Sensex, Nifty, GST, Inflation, Stock market today, inflation

The BSE Sensex and NSE Nifty rose on Monday after touching a more than three-month low earlier in the session as buying at lower levels supported market ahead of the US Federal Reserve meeting later this week. Investors were also somewhat comforted after data released late on Friday showed industrial output grew a much stronger-than-expected 9.8 per cent in October from a year earlier, its fastest pace in five years.

Sensex closed 105.92 points up at 25150.35, while Nifty 50 index settled 39.60 points up at 7650.05.

In the 50-share index, Adani Ports, Hindalco, Coal India, ZEEL and Ambuja Cements gained between 2.50 per cent and 5.80 per cent. On the other hand, Axis Bank, Tata Motors, Bharti Airtel, ONGC and State Bank of India fell between 0.70 per cent and 2.15 per cent.

Shreyash Devalkar, fund manager, equities, BNP Paribas Mutual Fund, said, “Key benchmark indices started the week on a positive note after touching more than a three month low earlier in the session. While investors resorted to some value buying, there seems to widespread caution ahead of the Fed’s meeting on the 16th of this month.”

Among the sectoral indices on the BSE, the BSE Metal index gained the most — 2.40 per cent, followed by BSE IT index (up 0.83 per cent), BSE TECk index (up 0.79 per cent) and BSE Healthcare index (up 0.71 per cent.)

The BSE Realty, BSE Capital Goods, BSE Oil & Gas and BSE Bankex slid 0.19 per cent, 0.15 per cent, 0.14 per cent and 0.01 per cent, respectively.

Traders also took some encouragement with report of India’s wholesale inflation, despite easing a bit remaining in negative territory for the thirteenth  month, coming at -1.99 per cent in November compared to -3.81 per cent in October. In November last year, the WPI-based inflation was (-) 0.17 per cent. However, wholesale food price inflation in November doubled to 5.20 per cent year-on-year as compared to October on account of sharp rise in prices of pulses, onions and vegetables.

Steel stocks were in action, after the government imposed anti-dumping duty on stainless steel imports, in a bid to protect the struggling domestic industry from cheap imports. The anti-dumping duty-in the range of 5.3-57.4 per cent-has been levied on imports of cold rolled flat products of stainless steel. JSW Steel and Jindal Steel gained 5.52 per cent and 4.78 per cent on BSE, Tata Steel, Vedanta and SAIL too gained over a per cent each.

Sugar stocks too traded higher on report that the government plans to increase the cess on sugar by almost Rs 100 per quintal to fund its ambitious programme of paying Rs 4.50 per quintal directly into the bank accounts of growers.

Market breadth for the day remained positive and advances to declines ratio for Nifty stood at 33:15 for the day. Volumes for Nifty stocks stood at 1,533 lakh against Friday’s volumes of 1,728 lakh for Nifty stocks.

The global cues remained mixed with Asian markets making soft closing; however there was smart rebound in the Chinese market after economic data for November came in better than expected.

China’s industrial production growth accelerated to a 5-month high of 6.2 per cent in November, likewise, retail sales advanced 11.2 per cent annually after rising 11 per cent in the prior month. On the same time the Japanese market suffered sharp cuts as the yen strengthened against dollar and commodities stocks receded. The European markets though rebounded from their Friday’s sell-off and traded with good gains in early deals.

Asian Indices Last Trade              Change in Points Change in %  
Shanghai Composite 3,520.67 86.09 2.51
Hang Seng ##### -154.2 -0.72
Jakarta Composite 4,374.19 -19.33 -0.44
KLSE Composite 1,629.96 -10.18 -0.62
Nikkei 225 ##### -347.06 -1.8
Straits Times 2,815.04 -19.59 -0.69
KOSPI Composite 1,927.82 -20.8 -1.07
Taiwan Weighted 8,040.16 -75.73 -0.93


Markets through the day

3.30 pm: Sensex closed 105.92 points up at 25150.35, while Nifty 50 index settled 39.60 points up at 7650.05.


