The News International Team
12:58pm Market Update
The market maintained its morning gains with the Sensex rising 62.18 points to 27465.72 and the Nifty gaining 23.75 points to 8272.
The market breadth was positive as about 1510 shares have advanced and 1060 shares declined on the Bombay Stock Exchange. The BSE Midcap Index gained 0.9 percent and Smallcap climbed 0.8 percent.
KEC International bagged orders worth Rs 1412 crore in T&D and cable businesses.
According to Ramesh Chandak, MD & CEO, the average margins for these new orders would be over 10 percent, which are much better than earlier 5.5-6 percent margins.
Moreover, with the last two quarters showing a pick-up in growth, FY15 overall has been a better year, says Chandak.
The order book backlog is more than Rs 9000 crore including these recent orders and the L1 for the company is more than Rs 2000 crore, says Chandak.
12:30pm Brent crude falls further
Brent crude prices dropped towards USD 57 a barrel on Wednesday as weak Chinese manufacturing data and demand concerns outweighed supply disruptions in Libya.
China’s factory sector shrank for the first time in seven months in December, with the final HSBC/Markit Purchasing Managers’ Index (PMI) for this month coming in at 49.6.
The final reading was higher than a preliminary reading of 49.5, but down from the final 50.0 in November. The 50.0 mark separates growth from contraction.
China is the world’s second largest oil consumer and any contraction in its factory sector can have a big impact on demand.
Brent for February delivery fell 69 cents to USD 57.21 as of 0622 GMT, after earlier dropping as low as USD 56.87.
US crude for February delivery was down 50 cents to USD 53.62, reports Reuters.
12:00pm Market Check
Equity benchmarks continued to trade higher with marginal gains while the broader markets outperformed. The Sensex advanced 45.02 points to 27448.56 and the Nifty rose 17.25 points to 8265.50.
The BSE Midcap and Smallcap indices gained 0.8 percent each. About 1443 shares have advanced, 977 shares declined, and 109 shares are unchanged on the Bombay Stock Exchange.
The rupee inched higher on global unwinding of dollar longs, up 8 paise to 63.30 a dollar. Indian traders too sold long dollar positions ahead of January quarter which is usually strong for the rupee.
State-run power equipment maker BHEL and drug maker Dr Reddy’s Labs topped the buying list on Sensex, up 2 percent each followed by ICICI Bank, Reliance Industries, Axis Bank, Infosys, SBI, ITC, NTPC and ONGC with 0.2-1 percent gains.
Telecom stocks were in focus as Telecom Regulatory Authority of India released recommendations on reserve price and valuation for 2100 megahertz. Reserve price pan-India kept at Rs 2720 crore. Analysts say overall, reserve price is on the higher side and only serious players are expected to bid. Bharti Airtel gained nearly a percent.
Auto stocks were sluggish reacting to the likelihood of the government withdrawing excise duty concessions to the auto industry from January 1. Maruti told CNBC-TV18 that the company has not received any communication from the government as yet but do not expect long term negative impact on car demand. Mahindra & Mahindra fell 1.6 percent. Bajaj Auto and Maruti Suzuki declined over half a percent while Tata Motors and Hero Motocorp rebounded, up over 0.4 percent.
Globally, China led gains, up 2 percent in thin trade despite data showing slight contraction in manufacturing activity.