The News International Team
10:45am Buzzing Stocks: Dr Reddy’s Labs gained 2.5% as Bank of America Merrill Lynch met with the management. “The company has responded to observations at Srikakulam post USFDA observations, as of now they have not yet heard back from USFDA. The company reiterated issues unlikely to be materially disruptive,” BoAML said.
JSPL fell over 3.5 percent as media report said the government is expected to reject 2 bids from JSPL’s Gare Palma & Tara coal blocks.
KPIT Technologies declined 1.5 percent as the management updated its Q4FY15 dollar revenue guidance. It expects revenue to be flat sequentially due to cross currency, and the FY15 guidance to be met in constant currency not in dollar terms. Company only sees marginal growth in PAT in FY15 compared to FY14.
Amtek Auto gained 4.5 percent on buying German-based Scholz via Singapore subsidiary. Scholz is a hot die forgings manufacturer. Management told CNBC-TV18 that EBITDA of acquired company is euro 14-15 million and the company will see increase in margins of acquired company in the first year.
10:25am China at 7-year high: China’s main stock index rose to its highest in almost seven years today morning, breaking through a key psychological resistance level to raise investors’ hopes that the market has resumed a bull run begun midway through last year.
The Shanghai Composite Index was on track to rise for a fifth consecutive day, hitting the highest level since June 2008, and standing firmly above 3,400 points – seen by many as a level where many investors tend to reduce holdings.
Trading volume, which touched two-month highs on Monday, continued to expand, as investors regained confidence after Chinese Premier Li Keqiang vowed on Sunday to support the economy if it continues to slide and hurt employment.
The CSI300 index rose 1.1 percent, to 3,745.19 points at the end of the morning session, while the Shanghai Composite Index gained 1.2 percent, to 3,489.46 points.
Hong Kong shares also rose, with the Hang Seng index up 0.3 percent, to 24,022.97 points, and the Hong Kong China Enterprises Index rising 0.5 percent, to 11,876.50.
10:00am Market Check
The market extended rally after a consolidation for last few sessions. The Sensex surged 325.04 points or 1.14 percent to 28762.75 and the Nifty climbed 89.70 points or 1.04 percent to 8722.85.
The broader markets gained too, the BSE Midcap and Smallcap indices rallied 1 percent each. About 1402 shares have advanced, 587 shares declined, and 134 shares are unchanged on the BSE.
Jyotivardhan Jaipuria, Bank of America Merrill Lynch said investors are overweight India, but he believes recovery may be some time away.
“While we are structural bulls on India with an index target of 54,000 by end-2018, we have been highlighting that we see the market being range-bound to negative over next few months. We believe investors should await dips in the market,” he added.
Shares of HDFC, Tata Motors, Dr Reddy’s Labs, Cipla, Hindalco and Sesa Sterlite topped the buying list on Sensex, up 2-3 percent.