Sensex, Nifty End Near 5-Month High On GDP Cheer
The market is discounting all negative news fairly quickly and is currently ignoring all the potholes on their way higher, said Deepak Jasani, head retail research, HDFC Securities. “We have a slew of events lined up ahead – UP election outcome, Fed policy meet, EU summit, Brexit vote in UK parliament etc – which could take the market either way,” Jasani told BloombergQuint.
In this backdrop, he advised investors to take some profit off the table between now and March 7-8. Overall, he remains positive on financials, commodity-driven companies and small/midcap companies undergoing restructuring.
Brokerage house Morgan Stanley has raised its target for India’s Sensex by 10 percent to 33,000 on expectation of “heightened” mergers and acquisition activity, which in turn it says, may raise valuations and margins.
Tata Global Beverages Snaps 4-Day Losing Streak
- The stock is trading around 5 percent higher for the day
- It had fallen close to 2.5 percent in the last four sessions
- Volumes currently stand at 1.5 times its 20-day average on the NSE
- The company, which cultivates and sells tea and coffee, has a market-cap of Rs 9,132.4 crore
Shares of the insurance software services provider rose as much as 13.1 percent, the most since July 25, 2016 on heavy volumes.
Majesco USA, the insurance arm and a subsidiary of Majesco Ltd., launched two new solutions, Majesco Enterprise Data Model and Majesco Enterprise Data Warehouse, the company said in a release.
The stock volumes went up nearly 24 times its 30-day average, according to Bloomberg data. It is down 3.3 percent year-to-date compared to 8.8 percent for the Sensex.
Shares of manganese ore miner fell as much as 4.1 percent to Rs 340.55, lowest since December 27, 2016.
The company announced price cuts for different grades of manganese ore for the fourth quarter, its second consecutive cut after a series of price hikes.
The stock has gained about 87 percent in the last 12 months as of Tuesday's close.
Shares of Gayatri Projects rose as much as 2.9 percent to Rs 143 after it secured a Rs 1,363 crore irrigation contract.
The project entails the execution of a lift irrigation system to provide irrigation for an area of 27,462 hectares, the company said in a regulatory filing.
The contract also involves operations and maintenance of the system for 5 years after commissioning.
Hinduja Group flagship Ashok Leyland reported a 4.93 percent increase in total sales at 14,067 units in February. The company had sold 13,406 units in the same month last year.
Sales of heavy and medium commercial vehicles grew by 4.88 percent to 11,329 units last month as against 10,801 units in the year-ago period, the company said in a statement.
Light commercial vehicle sales rose by 5.1 per cent to 2,738 units compared to 2,605 in February last year, it added.
2 out of the 5 pharmaceutical companies on the Nifty missed analyst estimates in Q3FY17.https://t.co/fcYb95Plqq pic.twitter.com/udCFvgTQQY
— BloombergQuint (@BloombergQuint) March 1, 2017
Shares of the two-wheeler maker swung between gains and losses after it reported a 19 percent jump in sales for the month of February.
The company sold 58,439 units in the month, compared to 49,156 units in same period last year. It exported 1702 units in February versus 1589 units year-on-year.
Maruti Suzuki sales jump 11% in February, driven by utility vehicleshttps://t.co/8p9BflON0W pic.twitter.com/DH6FO646Ex
— BloombergQuint (@BloombergQuint) March 1, 2017
The Nikkei India Manufacturing Purchasing Managers' Index, or PMI, rose to 50.7 in February from 50.4 in January. This is the second month in succession in which the health of the sector improved after the demonetisation-related downturn at the end of 2016.
A reading above 50 indicates economic expansion, while one below 50 points toward contraction.
"Indian manufacturers benefited from recovering demand and raised production volumes in response to another expansion in inflows of new work," Pollyanna De Lima, economist at IHS Markit, said.
"However, with growth rates well below-par, the sector still has many areas to develop before it can fire on all cylinders. Businesses don't yet seem convinced as to the sustainability of the rebound as highlighted by cuts to payroll numbers and destocking initiatives."
The rupee depreciated by 13 paise to 66.82 against the U.S. dollar in early trade..
Dealers attributed the rupee's fall to increased demand for the U.S. currency and the dollar's strength against some currencies overseas but a higher opening of the domestic equity market on better-than-expected GDP growth in October-December quarter, capped the losses.
The rupee had gained 2 paise to close at 66.69 in an extremely thin and lethargic trade yesterday owing to stray dollar selling form banks and exporters.
Movers & Shakers: DLF, NHPC, Manappuram Finance And More
DGCA to examine 21 A320neo planes in the next 2 weeks.https://t.co/40OR1tyZlf
— BloombergQuint (@BloombergQuint) March 1, 2017
Good Morning!
The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, was little changed at 8,920.
Asian stocks climbed, while dollar pared gains with U.S. stock futures as investors searched for new details of Donald Trump’s economic strategy during this speech to Congress.
A Must-Read: Trump Promises Lower Tax Rate, $1 Trillion For Infrastructure In Speech Short On Details
China’s official factory gauge firmed in February as producer prices rebound. The yen weakened on increased prospects for a U.S. interest-rate increase in March, giving support to Japanese equities. The Australian dollar erased an early decline as the nation’s economy grew faster than expected.
The odds of an increase in March for U.S. interest rates rose above 70 percent, before falling back to 52 percent, according to futures rates tracked by Bloomberg.
Federal Reserve Bank of San Francisco President John Williams said he expects an interest-rate increase to receive “serious consideration” when he and other U.S. central bankers gather on March 14-15 in Washington.
New York Fed President William Dudley told CNN International that the case for tightening had become “a lot more compelling” in recent months. Investors will also be monitoring comments from Fed officials, including Chair Janet Yellen, who speaks at an event in Chicago at the end of the week.
Oil prices hovered near $54 a barrel as the prospect of rising U.S. crude inventories offset the production cuts by Organisation of Petroleum Exporting Countries and other nations.
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