The market is going to remain a range of 8,800 on the downside and close to 9,000 on the upside, said Shrikant Chouhan, senior vice president (equity technical research) at Kotak Securities.
Chouhan pegged the outcome of the UP polls as a bigger event for local markets than what the Fed chooses to do about interest rate. He said a Fed rate hike has been discounted at this point in time, however, outcome of the UP election, depending on whether positive or negative for the BJP-led NDA government, could trigger a major move on either side.
“In case of a negative outcome, the Nifty support level to watch out for would be 8,700,” he told BloombergQuint in a phone conversation.
Shares of Sun TV rose as much as 2 percent to Rs 720 in the afternoon session after the company said its board will consider payment of an interim dividend in a March 10 meeting.
Sun TV’s indicated dividend yield is 0.7 percent versus 3.1 percent for 2 year historical average, Bloomberg data showed.
Stock trading at an unusually low 15 percent discount versus peers compared to 48 percent discount over the past two years.
Shares of Grasim Industries rose as much as 3 percent to Rs 1,027.90 after its board approved increasing foreign portfolio investment (FPI) limit.
Grasim plans to raise the FPI limit to 49 percent from current 30 percent.
The stock's total return is 17.1 percent year-to-date compared to a 8 percent gain for Sensex index.
Shares of the bio pharma firm gained as much as 5.3 percent, the most since January 9, after a Delhi High Court passed an order allowing it to make and sell cancer drugs CANMAB and Hertraz.
The company’s had challenged an April 206 single-judge bench order that barred Biocon and Mylan from claiming biosimilarity to Rosche’s drug Traztuzumab and using Roche’s data to sell their drugs.
The 2-judge Delhi High Court order said Biocon, Mylan can sell their drugs for all 3 indications -- metastatic breast cancer, metastatic gastric cancer and early breast cancer.
- Oil and gas major ONGC has 1.08 million shares change hands in a block deal.
- Sintex Industries has 9 million shares or 1.7 percent equity trade in single block deal
- Dhampur Sugar Mills (+11.4%)
- Rana Sugars (+7.6%)
- Simbhaoli Sugar (+7.6%)
- Dharani Sugars (+8.5%)
- Kothari Sugars (+4.5%)
- Uttam Sugar Mills (+4.8%)
- Triveni Engineering (+4.6%)
- Balrampur Chini (+4.2%)
- Shree Renuka Sugar (+4.3%)
- Bajaj Hindusthan (+3.1%)
Panama Petrochem Hits Life High
Panama Petrochem Ltd. rose as much as 14.4 percent today after closing 12.6 percent higher on Thursday.
- The stock touched its record high of Rs 153.25 in trade today.
- Volumes are at 16.8 times its previous 20-day average.
- The manufacturer of petroleum specialty products currently has a market cap of Rs 640 crore.
Shares of the Hyderabad-based company rose as much as 3.7 percent to Rs 95.75. The stock is up eight out of the last nine trading sessions.
The cement to chemical products maker released its 7.5 percent of pledged shares with lenders, it said in a filing to BSE. The company does not have any further pledged shares as of March 1, 2017.
The stock has risen nearly 22.5 percent in two weeks.
The Nikkei India Services Purchasing Managers' Index, or PMI, rose to 50.3 in February from January's 48.7, marking above the 50.0 no-change level for the first time since October.
The latest figure shows businesses are recovering from the demonetization-related downturn.
However, since the Employment Index marked at 49.9 in February, "It is still too early to state that expansion rates will climb to their trend levels in the near term," said Pollyanna De Lima, an economist at IHS Markit.
"Companies remain reluctant to take on additional staff. So far, firms are doubtful about the sustainability of the economic recovery."
A reading above 50 indicates economic expansion, while a reading below 50 points toward contraction.
(Nikkei)
#BQSpotted by @OnlyNickey | Kalyani Steels rises for the 4th consecutive session. pic.twitter.com/IsM1Exh7Ss
— BloombergQuint (@BloombergQuint) March 3, 2017
Shares of the country’s second-largest technology firm dropped as much as 1.3 percent after Goldman Sachs analyst Sumeet Jain initiated a coverage on the company’s stock with a “sell” recommendation.
