Investors are hoping a strong showing in the key electorate state of Uttar Pradesh will help the ruling BJP-led NDA government boost its position in the parliament’s upper house, where some of its reform efforts have stalled. It is also expected to bolster Modi’s prospects of clinching a second term in the 2019 general elections.
According to G Chokkalingam, founder and managing director, Equinomics Research & Advisory Private Ltd. the event is unlikely to have any major long lasting impact on the market. “While the UP election results may have a short-term knee jerk reaction, the Fed interest rate decision has been more or less factored in,” he told BloombergQuint over the phone.
Global stocks this month climbed to a record high amid bets the U.S. economy is strong enough to withstand a rate hike this month that the Federal Reserve Chair Janet Yellen has all but assured investors will happen.
The odds for a rate hike next week are already up to 96 percent, according to futures rates tracked by Bloomberg.
For Indian equities, Chokkalingam said, investors should watch the macroeconomic picture rather than any external cues. He said while the stocks have gone up to near record highs, valuation-wise they look stretched.
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Shares of the drug maker gained after it finalised a pact with Supernus Pharmaceuticals to settle patent litigation regarding capsules used for treatment of seizures.
Under the terms of the pact, Supernus grants a license to market Zydus' generic version of Trokendi XR (topiramate) extended-release capsules beginning on January 1, 2023, or earlier, under certain circumstances, it added.
Both companies, however, did not disclose the other terms of the settlement. The drug is used for treatment of certain types of seizures.
Pharma major Lupin today said it has launched generic paxil drug used for treatment of major depressive order in the U.S. market.
The drug is used for treatment of major depressive, panic, social anxiety and premenstrual dysphoric disorder, Lupin said in its exchange filings added.
The stock was trading 1.2 percent lower at Rs 1,460 on BSE.
Shares of Adani Power Ltd. rose for the third day in a row after three founder firms converted warrents into 41 million equity shares. The stock surged as much as 7.1 percent to Rs 41.30, the highest level since May 8, 2015. Volumes for the stock were at 1.9 times its 3-month average.
The stock is currently the top gainer on the S&P BSE 200 index.
Music Broadcast IPO fully subscribed on second day of offer. pic.twitter.com/8bUCkGr6hv
— BloombergQuint (@BloombergQuint) March 7, 2017
The Anil Ambani firm sold its nearly 1 percent Paytm for Rs 275 crore to China's Alibaba Group, according to a report by PTI. The financial services arm of Reliance Group had invested Rs 10 crore for this stake in Paytm.
The deal gives a valuation of over $4 billion to Paytm, which is already backed by Alibaba group as a strategic investor, PTI said quoting unnamed sources.
Shares of Reliance Capital gained 0.4 percent to Rs 545 apiece. The stock has gained over 5 percent in little over a week.
This number looks somewhat surprising, as real activity data released since demonetisation pointed to weak consumption and services activity because these transactions are cash-intensive. By contrast, official data suggest that private consumption was strong in the fourth quarter of 2016 (though services output growth moderated quite substantially).”Fitch Note
Shares of the home-grown car maker rose as much as 1 percent after its U.K subsidiary Jaguar Land Rover reported a 9 percent increase in February total sales compared to same period last year.
Jaguar sales jumped 81.1 percent YoY to 12,203 units while Land Rover sales dropped 6.4 percent YoY to 28,775 units.
- Sales rose 40.4 percent YoY in China
- Sales rose 16.2 percent YoY in North America
- Sales rose 14.2 percent YoY in U.K.
- Sales dropped 1.6 percent YoY in Europe
Shares in the non-banking finance company fell as much as 6 percent to Rs 753 after the company said about Rs 383 crore or 4.5 percent of its February gross loan portfolio was overdue over eight weeks’ period.
This compared to 0.2 percent reported in the third quarter, the company said in an investor call.
The rupee appreciated by another 5 paise to 66.66 against the dollar in early trade today amid sustained selling of the American currency by exporters and banks.
Forex dealers said that apart from weakness in the dollar against other currencies overseas, robust foreign fund inflows and a higher opening in the domestic equity market supported the rupee.
Yesterday, the rupee had gained 10 paise against the US dollar to end at 66.71 on fresh selling of the American currency by corporates and banks.
PTI
Indian rupee started the week on a positive note, rising against the dollar. Asian currencies are today sending mixed signals. While the South Korean Won and Philippine Peso gained against the greenback, the Malaysian ringgit and Chinese yuan were trading down.
In Bonds
Yields on India’s most-traded 10-year bonds climbed yesterday on speculation a shortage of the securities in the repurchase market has eased, eliminating the need for investors to buy them from the secondary market.
Higher yields are making the notes attractive for foreign buyers, who continue to lap up Indian bonds. They were a net buyer for a sixth day on Monday in the last seven sessions.
Global investors should consider buying local-currency bonds in China and India to boost risk-adjusted returns before investing in both markets becomes more common, that's according to HSBC's Geoff Lunt.
For a complete list of stocks to watch, click HERE
- RBI’s Acharya expects demonetisation impact to be temporary
- Coal India approves interim dividend of Rs 18.75 a share
- India announcing new oil bidding round: Pradhan
- India February steel imports slide 46 percent to 491,000 tonne
- India 2016-17 sugar output may total 20.3 million tonne: NCS Sugars
- Reliance MF seeks nod for second further fund offer for CPSE ETF
- Cadila Health, Hero MotoCorp & NMDC to consider mid-year dividend
- Fitch says global growth shows resilience
- India notifies trademark rules 2017
- Global funds buy Rs 564 crore of local stocks; domestic funds sell Rs 482 crore yesterday: Provisional data
Good Morning!
The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, was little changed at 8,977.
Asian stocks were trading mixed in early trade, following weak overnight cues from Wall Street, as investors weighed growth prospects for China amidst rising expectations of a U.S. interest rate hike next week.
JPMorgan Chase & company warned that hawkish Fed rhetoric has increases the likelihood for a short-term pullback after stocks reached records last week. The dollar rose for a second session, while the euro erased gains after chances of an anti-euro candidate improved in the French election.
Global stocks this month climbed to a record high amid bets the U.S. economy is strong enough to withstand a rate hike this month that the Federal Reserve Chair Janet Yellen has all but assured investors will happen.
The odds for a rate hike next week are already up to 96 percent, according to futures rates tracked by Bloomberg.
Oil traded near $53 a barrel after Iraq said it was ready to cut production in the second half of the year if Organisation of Petroleum Exporting Countries decides to limit output. Gold was steady at $1,226 an ounce after it dropped 0.8 percent in the previous session.
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