Sensex ticks up 100 points on positive Asian cues, short-covering

The benchmark BSE Sensex rose almost 100 points in early trade today, extending its uptrend for the second day, on sustained buying by participants amid a firming trend in Asia.

The covering-up of short positions by speculators ahead of the monthly expiry in the derivatives segment on Thursday supported the upside. The 30-share barometer, which had rallied 195.42 points in the previous session, rose further by 99.65 points, or 0.38 percent, to 26,133.78. Also, the NSE Nifty gained 17 points, or 0.21 percent, to 7,942.15.

Among other Asian markets, Hong Kong's Hang Seng firmed up 0.42 percent while Japan's Nikkei turned higher by 0.14 percent in early session today. The Shanghai Composite Index moved up 0.17 percent.

The US Dow Jones Industrial Average, however, ended 0.14 percent lower yesterday.

Rupee moves up 11 paise to 66.10 against dollar

The rupee continued to rule higher against the American currency for the eighth straight session as it rose 11 paise to 66.10 in early trade at the Inter-bank Foreign Exchange on Monday on increased selling of the US currency by exporters and banks. 

Forex dealers said that besides sustained selling of the American unit by exporters, the dollar's weakness against some currencies overseas and a higher opening of the domestic equity market supported the rupee. 

The local currency had appreciated by 12 paise to settle at 66.21 against the greenback on Wednesday. Forex market remained closed on Thursday and Friday on account of Id-e-Milad and Christmas, respectively. 

The currency had gained by 88 paise in the past seven days. Meanwhile, the benchmark BSE Sensex recovered by 100 points, or 0.39 percent, to trade at 25,938.71 in early trade. 

Stocks fail investors' faith in 2015; Gold also no good

 In a double-whammy for investors, the two major asset classes -- stocks and gold -- failed to generate positive returns in 2015 as headwinds from the global markets wiped off the positive sentiments back home.

While some mid-cap and small-cap stocks managed to hold ground, the overall market benchmark Sensex is headed for its worst performance in four years with a decline of 1,650 points or nearly 6 percent so far in 2014. With just four days of trading left, the scenario is unlikely to change much.

The blue-chip index also hit its one-year low level of 24,833.54 in September and the plunge looked even sharper after taking into account a life-time high above 30,000-mark scaled earlier in March.

Adding to the investors' woes, gold and silver prices also fell by 5.84 percent and 7.83 percent, respectively. Gold prices fell below Rs 25,000 to hit a low of Rs 24,590 -- its lowest level since 2011-- in July. "Domestic investor sentiment have been robust in 2015. It is the FPI sentiment which has taken a dent.

In the last eight months especially, given the worries on the emerging markets front FPIs have sold to the extent of Rs 28,356 crore. FPI selling pressure has kept pressure on equities," said R Sreesankar, Head - Institutional Equities, Prabhudas Lilladher Private Limited. In 2014, the stock markets had outperformed gold and silver for the third year in a row with much better returns for the investors. Market analysts said that fall in global commodity prices and sluggish demand added to the jittery investor sentiment.

The hype created in 2014, due to the massive victory to the BJP-led alliance in Lok Sabha elections, fell apart this year and the market corrected by 17 percent from its highs, SAMCO Securities' CEO Jimeet Modi said. He, however, opined that this was "just a normal correction in a bull market". "The market that went ahead of valuation in 2014 got a necessary reprieve which will now act as a stepping stone for next leg of bull market which will unfold itself in 2016 and beyond," Modi added.

On investors keeping away from stocks and all-time safe heavens like gold, Modi said, "The bull-bear cycles in commodities are of larger time frames. Typically gold has a 10-year bull market cycle, followed by equal or longer amount of time for bear market. Gold made a peak in 2013 in India and since then it has been continuously dragging down.