3.17 pm: Natco Pharma announced on Monday that it is the 1st company in India to get approval for generic Daclatasvir Dihydrochloride (“Daclatasvir”) tablets. Daclatasvir is the first-in-class NS5A inhibitor used in combination with Sofosbuvir for the treatment of patients with chronic hepatitis C virus (HCV) genotype 3 infection. Compared to other treatment options, this combination not only increases the cure rate, but is also regarded as a valuable treatment option in some of the difficult-to-treat HCV patient subsets. The scrip was trading 3.37 per cent up at Rs 550.10. Sensex was up 123 points at 25,168.

3.03 pm: Sensex was up 88 points at 25,132. Nifty was up 33.80 points at 7,644. Pesident Pranab Mukherjee has said that Political stability and several new initiatives taken by the government including Make in India, Digital India and Swachh Bharat, will help the country emerge as an attractive investment destination. He further stated that the country could achieve 8 per cent growth rate if it makes united efforts in this direction.

2.53 pm: Sensex was marginally up 2.49 points at 25046. Adani Ports, Hindalco and Tata Steel were up between 2 per cent – 4.10 per cent

2.17 pm: Share price of Natco Pharma gained over 1 per cent the company and its partner Alvogen on Monday said they have settled patent infringement suit with Gilead Sciences Inc and others over Tamiflu, in a US court. Sensex was up 23.40 points at 25,067.

2.03 pm: Sensex was up 127 points at 25,172. The top gainers on the Sensex were Tata Steel up by 2.80 per cent, Hindalco up by 2.69 per cent, HUL up by 2.41 per cent, Coal India 2.36 per cent and Infosys up by 1.91 per cent. On the flip side, Tata Motors were down by 1.69 per cent, ONGC down by 1.07 per cent, TCS down by 0.94 per cent, Bharti Airtel down by 0.85 per cent and Larsen & Toubro down by 0.48 per cent were the top losers.

1.41 pm: Market breadth on the BSE was positive; there were 1,497 shares on the gaining side against 946 shares on the losing side while 946 shares remain unchanged. Sensex was up 111 points at 25,156.

1.30 pm: Shares of sugar companies gained on Monday after the government plans to increase the cess on sugar by almost Rs 100 per quintal to fund its ambitious programme of paying Rs 4.50 per quintal directly into the bank accounts of growers.

In the afternoon trade (at 1.30 pm), the share price of Balrampur Chini Mills, Bajaj Hindusthan Sugar, Dhampur Sugar Mills and EID Parry were trading 3.57 per cent, 2.08 per cent, 2.61 per cent and 1.47 per cent up at Rs 72.45, Rs 17.20, Rs 62.80 and Rs 175.50, respectively. Sensex was up 0.52 per cent at 25,174.25.

1.15 pm: Sensex was up 108 points at 25,153. Nifty was up 37.60 points at 7,648.05. Hotel Leelaventure has received an approval from the Competition Commission of India (CCI) for sale of its Goa property. CCI approved acquisition of Hotel Leelaventure’s Goa property by Malaysia-based MetTube. The share price of Hotel Leelavenutre was up 1.77 per cent at Rs 20.10.

12.50 pm: Shares related to auto counter remained under pressure after the National Green Tribunal (NGT) on Friday ordered immediate ban on registration of diesel-run cars in the national capital.

12.42 pm: Deflationary trend eased in November with WPI inflation moving up to (-)1.99 per cent as food articles, led by pulses and onion, turned costlier. This is the 13th month in a row when the wholesale inflation remained in the negative territory. It has been in the negative zone since November last year.

