Sensex Clocks Fresh Record; Nifty Ends Above 10,600 For First Time

Shares of the Hyderabad-based construction company rose as much as 5.5 percent to Rs 21.20 after its signed concession agreement for Navi Mumbai Airport, GVK Power said in a stock exchange filing.

The initial concession period is 30 years from the appointment date and is extendable for a period of 10 years.

• ITC has 10 lakh shares change hands in a block.

Buyers and sellers were not immediately known
Source: Bloomberg

Jindal Steel and Power: The Delhi-based steel maker and power producer rose as much as 12.8 percent to Rs 270 after the company chairman Naveen Jindal said the company will raise Rs 1,000 crore through qualified institutional placement (QIP) route in February.

Besides, the company also plans to raise up to Rs 2,000 crore by listing its Oman business on foreign exchange.

Goa Carbon: Shares of the Panaji-based calcilined pet coke maker were locked in 5 percent upper circuit at record high of Rs 1,061 after it reported strong set of numbers in December quarter.

Key earnings highlights:

• Revenue up 160 percent at Rs 187 crore.
• Net profit at Rs 22.5 crore versus net loss of Rs 0.9 crore.
• EBITDA up at Rs 38.3 crore versus Rs 1.9 crore.
• Margin at 20.5 percent versus 2.6 percent.

HCC: The Mumbai-based construction company rose nearly 5 percent to Rs 44 after its joint venture with Al Fara’a received order worth Rs 484 crore for Pune Metro Rail Project.

Satin Creditcare: The Delhi-based micro-finance lender rose nearly 18 percent to Rs 511.60 after Global investment firm Kora Management LP invested Rs 80 crore in the company.

• Market has started 2018 in a great way and global markets have been extremely supportive.
• We need to be mindful of about oil and widening deficit
• Lot of opportunities available at current levels as well
• Expect better than expected numbers from infra companies
• Capital goods firms to post good numbers in December quarter
• Cement companies will also show good numbers as last three months were good for them
• Keen to see how things pan out for technology companies
• Earnings for pharma companies will be a mixed bag as there will be some negative surprises

• Sees Q4 sales volume growth at 35 percent, turnover expansion at 60 percent
• Sees EBITDA margin at 25 percent in Q4 versus 21 percent in Q3
• Plans expansion of Champa plant capacity to 3 million ton/year

Shares of the construction company rose as much as 2.73 percent in early trading to Rs 257.45.

NBCC (India) Ltd. received a contract from Ecotourism Development Corporation of Uttarakhand under the 'Green Road Project', amounting to Rs 2,000 crore approximately, according to the company's exchange filing.

The stock has been gaining for three consecutive days.

Shares of the Hyderabad-based cement maker rose as much as 5.23 percent to Rs 1,140.1.

December sales up 65 percent to 2,54,348 million tonnes from a year ago period.

The stock has risen for all trading sessions, except one, since the start of the new year.

Shares of the Mumbai-based electronic products maker rose 4.8 percent to Rs 26 ahead of insolvency proceedings which will be heard at the Mumbai NCLT.

• Indian equity benchmarks were trading o firm note near record highs led by gains in pharma, capital goods and IT shares.
• The S&P BSE Sensex rose 0.56 percent or 190 points to 34,343 and the NSE Nifty 50 Index advanced 0.53 percent or 56 points to 10,615.
• The gains were broad-based as the mid-cap and small-cap shares were also witnessing buying interest. The S&P BSE MidCap Index rose 0.8 percent and the S&P BSE SmallCap Index advanced 0.9 percent.
• From the Nifty 50 basket of shares, 38 were advancing while 12 were declining.

Top Nifty Gainers

• Tech Mahindra up 2.7 percent
• Sun Pharma up 2.6 percent
• Bharat Petroleum up 1.9 percent
• Lupin up 1.9 percent
• Larsen & Toubro up 1.5 percent

Top Nifty Losers

• Bharti Airtel down 3.7 percent
• Asian Paints down 0.6 percent
• Vedanta down 0.5 percent
• Hindalco down 0.4 percent
• HDFC Bank down 0.3 percent

Shares of the Bangalore-based real estate developer rose as much as 13.6 percent to Rs 687 after the company reported strong real estate sales in third quarter.

