Sensex, Nifty Snap 2-Day Losing Streak; Reliance Top Gainer

Shares of the Mumbai-based firm pared some of its early gains after the drugmaker said the U.S. FDA issued two observations on the company’s formulation manufacturing facility at Ghaziabad after February 24 inspections.

However, the company said in its filings that the observations received from the drug regulator are “correctable” and “do not impact business continuity”.

Stock rose as much as 6 percent to Rs 272, the most since February 17, with volumes at 6.9 times its 30-day average. The company said it will file a response in 15-day time period.

Shares of software makers such as Infosys, Tata Consultancy Services and Wipro fell between 0.5 percent and 1.2 percent after industry body Nasscom said that the U.S. decision to temporarily suspend the expedited premium processing of H-1B visas will affect Indian tech firms.

Nasscom, however, feels that the move will not be a “significant impediment” for the over $110 billion outsourcing industry, it said on Sunday.

The U.S. has announced that from April 3, it would temporarily suspend the 'premium processing' of H-1B visas that allowed some companies to jump the queue, as part of overall efforts to clear the backlog.

Tata Consultancy Services fell as much as 1.4 percent, top loser on the benchmark Sensex index.

Shares of Dredging Corp. of India rose as much as 16.7 percent, the highest since June 2014 with volumes more than 4.4 times its three-month average.

Indian government is looking to sell a 51 percent stake in the company, Economic Times newspaper reported on Monday citing two unidentified officials.

Government held 73.6 percent stake in Dredging Corp as of Sept. 30, as per Bloomberg data.

#BQSpotted by @OnlyNickey | Prime Focus snaps its 3-day losing streak. pic.twitter.com/jqZRtVVsFf

— BloombergQuint (@BloombergQuint) March 6, 2017

Also Read: Ambani's Reliance Stake Revamp Said to Cut Future Tax Liability

The rupee strengthened by 7 paise to 66.74 against the dollar in opening trade today.

Forex dealers said that besides selling of the American currency by exporters and banks, weakness in the dollar against other currencies overseas propped the rupee. Further, a higher opening in the domestic equity market influenced the rupee uptrend, they added.

On Friday, the rupee had lost 11 paise to 66.81 against the U.S. dollar on fresh demand for the American greenback from banks and importers.

PTI

Movers & Shakers: Bharti Airtel, Shree Cement, IT Stocks And More

• ARSS Infrastructure Projects: Joint venture bagged railway order valued at Rs 141 crore
• Bharti Airtel: Sign pact with Millicom to combine operations in Ghana
• Castex Technologies: Clarifies founder Amtek Auto to invest in company
• Cipla: To sell animal health unit in South Africa for $28.8 million
• Coal India: Unit Central Coalfields approves up to Rs 1,000 crore buyback plan
• Dr Reddy’s: Completes 100 percent acquisition of NBFC Imperial Credit for Rs 2.05 crore
• Gokul Agro: SEBI rejects Gokul Agro founders’ open offer exemption request
• ICICI Prudential: Says sold 3 million shares of Kalpataru Power on March 2
• IDFC: Unit to buy remaining stake in IDFC AMC, IDFC AMC Trustee from Natixis for Rs 244 crore
• Reliance Power: Unit sells holding in RPL Aditya Power
• Shoppers Stop: Partners with Riversand for master data management
• Shree Cement: Wins coal linkage of 60,000 tonne/year at Rs 970/tonne for Raipur plant in Chhattisgarh
• State Bank of Mysore: Says shareholders to get 22 SBI shares for every 10 held; sets March 17 a record date
• India allows Steel Authority to sell 3 special units (PTI)
• Eros International has $126.1m debt due within a year
• GMR Hyderabad International Airport plans $250 million-$300 million bond sale (Mint)
• Axis Bank raised to add at CIMB, price target Rs 600
• Siemens raised to reduce versus sell at IIFL

Investors will be cautious this week as the U.S. Fed meets next week to decide on interest rates. The odds of an increase which stood at 50 percent at the start of last week, jumped to 94 percent by Friday. A favourable jobs report on March 10 may finally prompt the Fed Chair Janet Yellen to hike rates.

Last week, the rupee fell for a second consecutive week. In today's trade, almost all Asian peers rose against the dollar, with the Taiwanese dollar gaining the most, followed by the Japanese yen.

In Bonds:

India’s most-traded bonds have become virtually unavailable in the repurchase market as banks looking to maximize treasury gains before closing books for the year ending March 31 refuse to part with the securities.

Now what this means is that participants running overnight naked short positions in sovereign debt using repurchase agreements are unable to borrow the bonds to finance these positions. They are instead turning to the secondary market for the securities, causing yields on two notes maturing in 2026 to slide.

• North Korea fires multiple missiles which fall into Japan’s Exclusive Economic Zone
• India’s NASSCOM sees U.S. H-1b visa move causing process delays
• GST Council approves two bills, to meet again on March 16
• India says no misuse of Aadhaar data led to identity theft, financial loss
• RBI converts Rs 3,430 crore of 2017-18 bond to longer maturity note
• SBI seeks top court direction to Mallya to deposit $40 million
• Forex reserves rise $63.7 million to $362.8 billion in week to February 24: RBI
• Coal India, Emami and TVS Motor Co. to consider mid-year dividend
• Buy local China, Indian bonds before they mainstream: HSBC Asset
• Global funds buy Rs 1,530 crore of local stocks; domestic funds sell Rs 737 crore rupees on March 3: Provisional data
• China sets 2017 growth target of “around 6.5 percent, or higher if possible”
• U.S. suspends expedited processing of high-tech visas (Reuters)
• Tata Sons plans to buy Rs 7,000 crore of shares in listed units (Business Standard)
• Tata said to mull sale of stake in mutual fund business (Mint)
• India’s Flipkart to hire 20%-30% more people in 2017 (PTI)
• BASF Plans to Invest 3b Euros in Asia-Pacific 2017-2021 (Business Standard)
• Kingfisher Air Lenders to auction two company assets March 6 (PTI)
• Ageas keen to increase holding in IDBI Federal Life to 49 percent (PTI)

Good Morning!

The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, was little changed at 8,929.

Stocks in Japan and South Korea fell, the yen strengthened and gold was steady after a North Korea missile launch, while investors also weighed messages from China’s National People’s Congress and Federal Reserve Chair Janet Yellen.

U.S. stock futures also dipped as Japan Prime Minister Shinzo Abe said the government will hold a National Security Council meeting today after North Korea fired four ballistic missiles. The move comes as South Korea and the U.S. undertake annual military drills that Pyongyang has called a prelude to an invasion.

Over the weekend, Chinese Premier Li Keqiang set a 2017 growth target of “around 6.5 percent, or higher if possible” in a report to the annual National People’s Congress gathering in Beijing that reiterated the pursuit of neutral monetary policy this year.

Economists surveyed by Bloomberg project 6.5 percent expansion this year.

Meanwhile, Yellen joined a chorus of U.S. policy makers who have suggested growth remains on track to warrant tighter monetary policy as early as next week’s Fed meeting. The odds for a rate hike at the March 14-15 meeting rose to 94 percent, according to futures rates tracked by Bloomberg.

Oil traded above $53 a barrel after Libya halted exports from two of its biggest oil ports and reduced production from some fields after clashes.