11.31 am: Share price of Indian Oil was trading 0.71 per cent up on plans to invest Rs 1.75 lakh crore for expansion. In a bid to expand its refinery capacity, building petrochemical plants and laying pipelines, Indian Oil Corporation (IOC) is planning to invest Rs 1.75 lakh crore over the next seven years. Of total, the company will spend Rs 34,555 crore in the 15 million tonnes a year from Paradip oil refinery in Odisha that has recently started producing fuel. Besides, the refinery expansion projects planned include raising Panipat refinery capacity to 20.2 million tonnes from 15 million tonnes currently at a cost of Rs 15,000 crore as well as raising capacity at Koyali, Mathura and Barauni units by 2020. Sensex was up 42 points at 25,086.

11.15 am: Foreign Direct Investment (FDI) in services sector, which includes banking, insurance, outsourcing, R&D, courier and technology testing, has surged by 20 per cent to $1.46 billion (Rs 9,404 crore) during April- September 2015 as compared to $1.22 billion in the same period last fiscal, as per latest data released by Department of Industrial Policy and Promotion (DIPP). The services sector contributes over 60 per cent to the India’s Gross Domestic Product (GDP) and receives high foreign inflows. The BSE Bankex was up 0.21 per cent at 18690.81. Sensex was up 52 points at 25,096.

11.07 am: Sensex was up 49.22 points at 25,093.65. Nifty 50 index was up 23.25 points at 7,633.70. In the 50-share index, Ambuja Cements, Adani Ports, Zeel, Ultratech Cements and Sun Pharma were up between 0.65 per cent and 1.15 per cent. On the other hand, Tata Motors, Cairn India, Mahindra and Mahindra,Punjab National Bank and Axis Bank were down between 1.40 per cent and 4.50 per cent.

11.01 am: Sun Pharmaceutical Industries’ subsidiary Sun Laboratories is planning to hit the domestic bond market in order to raise up to Rs 1,000 crore to fund an internal restructuring. The Mumbai-based drug maker has divided the issue into two parts of Rs 500 crore, one maturing in two years and the other in three years. It is priced in the range of 7.90 per cent – 7.96 per cent, 25-35 basis points higher than similar maturity government securities, making the borrowing cost less than any term bank loan. The share price of the pharma major was up 1.40 per cent at Rs 768.75.

10.50 am: Infosys, a global leader in consulting, technology, outsourcing and next-generation services, has made an investment of $3 million in WHOOP, an early stage company offering a performance optimization system for elite professional sports teams. WHOOP’s system includes a device worn by athletes on their wrist that continuously measures key strain and recovery variables, and actionable analytics powered by proprietary algorithms that generate intensity and recovery scores. This enables athletes and coaches to gain visibility into the drivers of high performance, guide training and make optimal game day decisions. The investment will be completed by December 16, 2015.

10.33 am: Benchmark index BSE Sensex recovered 255 points from day’s low of 24867.73. The index was trading 78 points up at 25,122.42. Nifty was up 29.95 points at 7640. The government and the opposition seem to be bracing for a battle of nerves over the GST and National Herald issues in both the Houses of Parliament from today.

10.16 am: Brokers said sustained selling by participants amid a weak trend in other Asian markets ahead of the US Federal Reserve’s hotly-anticipated meeting this week which probably will hike interest rates and global oil prices continued to retreat to multi-year lows, dampened the trading sentiments. Sensex was down 39.39 points at 25005.04. Nifty was down 9.15 points at 7601.30.

9.41 am: The rupee again breached the 67-mark by depreciating 18 paise to 67.06 against the dollar in early trade on Monday at the Interbank Foreign Exchange, mainly on strong demand for the American unit from importers and some banks amid a lower opening of the domestic equity market. Sensex was down 121.74 points at 24,922. Nifty was down 33.55 points at 7,576.

9.34 am: Federal Bank share price was up 0.18 per cent at Rs 54.70. The private sector lender Federal Bank, which has been battling high non-performing assets (NPAs), has sold the loans of GOL Offshore (formerly Great Offshore) to asset reconstruction companies (ARCs). The bank sold it to ARCs for Rs 140 crore in the October-December quarter. GOL Offshore is one of the key players in the offshore oilfield service segment. It provides drilling, offshore support services and marine and air logistics to oil & gas companies. With stress increasing in the corporate sector, the bank had seen its asset quality deteriorating in the past couple of quarters. In the quarter ended September, the gross NPA as a percentage of total advances increased to 2.90 per cent, compared to 2.1 per cent in the corresponding period a year ago.

