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Sensex holds early gains; ABG Shipyard, OCL India in focus

12:00

The News International Team

01:10pm Market Update: The Sensex rose 209.65 points to 29214.31 and the Nifty climbed 60.40 points to 8822.50. About 1359 shares have advanced, 1267 shares declined, and 201 shares are unchanged on the BSE.

HDFC and Infosys were biggest contributores to the Sensex gains, up 2-2.7 percent. Tata Motors and State Bank of India gained over a percent.

01:05pm Tata Steel under pressure: Tata Steel Thailand PCL, the Thai unit of India’s Tata Steel Group, said it expects to post a net loss for the fiscal year ending March 2015 due to falling steel prices and weak demand.

But improved domestic demand and better outlook for steel prices should help it flip to a profit in the next fiscal year, President and Chief Executive Rajiv Mangal told reporters.

Thailand’s domestic steel demand is expected to rise at least 5 percent in 2015, while steel prices have bottomed out and should gradually increase, he said.

12:55pm OCL India in News: Dalmia Bharat says Dalmia Cement has increased stake in OCL India from 48 percent to 74.6 percent. The company bought this stake in OCL via inter-se transfer.

Dalmia Bharat holds 85 percent stake in Dalmia Cement.

12:30pm FII View on Budget

Michael Kurtz, chief Asia equity strategist at Nomura says the Modi government will remain focused on fiscal consolidation and hence doesn’t expect a relaxation of fiscal constraints in the Budget. He expects finance minister Arun Jaitley to maintain fiscal deficit target of 3.6 percent for FY16.

Kurtz, however, expects infrastructure investment to be hiked to 2.5 percent of GDP in the Budget and for it to come through pruning of subsidies and more asset sales. He expects a very strong Budget with focus on reforms.

12:00pm Market Check

The market continued to hold its morning gains supported by oil, select banking & financials, technology and auto stocks. All eyes are on the expiry of February derivative contracts and Railway Budget (both on Thursday).

The 30-share BSE Sensex climbed 206.19 points to 29210.85 and the 50-share NSE Nifty rose 60.45 points to 8822.55. The broader markets underperformed benchmarks with the BSE Midcap and Smallcap indices rising 0.3 percent each.

Vikas Khemani, President & CEO, Edelweiss Securities clearly believes that since the market is already entering into the Budget with built-in expectations, so it is more likely to be in a wait and watch mode. Therefore the decline seen in the last two days could be termed as nervousness.

The market is already overbought and is likely to wait for the event to get over before showing a confirmed trend. So it is unlikely that there would a big post-Budget rally, says Khemani.

ABG Shipyard gained 18 percent on reports that the Mahindra group is looking to acquire a controlling stake in the company. ABG is in the midst of a Rs 11,000 crore debt restructuring plan.

Dalmia Bharat gained 5 percent and OCL India fell 5 percent. Sources told CNBC-TV18 that Dalmia Bharat bought 26.6 percent stake in OCL India today in an inter-se promoter transfer. OCL India will become a subsidiary of Dalmia Bharat after the transaction.

Minister of state for fertiliser, Hansraj Ahir, says they have planned financial restructuring for three sick companies including Madras Fertiliser and FACT, both stocks gained almost 8-9 percent.

Global cues supported the market as most asian equities traded higher reacting to a positive HSBC Flash PMI number from China. Janet Yellen’s Dovish Congressional testimony also supported sentiment. Brent crude continued to trade sub USD 60 a barrel.

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