Jul 02, 2018 11:34 AM IST | Source: Moneycontrol.com
Market Live: Sensex falls 250 pts as Asian stocks extend losses amid trade concerns
Asian stocks were mixed on the first trading day of the second half of the year, with trade tensions remained key concern for investors
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highlights
June tractor sales
Management Interview: Rajiv Bajaj , MD of Bajaj Auto told CNBC-TV18 that Nigeria has rewarded with the highest growth in terms of motorcycle exports. "For the first quarter last year, it was about 39,000 vehicles totally. This time it is a 104,000 vehicles so, that's been outstanding. For now, I can only say that in the first quarter we have recorded a 31 percent growth overall in exports," he said. At about 540,000 vehicles this is our highest-ever quarterly exports in the history of the company, he added. "If we were to simply extrapolate it, it suggests that we should be hitting something 2 million at the end of the year," Bajaj said.
ITC in focus: Cigarette-to-FMCG major ITC will look at taking over Telangana unit of Ballarpur Industries, reports CNBC-TV18 quoting Cogencis.
June tractor sales: Escorts said total sales grew by 72.8 percent to 9,983 units in June 2018 compared to 5,776 units in same month last year.
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The Nifty50 closed the week on a weak note with the index losing by about 1 percent in a volatile week weighed down by weak global cues, selling by foreign institutional investors (FIIs), rising crude oil prices as well as weakness in rupee, which touched an all-time low.
Market Update: The market remained under pressure as Asian stocks extend losses with China's Shanghai Composite, South Korea's Kospi and Japan's Nikkei falling nearly 2 percent as investors keep an eye on trade tensions between the US and its trading partners, most notably China.
The Sensex slipped 245.74 points to 35,177.74 and the Nifty dropped 81.40 points to 10,632.90. About two shares declined for every share rising on the BSE.
All sectoral indices traded in the red barring IT.
M&M June sales number: Mahindra and Mahindra (M&M) has reported 22 percent rise in its June tractor sales number at 40,529 units against 33,093 units in June 2017.
Its domestic tractor sales was up 24 percent at 39,277 units, while exports was down 13% at 1,252 units.
Buzzing: Share price of Thermax added 4.3 percent as company won an order worth Rs 340 crore.
The company has concluded an order of Rs 340 crore from a leading Indian steel manufacturer for a specially designed boiler, electric turbo generators and ancillary equipment for their production facility in Maharashtra, India.
The specially designed boiler will use waste gases produced in the steel manufacturing process to generate high-pressure steam for power generation using high-efficiency reheat cycle.
The scope of work includes design, engineering, procurement, manufacturing, supply, installation and commissioning.
Buzzing: Shares of Ashok Leyland rose 2.5 percent intraday as company reported robust June sales number.
The company total June sales numbers increased by 28 percent at 15,791 units against 12,333 units, in the same month last year.
Also, company's April-June 2018 sales numbers rose 48 percent at 42,127 against 28,498 units in April-June 2017.
Its light commercial vehicle (LCV) sale numbers increased by 45 percent at 4,534 units and M&HCV sale numbers rose 22 percent at 11,257 units.
Market Update: The market extended losses in morning with the Sensex falling more than 200 points. Asian stocks are under pressure with China's Shanghai losing over a percent ahead of a looming deadline when tariffs from both Washington and Beijing are expected to take effect.
The Nifty Midcap index traded in line with frontliners, falling more than half a percent.
The 30-share BSE Sensex fell 223.65 points to 35,199.83 and the 50-share NSE Nifty slipped 74.80 points to 10,639.50. About 1,133 shares declined against 874 advancing shares on the BSE.
CCI Approval: Mobile tower firm Bharti Infratel today said it has received approval of the fair trade regulator CCI for its proposed merger with Indus Towers Ltd.
In April this year Bharti Airtel, Idea Cellular and Vodafone Group had announced an agreement for merger of Indus Towers and Bharti Infratel to create the largest mobile tower operator in the world outside China with over 163,000 towers across 22 telecom service areas.
"...approval of Competition Commission of India (CCI) has been received for the proposed merger of Bharti Infratel Ltd and Indus Towers Ltd," the mobile tower firm said in a regulatory filing.
The combined company will own 100 percent of Indus Towers. Indus Towers is currently jointly owned by Bharti Infratel (42 percent holding), Vodafone (42 percent), Idea Group (11.15 percent) and Providence (4.85 percent).
Post the deal, Bharti Airtel and Vodafone will jointly control the combined company, and the transaction is expected to close before the end of 2018-19, subject to statutory approvals.