"Investors have had the best returns in the precious metals from 2004 to 2013, and the same kind of phenomenal cannot be expected." Historical data shows gold has given positive returns in 12 out of the last 15 years. Also, gold prices have risen by an average of 20 percent over the last 10 years, against an appreciation of about 18 percent for equities. Gold prices have come down to Rs 25,610 per ten grams from Rs 27,200 per ten gram and silver from Rs Rs 37,000 per kg to Rs 34,100 per kg.

Biocon stocks gain over 5%, hit 52-week high in intra-day trade

 Shares of biotechnology major Biocon on Thursday surged over 5 percent after the company launched advanced novel therapy for the treatment of Hepatitis C at low cost.

The stock gained 5.36 percent to settle at Rs 507.55 on BSE. During the day, it surged 6.52 percent to Rs 513.20 - its 52-week high.

At NSE, shares of the company rose by 5.31 percent to close at Rs 508.05.

CIMIVIR-L, a fixed dose combination of Ledipasvir 90 mg and Sofosbuvir 400 mg, will be made available to patients in India at a fraction of the global cost of the innovator brand, Biocon Ltd said in a statement.

The cost of a 12-week course of this combination therapy in the US is USD 94,500 (about Rs 63 lakh).

Biocon, President-Marketing, Ravi Limaye said the introduction of CIMIVIR-LTM will strengthen the company's current portfolio of virology products.

Reliance Infrastructure stock surges nearly 8% on buzz of cement biz sale

Stocks of Reliance Infrastructure gained nearly 8 percent on Thursday following reports that the company is in the advanced stage of negotiations to sell its cement business.

The deal is expected to be announced this week as the Anil Ambani-led firm tries to cut debt.      

The stock climbed 7.69 percent to settle at Rs 493.05 on BSE. During the day, it rose by 8.33 percent to Rs 496.     

On NSE, it surged 7.72 percent to close at Rs 493.20. The company added Rs 926.72 crore to Rs 12,966.72 crore in market valuation.      

The firm is in talks with buyers -- both domestic and foreign -- to sell its cement and road business, in which it has invested over Rs 15,000 crore that will be utilised to cut debt and also to fund its foray into defence manufacturing.      

The company is in advanced stage of negotiations with 7 prospective buyers out of the initial 15 parties, and the deal can be finalised anytime now, a source said, adding that it can be announced as soon as Ambani returns from Russia and could be this week also. The buyers include Blackstone, Carlyle and KKR.      

"The cement deal is in the range of Rs 5,000-6,000 crore and the company expects to get close to 50 percent of the amount after paring the debt," a person in know of the development said.      

Reliance Infrastructure, with a net worth of over USD 4 billion, is trying to sell its non-core assets, including the road business to pare debt and fund expansion in the defence manufacturing sector, which it feels will be the primary driver for future growth.

Rupee moves up for 5th straight session, up 9 paise to 66.31

Rising for the fifth straight session, the rupee gained 9 paise at 66.31 against the dollar in early trade today at the Inter-bank Foreign Exchange on increased selling of the US currency by exporters.

Forex dealers said sustained selling of the American unit by exporters and the dollar's weakness against some currencies overseas supported the rupee, but a lower opening in domestic equity market restricted the gains.

The rupee had appreciated by a modest two paise to settle at 66.40 against the greenback on Friday.

It had gained 69 paise in the past four trading sessions.

Meanwhile, the benchmark BSE Sensex fell 105.68 points, or 0.41 per cent, to trade at 25,413.54 in early trade.

Sun Pharma shares slump 7.5% on warning letter from USFDA.

Shares of Sun Pharmaceutical slumped 7.5 percent Monday as the company has received a warning letter from the USFDA over violation of manufacturing norms at its facility at Halol in Gujarat.

The stock dipped 7.39 percent to Rs 732 on BSE.

On NSE, it plunged 7.48 percent to Rs 731.

The stock was the top loser among the blue-chip Sensex and Nifty scrips.

The warning letter follows inspection of the facility in September 2014 by US Food and Drug Administration (USFDA) inspectors.

