HINDUJA BANK (SWITZERLAND) LTD BUILDING WEALTH, ENABLING ENTERPRISE 1 April 2015 DAILY MARKET COMMENTS INDIA SUMMARY Banking, telecom and pharma stocks led gains as key benchmark indices surged on the last trading session of the truncated trading week and the first trading session of the new financial year. The 30- share Sensex gained 303 points to end at 28,260 and the 50-share Nifty soared 95 points to close at 8,586. Sun Pharma emerged as the top gainer and surged 4.4% ahead of record date set for the merger with Ranbaxy. Dr Reddys Lab advanced 1% after it entered into a definitive agreement to acquire a select portfolio of the established products business of UCB in the territories of India, Nepal, Sri Lanka and Maldives. However, technology stocks emerged as the only underperformers in today s trade after HCL Technologies warned of adverse cross currency impact on the company's revenue and EBIT in Q3 March 2015 in pre-quarter earnings update. Tata Motors gained nearly 2.7%. The stock will turn ex-rights on Monday, April 6, 2015, in the ratio of 6:109. Metal stocks ended in the positive territory after the official Purchasing Managers' Index (PMI) of China released by the National Bureau of Statistics on Wednesday, edged up to 50.1 in March from February's 49.9. Markets will be closed on 2 April and 3 April on account of Mahavir Jayanti and Good Friday, respectively. HIGHLIGHTS IN THE HEADLINES TODAY FY16 begins on a firm note; Sensex ends 300 points higher Dr Reddy's to buy select UCB brands for Rs 8 bn TCS to announce Q4 results on Apr 16; HCL Tech, Infy to follow Ashok Leyland March sales up 24% at 12,745 units Mahindra & Mahindra March sales down 12% Maruti sales decline 1.6% in March RBI approves ING Vysya-Kotak Mahindra merger INSTITUTIONAL ACTIVITY ON NSE, BSE & MCX-SX Category Buy Value (Rs bn) Sell Value (Rs bn) Net Value (R bn) Foreign Institutional Investors (FII) 39.28 37.18 2.10 Domestic Institutional Investors (DII) 15.58 13.61 1.97
INDEX MOVEMENTS Index Close Open High Low Close Gain / Loss Var. S&P BSE Sensex 27,957 27,955 28,298 27,889 28,260 302.65 1.08 CNX Nifty 8,491 8,484 8,603 8,465 8,586 95.25 1.12 CNX 500 6,978 6,976 7,069 6,965 7,060 82.05 1.18 CNX Nifty Junior 19,442 19,446 19,671 19,388 19,634 192.60 0.99 CNX Midcap 13,001 13,006 13,173 12,991 13,154 152.40 1.17 CNX IT 12,083 11,997 12,009 11,880 11,952 (130.80) (1.08) CNX 100 8,520 8,514 8,628 8,495 8,613 93.85 1.10 BANK Nifty 18,207 18,205 18,669 18,131 18,618 411.20 2.26 NIFTY GAINERS Company Curr. Gain SUNPHARMA 1,082 1,024 5.67 PNB 152 144 5.26 INDUSINDBK 929 886 4.81 BANKBARODA 170 164 4.22 YESBANK 849 816 4.11 NIFTY LOSERS Company Curr. Loss HCLTECH 943 980 (3.77) INFY 2,171 2,218 (2.13) BHEL 231 235 (1.87) MARUTI 3,638 3,697 (1.60) BPCL 804 811 (0.84) COMMODITIES & CURRENCIES Commodity (Futures) Day Curr. Day Brent Crude (USD / bbl) 55.11 55.11 Gold (USD / t. Oz) 1,183.10 1,183.60 Silver (USD / t. Oz) 16.60 16.54 Currency Curr. Rate USD / INR 62.36 EUR / INR 67.05 ASIAN MARKETS Index Closing Gain / Loss Var. Hang Seng 25,083 181.86 0.73 Nikkei-225 19,035 172.15 0.90 Shanghai Composite 3,810 62.40 1.66 Straits Times 3,447 0.01 0.00 Taiwan TAIEX 9,508 78.78 0.82 100 Yen / INR 51.93
GLOBAL MARKET OVERVIEW European stocks edged higher today, 1 April 2015, after a solid round of eurozone manufacturing data for March 2015. Asian stocks were mixed today, 1 April 2015. Key indices in Japan, Taiwan, South Korea and Indonesia were off 0.62% to 0.94%. Key indices in China and Hong Kong were up 0.73% to 1.66%. In Singapore, Straits Times index ended almost unchanged for the day. GLOBAL NEWS Growth of eurozone manufacturing production accelerated to a ten-month high in March, underpinned by the fastest expansion of incoming new business since April of last year, latest data from Markit Economics showed today, 1 April 2015. At 52.2 in March, up from 51 in February, the final seasonally adjusted Eurozone Manufacturing PMI was above its earlier flash estimate of 51.9. The PMI currently stands at its highest level for ten months and has remained in expansion territory since July 2013. China's official Purchasing Managers Index rose to 50.1 in March from 49.9 in February, although the HSBC China manufacturing PMI fell to a final reading of 49.6 in March from 50.7 in February. Web hosting company GoDaddy Inc has priced its initial public offering at $20 per share, above its previously indicated $17 to $19 per share range, valuing it at around $4.5 billion, including debt, according to underwriting sources. At this price, the IPO would raise $440 million. Chinese President Xi Jinping is expected to visit Pakistan next week to deepen economic and strategic ties between the two all-weather allies. Xi was to visit Pakistan last year during his South Asia trip to India, Sri Lankan and the Maldives but postponed it due to political unrest in the country. ECONOMIC AND POLITICAL NEWS The government on Wednesday unveiled its foreign tradepolicy (FTP) for five years from 2015 to 2020. Unveiling the policy, Commerce Minister Nirmala Sitharaman said the new policy would boost exports and create jobs while supporting the Centre s 'Make In India' and 'Digital India' programmes. Export obligation under the export promotion capital goods scheme will be reduced by 25% to promote domestic manufacturing. FTP would focus on defence, pharma, environment-friendly products and value-added exports, she said, adding: The govt will continue to incentivise units located in special economic zones... With a focus on employmentcreating sectors, the government will promote e-commerce. After two consecutive hikes, petrol prices were today cut by 49 paise per litre and diesel by Rs 1.21 a litre on softening international oil rates. After two consecutive hikes, petrol prices were today cut by 49 paise per litre and diesel by Rs 1.21 a litre on softening international oil rates. The government today raised import tariff value on gold to $385 per 10 grams and silver to $543 per kg, taking cues from firm global price trends. During the last fortnight of March, the tariff value on imported gold was $375 per 10 grams and on silver at $512 per kg. The import tariff value is the base price at which customs duty is determined to prevent under-invoicing. It is revised on a fortnightly basis taking into account global prices.