Manufacturing PMI: India’s manufacturing conditions improved in June at the strongest pace since December 2017, supported by the sharpest gains in output and new orders in 2018 so far.
Reflecting greater production requirements, firms were encouraged to engage in purchasing activity and raise their staffing levels. On the price front, input cost inflation was the sharpest since July 2014, whilst output charges rose at a stronger pace. Business confidence eased to the weakest since last October.
The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) rose from 51.2 in May to 53.1 in June. "This was consistent with the fastest improvement in the health of India’s manufacturing economy in 2018 so far. Manufacturing production rose in June, thereby extending the period of expansion to 11 months. Moreover, the rate of growth was sharp and the most pronounced since last December," Nikkei IHS Markit said.
Buzzing: Share price of MOIL advanced 2.5 percent intraday as company revised prices of different grades of manganese ore and other products, effective July 1.
The prices of ferro grade, SMGR (Mn30% & Mn25%), chemical grade and fines have been increased by about 5 percent on the existing prices. However, a discount at 5 percent will be offered on the prices effective from July 01, on specific grade of material BGF534 for dispatches during July'2018.
The basic price of electrolytic manganese dioxide (EMD), has been increased by Rs 200 PMT.
Ferro manganese/ferro manganese slag and some identified grades of manganese ore will continue to be sold on e-auction basis as well as through metal mandi (M3) of MSTC.
Good Debut: Railways consultancy firm RITES started off the first day at Rs 190 per share on the BSE on Monday.
The stock price rallied 2.7 percent compared to issue price which fixed at Rs 185 per share.
It traded 9.7 percent higher at Rs 202.95 after hitting a high of Rs 205.75.
The Rs 466-crore initial public offer had garnered strong investor demand, with the issue getting oversubscribed 67.24 times during June 20-22.
It was the first state-owned firm to hit the IPO market in the current fiscal.
New Listing: Shares of Fine Organics listed with a premium of over 4 percent on the National Stock Exchange (NSE).
The stock listed at Rs 815 apiece, a premium of Rs 32 to the issue price of Rs 783, on the exchange.
The Rs 600-crore initial public offer was oversubscribed by 8.99 times during June 20-22, 2018.
The IPO comprised of offer for sale of 76,64,994 equity shares by the promoter group selling shareholders who are Prakash Damodar Kamat, Mukesh Maganlal Shah, Jyotsna Ramesh Shah, Jayen Ramesh Shah, Tushar Ramesh Shah and Bimal Mukesh Shah.
Fine Organic is the largest manufacturer of oleochemical-based additives in India and a strong player globally in this industry, according to CRISIL Research Report.
Buzzing: IDBI Bank’s shares rose around 6 percent intraday after the imminent deal between the lender and LIC was announced late on Friday.
The Insurance Regulatory Development Authority of India (IRDAI) on Friday allowed Life Insurance Corporation of India (LIC) to invest up to 51 percent in IDBI Bank.
Sources told Moneycontrol this is a special case dispensation that has been given to LIC and the 15 percent equity investment cap still remains. According to the regulator's norms on investment, insurance companies cannot hold more than 15 percent stake in any company.
"They presented us this proposal and the board has given a go-ahead to them for this case," said a senior IRDAI official.
However, the official added, IRDAI will have to be apprised on the deal process, timeline, and other information.
Tata Steel in Focus: Shares of Tata Steel rose more than 3 percent as company signed joint venture (JV) agreements to create new steel champion in Europe.
Tata Steel has approved the terms to create a 50:50 joint venture which will combine the European steel businesses of the company and thyssenkrupp AG and has adopted resolutions for the signing of the definitive agreement, company said in release.
The formal execution of the definitive agreements is expected shortly.
JV company will be positioned as a leading pan European high quality flat steel producer with a strong focus on performance, quality and technology leadership to support customers’ sustainability ambitions.
Buzzing: Natco Pharma share price jumped as much as 3 percent in morning after the launch of drug that is used for the treatment of Hepatitis C, in India.
Natco Pharma announced today that it is the first company in India to launch under its brand Hepcinat Plus, the generic fixed dose combination of Sofosbuvir 400 mg and Daclatasvir 60mg Tablet.
The drug is used for the treatment of patients with chronic hepatitis C virus (HCV) infection
Natco has launched Hepcinat Plus at an MRP of Rs 17,500 for a bottle of 28 tablets.
Prakash Industries in focus: The company said the Odisha Government had executed the mining lease of Sirkaguttu Iron Ore Mine, having Geological Reserves of around 9.9 million tonnes, in favour of the company in January 2017.