"Post the September 2014 inspection, the USFDA has withheld future product approvals from the Halol facility.

This situation may continue until all issues are resolved. "Sun Pharma expects to request a re-inspection by USFDA upon completion of its remediation commitments," the company had said in a statement on Saturday.

"Sun Pharma will respond to this warning letter with a detailed plan within the stipulated time frame," it said.

Weak Global Markets Take a Toll.

The Indian markets lost momentum as the day progressed as selling pressure intensified towards the end amid weak international markets. While the BSE Sensex today closed lower by 285 points, the NSE-Nifty closed lower by 82 points. Meanwhile, while the BSE Mid Cap index closed higher by 0.1%, the BSE Small Cap index closed the day lower by 0.2%. Losses were seen across the board with those from information technology and banking space leading the losses.

Asian markets finished broadly lower today with shares in Japan leading the region. The Nikkei 225 was down 1.90%, while Hong Kong's Hang Seng is off 0.53% and China's Shanghai Composite is lower by 0.03%. European markets are lower today with shares in Germany off the most. The DAX is down 0.69%, while France's CAC 40 is off 0.41% and London's FTSE 100 is lower by 0.07%. The rupee was trading at 66.42 against the US$ in the afternoon session.

According to a leading financial daily, Hindustan Unilever (HUL) has signed an agreement with Mosons Group to acquire its flagship brand 'Indulekha'. The deal envisages the acquisition of the trademarks 'Indulekha' and 'Vayodha', intellectual property, design and knowhow, for a consideration of Rs 3.3 billion, payable upon closing of the transaction and a deferred consideration of 10% on the domestic turnover of the brands each year, payable annually for a 5 year period commencing FY18.

The proposed acquisition is in line with the company's strategic intent to strengthen (Subcription Required) its leadership position in Personal Care by providing an impetus to its play in the evolving Premium Naturals segment. The company recently reported a revenue growth of 4% YoY during the quarter, while profits declined marginally by 2% YoY (Subscription Required).

The script of HUL finished the day down by 1.2% on the BSE. The share price of HUL has risen more than 9% in the last month (Subscription Required).

Coal India has reportedly tied up with Indian Council of Forest Research and Education (ICFRE) as well as National Energy Research Institute (NERI) to find ways and means of producing coal through measures that would be beyond the mandatory environment norms. Further, the company is committed to set up at least 1,000 MW of solar power generation plants in various states to compensate for greenhouse effects.

The plan comes at a time when the company plans to achieve a production target of a billion tonnes by 2020. With a modest production of 79 million tonnes at the year of its inception, Coal India is the single largest coal producer in the world.

Coal India remains committed to strong volume growth (Subscription Required). In FY16, Coal India has envisaged a coal production target of 550 MT with capex of Rs 59.9 billion. To improve utilizing underground mines more efficiently, Coal India has invited bids from consultants for preparing a study of range of issues, including raising output.

Mid & Small Caps Outperform.

Indian benchmark indices surged more than 1% in intraday trading today and finished for a fourth consecutive session of gain after the US Federal Reserve raised interest rates for the first time in nearly a decade. While the BSE-Sensextoday closed higher by 309 points, the NSE-Nifty closed higher by 93 points. Mid and small caps too finished on a positive note. While the S&P BSE Midcap index closed higher by 1.6%, the S&P BSE Smallcap index closed the day higher by 1.7%. All the sectoral indices closed in the green today. Gains were largely seen in metal and power stocks.

Asian stock markets finished broadly higher today with shares in China leading the region. The Shanghai Composite is up 1.81% while Japan's Nikkei 225 is up 1.59% and Hong Kong's Hang Seng is up 0.79%. European markets are sharply higher today with shares in Germany leading the region. The DAX is up 2.73% while France's CAC 40 is up 2.66% and London's FTSE 100 is up 1.38%. The rupee was trading at 66.65 against the US$ in the afternoon session.

