Market Live: Sensex off day#39;s low; IT, FMCG, banks under pressure; RIL rebounds

Jun 14, 03:19 PM (IST)

Shares of Lupin gained more than 3 percent as company received USFDA approval for pregnancy prevention tablets.

The company has received final approval for its Drospirenone, Ethinyl Estradiol, Levomefolate Calcium Tablets and Levomefolate Calcium Tablets, 3 mg/0.02 mg/0.451 mg and 0.451 mg, from the USFDA (United States Food and Drug Administration).

The said tablets are the generic equivalent of Bayer’s Beyaz Tablets and indicated for use by women to prevent pregnancy, to treat symptoms of premenstrual dysphoric disorder (PMDD) for women who choose to use an oral contraceptive for contraception.

Jun 14, 03:04 PM (IST)

Buzzing: Shares of Tata Consultancy Services (TCS) shed 2 percent intraday Thursday as foreign broking house Macquarie has maintained neutral rating on the stock with a target of Rs 1,600 per share.

Macquarie don’t see any regulatory challenge to buyback, while it expect company to post 10.8% YoY growth in dollar revenue in FY19.

It feels policy on cash return to shareholders remains unchanged.

Jun 14, 02:54 PM (IST)

Fortis calls off demerger of diagnostics arm, SRL, citing headwinds for the sector

Fortis calls off demerger of diagnostics arm, SRL, citing headwinds for the sector

Fortis had approved the demerger of SRL in August 2016 to unlock value of the diagnostic business and focus on its core hospital business

Jun 14, 02:42 PM (IST)

Market Update: The market is off its day’s low, with the Sensex falling more than 100 points. Investors digested second interest rate hike of 2018 by the US Federal Reserve and await European Central Bank policy rate decision due later in the day.

Infosys, ICICI Bank, TCS and ITC are under pressure but the rebound in Reliance Industries stock price capped downside.

The 30-share BSE Sensex fell 125.18 points to 35,613.98 and the 50-share NSE Nifty slipped 45.80 points to 10,810.90 while the Nifty Midcap index is flat.

Jun 14, 02:31 PM (IST)

IPO: Non-banking finance company Hinduja Leyland Finance has filed draft red herring prospectus for its IPO with capital market regulator Securities & Exchange Board of India (SEBI), reports CNBC-TV18 quoting NewsRise.

The public offer comprises of fresh issue of shares worth up to Rs 500 crore by the company and offer for sale up to 2.19 crore equity shares.

Vehicle finance NBFC Hinduja Leyland Finance is promoted by second larget commercial vehicle maker Ashok Leyland and Hinduja Power.

Axis Capital, Citi Group Global Markets India and YES Securities are book running lead managers to the issue.

Jun 14, 02:21 PM (IST)

Jun 14, 02:10 PM (IST)

​Buzzing: Mindtree share price lost more than 4 percent intraday after global research firm Citi downgraded the stock to Sell from Neutral.

Its business has seen a good turnaround that has already been priced into the strong returns seen in past six months, the brokerage house said. “Valuations are sector-leading and don’t leave any room for disappointment.”

Client concentration risk remains, it feels.

Citi, however, has raised its target price for the stock to Rs 970 from Rs 875 after it increased EPS estimates by 6 percent primarily due to INR depreciation.

​Buzzing:  Mindtree share price lost more than 4 percent intraday after global research firm Citi downgraded the stock to Sell from Neutral. Its business has seen a good turnaround that has already been priced into the strong returns seen in past six months, the brokerage house said.

Jun 14, 01:53 PM (IST)

Market Update: The market continued to trade lower in afternoon with the Sensex falling around 150 points as investors digested interest rate hike by the US Federal Reserve and await European Central Bank policy rate decision due later in the day.

Infosys fell nearly 3 percent as the stock adjusted for dividend of Rs 30.50 per share.