• Q3 sales rose 52 percent to Rs 9.3 lakh square feet versus 6.12 lakh square feet
• New sales jumped 64 percent to Rs 610.5 crore versus Rs 373 crore
• Price realisation up 8 percent at Rs 6,542 per square feet versus Rs 6,082 per square feet

Shares of the country's biggest lender rose 1 percent to Rs 309.30 after its board approved raising $2 billion via public offer or way of unsecured U.S. dollar notes.

Shares of the Delhi-based logistics company rose 7.5 percent after 1 percent equity changed hands in a block deal.

Trading volumes surged as 39.58 lakh shares changed hands on the BSE compared with an average of 5.54 lakh shares traded daily in the past two weeks.

Shares of the Delhi-based steel maker and power generation company rose as much as 12.8 percent to Rs 270 after the company chairman Naveen Jindal said the company will raise Rs 1,000 crore through qualified institutional placement (QIP) route in February.

Besides, the company also plans to raise up to Rs 2,000 crore by listing its Oman business on foreign exchange.

• Need to identify non-investment sectors
• Focus on large companies catering to global demand
• Market valuations not cheap at the moment
• Expect interest rates to move upwards, banks to benefit

Shares of the country's largest drug maker rose as much as 4.14 percent to Rs 602.75 after a report suggested that U.S. drug regulator will begin inspection of its Halol facility in Gujarat.

The US Food and Drug Administration is expected to begin inspection of Sun Pharma's manufacturing facility at Halol in the second week of February, The Economic Times newspaper reported citing sources.

Indian equity benchmarks continued the record breaking run led by gains in HDFC, Infosys and Larsen & Toubro.

The S&P BSE Sensex rose 0.54 percent or 183 points to 34,337 and the NSE Nifty 50 Index advanced 0.46 percent or 48 points to 10,607.

All sector gauges compiled by BSE barring the S&P BSE Telecom Index ware trading higher led by the S&P BSE Healthcare Index.

Investors will focus on the auction of sovereign debt quotas for foreign investors today along with the sale of state government bonds. The BSE will auction Rs 6,666 crore of government debt quota for foreign investors and the higher yields could attract investors.

Bonds would also take a cue from Friday's forecast of India's GDP in which growth is set to slow to a four-year low and pile pressure on the government to loosen fiscal strings. The 10-year bond yield fell 4 basis points on Friday to 7.29 percent.

Meanwhile, the rupee is expected to start on a higher note with the implied opening based on forwards suggesting it will trade at 63.28 per dollar, up from 63.37 on Friday. It had risen to its highest since July 2015 on Friday mainly on the back of a weaker dollar.

How Indian ADRs fared on Friday.https://t.co/ko53raxpq1 pic.twitter.com/aCcP1Mveso

— BloombergQuint (@BloombergQuint) January 8, 2018

• Nifty January futures trading at 10,573, premium of 14 points versus 22 points.
• January Series: Nifty open interest up 6 percent and Bank Nifty open interest up 8 percent.
• India VIX ended at 13.1, down 2.2 percent.
• Max open interest for January series at 11,000 call, open interest at 43.3 lakh, down 1 percent.
• Max open interest for January series at 10,400 put, open interest at 60.8 lakh, up 13 percent.

• Prakash Industries
• Unichem Laboratories

Goa Carbon Q3 (YoY)

• Revenue up 160 percent at Rs 187 crore.
• Net profit at Rs 22.5 crore versus net loss of Rs 0.9 crore.
• EBITDA up at Rs 38.3 crore versus Rs 1.9 crore.
• Margin at 20.5 percent versus 2.6 percent.

Uttam Galva Q3 (YoY)

• Revenue down 36 percent at Rs 667 crore.
• Net loss of Rs 180 crore versus net loss of Rs 257 crore.
• EBITDA at Rs -6.5 crore versus Rs 68 crore.
• Margins at -1 percent versus 6.6 percent.

Videocon Industries Q2 (YoY)

• Revenue down 69 percent at Rs 817 crore.
• Net loss at Rs 1,034 crore versus loss of Rs 404 crore.
• Margin at -40 percent versus 9 percent.

Bharat Bijlee

• Birla Sun Life Trustee A/C Equity Plan bought 30,000 shares or 0.5 percent equity at Rs 1,437.17 per share.