According to leading financial daily, Tata Power has completed the uprating of existing transmission line no. 4 between MSETCL Kalwa receiving station and Tata Power Salsette receiving Ssation (8 km route length) by replacing existing conductor with high capacity conductor (capacity increased from 900 amps to 1800 amps). The uprated 220kV line will relieve critical loading of the Kalwa-Salsette lines and will enhance firm transmission capacity for bringing power from outside to Mumbai city.

Tata Power is India's largest integrated power company with a growing international presence. The company together with its subsidiaries and jointly controlled entities has an installed gross generation capacity of 8,669 MW and a presence in all the segments of the power sector.

The condition of State Electricity Boards (SEBs) in India is very critical and poor as they face issues like failure to pass on tariff hikes, power theft, infrastructure issues, over capacity and others. As a result, the SEBs are caught in a vicious circle of high debt and operational losses. Hence to bring a turnaround in these companies, the Ministry of Power announced a new scheme - Ujwal DISCOM Assurance Yojna or UDAY. The scheme will support financial turnaround and revival of power distribution companies.

According to a leading economic daily, Sun Pharma announced that one of its wholly-owned subsidiaries in US has entered into an agreement with Nostrum Laboratories Inc for the divestment of the Bryan (Ohio) unit in the United States. The move is part of the company's manufacturing consolidation in the US. As a part of the agreement, the Sun Pharma subsidiary has divested this unit as a going concern along with the employees and related products to Nostrum. As per the reports, the financial impact of this development on Sun Pharma is negligible.

Reportedly, Sun Pharma Managing Director Dilip Shanghvi had announced earlier in August that the company would look at rationalizing manufacturing footprint, post its US$4 billion acquisition of Ranbaxy completed in March this year.

Sun Pharma is now the fifth-largest specialty generic pharmaceutical company in the world. Healthcare professionals and patients in more 150 countries around the world use its medicines. With global revenues of over US$4.5 billion, Sun Pharma has become India's largest and most valuable pharma company. Apart from organic growth, the company has also made nineteen acquisitions since the 1990s. In our recent edition of The 5 Minute Wrap Up Premium, we look at the aggregate numbers of the pharma industry as compared to Sun Pharma.

Rupee withstands Fed rate hike; opens 13 paise up at 66.60 vs dollar

The rupee appreciated by 13 paise at 66.60 against the US dollar in early trade on Thursday on increased selling of the American currency by exporters even as the US Federal Reserve raised interest rates for the first time in nearly a decade.

Forex dealers said a higher opening in the domestic equity markets also supported the rupee but the dollar's rise against other currencies overseas after the American central bank hiked interest rates by 0.25 percent, capped the gains.

The rupee had jumped by 19 paise to close at one-week high of 66.73 against the US dollar on Wednesday amid rising equities.

The benchmark BSE Sensex shot up by 164.95 points, or 0.64 percent, to 25,659.32 in early trade.

Know how US Fed rate hike will impact Indian stocks, gold and rupee.

New Delhi: The US Federal Reserve is widely expected to announce a hike in interest rates at the end of its two-day policy meeting on Wednesday.

It would be the first US rate hike in nearly a decade, signalling the beginning of an end to an expansionary monetary policy that has supplied a tidal wave of liquidity to risk asset markets globally.

Let's have a look at how the US Fed rate hike will impact Indian stocks, gold and rupee.

FED'S IMPACT ON RUPEE

Extreme volatility in domestic equities as well as expectations that the Federal Reserve is on track to raise interest rates for the first time since 2006 will impact the rupee sentiment.

FED'S IMPACT ON GOLD

Investors have been cutting gold positions in anticipation of a first interest rate increase while the yellow metal has fallen about 10 percent so far this year. Higher rates could dent demand for the non-interest paying asset, while also boosting the dollar.

Final Hour Surge.