The company has already received Stage-I approval for diversion of Revenue Forest Land from Ministry of Environment, Forest & Climate Change. The company is now proceeding with other required clearances, and steps are being taken to operate the mine by next month.
With this captive sourcing of Iron Ore, the Company's dependence on open market sources will reduce substantially; thereby improving the overall operating and profitability margins of the company.
Market Update: The market is under pressure with the Sensex falling around 150 points following correction in major Asian stocks amid US-China trade tensions.
The Nifty is also trading way below 10,700 levels, weighed down by Reliance Industries, L&T, ITC and HDFC twins.
The Nifty Midcap index outperformed frontliners, trading flat.
Bajaj Auto and Tata Motors are up around 2 percent each after strong auto sales data for June while Tata Steel gained 2 percent after a definitive agreement with ThyssenKrupp to spin off its European steel assets into a 50:50 joint venture.
Auto Sales: Two and three-wheeler maker Bajaj Auto sold 4.04 lakh units in June 2018, which were quite higher that Nomura expectation of 3.86 lakh units.
Its total sales grew by 65 percent over 2.45 lakh units sold in same month last year.
Domestic sales during the month shot up 85 percent year-on-year to 2.34 lakh units while exports jumped 44 percent to 1.70 lakh units, the company said in its filing.
Total motorcycle sales in June 2018 grew by 65 percent to 3.37 lakh units compared to 2.04 lakh units sold in same month last year.
Bajaj Auto reported highest-ever 3-wheeler sales that increased sharply by 66 percent to 66,677 units YoY in June 2018.
Market Opening: Benchmark indices started off the first day of second half of CY18 on a flat note, tracking mixed Asian cues amid ongoing trade tensions.
The 30-share BSE Sensex rose 32.99 points to 35,456.47 and the 50-share NSE Nifty gained 0.80 points at 10,715.10.
Tata Motors, Tata Steel, Maruti Suzuki, HPCL, BPCL, Bajaj Auto, Titan Company, Tech Mahindra and Infosys are early gainers.
Vedanta, Eicher Motors, Coal India, NTPC, GAIL, ITC and Bharti Airtel are early losers.
The Nifty Midcap index gained 20 points while Nifty Bank fell 82 points.
Ashok Leyland, HEG, Graphite India and IDBI Bank gained up to 5 percent.
Nalco, Andhra Bank and Bata India are under pressure.
Market Pre-Opening Update: The Sensex settled at 35,545.22, up 121.74 points and the Nifty rose 18.10 points at 10,732.40.
Rupee Opening: The Indian rupee opened flat at 68.48 per dollar on Monday versus 68.47 Friday.
On Friday, rupee came under pressure in the first half of the sessions but losses for the currency were limited on suspected RBI interventions that curbed any major weakness for the currency and as the dollar weakened against its major crosses, said Motilal Oswal.
On Friday, data released by the RBI showed India’s FX reserves saw further erosion of USD 2.25billion and reserves for the week ended June 22 stands at USD 407.81 billion.
Today in the Asian session global crude oil prices have corrected after US president during the weekend tweeted that he has urged Saudi to increase oil production to keep prices in control. Today, USDINR pair is expected to quote in the range of 68.40 and 68.85, it added.
Fundraising: The Gautam Adani-led Adani Group said it plans to raise Rs 5,000-6,000 crore of equity through a combination of primary issuances and secondary monetisation of its stake in some of its subsidiaries.
The Adani Family through trusts and other entities hold controlling interest in entities including Adani Enterprises (AEL), Adani Ports and SEZ (APSEZ), Adani Power (APL), Adani Transmission (ATL) and Adani Green Energy (AGEL).
As part of the equity-raising program, the Group sold nearly 4 percent stake in APSEZ through an on market block trade raising Rs 3,000 crore on June 21 and June 29, 2018, it said in a release today.
The group also plans to sell some of its stake in ATL and AGEL.
Technical Outlook by LKP:
Index closed a week at 10,714.1 with loss of 107 points on weekly basis. Index closed a weak above 10,700 hinting bulls are taking control from the lower levels, now support for index is near 10,650-10,600 zone holding these levels we expect index to trade on positive note and resistance is coming near 10,740-10,800.
Market Pre-Opening: Benchmark indices traded higher in pre-opening despite mixed trade in Asian stocks amid trade tensions.
The 30-share BSE Sensex rose 141.55 points to 35,565.03 and the 50-share NSE Nifty gained 18.60 points at 10,732.90.
Markets@Moneycontrol: Nifty likely to open flat; 3 stocks which could give up to 10% return
The Nifty50 is likely to open flat on Monday tracking muted trend seen in other Asian markets. The index closed 125 points higher at 10,714 on Friday.