9.30 am: Omkar Speciality Chemicals (OSCL), which manufactures inorganic and organic intermediates and active pharmaceutical ingredients (APIs), is foraying into the vitamins segment. The company’s product segments include iodine compounds, selenium compounds, intermediates, resolving agents, veterinary growth enhancers and APIs, which comprise more than 200 products. OSCL, which exports to 38 countries, is looking at entering newer markets like Australia and New Zealand from March-April 2016. Omkar Speciality Chemicals shares gained as much as 1.42 per cent in the early trade. Sensex was down 61.12 points at 24,983. Nifty was down 32.05 points at 7,578.40.

9.27 am: The Pune-based Kalyani Forge, which is into manufacturing of precision forged and machined components, plans to double turnover to Rs 500 crore in the next 2-3 years by entering a new product range and expansion. The company is expanding its machined components capacity by 25 per cent, which is expected to be ready by the current fiscal year. The company has identified 4 business verticals for growth and proposes to deliver value added solutions to the customers by supplying semi-finished or ready to assemble parts. Kalyani Forge share price was up 4.64 per cent at Rs 263.90.

9.19 am: Floods in Chennai are expected to have a “material impact” on TCS’ current quarter revenues, the country’s largest software services firm said on Friday. The October-December quarter is usually a weak quarter for the Indian IT players. Share price of TCS was trading 1.17 per cent down at Rs 2,359.20. For top stocks in focus today click here.

9.18 am: Inflation data for November based on the wholesale price index (WPI) and the consumer price index (CPI) will be out on Monday.

9.16 am: Maruti Suzuki shares were up 0.44 per cent as Prime Minister Narendra Modi on Saturday said that for the “first time” India will export to Japan cars which will be made domestically by Maruti Suzuki as part of the ‘Make in India’ initiative. Sensex was down 100.38 at 24,944. Nifty was down 42.95 points at 7,567.

9.15 am: The BSE Sensex and NSE Nifty opened in red on Monday tracking weak global cues. Sensex opened 108.83 points down at 24,935.60, while Nifty50 index opened 52.25 points down at 7,558.20.

Asian stocks fell on Monday and China’s yuan hit fresh 4-1/2 year lows as plunging oil prices added to investors’ nervousness about riskier assets ahead of an expected US rate rise by the Federal Reserve later in the week.

On Friday, the Dow sank 1.8 per cent and the S&P 500 lost 1.9 per cent as plunging crude prices added to fears of a possible spike in volatility if the Federal Reserve raises interest rates on Wednesday for the first time in nearly a decade, as widely expected.

Back home, Sensex closed 207.89 points down at 25,044.43 on Friday, while NSE Nifty50 index settled 72.85 points down at 7,610.45. Foreign investors have pulled out nearly Rs 5,500 crore from stock markets since the beginning of December.

India’s industrial production grew at five-year high rate of 9.8 per cent in October, a significant rebound from 3.84 per cent growth recorded in September 2015 and a contraction of 2.7 per cent in October last year. However, Chief Economic Advisor (CEA) Arvind Subramanian has cautioned that one has to be careful while interpreting the data as the spike could be on account of Diwali purchases. He said “Good number, hope this continues, but one shouldn’t read too much into month to month number”.

According to the data released by the NSE, the Foreign Institutional Investors (FIIs) were net sellers of Rs 758.33 crore in index futures and options segments, as per Friday’s data, December 11, 2015.

FIIs were net sellers of index futures to the tune of Rs 921.21 crore and they bought index options worth Rs 162.88 crore. In the stock segment, FII’s were net buyers of stock futures worth Rs 223.43 crore, while they sold stock options worth Rs 58.38 crore.


By Adam