With buying activity picking up in the final hour of today's session, the BSE-Sensex today closed higher by 170 points, while the NSE-Nifty closed higher by 43 points. Mid caps and small caps too finished on a buoyant note. While theBSE Mid Cap index closed higher by 0.6 %, the BSE Small Cap index closed the day with gains of 0.7%. Barringinformation technology, major sectoral indices ended the day on a cheerful note. Gains were largely seen inautomobile and oil & gas stocks.

Barring Japan, major Asian stock markets ended in green. European markets are broadly higher today with shares in France leading the region. The CAC 40 is up 2.3% while Germany's DAX is up 2.2%. The rupee was trading weak at 67.04 against the US$ in the afternoon session.

As per an article in leading financial daily, Sun Pharmaceutical sold one of its factories in Ohio, US to Nostrum Laboratories. The terms and conditions of the deal were not disclosed by the company. However, the transaction will have negligible impact on the financials of the company. Sun Pharma's subsidiary has divested this unit as a going concern along with the employees and related products to Nostrum. The company has divested this unit as a part of its ongoing process to consolidate its manufacturing business in the USA.

The stock of Sun Pharma ended higher by 0.6%

As per an article in leading financial daily, Tata Motor's will hike prices of entire passenger vehicle range by up to Rs 20,000 from January, 2016. The management stated that various macro-economic factors have led the company to do so. The maximum increase in price is capped at Rs 20,000. A weaker rupee has led to automobile manufacturers to increase their prices. A falling rupee has led to significant increase in the import costs. Various car manufacturers such as Maruti Suzuki, Hyundai, Honda Motors have announced their plans of hiking prices from next month. Tata Motors ended higher by 2% today.

Rupee breaches 67-mark, falls 18 paise against dollar.

The rupee again breached the 67-mark by depreciating 18 paise to 67.06 against the dollar in early trade on Monday at the Interbank Foreign Exchange, mainly on strong demand for the American unit from importers and some banks amid a lower opening of the domestic equity market.

5 key reasons why Sensex dips below 25K-mark today

Extending their last week downslide, the benchmark BSE Sensex dips below the psychological 25,000-mark and the NSE Nifty cracked the 7,600 level in early trade Monday. 

Markets have witnessed just a day of gains straddled by eight days of oversold position. Last week both the benchmark indices -- BSE Sensex and NSE Nifty -- ended with losses of over 2 percent due to intense selling pressure.

Here are the 6 key reasons why Sensex is witnessing sustained downslide: 

1. Lingering uncertainty over the passage of GST Bill in the ongoing winter session of Parliament.

2. Sustained selling by participants amid a weak trend in other global markets ahead of the US Federal Reserve's hotly-anticipated meeting this week which probably will hike interest rates.

3. Global oil prices continued to retreat to multi-year lows, dampened the trading sentiments further.

4. Continuous fall in rupee also added to selling pressure: The rupee again fell past the 67-mark against the dollar in early trade on Monday at the Interbank Foreign Exchange, mainly on strong demand for the American unit from importers and some banks. 

5. China's economic crisis

Markets Close the Week 2% Lower.

Indian equity markets began the day's proceedings on a cautious note but selling activity intensified as the day progressed on sustained foreign fund outflows and weak international markets. While the BSE-Sensex today closed lower by 208 points, the NSE-Nifty closed lower by 73 points. Midcaps and Small caps too finished on a negative note. While the BSE Mid Cap index closed lower by 1.2%, the BSE Small Cap index closed the day lower by 0.8%. Realty andbanking stocks witnessed maximum selling pressure.

Asian stock markets finished mixed as of the most recent closing prices. The Nikkei 225 gained 0.97%, while the Hang Seng led the Shanghai Composite lower. They fell 1.11% and 0.61% respectively. European markets are trading lower today with shares in Germany off the most. The DAX is down 0.71%, while France's CAC 40 is off 0.67% and London's FTSE 100 is lower by 0.49%. The rupee was trading at 66.79 against the US$ in the afternoon session.

