the near term, he added.
10:10 am Buzzing: Bajaj Electricals surged nearly 7 percent after the engineering & project business unit of the company has bagged orders for ten rural/urban electrification projects.
The company said the order worth Rs 3,577.93 crore was from Madhyanchal Vidyut Vitran Nigam Limited under the Saubhagya Yojna of Government of India in Uttar Pradesh.
The scope of work includes work of rural/urban electrification and related work on turnkey basis under the Saubhagya Yojna of Government of India.
These projects will be completed within 15 months from the date of issue of letter of intent, the company said.
Here are the top headlines at 10 am from Moneycontrol News’ Anchal Pathak
9:55 am China Growth: China’s economic growth held steady at 6.8 percent over a year earlier in the quarter ending in March, buoyed by retail sales and investment.
Data released today showed growth in the world’s second-largest economy was down slightly from 2017’s full-year expansion of 6.9 per cent but in line with the quarter ending in December.
9:42 am Rupee Trade: The rupee fell 4 paise to 65.53 against the dollar at the interbank forex market.
Yesterday, the rupee had fell by 29 paise, or 0.44 per cent, to close at a six-month low of 65.49 against the US currency on widening trade deficit concerns amid heightened geopolitical worries.
9:32 am Market Update: Benchmark indices erased opening gains amid consolidation, as investors digested normal monsoon forecast and look for corporate earnings.
The 30-share BSE Sensex was down 2.48 points at 34,302.95 and the 50-share NSE Nifty fell 2.20 points to 10,526.20.
About 917 shares advanced against 548 declining shares on the BSE.
9:30 am Long Term Agreement: Adani Ports and Special Economic Zone (APSEZ) share price gained nearly a percent after it signed a long term agreement with Indian Oil Corporation (IOC) to provide liquefied natural gas (LNG) regasification services on a use or pay basis to the state-run refiner, at its upcoming LNG import terminal at Dhamra in Odisha.
As per the contract, IOC has booked 3 million tonnes per annum (MTPA) regasification capacity spread over 20 years. IOC plans to supply the gas to its refineries in Paradip in Odisha and Haldia in West Bengal.
9:22 am Cipla’s Clarification: Cipla informed exchanges that the US FDA conducted a routine current Good Manufacturing Practices (cGMP) audit at its Indore formulations facility during April 2-13.
“This was in the normal course of business. There were no data integrity and/or repeat observations. At this stage, the company believes the
observations are unlikely to have any material adverse impact,” it said.
The company will submit the response within the stipulated timeframe.
US FDA observations
-Testing programme not adequately designed to assess stability characteristics of products
-Written procedures not designed properly for assuring product quality
-Scientifically sound & appropriate laboratory control mechanisms not established
9:18 am Buzzing: Glenmark Pharmaceuticals share gained more than a percent after the drug maker announced the initiation of a Phase 2b clinical trial of GBR 830, a novel, investigational treatment for moderate-to-severe atopic dermatitis.
The trial’s primary endpoint will assess the efficacy of GBR 830, compared to placebo. Secondary and exploratory trial endpoints include additional measures of efficacy, safety and pharmacodynamics. Trial enrollment is
expected to begin in June 2018, it said.
9:15 am Market Update: Benchmark indices opened mildly higher amid positive global cues on Tuesday, continuing upmove for the ninth consecutive session.
The 30-share BSE Sensex was up 74.11 points at 34,379.54 and the 50-share NSE Nifty rose 21.00 points to 10,549.40.
NIfty Midcap gained 58 points.
Power Grid, Hindalco, M&M, Adani Ports, Tata Steel, Vedanta, Tata Motors, L&T, Bajaj Finance and SBI and Sobha were early gainers.
Infosys, TCS, Wipro and Tech Mahindra were under pressure, falling up to 1 percent.
Mishra Dhatu rallied 9 percent on top of 40 percent rally in previous session.
Bajaj Electricals, DB Realty, VST Tillers, Force Motors, Coromandel International and Indiabulls Real Estate gained up to 5 percent.
Talwalkar Fitness and Alok Industries fell up to 10 percent.
9:14 am Dividend Announcement: Biocon said consideration and recommendation of final dividend, if any, for the financial year 2017-18 forms part of the agenda of the meeting of Board of Directors of the company, scheduled on April 26, 2018.
9:10 am Pre-Opening Settlement: The Sensex settled with a gain of 76.37 points or 0.22 percent at 34381.80 and the Nifty with a gain of 28.90 points or 0.27 percent at 10,557.30 in pre-opening trade.
9:05 am Technical Recommendations: We spoke to HDFC Securities and here’s what they have to recommend:
Tata Global: BUY| Target Rs. 300 | Stop-loss Rs 268 | Return 7%
JAI CORP: BUY| Target Rs. 181 | Stop-loss Rs 154 | Return 11%
GENUS POWER: BUY| Target Rs. 62 | Stop-loss Rs 54 | Return 8%
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
9:03 am Stocks in news: Cipla: USFDA conducts inspection at Indore facility
Bajaj Electricals: Company wins orders worth Rs 3,577.93 crore as part of govt’s Saubhagya Yojna
Fortis Healthcare: The company said that the Board will meet this week to look at eligible options.
Reliance Communications: No legal restriction any more to proceed with sale of spectrum, MCNs & real estate.
Adani Ports: Signs A Long Term Regasification Pact With Indian Oil For Dhamra LNG Terminal
Results in focus: CRISIL, Muthoot Capital, Orchid Pharma, and Tata Sponge Iron, among 9 companies declaring results on Tuesday.
Sobha: Company to invest Rs 500 crore for residential project in GIFT City, Gujarat.
Sterlite Technologies: Board to consider raising funds through issue of securities on April 25
9:01 am Market Check: Benchmark indices were in the green in pre-opening trade, following positive lead from global peers.
The 30-share BSE Sensex was up 123.85 points at 34,429.28 and the 50-share NSE Nifty rose 55.30 points to 10,583.70.
Jaypee Infra fell 5 percent while STC gained 1.5 percent.
State Bank of India was up 3 percent and M&M rose 1.75 percent.
Tata Motors was up 0.8 percent.
US stocks closed higher on Monday, with the biggest boosts from technology and healthcare sectors as investors were optimistic about earnings season and appeared less worried about US-led missile attacks in Syria, Reuters reported.
The Dow Jones Industrial Average rose 212.9 points, or 0.87 percent, to 24,573.04, the S&P 500 gained 21.54 points, or 0.81 percent, to 2,677.84 and the Nasdaq Composite added 49.64 points, or 0.7 percent, to 7,156.29.
Asia stocks edged higher on Tuesday, tracking Wall Street gains as the focus shifted to corporate earnings and looming economic data from China amid signs Western-led strikes on Syria weren’t likely to escalate, a Reuters report said.