Views on market yesterday
- Markets slumped in late trades on Thursday amid selling pressure in heavyweights on fears that sooner-than-expected tapering by the US Fed will lead to lower inflows from foreign funds thereby reducing liquidity.
- The 30-share Sensex closed down 406 points at 20,229 and the 50-share Nifty was down 123 points at 5,999.
- SKS Microfinance closed 1.49% up at Rs 173.30 on BSE after the company said that the Reserve Bank of India has classified the company as non-banking financial company-micro finance institution with effect from 1- November 2013.
- All the 13 BSE Sectoral Indices closed in negative, as investors sold large cap stocks. Top Losers: BSE Bankex down by 2.49% and BSE Capital Goods by 2.37% and BSE Realty by 2.29%.
Market breadth was sharply negative at ~0.57 as investors sold large cap stocks. On provisional basis, FII's sold Rs 0.60bn worth of Indian equities and DII's sold Rs 6.50bn worth of equities.
Economic and Corporate Developments
- Narrowing current account deficit will not be enough to shield India from pressures tied to Fed tapering, said Fitch Ratings.
However, Fitch added that the spillover effects of the rupee's weakness have not significantly hurt India's creditworthiness and will therefore not trigger any ratings action at this point.
"(India's ratings) already incorporate both the sovereign's vulnerabilities and tolerance for volatility in global financial market conditions," Fitch said.
- Rating agency Fitch said consolidation is on the cards for the Indian telecom sector as the weaker and smaller telcos may either get acquired or will merge with each other to improve financial health.
"We believe that, in the long run, India can support only six profitable mobile telcos...The Indian telcos are waiting for the relaxation of M&A guidelines which we believe will be announced by the end of this year," Fitch Ratings said in a statement.
The agency said lack of clarity over the merger and acquisition (M&A) guidelines and, in particular, spectrum acquisitions have prevented any consolidation in India so far.
Fitch said only the top (three to four) operators make a profit, while the rest suffer EBITDA losses and have stretched balance sheets.
Buzzing Stocks
- Future Retail closed 8.06% down at Rs 73.00 on BSE after the National Stock Exchange said it would exclude Future Retail from its derivatives segment.
- Wyeth surged 5.95%, in the early trading, to Rs 823 and closing 2.65% down at Rs.797.35 on BSE, with the stock extending Wednesday's 20% rally triggered by the company and Pfizer announcing that the board of directors of the two companies will separately consider merger proposal.
- Sterling Biotech was locked at 20% upper circuit at Rs 8.89 on BSE after the company's bond holders approved a resolution for exchange and substitution of the existing bonds with the Zero Coupon Convertible Bonds due 2018.
- Birla Corporation closed 3.18% down at Rs 241.80 on BSE after two block deals aggregating 2.04 lakh shares were executed on BSE at 14:04 IST.
- ITC closed down by 2.59% at Rs 312.65 on BSE after hitting a two-and-a-half-month low in intraday on Thursday.
- Kirloskar Oil Engines closed 10.30% up at Rs 163.30 on BSE after three block deals aggregating 19.20 lakh shares were executed on BSE.
- IRB Infrastructure Developers closed 4.21% down at Rs 86.50 on BSE on profit booking after the stock rose 8.73% in the preceding four trading sessions to Rs 90.30 on 20 November 2013, from a recent low of Rs 83.05 on 13 November 2013.
- Just Dial closed 7.03% down at Rs 1,291.55 on BSE on profit booking after the stock surged 37.32% in the preceding four trading sessions to Rs 1,389.15 on 20 November 2013, from a recent low of Rs 1,011.65 on 13 November 2013.
- Zee Entertainment Enterprises closed 3.81% down at Rs 256.45 after a block deal of 2 lakh shares was executed on BSE at Rs 260.70 per share at 10:30 IST.
- Zensar Technologies closed 0.57% down at Rs 321.75 on BSE after the company said it has launched an end-to-end suite of multivendor support service offerings.
- Bombay Dyeing & Manufacturing Company jumped 3.75% to Rs 72 in the intraday, before closing the day at Rs.69.75 or 0.50% up on BSE after the Bombay High Court allowed the company to surrender to BMC and MHADA its land in Wadala in lieu of its land in Lower Parel.
- Jet Airways (India) rose 1.95%, in the early trade, to Rs 332.10 on BSE, extending Wednesday's 1.62% rise triggered by the company announcing closure of a Rs 2,069 crore deal for Etihad to pick up 24% equity in the Indian airline.
- Venus Remedies rose 2.35%, in the morning trade, to Rs 213 on BSE, with the stock extending Wednesday's 3.68% gains triggered by the company entering into generics market in the Gulf with marketing authorization for Meropenem from Saudi Food and Drug Authority. The stock closed 0.31% down at Rs. 207.45.