Mindtree dropped 3 percent after Citi downgraded the stock to Sell from Neutral but raised target price to Rs 970 from 875

The 30-share BSE Sensex slipped 160.84 points to 35,578.32 and the 50-share NSE Nifty declined 57.50 points to 10,799.20. About three shares declined for every two shares rising on the BSE.

Jun 14, 01:39 PM (IST)

Buzzing: Shares of HCL Technologies added 1.4 percent intraday as the company signed an end-to-end IT infrastructure services deal with Falck.

The company will support Falck’s business transformation by consolidating, simplyfing and standardizing Falck’s IT infrastructure operations through a centralised global service delivery model.

The new centralised model will enable greater automation, improved cost transparency, enhanced operational efficiency and increased control.

Jun 14, 01:25 PM (IST)

Jun 14, 01:13 PM (IST)

Buzzing: Global brokerage firm CLSA has initiated coverage with Buy rating on ICICI Securities and set a target price at Rs 520, implying potential upside of 46 percent. The stock price gained 3.4 percent intraday.

Equity broking firm is benefited from financialisation of household savings and parent’s brand and reach, the research house said, adding distribution and margin financing will drive revenue expansion.

CLSA expects revenue/net profit to grow at a CAGR of 17/21 percent over FY18-21.

ICICI Securities’ dividend yield is one of the highest among Nifty companies and the stock trades at discount to global peers, the research house said.

Buzzing : Global brokerage firm CLSA has initiated coverage with Buy rating on ICICI Securities and set a target price at Rs 520, implying potential upside of 46 percent. The stock price gained 3.4 percent intraday. Equity broking firm is benefited from financialisation of household savings and parent’s brand and reach, the research house said, adding distribution and margin financing will drive revenue expansion. CLSA expects revenue/net profit to grow at a CAGR of 17/21 percent over FY18-21. ICICI Securities' dividend yield is one of the highest among Nifty companies and the stock trades at discount to global peers, the research house said.

Jun 14, 01:04 PM (IST)

Europe Update: European stocks dropped as traders watched developments from central banks across the world. France’s CAC, Germany’s DAX and Britain’s FTSE slipped 0.6 percent each.

Overall, market sentiment was affected by central banks moving towards a tighter monetary policy globally.

US stocks fell in the wake of the latest decision from the Federal Reserve to hike rates by 25 points. The central bank also indicated that two more increases could still take place this year.

In the meantime, traders will be looking at a European Central Bank (ECB) meeting in Riga, Latvia on Thursday, where policymakers are set to start discussing how to put an end to its massive bond-buying program, reports CNBC.

Jun 14, 12:48 PM (IST)

Market Update: The market continued to reel under selling pressure in afternoon as investors digested US Federal Reserve’s second interest rate hike of 2018 and await ECB policy decision due later in the day.

The 30-share BSE Sensex slipped 221.57 points to 35,517.59 and the 50-share NSE Nifty declined 72.40 points to 10,784.30 while the Nifty Midcap continues to outperform frontliners, falling third of a percent.

All sectoral indices are trading in the red barring Pharma that gained over a percent.

Jun 14, 12:41 PM (IST)

ECB Policy Expectations: The European Central Bank will debate today whether to end its huge asset purchases by year-end, in what would be its biggest step towards dismantling crisis-era stimulus credited with pulling the euro zone economy out of recession.

Financial investors are coming to terms with the end of a decade of easy money from the world’s top central banks, with the Federal Reserve on Wednesday raising interest rates for a seventh time in 3-1/2 years in a further shift from policies used to battle the 2007-2009 financial crisis and recession.

Meeting as growth is slowing and political populism threatens to set off market turbulence, the ECB is expected to argue that its 2.55 trillion euro ($3.00 trillion) bond-buying scheme has done its job in bringing the 19-member currency bloc back from the brink of collapse, reports Reuters.