Gitanjali Gems

• Morgan Stanley France SAS bought 9.90 lakh shares or 0.8 percent equity at Rs 74.07 per share.
• Macquarie Finance (India) sold 11.66 lakh shares or 1 percent equity at Rs 74.3 per share.

Equitas Holdings

• Credit Access Asia NV sold 22.90 lakh shares or 0.7 percent equity at Rs 153.42 per share.

Snowman Logistics

• Norwest Venture Partners VII-A-Mauritius sold 25.50 lakh shares or 1.5 percent equity at Rs 60.91 per share.

Unitech

HDFC sold 2.25 lakh shares or 0.9 percent equity at Rs 9.89 per share.

Apollo Pipes

• White OAK India Equity Fund bought 1.50 lakh shares or 3 percent equity at Rs 685 per share.
• Meenakshi Gupta sold 1.82 lakh shares or 3.6 percent equity at Rs 685 per share.

Varun Beverages

• Marina III (Singapore) PTE sold 23.92 lakh shares or 1.3 percent equity at Rs 730.1 per share.

LKP Finance

• Promoter Mahendra Doshi bought 1.22 lakh shares or 1 percent equity at Rs 140.8 per share.
• Grovsnor Investment Fund sold 94,638 shares or 0.8 percent equity at Rs 140.8 per share.

Uttam Galva

• Eriska Investment Fund sold 8.90 lakh shares or 0.6 percent equity at Rs 21.6 per share.

• Aegis’ LPG unit allots 2.39 lakh shares to Itochu for a total consideration of Rs 239.29 crore.
• Force Motors December domestic sales at 1,900 units.
• Venus Remedies to consider details of QIP issue on Jan. 8.
• Lenders invoke SDR in Lanco Kondapalli Power. Lanco Infratech’s stake in the company to fall from 52.2 percent to 28.2 percent after debt recast.
• Reliance Communications says company not to pay NCD interest until completion of the restructuring process.
• Multi Commodity Exchange: India regulator revokes past order in MCX insider trading case
• Tata Steel’s previous quarter India sales at 3.3 million tonnes versus 2.99 million tonnes (YoY).
• Sagar Cements December sales up 65 percent (YoY) at 2,54,348 million tonnes versus 1,54,195 million tonnes.
• Sobha’ previous quarter new sales volumes at 9,33,365 square feet valued at Rs 751 crore; Average realization in the previous quarter at Rs 8,045 per square feet versus Rs 7,840 in quarter-ended September.
• Sathavahana Ispat says banks have classified the debt of the company as NPA.
• Seamec enters into a charter party with GOPL Offshore for charter hire of vessel Seamec III for $2.4 million.
• SBI files insolvency plea against Visa Steel.
• IOB extra-ordinary general meeting to be held on Jan. 30.
• NBCC received a contract worth Rs 2,000 crore from Ecotourism Development Corp of Uttarakhand, Dehradun for a green road project.
• Tata, Lodhas keen to take Jaypee Expressway: (Economic Times).
• USFDA may inspect Sun Pharma’s Halol site in February. (Economic Times).

Kotak Securities on Mahindra Logistics

• Initiated ‘Buy’ with price target of Rs 520.
• Well-placed to leverage unique asset-light model and large client base.
• Most asset-light 3PL service provider among listed logistics companies.
• Shift towards 3PL to drive growth for Mahindra.
• Non-auto sectors to accelerate double-digit growth in 3PL.
• Business scope can expand into other avenues.
• Expect the timely resolution of issue of TDS to normalize working capital.
• Expect revenue, operating income and net profit to grow at a compounded rate of 24 percent, 31 percent and 30 percent over the financial years through March 2020.
• Premium to peers’ justifiable given growth prospects.