Engineering stocks finished on a mixed note with Bharat Bijlee and Manugraph India leading the losses. Siemens has reportedly won an order worth approximately Rs 1.02 billion to supply a 400 kV Gas Insulated Switchgear (GIS) Substation to West Bengal State Electricity Transmission Company (WBSETCL). The scope of the order includes engineering, supply, installation and commissioning of the GIS Substation. The 400 kV GIS solution is being manufactured at the company's manufacturing plant at Aurangabad.

As the State Transmission Utility provider, Transmission Licensee and State Load Dispatch Centre, WBSETCL is responsible for transmitting electricity from generating sources to load centers through a transmission network spread across West Bengal. Siemens is one of the leading producers of energy-efficient, resource-saving technologies; combined cycle turbines for power generation; and power transmission solutions.

Siemens recently announced its fourth quarter results of financial year 2015 (September ending fiscal). The segment wise performance of the company was mixed. While the healthcare, mobility and energy management segments delivered good results, the power and gas and building technologies segments were under pressure in 4QFY15. The metals technologies business was unable to generate revenues due to the division being sold of effective December 2014. Here is our detailed analysis of the results (Subscription Required).

According to a leading financial daily, Tata Motors' subsidiary Jaguar Land Rover has entered into an agreement with the Government of the Slovak Republic to build a new plant in the city of Nitra, western Slovakia. The company will be the first British carmaker to open a manufacturing facility in Slovakia.

As part of Jaguar Land Rover's commitment to deliver more lightweight vehicles, the plant will manufacture a range of all-new aluminum Jaguar Land Rover vehicles. Reportedly, the first cars will come off the production line in late 2018. The factory will have an initial capacity of 150,000 vehicles and construction will commence in 2016.

Jaguar Land Rover has made significant progress in building its international manufacturing presence over the last year. It opened a new joint venture in China and commenced construction of its local manufacturing plant in Brazil at the end of 2014. The creation of new international plants allows Jaguar Land Rover to offer its customers even more exciting new models, protect against currency fluctuations and create a globally competitive business.

Although FY15 has seen the automobile industry limping back, the recovery so far has been tepid and slow. In our recent edition of 'The 5 Minute WrapUp Premium', we have discussed the performance of auto segments and what is expected of the industry in the near future .

Rupee hits more than two-year low; RBI intervenes.

 The rupee hit a more than two-year low against the greenback on Friday as domestic shares fell after an underwhelming stimulus package from the European Central Bank, forcing the Reserve Bank of India to sell dollars via state-run banks.

The rupee tumbled to 67.01 to the dollar, the lowest since Sept. 4, 2013, from its previous close of 66.6525/66.6625.

Traders said the RBI likely stepped in to support the rupee at around 66.98 per dollar, sparking a rebound. The local currency was at 66.8600/8650 per dollar as of 12:11 p.m.

The disappointment over the ECB comes amid growing worries of the impact on India and other emerging markets as the U.S. Federal Reserve gears up to raise interest rates for the first time in around a decade this month.

Foreign investors sold a net $1.7 billion in Indian shares and debt in November, the highest sales since August.

"Unless RBI intervenes in a big way, rupee will remain under pressure," said Ashtosh Raina, head of FX trading at HDFC Bank in Mumbai.

Some traders anticipate the rupee to fall to 67.50 to the dollar closer to the Fed policy meeting on Dec. 15.

The rupee fell 2.1 percent against the dollar last month, its biggest drop since August, and is down 0.3 percent so far in December.

The fall in the local currency on Friday tracked a retreat in domestic shares after the ECB disappointed markets with a smaller-than-expected stimulus measure. India`s broader NSE index fell 0.9 percent.

The limited easing measures come as Fed Chair Janet Yellen, speaking before Congress` Joint Economic Committee on Thursday, said the United States may be "close to the point at which we should be raising" rates.

Markets will eye the U.S. jobs data due later in the day for further cues on Fed rate move, although a rate hike is broadly being priced into the currency, traders said.