Jun 14, 12:26 PM (IST)

Jun 14, 12:16 PM (IST)

Buzzing: Punj Lloyd share price fell 11 percent intraday Thursday after ICICI Bank dragged the company to National Company Law Tribunal (NCLT) and pleaded to initiate proceedings under Insolvency & Bankruptcy Code (IBC).

The NCLT has agreed to hear bank’s plea against Punj Lloyd and issued notice related to the matter, reports CNBC-TV18.

The NCLT will hear bank’s plea on July 24.

The country’s largest private sector lender has claimed outstanding dues of Rs 852 crore for seeking insolvency proceedings against Punj Lloyd.

Buzzing : Punj Lloyd share price fell 11 percent intraday Thursday after ICICI Bank dragged the company to National Company Law Tribunal (NCLT) and pleaded to initiate proceedings under Insolvency & Bankruptcy Code (IBC). The NCLT has agreed to hear bank's plea against Punj Lloyd and issued notice related to the matter, reports CNBC-TV18. The NCLT will hear bank's plea on July 24. The country's largest private sector lender has claimed outstanding dues of Rs 852 crore for seeking insolvency proceedings against Punj Lloyd.

Jun 14, 12:08 PM (IST)

WPI Inflation: WPI inflation for the month of May increased to 14-month high of 4.43 percent from 3.18 percent in previous month.

Manufactured products inflation also inched up at 3.73 percent, from 3.11 percent in April.

March WPI inflation revised to 2.74 percent from 2.47 percent reported earlier.

Jun 14, 11:48 AM (IST)

Market Update: The market remained under pressure tracking global weakness after the US Federal Reserve hiked interest rate by 25 basis points for the second time in 2018 and also indicated more hikes going ahead.

The Sensex dropped 207.97 points to 35,531.19 and the Nifty fell 68.70 points to 10,788, weighed by Infosys, Reliance Industries, ICICI Bank and IOC.

About three shares declined for every two shares rising on the BSE.

Jun 14, 11:39 AM (IST)

Sharekhan on Fed Rate Hike: Gaurav Dua, Head of Research, Sharekhan said US Federal Reserve has increased the  policy rates by 25 bps for the second time in 2018 is on expected line. But the commentary has a hawkish undertone and the central bank has indicated total of four rate hikes in 2018 against expectation of three earlier, citing ‘Solid’ economic activity, low unemployment rate and inflation likely to overshoot their earlier projected target.

“We expect the change in commentary by US Federal Reserve and relatively faster pace of unwinding to have limited impact on emerging market equities, as the hike in interest rates remain gradual and the estimates for terminal Fed rates remains unchanged at neutral level of 2.9 percent. Post the initial reaction, we the focus to quickly return back to domestic macros and earnings growth.”

Jun 14, 11:37 AM (IST)

Crude Update: Oil prices eased, dragged down by rising output, although strong demand and a drop in US fuel inventories provided the market with some support.

Brent crude futures, the international benchmark for oil prices, were at $76.47 per barrel, down 0.36 percent, from their last close.

US West Texas Intermediate (WTI) crude futures were at $66.53 a barrel, down 0.17 percent from their last settlement.

Prices were pulled down by another rise in US oil production, which hit a weekly record of 10.9 million barrels per day (bpd) last week, according to the Energy Information Administration (EIA) on Wednesday. Reports CNBC.

Jun 14, 11:20 AM (IST)

Jun 14, 11:08 AM (IST)

Alembic Pharmaceuticals gets USFDA approval: The company has received approval from the USFDA for its abbreviated new drug application (ANDA) for Doxycycline Hyclate capsules USP, 50 mg and 100 mg.

The approved ANDA is therapeutically equivalent to the reference listed drug product (RLD), Vibramycin Capsules, 50 mg and 100 mg, of Pfizer Inc.

At 11:03 hrs Alembic Pharmaceuticals was quoting at Rs 526.25, up Rs 36.00, or 7.34 percent. 

