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Sensex drags 114 pts: Reliance, SBI, Coal India gain 1%


The News International Team

03:30 pm Market close: The market ended on lower note. The Sensex was down 114.26 points at 28622.12 and the Nifty slipped 37.40 points at 8685.90. About 1275 shares advanced, 1582 shares declined and 198 shares were unchanged.

Reliance, SBI, HDFC Bank, Coal India and Hero MotoCorp were top gainer in the Sensex. Among the losers are NTPC, BHEL, Tata Motors, Wipro and M&M.

03:15 pm Global stocks: European shares followed Asian stocks higher and the dollar held steady before a Federal Reserve meeting that’s expected to lay the groundwork for the first increase in US interest rates in nearly a decade.

The Fed is widely expected to remove the word “patient” from its statement on the timing of its first hike since 2006, possibly paving the way for policy tightening as early as June.

Chinese stocks rose for a sixth successive session in anticipation of fresh government stimulus. The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.4 percent. China’s average new home prices fell at their fastest pace on record last month, data showed on Wednesday.

03:00pm Market Update: The Sensex dropped 135.28 points to 28601.10 and the Nifty declined 46.80 points to 8676.50. About 1202 shares have advanced, 1578 shares declined, and 195 shares are unchanged on the BSE. 

02:45pm Crude outlook: A global oversupply of oil is set to rise as China pauses in the build-up of its strategic reserves and Asian refineries slow crude imports ahead of the spring maintenance season, putting more downward pressure on prices.

China’s purchases to fill its strategic petroleum reserves (SPR) had been one of the main drivers of Asian demand since August of last year, with the No.2 oil consumer taking up cheap crude to fill its tanks despite slowing economic growth.

Yet China could pause its reserve purchases soon as tank sites reach their limits and new space only becomes available later this year.

02:30pm Star Ferro Cement on broker’s radar: SFCL is the largest cement player in the North-East region (NER) with over 23 percent market share. Being located in a geographically complex region, SFCL enjoys a competitive advantage in the NER, which also imports cement from other neighbouring states leading to higher cement prices in the NER region.

Demand growth in this region has consistently remained higher than the growth at pan-India level. In order to reduce imports, the company has expanded its capacity from 1.5MT in FY13 to 3.6 MT in FY15. This, in turn, has helped SFCL to gain market share in the NER.

With the government’s thrust on infrastructure development, ICICIdirect expects demand growth in this region to remain healthy over the next 3-4 years. Given this backdrop, the brokerage expects the company to clock revenue CAGR of 25.5 percent in FY15-17E.

ICICIdirect initiates coverage on Star Ferro Cement with a buy recommendation.

02:00pm Market Check

The market continued to see marginal selling pressure amid consolidation. The Sensex fell 87.90 points to 28648.48 and the Nifty declined 29.70 points to 8693.60 while the BSE Midcap and Smallcap indices gained 0.4 percent each.

However, global markets traded higher ahead of Federal Reserve policy meeting outcome tonight. Shanghai rallied over 2 percent followed by Nikkei and Hang Seng with 0.5-0.9 percent gain while European markets were marginally in green.

Aroop Chatterjee, Barclays said at the FOMC meeting today, the brokerage house expects the Fed to end forward guidance by dropping the ‘patience’ language in favor of language that highlights the need for a gradual removal of policy accommodation.

“While such an outcome does not necessarily mean that the first rate hike will come in June, we think that the outlook for employment & activity is robust enough to warrant it. Weak housing starts data look largely to have been weather related & forward-looking indicators such as permits point to an improving outlook,” he added.

Tech Mahindra, HCL Technologies, Wockhardt, Yes Bank, Suzlon Energy and CARE are most active stocks on exchanges.

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