INDUSTRY NEWS The Reserve Bank of India (RBI) has given its nod to the merger of ING Vysya Bank and Kotak Mahindra Bank, the exchanges were informed today. The merger will come into effect from April 1, 2015. In February 2015, the proposed Rs 150 bn merger deal between Kotak Mahindra Bank and ING Vysya Bank got the Competition Commission of India (CCI)'s approval. Stating that India has overtaken the US in steel production, Prime Minister Narendra Modi on Wednesday said the country has to compete with China, which is far ahead. "India has surpassed America in steel production. But, we are still behind China and when I talk about Make in India, we would not accept to stay behind anyone. We have to increase our production," said Modi after inaugurating the modernized and expanded steel unit of Rourkela Steel Plant at Rourkela in Odisha. SECTOR PERFORMANCE AND TRENDS Out of 2800 scrips traded over BSE, 2009 advanced & 695 declined. Sector Var S&P BSE AUTO 1.07 S&P BSE BANKEX 2.37 S&P BSE CONSUMER DURABLES 0.40 S&P BSE CAPITAL GOODS 0.85 S&P BSE FMCG 1.34 S&P BSE HEALTHCARE 2.31 S&P BSE IT (1.11) S&P BSE METAL 0.81 S&P BSE OIL & GAS 0.50 S&P BSE POWER 0.49 Sector Trend * Auto BFSI Construction Consumer Goods Energy Industrial Manufacturing IT Metals Telecom * Shows trend for current and previous trading session S&P BSE REALTY 1.62 S&P BSE TECK (0.50) BONDS, T-BILLS & IPOs Private sector lender HDFC Bank has raised Rs 30 bn by issuing long term non-convertible bonds through private placement. "Bank has issued and allotted on a private placement basis senior, unsecured, redeemable, long term, non-convertible bonds in the nature of debentures for Rs 30 bn," it said. Indian private sector lender Catholic Syrian Bank has filed for an initial public offering to raise up to Rs 4 billion, in what would be the first listing by a local bank in more than four years. The lender is considering selling anchor investors up to 12.5 million shares for up to Rs 1.50 billion ahead of the IPO, it said in the filing.
COMMODITIES Gold kicked off April by climbing on Wednesday as the dollar retreated, but expectations the Federal Reserve is on course to lift interest rates this year capped gains. Investors are looking to US jobs data due on Friday, when another strong number could boost bets the US central bank will hike interest rates sooner rather than later. COMPANY ANNOUNCEMENTS Hyderabad-based pharmaceutical major, Dr Reddy's Laboratories Limited, has entered into a definitive agreement to acquire a select portfolio of the established products business of UCB, a Belgian biopharmaceutical firm, in the territories of India, Nepal, Sri Lank and the Maldives for Euro 118 million (close to Rs 8 billion). Country's largest car-maker Maruti Suzuki India (MSI) today reported a marginal 1.6% decline in its total sales for March at 1,11,555 units as against 1,13,350 units in the same month a year ago. Ashok Leyland today reported a 24% increase in total sales at 12,754 units for March 2015, as against 10,281 units in the same month last year. Automaker Mahindra & Mahindra today reported a 12.44% decline in total sales at 45,212 units in March. Commenting on the outlook, M&M Chief Executive (Automotive Division) Pravin Shah said: "With factors such as expectation of normal monsoon, settling down of petrol and diesel prices and the likely softening of interest rates, we expect the auto industry to perform better in FY2016." The information in this publication was developed using data which Hinduja Bank () Ltd assumes to be accurate; nevertheless, Hinduja Bank () Ltd accepts no liability and offers no guarantee. The availability of such information does not constitute a recommendation to buy or sell any of the securities discussed therein. Statements made in this publication can be changed without prior notice. Moreover, the content is not intended for individuals (or entities) who (which), by reason of their nationality or domicile or for any other reason, are subject to foreign regulations prohibiting access to banking services or investment instruments via one or several distribution channels, or prohibiting or restricting the use of any information provided in this document.