The News International Team
Live Market Commentary
03:30 pm Market closing
It is another day to break records as celebrations continue at Dalal Street. The Sensex closed above 27,000 for first time ever, registering record closing high for 6th day in a row. The 30-share index was up 158.53 points at 27026.08.
The Nifty ended at record closing high for 4th day in a row, after hitting intra-day record high of 8102 in trade today. The Nifty closed up 61.15 points at 8088.85.
Cipla was the biggest gainer on the Sensex, up 5 percent. Other major gainers were Bharti Airtel, Sun Pharma, HDFC Bank and GAIL. Among the losers were Sesa Sterlite, HUL, Hindalco, Tata Power and Tata Steel.
03:10 pm Gold’en time
Indian gold imports and premiums are likely to surge during the rest of the year as buying picks up for the wedding and festival season, the head of the country’s biggest gold refiner said on Tuesday.
Premiums could jump to USD 10-USD 12 an ounce over the global benchmark from the current levels of USD 4- USD 5, said MMTC-PAMP Managing Director Rajesh Khosla.
Imports could climb to 60-70 tonnes per month for the rest of the year from about 40 tonnes in July, Khosla said, adding that August imports were probably around 63 tonnes.
India has not yet released its trade figures for August. “Demand is expected to increase in the coming months as people start buying from September because of the festive season,” Khosla said.
Elecon Engineering’s CMD Prayasvin Patel said the company has received orders worth Rs 61 crore this year and there have been live enquiries worth Rs 4,230 crore. Out of which the company expects to get about Rs 200-250 crore worth of orders shortly.
“Things are looking up this quarter. If the situation continues this way, the whole year is going to be fairly good,” he said.
The stock surged 11 percent.
02:50pm FII View
Ridham Desai of Morgan Stanley feels the market was led by global rally in equities. According to him, investors continue to be bullish on India and the market is underestimating the power of strong global cues.
“Investors are convinced about the potency of this market. New government seems to be sending right signal to investors,” he added.
02:40pm Movers and Shakers
Index heavyweights: Cigarette major ITC, private sector lender HDFC Bank, housing finance company HDFC and petrochemical major Reliance Industries are leading contributors to the market, rising 1-1.6 percent.
Top telecom operator Bharti Airtel and drug maker Cipla topped the buying list, up nearly 5 percent. Sun Pharma and Hero Motocorp gained more than 2 percent. Top lender State Bank of India climbed a percent.
However, shares of Tata Motors, Sesa Sterlite, HUL, ICICI Bank, Tata Steel, M&M, Hindalco and Wipro fell 0.2-1.6 percent.
02:30pm GMR Infra shares in demand
Shares of GMR Infrastructure climbed over 2 percent on signing memorandum of understanding (MoU) with Japanese bank for financial assistance.
The Bangalore-based global infrastructure major said during the course of the State visit of the Prime Minister Narendra Modi’s to Japan, the company signed a memorandum of understanding with Japan Bank for International Cooperation (JBIC) for providing financial assistance to Japanese companies investing in Infrastructure projects of GMR Group.
The objective of this MOU is to provide low cost long duration financing for infrastructure development projects that involve Japanese companies in development of industrial parks, power, energy, ports, airports, highways and railway projects.
Over the next 12 months, GMR and JBIC will work on identifying projects to attract Japanese investments.
02:20pm Lanco Infra to sell more power plants
Debt-ridden Lanco Infra is in talks to its Babandh power plant in Odisha as the company looks to ease its balance sheets, say sources.
The company is eyeing a valuation of Rs 3500 crore for the power plant that has a total capacity of 1320 MW. The plant that sources its fuel from Mahanadi Coalfields Ltd & Captive Coal Mine at Rampia has all major clearances in place.
Sources claim Adani and Jindal Steel and Power Limited (JSPL) are among the companies eyeing this sale. Adani Group refained from commenting on this development.
Lanco Infra has a debt of Rs 34,297 crore and has been trying to offload its assets. Less than a month ago the company sold its 1200 MW Udupi Power plant in Karnataka to Adani Power for over Rs 6,000 crore.
02:10pm Kingfisher in News
The Supreme Court today refused to entertain a petition filed by Kingfisher Airlines against being declared as wilful defaulter, saying it has become infructuous as the Grievance Redressal Committee of Union Bank of India has already passed an order.
“Your grievance has been, that Grievance Redressal Committee (GRC) should not decide the matter but they had already decided it, therefore your plea is infructuous” a bench comprising justices A R Dave and U U Lalit said.
The Kingfisher Airlines had alleged that the order by GRC was passed yesterday, ignoring the plea that the director should be allowed to be represented through lawyers.
However, after the bench said that the plea has become infructuous, the airline counsel submitted that they would challenge the GRC order before the concerned High Court.
State-run United Bank of India yesterday became the first lender to declare debt-ridden Kingfisher Airlines and its promoter Vijay Mallya as wilful defaulters, reports PTI.
02:00pm Bulls are not ready to give a single chance to bears for the second consecutive session today. The 50-share NSE Nifty hit another milestone of 8100-mark in afternoon trade supported by HDFC, HDFC Bank, ITC and Bharti Airtel.
The index surged 71.50 points to 8099.20 and the 30-share BSE Sensex rose 208.46 points to 27076.01 while the BSE Midcap and Smallcap indices gained 1 percent each.
About 1777 shares have advanced, 1079 shares declined, and 119 shares are unchanged.
UR Bhat of Dalton Capital expects the Nifty to be rangebound between 7700 and 8200 over the next 6-12 months, even as the market is in the midst of a multi-year bull run.
In an interview with CNBC-TV18, he said there was a new-found confidence among Indian corporates.