- Markets slumped in late trades on Thursday amid selling pressure in heavyweights on fears that sooner-than-expected tapering by the US Fed will lead to lower inflows from foreign funds thereby reducing liquidity.
- The 30-share Sensex closed down 406 points at 20,229 and the 50-share Nifty was down 123 points at 5,999.
- SKS Microfinance closed 1.49% up at Rs 173.30 on BSE after the company said that the Reserve Bank of India has classified the company as non-banking financial company-micro finance institution with effect from 1- November 2013.
- All the 13 BSE Sectoral Indices closed in negative, as investors sold large cap stocks. Top Losers: BSE Bankex down by 2.49% and BSE Capital Goods by 2.37% and BSE Realty by 2.29%.
Market breadth was sharply negative at ~0.57 as investors sold large cap stocks. On provisional basis, FII's sold Rs 0.60bn worth of Indian equities and DII's sold Rs 6.50bn worth of equities.
Economic and Corporate Developments
- Narrowing current account deficit will not be enough to shield India from pressures tied to Fed tapering, said Fitch Ratings.
However, Fitch added that the spillover effects of the rupee's weakness have not significantly hurt India's creditworthiness and will therefore not trigger any ratings action at this point.
"(India's ratings) already incorporate both the sovereign's vulnerabilities and tolerance for volatility in global financial market conditions," Fitch said.
- Rating agency Fitch said consolidation is on the cards for the Indian telecom sector as the weaker and smaller telcos may either get acquired or will merge with each other to improve financial health.
"We believe that, in the long run, India can support only six profitable mobile telcos...The Indian telcos are waiting for the relaxation of M&A guidelines which we believe will be announced by the end of this year," Fitch Ratings said in a statement.
The agency said lack of clarity over the merger and acquisition (M&A) guidelines and, in particular, spectrum acquisitions have prevented any consolidation in India so far.
Fitch said only the top (three to four) operators make a profit, while the rest suffer EBITDA losses and have stretched balance sheets.
Buzzing Stocks
- Future Retail closed 8.06% down at Rs 73.00 on BSE after the National Stock Exchange said it would exclude Future Retail from its derivatives segment.
- Wyeth surged 5.95%, in the early trading, to Rs 823 and closing 2.65% down at Rs.797.35 on BSE, with the stock extending Wednesday's 20% rally triggered by the company and Pfizer announcing that the board of directors of the two companies will separately consider merger proposal.
- Sterling Biotech was locked at 20% upper circuit at Rs 8.89 on BSE after the company's bond holders approved a resolution for exchange and substitution of the existing bonds with the Zero Coupon Convertible Bonds due 2018.
- Birla Corporation closed 3.18% down at Rs 241.80 on BSE after two block deals aggregating 2.04 lakh shares were executed on BSE at 14:04 IST.
- ITC closed down by 2.59% at Rs 312.65 on BSE after hitting a two-and-a-half-month low in intraday on Thursday.
- Kirloskar Oil Engines closed 10.30% up at Rs 163.30 on BSE after three block deals aggregating 19.20 lakh shares were executed on BSE.
- IRB Infrastructure Developers closed 4.21% down at Rs 86.50 on BSE on profit booking after the stock rose 8.73% in the preceding four trading sessions to Rs 90.30 on 20 November 2013, from a recent low of Rs 83.05 on 13 November 2013.
- Just Dial closed 7.03% down at Rs 1,291.55 on BSE on profit booking after the stock surged 37.32% in the preceding four trading sessions to Rs 1,389.15 on 20 November 2013, from a recent low of Rs 1,011.65 on 13 November 2013.
- Zee Entertainment Enterprises closed 3.81% down at Rs 256.45 after a block deal of 2 lakh shares was executed on BSE at Rs 260.70 per share at 10:30 IST.
- Zensar Technologies closed 0.57% down at Rs 321.75 on BSE after the company said it has launched an end-to-end suite of multivendor support service offerings.
- Bombay Dyeing & Manufacturing Company jumped 3.75% to Rs 72 in the intraday, before closing the day at Rs.69.75 or 0.50% up on BSE after the Bombay High Court allowed the company to surrender to BMC and MHADA its land in Wadala in lieu of its land in Lower Parel.
- Jet Airways (India) rose 1.95%, in the early trade, to Rs 332.10 on BSE, extending Wednesday's 1.62% rise triggered by the company announcing closure of a Rs 2,069 crore deal for Etihad to pick up 24% equity in the Indian airline.
- Venus Remedies rose 2.35%, in the morning trade, to Rs 213 on BSE, with the stock extending Wednesday's 3.68% gains triggered by the company entering into generics market in the Gulf with marketing authorization for Meropenem from Saudi Food and Drug Authority. The stock closed 0.31% down at Rs. 207.45.
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