Jun 14

Daily Market Commentary : 13th June 2016

Stock market in India closed lower for third consecutive session starting off the week in the red. In-dices hit two week lows amid weakening rupee against the US Dollar and weakness among global stock market. Market participants also preferred to remain cautious as they await US FED and BOJ decision on interest rates. On domestic economy front, government will release May consumer price inflation data today and wholesale price index (WPI) for May on Tuesday. Nifty closed with a loss of 59 points at 8,111, while BSE Sensex ended with a loss of 239 points at 26,396.

Oil prices fell with international Brent crude oil futures slipping below $50 per barrel.

On the global front, Asian markets ended in red ahead of central bank meetings in the US and Japan this week. In China, the Shanghai Composite index and Hong Kong’s Hang Seng index closed 3% lower respectively. Nikkei 225 cracked 3.6%.

European stock markets were trading with a negative bias. The FTSE 100 was trading down 0.61%. DAX and the CAC 40 are down 1.2% respectively.

Dr. Reddy’s Laboratories gained 1% and closed at Rs.3086. The company inked a pact with Teva Pharmaceutical and an affiliate of Allergan Plc to buy a portfolio of eight abbreviated new drug applications (ANDAs) in the US for $ 350 million (around Rs 2,300 crore) in cash.

Fortis Healthcare dropped 1.8% to Rs.165. The company said its subsidiary Escort Heart Institute and Research Centre (EHIRCL) has received an order from the Directorate General of Health Services (DHS) to deposit Rs.503.36 crore for non-compliance of conditions of land allotment lease.

Tata Motors dropped 2.8% to Rs.444 on BSE. The company launched its next-generation ‘Ultra’ range of light commercial vehicle (LCV) in Kenya.

Aviation stocks closed lower on reports that the government proposed several passenger-friendly measures, which are expected to dent bottom lines of airline operators. SpiceJet slipped 1%.Indigo dropped 2.2%.Jet Airways dipped 3%.

Canara Bank slipped 1.8% and closed at Rs.192.50. The bank is planning to raise Rs.5 bn this fiscal by selling stake in its non-core assets after it posted a huge loss in fiscal year 2015-16, says report.

Amtek Auto soared 5% to Rs.36.35. The company is planning to sell its profitable German unit, Tekfor, for about $700 million (Rs.4,690 crore) to an foreign buyer to reduce its debt, according to reports.

Jindal Steel and Power cracked 3.6% to Rs.62. As per media report, the company is set to get debt recast under the Reserve Bank’s 5/25 scheme post deal with JSW Energy.

Welspun Enterprises gained 1% to Rs.62.05. Welspun Energy, in which Welspun Enterprises holds 15.49% stake, has signed a SPA with Tata Power Renewable Energy (100% subsidiary of Tata Power Company) for divestment of its subsidiary Welspun Renewables Energy. The deal represents the largest transaction in renewables space in India.

Reliance Communications slipped 2.7% to Rs.47.85 on BSE. The telecom company is set to launch 4G services on its own across India in phases, starting mid-August from the key circles of Mumbai, Delhi, Kolkata, says report.

Coal India closed marginally higher and closed at Rs.308. Coal India’s two subsidiaries Mahanadi Coalfields and Northern Coalfields will buyback total shares worth around Rs.1,978 crore from their shareholders.

PVR gained 1.8% to Rs.952. The company earmarked a capital expenditure of up to Rs 250 crore for the current fiscal for opening new screens and refurbishing the existing ones, says report.

USDINR trade today trading down 35 paise at 67.11 per US dollar.

Out of 1,412 stocks traded on the NSE, 864 declined and 501 advanced today.

Top 5 Nifty Gainers: Adani Ports & Sez (2.42%), SBI (1.88%), Tata Motors (1.70%), GAIL (0.94%) and ICICI Bank (0.84%).

Top 5 Nifty Losers: HDFC (-1.33%), Bajaj Auto (-0.90%), Hind. Unilever (-0.88%), TCS (-0.78%) and Infosys Ltd (-0.77%)

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