Mumbai: Budget hopes and firm global cues boosted market sentiments as benchmark indices see record closing high. The Nifty ended above 7700, for first time ever, at 7725.15, up 90.45 points or 1.18 per cent. The Sensex closed at 25841.21, up 324.86 or 1.27 percent.
Sesa Sterlite was the biggest gainer of the day, pocketing 4 per cent profit. Maruti, M&M, HDFC Bank and NTPC were other top gainers in the Sensex. Among the losers were GAIL and Infosys.
Infrastructure firm NCC has sought market regulator Sebi's clearance to raise up to Rs 600 crore through a rights issue.
NCC would issue equity shares for an aggregate amount "not exceeding" Rs 600 crore to existing shareholders, says a draft letter filed by the company with Securities and Exchange Board of India (Sebi). In a rights issue, shares are issued to existing investors as per their holding at a pre-determined price and ratio.
The Hyderabad-based firm would use the proceeds from the issue towards repayment/pre-payment of certain loans availed by it and for general corporate purposes. ICICI Securities and SBI Capital Markets are lead managers to the issue while Karvy Computershare would act as the registrar to the issue.
Monsoon rains have revived in central and northern parts of India known for soybean and sugarcane cultivation, a government official, but warned the country is still expected to have below-average monsoon this year.
Rainfall in July and August is likely to be better than in June, the first month of the four-month monsoon season when the precipitation was 43 per cent below average across India, said Shailesh Nayak, the top bureaucrat in the Earth Sciences Ministry.
One of the world's biggest producers and consumers of rice, corn, cooking oil, sugar and cotton, India relies heavily on the annual monsoon rains as nearly half of its farmland is rainfed.
State-run Moil says in line with company's business practice of quarterly revising the prices of manganese ore, it has fixed price of various grades of manganese ore for the quarter July-September, 2014.
"The prices of all ferro grades of ore have been reduced by 10 per cent on the previous quarter price. The existing prices of all SM grades and chemical grades of ore have been maintained.
The prices of manganese ore fines have been increased by 7.5 per cent on the previous quarter prices while the existing price of electrolytic manganese dioxide (EMD), are reduced by 5 per cent," it elaborates.
Bank of America Merrill Lynch raises its target price for Aurobindo Pharma to Rs 880 (Rs 740 earlier) to factor in the 1-3 percent increase in its FY15/16E EPS (6/7 per cent ahead of street) and new target P/E of 15x (14x earlier), due to improving profitability/return ratios and a marked reduction in leverage. "The recovery that began in FY13 and gained momentum in FY14 has helped to address many factors, such as anemic growth, below-par margins/RoCE, and an over-leveraged balance sheet, that were a drag on valuations," says the report. The brokerage house maintains buy on the stock.
A media report suggested that promoter company Hewlett-Packard (HP) has hired UBS to manage stake sale in Mphasis "Infotech companies and private equity players have shown interest in buying Hewlett-Packard's stake in Mphasis. Prominent among these are Japanese technology companies NEC and Fujitsu," says the report.
HP, which holds 60.49 per cent stake, is the largest client of the company and contributes 40 per cent of its revenues. The US-headquartered technology major's stake in Mphasis is valued at more than Rs 5,000 crore at current market price.
Shares of Apollo Hospitals Enterprises gain as much as 3.4 per cent after Citigroup raises its price target for the company to Rs 1,140 from Rs 960, with a 'buy' rating on the stock. Citi said in a note that aggressive ramp-up has resulted in lower margin for FY14 and that it expects a pick-up in growth from FY15 as a result of the move. "We believe Apollo looks well set to achieve over 20 per cent topline growth and 80-100bps EBIDTA margin expansion every year over the next few years," it said.
Apollo has funded over 70 per cent of its capex internally over the last three years, up from 21 percent in FY08. Citi said net debt/equity seems comfortable and that this greater comfort on funding has allowed the company to shift a gear up and step up investment for longer-term growth, reports Reuters.
Sidhant Gupta, director, Kwality Dairy believes the market is taking note of the company's good results and hence the stock has risen 90 per cent year-to-date (YTD). Speaking to CNBC-TV18, Gupta says FY15 is poised to be a better year vis a vis FY14. "We are expecting better revenues and also good profitability owing to changes in the product mix," adds Gupta
Deven Choksey, MD of KR Choksey Securities says technically the market is poised to cross the limit of 7700 and it could possibly go in the territory of 7950-8000 levels. "Whether it happens before the Budget or it happens after the Budget is difficult to predict immediately but readings says that technically, market is poised for going above 7900 levels, it looks little bit more clear now," he adds.
According to him, the macro factors are probably easing out. "I wouldn't say that the situation is completely under control but the rain factor has started giving some better hopes in the month of July, so obviously, it is going to be a positive that one can add into the entire analysis," he says.
Bulls are on fire on Wednesday with the benchmark indices hitting fresh record highs ahead of Budget (on July 10) and first quarter earnings season. The Sensex climbed 290.11 points or 1.14 per cent to 25806.46 and the Nifty rose 80.60 points or 1.06 per cent to 7715.30.
About 1836 shares have advanced, 1113 shares declined, and 107 shares are unchanged. Top car maker Maruti Suzuki extended gains to 3 per cent, in addition to 6 per cent rally in previous session post strong sales numbers in June. UBS says Maruti remains its top pick in the large cap auto space. "With five new launches over CY15-16, we see Maruti as well placed to capture this growth. Maruti will launch a diesel engine option for entry-level hatchbacks in FY17, which could drive strong growth for the segment," says the report.
Mahindra and Mahindra rose over 2 per cent, in addition to 4 percent gains in earlier session as its tractor sales showed growth on month-on-month basis. Total domestic sales of its two-wheelers shot up to 14,389 units versus 7,849 units (Y-o-Y). Shares of HDFC Bank, L&T, HDFC, Reliance Industries, ITC, ICICI Bank, Sesa Sterlite, Tata Motors, Sun Pharma, SBI, NTPC, Hero Motocorp and Bharti Airtel gained 1-3.5 per cent while GAIL and Infosys fell marginally.####
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