Angel Broking on CCL Products

• Initiated ‘Buy’ with price target of Rs 360.
• CCL is largest Indian manufacturer and exporter of instant coffee with 24 percent market share.
• Hedged business model has created healthy moat.
• Ramping up of facilities to foray in newer markets.
• Strong balance sheet and healthy return ratios.
• Vietnam expansion is an excellent strategic move.
• Indian retail business to also be another booster in near term.
• Expect more than 17 percent growth trajectory over the financial years through March 2020.
• B&K Securities on eClerx Services
• Initiated ‘Outperformer’ with price target of Rs 1,780.
• Client concentration easing.
• Strong capital allocation to sustain.
• Acquisitions adding new vertical/capabilities/logos.
• Growth challenges among top 10 clients now behind.
• Expect increase in IT spends in BFSI.
• Expect revenue and earnings to grow at a compounded rate of 8.6 percent and 8 percent respectively over the financial years through March 2020. Expect EBIT margins to stabilise and average around 27 percent during the period.

SMIFS on Raymond

• Initiated ‘Accumulate’ with price target of Rs 1,161.
• Bright growth prospects in branded Apparel segment ahead.
• Positives: strategic plant set-up in Ethiopia and unlocking value in the non-core segments.
• Due to restructuring exercises company is on a high growth path.
• Shifting its focus from non-core businesses to core business.
• Branded apparel segment will give thrust to drive sales.
• Turnaround of Tools and Hardware business to progress well.
• Expect auto component business to continue profitable growth momentum.
• Expect revenue and net profit to grow at double-digit CAGR over the financial years through March 2020.
• Valuations have run up sharply and leave little upside.

CLSA on Cipla

• Maintained ‘Buy’; raised price target to Rs 750 from Rs 730.
• U.S. growth to revive in the next financial year, driven by recent four mid-sized approvals.
• U.S. launches to drive operating leverage benefit.
• Strong play on improving U.S. and growth from stable emerging markets.
• U.S. filings focused on ‘difficult-to-make’ products.
• Targeted 15 launches over the next two years to drive 15-20 percent annual growth.
• Expect earnings to grow at a compounded rate of 30 percent over the financial years through March 2020.

CLSA on Infosys

• Maintained ‘Buy’; raised price target to Rs 1,230 from Rs 1,140.
• Infosys just saw through one of its worst recent years.
• Has potential of completing strategic retooling and improve capital allocation.
• Key changes to strategy should continue in near to medium term.
• Demand environment supportive of Infosys’ business mix.
• Expect valuation gap with peers to narrow.
• Infosys is top pick for 2018 given reasonable earnings growth and rerating potential.

HSBC on Biocon

• Maintains Hold; raised price target to Rs 536 from Rs 320.
• Recent FDA approval for Ogivri validates Biocon’s biosimilar development capabilities.
• Biosimilar benefits to play out gradually; Pick-up in adoption is key.
• External factors such as competition and acceptance to determine opportunities.
• Near-term triggers: EMA outcome on trastuzumab, FDA & EMA outcome on pegfilgrastim and insulin glargine.
• Stewart & Mackertich on Raymond
• Initiated ‘Accumulate’ with price target of Rs 1,161.
• Bright growth prospects in branded Apparel segment ahead.
• Positives: strategic plant set-up in Ethiopia and unlocking value in the non-core segments.
• Due to restructuring exercises company is on a high growth path.
• Shifting its focus from non-core businesses to core business.
• Branded apparel segment will give thrust to drive sales.
• Turnaround of Tools and Hardware business to progress well.
• Expect auto component business to continue profitable growth momentum.
• Expect revenue and net profit to grow at double-digit CAGR over the financial years through March 2020.
• Valuations have run up sharply and leave little upside.

CLSA on Sobha

• Maintained ‘Buy’; raised price target to Rs 760 from Rs 606.
• Sobha’s Q3 pre-sales at an 11-quarter high.
• Demonstrates improvement in underlying industry trends and ability to tide-over regulatory changes.
• Sobha to maintain its pre-sales momentum in quarters ahead.
• Raise pre-sales estimate for the current financial year to near all-time peak levels of the financial year-ended March 2014.
• Higher pre-sales increases earnings estimates by 4 percent and 5 percent for the next two financial years respectively.

This indicator suggests that bonds are more attractive than equities.https://t.co/2DNGyaRmaw pic.twitter.com/inOh2rEvEj

— BloombergQuint (@BloombergQuint) January 8, 2018

White House doesn’t see need for faster Fed hikes due to tax cut.https://t.co/mc9N7t0RJq pic.twitter.com/1t7b9786iN

— BloombergQuint (@BloombergQuint) January 8, 2018