Jain estimated that U.S. listed Infosys stock will trade at $12.20 within a year, implying a 20.6 percent decline from yesterday’s close.
Apollo Hospitals falls 5.3%;biggest drop since 15 Nov
— Shraddha Babla (@shraddha_babla) March 3, 2017
4.7% of equity trades in block deal
Integrated Healthcare to sell ~6% stake:Bloomberg pic.twitter.com/NZe3NerOUj
The oil and gas major gained 3.8 percent after its promoter group, led by billionaire Mukesh Ambani, said it plans to shrink the number of firms owning shares of India’s second-most valuable company through an internal sale to other holding companies.
The owners will transfer Reliance’s shares held in 15 entities to eight firms, the company said in an exchange filing on Thursday, without giving details.
The eight entities will acquire as many as 1.2 billion shares through a transfer on exchanges as early as March 9, according to the filing. The shares are valued at about Rs 1.5 lakh crore ($22 billion) as of Thursday’s closing price of Rs 1,236.75.
The rupee depreciated by 18 paise to 66.88 against the dollar in early trade today on increased demand for the U.S. currency from importers.
Besides, the dollar held strong against other currencies overseas on rising hopes that the Federal Reserve will hike interest rates later this month.
A lower opening in equities also kept pressure on the domestic unit, dealers said.
Yesterday, the rupee had ended higher by 12 paise at 66.70 against the American currency on fresh bouts of dollar selling amid an overall upbeat sentiment following the release of GDP data.
PTI
Movers & Shakers: Nalco, Apollo Hospitals, Hindalco And More
- HDFC to consider mid-year dividend
- Deepak Nitrite to decide QIP share sale pricing
- Cadila Healthcare: Pfizer files lawsuits over patents for arthritis drug Xeljanz
- DCB Bank: To consider issue of securities March 7
- Grasim Industries: Denies report of making investment into Idea
- Kajaria Ceramics: HSBC sells shares of co.
- Hindalco Industries: Prices QIP issuance at up to Rs 189.45 a share (Terms)
- Reliance Industries: Founders to recast holding through inter-se transfer
- Apollo Hospitals: Integrated Healthcare to sell around 6 percent or 8.44 million shares of Apollo Hospitals at Rs 1,267-1,320.55 in block deals today
Offerings
Data To Watch- 10:30am: Nikkei India services PMI for Feb. (prior 48.7)
- 10:30am: Nikkei India composite PMI for Feb. (prior 49.4)
The rupee has risen 0.2 percent against the dollar so far this week. However, the hawkish rhetoric by Fed officials and strong macro data has made a compelling case for a rate hike, which means more strength to the dollar.
The greenback has climbed to the highest level since January, while South Korean won has dropped over 1 percent today, which means rupee too could come under pressure unless some local flows offset the impact. It last closed at 66.71 rupees to a dollar.
For sovereign bonds, yield on the benchmark note dropped for the first time in four week, however, the major decline came in on Thursday as the demand for the 10-year bond surged ahead of a coupon payment due Monday. The yield dropped 10 basis points, the most since January, to 6.83 percent.
Today, the benchmark bond is shut for trading but investors say that it was a one-day phenomena and the outperformance is unlikely to last going forward.
Good Morning!
The Singapore traded SGX Nifty, an early indicator of Nifty’s performance in India, fell 0.4 percent to 8,881.
Asian stocks declined in early trade, as the global equity market rally eases ahead of Fed Chair Janet Yellen’s speech on the path for interest rates in the world’s largest economy. The dollar weakened after its longest winning streak since May.
The chance of a rate hike at the Fed’s March 14-15 meeting jumped to 90 percent, according to futures data tracked by Bloomberg, after Lael Brainard became the latest Fed official to support the case for tightening “soon”.
Oil snapped its three-day losing streak but continued to trade near a three-week low as concerns over record U.S. crude inventories outweighed optimism surrounding production cuts by the Organisation of Petroleum Exporting Countries and other nations.
Gold fell for the fourth time in the last five sessions and hovered around the $1,233 per ounce mark.
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