Jun 14, 10:53 AM (IST)

Buzzing: Shares of Cipla gained 2 percent as company received final USFDA approval for Isoproterenol hydrochloride injection.

The company has received final approval for its abbreviated new drug application (ANDA) for Isoproterenol hydrochloride injection USP, 0.2mg/mL, single – use sterile Ampoule from the United States Food and Drug Administration (USFDA).

Cipla’s Isoproterenol hydrochloride injection is AP – rated generic therapeutic equivalent version of Hospira Inc’s Isuprel injection and is indicated for the treatment of cardiac problems and heart block.

Jun 14, 10:40 AM (IST)

Rupee Update: The rupee appreciated by 5 paise to 67.60 against the US dollar after the American currency weakened overseas.
Dealers said fresh selling of the greenback by banks and exporters backed up the rupee. 
The dollar turned weak against other currencies overseas even after the US Federal Reserve lifted interest rates and signalled two more hikes this year and four in 2019.
Yesterday, the domestic unit ended 16 paise down to close at a near one-week low of 67.65 against the US currency on  sustained dollar demand.

Jun 14, 10:27 AM (IST)

Jun 14, 10:19 AM (IST)

Market Update: Benchmark indices extended losses in morning as the Sensex shed 192.61 points to 35,546.55, dragged by Infosys, Reliance Industries, ICICI Bank and TCS.

The Nifty slipped below 10,800 levels, falling 63.20 points to 10,793.50. 

Jun 14, 10:10 AM (IST)

UBS handpicks 10 midcaps that could return up to 62% in the next 1 year

UBS handpicks 10 midcaps that could return up to 62% in the next 1 year

The market has not been particularly nice to small and midcap stocks, as some of these counters have lost up to 90 percent value in 2018.

Jun 14, 10:04 AM (IST)

Aditya Birla Capital gains a percent: Edelweiss Securities has initiated coverage with Buy rating on the stock and set a target price at Rs 199, implying potential upside of 42.5 percent.

The company is in a sweet spot to capture the financialisation story, it believes.

The research house expects multiple levers to sustain best-in-class growth & improved return ratios.

It has promising blend of businesses; and scalable and sustainable model while its business model shares similarities with successful financial entities like Bajaj and HDFC, Edelweiss said.

Execution of business strategy is key risk to potential valuation re-rating, it said.

Aditya Birla Capital gains a percent : Edelweiss Securities has initiated coverage with Buy rating on the stock and set a target price at Rs 199, implying potential upside of 42.5 percent. The company is in a sweet spot to capture the financialisation story, it believes. The research house expects multiple levers to sustain best-in-class growth & improved return ratios. It has promising blend of businesses; and scalable and sustainable model while its business model shares similarities with successful financial entities like Bajaj and HDFC, Edelweiss said. Execution of business strategy is key risk to potential valuation re-rating, it said.

Jun 14, 09:58 AM (IST)

Order Win: Larsen & Toubro has won orders worth Rs 1,391 crore across various business segments.

L&T Hydrocarbon Engineering (LTHE), a wholly owned subsidiary of engineering and construction major L&T, has secured new orders in excess of Rs 750 crore in its construction services business vertical.

Water and effluent treatment business has bagged orders worth Rs 432 crore while smart world ex-communication segment has secured an order worth Rs 209 crore.

Jun 14, 09:55 AM (IST)

Buzzing: Shares of Adani Transmission rose more than 3 percent as company received LoI intra state transmission project in Uttar Pradesh.

The company has received the LoI from REC Transmission Projects Company, a wholly owned subsidiary of Rural Electrification Corporation, to build, own, operate and maintain the transmission project in the state of Uttar Pradesh.

The project Ghatampur Transmission has approximately 900 ckt kms of line at voltage levels of 765 KV and 400 KV.

This project is primarily being constructed to establish transmission system for evacuation of power from 3X660MW Ghatampur thermal power project.

Source: moneycontrol